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No credit history? Here’s how to build one

NNPA NEWSWIRE — “Saying ‘I want to improve my credit’ isn’t a strong enough goal to keep you on track to the credit you deserve,” says Dominique Brown, financial advisor and founder of the Your Finances Simplified Academy and YourFinancesSimplified.com. Create a plan for how you will use it and factor in a monthly spending plan based on your income to figure out how much money you’ll actually be able to put towards building good credit.

Published

4 years ago

January 9, 2020

Oakland Post

Remember to only take on what you can manage. Don’t take out the full loan amount if you don’t need it and make sure to pay on time so your credit isn’t negatively affected. (Photo: iStockphoto / NNPA)

Now is a good time to establish a good credit history. These accounts can help get you started.

According to a 2015 study by the Consumer Financial Protection Bureau, roughly one out of 10 American adults are “credit invisible,” meaning they don’t have a credit history with any of the major national credit bureaus (Equifax^®, Experian^®, or TransUnion^®). Because they don’t have a credit history or credit score, this may make it difficult to apply for a credit card, rent an apartment, sign up for cell phone service, or even get a job.

Setting up a credit history – and being in good standing – can take time, so here are some actions you can take to establish credit.

Utilities

Traditional lenders tend to look at a person’s credit score, but people with little to no credit history generally don’t have enough of a profile to even generate a score. A simple way to get your credit history going is by putting utility bills in your name, such as electricity, heat or rent. Making on time payments to your monthly bills can give lenders or anyone else looking into your credit something to consider when you apply for things like a loan or new apartment. Be sure to keep track of due dates and pay the whole balance each month when you can.

Merchant cards

If you frequently shop at a specific business that offers a card for purchases at that business, consider opening an account. For example, if you have a car, a gas credit card could be beneficial because they usually come with discounts, are easier to be approved for and can help you track how much you spend on gas each month. But, be careful when opening a gas card or department store card, as they often come with high interest rates, sometimes 20% or more. Consider sticking to one card until you get comfortable paying in full and on time to avoid the interest being added to your balance. Dominique Brown, financial advisor and founder of the Your Finances Simplified Academy and YourFinancesSimplified.com, has specific advice for department store cards: They should only be used “for credit building, not for credit [buildup].”

When deciding what store card to open, make sure to consider things like:

Interest rate – Is it so high that if you miss a payment, you’ll have a much larger payment to make the next month?
Reward point system – Is one offered so that you receive rewards to help save on future purchases?
How often you shop there – Is it enough to make the card worth it but not encourage you to spend more?

A secured credit card

A secured credit card is a good option if you have a limited credit history, and you can get one by putting up a deposit. You get the deposit back when you close the card, or at a point when your credit history is stronger. Keep track of what you buy with this card and if you feel ready, put repeat expenses on it like a utility bill. Turn the auto-pay function on so you don’t miss a payment and can continue working toward good credit.

A small loan

You can also consider taking out a small dollar loan which like a secured credit card can help build your credit if you make on time payments and pay the balance in full monthly. There are multiple lenders you could get this kind of loan from including:

Online lenders: Make sure to do research on these so you know they are trustworthy.
Credit unions: These typically offer loans between $200 to $1,000, but be sure to consider the interest rate that will be applied to a balance that carries over to a new month.
Banks: Some banks and financial institutions offer small loans and may offer low interest rates or discounts for existing customers.

With these different options it’s important to shop around and choose a loan that has helpful terms such as:

A low interest rate
Fixed monthly payments
A loan term between three to 12 months

Remember to only take on what you can manage. Don’t take out the full loan amount if you don’t need it and make sure to pay on time so your credit isn’t negatively affected.

Have a plan for using credit

Once you’ve identified the type of account you are interested in, “start with the end in mind and build your plan to make it happen,” says Brown. “Saying ‘I want to improve my credit’ isn’t a strong enough goal to keep you on track to the credit you deserve.” Create a plan for how you will use it and factor in a monthly spending plan based on your income to figure out how much money you’ll actually be able to put towards building good credit.

The bottom line is you need to use credit to build credit. Taking it on can be risky, so ask yourself honestly: Am I ready? If you are, opening one of these types of accounts can be a great first step. Remember to make on time payments every month and keep the balance as low as possible – in fact, strive to pay balance in full monthly. To learn more, check out tips from the online Hands on Banking® financial education program.

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IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78

NNPA NEWSWIRE — Born on September 4, 1945, in Los Angeles, California, activist Ramona Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.
The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Once upon a time, Black Americans were simply known as colored people, or Negroes. That is until Ramona Edelin came along. The activist, renowned for her pivotal roles in advancing civil rights, education reform, and community empowerment, died at her D.C. residence last month at the age of 78. Her death, finally confirmed this week by Barnaby Towns, a communications strategist who collaborated with Dr. Edelin, was attributed to cancer.

Born on September 4, 1945, in Los Angeles, California, Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.

Edelin’s contributions to academia and activism were manifold. She was pivotal in popularizing the term “African American” alongside Rev. Jesse L. Jackson in the late 1980s.

Jackson had announced the preference for “African American,” speaking for summit organizers that included Dr. Edelin. “Just as we were called Colored, but were not that, and then Negro, but not that, to be called Black is just as baseless,” he said, adding that “African American” “has cultural integrity” and “puts us in our proper historical context.”

Later, Edelin told Ebony magazine, “Calling ourselves African Americans is the first step in the cultural offensive,” while linking the name change to a “cultural renaissance” in which Black Americans reconnected with their history and heritage.

“Who are we if we don’t acknowledge our motherland?” she asked later. “When a child in a ghetto calls himself African American, immediately he’s international. You’ve taken him from the ghetto and put him on the globe.”

The HistoryMakers bio noted that Edelin’s academic pursuits led her to found and chair the Department of African American Studies at Northeastern University, where she established herself as a leading voice.

Transitioning from academia to advocacy, Edelin joined the National Urban Coalition in 1977, eventually ascending to president and CEO. During her tenure, she spearheaded initiatives such as the “Say Yes to a Youngster’s Future” program, which provided crucial support in math, science, and technology to youth and teachers of color in urban areas. Her biography noted that Edelin’s efforts extended nationwide through partnerships with organizations like the National Science Foundation and the United States Department of Education.

President Bill Clinton recognized Edelin’s expertise by appointing her to the Presidential Board on Historically Black Colleges and Universities in 1998. She also co-founded and served as treasurer of the Black Leadership Forum, solidifying her standing as a respected leader in African American communities.

Beyond her professional achievements, Edelin dedicated herself to numerous boards and committees, including chairing the District of Columbia Educational Goals 2000 Panel and contributing to the Federal Advisory Committee for the Black Community Crusade for Children.

Throughout her life, Edelin received widespread recognition for her contributions. Ebony magazine honored her as one of the 100 Most Influential Black Americans, and she received prestigious awards such as the Southern Christian Leadership Award for Progressive Leadership and the IBM Community Executive Program Award.

The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Stacy M. Brown

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Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues

NNPA NEWSWIRE — Recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.
The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Tennessee State University (TSU), the state’s only public historically Black college and university (HBCU), faces a tumultuous future as Gov. Bill Lee dissolved its board, a move supported by racist conservatives and MAGA Republicans in the Tennessee General Assembly, who follow the lead of the twice-impeached, four-times indicted, alleged sexual predator former President Donald Trump. Educators and others have denounced the move as an attack on diversity, equity, and inclusion (DE&I) and a grave setback for higher education.

Critics argue that TSU’s purported financial mismanagement is a manufactured crisis rooted in decades of underinvestment by the state government. They’ve noted that it continues a trend by conservatives and the racist MAGA movement to eliminate opportunities for Blacks in education, corporate America, and the public sector.

Gevin Reynolds, a former speechwriter for Vice President Kamala Harris, emphasizes in an op-ed that TSU’s financial difficulties are not the result of university leadership because a recent audit found no evidence of fraud or malfeasance.

Reynolds noted that the disbanding of TSU’s board is not an isolated incident but part of a broader assault on DE&I initiatives nationwide. Ten states, including Tennessee, have enacted laws banning DE&I policies on college campuses, while governors appointing MAGA loyalists to university trustee positions further undermine efforts to promote inclusivity and equality.

Moreover, recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.

The actions echo historical efforts to suppress Black progress, reminiscent of the violent backlash against gains made during the Reconstruction era. President Joe Biden warned during an appearance in New York last month that Trump desires to bring the nation back to the 18th and 19th centuries – in other words, to see, among other things, African Americans back in the chains of slavery, women subservient to men without any say over their bodies, and all voting rights restricted to white men.

The parallels are stark, with white supremacist ideologies used to justify attacks on Black institutions and disenfranchise marginalized communities, Reynolds argued.

In response to these challenges, advocates stress the urgency of collective action to defend democracy and combat systemic racism. Understanding that attacks on institutions like TSU are symptomatic of broader threats to democratic norms, they call for increased civic engagement and voting at all levels of government.

The actions of people dedicated to upholding the principles of inclusivity, equity, and justice for all will determine the outcome of the ongoing fight for democracy, Reynolds noted. “We are in a war for our democracy, one whose outcome will be determined by every line on every ballot at every precinct,” he stated.

The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Stacy M. Brown

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Braxton Haulcy and the Expansion of Walker|West Music Academy

May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …
The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.