Participants: Cordell Thomas
Series Code: TITTB
Program Code: TITTB000008
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00:01 On Take it to the Bank,
00:02 you'll find ways to get out of debt. 00:09 Solve your credit card problems. 00:14 How to make and stick with the budget? 00:19 Simple ways to save. 00:24 Buying or selling a home and many more financial matters 00:29 on Take it to the Bank. 00:31 Hi, my name is Cordell Thomas, 00:33 and welcome to "Take it to the Bank." 00:35 Today, we have an exciting segment for you, 00:38 and I think this program will give you 00:39 a clear understanding 00:41 of some of the concerns you should have, 00:43 and, or the thoughts you should be thinking about 00:47 basically about credit. 00:48 Credit is really important part of society, 00:50 and I'm gonna give you three words. 00:53 Word number one, Character, 00:57 number two, Capacity, number three, Capital. 01:02 Some of the things that many banks 01:05 as well as other organizations that give out credit look at 01:08 when they're planning to give you access to credit. 01:12 For example, Character, do you pay your bills on time? 01:16 Do you take care of your bills on an ongoing basis, 01:19 on a timely basis? 01:20 Can you be trusted to pay it back? 01:23 Capital. 01:25 Do you have a savings or a checking account? 01:27 Do you save, and put money regularly 01:29 into that savings account? 01:31 And three, Capacity. Do you have a job? 01:35 Those are three basic issues 01:36 that a credit company is going to look at 01:39 when they're gonna offer you credit. 01:42 I have a story for you. 01:44 My wife and I were driving, 01:46 and I think my mother is always there, 01:47 I don't actually remember, 01:48 yes, she was actually in the car with us. 01:50 And we were driving home from an excursion, 01:52 and we happened to stop by a car dealership. 01:55 I needed a part for my car, I had a vehicle, 02:00 approximately a 12 year old vehicle, and at times, 02:02 you know, the car starts having little concerns, 02:05 you need to replace certain things, 02:06 and I went to buy the part that was necessary. 02:08 You know, of course a man, in and of its concerns, 02:11 you always get caught up by the new car, I love cars, 02:14 I worked for automotive companies 02:16 for about 11 years of my life. 02:17 And as I looked at the marketing context, 02:19 I never realized I could get caught into that thing. 02:22 So as I drove into a lot, 02:23 of course the sales people caught an eye, 02:26 saw this guy that probably looked kind of green 02:29 from the standpoint of sales. 02:31 But the context was, 02:33 they came out and asked me about my car, 02:34 was I willing to think about trading it in 02:36 and buying a new car. 02:38 Now there's one think I'd like you to know 02:40 is when you go into any type of retail establishment, 02:43 you are the consumer, 02:44 you're the person that's making these decisions. 02:46 You're the one that are making the final decision 02:48 about any type of purchase. 02:49 You are not there to be sold to. 02:52 And many times we lose perspective of that 02:55 when we go in. 02:57 It's all of a sudden we get caught up in-- 02:59 Well, let me get back to the story. 03:00 So we get into the dealership, I go to the parts department, 03:03 and I find out exactly what I need. 03:05 Of course, in addition to the part that I need 03:07 which I hadn't budgeted for, remember the budget? 03:10 I also got this football, 03:13 you know, had the logo of the dealership on it, 03:16 and the logo of the manufacture on it, 03:17 and I thought it'd be great 03:19 to take this little football home with me, 03:21 so I could play around with my son. 03:23 Oh, wait a second. 03:24 My son was really about, 03:25 only about two years old at the time 03:27 so it didn't really matter. 03:28 But at that time I was there, I was not looking at my budget, 03:33 didn't even think about it, just thought about, 03:35 hey, need the part. 03:36 Did I have a savings in mind? 03:38 Did I plan for this acquisition? 03:40 No, I hadn't. 03:42 But I walked in, 03:43 and got sucked into the retail process. 03:47 So, you have these guys 03:48 that are trying to sell you something. 03:50 You have a car that's there that they want to look at 03:52 so I said, "Sure, take a look at my car." 03:55 Now you have to understand-- 03:59 when a dealer, or a sales person, 04:03 or a parts department, or a service department person, 04:05 whoever or this used car manager 04:08 takes a look at your car, 04:09 their intent is not to say, "Oh, you got a good car. 04:12 Go and drive, 04:13 and take care of it for a long time." 04:15 Their intent is to sell you a new car. 04:17 Their intent is to make money for their business 04:19 and their establishment. 04:21 That is the same perspective you should have 04:23 for your own business, 04:24 your own personal family business, 04:27 and your budget. 04:30 You are in it to retain money for your company, 04:35 your organization, your personal lifestyle. 04:37 So you have savings, and you have investments, 04:40 and you would have opportunities 04:42 to utilize the talents 04:43 that God and the Holy Spirit gives to you. 04:46 So essentially you keep that in perspective, 04:48 so I'm standing in the dealership 04:49 and of course, I've already bought the part, 04:51 I've already put it back in the car. 04:52 Now the car is gone, the dealer has the car, 04:54 and they're assessing the value of the car. 04:56 Now, while that's going on 04:58 that they have this subtle sales person coming in 05:01 and saying, "Come on, take a look at this car. 05:04 Take a look at this new Passat. 05:06 Passat has a different shape, it has new amenities too in it. 05:10 That smells new and all these kind of things. 05:12 I think, I can't really afford a new car. 05:14 Well, ding, ding, ding. 05:16 One of the best things I said during the whole day. 05:18 But, they took me to the used car department 05:20 and there was this wonderful looking Passat. 05:24 Nothing new from my car, except it was newer. 05:27 And it had the new car smell and it had the new car feel 05:31 and boy, I looked good in this new car. 05:33 And I started telling, hey, Honey. 05:36 You know this car is really nice. 05:37 I started beginning to sell my wife 05:39 on this new product that we really didn't need 05:43 and we hadn't planned for, 05:45 and it was just an opportunity for a sales person 05:48 to talk to me and so I'm-- 05:50 All of a sudden I'm getting caught up 05:52 in this process of a new car. 05:55 And then, Honey, this is a great opportunity. 05:59 They're giving us a great deal. 06:01 How much was it going to be on a monthly basis? 06:04 Understanding that the car I had 06:06 was already paid for. 06:08 I had no car payments to make and the context really is 06:14 that I got caught up in this process 06:17 that I really wanted this car, I took it on a test drive, 06:21 I went out and did certain things 06:23 while I was still waiting on my car. 06:24 They were just holding it back, 06:25 because they wanted this opportunity to sell us. 06:27 And remember, my wife and I 06:29 sitting in the sales person's room, 06:32 and he is hammering us on. 06:33 Yeah, this is why you need the car. 06:35 And these guys are really good professionals, 06:37 because I got caught up in the hype and I'm saying, 06:40 wow, we can afford this, we can do this. 06:41 Let's get this car! 06:43 Now, I have one of the wisest wives 06:45 in the world. 06:46 She is so cool, and she is very subtle, 06:48 she let me feel my manliness, 06:51 she didn't really cut me down to size 06:52 which she should have. 06:53 But she basically said, you know, Honey, 06:55 that's such a good idea. 06:58 Why don't we take this concept home 07:00 and think about it. 07:02 Okay. 07:03 When you got a wife like that, 07:05 that's a greatest thing in the world 07:06 because the concept really wasn't about taking it home 07:07 and thinking about it. 07:09 It was that three day cooling off period 07:10 that I needed. 07:12 So we went home and thought about it 07:16 and didn't do anything, 07:18 because I didn't really need the car. 07:20 After a couple of days or even a couple of hours 07:22 of thinking about an additional $300 a month fee 07:26 for a product that I didn't really need. 07:30 After four hours, and I talk with my wife, 07:32 a frank conversation of course, that lifted the budget. 07:36 It wasn't really planned for, 07:37 you should think, Cordell, a little bit more. 07:39 I mean, I got it reading between the lines 07:41 that it came through to me 07:44 that I didn't need to get into this credit mess 07:47 of making more payments and pay more than I had to. 07:51 And that was close to six, seven years ago now. 07:54 Seven years later, 07:55 I have the same car and it's paid-off, 08:02 and the only thing I've been putting into it is gas, 08:04 and maintenance, and those types of things 08:05 and I saved a whole lot of money, 08:11 because of the wisdom of that partner 08:13 that I'm responsible to. 08:15 So, couple of issues here. 08:19 As you look at credit, as you look at money, 08:25 as you look at financial literacy, 08:28 I ask you to do the same type of thing 08:31 is getting someone that you're responsible to, 08:33 talking about issues when it's a major purchase. 08:36 I ask you to look at 08:42 what it is you are trying to accomplish, 08:45 and ensure that you talk to the individual 08:49 about that person you are responsible to. 08:50 In this case it was my wife. 08:52 And you'll find 08:53 that there is something that happens in your life 08:57 that you realize that I don't need this, 09:00 it's not important. 09:01 Take a couple of hours, take a couple of days. 09:03 Take three days, 09:05 tell the sales person, you know what? 09:06 This is great, I really need it, 09:08 I really want it, 09:10 but I need three days to think it over. 09:12 And realistically what I think will happen as you go home 09:15 and realize, I don't need this $2,000 item. 09:18 I don't need it right now. 09:20 But then again, there's credit 09:23 and many people get caught into issue of-- 09:25 Okay, I don't have the down payment, 09:27 I haven't planned for it, I haven't budgeted for it, 09:29 but I do have a credit card that is has a balance on it 09:31 and I can put the deposit 09:33 or add the down payment on the credit card 09:34 and then you begin the process 09:37 of not only making the card payment, 09:39 but you're also making a payment on the credit, 09:41 on the credit card and you have to pay that back. 09:45 And that begins the process of, it could be good, 09:47 it could be bad if you plan for it. 09:49 But I also think that if you're saving 09:52 and it's a part of your priority process, 09:56 then you know that this mid-term goal that you have 09:59 is having a $10,000 down payment for a vehicle. 10:03 And then decreasing the amount of time 10:05 it takes to pay it off. 10:06 Simple things to think about, about credit. 10:08 Credit, we need credit 10:10 for many different things it seems. 10:11 It's a part of our lives. It's a part of what we do. 10:14 It's a part of everything that the media tells us, 10:18 and we now think that I need a hotel room, 10:21 so I need a card to hold a room with. 10:23 I need to book a flight 10:26 so I need the card to pay for the flight. 10:29 I need a card to do a variety of things. 10:32 And listen, credit is not necessarily a bad thing 10:36 if you mange it well. 10:38 Understanding that you develop your budget, 10:41 you have your priorities in line. 10:43 You have your goals 10:44 and you understand how much you're going to spend 10:46 and how much you're going to save 10:48 and how much you're going to put back to ministry. 10:50 And then you understand that amount you can use 10:54 after a decision making process, 10:56 is this car necessary? 10:58 Is it a need? Is it a want? 11:01 Those types of things are what we need to think about. 11:04 So we are going to talk a little bit now 11:06 about credit. 11:07 We're going to talk about being aware of 11:10 and understanding what credit is. 11:13 And the importance of understanding 11:16 how to use the credit that you are blessed with. 11:20 Why do we get credit? Why do we get credit? 11:24 Good question. 11:26 One of the rational for credit is just to establish a history. 11:30 Our young people sometimes 11:32 may not be able to get a credit card on their own 11:33 so as parents we cosign with them 11:35 and they're able to begin the process 11:37 of establishing a history and getting credit. 11:42 The advantages of having credit is that I can buy needed 11:47 or wanted services 11:48 or products with anticipated future income. 11:52 Now, there is a danger sign there. 11:53 We are assuming that we are going to bring in a paycheck. 11:57 Therein is the capacity, I have the capacity, 12:01 I have a job, so I can pay back this credit, this loan. 12:07 When you take a look at credit. 12:12 Credit is using somebody else's money 12:14 and in using somebody else's money, 12:16 there is a fee for that use based on an interest rate. 12:19 Now, there are certain benefits to credit 12:21 because if you use a credit card 12:24 and you pay that amount off within 30 days, 12:27 you are not going to be charged any interest. 12:30 So if you use credit the right way, 12:32 you are not going to be paying anyone anything 12:34 except using the money temporarily, 12:36 and because you have savings account, 12:39 and you have planned for this purchase, 12:42 you just take that money out of your savings 12:44 and a write a check to your credit card company 12:48 and pay it off at the end of the month. 12:50 Essential to understand. 12:51 So it's to buy needed or wanted services or products 12:55 with anticipated future income, and that is capacity. 13:01 The nice thing about credit too 13:02 is you have a record of your purchases. 13:05 There's a clear record of how you use the credit 13:07 and it gives you a clear record of that. 13:11 Third one is, it helps if you would like to, 13:13 if you have credit, you can use it to consolidate bills 13:17 which may be a good idea if you are on a lot of debt, 13:20 overwhelming debt, 13:21 you can try to consolidate that into one payment 13:24 and payback one organization. 13:26 Okay. 13:27 There are disadvantages of credit 13:29 of what we mentioned. 13:30 There's three I'd like to mention. 13:31 One disadvantage is interest payments. 13:33 Interest payments, 13:34 the cost of using someone else's money. 13:39 One of the dangers of credit 13:41 is overspending becomes an issue 13:44 and becomes very easy, overspending. 13:47 Remember, one of the warning signs of debt 13:50 is overspending. 13:52 And if you are overspending, 13:54 it means one, I may not have a budget 13:56 or two, I have a budget but I'm not watching it. 13:59 And then I ask you that as you develop the process, 14:03 make sure you have someone 14:04 that you can feel responsible to. 14:07 The third one is, 14:10 if you don't manage the card wisely, 14:13 mismanagement of the card 14:15 from several different standpoints. 14:17 Mismanagement could mean, 14:19 I don't watch where I keep my pin number 14:22 and I carry my pin number to the card 14:24 or my security code to the card around with me. 14:27 My card get stolen. 14:28 I might use it inappropriately 14:30 in palaces that may not be necessary. 14:32 It may be skimmed from me. 14:33 If someone might steal my card number 14:35 and sell it to someone overseas 14:36 and it can be mismanaged from that perspective. 14:39 Mismanagement is something that happens all the time. 14:42 And I'd like to actually bring Jessica on this 14:46 and ask her specific question about fraud. 14:49 Fraud is an issue to credit 14:52 and the question I have Jessica is, 14:54 what are the current areas of and stats on credit card fraud? 14:59 Jessica tell us about it. 15:04 There are several areas of fraud 15:05 and credits makes up about 25 percent 15:09 of the entire picture of fraud. 15:11 The other areas are driver's license, 15:14 character and criminal, social security number 15:17 and one of the fastest growing areas 15:19 is medical fraud. 15:22 Thank you, Jessica. 15:24 There's a lot of things going out there in the world. 15:26 Some of we're going to touch on in other programs 15:29 but in this one specifically, 15:30 we want to tell you that fraud is an issue, 15:33 it's a concern as a part of credit. 15:35 Protect your information, protect it 15:38 and make sure that if there is anything comes up, 15:40 check your credit reports on annual basis, 15:43 you do have a free access 15:44 to at each one of the three credit bureaus, 15:46 and ensure that everything in your files 15:48 are as accurate as possible. 15:50 Why do banks issue credit? Why? 15:53 Why does any type of corporation 15:55 do something? 15:56 Well, any corporation is in it to make money 15:59 so it's the same with banks. 16:01 Why do they offer credit? To make money. 16:04 How do they make money? How do banks make money? 16:06 Several ways. 16:08 If you have a checking account with them. 16:11 Sometimes they may offer a checking account 16:13 with a minimum balance requirement. 16:14 Maybe a savings account 16:15 with a minimum balance requirement. 16:17 Whatever the case may be, 16:18 if you don't maintain that minimum balance, 16:19 they can charge you a fee, 16:21 it can easily go up to $200 per year in fees 16:24 for not maintaining a specific balance. 16:26 Watch that. 16:27 And it's a question you need to ask. 16:28 I would much rather have a free checking account, 16:31 regardless of what the balance is 16:33 or if you are pretty good saver, 16:34 and you worked on your budget, then that speaks for itself 16:37 and you can make something, 16:40 create an account at the bank that's comfortable to you. 16:45 They make money if you bounce check. 16:47 It's essential, it's essential that you work on a budget, 16:50 you know where your money is 16:51 that you take a look at your bank statement 16:53 on an ongoing basis 16:55 and make sure you reconcile your account. 16:57 Make sure you've accounted for the outstanding checks 16:59 that are not on the statement 17:01 because it's so easy to get out of that, 17:03 and banks now will charge upwards of $35 17:07 for any bounced check. 17:08 And it's interesting because they are thinking more 17:13 so especially after the crisis in 2008 17:16 about how they can make more money 17:19 and make up the difference that they have had. 17:22 Thirty five dollars fees for paying and making sure 17:26 that they've covered the check that you've written. 17:28 So if you have zero in your account 17:30 and you write a $35 check, 17:33 now you owe the bank $70 to cover the check 17:37 and to cover the insufficient funds fees. 17:40 Watch that, that can accumulate very quickly. 17:43 But then of course banks make money off of credit 17:46 that they give people, 17:48 and they pretty much are aware that they give you credit, 17:50 you're going to use it, 17:52 and in most instances what did we say, 17:54 credit card debt per family is $14,750. 17:58 They are not paying off the credit at each after 18:02 and within 30 days 18:04 after paying off the full amount, 18:06 they are letting it linger on 18:08 and making even the minimum payments 18:10 or making extended payments in their account, 18:12 and that bank is making interest 18:14 on the funds that they have loaned to you. 18:18 Watch that. They make money in many different ways. 18:22 Your responsibilities then is not to run up more debt 18:25 that you can comfortably pay back. 18:27 Essential. 18:28 Number two, do not exceed the credit limit 18:30 that established by your creditor. 18:33 Don't-- 18:34 And this is interesting. 18:36 You are not allowed to resell merchandize 18:38 before you've completely paid-off that debt 18:42 to the creditor. 18:43 If the creditor has retained the title 18:45 or has lean against it in this case for house 18:48 and or car or whatever the case may be, 18:51 you need to make sure you're approaching 18:53 how you use that merchandize in the right way. 18:56 And then of course, 18:58 what we talked about in credit card fraud 18:59 that occurs and some of the stats 19:01 is to notify your creditor immediately 19:04 if you know that your card is lost and or stolen. 19:07 You do have rights. You do have rights. 19:09 There have been state statutes that have been put in place 19:13 that say basically, we're restricting a creditor 19:17 on the amount of interest that you can recharged. 19:21 So, yeah, if you have bad credit, 19:22 and you've miss payments, you don't shown the character 19:25 or you lost the capacity, 19:28 it mean an income to payback a loan, 19:30 then you are probably paying an elevated interest rate. 19:33 But those interest rates are capped at a certain amount. 19:37 The average interest rate for bad credit 19:39 is approximately 23.5 percent interest 19:42 that banks and or creditors will charge an individual 19:46 who has bad credit. 19:47 Think about that and consider that. 19:51 Research credit bureaus, if you have a chance 19:53 and you don't have a computer at home, 19:55 access a local library 19:56 and do search on information on credit bureaus. 20:00 Take a look at the three credit bureaus 20:01 that are out there and take a look at 20:04 how they work and what they're all about. 20:06 It's essential that you research 20:08 and get that context in place. 20:09 It's important as it applies to your credit, 20:12 because they're the one's tracking your credit 20:15 and giving you a specific credit score 20:16 based on your what? 20:18 The three C's of character, your capacity and your capital, 20:23 and they would track that all the time. 20:25 And if you miss a payment 20:26 or you're 30 days, 60 days, 90 days late on paying, 20:30 they put that in your credit file 20:32 so that other creditors can evaluate you 20:34 based on either character, again capacity and capital. 20:39 A credit report, what is it? What does it provide? 20:43 Anyone that looks at your credit 20:45 will see identification, information and employment data 20:48 if you are employed, capacity. 20:52 They'll take a look at your payment history. 20:53 They'll take a look at other inquiries 20:56 in the system inquires into your credit. 21:00 They'll look at credit scoring, and the manner of the payment, 21:04 they have different codes 21:05 that they assess to your specific file. 21:12 There are things that you can do 21:14 if there is information on your credit report. 21:16 We're gonna get into that when we talk about fraud, 21:19 ID theft, many of these things are real 21:21 and they're relevant, 21:22 and will get into that at a later time. 21:24 But the context is to understand 21:26 that you need to know, how much you can afford, 21:30 understand that the system in and of itself 21:33 has placed a rule of thumb in place that you can say that, 21:37 based on my monthly net income, I know how much per month 21:41 I should be paying back my creditors on a monthly basis 21:46 as a part of my income, 21:47 that's 10 percent rule, there's a 10 percent rule. 21:50 There is also a 20 percent rule 21:51 based on your yearly or annual net income. 21:55 You shouldn't exceed owing more than 20 percent 21:58 of your annual net income, that's a 20-10 rule, 22:01 that's a rule of thumb. 22:03 It includes, I would suspect loans based on a car note, 22:07 and of course credit and those type of issues. 22:10 So once you're looking at your budget 22:11 and of course you've already assessed where you're at. 22:14 You have already created that budget, 22:16 so you know how much you make and how much it goes out. 22:19 And then of course you know 22:20 how much you can allocate of that money that you pay out 22:23 towards paying your creditors. 22:26 Keep that in mind 22:27 and make sure you adhere to that 22:29 and don't go over rough, 22:30 so if you already are at that 10 percent limit per month, 22:34 I can't really afford any more credits, 22:36 so I better save, pay off the credit 22:38 and increase my capacity to purchase other things 22:42 without having to necessary go into debt. 22:47 So, list five things, 22:51 and I'm gonna give you the answer 22:52 so don't worry too much about it. 22:54 Get ready to write this down 22:55 because this is really good stuff. 22:57 Five things that you can do to build a good credit history. 23:03 Five things, I'm gonna list six in this case. 23:07 Establish a steady work record. Establish a steady work record. 23:13 Number two, pay all of your bills promptly. 23:17 Pay all of your bills promptly. 23:21 Number three, open a checking account 23:26 and don't bounce any checks. 23:28 That means, before you get to these things 23:30 about building a credit history, 23:32 you need to have a budget. 23:34 You need to know where the money is going. 23:36 You need to be reconciling 23:38 any type of thing coming in about your funds. 23:40 And when you open that checking account, 23:42 reconcile your checking account every month 23:45 and make sure you know how much is in there, 23:48 you have coverage for all the debts 23:49 that you're paying, the outstanding checks 23:51 and make sure you don't bounce any checks. 23:53 Number four, open a savings account. 23:57 This gives you the capital of the three C's, the capital. 24:03 They see a savings account 24:04 and you make regular monthly deposits 24:07 to that savings account. 24:10 Then, of course number five. 24:13 Apply for a small loan using your savings account 24:17 as collateral, that's something that you should be aware of, 24:20 and then pay it back as agreed. 24:24 Another good thing to establish good credit. 24:29 Then number six, 24:31 one is something I don't technically adhere to 24:34 because it's one of the rules of thumb 24:36 that they give to you in building good credit. 24:38 I would suspect that this only applies 24:41 to maybe a student, a child of a parent 24:45 that is looking to establish credit. 24:47 It says basically to get a cosigner 24:49 for credit card and a loan, 24:51 and pay back the loan as agreed. 24:54 That cosigner can-- 24:55 If you cosign for a friend or for distant relative, 24:58 it can get sticky if you don't pay it back, 25:00 because you're not only impacting your credit, 25:03 you're impacting theirs. 25:05 So, as we look at these specific issues, 25:07 I'm gonna ask you a couple of questions. 25:09 Test question number one. 25:12 A, B or C does it apply to character, 25:15 does it apply to capital or does it apply to capacity? 25:19 I'll give you the answers real quick. 25:21 Character is your ability to pay on a-- 25:23 That your record of paying back on a timely basis. 25:26 Capital, do I have a savings account 25:29 that I regularly put money into 25:32 and C, third C is capacity, do I have a job? 25:36 Okay. 25:38 Do I have a savings account, applies to what? 25:41 It applies to capital, 25:42 because I'm putting money regular into a savings account 25:46 and that says to the creditor that he has a capital. 25:50 Number two, question is, have you used credit before? 25:55 Applies to your, character. 25:58 I pay back my bills on a timely basis. 26:02 How about this one? 26:03 How long have you lived at your present address? 26:07 That is character. 26:09 It says that you stay and you pay your rent on time 26:13 and you are someone that can be trusted 26:15 and you're not just someone that's gonna be fly by night 26:17 and move in the next two or three months. 26:19 That applies to character. 26:22 Do you have a steady job? What does it apply to? 26:28 Capacity. 26:30 I have the ability to make future money 26:33 to pay it back that debt. 26:37 That applies to capacity. 26:39 Number-- 26:41 Whatever number I met, next question. 26:43 Do you pay your bills on time? Did you pay your bills? 26:46 You know what that is, applies to character. 26:49 And the last one I'll ask you is, 26:51 what are your current debts 26:53 and your current living expenses? 26:55 What are your current debts and current living expenses? 26:59 That applies to capacity. 27:03 The capacity to pay it back, I have a job. 27:08 Those are issues that you need to look at, 27:10 the three C's are what? 27:12 Character, I paid on time. 27:15 Capital, I have a savings account. 27:18 Capacity, I have a job. 27:21 Major things that your creditors will look for 27:23 as you begin the process of developing a credit history. 27:29 It's essential 27:31 that you establish a work record. 27:35 It's important 27:36 that you get in the habit of paying your bills on time. 27:40 It's important that you have a checking account 27:43 and you don't bounce checks. 27:45 It's important to open a savings account, 27:48 and put money into it on a timely basis. 27:51 I tell you right now that budgeting is key. 27:55 Remember that you should take it to the bank 27:59 and save. 28:00 God bless you. |
Revised 2016-06-09