Rich Johnson of Camano Island has spent years in the financial industry, many of them helping people get mortgage loans.
As a result, he’s seen a lot people with bad credit.
“Too many people are living beyond their means and spending more money than they’ve earned and abusing credit as
a result,” he said.
Johnson didn’t want his sons to be among that group. The result of his concern is a book that he’s self-published called “Credit Scores and You: Understanding the Importance of a Great Credit Score.”
I’m usually leery about self-published books, but Johnson’s is pretty good. It’s available at Amazon.com for about $13.
Johnson describes it as a primer on how to get your credit established, with a focus on living within your means. That’s exactly what it is, using examples from Johnson’s life to explain how credit scores work and their importance.
“It’s not taught in high school,” Johnson noted.
That’s a shame.
Students in high school and college need that information, and they will likely learn the most from this book. It’s written in simple English and in a sort of step-by-step format — from how to start out with things like department store credit cards to build a history to moving up to auto and loan homes.
Johnson also explains how cars and homes aren’t the only places where credit scores are used these days. Prospective employers use them to look at applicants, and insurers use them to decide whether to give you insurance and what it will cost. Basically your credit will be examined wherever someone wants to examine your ability and willingness to pay your debts.
Johnson does a good job of advising people not to get into debt too quickly or too deeply and about the importance of making your monthly payments on time.
He explains what type of information is used to give you a credit score: payment history, use of credit, length of history, types of credit accounts and recent history.
He also explains what numbers are good (700 to 739) and not so good (620 to 659 is below average). He explains things to avoid, like payday loans. And he offers some guidelines for a good score, like using only about 30 percent or less of your available credit.
He also will tell you how to check your credit and what to do if you get in trouble.
I figure a lot of people in the market for a book like this will be people who are already in trouble with credit, so I wish the help section was bigger. But the book is billed as a primer to keep you out of trouble, and it does that job well.
Knowing what I was like as a kid, I can’t imagine many of them spending their hard-earned money on Johnson’s book. But if you have children or grandchildren just starting out on their financial life, you might do them a favor and grab a copy.
Mike Benbow: 425-339-3459; benbow@heraldnet.com.
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