Lynnette Khalfani-Cox - Perfect Credit: 7 Steps to a Great Credit Rating

PERFECT CREDIT
7Steps to a Great Credit Rating
Lynnette Khalfani-Cox

Published by Advantage World Press
P.O. Box 1307
Mountainside, NJ 07092
http://themoneycoach.net

Copyright 2010 by LynnetteKhalfani-Cox
All rights reserved

Smashwords Edition

ISBN 1-932450-98-X

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Acknowledgments

I owe a debt of gratitude to a number ofindividuals and institutions that have helped me learn theimportance of achieving and maintaining a great credit rating.First, a word of thanks to Hyundai Motor Credit Corporation, whichmore than 20 years ago repossessed my very first car. It was agolden brown 1987 Hyundai Excel that I drove while I was a collegestudent attending the University of California, Irvine. At the timeI thought that repossession was so very unfair, especiallyconsidering that Id only missed two (or was it three?) payments.In hindsight, though, I realize that Hyundai was preparing me tobecome more financially responsible and credit-worthy. So thankyou, Hyundai, for that traumatic experience that Ive neverforgotten. Ive become wiser because of it.

Thanks also to all the bill collectors thathave ever called me. A hearty shout out goes to Mr. Johnson, adebt collector who actually called me just a few months ago fromNational Action Financial Services. I havent had a debt collectorcall me in at least 15 years, but here was Mr. Johnson asking meto pay an alleged overdue credit-card billalso from more than 20years ago. He claimed that the account was opened in 1988 andclosed in 1989. You can read in Chapter 10 about how I quicklydispatched of poor Mr. Johnson. But just know that the sheerpleasure I took in reading this man the riot act, and theempowering feeling I got in knowing and asserting my legal rights,pretty much made up for all the other nasty bill collectors I oncehad to deal with.

Last but not least, many thanks to my family.I love you all, especially those relatives who have been so veryunderstanding when Ive had to say, No, Im sorry. I cant, whenthey asked me to co-sign for loans or do other things that mightjeopardize my credit rating. At this point in my life Ive come toofar and had too many credit battles to give up my Perfect Creditrating. Heres hoping you feel that way one day too.

Lynnette Khalfani-Cox,

The Money Coach

December 31, 2009

Foreword

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Introduction

I have a bold statement to make: Itspossible to have Perfect Credit even if youve been a less thanperfect person. Let me repeat that another way: You can have anoutstanding credit rating no matter what your past history. And Imnot just talking to those of you who have experienced a slip-uphere or there, such as paying your Visa card late once or twice.Im talking also to those of you who feel as though youve made acomplete mess of things. It doesnt matter whether you madeprevious mistakes out of ignorance (such as getting a ton of creditcards when you entered college), whether you knowingly did fiscallyfoolish things (such as co-signing a loan for an irresponsiblerelative when common sense told you he would default), or evenwhether your emotions drove you to make long-range financialblunders (such as buying things for a former flame). You too canhave an excellent credit rating.

To some the idea of having Perfect Creditmight sound like a pipe dream, especially if youve been throughyour share of drama. Maybe you divorced an ex-spouse who wastotally reckless, ran up all the bills, and dragged down yourcredit in the process. Or perhaps your mantra has been, Look goodnow and worry about paying later. Well, later has come. And nowthose excessive shopping sprees, along with that stack of overduecredit-card statements stuffed in your drawer, mean the billcollectors have your number on speed-dial. And they arent shyabout calling eitherat all hours of the day and night. everysingle day.

Perfect Credit in an Imperfect World

If your credit is downright awful, you mightbe thinking: Id settle for just having decent or good credit.But perfect credit? Yeah, right! But, believe me; I picked thistitle Perfect Credit for a reason. The book really couldve beencalled Perfect Credit in an Imperfect World becauselets behonestwere all imperfect people, and were certainly living inless than perfect economic times. Foreclosures abound. Credit-carddelinquencies are up. Gas, food, and healthcare costs are allskyrocketing. Throw in a personal setback such as getting divorced,laid off from a job, or sick to the point where you cant work, andits easy to see why the average person might have a blemish or two(or more!) marring her credit file. But just because youve mademistakes doesnt mean your credit is shot for life. For better orworse, you are judged in many ways by your credit. But lets notforget that even Jesus himself admonished us not to judge tooharshly those who have been less than perfect (i.e., all of us)when he said, Let he who is without sin cast the first stone(John 8:7).

Why Everyone Should Strive for PerfectCredit

Which takes me back to striving forperfection when it comes to your credit. If you have negative marksin your credit history, I dont have to tell you what a pain it isto live with bad credit. You get turned down for credit cards andloans; you pay sky-high interest rates when you do get approved; oryou have to go (hat in hand) asking family or friends to co-signfor you or loan you money. The list of indignities you suffer withpoor credit goes on and on.

Lately, amid the ongoing credit crunch, evenpeople with good credit histories and respectable credit scoresare having a tough time. Banks have imposed new fees, raisedinterest rates, slashed credit lines, and even closed accounts ofcustomers with so-called good credit. Which is why, even if youhave a fair-to-good credit rating, you need to learn how to achievePerfect Credit.

Do you plan on doing any of the followingthings in the next two months to two years?

Buying a house or renting an apartment

Refinancing a mortgage or getting a homeequity loan/line of credit

Purchasing a car

Getting a student loan

Applying for a new credit card/switchingcredit cards

Co-signing a loan for someone else

Seeking a small business loan

Obtaining a new job or seeking a promotionin your current job

If so, please realize that all of these goalshave one thing in common: They all require you to have greatcredit! So if you, or someone you know, have an immediate ornear-term need for credit or a loan, youll greatly improve yourodds of getting approval, and the best rates and terms, if youfollow the advice I outline in this book.

Perfect Credit is also a must-read for peoplewho want to

establish credit