LOBO Talks presents good, bad credit

By Dr. Joycelyne Fadojutimi Infinitie Plus Magazine

The recent LOBO TALK featured Jill Alley, Eastman Credit Union Regional D irector.

She spoke on an especially important financial topic – CREDIT. She started out by defining credit. According to Ms. Alley, credit is your credit history or how you use money.

She gave these examples:

1. How many credit cards do you have?

2. How many loans do you have?

3. Do you pay your bills on time?

Alley said, “How you handle your money and how you pay your bills, help lenders and others decide if they want to do business with you.” Hence, if you pay your bills timely, lenders are more apt to do business with you. Another financial plus of timely payments is the interest rate you get when borrowing money for any purchase.

Secondly, she explained to students who uses credit history. They are as follows:

1. Lending institutions such as banks and credit unions.

2. Some employers especially financial industries.

3. Landlords and insurance companies. Furthermore, she delved into credit report. According to Alley, credit report is a person’s credit history. There are 3 credit bureaus that collect credit information. They are TransUnion, Equifax, and Experian. Furthermore, she explained to students what a credit score is. It is a number between 300-850 based on one’s credit report. A larger number on the credit score rewards the person with borrowing power and lower interest rates. Conversely, a lower credit score penalizes a borrower. They will have to borrow with high interest rates because the person is deemed high risk. Students participated asking various questions about borrowing and credit.

Talks|Continued to page 19