I am not a financial expert!

As a real estate sales agent, I find myself having the same conversations with friends, customers, and clients from different social economic backgrounds. That conversation is about the F word. No not that F word- FEAR. Fear of finances!

Financial fear will stop otherwise brave, smart, and capable individuals from taking the necessary actions to improve their financial wellbeing. The proverbial ostrich approach has kept plenty of people in the dark with that gut-wrenching feeling of despair.

Personally, it was not until I got tired of that feeling that I started my financial education journey. I read articles from government websites that answered the questions I was too afraid to ask. Read personal finance books, listen to podcast, and watched business networks such as CNBC. Each was a tool to better my understanding of money and finance. I was determined to turned my biggest weakness and shame into a strength.

Great Starting Point

• FICO
• Vantage Score
• Credit Report
• The Richest Man in Babylon by George S. Clason

1- FICO: is Fair, Isaac, Corporation. The formulate that Bill Fair and Earl Isaac Corporation ('89)
it is the original form of determining creditworthiness for loans & credit. The scores range from 300-830 the higher the better.
Newest version is called FICO Next Generation or NextGen Score and this score goes up to 950.

2-Vantage Score: All three of the credit bureaus teamed up ('06) to create their own scoring system. Similar to FICO it too ranges from 300-830 but uses different formula.

3-Credit Report: Equifax, Experian, & TransUnion are the three bureaus that record and provide credit report. The information on each is different because not all creditors/collectors report to each bureau.
The official FICO score you get from free score sites can be deceptive because it is not the same version that Conventional/FHA lenders use.
Depending on what you are applying for will determine the version used to determine your creditworthiness. Checking your personal credit report is a great ways to monitor for identity fraud and see your general credit information.

For Example:

Equifax credit bureau: FICO Version 5 (also called Equifax Beacon 5.0)
Experian credit bureau: FICO Version 2 (also called Experian/Fair Isaac Risk Model V2SM)
TransUnion credit bureau: FICO Version 4 (also called TransUnion FICO Risk Score, Classic 04

Special Note:
Credit Lender/Collection agencies do NOT always report all information to all three bureaus. This is why when you check your credit scores most of the time they are all different.

Sample A {duplicate}

The 680 score is used

Sample B {medium}

The 700 score is used

4- The Richest Man in Babylon by Geroge S. Clason is an older book but has been helpful for me and my savings and investing goals. Books can be a useful tool and I highly recommend you read more on the basics of finance. FYI, beware of get rich self help books. If it is too easy or quick it is usually a scam...shortcuts are a red flag!

For financial advice seek professional licensed financial expert, and/or credit repair counselor.

Here is a list from my FICO.com of basic things you can do to bust your personal credit score

• Dispute Errors on your credit report
• Pay Bills on time
• Keep revolving balance low (30%)
• Do not open new lines of credit
• Negotiate debts (See your state laws of debt forgiveness)
• Educate yourself as a CONSUMER Laws

Take one step at a time, one day at a time, but get started.

Thank you for taking the time to read this blog and hope that 2019 is the year you start your financial health journey.
Some helpful links below:

Podcast:
Her Money (Shery Lynch)

Books:
George S. Clason, Dave Ramsey, Suze Orman, Brian Buffini

Magazines:
Forbes.com

https://www.myfico.com/credit-education/improve-your-credit-score

https://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf