"Mommy, Will I Have a Birthday Party?"
Day 15 of the Start Here series
Betty Bunting had a headache. Katy was chatting away in the back row of the Suburban during a Saturday afternoon drive home from Chucky E. Cheese.
"Mommy, will I have a birthday party?" is a natural question for any kid, especially Katy, who is turning ten in two weeks.
What a nightmare for Betty, champion germaphobe. Scanning the floor around her pedals for the 32 oz. pump bottle of sanitizer. “ That little Barbie-to-be had to have her party there?” she thought. “Thank you very much, Kelsey King.” What a brat. “Hmmm…..She is ten. Breathe.”
Kelsey wasn’t the stressor. The new trampoline zone wasn’t the stressor. Snarled Houston traffic wasn’t the stressor. Money is the problem. Two weeks to go until Katy’s monthly salary is direct-deposited into her checking account. In the meantime, cash crunch.
Needs groceries, gas, and a few staples to sleep at night. The birthday expectations of her only child will keep her up, anyway. What to do?
Betty never liked credit cards.
Former husband Bill always abused them. Used them to pull cash for his gambling habit. Bankruptcy contributed to their divorce.
Betty needs a credit card. She has a credit report to check out, first.
It’s 2:00 a.m.
Time to apply.
Accepted.
Sleep now.
Credit Cards
The class notes for paid subscribers today include the costs, benefits, rewards, and decent sources for the best credit cards on the market today. Plus, a cool video that explains the crazy finance charge calculation.
Betty doesn’t need the class notes now. You might love them!
Run a credit check. Apply for the best card. Book your next party. Pay in full next month.
Your Credit Report: Get one in 5 Minutes
Our ability to buy and borrow money at the lowest possible cost is good Personal Finance Economics. This week, I sent my students to check their credit reports. For many college-age students, this is the first time. Everybody should do it once a year. See what you learn about your credit and identity. If you find false information, you can correct it.
Pro Tip:
To start the process, you must go through the Federal Trade Commission’s link on this page to avoid imposter sites. Scroll down to the bottom of their page and click on the link to take you to the site to order your credit report.
Fill in your data in five minutes, then choose one of the three providers. If you have lived at your current address for fewer than two years, have your most recent other address handy. Good luck!
In terms of good credit, what would you avoid if you had to start over again in terms of financing something on a credit card? As a soon to be college graduate who will be making these big purchases, I am curious about if I should avoid opening a line of credit over luxuries and just use it for necessities I know fit within my bare minimum budget.
In terms of checking your credit and applying for a credit card, what is the most important part of your credit report? How do you fix that number and how might it affect you applying for certain credit cards?