Perfect Credit in an Imperfect World & Financial Freedom During dfree® Conference

Franklin Township, New Jersey – New York Times Bestselling Author and The Money Coach Lynnette Khalfani-Cox ran two workshops on “Perfect Credit” during the 5th Annual Financial Freedom Conference hosted by Rev. Dr. DeForest “Buster” Soaries at the First Baptist Church of Lincoln Gardens. This conference attracted a national audience working on achieving financial security to the Central Jersey area last week.

“We all understand that earning a ‘perfect’ credit score is a vital step on the path to taking control of your financial life,” said Soaries, creator of dfree®, as he introduced The Money Coach.

Khalfani-Cox held two sessions packed with attendees eager to learn strategies to improve their credit scores, which helps free up funds to focus on wealth creation. One prime goal of earning a perfect credit score, one in the range of 760 to 850, is the availability of capital at low interest rates.

“It doesn’t matter where you started, many of us had young and dumb days, but you can make it to the other side,” said Khalfani-Cox. “No one made us do it; it is part of your financial past. Starting today, you can change and pay off your debts now.”

Khalfani-Cox opened the session with a primer on understanding credit scores. The most well-known score, FICO was created in 1956 by engineer Bill Fair and mathematician Earl Isaac. The Fair and Isaac Corporation (FICO) developed a system of scores ranging from 300 to 850, which determine a measure of consumer credit risk. Since that time there have been numerous lesser known organizations providing credit scores. In 2006, three companies -- Equifax, Experian, and TransUnion -- banded together with the goal of creating a more accurate scoring system called a Vantage Score that used an extended range of scores from 501 to 990. Rival to FICO, the big three, as they are known, focused on eliminating variance in scores between themselves. This change introduced some confusion among lenders and the general public leading to the adaptation of the same numerical value scores in line with FICO, from 300 to 850. However, the actualFICO and Vantage Scores that an individual receives usually differ based on how the companies view credit history.

Credit scores are used generally by lenders, mortgage brokers, student loan agencies, automobile companies, credit card issuers, potential employers, landlords and insurance companies. Khalfani-Cox said, “Most people are unaware that your employer can pull a credit score on an existing employee to determine raises or not.…Some companies only hire people with good credit scores.” She said there are myths about what determines a credit score and that the following information is not factored into the formula: income, occupation, employer, employment history, race, color, nationality, gender, marital status, age and zip code.

“The single biggest determinant of your credit score is how well you’ve paid your bills on time in the past,” Khalfani-Cox said, emphasizing that the last 12 months are most important. “If you have missed payments or have late payments, stop it now.” It may take time to improve your score, but it can be accomplished. She encouraged attendees to, “Pray, plan and prepare.”

Understanding the different types of debt is critical, she said. “All credit is not created equal.…Mortgage and student loan debt is not affecting you, unless you are not making timely payments…credit cards pull it down,” said Khalfani-Cox. There are collateralized assets, such as a mortgage; installment debt, such as car and student loans with a fixed payment that goes down over time; and credit card debt, where the balance goes up and is highly unpredictable.

Khalfani-Cox encouraged participants to, “Receive all your bills in the mail. We all want to do our part for sustainability, but to make changes you need a hard copy form to see where your money is going. Compare the bills to each other and determine the changes that need to be made. It will never happen with electronic statements.”

She said factors contributing to reduced credit scores include: high credit utilization, the amount of available credit used; late payments, being denied for increases in credit; and too many requested inquiries on your credit score. Many people erroneously think that their partners’ credit score impacts them, but it does not -- unless they are making joint purchases.

Khalfani-Cox shared, “There are ways to boost your credit score. Renters can submit their annual rental history to show the pattern in payments by going to online programs such as renttrack.com….The use of national credit cards over store credit cards should boost your credit.”

In relation to wealth creation, a perfect credit score matters to get the best loans possible for starting a new business or getting involved in real estate ventures. The goal is to be debt free, but some enterprises require a loan and getting the best available interest rate with the most attractive terms is key to success, she said.

One participant asked about medical debt and how it affects the credit score. The Money Coach responded, “Medical debt is the largest bankruptcy debt in America. It does not adversely affect you, unless someone gets a judgement against you. In 2017, there is supposed to be a shift in how medical debts are reported, but that can change with the president-elect.”

Khalfani-Cox also recommended that attendees seek out her blog, askthemoneycoach.com, where she has hundreds of answers to common questions.

Chase Bank, a conference sponsor, provided copies of Ms. Khalfani-Cox’s book, the New York Times Bestseller Zero Debt: The Ultimate Guide to Financial Freedom, to attendees.

Soaries created dfree® in 2005 to combat the American consumer culture that encourages people to become fixated on materialism instead of true meaning and purpose. In particular, Soaries focuses on helping faith-based individuals, groups and organizations end the debilitating cycle of debt, delinquency and deficits and move to financial stability and freedom.

The “Say Yes to the Next Level” conference, Nov. 10-12, 2016, was intended to motivate existing dfree® participants to accomplish their goals and to attract new audiences. The conference encouraged participants to reevaluate personal values, habits, attitudes and relationships in order to prepare themselves to move toward financial wholeness. It was held at FBCLG, 771 Somerset Street, Somerset, New Jersey 08873. It included concerts, networking, youth activities and dfree® training and support -- including workshops by the Money Coach Lynette Khalfani-Cox and concerts by Erica Campbell, the Grammy Award-winning recording artist & singer who formed gospel duo “Mary Mary,” and DEE-1, a positive hip-hop artist.

The title sponsor for the conference was Prudential Financial, with Wells Fargo, Chase Bank, City National Bank, Mazda Motor Corporation, Lyft, Stand Together, Griffin Capital Funding, Independence Realty Trust, Federal Home Loan Bank of NY, Merrill Lynch, Think Finance, Mobiloans and others also participating as sponsors.

About dfree®:

Founded in 2005, dfree® is a financial freedom movement that addresses the cultural, psychological and spiritual influences on financial wellness and offers practical strategies for achieving financial success. dfree® was featured by CNN in a 90­minute documentary, “Almighty Debt,” an installment of the “Black in America” series, hosted by Soledad O’Brien. The dfree® strategy is being used by hundreds of churches and organizations worldwide. For more information about dfree® visit www.mydfree.org and follow the hashtag, #dFreeNextLevel, on social media.

About Soaries:

Rev. Dr. DeForest B. Soaries Jr. is known as an active agent for change and is a widely-requested speaker. He is the Senior Pastor of First Baptist Church of Lincoln Gardens in Somerset, New Jersey and former New Jersey Secretary of State. His pastoral ministry focuses on spiritual growth, educational excellence, economic empowerment and faith-based community development. Soaries, author of Say Yes to No Debt: 12 Steps to Financial Freedom, has issued a Billion Dollar Challenge as a national initiative and free resource to help individuals and families collectively pay down $1 billion in consumer debt.