An Advisor Seeks Advice

Learning a lesson in credit history

Since earning his bachelor's degree from ASU, Beethoven Felix has been working as a GED advisor, helping high school dropouts get their diplomas.

"I help people every day," says Beethoven. "When my sister encouraged me to let someone help me for a change, I thought, 'She's right. I should.' It's a complete role reversal for me but I took her advice and called NHS Phoenix."

At 28, Beethoven realized that paying rent was gaining him nothing. With his work history and steady income, he thought he was ready to buy a town home or condo of his own.

NHS Phoenix Housing Counselor Rachel Regalado didn't deliver the best of news. "Rachel pulled my credit report and started pointing out problems," says Beethoven. "I was really surprised to see a couple of large charge offs—one for $3,000 and another for $4,000—that weren't mine!"

So Beethoven took Rachel's advice. With a copy of his credit report in hand, he called the credit card companies only to learn that a friend had included him on credit card applications without his knowledge. Even worse, she didn't pay her bills.

Using the sample letter that Rachel gave him, he wrote to the credit bureaus to dispute the charge offs. "The errors were fixed within a month," says Beethoven. "That was a relief. Now I need to start saving."

According to Rachel, the savings habit will show his mortgage lender that Beethoven won't have a problem with payment shock when the time comes to make a monthly house payment. Over six months, he'll also have a good down payment.

"Rachel was great," says Beethoven. "Bold. Just like my sister, she cut right to the chase and didn't sugarcoat anything. It's exactly what I needed."

Credit is something that Beethoven had always taken for granted. "I think a lot of people do," he says. "But I won't anymore. I'll be paying attention in the future, and I'll be saving rather than spending. I'm already watching every cent."

"He can do it," says Rachel, encouraged by Beethoven's quick progress. "Six months from now, after establishing a savings habit and accumulating a down payment, he'll be ready for that town home. Our Financial Fitness classes will help him stay focused."

Beethoven's credit problems are already history. Rachel knows that Beethoven is writing the next chapter in his own history right now.

From the Summer 2006 issue of DoorWays