February Financial Series Continued.........

January was the month to gain understanding of where your money goes. Did you track every purchase - from rent, electric, vending machines, every cup of coffee and fast food run? If you did I am sure you were surprised at how much money is spent on items that keep you from getting closer to your goal and really is not enhancing your quality of life today.

The extra money you now have should go into a savings account. Let's start to build a reserve while we learn more about personal finances.

Today we are going to talk about credit. A great resource is Credit Abuse Resistance Education Program (Care) We all have a credit score. The range will be between 300 and 850. People with high scores are more likely to pay money borrowed back and are a better risk. Your credit score will determine how much you pay for things the rest of your life! You will get a lower interest rate if your credit score is high. The magic number is 700.

Items on credit report: General personal information, history of on time and late payments for almost all areas of life, bankruptcy and employment.

Stop right now and request a free credit report! You are entitled to a free report every year. Mark your calender and make this a habit. Do not use any other site. Go to www.annualcreditreport.com. Print off the report and review. If your score is lower than 700 there are ways to improve it!

Ways to increase credit score:

1. Check for mistakes and if you find one - request correction.

2. Pay your bills on TIME

3. Pay off credit card debt

4. Have 1 credit card and use it responsibly. By purchasing on card and paying off every month - it will show you are responsible. Do not use it for everything pick one or two small items and then use a cash system for the rest of your purchases.

5. Stop applying for credit cards. Do not get sucked into a free t-shirt, or saving 10%. Every time you apply for a new card they check your report and this affects your score.

The opposite problem is having no credit history. If you have no history you will not be eligible for a mortgage or car loan. While you build your credit the trick is to do it responsibly. Tip #4 - 1 credit card, use it each month for small purchase and pay it off. Use cash for everything else!

Your job this month is to continue to track your expenses and stop the leaks on little purchases take the money and put it into savings! Work on understanding your credit score. Get your credit report and review it, understand it and make sure it is accurate. Continue to work on paying off debt.

Any questions or concerns send me a comment or shoot me an email.

I should have my web page live very soon and we will have printable versions of each months steps to financial success.

Stay tuned......