One of the most important things you can do for your personal finances is to understand your credit and how it works. In my opinion, Credit Karma is one of the best Web sites available for this purpose. It is free, and you get access to your TransUnion credit score for free. Credit Karma has a number of features aimed at helping you better analyze your credit, and understand where you are at. The latest feature is the Credit Report Card. Kenneth Lin, CEO of Credit Karma, sent me this information in an email about the new feature:

With this service, consumers will be able to see how much their scores could change and what they would need to do to optimize it. In essence, the service takes the user’s 10-12 page credit report and compiles a simple to understand report that directly correlates to the credit score with prescriptive recommendations.

The report card uses letter grades to help you easily see how you are doing in different areas that affect your credit score. Here is a sample Credit Report Card that Lin shared with me:

You can see that it is very straightforward and easy to read. Explanations about each aspect of your credit score are provided, and you can get an idea of how you stack up in comparison with others who use Credit Karma. Since the Credit Report Card uses information from your credit report, you will have to provide permission for the service to access your report. And, in order to get the full benefits, you will have to register (it’s free) with Credit Karma. Overall, though, it is worth the trouble to do so. Credit Karma is an excellent personal finance resource that can help you keep on top of your credit.

One of the most common things you probably hear when you shop at a department store is this “Would you like to save 10% today?” And, of course, if you sign up for a store credit card , you get that promised discount. When you are spending a great deal of money, it is understandable that saving 10% might be desirable. However, in many cases, getting a department store credit card is asking for trouble. Here are some of downsides to getting a department store credit card:

• High interest rate : You will probably have to pay a higher rate of interest on balances that you carry.
• Credit score : While having more available credit can be helpful, it is worth noting that a department store credit card is not weighted the same way as a card from one of the big banks.
• Lack of rewards programs : Beyond your initial discount, you are unlikely to receive any sort of rewards for using a department store credit card.

If you do feel that you are making a large enough purchase that the discount is desirable and worth the ding your credit score will take when you apply, make sure that you pay off the balance as soon as possible. Do not wait for it to start earning interest. Even if you are getting a discount, the basic rules of responsible credit card use apply. And rule #1 is: Don’t buy something with a credit card that you don’t already have the money for .

image source: Paul Vlaar via Wikimedia Commons

I enjoy the commercials done by freecreditreport.com, even though I would never consider actually using the service. To get your “free” credit report, you have to sign up for a monthly service. Instead, I recommend annualcreditreport.com for a truly free report once a year from each of the three major credit bureaus. You should check your credit report regularly, and I don’t mind paying $34.95 a couple times a year for a three-in-one credit report after I’ve used up my free reports.

Anyway, enjoy your Sunday, the remainder of this three-day weekend, and getting ready for a shortened week!

Nothing so cements and holds together all the parts of a society as faith or credit, which can never be kept up unless men are under some force or necessity of honestly paying what they owe to one another. - Cicero

Small business owners need to remember the basics in these difficult times:

Image: sxc.hu

1.  Don’t borrow more than you need.

2.  And pay back what you borrow.

3. Don’t spend all the money.

4. Save some for a rainy day.

5. Give some to others.

6. And remember money isn’t everything.  You have never seen a Brinks truck following a hearse.

Business credit has become a very important part of how business owners manage their business finances in the current state of the economy. As business owners look for creative ways to fund their business, many have turned to the option of using credit.

Image: www.sxc.hu

One thing that a business owner need to keep in mind is that business credit must be treated just like personal credit. It should be guarded and used wisely when managing finances. According to Dun and Brandstreet the following are ways that establishing your business credit can help your business:

Credit card companies are notorious for raising limits, which can be dangerous for consumers trying to pay down debts. These days, though, the poor economy is scaring some credit card companies into cutting limits, according to a report by Smart Money.

That wouldn’t be such a big deal, but companies aren’t legally required to immediately notify cardholders of the change. Worse yet, some companies are cutting limits below the amount of debt people have on the card, which is not currently against the law. A new law that states that cardholders must be given 45 days before penalties are triggered won’t go into effect until 2o1o, so cardholders could face thousands of dollars that they need to pay off immediately. Even 45 days isn’t a very long time, when you take into account that some people are facing $10,000 or more in limit slashes.

Congress is currently looking into these kinds of credit card issues, and hopefully new laws will be put into effect so that consumers are better protected and have options. Most companies aren’t cutting limits below people’s balances, but many are cutting to within $100 of their current debt. Consumers need to be aware that this is happening, and check their limits and balances regularly.

Image via SqueakyMarmot.

Proof that bankers ought not be musicians too.

Wasn’t this a Schoolhouse Rock episode?

Kidding aside, I agree that using a debit card is one of the best ways to keep your spending in check. Or, if you have a sprinkling of self-discipline, it’s even better to use a credit card that offers rewards, but keep track of your charges as if you’re using a debit card.
Subtract each purchase from your running balance throughout the month and when the bill comes, pay it in full. It’s the best of both worlds.

A Pittsburgh bank is teaching women that hard work and careful planning, not too good to be true mortgages, are the true path to home ownership. If owning a home is truly still at the core of our American dream, then we ought to be teaching this curriculum at every school in the country.

Hard work for a good life. That may seem obvious to some, but our current financial crisis proves that we have lost some of our work ethic. We have become a nation in debt and whether or not we can pay back what we’ve borrowed doesn’t seem to enter our decision making.

Dollar Bank’s “Mortgages for Mothers” Workshop teaches women heads of household about the various mortgage loan programs. Participants learn the importance and power of credit and have the opportunity to review their credit reports with a professional.

Mona Generett, VP for Community Development says there are no shortcuts.

“For the past ten years, we have been holding these free workshops to teach would-be borrowers the right way to reach home ownership. At our workshop, we explain to potential borrowers the complexities of the mortgage process and help them design a plan to buy a house within their means and to obtain a mortgage that they can afford.”

At the workshop, new homeowners inspire the attendees with success stories about overcoming their own credit problems to realize dreams of home ownership. If you’re in the Pittsburgh area you can attend the next “Mortgages for Mothers” home buying workshop this Saturday, March 7, 2009, starting at 9:00 a.m. at the Sheraton Station Square on Pittsburgh’s Southside. Call 1-800-345-DOLLAR or visit www.dollarbank.com for more details.

Image Credit: rezlab, Flickr

I love small business owners! Despite the awful economic news of the last few months, and the beating they took over the worst holiday season in many years, they believe the economy has bottomed out and is on the way up.

The source of this news? An American Express OPEN-sponsored poll of small business owners. Here are the changes in attitude by small business owners that they found from last August and October to January:

The negative trends seem to be reversing in several key areas:
Fewer businesses have been affected by the tightening of credit (50% in August 08, 63% in October 08 and 56% in January 09)

Fewer businesses are accepting lower profit margins (56% in August 08, 58% in October 08 and 46% in January 09)

Fewer business owners are stressed out over the state of the economy (55% in February 08, 71% in August 08 and 66% in January 09)ss

But some of the negatives remain:
It is taking longer for small business owners to get paid (27% in February 08 versus 36% in January 09), and Small business owners are more averse to risk now than they were twelve to 18 months ago (75% indicated this was true)

And,
Two-thirds of small business owners (68%) agree with the statement, “The independence and control I was seeking when I started my own business is threatened by economic forces out of my control”

Small business owners remain optimistic and want to stay the course:
Four in five small business owners agree with the statement, “Even in these turbulent economic times, the rewards and opportunities of running my own business outweigh the risks and challenges”

See why I love small business owners? They are literally the backbone of our economic progress.

Image source: StockXpert

(www.thegoldenpencil.com)

Hi Anne,
I wonder how you demonstrate that you can write well, when everything you write is “authored” by someone else?

I am updating my resume after a year of ghost-writing for a medical communications company, but I can’t figure out how I can showcase my work without stepping on the “author’s” toes. Any advice would be greatly appreciated.

Thanks!
MW

Hello MW,

It can be a puzzle can’t it? A couple of things come to mind.

First, how did you demonstrate to this client that you could write? Sounds like you might have some credits you can claim before you started ghosting.

Next, I ask some of my ghostwriting clients if I can use the writing I’ve done for them as samples. I promise not to use their name and not to post or otherwise make public the fact that I did the writing, not them. I assure them I’ll use only enough of the work to demonstrate I can write well and that I will inform the prospective client that what I’m showing them is confidential.

Most of my clients agree; if they don’t, I ask them if I can use them as a reference without stating what I’ve done for them.

Prospective clients understand and appreciate your attention to confidentiality.

Finally, you might consider starting a blog or doing an article or two or three online that you can point to.

It might also help to take a look at an article I wrote called No Clips? No Problem!. Although aimed at beginners, which you’re not, it might spark an idea or a memory that could lead to other items you can use to verify your abilities.

Good luck. Let us know how you work this out.

Do you have a question about freelance writing? Ask Anne, The Writing Pro - that’s me ;) Ask in the comments or send an email and put Q&A in the subject line so I can sort it out from spam and I’ll do my best. Meanwhile, you’ll find some Q&A’s here:

http://www.bizzia.com/category/ask-anne-the-pro-writer/

Write well and often,

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Image from http://www.sxc.hu