2013 Board of Directors
Bruce Gottschall,
President Patricia Abrams, Vice-President Ofelia Navarro, Secretary Lawrence Grisham, Ex-officio Director Calvin Holmes, Treasurer Joy Aruguete Joel Bookman Pamela Gecan Edward H. Jacob Michael Jasso Brenda Palms-Barber Rosanna Marquez Robert McGhee Guacolda Reyes William W. Towns Marva Williams Staff
Kara Breems, Executive Director Teresa Lambarry, Outreach Director |
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Dear CCLT Homeowner,
You must be asking yourself, "why so many articles about credit?" Well, it's because I cannot emphasize enough how important good credit is.
To creditors your credit is a reflection of how well you manage responsibility. It was important to have good credit in order to purchase your home/unit but it is equally important to keep working on your credit after your purchase.
This month, we asked Mary Morstadt from Standard Bank, one of our Partner Lenders, to write a column for you on credit, including tips to rebuild bad credit. I hope you learn something from Mary's article - I did!
Also in this newsletter, we share some information on some of the many fun, free events happening in Chicago this summer.
Enjoy the summer and hope to see you out there!.
Sincerely,
Teresa Lambarry
CCLT Outreach Director
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As a homeowner, your credit was approved by your mortgage lender in order for you to purchase your home. Paying your mortgage loan on time every month will continue to strengthen your credit.
Credit building should be ongoing. You will continue to need good credit to obtain other types of loans and credit cards. Insurance companies use credit to determine premiums. Many employers review credit as part of their hiring decisions. If you are an authorized user on another person's credit card and they are behind on their payment, it will impact your credit negatively unless you contact the company to remove your name.
Fair Isaac and Company, better known as FICO, created credit scoring. Your on-time payment history is the biggest factor (35%) in your FICO score. The amount you owe comprises 30% of your score. The length of your credit history is 15%. The type of credit you have and new credit added recently each comprise 10%.
If you would like to increase your credit score, certain banks offer Credit Builder products. These products provide you positive bank loan reference and creates a savings account asset at the same time. A Credit Builder program offers shorter term loans in amounts typically ranging from $1,000 to $5000. The loan proceeds are deposited into a savings account in your name, that you can access after making regular payments to repay the loan. When your payments are completed, the savings account with interest earned is released to you.
Important questions to ask about Credit Builder programs include:
1. What cash do I need in order to open a Credit Builder account?
Note: there are accounts available requiring no cash from you.)
2. How much is my monthly payment?
3. How many payments are there?
4. Are there credit or income requirements? (Note: there are accounts available for most credit situations except an open bankruptcy that has not yet been discharged and with no minimum credit score.)
If you have friends or family who are thinking of purchasing a home, but need to build or re-build their credit, a Credit Builder program may be the answer for them. It would also help them save the funds needed for down payment and closing costs. For an existing homeowner, it can help save funds for a major purchase, a small business, or other investments.
In general, being aware of your credit and what you can do to strengthen your credit foundation is important for you, for your family, and for your future.
Author: Mary Morstadt, VP/CRA Manager - Mortgage, Standard Bank and Trust Co., 7800 West 95th Street, Hickory Hills, IL 60457, 708.499.2062, ext. 2317, Mary.Morstadt@standardbanks.com
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1. Know what is in your credit report. It has been estimated that up to 79% of all credit reports contain errors. You have the right to a free credit report from www.AnnualCredit
Report.com
or (877) 322-8228, the ONLY authorized source under Federal law.
2. Request correction letters for any reporting errors.
3. Bring active past due accounts current and keep them current.
4. Keep account balances as low as possible, below 25% of credit limit if possible.
5. Do not close exisiting accounts; it is important to have older accounts.
6. Limit applications for new revolving debt.
7. When you need credit, consider quality lenders (such as banks) first.
8. Open checking and savings accounts if you have not already done so.
Author: Mary Morstadt, VP, CRA Manager- Mortgage, Standard Bank and Trust Co.
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Learning Opportunities from our Partners
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If you want to learn some new skills this Summer the Rebuilding Exchange has some really interesting classes to offer (note that there are fees!). They include:
Woodworking
1 DAY CLASSES, 4 WEEK SERIES CLASSES & OPEN SHOP
Make It Take It workshops are hands-on and give you the opportunity to learn tool proficiency, while making something from reclaimed lumber that you can take home that day.
The 4-week woodworking series offers a more in-depth education in woodworking. Over the course of 4 weeks, you will learn basic woodworking concepts, build tool proficiency and create an item out of reclaimed lumber to take home, upon the completion of class.
Home Improvement DIY
Classes in this series provide practical advice, considerations, and demonstrations in improving your home, while making it more environmentally sustainable. Classes range from learning about weatherization techniques to how to remodel using reclaimed building materials.
Homesteading DIY
Classes in this series provide practical advice, considerations, and demonstrations on how to live a more sustainable, off-the-grid lifestyle. From canning food to repairing household items and beyond, this series will give you the tools you need to homestead in the city.
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Get Involved in Your Community
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It's Summertime! Time to take advantage of free, fun activities in our great City. We've highlighted a few for you here:
Taste of Chicago! This festival is the nation's premier outdoor food festival showcasing the diversity of Chicago's dining community. The delicious array of food served at Taste of Chicago is complemented by music and exciting activities for the entire family. Every summer since 1980, Chicago's beautiful Grant Park on the City's magnificent lakefront has been home to the world's largest food festival. Don't miss out on the opportunity for great food and great entertainment!
Summerdance! The City of Chicago invites you to join them this summer as the Spirit of Music Garden in Grant Park blossoms into an urban dance space. Dance to the sounds of 44 different live bands and get into step with dance lessons beforehand. Glide across the restored 4,900-square-foot,100 percent recycled, open-air dance floor designed by Chicago artist Dan Peterman. Swing, waltz, cha-cha...or simply enjoy the music.
The Chicago Park District sponsors Movies in the Parks almost every night. Click this link for dates, locations and times.
Millenium Park has free concerts nightly. Listings are here.
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Community and Ward Information
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CCLT homeowners live in the 2nd, 3rd, 26th, 27th, 28th, 35th, 46th, and 49th Wards. Click the links below for information regarding your Alderman, your Ward, and your Community, including links to City events in your Ward! If you are in a different Ward or do not know what Ward you are in, please give me a call or shoot me an email and I will let you know.
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Event Calendar
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Click here to visit our calendar or for information on Post Purchase CCLT homeowner classes and workshops sponsored by our partners that are available at no cost. |
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