Building a Solid Financial Foundation

As a highly successful Real-Estate Investor for the last eighteen years, Chayo Briggs understands the importance of having a solid credit rating. Society demands our credit resume be complete and serving of financial histories. Therefore, Chayo is committed to assisting his clients in achieving the best possible credit score based on their life goals.

“There is no time like the present to build a solid financial foundation,” Chayo says.

The longer you wait to start the process the more difficult it will be as you age,  “Whether you’re hoping to pay down debt or build your savings, it’s important to start with a solid financial foundation,” according to Holly Morphew, a certified financial health counselor. “Whatever financial success looks like to you, it’s important to have a solid foundation so that you can get where you want to go,”  

Why Do You Need Credit?

As discussed in my book “Your Credit Defines Your Creditability” the importance of good credit extends beyond just purchases, in that your credit information may be used by potential employers and landlords as part of the selection process. Good credit is a necessary evil if you plan to make a major purchase, such as a car or a home. Credit is a convenience that must be taken seriously, especially, if you have an emergency.  

Credit grantors review credit resumes and credit reports to determine financial risk: If they lend you money, extend credit, or give goods and services, will you pay them back? Your choices in life will affect the ability to gain credit. Some considerations on your resume; residence tenor, employer statistics, balances in your bank account (do you have an account), savings account, and the length of service. The next focus is on what kind of assets do you obtain. The entire package determines whether you are extended the credit applied.

 “The reason we want to have our personal finances under control is really so that you can create the life that you want,” Morphew says.

Chayo advises individuals to begin where you are in life and create a plan from that standpoint. Several questions apply;

1.    Do you have a large debt concern?
2.    What type of emergency fund to you have?
3.    Do you have a savings plan in progression?
It’s always easier to build a solid financial foundation when you have a guideline to follow.

Step One: How much income do you have to work with? Tip: The amount is not important; it's setting a goal and sticking with the plan.

Step Two:  Open a savings account, if you don’t already have one.

Step Three: Start building an emergency fund

The confidence you will feel by creating an emergency fund is unexplainable. It takes the stress out of everyday life, knowing you have some money in case the worst happens. Tip: It’s not if an emergency it’s when.

Credit Utilization Issues with Late Payments

Lenders consider payment history when evaluating your credit risk; deciding whether to approve you for credit. A long-standing history of on-time payments suggests that you are a responsible and reliable borrower; a poor history of on-time payments suggests that you may not repay debts and could result in a costly loss to the lender.
Being unreliable with payments is a red flag to financial institutions, and several things can occur when you pay late. Paying late is a dangerous credit habit that could lead to more damaging credit actions, such as neglecting an account until it becomes delinquent or sent to collections. An account in collections may remain on your credit report for seven years and cause even more damage than a late payment.

    You’ll usually be charged a late fee. 
    Your interest rates may rise. 
    It may end up on your credit report. 
    It might decrease your credit score.

As president of Briggs & Lay Pro, Inc. and a multitude of other services including Credit Repair Chayo educates his clients on how financial advisors and consumer advocates suggest reviewing your financial plans on a continual basis. As life progresses, so do our goals; therefore, it’s imperative we maintain an accurate assessment of our monetary foundation.

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