ConsumerCents - Keep Your Change: 6/1/2008 IssueFinancial Knowledge is PowerCredit Building TipsThere is a lot of information out there about what people should do to keep a good credit rating, but what about those who need to start building credit? Credit isn't automatically just given away, so how does someone who's never previously had any credit go about establishing themselves within the credit industry?Start by opening a bank account if you haven't already. Then make sure to demonstrate responsible account management by establishing a pattern of savings and never overdrawing your account. While these things aren't actually credit, having a bank account and showing your ability to manage the account well helps build a positive picture of your financial management skills for potential creditors. At this point you should also have a spending plan in place. You need a current, working spending plan that shows all your income and expenses each month. This is important because as you obtain credit, you need to track your balances and accounts so you don't spend more than you can afford to repay. While establishing credit for the first time can sometimes be difficult, having to pay off debts with high interest later is even harder. Avoid this potential pitfall by starting with a good spending plan in place. Now it's time for you to apply for credit. A good place to start is with your bank where you have built a small reputation for being a good account holder. Speak to someone in their credit department and ask them what products they have available for your specific situation and needs. If they don't have a product that fits your needs, try applying for a gas card or department store card. You may also consider requesting that your card has a low limit of $500 or $1000 to avoid any temptations to spend more than you can afford. This is a great option for parents assisting their children in building credit by opening a joint account with them. It's important to remember that you only need to open one unsecured account at this time, so avoid filling out multiple applications. If you are denied credit on an application, be sure to ask why you were denied before submitting an application for a different line of credit. Filling out too many credit requests within a certain period of time can actually be harmful to your overall credit score. Plus, finding out why you are denied on one application can help you take action to prevent being denied on future applications. Finally, once you have a little credit, make sure you manage it effectively. Pay all balances in full and on time every month to keep your credit report in tip-top shape and try to expand your credit profile with other types of credit such as a home or auto loan. More resources and tools about spending plans, credit reports, credit scoring as well as worksheets for establishing a spending plan, are available for free online at www.consumercents.com. HOT TOPICS & INDUSTRY NEWSNew Personal Financial Coaching ProgramAAA Fair Credit Foundation is excited to announce the addition of a new personal financial coaching program to our suite of services. This programis tailored to help individuals and families truly understand their relationship with money and establish a shound financial future.In this 12-week program, you are partnered with one of our Certified Credit Counselors who work with you in analyzing your finances and debts, evaluating your current credit standing, establishing goals to accomplish financial objectives, planning and prioritizing your spending plan, developing debt elimination strategies, plus much more. On average, clients who participate in the Financial Coaching Program increase their knowledge about money and finances, improve their overall financial situation, lower their daily stress levels, decrease their debt load, and amplify their savings. To find out more about this new, exciting program and how to participate, visit www.faircredit.org/freecounseling.asp or call 800-351-4195. Did You Know...Due to recent changes in the credit industry, we have updated some of our ConsumerCents educational materials. You will find new and updated information in both the Credit Reports and Identity Theft booklets at the site. These materials are FREE when downloaded online. Be sure to visit www.consumercents.com and download these latest materials!The Wishing WellStay on Top of Your Finances with MyFairCredit!Ever wish you could consolidate all the great information AAA Fair Credit Foundation offers into one easily accessible place? You can with MyFairCredit! their daily stress levels, decrease their debt load, and amplify their savings.MyFairCredit is a customizable web platform that lets you tailor your viewing settings by selecting all your favorite parts of our website and online information and posting them into one easy-to-view place. Choose articles on the subjects that interest you most, get suggestions on good books dealing with personal finance, be inspired with financial sayings, stay up-to-date with our financial blog, and get reminded about great events with our calendar. their daily stress levels, decrease their debt load, and amplify their savings. You can even customize font size and where each piece of information is displayed on your screen! Visit www.myfaircredit.org today to set up your preferences and get the most out of our products and services. |  |