The Million Dollar Question


Good questions are worth being asked, smart questions are worth being answered, and brilliant questions are worth being explained. So here comes the million dollar question: What is Credit? What is a Credit Card? What is the meaning of a Credit Report?


It is a question worth asking, pondering, and understanding in its entirety. Your awareness in this important subject matter can catapult you to millions in equity and success, whilst ignorance and reckless credit handling can lower you to an abyss of millions in debt.


My name is Ruchy and I am a Consultant at Goldmine. We are at the forefront in educating the community about the benefits and pitfalls of good and bad credit. After all, knowledge empowers you to know your possibilities and proceed with caution.


So welcome to GoldMine. Let us begin our first meeting.


Create Your Wish List:


If you are bewildered and overwhelmed and consider this topic to be way over your head, rest assured. We will cover all concepts pertaining to credit in depth and with clarity. As a beginning, consider doing the following exercise. Take a blank piece of paper and create a wish list.


What is it that you dream about? What are those elusive far-fetched fluffs of wants, desires, and fantasies? Is it a Car Lease? A Mortgage for your very own palatial home? Some perks like expensive electronics and equipment? Some luxuries of a plush or exquisite nature? A dream vacation that will relax and rejuvenate you?


Now here goes. Remove the blindfold.


Open your eyes. This is not the world of make-believe, of whimsical childhood games. This is reality. Forethought, wise credit handling, and perseverance can help you attain your dreams. The magic wand in real-life is called Good Credit.


Good Credit- Even Greater Possibilities


Credit is the ability to obtain goods and services prior to payment based on the trust that payment will be made in the future.


Of course you’ll lend your vacuum cleaner to the neighbor that is trustworthy and returns stuff in pristine condition and in a timely manner. And no way will you lend that bike to the neighbor that is reckless and tardy in returning borrowed items. What is the difference? Trust.


That is why it is worthwhile to apply for credit and maintain good credit. It helps you establish trust. If you keep up a good record, pay your credit card responsibly you ultimately end up with stellar credit and obtain buying power and the ability to check off your wish list with ease.


The magic key to the castle of dreams is good credit. So here are the car keys to your shiny new Infinity, the blueprint to your spanking new house, your UPS Delivery of coveted goods, the ticket to your dream vacation. Acquire good credit. The doors of opportunity will open wide for you.


So What Is Your Score?


M.N., a recent client called into my office in a distraught state of mind. “I am just about to launch my first ever business venture and I am in need of capital funds, renting space etc. I have applied to several banks and rental agencies, but I have thus far been declined.”


“Well let us examine your credit score,” I advised.


His score was a poor 600. Of course he didn’t qualify.


So let’s explore the topic of Credit Scores and I will share with you my recommendations to him.


Real-Life Report Cards


A credit score is a numerical expression that is based and dependent on an analysis of a person’s credit files. It determines the creditworthiness of the person. The score that really matters when applying for credit is the FICO Score. It is a combined score on 6 months of your credit history (past 6 months and gets updated monthly) and is culled from 3 separate credit bureaus, Experian, Equifax, and Transunion.


So in layman’s language or as we say, in simple English, what is a Credit Score?