A personal credit
guide is an essential part of
our lives. All of us, at some point in time need credit;
be it in the form of a loan, credit cards, connecting
utilities to your home etc.
It can determine whether or not your application of
further credit is granted or declined. Research shows
that it is one of the most important factors in
classifying would-be borrowers who will repay their
loans.
When you understand how your personal credit is waived
in all aspects of your life, you are well on the way to
gaining financial freedom.
One of the most common mistakes that a lot of people
make with regard to managing their finances is not
learning how to prioritize. I know - and I am sure you
know as well – a number of persons who have problems
with this. I am sure you will agree that it results in
frustration. When you do understand how to put
priorities to your finance, you are closer to achieving
a healthier personal credit and a less stressful life
“So how do I prioritize my finance?” you may ask. Well
you need to be very honest with yourself, and separate
your wants from your needs. After doing this the first
time, focus your attention on your needs, and subject
each to the same critique – do I really need this? Then
you go through your list of needs and place a value that
determines how important or how immediate a need it is.
“So what if my credit is poor, what does that mean?”
That means you will have problems accessing further loan
advances to meet those needs you identified earlier.
“That will explain why my last credit card application
was declined. How do I fix this?”
The first step in repairing this is of course
identifying that you in fact have it and more
importantly, why. It could be because of:
-
Poor repayment of previous loans and
credit
-
Bankruptcy
-
Identity theft and fraud
-
You have not clearly differentiated
between your wants and your needs, and you over
expend yourself.
An important tool in achieving good
financial health and in the early detection of problems
is your credit report. Much more will be said of this in
later sessions.
