Why is it important to know my credit score and how a good credit score can help me in time like this.
Personal finances are never simple especially in this period of time. There are so many things to consider when you organize your own portfolio. One of the biggest considerations is your credit history. I discovered that my credit report held information that I didn’t know existed and I learned a valuable lesson after getting my free copy of credit score.
You would think that I should know everything that is in my credit report but the truth is that I absolutely did not. There were little details that really stood out in my pages. First and foremost, there was a credit card debt listed from a creditor I never used before. The payments were up to date and the rating was quite good, but I didn’t have a card by that credit card carrier.
I also found something pretty aggravating in my free credit report. There was a loan that was paid in full over a decade ago that are still listed as open. Again, this listing on my credit report was seemingly fine considering that it was showing a steady stream of payment history.
So what’s the big deal? I initially thought that these little mistakes were no problem. After all, there were well-paid and I had a good rating with both organizations. However, I did think that I should make an attempt to clear things up anyway. The process of fixing my credit report wasn’t easy but I am glad that I did it..
What seemed like mundane little errors could have cost me my future new car loan. Since both of these creditors listed debts that I didn’t have, it appeared that I had more debt than I actually really did. When it is time to get my new car loan, I quickly discovered how easily these two balances would affect my ability to get a good loan.
My balance on the one loan was zero. However, the company still had me listed as owning over thousands of dollars. The new car loan company would naturally assume that I still had to make monthly payments on this outstanding debt. But it was actually paid in full long ago. I had to get proof that my credit report was simply wrong.
The credit card that had an excellent payment history could have still marred my chances for my new car loan. This particular debt (which didn’t even exist) was well into the thousands, making it appear that I had an obligation to pay this in monthly installments as well with my current pay check.
With the two bogus debts on my credit report, the loan company would have probably turned me down for new loan. And that would have been a very sad moment for me. I have to say that one of the best decisions I ever made was getting the information on my credit report updated and mistakes corrected.
Filed under Credit Report by 
Most people think of strategic financial planning as a skill reserved for the select few—a professional elite fortunate enough to possess advanced degrees in business and economics. Nothing could be further from the truth. Strategic financial planning is a challenge that faces all of us, and there’s nothing complicated about it.
All people not named Bill Gates have limited financial resources. But you don’t need a doctorate in economics to take control of your finances. You have a much better chance of achieving your goal of financial security when you understand basic financial concepts—how to organize and keep track of your cash flow, and how to measure progress toward your financial goals. It’s crucial that you take full responsibility for your own strategic financial planning. And the best time to start is today. Putting off the hour of decision will only sink you deeper into the hole you’re in. Start with these time-tested strategies:
* Take your grandfather’s advice—don’t try to beat the stock market. My grandfather made it through the Great Depression. He went on to be a prosperous business owner and left my grandmother an estate worth a million dollars in the 1980s. He never gambled on the market. His secret was a simple one: Invest in mutual funds, diversify your assets, and readjust your portfolio every year. Cash in some winning stocks and use your gains to take advantage of low-priced stocks that have potential. Buy low and sell high.
* If you think you know what the next Microsoft is going to be, then by all means, go for it. But don’t max out your 401(k) to buy it. And remember: There can’t be a next Microsoft every time you open the Wall Street Journal. Learn to distinguish between strategic market planning and compulsive buying.
[tags]Financial,Debt,Credit,Money[/tags]
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