Southland Credit Guru Sounds Off in Chicago Heights

Like it or not, to many institutions you're nothing more than a number, and that number is your credit score.

"Your credit score is a barometer to lenders as to whether they'll get their money back," explained consumer credit expert Arnetta Pullin, a senior loan officer at Cosmopolitan Credit Union.

And that number is usually right on the money, said Pullin, speaking at a homebuyer's panel Wednesday night at the Chicago Heights Public Library.

"We're in this messy market because they (lenders) did not adhere to known good practices of loaning," she added.

The wealth of personal data included in the credit score includes the number of accounts you paid off as agreed, how many were charged off, whether you are working and how much money you are making.

Remember, even so-called good debt like financial loans needs to be accounted for, Pullin commented.

"You've got deferred student loans . . . doesn't mean they won't have to be paid," said Pullin. "You'll be paying until they shovel dirt in your face."

Changing the game

If you're committed to improving your financial health, get your credit report.

"You can get a free credit report every 12 months," said Pullin. But don't get it from a 'free credit report' site. Request it from AnnualCreditReport.com. For a nominal fee, you can get your FICO number, which is the most widely-accepted credit score model.

If you're getting married, get your fiancee or fiance to pull their credit report too and share the information. Better now, than later, Pullin advised.

Avoid applying for retail cards, she said. Getting that 10 percent off a dress or knickknack by applying for a store credit card is a bad deal when the card's interest rate is 20 percent.

"If you don't pay it off on time, what is it really costing you?" Pullin asked.

Adding insult to injury, applying for the store card will trigger a credit inquiry, and the inquiry will stay on your account for two years. Your goal with credit inquiries is the fewer the better, Pullin advised.

Make wise use of the credit you do have by keeping your debt ratio low by paying down your accounts, she said.

And never, ever, try to fix things with a "payday loan."

"Payday loans...you might as well go to the mafia and get yourself a juice loan," said Pullin. "It's just that bad."

The Chicago Heights Public Library will be having a double workshop, titled "," Friday, from 10 a.m. to 1:30 p.m.

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