I have been in contact and working with a prospective client for well over a year while he and his wife were tackling some credit issues. This couple took it upon themselves to gear-up their home search once again and have actually found a property they are interested in purchasing. After being in the works for so long a time, I obviously had to run an updated credit report to start the purchase process again.
To my surprise ... because I had been assured that the correct measures were being taken to improve scores ... the new credit scores came in lower. A monthly mortgage payment had been made late once ... along with some other more minor payments ... and their credit numbers had taken a dive. The lower credit scores are now such that they are, once again, in jeopardy of not getting financing for a home they want.
Critical points were made during the many conversations we held concerning the need for timely payments. Educational materials were passed on. Calls were made, mail and emails sent. Hands pretty much held. It's not as though they didn't hear what it was going to take on their part to increase their credit scor
es.
Where could there have been any misunderstanding about the importance of these issues? What could possibly make them think that ... having approached their credit much the same as before ... that they would now at this time be able to reap a different result from the last?
Ironically, the very evening I ran the updated credit report for this couple, I read an article on "Yahoo - Personal Finance News" that made complete and utter sense to me regarding how so many find themselves incurring problems revolving around personal credit, financial responsibility, and credit scores. It also clearly outlines how to address this issue with the next generation so they don't face the same problems with their finances.
The article was named "The 15 Money Rules Kids Should Learn" and was provided to Yahoo by Jeff D. Opdyke of the Wall Street Journal. The crux of the message contained within this article was that kids need to be taught good financial lessons and habits at a very early age and before they start feeling the financial peer pressures of other children, TV, and more. By the time a child reaches their teens years, a parent has lost much of their ability to persuade their child from poor decisions. They may have also seen and learned poor financial decisions from too many adults surrounding them.
The point is made, that if we are to have adults that have the ability to make sound financial judgments regarding their personal finances ... we have to guide and teach our childr
en how to navigate themselves down the correct financial paths from the earliest of ages. Starting these lessons while young is important. Later in their lives they are then less likely to find themselves in the position that my clients face once again.
I am including the link to the mentioned Wall Street/Yahoo article here, so all can see the 15 steps suggested by the author of this well-written article. I hope it proves educational and useful to all and that it is printed and used within many homes with young children.
The link to the article is: http://bit.ly/cie2jQ
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
