When choosing a financial planner, look for one that has the proper degree and credentials. They should be a Certified Financial Planner (CFP), and have several years of experience. Ask about their continuing education. You want a planner that keeps up with the changing times. Talk with the financial planner before hiring them, and make sure that you feel like they are putting your best interests ahead of their own interests.
Warning! Avoid financial planners who earn a commission for selling you financial products. They should get paid a fee for their time and services, of course. But if they earn commissions on products they recommend to you, they are incapable of being objective. If you're not sure, ask.
Watch Your Credit Report
Imagine that you have gone to apply for a home mortgage loan, and you are
told that you were denied - because your credit wasn't good enough. Not
knowing what is on your credit report ahead of time is a mistake that many
first-time home buyers tend to make. It is important that you know what is
on your credit report, and you should get a copy of your report at least once
each year - even if you don't intend to apply for any loans.
The first reason for needing to know what is on your report is to ensure that
everything on it is right. The fact is that out of ten people, at least five will
find errors on their credit report.
Those errors can keep you from getting loans or credit cards. They could
even keep you from qualifying for some jobs! When there is an error on
your report, you need to call the reporting agency and the creditor to clear up
the problem as soon as possible.
Pulling your credit report is also a good way to know if you have been the
victim of identity theft. Some errors may not be errors at all... they may be
proof that someone else is using your information! Again, contact the
reporting agency, the creditor, and if necessary, the police.
You can
subscribe to online services that monitor your report and help to protect you
from identity theft. These services include LifeLock, which is backed by a
million-dollar guarantee that if your identity is ever stolen while you're their
client, they will do whatever it takes to fix it. Another one I recommend is
Privacy Matters, whose subscription includes unlimited copies of your credit
report and your credit score (also called FICO score).
You have the right to one free copy of your credit report per year from each of the big three credit reporting agencies. They don't have to be requested at the same time. For more information go to AnnualCreditReport.com or contact the credit bureaus directly (see list in Appendix). If you do have negative items on your credit report that are not errors, it is in your best interest to take care of those matters as quickly as possible. In many cases, you can call the creditor and work out terms with them, or negotiate a lower cost for clearing up the debt.
Most creditors will work with you is they see that you are making a genuine effort to clear up the matter. Don't make the mistake of not having anything at all on your credit report. You want items on there, and you want them all to be good. Many would-be lenders actually view some bad credit as being better than no credit at all! It's difficult to get credit when you have no past credit. This is easily rectified by applying for and getting a major credit card, and making the payments on time.
If you have the cash to buy a vehicle out right, you are actually better off - from a credit standpoint - to finance the vehicle, and then pay it off early, after about a year. This will show positive credit on your report. You can find contact information for the big three credit reporting agencies in the Appendix.