Author: Philip Tirone

I want to ask you a question that could solve your financial, credit, and debt problems …
But first, a quick story …
One of my friends, Jocelyn, told me that she was in tears for two days.
A mom with Baby #2 on the way, Jocelyn had decided to let go of her nanny …
She told me she felt a little silly crying about it … compared to some people’s problems, letting go of the nanny is hardly a big problem.
But it was a big lifestyle-decision for Jocelyn and her family. You see, the nanny has cared for their daughter since she was four months old. And with Baby #2 on the way, Jocelyn’s family is going to need a nanny again in about four months.
But her daughter just started preschool, and her son isn’t due for about two more months. Once her son is born, Jocelyn won’t be working much during the first few months.
She figured she could save a boatload of money by letting go of the nanny…
But the decision made Jocelyn sob. She was going to have to hire another nanny once she went back to work.
Jocelyn couldn’t image leaving her new child alone with a stranger. The thought made her sick to her stomach.
Then Jocelyn’s sister said something smart:
“I don’t think this is an area where you should be frugal. If you want to save money, sell one of your cars. Think about it … at the end of your life, would you rather look back and say: I’m sure glad we had two cars? Or would you rather say: I’m sure glad we made sacrifices so that we could surround our children with people who love them?”

Jocelyn thought about it and realized she could make a ton of sacrifices elsewhere. She and her husband could plan their meals a little better and save about $200 a month in groceries. They figured a way to lower the amount they paid for car insurance. And they made a deal with the nanny that made financial sense for everyone involved.
They made it work.
So what does this have to do with credit?
A lot of credit problems are actually spending problems. People make rash, spur-of-the-moment choices that don’t reflect their truest desires. They buy the latest iPhone instead of paying a credit card bill. They buy a new pair of shoes instead of saving money for a vacation.
If you think you are someone who makes bad decisions when it comes to spending money, ask yourself the same question Jocelyn asked: “At the end of my life, would I rather have this or that?”
Ask this question before making any purchase or budgetary decision:
At the end of your life, would you rather look back and say: I’m sure glad I had the latest iPhone? Or would you rather say: I’m sure glad I pinched pennies and saved money so that I could take care of my debt problems, invest in my child’s future, and take relaxing vacations with my family?

Spending money is almost always a choice between one opportunity and another. Just make sure you are taking advantage of the right opportunity and putting your money where it matters!
Please share your thoughts with me below!!
– Philip Tirone

A low credit score is bad news, particularly if you are trying to renegotiate the terms of a loan, applying for a home loan, trying to land a job, or searching for an apartment. In today’s environment, you need a high credit score for a slew of reasons. So if you need to build your credit score, don’t worry. Here are three strategies to boost your low credit score, and fast!
1. Correct your credit limits. Almost half of Americans have a credit card with a limit that is incorrectly reported to the credit bureaus. Credit card companies often omit or misreport credit card limits to the credit-scoring bureaus.
This causes your utilization rate (your balance expressed as a percentage of your limit) to appear higher than it actually is. Imagine that pay your Visa balance down to $300. Because your limit is $1,000, your utilization rate is 30 percent, which is the maximum utilization rate the credit-scoring bureaus want you to have.
So your score should increase, right? Not so fast. If the credit card company is only reporting a $500 limit, you will appear to be carrying a 60 percent utilization rate. And this hurts your credit score.
Are you one of the many Americans suffering from this mistake? Find out by pulling your credit report from www.720FicoScore.com. If the credit card companies are inaccurately reporting any credit limit of yours, immediately begin the process of correcting this mistake by using the forms and worksheets necessary to correct this mistake.
2. Become an authorized user on a credit card owned by a family member or spouse. If you have fewer than five credit cards, becoming an authorized user on a family member’s credit card is one of the quickest ways to improve a credit score, so long as you choose an account with a clean credit history. Becoming an authorized user allows you to borrow the account holder’s clean credit history, which will cause your low credit score to quickly increase.
3. Find creative ways to lower your utilization rates. Your utilization rate is the balance you have on each individual credit card expressed as a percentage of the limit. If your limit is $4,000 and your balance is $2,000, your utilization rate is 50 percent. If your balance decreases to $1,000, your utilization rate drops to 25 percent.
The credit-scoring bureaus respond best to people with utilization rates below 30 percent. If you have a high utilization rate, your low credit score can start to improve by getting your utilization rate below 30 percent.
Obviously, you can lower your utilization rate by paying down your balance. You can also lower your utilization rate by transferring a portion of your credit card balances to credit cards with higher limits, or asking your credit card companies to increase your limits.
If you have fewer than five credit cards (the maximum number you should have), you could also open a new credit card that holds some of your debt. Keep in mind that opening a new credit card will cause your score to drop initially, but so long as you keep the balance below 30 percent and make timely payments, your score will start to improve in about six months.
And if you are married, be sure to read my article about how to build credit fast by transferring balances to your spouse’s credit cards.

Unless parents decide to make a concerted effort to begin teaching children about credit, our nation’s children might become victims of a system that is deceptive, manipulative, and cloaked in mystery.
Our banks, educational institutions, and government officials do not make information about credit easily accessible. They do not tell us that no credit is as bad as poor credit. They do not tell us that we might be unable to rent an apartment or secure a job if our credit scores are low. They do not tell us that we could pay thousands of extra dollars in interest if we have a mistake on our credit report.
Banks and educational institutions certainly do not think it is their responsibility to conquer the critical task of teaching children about credit.
Because of all of this, parents would be wise to start teaching children about credit when they are young. Otherwise, parents might be sending children into a world that measures reputation by a three-digit credit score without a wink of knowledge about handling credit responsibly.
Moreover, teaching children about credit, as well as how to manage credit, will help parents raise financially responsible adults, and it will open doors for children.
When I counsel people about how to build credit, they are always shocked when they first hear my method for teaching children about credit. Here it is, and you might think I’m crazy…
I think you should add your children as authorized users to one of your credit card account, so long as it is in good standing.
I know this makes me sound crazy, so let me explain.
By adding your children as authorized users to an existing credit card account, you will give your children the opportunity to “borrow” your good credit score, which means their credit scores will begin to increase.
At the same time, you can guard your credit by keeping credit cards away from your children. When you establish your children as authorized users, most credit card companies will send your children credit cards. You can request that the credit card company not issue a card to your children, or you can shred the credit card when it arrives. In this way, your children’s credit scores will benefit from the behavior on your account, and your credit will be protected.
Though I recommend that you add your children as authorized users before they turn 14 years old, you can add them at any age. After all, a two-year-old added as an authorized user will have 16 years of positive credit under his belt by the time he reaches adulthood.
The second part of teaching children about credit is to begin an educational platform whereby your children learn about interest rates, budgeting, savings, and credit scoring. Once your children begin demonstrating that they understand the value of money and are financially responsible, you might want to provide children with credit.
Start by establishing a Bank of Mom and Dad. If your son wants to buy something, lend him the money and create a weekly or monthly payment plan. Then insist on timely payments that include interest, just like a credit card company would do. If your child is late, assess a late payment fee as part of your strategy for teaching children about credit.
Once your child demonstrates continued financial responsibility, consider providing an actual credit card to your teenager. I suggest that you allow your child access to the card only long enough to hand it to a cashier, and only if you are present. This way, the child will not be able to memorize the credit card number, nor will he have prolonged access to your account.
As part of your strategy for teaching children about credit, make sure that your children pay interest and, if they exceed the prearranged limit or fail to make a payment by the due date, you should access an over-the-limit fine or late payment penalty. You should also insist that your children pay you instead of the credit card company. Because you are the primary cardholder, you can preserve your credit by making payments on the account regardless of whether your children are paying you.
When the credit card statements arrive, sit down with your children and explain the statements. Discuss your annual percentage rate, annual fees, late penalties, over-the-limit fines. Ask your children to verbalize their plans for paying their loans in a timely manner.
Expect your children to make mistakes, and help them create plans for correcting their mistakes. If they splurge and end up owing more than they can afford, perhaps they can do extra housework in exchange for an increased allowance. And, of course, teaching children about credit means that you call their cell phones—perhaps at 8 on a Saturday morning—to inquire about any late payments!