Did you know that one of the keys to establishing a good foundation for financial success is knowing and understanding your buying power. Knowing your buying power helps you understand your negotiation power. Your buying power is substantiated by your ability to know and understand your credit and how it impacts you. This information is essential to every major life impacting event or purchase, such as renting or buying a house, buying a car, and in some cases, obtaining that dream job.
- Know your credit score
When was the last time you checked your credit score? There are several online sites that allow you to check your credit score for FREE. There is one particular online site that allows you to check your credit score for free, and view your credit report with two major credit reporting Bureau. This site is Creditkarma.com. Creditkarma.com allows you to sign up for an account without the requirement of providing your credit card information.
- Work with your local financial institutions
It is a good idea to develop working relationships with local banks or credit unions. The status of your credit also affects your relationships with these financial institutions. Some banks or credit unions may check your credit before you open an account with their institution. After your account is open, the types of accounts and amount of money in those accounts help the financial institutions determine their working relationship with the customer in need of using their buying power to make purchases. For example, someone who has a basic checking account that is depleted after every pay day has less power at that institution than someone with a checking and savings account with accumulated balances in the thousands. Some institutions may not admit this, but I guarantee you that the business man or woman who is known at the institutions receives more accommodations than the unknown customer with an account with an average balance of less than $200 per month.
My recommendation for doing business with your local community financial institution, opposed to national or international institutions, yields mainly to the personal benefits and flexibility the local institutions have when providing services to their community. Local institutions that are small enough to work with you will value your relationship with them and go out of their way to help you achieve your goals. Many will work with urgency when you in a situation where you need things done quickly and decisions made quickly. Do your research to find an institution in your community where you feel comfortable conducting business. Get to know the tellers, managers, Vice President and/or President of the institution. Smaller financial institutions will not hesitate to make themselves accessible to their valuable customers.
If you need help knowing and understanding your credit score, improving your credit position and building relationships with local financial institutions, feel free to contact me for a complimentary financial empowerment session.
I am Deletra Hudson, your Financial Educator.