Posted by: thecreditmaven | November 10, 2008

The Value of Your Name

What’s in a name? A mixture of consonants and vowels? Maybe a Jr., Sr, II, IV, or Dr? Does your NAME have a VALUE? WHO values your name?

It depends.

Your name absolutely, most definitely and without a doubt has value TO YOU. Nevertheless, how does society, the government, your employer, your local bank or your friends calculate the worth of your NAME?

Proverbs 22:1    A good name is more desirable than great riches;
                        to be esteemed is better than silver or gold.

Think about that for a minute. Your NAME is more desirable (i.e. valuable, advantageous, beneficial, gainful, helpful, useful) than great riches. Some people would probably go with “great riches are more desirable than a good name”.

What if you could have both? What if you could have riches, a good name and be able to do anything with your riches and it wouldn’t damage your good name? Maybe even move you up to a GREAT NAME!

Okay Credit Maven, where are you going with this?

Your GOOD NAME is your CREDIT REPORT. Your GOOD NAME is your CREDIT SCORE. Do you know what is on your credit report? Is all of the information accurate, up-to-date and complete?

The Consumer Federation of America and Washington Mutual performed a credit report survey back in July 2008. Take five minutes and read this report.

      Consumer Federation of America

The one big comment that sticks out to me in this survey is, “If all consumers raised their scores by 30 points, total annual CONSUMER SAVINGS would be an estimated $28 BILLION. That’s right- BILLION not MILLION. 

How valuable is your name to the creditors that you make your monthly payments to on the accounts that you have with them? The value they put on your name is directly proportional to your credit report and credit score. With them you are more valuable with a lower credit score (because they can charge you a higher interest rate) versus a higher credit score as they charge you a lower interest rate. Doesn’t make sense, huh? 

All creditors prefer to loan money at a higher interest rate versus a lower one because it puts more money in the kitty. If everyone in America had GREAT credit, creditors would not be making as much money as they would if everyone had MEDIOCRE or SO-SO credit. 

The path to great riches is found in having a good name (credit report and score). With a good name, you will be saving $$$$ because you are NOT PAYING HIGH INTEREST RATES. If your name isn’t so good – somebody else gets rich off of you.

Here’s a crazy thought for you to consider – Imagine what would happen if everyone in America paid off all of their credit cards and only kept one (1) credit card to use for purchases. WOW!!! I’ll bet you that would create a very competitive market place for your business and we might even see a few credit card companies go the way of the DINOSAUR.

Protect your name as you would a newborn child. Be cautious about who you deal with on any financial matter. Beware of anyone who wants to do business with you – instead seek out people for financial transactions and KNOW the person you are doing business with and not some flashy, sexy blinking website. When you look at your computer screen, envision a GREAT WHITE SHARK on the other side getting ready to eat you when you hit the “ENTER” key.

Here is your ACTION ITEM. Call your credit card company and tell whoever answers the phone that you are tired of paying the high interest rate on the card that you currently have. Tell them that you have been an outstanding customer, you really like having the card but you cannot afford to pay the extremely high interest rates. Tell them also that if they do not reduce the interest rate on your credit card that you will have to take your business elsewhere.

Email me back and let me know what happens.

Your name is worth more than SILVER or GOLD.

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