Be Your Own Baller – Building, Repairing, and Maintaining Credit

It’s always nice to snag a baller and find someone who can support, protect and love you. But before you can even get to that step, you must be able to provide for yourself. You attract what you are. As much as we see “these hoes winning,” it is always nice to be self sufficient. Hoes win because often times, their baller is their only source of income. So these women put up with things to keep their income that a self sufficient woman would never think twice about.

To be self sufficient, there are many things you can do. This week, we will cover how to build, repair, or maintain your credit.

1. “No Credit” is just as bad as “Bad Credit”

If you have no credit, then congratulations for not owing anybody. But if you ever want to borrow, you need credit lines established. Lenders need to know that you will pay them back when you do borrow.

2. Ways to establish credit

– Get a credit card! It may be hard to get a credit card initially if you don’t have credit. But most times, you can get a card with a smaller limit. One company you can’t lose with is Discover. If you can’t get a card with them, I don’t know what to tell you. Just kidding. (See next step)

– Get a secured credit card. This works just like a credit card, except you set the limit because it’s your own money. Save up $500, $1000, or whatever amount you would like and go get a secured card. Make sure that the card reports to all 3 credit bureaus, as does a traditional credit card. If it doesn’t, it may as well be a “Rush Card.” The point in having it report to the bureaus is for them to see the history. Make sure to speak with your bank or provider about the details.

– School, Auto, and Home Loans. When it comes to school, it’s always a blessing to not need a loan. If you can get through school without them, then just avoid this option altogether. Seriously! You do not need Sallie Mae in your life. She is out here being a shady bit*h and snatching people’s wigs’, daily! But I digress. If you do need school loans, it is a good option in the sense that they individually report to your credit. While you are in school, they show up as “paid” on your report. They don’t change until it is time for you to pay them back. This helps balance out what you do owe on your report.

– Auto Loans and home loans are good as well because they show different lines of credit. These aren’t like school loans though. These show similar to credit cards, where you have a monthly report. It is important to keep up with the payments so they don’t report as late or delinquent.

3. Credit Cards

Lets revisit credit cards for a moment. When you are dealing with credit cards, there are alot of things to consider.

– For one, you want a card that benefits you. You don’t need a credit card for every single place you shop. Try getting a popular credit card or one associated with your bank. This way, you can use your card on whatever and wherever.

– If you do opt for more than one card, get one as suggested above. Get another at a place you most frequently shop at. If you are always up in Victoria’s Secret, get an Angel Card. If you can’t get enough of Targèt, get a card with them. If you travel with Delta frequently, get their credit card and rack up on some flyer miles. You get the drift. Again, the card should be beneficial. Most cards like this provide you with perks that regular customers don’t get. If you shop there anyway, it would behoove you to bask in the additional savings.

– Your credit limit is NOT your limit. So, let’s say you got approved for a credit limit of $2,500. Yes, gawd! Yous’ be a rich bit*h now. NOT! Girl, that is not your limit. When you max out your card, or even worse, go over the limit, you are telling your lender that you need that money. I know what you’re thinking, “Well duh, I need that money or I wouldn’t have applied for the card.” But these lendors really take how much you spend into consideration. They want to see you spend less because it shows you have a greater chance of paying it back. The point of credit is to use it temporarily. Buy things you can pay off in a few payments. Don’t buy something in February that is going to take you until November to pay off. You want to use no more than 40% of your limit. Ideally it’s better to use 20% – 30%.

– Pay ON TIME! I don’t care if your monthly payment is $15 or $500. Pay. It. On. Time. Once you become late, that reports to your credit and it stays there for a while. So make sure you can afford your payments.

– Purchase things on your credit card and pay them off. Sometimes, you may have the money to get whatever item you desire without even needing your credit card. But to continue to build credit, go ahead and put it on your credit card. When you get the bill, pay half. Then pay the rest next bill. Credit cards can be tricky. Sometimes, it’s a game with them. If you pay things off too fast, it won’t help your credit. It won’t hurt your credit, but it won’t send your credit sky high either. You want to show that you use it. So let it cycle through.

– Check the APR of your credit cards and other terms. Some cards have annual fees. Some also charge you even if you haven’t used it in a while. APR is an important factor as well. You don’t want a high APR because the longer you owe, the more you will have to pay back. You may spend $1,000 and after a while of not paying, it may turn into $2,200. It’s very important to check that! Read all fine print!

– If you follow these steps with your credit card, you will be offered higher limits. Credit card applications coming in the mail is a good sign. Don’t get excited and apply for all of them. Just continue doing what you are doing.

4. Everything does not report to your credit report

Contrary to popular belief, MOST things don’t report to your credit report. So if you are paying your rent, phone bill, electricity, and cable on time, then good for you. That’s what you’re supposed to do. But if you don’t pay it or it goes into collections, THEN it will show on your report. So make sure you continue paying things on time.

5. Stop applying for sh!t!

– When you apply for things that need credit or for things like phone bills that check your credit, they place an inquiry on your credit report. Having too many inquiries will scare lenders away. So apply for things sparingly or only when you need them. Things like car or home (and apartment) loan inquiries will report. Don’t worry so much about these as these are “soft inquiries.” But if possible, only allow places you are most interested in, to check your credit.

6. Rebuilding your credit

Ok, this may be a long haul so prepare:

– Get a copy of your credit report. This step is important REGARDLESS of what your intent with your credit is. It gives you your score and a detailed list of all accounts on your report. It lists your loans and credit cards and your history of paying. It lists all inquiries made against your credit, it lists delinquicies, and all other pertinent information. You legally can get a free report annually. It’s important to do so. Most “.com” sites that offer credit reports charge you, despite what they sing in their jingle. AnnualCreditReport.com, however, is a great resource. It is listed on USA.gov, so it is legitimate. They use TransUnion, Experian, and Equifax reports. Use your descretion to decipher which one you like best.

– Once you have your report, analyze it.

– What do you owe? Pay it off. Has it gone to a collection agency? Barter with them. You may owe AT&T $900. Tell the collection agency you can pay $450 to close the account. It’s all negotiable, they just want their commission. If cutting the price isn’t an option, then set up a payment arrangement. But just like your other bills, pay it on time. Once you miss a payment, it’s back on your report. Once it’s paid off, that account comes off your report, and you gain points back on your credit score.

– Something on your report that doesn’t look right? Call the company and dispute it. If this is the case, you may have a fraud or identity theft issue on your hands. It’s important to inquire about this.

– Your report shows the dates to every account. Inquiries fall off after two years. Write these dates in your calendar. Your score goes up a little once each one falls off. Other things fall off after a while as well. Late payments, things that are unpaid completely, etc. I’m not sure of that timing, but do your due diligence. You still don’t want those things to sit because you never know when you will need credit.

– The biggest thing about rebuilding credit is, again, to find out what you owe and pay it off. Once you pay off an account and it closes, you will be surprised how fast your credit goes up. Use the steps on how to build credit to help you. After a while, the advice is the same for everyone.

7. How to maintain your credit

– First and foremost, follow all of the steps above.

– Continue to check your credit. Don’t just check it once then be done with it. I use apps like Credit Karma and Credit Sesame. They update me when any changes are made. My score differs between the two but thats normal, as long as they are still within the same range.

– Continue to pay all bills on time

8. People with no credit, act like credit isn’t every thing

– Honestly, in the grand scheme of things, it’s not everything. If you use cash and have the money, you’ll never need credit. Credit is just a tool to use for people who need it. Don’t get to caught up on it. I’ve been approved for things I didn’t think I would. I’ve been denied for things I thought would be easy to get. It all depends on the situation. Most ballers don’t have credit, or if they do have it, don’t care about it. Why? They write checks and spend cash. They don’t NEED the credit. So again, it really isn’t everything.

So, this may be overwhelming and sound like alot but it’s really not. Following these tips will have your credit start to soar.