TRIBAL PROGRAM NEWS
Is Credit the Question ... or Maybe It’s the Answer
by Lisa Norton
As many of you are aware, we
recently launched the Business Loan
Program and one question that has
come up concerns credit.
“How important is my credit in the
loan program?” The answer is that
it’s very important, not just to the loan
program but to your life in general. That
question, and a bit of encouragement
from a friend of mine, led me to write
this article.
I’ve been the Business Information
counselor for almost two years and the
question of credit comes up constantly.
We’ve gone from a society where
business deals (whether forming part
nerships or lending money) were based
on character and a handshake to a
society where oftentimes the value of
our worth is based on what seems like
a mythically assigned number.
Yes, I’m talking about your Beacon
Score. These scores are supposed to
measure how likely you are to repay a
debt and are a key factor in determining
if you can get credit (and at what cost).
Scores run anywhere from 0-850, with
700* being very good.
To most of us, this seems imper
sonal and unfair. To someone who may
not know you very well, however, it
may be the deciding factor when
determining whether or not to give you
a loan, rent an apartment to you, or even
offer you that dream job you’ve always
wanted. I guess what I’m saying is that,
like it or not, this score is important.
The next likely question is, “How
do I get a good Beacon Score?”
Unfortunately, no one just gets a good
Beacon Score - it has to be earned. This
is both a simple and complex process
at the same time. The complex part is
how they arrive at this Beacon Score.
It’s made up of points assigned in five
different categories and then totaled.
These categories and the percentages of
the total score are:
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Payment History (approx. 35
percent). This addresses how well
you have paid your bills in the past.
Amounts Owed (approx. 30
percent). This is how much money
you owe vs. how much money
you have vs. how much credit you
have available.
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Siletz News
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Length of Credit History (approx.
15 percent). This category rates
how long you have had credit.
New Credit (approx. 10 percent).
This section includes how many
new accounts you have, how long
since you opened them, and even
how many requests have been made
for your credit report (including
those credit applications you’re
pressured to sign when you’re
looking at new cars or anytime you
apply for credit).
Types of Credit (approx. 10
percent). The scoring agency is
concerned with whether you have
a good mix of credit. This means
that you don’t have just credit cards,
but rather, you have installment
loans and maybe even a mortgage.
Of course, no one is going to tell
you exactly how they score, but you can
see that the Beacon Score considers
many different things. Because they
consider all of these things, it’s
important that you do too, which brings
me to the simple part of earning a
good Beacon Score. Based on the
information above, here are some things
you should do:
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Pay your bills on time!
Limit yourself when applying for
credit. Don’t apply for a card just
because they sent you a letter saying
you’re pre-approved. Be careful
and know what you can afford.
Pay your balances off quickly and
pay more than the minimum bal
ance when possible (this also saves
you huge amounts of interest).
If you have old accounts you don’t
use anymore, close them.
Know when you’re applying for
credit. For example, when you go
to the car lot, don’t sign anything
until you’re ready to buy.
Know your Beacon Score and know
how important it is to maintain a
good score.
These are just a few things you can
do. A lot of information is available and
I encourage you to ask questions and
learn more about your credit.
Finally, it’s important to have
regular credit checkups. Just like going
November 2003
to the doctor for your yearly physical,
it’s important to look at your credit
report on an annual basis.
Initially, you should order a copy
of your credit report from each of the
three major credit bureaus (Equifax,
Trans Union, and Experian). It does cost
money, but it’s important to review each
one. Here’s the contact information:
Equifax Corporation
P.O. Box 105873, Atlanta, GA 30348
1-800-685-1111; www.equifax.com
Trans Union Corporation
P.O. Box 390, Springfield, PA 19064
1 -800-916-8800; www.transunion.com
Experian
P.O. Box 2350, Chatsworth, CA 91313
1-888-397-3742; www.experian.com
You’ll want to carefully review each
report for errors, things that have been
on there too long, or anything else that
may not make sense to you. Often, phone
numbers are included to call the report
ing company if you have questions.
This review is to look for errors and
inconsistencies. It isn’t to “fix” your
credit reports. Often, you see companies
that you pay to “fix” your credit report.
This is a waste of money and not likely
to be successful. If it’s your credit and
it’s valid, then no one can take it off.
If you find any discrepancies, you
should notify the credit bureau in writing.
It will initiate an investigation and
notify you of the determination. After
you do this, all you need to do is review
these credit reports every year to make
sure things don’t change drastically.
I hope this information has been
useful. If you have any questions, please
contact me at 1-800-922-1399, ext. 255,
or 541-444-8255.
Some information in this article has
been adapted from the Cincinnati
Police Federal Credit Unions Web site
at www.copfcu.com.
Firewood Available for the Winter
The South Fork #2 firewood unit,
located about 11 miles from Siletz, once
again is open for tribal member
firewood cutting.
The available wood is a mixture of
conifer and hardwood located in a deck
at a landing. This is what’s left from the
same area that was open earlier this year.
Permits are required and can be
obtained at the tribal Natural Resources
office in the admin building in Siletz
from 8 a.m. to 4:30 p.m. weekdays.
Maps and directions are available
at the same location.
Permits will be
issued only to tribal
members, who will
need to show their
tribal ID card and
provide the license
number of the vehicle
they will use to haul
the wood. Because
of the steepness of the access road, it’s
strongly recommended that a four-
wheel-drive vehicle be used to access
the unit.
Out-of-the-Siletz-area woodcutters
may call the number at right to have a
permit mailed to them. The permits are
for tribal member woodcutting for
personal use only. This firewood may
not be sold.
The person named on the permit
must be present when cutting and
hauling the firewood. Tribal members
wishing to cut wood for tribal elders
must present a signed note from the
elder stating that the
individual is authorized
to cut firewood on
his/her behalf. The
note must include
the elder’s tribal ID
number.
Permits will be good
for two weeks and will
allow up to two cords of
wood to be cut on each
permit. Each tribal
member is allowed
up to four cords total
from this unit. This is
the only firewood area that will be open
until late winter or early spring.
For more information, stop by the
Natural Resources office or call Tribal
Forester Mike Kennedy at 541-444-8232
or 1-890-922-1399, ext. 232.