Recently, I had the pleasure of talking with Lynnette Khalfani-Cox, The Money Coach, and founder of Ask the Money Coach.
Khalfani-Cox is frequently seen on NBC Today, CNN, Fox and Dr. Phil, giving sound financial advice on getting our credit right in real time.
Her latest book, Perfect Credit: 7 Steps to a Great Credit Rating gets to the core of why every transaction from an overdue library card to paying rent will impact your credit score and rating in a flash.
Here is Part 1 of the interview and scroll to page 2 to receive a FREE download of the New York Times best-seller, Zero Debt.
BNM: Tell us about your new book, ‘Perfect Credit?’
LKC: Many people are dealing with debt and credit issues. I wanted to write a book about the importance of restoring and rebuilding credit step-by-step. Not long ago, I was $100k in debt and today I have a credit score over 800 and in great credit standing.
‘Perfect Credit’ shows how to navigate the nuance of the credit system and get back on track with practical steps covered in the book.
BNM: What are 3 Tips to get back on track fiscally?
LKC: I have more than 3 tips, here goes:
1) Understand every transaction counts and everything is being tracked from purchases online to library books to paying your rent on time.
2) Pay all bills on time from cell phone, library book and if you can only make a minimum payment — make it.
3) Only apply for credit when you truly need it. Every time you apply for a credit – a hard inquiry stays on your credit report for two years and can lower your score by 30 points.
BNM: What is the range for good credit?
LKC: 760-850 – Perfect credit
700 and above – Good Credit
600-700 – Average Credit
Under 600 –Poor credit
LKC: When you have a winning credit score you will save on auto insurance, secure a job faster, best interest rates, etc.
Also, people with perfect credit will save/make more than $1 million in their lifetime.
4) Monitor your credit and track each transaction so you understand where your money goes and your thoughts/behavior behind the transaction.
5) Focus on credit card debt; all debt is not created equal. A missed credit card payment can lower your credit score by 50-100 points.
*Understand the Do’s and Dont’s of Debt Consolidation:
The differences between debt management programs and debt settlement companies
BNM: Thank you for the interview and real time tips to get us on track with Perfect Credit.
LKC: My pleasure, I would like to offer the BNM audience a FREE download of my New York Times bestseller, Zero Debt.