Category Archives: Credit

Beware The Financial Industry

Creditors prey on low-income earners with high interest rates and steep late payment penalties.

Pay-day loan companies are legally allowed to charge interest rates of 546% per year.

Investment companies churn through applicants looking for “salesmen to become financial consultants.”

The credit score companies, Transunion and Equifax charge a fee to disclose your own credit score!

Financial advisors and consultants charge between $250-$500 per hour or package rates of up to $3000-$5000 per client to manage their investments for them.

The industry isn’t interested in helping anyone. They hide their fees in confusing numbers and push their “products” like used cars. The industry is designed to bleed the unwary customer dry.

We have a different philosophy:

  • we market education and life skills
  • services tailored to the individual
  • flexible and accessible
  • realistic fees
  • no sales culture

We teach the best way to manage money and live free of financial predators.


 

What is “Good Credit?”

Good credit is any form of credit that has no annual fee and less than 20% interest per annum.

Better credit is any form of credit has no annual fee and is below 10% interest.

The best credit you can get from a AAA lender is 1 or 2 percent above prime and is usually a secured line of credit, meaning that they have access to or control of a matching asset.

Some credit cards offer cash-back rewards or points systems like Air Miles. They can be an excellent tool for gaining additional value, if used appropriately. IE: never carry a monthly balance! Always pay your credit card off before the end of the grace period.

My cash back card generates about $150 in rewards every year. To put that in perspective, that’s the same amount of money I would have received from my 1.40% savings account if I had about $12,000 invested for a whole year.

Some credit cards offer promotional rates. For 1% or 2% of the balance up front, you can borrow from your credit card at interest rates as low as 0% for a limited time (usually 6-10 months). As far as credit goes, that’s a great deal. Just don’t get caught with a balance when time runs out!