In personal finance expert Lynnette Khalfani-Cox’s latest book, Perfect Credit: 7 Steps to a Great Credit Rating, she outlines the steps consumers need to take in order to get their credit in tip-top shape. I recently sat down with the Money Coach and got the scoop.
Why did you write this book?
I personally had struggles with credit issues. I have great credit now, but for many years I had really bad credit, and I know what it’s like to suffer through that. I also want to show consumers how being in debt impacts your ability to have great credit. There’s a big tie-in between credit and debt.
What is perfect credit? Does it mean having no debt?
What are some barriers to perfect credit?
Many consumers don’t understand the rules of credit. They might know some of the basics, such as paying on time, but they don’t really understand the unwritten rules about credit. I
If you already have great credit, how do you maintain it?
The first thing is to continue to pay all your bills on time. That’s paramount because the reality is, for those who have really great credit ratings, the smallest slip up can hurt them the most. For example, the person who has a 600 FICO score who has a late payment might only see their FICO score drop a fraction of the amount of someone with a 750 or 800 FICO score. It’s imperative that the person who has great credit works overtime to make sure they don’t do anything that can be counted as a misstep, such as making a late payment. Continue to practice good financial habits and pay close attention to any changes in your credit report.
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