Getting the Financial Job: Part 3

This blog is the third part of a series dealing with repairing, maintaining and establishing credit as good credit is needed to acquire a good job in the financial field. The first blog dealt with repairing credit, the 2^nd with keeping a positive and realistic attitude because to do otherwise is harmful to your credit score if you, for instance, apply for 10 credit cards in frustration from being turned down for credit.

This blog deals with maintaining good credit. It’s good advice for the job seeker and everyone else for that matter.

The first thing you need to do in keeping good credit is don’t assume more obligations than you can pay. The allure of a credit card and the good line of credit you may be offered is a coffin nail to your credit when you cannot pay it back in a timely manner. So use common sense.

There are three good kinds of debt also. A car loan, try to get a job without a car ( also the loans are simple interest); college loans within reason and a good mortgage. All these loans may be utilized as circumstances and income dictate, and even experts agree that they are essential loans in this world and even help credit if paid on time.

Secondly, do not co-sign for anyone. Relatives will deadbeat you faster than enemies. I know of quite a few people whose credit was destroyed by children, siblings, parents etc. What if you can’t say,” no.” Then look for a job outside of the financial industry.

Thirdly, pay all your bills on time. Every time you're late 30 days or more, it's noted on your account. Also, if you have no debt, you'll have no credit. A credit card used and paid off on time costs you no interest and maintains your credit. Get one with no fees, and only if you will not overspend.

Fourthly, stay away from unofficial co-signing. This is where you have deadbeat roommates, for instance, who put bills in your name because they have no credit. Usually these people aren't people who lost credit because of the economy. They have no credit because they have stiffed the electric or phone company in the past. They don’t pay bills. Surprise! They won’t pay you.

Fifthly, keep your debt ratio to income level down. If it goes above 50 %, it lowers your credit score. If your score goes too low, the credit card companies can abrogate credit agreements and increase your interest, even compounding it daily.

Sixthly, Don't loan money. A friend doesn’t ask for money. But this friend really needs it. That's why there are banks. If this person cannot get money from a bank, it's not your fault.

It's like the guy who robbed the liquor store, taking booze and money. You know why? He was a drunk and a crook. Why can’t your prospective borrower get a loan elsewhere? Because you’re a liquor store to them, and banks have vaults.

Seventhly, Don’t live at the edge of your income. Be a saver for bad times and spend money at a level that you can afford if you experience income loss. This doesn’t mean you have to wear a potato sack, but common sense is the key.

This list is not exhaustive, but if you use common sense as I mentioned many times in this article, you'll do fine. Your money is yours. And you don’t have to walk through a dark alley to be mugged.