Geeze. Give Me Some Credit

Some things in this world just make little to no sense.  Wheel taxes.  The Kardashians.  And credit.

The thing with credit is that it takes credit to get credit, much like new graduates feel the pressure to have job experience to get a job.  It's a total catch-22.

Here are a couple of things that I've learned so far.  Hopefully they will help you, too.  Please bear with me.  We're dealing with complicated subject matter here.  (Unlike said Kardashians.)

In my quest for fiscal knowledge, I have found that one of the best ways to raise one's credit score is to use a credit card.  (Remember to check Credit Karma to see your score for free.)  Oh, and pay it off in full each month.  Just pay a regular expense, such as a cell phone bill or a trip to the grocery, with your credit card.  Come home, unpack, and virtually swipe that debit card to pay off your credit card purchase.

This way you use a small part of your credit limit, which improves your debt-to-credit ratio.  And make consistent payments without carrying a balance.  This looks good to Mr. FICO.

You may be saying: But TomTom, how do I get a credit card?  Excellent question, you.

Recently I applied for a card from a major company and was instantly denied.  Limited credit history.  What a bummer.  I have a steady job, stable income, pay my bills on time, etc.  It didn't matter.  My score was considered fair, but the 'hard inquiry' from that company lowered my score by 20 points.  This is what's known as a double whammy.  You try to scrape together a decent score, but your efforts are only rewarded with a swat at your points.  Le sigh.

I was able to get a no-frills card from a local bank, and after using my card one time (and paying it off, as mentioned above), my score went back up by about 20 points.  I look for it to increase as I continue to make a credit card purchase at least once a month, indefinitely.

Why does this matter?  Your credit score is a numerical way of expressing your reliability.  At least in "The Man's" eyes.  If you plan to buy a house, then the higher your score, the lower your interest rate.  If you apply for a job, the potential employer may check your credit score.  Collections from Verizon?  Goodbye, corner office.  Or tiny cubicle. 

These are not circumstances to be taken lightly.  If you are in college, please don't be like me and treat pre-approved credit offers like they're covered in warts.  Compare your offers and take a card.  It doesn't mean you have to max it out or even carry it around all the time.  Again--small, regular purchases that you pay off.

If you have teenage children, call your credit card company and have your child(ren) added as authorized users.  Then don't even tell them until they're older.  That way, your score becomes their score, and they don't have to do anything to earn it.  (It's one of the few times in life that I will endorse that mentality.)  When you go to remove them as authorized users, it will not affect the score of either party.

If you've made it this far, thanks!  I hope that this has been useful information.  On Specs Appeal I try to share only what I feel is crucial for your daily life.  Please remember that I am not a financial expert and am only sharing things that I have learned in my own experience.  There are tons of great books, blogs, websites, and so on, but if I can be of assistance, please let me know!  Mazel!

A Little More Peace of Mind

That wakeup call a few weeks ago is still front and center in my mind.  I've continued to read and research, and today I found a really useful site called Caring Connections. 

On this site, you can download (for free) the state-specific advance directive form that applies for you.  This is basically a document that you sign (and typically have witnessed and/or notarized, depending on the state) that tells your wishes.  Do you want to be kept alive on machines if, God forbid, something terrible happens in your young life?  What if you develop a serious condition when you're older? 

The fact is that no one can predict what will happen, and when you need to make use of an advance directive, it will already be too late.  This site makes it very easy to download, print, and proceed with completing your advance directive.  It is a document that every legal adult should have.  And it's free.

I try not to be too preachy with my blog, but when I come across information that I feel is vital to be shared, then I am going to share it.  It's because I care about each of you whom I know personally, and I also want other readers to be in the know.

Note: This is by no means a substitute for legal or medical advice.  I feel compelled to add that little jewel.

Failure to Prepare...

...is preparation to fail.

I'm using this cool, Real Simple graphic of spoons in a drawer again because a) I love it and 2) I've been getting my collective "house" in order. 

 A couple of weekends ago, when I was back home visiting, I was awakened early Sunday morning by screams from my mom.  Needless to say, it was unsettling.  She had fallen in the dark, on her way to the bathroom, and long story short, my brother and I ended up in the ER with her. 

She is totally fine now, although at the time she was beside herself with pain and confusion.  And so were my brother and I.  We did not react very well to this mini-crisis at first, but we picked up the slack and got her the care she needed.

All of this got me to thinking about making arrangements for life's little uncertainties well in advance.  For example, I was faced with this question: Sir, what is your mother allergic to?  And I promptly drew a blank.  My brother knew less than I did.

Now, granted, Barb is completely back to her version of normal now.  And she's way (way) too young to be "falling," but these are the kinds of things one should prepare for before they are needed.  Suze always says that one needs a will and trust.  I'm now working on that, despite my lack of vast wealth or children.

The important thing is to make your wishes known to your immediate family, despite your current health, income, living situation, etc.  If (God forbid) your health were to take a turn for the worse, would you want life support?  Who gets your house?  Your money?  Your creepy doll collection?  Do you want to be buried?  Cremated?  Other?

I'm not trying to be all macabre here, but I've had a bit of a wakeup call, and I want to pass along this life lesson that I'm currently in the midst of learning.

What I Know For Sure

I guess Oprah inspired this new series of posts.  When the inspiration strikes, I'll share some of my life lessons so far.  The first is one that I stand by.

People will make time and money for whom and what they want to make time and money for. 

I mean this in a fairly general sense.  I don't mean that if someone wants a Mercedes, they will have a Mercedes, although they could.  I'm talking more about the day to day stuff.