Tag Archives: credit

It’s All About Choice

24 Jan

I received a call last week from my nephew seeking my advice. I’ve got to admit I was flattered. Typically it’s my peers who seek my advice, but rarely a 24 year old, and I often wonder why that is. I have an opinion and it is this: we live in a face paced highly technological world aimed at young people. Why young people? Two very simple reasons; 1) that’s where the money is, and 2) young people have the time to devote to learning new technology. In fact, other than attending school, learning and using technology is their full time job. Because of this, they tend to look at the proceeding generations as not as technologically savvy (intelligent) as them, and thus, not people they would want to solicit advice from.

He’s interested in leasing a new car and since I have been leasing cars for over 40 years, thought I might be able to offer him some sound advice. And I did. Some of the advice I shared with him was: Just because the dealer advertises a manufacturers lease special it does not preclude you from further negotiating an even lower price; Often the dealer has several money factor rates (interest) and if your credit is good, you can negotiate this too; Just because they say you need to put money down does not mean you have to. All of my leases have been with no money down. Zero drive off; Fall in love with the car, not the dealer. Prepare to shop as many dealers as possible for the best terms. I live in Northern California, but I shop dealers in Southern California. It’s an hour’s plane ride for often under $100 and the dealer you’re leasing from will send someone to the local airport to pick you up. Then it’s a leisurely drive home up Interstate 5 in my new car.

But this blog is not really about leasing a new car. In our 45 minute conversation I asked him what his credit score was. His response was 690 and I told him how proud I was of him. Considering that he hasn’t been in the work world that long and he doesn’t have a mortgage that was a pretty good score. We then had a conversation about Cause and Effect. And this is what I told him.

Very often young people do foolish things that could have a dramatic effect on themselves and their lifestyle down the road. And it’s not just today’s young people. All of us have done things that we look back upon in embarrassment and wish we had made better choices. It’s all about the process of maturing and becoming an adult. The problem that my nephew’s generation faces as opposed to any proceeding ones is that their stupid mistakes are written in stone. Just waiting to be discovered years later by anyone with internet access.

My nephew was really shocked when I told him this: Future employers look to your credit score when considering hiring you. Why would they do that he asked? And it’s really quite simple. How you maintain your credit is a clear indicator of how you lead your life. If you purchase goods and services and don’t pay for them, you’re not a person of good character. If this is who you are privately their fear is that this is who you are publically, and they can’t afford to take the risk of adding you to their team.

What goes around comes around. Choose wisely.

Love,

Michael

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