When someone is judging you they are forming an opinion and even worse a CONCLUSION about who you are and what you are worth.
The statement is that you are exactly where the system wants you to be. Oh and the systems that we often refer to is not one big system there are several and the one that I am talking about is the banking and lending system.
There is a huge misconception that the system or the industry would like for us to have great interest rates and lower payments and this is not true. It is their desire to get approvals with the highest possible rates because this is how they make money. So, the idea that there is someone other than yourself and a company you hired to work with you on your credit wants you to walk into the bank with an 800 credit score is completely wrong.
There are more benefits to having someone walk into the bank with a 700 credit score. Think about the mortgage industry and how one can get approved for a massive 30 year mortgage and borrow hundreds of thousands of dollars with a 580 credit score.. We can say that the mortgage industry is more focused on the length of credit that someone has versus the scores but the statement is very clear - a 580 can get it done with the right credit mix and this is ok because you will receive the highest rate available at that time and pay it for years to come.
Assuming, you don't get wiser and improve your credit so you can refinance your home with a 780 credit score and save yourself thousands on top of thousands of dollars. Please believe that the holding mortgage company is assuming the same thing and also hoping that you don't refinance unless it's with them. In which they will make more money because of the cost of repackaging a brand new mortgage with closing costs and down payments potentially.
Now let's discuss the car industry and credit card industry that are notorious for the 24.99% and don't mind!
Every time we agree to pay these high interest rates it's making a statement that we don't mind paying them, paying the large down payments and the high car notes. It is saying that we don't mind wasting money. That we would rather waste much needed money we could use else where to pay other things than to be disciplined and fix our credit and change the statement our credit reports are making on our behalf.
It is a true mentality that we must change and I understand the need to do what you have to do to secure a vehicle for work and family etc.. However, after that vehicle is purchased let's make it our business to change the cycle of wasting money and paying for things multiple times when there is a way out of that cycle.
There are Americans that are paying 0%, 0.9% and 1.9% on loans, vehicles and credit cards. They took the time to do the work, hired a professional to be accountable to and made the changes. There are some that come from families that already have these values and never take the setback but I assure you that is a very small percentage of people.
Most of us start running our credit down at 18 during college or for other means of survival, but whatever the reason is that we lack the knowledge to have great credit then - we have no excuses now.
The perpetual state of Homelessness will never end unless we take initiative to educate peoplem on the importance of credit, how to use it and how it is speaking on their behalf. Also, how it is keeping them in bondage and in a perpetual state of not having the proper resources to maintain in the United States of America's economy.
Then there is the gentrification that has taken over the affordable housing neighborhoods and pushing people into temporary housing units and promising that they will have first dibs on the new apartments or "mixed" income units. This simply is not true. There will be additional qualifications for those previous residence that were not in place prior to the gentrification project for that particular area.
The idea of gentrification is to improve areas for the middle-class to live in the inner cities and feel safe and live in desirable housing and areas. At the expense of others not having safe and affordable housing. Prior to the gentrification the Ending Youth Homelessness by 2020 Initiative was the major wave of "doing good".
Opening Doors: The Federal Strategic Plan to Prevent and End Homelessness, is the nation's first comprehensive strategy aimed at preventing and ending homelessness, and serves as a roadmap for federal departments as well as local and state partners in the public and private sector to address this critical issue.
The vision for this program is that "no one should experience homelessness - no one should be without a safe stable place to call home".
So, much for these ambitious goals.
Majority of the population that are homeless are Youth and Children.
To tag team with gentrification is the increase in rent in other areas that were once affordable. Oh, and it is not like back in the day where one good easily find a private landlord and skip the scrutiny of the background checks. Now everyone has access to an online program that will allow any landlord to screen a tenants credit most importantly.
Credit is the elephant in the room because most people have lived their lives without using it, knowing how to build it or just not having the proper education and respect for it and how much more comfortable life can be when using credit as the tool that it is.
There is a serious disconnect in the mentality of the importance of credit and the eagerness of those that have the knowledge and aren't providing to others, starting with those getting all of the government and private millions to participate in gentrification builds and renovations. It is then that NPO's responsibility to provide resources to help the displaced tenants get into position to apply for the new homes.
But I know....
That's not the goal.
There are nearly 78% and can be higher at any given time of all Americans that have something adverse reporting to their credit. With the amount of agencies, companies and individuals that promote credit repair and their companies at times it can be challenging to take the industry seriously.
However, that is the case in any industry that is saturated and most are. It is important that you treat your credit repair/building needs like anything else and do the research to find the company that works for you and one that you can depend on.
How to know that you chose the right company:
1. They do not sign and bye! A company that signs you up for one of their programs and you rarely or never hear from them is not a great option and you should know this within the first 30 days.
2. They sign you and you mail the letters. I am not sure this is a best practice or why companies choose to do this but I do not recommend this approach. Yes, the value is in the letter and knowing how to approach situations, however the discipline must be in place in order to be successful and let's face it most people do not have the time to deal with repairing their credit or researching their reports to make sure everything is accurate.
3. When you have a billing or cancellation question, they avoid you. This is not a company that you want working anywhere near your personal information. The same amount of time they spent with you on the phone signing you up should be the same amount of time they spend with you if you decide to cancel.
Today is the 4th of July and the holiday represents freedom!
Although, it certainly stands for freedom I can't help but to think that we haven't arrived in many areas of our personal lives including financial. Taking back or claiming our freedom starts in the mind and ends in the physical we must stop handling our finances, our credit and our financial quality of life casually.
There are always pros and cons to a thing and that thing is the instant gratification that has plagued our world via the internet and the need to have everything right now and the low energy towards discipline and hard work. Do not be fooled by the you don't have to do this, or you don't have to do that in order to achieve great success. It is a lie and anything that is worth having and cherishing will always take some form of hard work and discipline, including improving your credit and ability to make life changing purchases and stay prepared for life changing events.
Many companies that promise to get you out of debt are debt relief service businesses. Debt management services claim they can arrange a plan with your creditors to pay over time, often with reductions in interest rates or other changes in terms so you can afford repayment.
So-called debt negotiation or debt settlement companies claim that they can negotiate with creditors on your behalf to get substantially reduced payments and an end to collection calls from creditors. They usually ask or require you to make regular payments into a bank account from which they collect their free and pay the creditor when enough money has accumulated.
These companies usually advise you not to pay your creditors while money accumulates in the account, so that you can later make a lump sum settlement offer. Consequently, your credit report shows more and more late payments, and even charge offs and accounts sent to collection agencies. Because the companies don't have agreements with creditors to wait for payment, creditors may sue you or take other collection actions.
Stay in the Know!
In her book, The Overspent American, Juliet Schor identifies several "neurotic" spending styles. Competitive spenders aggressively try to establish and maintain status by keeping up with their particular "reference group." As mentioned in the primary reasons of indebtedness, the reference group of choice no longer lives in your neighborhood. They live in Television Land where style and success are defined. the problem is, for most Americans, the level of opulence portrayed in the media is simply unattainable. Other spending styles are described in the books, Emotional Business by David Krueger and Consuming Passions by Ellen Mohr-Catalano and Nina Sonenberg. They include:
Other beliefs are products of our childhood and the messages we received about money as we were growing up. Some of us were told that money is "the root of all evil". We heard fairytales about misers who hoarded their money only to meet a tragic end, pirates who sank to the bottom of the sea weighed down by treasure, and evil queens adorned with gold.
These stories and images help to shape our relationship with money.
Do we fear it?
Do we embrace it?
Do we need to spend it in order to realize its power?
Or do we understand that its real power is in creating financial freedom?
In general, when people talk about "your score", they are talking about your current FICO score. However, there is no one score used by lenders to make decisions about you.
Credit bureau scores are not the only scores used. Many lenders use their own scores, which often will include the FICO scores as well as other information about the consumer.
FICO scores are not the only credit bureau scores. There are other credit bureau scores although FICO scores are by far the most commonly used. Other credit bureau scores may evaluate a credit report differently than FICO scores. In some cases, a higher score may mean more risk, not less risk as with FICO scores.
An individual's score may be different at each of the three main credit-reporting agencies. The FICO score from each credit reporting agency considers only the data in the credit report at that agency. If a person's current scores from the credit reporting agencies are different, it is probably because the information those agencies have on that person differs.
An individual's FICO score changes over time. As the data changes at the credit-reporting agency, so will any new score based on that credit report. A FICO score from a month ago is probably not the same score a lender would get from the credit-reporting agency today.
Consumers move throughout life without understanding what type of impact their credit reports can have on their financial well-being. What type of impact their credit reports can have on their financial well-being. The information in your credit report can allow you to enjoy some of the finest things in life, or it can make your life a struggle.
What is a credit report and why is it important? Your credit report is a snapshot of your payment history for all credit transactions that you have from age 18 until now. It details when you applied for credit, how many positive and negative accounts you have, who viewed your credit report, and all your personal information. Reviewing your credit report every four to six months gives you a chance to check for identity theft, inaccurate accounts, and incorrect information. It allows you to manage your financial situation before applying for a credit card, auto loan, bank loan, mortgage loan, employment, or insurance.
How does bad information get on my credit report? Every month, the creditors and collection agencies that you have accounts with will report positive and negative information to the credit bureaus through a computer tape monitoring system that is updated regularly. the credit bureaus then turn around and update the information. A third-party company normally passes public record information (judgements/tax liens) on to the credit bureaus.
When does negative information come off my credit report? Each negative item has a federal statute of limitation on when it must drop off your credit report. Once the statute of limitation has expired, the item must be deleted from your credit report according to the Fair Credit Reporting Act. The statue of limitation starts 180 days from the date the account became delinquent.
Federal Statute of Limitations The statute starts 180 days from the date the account became delinquent.
Who uses the information in my credit report? Banks, creditors, car dealers, mortgage brokers, and any other lending institution use your credit report to determine if you are credit-worthy of a loan. Collection agencies use the information in your credit report to track your location and see what other debts you owe. Insurance companies run your credit report to determine your insurance risk, and employment agencies view your report for employment considerations.
- Mark Clayborne