Author Archives: Khooppres

Three Ways to Increase Your Credit Score

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Credit is a significant factor in building wealth.  The truth of the matter is people without credit or with poor credit pay more for basic services (e.g., home mortgages, auto loans and insurance.)  Additionally, it’s important to know that no credit is the equivalent of poor credit.  That being said, whether you use it or not, if you want to build wealth, you need credit.  To ensure we’re on the same page, I’d like to introduce three key terms:  credit, credit reports, and credit scores.

Credit is the ability to buy now with a promise to pay later.  According to the Federal Trade Commission (FTC), if you’ve ever applied for a loan, credit card, insurance, or job, you have a credit report.  Your credit report is similar to a report card; it conveys a story to creditors.  It shows whether you’ve been a conscientious consumer, if you honor your credit agreements, and whether or not you’re carrying too much debt.  In today’s economy, credit is more important now than ever before.  Not only will it prevent you from being able to purchase or rent the home you desire, it can also prevent you from obtaining the job you want.  If you’ve never reviewed your credit report, there’s no time like the present.  Each year, consumers qualify for a free credit report from the three major credit bureaus.  To request your free credit reports, please visit www.annualcreditreport.com .

If you have a credit report, you have a credit score.  In an effort to ensure objectivity, many creditors use credit scores to assess an applicant’s credit worthiness.  A credit score is a numeric value that ranks an individual according to their credit history at a given point in time.  Credit scores typically range from 400 to 850 – the higher, the better.  Although obtaining your credit score from the three credit bureaus is not free, it’s worth the investment.  You can obtain your credit score from Experian, one of the three major credit bureaus, by visiting www.freecreditscore.com .  Because the information in your credit report may vary, you should obtain your credit score from all three major credit bureaus.

If you’re credit challenged, the following steps will help you improve your credit score:

  1.  Pay Your Bills on Time.  Creditors do not report your account as late to the credit bureaus until your account is 31 days past due.  Because we now have the ability to pay our bills online, many creditors have eliminated the grace period for late fees.  For example, if your credit card bill is due on June 1, most creditors will assess a late fee if your payment does not post to your account by that day.  Although you may incur a late fee, your account will not be reported as late to the credit bureau until it’s 31 days past due.
  2. Keep credit card balances below 50% of your approved credit limit.  Your credit score factors in how much credit you use.  In essence, just because you have it doesn’t mean you have to use it.  If you can’t pay off your balance at the end of the month, keep your balances low.
  3. Pay outstanding judgments.  If you have debts that are not in good standing, it’s important to make arrangements and pay them.  As you develop a plan to pay outstanding debts, you should focus on the most recently reported first.  You should also take an opportunity to request settlements.  Most creditors will accept settlements on bad debts.  As you work with a creditor on a potential settlement, try to settle the account for 50-60% of the outstanding balance, and make sure you obtain the terms of the settlement agreement in writing and honor them.

Restoring credit takes time, but it’s worth it.  Proverbs 22:1 states, “A good name is more desirable than great riches; to be esteemed is better than silver and gold.”  If you desire to build wealth for future generations, it begins with striving to maintain your credit worthiness.  For more information on how to restore your credit, please consider the book, Rags to Riches.

The Best Time to Act is Now

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Do you have some decisions in your life that you keep putting off?  We often delay making decisions on the very things that need our attention the most.  What we fail to realize is not making a decision is making a decision, and most times, our delay leads to more consequences.  Recently, I was watching a sermon by Bishop T.D. Jakes, and during his sermon he said, “Procrastination will never produce purpose.”  Regardless of your religious affiliation, I’m sure you’ll agree that most of us are striving to either identify our purpose or live it out.  And, most of us discover our purpose through day to day experiences and failures.

Unfortunately, as we experience life we can begin to doubt our ability to make sound decisions.  As fear sets in, we become afraid to take risks and we delay acting on those things that will move us one step closer to living out our purpose.  So, are there decisions that require your attention?  If so, the best time to act is now.  If you are struggling with procrastination, the following steps can help you move forward:

  1. Define the root cause for your delay.  Are you afraid to ‘move’ because of fear of failure?  In the book, An Enemy Called Average, the author states, “Even a turtle has to stick its head out to get ahead.”  He goes on to say, “Security and opportunity are total strangers.  If an undertaking does not include faith, it is not worthy of being called God’s direction.”  Fear is a strong emotion that in most instances does not depict reality.  In essence, the scenario we play out in our head is often far worse than reality.  Identify the root, acknowledge it, and act.
  2. Tell someone you respect about your plans.  Talking about your plan gives life to it.  I’m sure we’ve all met a ‘talker’- someone who talks a great game but does not follow through.  Perhaps you’ve been that person.  One way to ensure that you make the tough decisions is by discussing your plans with individuals you hold in high regard.  In doing so, you create a level of accountability that doesn’t exist when you’re the only one who knows your intentions.  Another benefit to discussing your plans is you may gain support or counsel that you would not have had if you had chosen not to share.
  3. Act.  We’re all familiar with Nike’s tag line, “Just Do It.”  Sometimes in life, you have to just do it.  There will always be reasons to delay, but successful people don’t spend time creating excuses.  The reality is if you make a habit of delaying decisions because of fear, you will not rise above it.  In a way, emotions are like muscles – the more you exercise it, the easier it becomes.  If you begin to move in spite of fear, over time it will become much easier to make the tough decisions.

I am not a stranger to procrastination.  During high school, my friends and I created a club called “Procrastinators Anonymous.”  There were four of us and we all struggled with waiting to the last minute to complete tasks.  At my graduation party, we had a cake to honor graduating from the club;  I wish it was that easy to leave the habit of procrastination behind.  I still struggle at times, but as I’ve matured, I’ve learned to perform the steps listed above.  You too can move beyond procrastination.  I hope you find this Post helpful, and I’d love to hear from you.

Be Vulnerable And Deal With Shame

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Are you aspiring to run a marathon or try your hand at writing a novel?  Perhaps you want to start your own business or go back to school, but you keep saying it’s not the right time.  I was looking at the news this morning and they were discussing the anniversary of Osama bin Laden’s death.  My husband and I looked at each other in disbelief!  Where has the time gone?  Do you remember when we were kids and it seemed like a year took forever?  As adults, we often find ourselves wishing that time would stand still.  Needless to say, if you’re waiting for the right time to pursue your goals and dreams, the perfect time is now.

Maybe you’re not waiting for the right time.  Perhaps you’ve started pursuing your goals, but you’re not giving it your all.  Or, maybe you’re on the cusp of success but you’re choosing to stay under the radar.  Could it be you’re afraid of what others will think; if they’ll approve or stand in judgment?  I will admit that I’ve been there and still experience this emotion often.  If you’re not achieving the level of success you desire, or you keep putting off your ‘start,’ it’s time to look inward to figure out why.

Recently, a dear friend sent me a link to a presentation by Brené Brown.  During her presentation at a TED conference, she discussed the difference between guilt and shame and the requirement of vulnerability.  Before viewing her presentation, I thought guilt and shame were the same.  Ms. Brown states shame is a focus on self and guilt is a focus on behavior.  We all have a ‘tape’ that plays over and over in our heads.  Shame is the ‘tape’ that says you’re not good enough.  Guilt is the ability to acknowledge a behavior, apologize for it, and move forward.

Pursuing our goals can often leave us exposed.  Ultimately, greatness requires us to take risks and move beyond the safe choices.  No one likes to be vulnerable, but Ms. Brown believes that it is a prerequisite for success.  She goes on to say that vulnerability is not weakness, but it is the birthplace of innovation, creativity, and change.  I am familiar with the fear of failure; we know each other well.  However, I have to admit that I don’t care about my private failures as much as I care about the public ones.  During Ms. Brown’s speech she mentions Theodore Roosevelt’s quote:

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold and timid souls who know neither victory nor defeat.

Mr. Roosevelt’s quote shares all the reasons why we should choose to get in the ‘arena’ and change the ‘tape.’  If you’re waiting for the perfect time to pursue your goals, or you refuse to be vulnerable as you do it, you may never achieve the level of success that God has predestined for you.  To listen to Ms. Brown’s full presentation, please click on the following link:  Listening to Shame.

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