I can be overbearing to my family (luckily for you, we’re not related).
For example, once I traveled home to visit my sister and parents, and Lacey (my sister) said to me, “Phil, it’s no fun when you come home because you are way too intense.”
I said, “What do you mean?”
She responded, “Phil, you are always pushing us to be better, and although there is a good part to that, it drains us. For example, Mom called me last week and said, “Lacey, let’s all get on a diet and lose weight, Phil’s coming to town!”
Ha! Can you believe that?
That is when it hit me… I don’t love them in an unconditional way. My love is coming across as conditional and fabricated and it exhausts them.
So with Easter weekend here, there is a chance you may see your family, or if you celebrate Passover, you just did. I figured I would take this moment and take a break from talking about credit.
So here is what I’m challenging myself to do this weekend with my family:
I’m going to start with my wife and stop complaining about the parts of the relationship that I’m frustrated with. I’m going to love her exactly the way she is and trust that our relationship is exactly where it is suppose to be.
I’m going to acknowledge my kids for how far they have come and not how far I expect them to be.
I’m going to give up judging other family members about what they “should be doing” or “should have done.”
I’m going to enter every conversation looking for the 1% that I can agree with, instead of the 99% that I disagree with.
I’m going to look at those that I’m frustrated with in a compassionate way and realize they are doing the best they can do at this moment.
Does any of this resonate with you? Are you up for doing this too?
Share your stories and insights with me and be an inspiration for all of us.
Philip
Click here to read Part II of this blog.
Author: Natalie Sanchez
Your Bank’s #1 Lie: Your Credit Score Doesn’t Affect You
Do banks lie to their customers? Has your bank ever said your credit score will not affect you?
If your bank has ever said your credit score will not affect their financial relationship with you, do not believe them! Your credit score affects your all of your major financial purchases.
After conducting a private class on “How Credit Scores Affect You,” one of the participants, Lori P., sent me an email showing how banks lie to their customers.
“I am involved in an entrepreneurial program that helps people become business and home-loan ready, as well as get them ready for business start-up. Four of us in the program had attended a meeting with a founder of a bank here in Los Angeles that explained to us how to become loan-ready for his bank. He mentioned that all we needed was a 630 credit score along with other criteria.
I thought, ‘Wow, only 630? That seems easy.’
Then when I listened to your program, it made sense why we only needed a 630 – It would be money in the bank’s pocket.
-Lori P.”
After reading Lori’s email, I was livid! Her attempts to help people in her community take control of their financial future were hindered by a banker more interested in his financial bottom line than the customers he serves. That banker was thrilled to deal with customers with less than a 720 credit score because he could charge them higher fees. In my opinion, that is outrageous. How can hardworking Americans get back on their feet financially if banks are not disclosing how a customer’s credit score affects the fees they pay?
Do you believe your bank deliberately withholds information concerning your credit score and bank fees? This happens more often than you may think. If your bank does not tell you the relationship between your credit score and bank fees, you are paying higher fees than a person with a 720 or higher credit score.
There is an easy solution to eliminate all doubts of banks lying to you about the relationship between your credit score and bank fees. They can educate customers on the easy steps people can take to fix a bad credit score.
In most cases, instead of telling the truth about how credit scores affect you, banks across the country are letting their customers pay an arm and a leg in interest rates.
The banker Lori met with didn’t tell her that the difference between a 630 credit score and a 720 credit score was $63,720 over the course of a 30-year loan on a $216,000 mortgage. His bank would earn $63,720 in fees of Lori’s hard-earned money if she was approved for a home loan with a 630 credit.
That bank was deceiving customers with a 630 credit score to the tune of $63,720 over 30 years!
I wrote 7 Steps to a 720 Credit Score because I wanted to help my mortgage clients learn how to build credit and lower their interest payments. Then I decided to spread the word about how credit scores affect you. I went to bank after bank, telling them I would give them access to my book so their clients could learn how to raise their credit scores and negotiate lower interest rates.
Guess how many banks signed up? Not one.
Why would they do the right thing when they could pocket $63,720 or more?
This is so typical of what happens every day. While the “little guy” struggles to get his head above water, the government is busy bailing out big business because they are “too big to fail.” These very same businesses turn around and lie to their customers. This is flat-out unfair and wrong.
The 720 Redo
Step One to Raising Your Credit Score – Get Rid of Your Debt.
If you ever attend my Question and Answer sessions, (about how to raise your credit score), you know there is a common theme – debt, debt, and more debt.
How can someone with a lot of credit card debt raise their credit score? It’s the chicken and the egg conversation over and over.
Here’s the bottom line: Sometimes the best first step for you to take is either bankruptcy or debt negotiation.
So many of my clients are SO worried about their credit score that they don’t make a logical decision about the debt they have. When this happens, they end up paying the minimum payments on their credit cards, and never get what they ultimately want – Debt free OR a high credit score.
As I say over and over, the key to raising your credit score if you have debt is to learn your options.
Since I get so many requests for introductions, I’ve done the research on great referral partners for my clients.
If you have debt you cannot pay-off, click here and I’ll give you and introduction to a bankruptcy attorney and a debt negotiator.
If you have back taxes of $10,000, click here and I’ll introduce you to a tax resolution specialist.
If your credit is bad and you simply want to raise your credit score, click here and I’ll introduce you to a partner of ours that offers our credit improvement program.
If you have student loans, and you cannot keep up with the payments, click here and I’ll introduce you to a partner of ours.
Bottom line is this… if you are having a hard time with your debt, you need to take a look at all your options.
Once you gather all of this information, talk to me on one of my Question and Answer Sessions and together, we can figure out the next best steps to raise your credit score.
A favor, please…
If my credit program has impacted your life, you could please tell me how?
I have a dream of having 1,000 success stories on my web page, and I have a long way to go! So regardless of whether your story is one line long or ten paragraphs long, please let me know.
And if you feel uncomfortable giving your name, no need to!
Click here to be transferred to the page.
If you have had financial problems, you know how scary it is to have a low credit score. Sharing your success is going to inspire others to have hope in a bigger future. Thank you for sharing your story.
Thank you.
My wife is turning 40, and I’ve got something to say
My beautiful wife, Lily, is turning forty on Monday, and people keep asking her what it feels like.
“Are you freaking out?”
“Enjoy the last few days of your thirties! You’ll be over the hill soon.”
Lily simply laughs.
I say that she “simply” laughs, but if you have ever heard her laugh, you know that there’s nothing simple about it. Lily’s laugh turns heads. It is the kind of laugh that fills a room. It is nothing short of an exultation of the spirit .
It is a complex symphony of all the secrets of life.
That laugh envelops me. And even on the worst days—and with four kids ages six and under, you can bet that there are bad days—Lily shares that laugh with me.
Lily knows something that I want to know, that I strive to know. Lily knows how to celebrate life, and how to find delight—comprehensive delight—no matter what.
I’m an optimistic guy. I never give up, but I’m no match for Lily. We are blessed, but we also have experienced our share of grief and pain. And Lily is the one who pulls us out … every single time.
I’m telling you this because I want you to imagine that laugh the next time you are feeling financial strain. The next time you have that awful feeling in the gut of your stomach, close your eyes and take a deep breath. Then imagine being in a place of total peace. If only for a few moments, let yourself feel calm and tranquil.
You see, I don’t believe that people who are feeling anxiety and panic can make the best solutions. I think the best way to find a solution—a truly good solution—is to be in a place of peace. Only then do you have the clarity to analyze the different paths you can take.
It’s that simple.
Sincerely,
Philip Tirone
P.S. If you have a question about credit, finances, or budgeting, be sure to leave a comment below.
Making 2014 the best year of your life…
When I got back from Lifebook, I started thinking about you. You may be reading my emails because you want to know how to improve your credit score, and many of you are finding out that it is much easier than you thought!
But is that really what you want? Do you really want a high credit score, or is it what you think a high credit score will give you? I believe it’s what you think a high credit score will give you.
So, let’s finish up this year a little different… and let’s focus on all of us making 2014 the BEST year of our lives.
Want to play this game with me?
Here are some questions I have for you, please comment below:
1) On a scale of 1-10 (10 being high), does this message excite you? If you are reading this post (and yes, I can tell how many people read this) and you don’t comment, I’m going to assume that this message doesn’t excite you (which is fine). I’m just curious what percentages of the readers are into this topic.
2) Do you have anyone in your life that you could play this game with? Meaning, do you have a friend, family member, or co-worker that you could have a conversation with about making 2014 the best year of your life? I know some of you don’t, which is okay. If you do, find and identify them. Either way, let me know below.
3) Write down the three things you want in 2014 in each of the following categories (don’t feel you have to comment on this below, however, you are welcome to):
- Your Health and Fitness
- Your Financial Life (job, finance, savings)
- Your Love Relationship
- Your Social Life (which includes your family)
Look forward to reading your responses… depending on the response, we will have more exercises next week.
Sincerely,
Philip Tirone
P.S. “Are you excited about 2014?” These are powerful words. Ask them to your friends… and anyone who says yes would be a good partner for you on this journey.
P.P.S. The class I took, called Lifebook, can be found here. The class is expensive, however, if you want to take it, let me know and I’m sure I can get you a discount.
Preventing holiday hangovers
Just a quick reminder…
Don’t get carried away with your credit cards when shopping for holiday presents. Before the holidays are over, many consumers will charge an extra $600, $1,000, or $2,000 to their credit cards. Most shoppers don’t plan for this—it just happens. But by the time January rolls around, they have giant credit-card hangovers that leave them wondering how they can preserve their finances when they have migraine-size debt looming over them.
And remember: one of the keys to a high credit score is to keep a balance that is no higher than 30 percent of the limit. So not only will extra credit-card debt hurt your pocketbook, it will also hurt your credit score.
Keeping the right credit card balance is one of the most important things you can do this holiday season to protect your credit score. Here is my time-tested tip for avoiding the holiday credit hangover.
1. First, create a holiday spending budget.
I know a lot of parents who want to create lasting memories for their children, so they go overboard, buying tons of presents for their kids.
But think back to your own childhood. How many gifts are etched into your memory?
Probably not many. Your children will remember the time they spend with you more than the gifts they will receive.
And if you are racking up your credit card bills, you probably feel stress and anxiety, which will detract from the time you spend with your children.
So create a reasonable budget and determine how much you can afford to spend on each person on your list.
2. Leave the credit cards and debit cards at home.
I’m totally serious about this. If you don’t take credit cards or debit cards, you cannot overspend. It’s that simple. If you do take credit cards and debit cards, you can overspend and induce that hangover. So just leave them at home.
In fact, the more radical this idea sounds to you, the more important it is that you implement it.
Taking credit cards with you is just too tempting, even to the most disciplined shopper. The allure of “buy now, pay later” will allow you to make impulse purchases.
If you take only cash, on the other hand, you will limit your spending to the cash in hand. Those impulse purchases will be impossible.
3. Create “wallets.”
This is where my “envelope system” comes into play …
Before jumping in your car and hitting the local mall, pull out some plain white envelopes and write the name of each person you are going to purchase a present for on individual envelopes. (If you have eight people to buy presents for, you should have eight envelopes.)
Within each envelope, place the appropriate amount of cash you have budgeted for this person—no more and no less.
Each of these envelopes represents the wallet you have for each person on your list.
You might want to bring a little extra money for lunch, but be sure to leave your credit and debit cards at home.
When you purchase a present, use the money from the appropriate “wallet.”
This method will create a psychological barrier to impulse shopping. If you are tempted to splurge on a gift, you will be dissuaded when you consider whose wallet you will withdraw money from in order to cover the impulse shopping.
What do you think? Does this help you avoid the “holiday credit card hangover”? Leave a comment below and let me know.
Cheers!
Philip Tirone
P.S. And don’t forget to ignore the retail-store credit card offers this holiday season (and always!).
“Cash Only” Is Dead Wrong, by 720 Credit Score
Many so-called experts say that you should adopt a cash-only policy and ignore credit cards. But here’s the truth…
They are dead wrong.
Avoiding credit won’t make life easier. In fact, it will make life a heck of a lot harder. It also won’t make your credit score improve. In fact, it will make your credit score drop like a lead balloon.
If you adopt a cash-only policy, you’ll end up with no credit. And no credit is just as bad as poor credit. You see, the credit-scoring bureaus want to see that you can responsibly handle many different types of credit before they award you a good credit score. If you don’t accumulate a proven track record, you won’t get a good score.
Now, a lot of people who have been through a financial meltdown decide that the only way to turn their lives around is to stop using credit. But think of it like this: Let’s say you took a math test in school, and you failed. Your grade was an F, so you decided to stop taking math tests—to just wipe your hands clean of math tests.
Would your grade improve? Heck no. And your credit score won’t improve if stop using credit cards either. I always say that having no credit score is just as bad as having a poor credit score. They credit-scoring bureaus won’t have any information on which to judge you, so they will think: Better safe than sorry. And they will give you a low credit score.
This means
- You’ll have a hard time getting great insurance premium rates.
- You might be unable to find a job.
- Landlords might not want to rent to you.
And if you ever need a loan (and you probably will!), you will get lousy terms and pay an arm-and-a-leg in interest.
So they next time someone tells you to wipe your hands clean of credit, ignore them!
This doesn’t mean that you should get yourself into debt with your credit cards. It means you should use your credit cards wisely. Keep a low balance (less than 30 percent of the limit), and pay your bills on time every month.
And if you have any questions, be sure to leave a comment below.
Don’t make this mistake on Friday, by 720 Credit Score
Every year on Black Friday, a ton of consumers make a huge mistake that ends up hurting their credit scores and their bank accounts…
They sign up for retail store credit cards.
Excited to get that one-time discount that is usually offered with a brand new retail store credit card, shoppers ignore all of the ramifications. My advice? Don’t ever agree to a retail store credit card. You won’t save money in the long run, and you might hurt your credit score.
Let me explain…
Imagine that you doing some Christmas shopping, and you approach the cashier with a few sweaters for your sisters, clothes for your kids, and a belt for your husband. The total is about $157. The cashier immediately makes you an offer:
“Do you want to apply for a retail store credit card? You’ll save 15 percent on today’s purchases.”
No matter how tempting it is to save that $24, don’t say yes.
Think about it: The banks and the retail stores that promote these store-specific credit cards offer these promotional savings because they know they are going to recoup the discount … and then some.
Consider all the ways the banks and the retail stores can make money off you:
1) First, you will pay interest on whatever you buy on the day you open the card. Most retail store credit cards have a high interest rate—usually in the range of 20 to 30 percent. So unless you pay your balance in full right away, you are going to pay more than you saved.
2) Have you ever bought something just to take advantage of a coupon? A lot of people have. By signing up for that retail store credit card, you will be put on the store’s mailing list, and you will receive coupons that are just for cardholders. They are intended to entice you to the store.
3) In the future, you will be more likely to engage in a little “retail therapy” if you have store-specific credit cards in your wallet. Using credit cards is always easier than using cash; it’s also an easy way to get into debt.
4) If you are given a one-time offer to save on today’s purchase, you just might pile a few more items into your shopping card.
Suddenly, that $24 savings doesn’t seem worth it, does it?
Keep in mind, your credit score could also suffer if you use retail store credit cards. Here are three reasons…
1) Keeping these cards active can be tough. Credit-scoring bureaus want to know that you can responsibly manage your credit cards. If you let your credit cards go inactive, the bureaus have no idea whether you are able to manage balances and debt. In other words, inactive credit cards do nothing for your credit score.
But keeping a retail store credit card active can be tough. Are you going to buy a dishwasher from Sears each and every month just to keep your Sears card active? Are you sure you need a new pair of jeans from the Gap twelve times a year? Most likely, you will either keep the card active by making unnecessary purchases (which costs you money), or the card will go inactive. Either way, it’s bad news.
2) Let’s talk about the second reason I’m opposed to retail store credit cards: You might end up with too many credit cards. The credit-scoring bureaus are the happiest if you have the right number of credit cards (between three and five). If you do not have at least three credit cards, they don’t have the information they need to make a judgment about whether you are responsible. If you have more than five credit cards, they know that you are in danger of getting in over your head.
Three to five is the sweet spot. So if you are limited to just three to five credit cards, why waste one on a card that will only be accepted by one merchant? You cannot reserve a car using your Banana Republic card, but you can purchase a suit from Banana Republic using a Visa.
Too often, people apply for retail cards each time they are offered a discount. These people must also carry American Express, MasterCard, and Visas for everyday expenses, traveling, and business needs. And they quickly find themselves carrying a lot more than five cards.
3) Finally, let’s talk about the third reason a retail card could hurt your credit score: You will definitely add a credit inquiry to your score. Ten percent of your credit score is based on the number of credit inquiries you have on your credit report in the past year. If you apply for a retail store credit card, your score could drop a few points, and this could cost you a lot of money in interest on future loans and credit cards.
So come Black Friday when the holiday-shopping-season officially starts, be a savvy shopper and just say no to retail store credit cards.
I want to know how many times you were offered a store-specific credit card on Black Friday, so please let me know below!
FREE CREDIT EDUCATION
Boost Your Score To 720!
Over 200,000 people have rebuilt their credit with our proven strategies.
