Page 21

that kill your credit

Everything’s Negotiable and here’s how to do it!

Achieving and keeping good credit is

BY HARvEY MACKAY

MISTAKES easier said than done. Credit no-no’s include late payments, not paying and spending every penny on a card. We also make mistakes that aren’t so obvious. How many of these credit busting mistakes have you done? Closing Credit Cards Accounts Surprisingly, closing a credit card is as bad as paying late or not paying and shows up as a credit error. A closed credit card account won’t fall off a credit score for 7 years. Information keeps recycling and recycling from the last date you used the card and simply updates each month showing you closed the account. An open account that you don’t use is better. Good credit needs long term accounts over many years. Short term credit is not favorable and lenders see it as risky. A history of older, open accounts says stability. Keep balances low and make steady payments. Missing A Payment Not making credit card payments is brutal to your credit score. Lenders look at your credit history of paying on time. It’s like looking into a crystal ball...if you paid late in the past you will pay late in the future. That brings a resounding “no deal” from lenders or possibly raises the interest rate you will pay. As far as late payments go—the earlier that you pay late—the better! Settling A Past Due Account Not the best idea, but better than nothing. If you’re in debt a sum you can’t pay—more often than not you can settle with a creditor for less than what’s on your statement. BUT this doesn’t mean all is forgiven. It is still reported as negative on your credit report, and a creditor can report is as an account “deficiency” meaning there is money that was not paid. If you make a deal not to pay the entire amount talk to your creditor about NOT reporting the deficiency or resign yourself to paying them in full. If not your credit stays negative for 7 years. Charging Cards To The Max Having high balances on credit cards causes your credit score to plunge. Charge as little as possible and keep balances low. Pay off your card each month or pay more than the payment owed to keep your interest low. Stop Filling Out Credit Aps Filling out credit applications means your credit is constantly being checked. Every “inquiry” is required by Federal law to be posted and shows on your credit report for two years. The less your credit is accessed, the better. People who have a lot of credit inquiries are considered higher credit risks and that costs you points off your total credit score. www.annualcreditreport.com. www. Credit.com l

No

matter what industry you’re in, or how far you go in your career, the ability to effectively negotiate can make the difference between success and mediocrity. It doesn’t really matter whether it’s a multimillion-dollar contract, or an offer of a house sale.

The Rules Of Good Negotiating Are The Same

• Know what you want. Don’t go to the table without a clear, realistic idea of what you want to achieve. It will help you negotiate with confidence.

Finance Before you start any negotiation look beyond the “TITLE” and make sure the person you are dealing with is in a position of authority to sign off on the agreement.

• Ask for what you want. Don’t be afraid to make the first offer. You’ll set the tone for the discussion. Studies suggest the negotiator who goes first usually comes closer to getting what he or she wants. While I often counsel people to let the other person go first, someone has to start the process. I have found that either way, I need to be clear about my expectations or I will be disappointed.

• Understand what your adversary wants. A successful negotiation should satisfy both sides. Instead, of trying to crush your competition, find out what he or she hopes to get, and try to work together toward a solution that works for both of you. • Don’t concede unilaterally. Usually one side or the other has to give something up. If you offer something, be sure to get a comparable concession from the other person. Giving away something for nothing will be taken as a weakness to be exploited. The playing field needs to be level. You don’t have to accept being bullied. Be ready to walk away. This can take a certain amount of courage, but it’s necessary to avoid being backed into an agreement you don’t want. If possible, keep an ally in reserve – someone with the power to approve or reject the deal. This can give you an out if you need to turn down a deal, or motivate the other side to make the best offer possible. •

Don’t rush. Time can be your friend if you’re willing to wait for the right deal. If the other side senses a deadline, he or she may be motivated to hold out until the last minute, or try to force you into accepting unreasonable terms. Be patient and let the time pressure work against the other side.

• Be ready to walk away. This can take a certain amount of courage, but it’s necessary to avoid being backed into an agreement you don’t want. If possible, keep an ally in reserve –someone with the power to approve or reject the deal. This can give you an out if you need to turn down a deal, or motivate the other side to make the best offer possible. •

Listen. Sometimes what the other side says is not the same as what they want. They say the price is too high, but their most important demand is quality, which almost always costs a little (or a lot) more. Pay attention for cues that will help you direct your response to a better outcome for all. Financier J. P. Morgan once wanted to buy a large Minnesota ore mine from John D. Rockefeller. Rockefeller sent his son, John D. Jr. to talk to Morgan. Morgan asked, “Well, what’s your price?” He was unprepared for the response. Junior said, “Mr. Morgan, I think there must be some mistake. I did not come here to sell; I understood you wanted to buy.” l

Mackay’s Moral: There is no such thing as a final offer.

Harvey Mackay is a best-selling author, international speaker and business guru. His syndicated business articles appear in more then 75 newspapers throughout the United States each week. Mackay has sold more than 10 million books which have been translated into 37 languages worldwide, are distributed in more than 80 countries, and found in almost every library ever built. // bhtmag.com // 21

Profile for Beverly Hills Times

Beverly Hills Times Magazine - The Secrete State  

The Beverly Hills Times Magazine is a door-to-door, monthly publication catering to an upscale clientele. We offer readers an up close and i...

Beverly Hills Times Magazine - The Secrete State  

The Beverly Hills Times Magazine is a door-to-door, monthly publication catering to an upscale clientele. We offer readers an up close and i...

Advertisement