It’s In You

Saving Money

The Ability to Save Money is in You

Perhaps you weren’t raised with a savings mindset. Maybe you were given everything and never really had to work to achieve your goals. Or, maybe you just were not taught the value of a dollar. Regardless of how you were trained, you can be re-trained, you can gain a new perspective based on your present reality, and the ability to save money is definitely in you. Here’s why.

Self preservation is defined as the protection of oneself from harm or death, especially regarded as a basic instinct in human beings and animals. It is basic human instinct to want to survive. We are not lemmings. We don’t just blindly walk off cliffs and plunge ourselves into situations that result in our demise…most of the time. By and large, we seek to stay alive and to do so with a measure of pleasure and happiness. Having money and saving money are pretty essential in today’s society; therefore, our basic survival instincts can help us save money if we will allow ourselves to think differently about wealth. Financial Education Service can help you do just that.

Getting control of our credit scores is often one of the most important things we can do in turning our financial picture around. When we are young, we make dozens of ill-conceived, unplanned, and foolish decisions. We often ignore the advice and counsel of our elders and we move full steam ahead into a slavery of debt! It happens but those poor choices tend to stick around and haunt or future lives. Financial Education Service can help you regain control.

The good news is, you can improve your credit score. You can pay off debt on an accelerated schedule, and you can safe guard your identity using one service portal from Financial Education Service. Contact an agent to today and learn more.

Why Let Others Dictate Your Future Dreams

Credit Score 2

Now or in the future, which of the following do you hope to purchase?

  1. An automobile
  2. A home
  3. A post-secondary education
  4. All of the above
  5. None of the above

If you answered 1, 2, 3 or 4, chances are you will one day (if not already) request the use of credit to assist in purchasing one of these expensive items. If you answered with e, well then, um, let’s just hope you didn’t answer with 5…If you did, maybe its time to talk to a Financial Education Service Agent.

When credit is requested from a lender (to purchase any of the above items and more), credit history is used to decide whether or not to grant that person credit. As we discussed earlier, the lender may look at either a credit report and/or a credit score to determine this. If a person has a negative credit history, or no credit history, they may not be able to obtain credit. Why? Well, let’s use the recurring example of your irresponsible friend that always asks to borrow cash. If you knew that he/she wouldn’t pay it back on time, would you continue to let him/her borrow it? Probably not. Or, if you were unsure that they would pay it back (meaning they don’t have credit history) would you let them borrow it? You might let them borrow $20, but you certainly wouldn’t let them purchase a house from you. Make sense?

In addition, a person’s credit history helps a lender determine the terms of credit granted, which could include the interest rate paid and length of the loan. Over a lifetime, a person will pay more for credit (in higher interest rates and fees) if they have a lower credit score. At Financial Education Service, we can help you unravel the mystery of your credit score.

A person’s credit history affects their ability to obtain credit and the terms of credit granted, but would you believe that credit history can also affect parts of your life that are not related to receiving credit? The truth is, more than potential lenders check a person’s credit history.

  • Insurance companies may use the information to decide whether you can get insurance and to set the rates you will pay
  • Employers may use your credit report, if you give them permission to do so, to decide whether to hire you
  • Telephone and utility companies may use information in your credit report to decide whether to provide services to you
  • Landlords may use the information to determine whether to rent an apartment to you

Basically, your credit history is important because lenders, insurers, employers, and others may use it to assess how you manage financial responsibilities. Wait, so we’re telling you that if you have a negative credit history, you could be without insurance or utilities, unemployed and HOMELESS? Now do you understand how important it is to have a positive credit history? Since it is so important, please remember the following about the importance of credit history:

  • Your credit history determines your ability to obtain credit.
  • Your credit history determines the terms of credit granted, such as the interest rate you will pay.
  • Your credit history affects much more than your ability to receive credit. Credit history can affect your ability to obtain a job, rent a place to live, and obtain utility services.

Contact a Financial Education Service Agent to learn more.

Good Credit Matters

Credit Matters

5 Reasons Why Good Credit Matters

From The Balance

Society is becoming increasingly dependent on using credit to make purchases and decisions. These days, good credit is used for more than just getting a credit card or a loan. More and more businesses are making the case that you must have good credit before they extend products or services to you.

Financial Education Service

It Affects Where You Live and How Much You Pay

Before you can buy a house, mortgage lenders want to know that you won’t default on your mortgage.

If you don’t have good credit, the lender will consider it risky to give you a mortgage loan. If you’re approved for a mortgage, your credit affects your interest rate which directly impacts your monthly mortgage payment. Bad credit could mean a higher mortgage payment. Worse than that, your mortgage application could be turned down because of your bad credit.

Don’t think that because you’re not looking to buy a house right now that your credit isn’t important. Landlords also use your credit to decide whether to rent to you. Landlords consider your lease as a loan. You’re being loaned a place to live and the landlord wants to know you’ll pay back this loan. If you don’t have good credit, you can get denied for an apartment.

It Affects What You Drive and Your Car Payment

Unless you have the cash to purchase a car, you’ll have to get a loan. Your credit not only affects whether or not you qualify for a loan, but also the amount and interest rate of the loan.

 Generally, loan applicants with good credit qualify for larger loan amounts with lower interest rates.

Bad credit limits your options. Fewer lenders will work with you if you have bad credit and those that do will charge a much higher interest rate on your auto loan. A higher interest rate means a higher car note to pay each month.

It Can Affect Your Job Search

Many employers conduct credit checks as a part of the hiring process. (Note that employers check credit reports not credit scores.) If you haven’t demonstrated financial responsibility, a prospective employer might be hesitant to hire you. For example, the employer might believe your level of debt is too high for the salary offered.

Some employers also check credit scores before giving a promotion or raise, especially for financial-related or executive positions.

It Affects Your Ability to Start a Business

Many people have dreams of starting their own business. Most business startups require a sizable amount of cash that you might not have available. In that case, you’ll need to obtain a small business loan. Among other things, you need to have good credit to qualify for the business loan.

It Affects Other Monthly Bills

It might be somewhat shocking to learn that your credit is needed to establish utility service. Your electric company contends that you’re borrowing one month of electric service. So, before turning on your electricity, the company will check to see if you have good credit. This applies to most utility services including cable, telephone, water, and even cell phone.

Since your credit is defined by how you’ve paid (or not paid) your bills in the past, many businesses — landlords, mortgage lenders, utility providers, and even employers — use your credit to predict your future financial responsibility. Anytime you need to borrow money, or even services, your credit is called into question. This is why maintaining good credit is so important.

Now is the time to take charge. Get your credit fixed, raise your score, and regain control over your future. Contact a Financial Education Service Agent to find out how you can improve your credit and protect your identity.