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Paul Yamilkoski

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Credit Is A Tool

Simple Is Not Always Easy

But using the right tool the right way can sure make it seem that way. Credit is no different.

Many of you may have heard a rumor that there are going to be some changes to the scoring algorithm that lenders use to approve us for credit.
It has a lot of people excited, both in a good way and a bad way.
A new system has the potential for more people to be able to get financing that otherwise would have been excluded, because their files have little or nothing in them to create a score. This makes those who are in that group happy, and has others worried.
Those that are worried are concerned about a number of possible issues including; adding risk by relaxing lending and scoring standards, opening up a whole new area that we need to monitor for errors, invasion of privacy, and the potential for landlords to use reporting of rent to hold renters hostage, so to speak.
I see merit to the views and concerns from both sides, and will say that I think it should be unnecessary.
Why do I say such a thing and utterly avoid the multitude of possible discussions and debates that are ripe for the picking here? Well, I will reserve the right to visit those later. I will say one thing though.
Credit is a tool. It should be looked at as nothing more than that. If you look at it this way, the rest of the worries and concerns don’t really matter.
Using a tool properly takes discipline. Ask anyone who has used a butter knife as a screwdriver because it was more convenient than trying to find the screwdriver itself.          images.jpeg
But just as using the screwdriver will be much easier, and less time consuming, if you have it handy, so is our credit. Credit is simple. It is not always convenient or easy, but it is simple.
We can avoid the majority of the issues about availability, fairness, discrimination, disenfranchising, and so on, surrounding credit scoring and solve the problem for ourselves, by getting the proper tool and using it properly.
So what is the plan, if credit is so simple?
Well, credit is simple. But I remind you that I do not pretend to think it is easy. I know from personal experience that it can be extremely challenging. Life happens. And when life happens, our credit commonly takes a beating, if we are not sufficiently prepared.
One of the first steps to the plan is to get away from the idea that a credit card is for spending money we don’t yet have, and that carrying anything but small balances is a good thing. Next, decide that it is important to have a budget that includes an emergency fund and actually follow it. Those two things can put us in a position to make our credit what we want it, instead of it telling a story about us we don’t want told.
When a tool is used correctly, there is no reference to the kind of person is using it, their racial, social, political or economic characteristics, or what is going on in their world. It is just clear that this person knows how to use the tool and uses it well. That is basically what it takes to have good credit. Credit is that simple. 

If you need help with your credit and making it simple, or if you have credit problems that you need help getting corrected and cleaned up, then give me a call or email me for a free consultation. We at Heartland Credit Restoration have helped thousands of people, just like you, to get things corrected, restored and their credit loan ready. 

I encourage you to share this with your social networks. Also, please let me know if you have questions or comments and I hope you have a wonderfully blessed day!

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