Credit Scores, Credit Cards

Credit Scores, Credit Cards, The Silver Lake Editors, Silver Lake Publishing, 2005

It's no great revelation to say that America has become a credit economy. Credit can bring an upper-class
lifestyle to the middle class, and it can be the instrument of a person's financial downfall.

There are many ways to measure a person's financial condition, but the benchmark is a FICO (Fair, Isaac and Co.) score. Those with a higher score can expect lower interest rates. However, those with a lower FICO score should plan on much higher interest rates, leading to higher bills each month, making their financial hole deeper and deeper. It will take months, even years, of diligent effort to raise your FICO score, but it is possible, and a really good idea.

Get rid of all but one or two cards. After you pay off one card, cancel it and destroy it. Read your credit card bill, not just the amount owed. Call your credit card issuer, and ask about a payment plan or lower interest rate. Get a free copy of your credit report from one of the major credit agencies, and read it. If there are any errors on the report (there is a good chance that there are errors), start writing and calling the appropriate persons. Document everything, and expect it to take lots of time.

For those with bad money problems, start with two simple steps. Make a budget and stick with it, and pay down your debts (even a small payment is better than no payment). Be very wary of the companies that promise to get you out of debt trouble; they may just make your problems worse.

The information in this book may seem like common knowledge, but considering the skyrocketing level of
credit card debt, and the rising numbers of people living off their credit cards, it certainly bears repeating.
This book does a fine job of showing, in plain English, just how credit works.