|
|
Founders of the Money Mastery® Program Educate the Public on How Credit Scores Affect Finances
March 26, 2010
In an economy where obtaining credit is becoming more and more complex, the founders of the Money Mastery® literacy program of personal financial management have begun educating the public about how credit scoring really works:
"Several years ago, credit agencies were altering the information they received from credit bureaus for a small fee," says Money Mastery program co-founder, Peter Jeppson. "When a creditor reported information, a credit agency could delete some of the information if the client supplied reasonable evidence that the information being reported was incorrect. This ability to delete information began to be abused and as a result, clients whose reports had been altered were found to lack the ability to pay their debt and default occurred."
To gain control and regulate credit reports, a separate, non-biased, third-party corporation was engaged to create a “credit score” based on a formula that connot be altered, Peter explains. "Today, all lending institutions have come to rely on this score rather than trust the information contained in a consumer’s credit report alone."
Utilizing their MyMoneyPlan subscriber-based online community, Jeppson and his co-founding partner, Alan Williams, are teaching their clients a comprehensive program of credit repair and credit management. Users can log on and get tips for how to dispute bad credit on a report, learn how high their credit scores need to be in order to obtain loans, and how debt elimination really works.
"As a rule, you should check your credit score twice each year," says Peter. "But be aware that anytime you or any other party checks your credit report, it will drop your score by about 10 points unless you pull the information through a firm that has permission to check a credit report for educational purposes. When reviewing your report, verify its accuracy. Any errors or misinformation will need to be corrected quickly to protect your credit."
Getting onto www.mymoneyplan.net for credit counseling would have helped the Stewart* family of Phoenix. They had inherited some land that was being used to construct a housing subdivision. When the Stewarts switched the property titles to their name, they were not informed that the property tax on the land had not been paid for two years. Even though the Stewarts paid the back taxes, they failed to check their credit rating until they began the process of refinancing their home at a lower interest rate. To their shock, the tax liens showed up on their report and kept them from securing a lower rate for their mortgage. It took them a year to get the county government to correct the problem with the credit reporting bureaus.
If the Stewarts had been able to secure the lower interest rate of 7 percent they were negotiating, it would have saved them $69 a month for 30 years. Paying even that much more a month will cost the Stewarts $24,000 on their home mortgage.
*Names changed to protect privacy.
About Money Mastery®
Money Mastery is a time-proven personal financial literacy and coaching program created by the owners and founders of Time & Money, LLC, Peter Jeppson and Alan Williams. The Money Mastery program teaches 10 proven financial principles that help people gain control of their spending, get out of all debt, minimize taxes and plan for retirement. Money Mastery helps clients create wealth on any income. For more information visit MoneyMastery.com.
