How's Your Credit?

C’mon..sing along...you know the song…

They say a man should always dress for the job he wants
So why am I dressed like a pirate in this restaurant
It's all because some hacker stole my identity
Now I'm in here every evening serving chowder and ice tea
Should'a gone to free credit report dot com
I could'a seen this comin' at me like an atom bomb
They monitor your credit and send you e-mail alerts
So you don't end up selling fish to tourists in t-shirts

Yea, it’s a funny commercial, but it’s also very true.  Your credit score tells a story about you that may or may not be true, but a potential employer is not going to ask you for an explanation.  Your best defense against being portrayed as financially irresponsible is to keep your credit history CLEAN!

STEP ONE:     Get a copy of your credit history direct from the three companies: Equifax, TransUnion and Experian.  Freecreditscore.com is also a good spot (hence the song).

STEP TWO:     READ IT THOROUGHLY!  Make sure that the information is correct, but also learn from the information.  Realize that late payments (regardless if you paid within the grace period) are late;there is no such thing as a “grace period”.  Know that newly opened accounts make you a credit risk, credit used to its max is also a red flag. 

STEP THREE:  TAKE ACTION.   Consider the following:

Cancel those cards you don’t use. For every credit line you have, you are responsible for that amount –EVEN if you DON’T use it.  That’s why multiple cards are a negative.

Use only debit or charge cards (like American Express). There are no interest payments, and because it is automatically deducted from your bank account, or due in full at the end of the month, it'll keep you disciplined in your spending.

Pay on Time. If you have credit cards, pay them online through automatic payments so you are never late.   Also, always pay more than the minimum.  Remember, every credit card balance is a mini-mortgage because it will take you 30 years to pay if you just pay the minimum.

If your credit history needs some TLC, taking these three steps will repair your credit on its own.  Paying someone to repair your credit is unnecessary, at best, and is usually a scam.  Do it yourself by being responsible.  It's like losing weight, the only real way to get results is to eat right and exercise.

Your credit is extremely important and a bad score can cost you thousands of dollars over time.  Protect your future NOW!