Category: Brandpoint Business & Finance

2019-01-14T06:01:00

(BPT) – If you’ve ever considered getting your MBA, you’ve probably asked yourself: Is it worth it? It’s a fair question, particularly as going back to school as an adult often requires shuffling your priorities so you can make time for class and assignments.

Ultimately, business school should help you accomplish your academic goals and propel your career forward. Some business schools can be expensive, so depending on your needs, it may be a good idea to find programs that are flexible, so you have the ability to work while taking classes.

With so many programs and schools offering MBAs and business courses, it’s important to know what resources to turn to and what features to look for in a program to ensure you receive a measurable return on your investment — financially and professionally.

1. Consider business schools that are ranked by reputable organizations and publications.

Any way you look at it, rankings are critical. A well-regarded business school can help you while networking, job searching and applying for promotions. These rankings are often determined by student surveys and criteria including faculty, technical platforms and career outcomes. Resources like The Princeton Review, Poets & Quants and CEO Magazine deliver helpful annual rankings to guide prospective students.

2. Look for program options that meet your needs.

The ability to take online classes can be a game changer, particularly for working adults who cannot afford to stop working to go to school. Instead of committing yourself to a traditional, brick-and-mortar program, look to see if online courses or other flexible program options are available. For those who consider a salary increase to be the primary reason for enrolling in an MBA program, a recent survey conducted for the Jack Welch Management Institute shows that an online MBA program may be the way to go. Out of the 648 MBA graduates surveyed, 468 reported receiving some kind of raise. Of the 291 online MBA graduates who received a raise, 90 percent reported at least a 10 percent increase in salary. Online students fared slightly better than traditional students — 85 percent of the 177 traditional MBA graduates reported a raise of 10 percent or more.

3. Search for programs that go beyond theory.

Adult students who are working and attending business school can bring an important value to their job. Depending on the school, students can apply what they learn in the classroom directly to their workplace. Choosing a program that integrates current business trends and content with practical application helps ensure students have nearly an immediate return on their investment. Faculty can also play a big role in this approach. Consider programs that provide opportunities to learn directly from faculty with practical experience in business, not just a mastery of theory or research experience.

4. Prioritize programs that build leadership and other soft skills.

According to a LinkedIn survey, the most in-demand soft skills sought by companies are leadership, communication and collaboration, with leadership being the most critical skill. Mary Carr, Dean of Curriculum at the Jack Welch Management Institute, says, “Many careers often stall because while people may have technical competencies and strong business acumen, they lack basic people management skills needed to move up. It’s important to consider a program, such as JWMI, that focuses on leadership development. Our students learn critical lessons often overlooked by traditional business education such as hiring the right people, building great teams, managing conflict and developing an executive presence.” Bottom line: Businesses are looking for skilled employees who can lead people. By selecting a business school that focuses on organizational dynamics, influence and strategic thinking, you will be better prepared to have a positive impact in the organizations and companies you’re a part of throughout your career.

2019-01-14T08:01:00

(BPT) – If you’re like many Americans, retirement planning may not be high on your ”to-do” list. When life is busy and you’re shouldering the burden of looking out for yourself and your family, setting up a retirement plan can slide down the priority list — especially if you’re hoping it will somehow be easier in a year, two or more.

But if you look at the root causes of inertia behind retirement planning, it’s clear how the effects from your behavior can be significant.

Below are some insights to help you get on track and better understand the kinds of behaviors that can get in the way of planning for your financial future.

1. Put simply, it’s overwhelming. Saving for retirement can feel open-ended and ambiguous, in large part because it’s difficult to predict just how much you’ll need. Adding to the stress are many hard-to-anticipate variables, including how long you will live and healthcare needs. The good news is there are on-line calculators that can assist you in determining what your future needs may entail.

2. We can’t see our “future selves.” Researchers have found that people struggle to identify with their future selves, according to a study published in the Journal of Marketing Research. It’s not just young people who have difficulty imagining how long they’ll live in retirement — older Americans also often underestimate how long their retirement nest egg will have to last. Increased life expectancy means we may live 20 or 30 years — or even longer — in retirement. The good news is that companies like Prudential Retirement now offer interactive games like an Aging App to help people better understand how the decisions they make today could influence their futures.

3. We procrastinate planning for retirement. Research shows that for many people, procrastination plays a big role in hindering retirement planning. On average, we spend two hours a day procrastinating. In our busy lives, it’s often easier to daydream about our future than it is to spend time planning for it. The good news is that if you haven’t begun saving for retirement, it’s never too late to begin. Try taking a small step forward and consider setting aside 1 percent of your paycheck for a retirement account. Or, if you already have a retirement account but you’re saving very little, increase your contribution by 1 percent.

4. Budgetary pressures. Families have other future needs to plan for, such as their kids’ college education or saving for a down payment for a home. Add in the immediate need to cover day-to-day expenses, and it always feels like it’s “the wrong time” to save for retirement. The good news is that there is a great deal of information available online to help with retirement planning. Take time to educate yourself and become familiar with the various tools that are available.

The push to make retirement planning easier

“It turns out that many financial companies and employers are acknowledging the psychological barriers that can get in the way of retirement planning,” says Harry Dalessio, head of full service solutions at Prudential Retirement. “Today, many employers have products and solutions to assist with student loan debt and that help employees set aside money for emergencies. Financial counselors are now available in many companies to discuss approaches to help get employees on the right path,” Dalessio said.

In addition, important innovations, such as automatic enrollment, where new employees are automatically enrolled in their company’s retirement plan, have led in many cases to plan participation exceeding 90 percent. Also, simplified products such as target date funds are making it easier for investors to benefit from savings products that are appropriate for each worker’s age and goals. Finally, innovations, such as the ability to use mobile devices and gamification tools, make it even easier to stay engaged.

“Even with these innovations, there is still ample opportunity to think bigger, and make retirement planning more accessible to employees,” says Dalessio.

The bottom line is that it’s easy to underestimate the importance of retirement planning. The good news is that with more tools and innovation, people may be better able to achieve the financial future they hope for as they grow older.

2019-01-02T06:01:00

(BPT) – Unemployment is at its lowest point since 1969 and job openings are at a 17-year high, according to the Bureau of Labor Statistics. With a tightened labor market the competition for candidates with the right skill set is soaring. Yet, many workers lack the skills necessary to pursue new opportunities, suggests a new survey from Prudential Financial, Inc.

The fifth American Workers Survey, conducted in November on behalf of Prudential by Morning Consult, found that more than one in four American Workers say opportunities for career advancement are available to them — but they lack the skills and training for these positions.

The skills gap is even more concerning for millennials — 51 percent say they’re worried a lack of skills or education will negatively impact their career in the next five years.

The biggest barriers to building those skills? According to American workers, access to educational opportunities and financial concerns rank at the top. For millennials, most likely to be new parents, more than half say learning and developing new skills will require access to affordable childcare.

American workers expect the private sector to take the lead in their personal development — nearly four in five say the private sector has responsibility for retraining, and nearly six in 10 expect their employer to help pay for training and new skills.

“Jobs are core to the foundation of American workers’ financial well-being,” said Rob Falzon, vice chairman of Prudential. “Right now, there’s a skills gap emerging. There’s competition for talent, but at the same time, the jobs are changing as a result of disruption. Ensuring workers have the right skill sets to fill these jobs will be paramount for their future financial wellness.”

Companies including Prudential have been addressing this challenge through investments in the National Fund for Workforce Solutions and partnerships with local universities that help shape educational experiences and mentor students for careers in financial services and information technology. Companies are also looking for ways to help tap into new talent pools. For example, Prudential’s program with Workplace Opportunity Services is designed to train and prepare veterans and military spouses for the civilian workforce.

“The future of work is already here,” Falzon said. “Employers need to create opportunities to strengthen our workforce by increasing worker flexibility and mobility.”

Please visit news.prudential.com to learn more about this survey.

The American Workers Survey is the fifth in a series conducted on behalf of Prudential by Morning Consult from Nov. 13 to 16, 2018, among a national sample of 1,919 self-identified part-time and full-time employed adults (age 18 and over). The interviews were conducted online, and the data was weighted to approximate a target sample of adults based on age, race/ethnicity and gender. Results from the full survey have a margin of error of ±2 percentage points. Percentages may not total 100 percent due to rounding.

2018-12-20T07:01:01

(BPT) – Ever since the dawn of credit reporting, the information has looked relatively the same. Your lenders reported information to one, two or all three of the national credit reporting companies (CRCs) based on your most recent loan payment activities and balances.

This method of reporting is informally referred to as a “snapshot in time” because your credit reports represented information based on any one single day in your credit lifecycle.

And because credit scoring systems consider the information on your credit reports at the exact time your credit report is accessed or “pulled,” your scores are also based on a snapshot in time and not necessarily the actual balances on your credit accounts that particular day. The credit reporting and scoring systems have operated under that structure for the better part of the last three decades.

Newer credit report data

Over the past several years the CRCs have been collecting and maintaining information that represents how you manage your balances and payments over time. This information is formally referred to as “trended credit data” or “time series” data.

The information includes the chronology of your balances, your minimum payment requirement and often your actual payment amount. For example, reports and the scoring models based on them can now decipher between whether you have an account with a balance averaging $4,000 over the past six months versus someone who charged the same amount just in the previous month but normally has a lower balance.

This represents a considerable upgrade in credit report information. Rather than a credit report representing a snapshot in time, it now represents your most current balances and payments for the past 24 months.

How trended credit data can help my scores

Credit card users who pay their bill in full each month don’t pay interest. So, there’s a tremendous savings to never revolving a balance. But it can also improve your credit score if the scoring model leverages trended credit data. That’s because those who pay off their balances every month can be identified and rewarded for practicing this positive credit behavior.

A model that includes trended credit data also takes into account whether a consumer makes payments above the minimum amount required. So if you make payments on your car loan for more than is minimally required, your score could improve.

The most current version of the VantageScore credit score, VantageScore 4.0, does utilize trended credit data on your credit reports, and it is available to lenders now.

The impact of holiday spending

According to a recent poll from VantageScore Solutions, 37 percent of 2018 holiday shoppers plan to use credit cards for their purchases. That’s great because you have very consumer-friendly fraud protections when you use your credit cards … plus you might earn points and rewards! The drawback, of course, is the temptation to overspend and end up with large credit card balances going into the new year, making a payment for the full amount due challenging.

Large credit card balances can result in lower credit scores. The reason is because of the credit scoring metric known as “revolving utilization,” which represents the percentage of your credit limits that have been used. According to the same VantageScore poll, the issue of utilization is not an unknown. Indeed, 84 percent of the poll respondents acknowledged understanding that spending a high percentage of their credit limit can hurt their credit scores.

Here’s where a credit score that considers trended credit data can help you relative to a credit score that does not. If you historically pay your credit card in full, or pay more than the minimum consistently, your holiday overspending won’t result in as profound of a score impact. The reason: The credit scoring model recognizes that your holiday shopping is atypical relative to the other months because it can see and consider how you normally use your credit cards.

If the scoring model only considered the snapshot in time after your holiday spending spree, it would factor that balance in and potentially cause your score to drop.

The ethical credit score hack

A logical question at this point would be, “what can I do to protect my scores during the holiday season if a lender isn’t using trended credit data?” The answer is to use your credit card but make several payments during the month. You don’t have to wait until the due date to make a payment on your credit cards. You also don’t have to wait until the statement shows up to make a payment.

Assuming you haven’t charged anything more, making multiple payments during the month will ensure that when your statement is generated it will have a lower balance. Since the balance from your statement is what’s reported to the credit reporting companies and factored into your credit score, you’ll go a long way to protect or even improve your score.

And the best benefit? You either won’t pay any interest on your credit card or the interest you pay will be as minimal as possible.

2018-12-12T06:01:01

(BPT) – More people are doing their holiday shopping online than ever before. Last year consumers spent $453.46 billion on the web for retail purchases, which was a 16 percent increase over 2016. Unfortunately, when it comes to online shopping, people are more concerned about finding the lowest price than potentially jeopardizing their personal cybersecurity in the process.

A concerning 56 percent of people are willing to use a website they are unfamiliar with if this means they can save money on their purchases, found the Holiday Stresses survey from McAfee, the device-to-cloud cybersecurity company. Even worse, 31 percent admit to clicking links in suspicious emails for better deals.

The risky online behavior doesn’t stop there. People are using public Wi-Fi to complete online purchases and are less critical of websites that offer what they are looking for at lower prices. Why? The survey found that 53 percent of online shoppers believe the stress of the holiday season can cause them to behave carelessly online.

“For most people, the holiday shopping season is a stressful time of year, especially from a financial perspective. With added stresses and distractions, people often let their guard down when it comes to their digital security, which can lead to risky consequences,” says Gary Davis, chief consumer security evangelist at McAfee.

Criminals understand this situation and use it to their advantage. Being a victim of a cybercrime is not a jolly way to spend the holiday.

“Cybercriminals know that people are less focused on security measures during this time and use that to their advantage,” says Davis. “By taking the proper steps to protect themselves and being wary of deals and offers that appear too good to be true, consumers can enjoy a safe holiday season.”

To protect yourself this holiday season and all year long, keep these safe online shopping tips in mind from Davis and the other security experts at McAfee:

Connect with caution. Using public Wi-Fi might seem like a good idea in the moment, but if consumers are not careful, they could be unknowingly exposing their personal information or credit card details to cybercriminals who are snooping on the network. If public Wi-Fi must be used to conduct transactions, use a virtual private network (VPN) to help ensure a secure connection.

Think before you click. One of the easiest ways for a cybercriminal to target victims is by using phishing emails disguised as a holiday savings or shipping notification, to lure consumers into clicking links that could lead to malware, or a phony website designed to steal personal information. Instead of clicking on a link in an email, it is always best to check directly with the source to verify an offer or shipment.

Browse with security protection. Use comprehensive security protection, like McAfee Total Protection, which can help protect devices against malware, phishing attacks and other threats. It includes McAfee WebAdvisor which can help identify malicious websites.

Use a tool to help protect your personal information. A solution like McAfee Identity Theft Protection takes a proactive approach to help protect identities with personal and financial monitoring and recovery tools to help keep identities personal and secure.

 

2018-12-11T08:01:00

(BPT) – Picking a cellphone plan is like picking toppings for a pizza ­— everyone has different preferences. Some people only need a basic plan for making a few phone calls now and then. Others find their cellphones absolutely indispensable, and need access to a steady and fast stream of data all the time. It takes multiple ingredients to satisfy everyone!

Gather facts about usage

In order to find a cellphone plan that is right for your individual needs, it is important to assess your usage. This will help to ensure you don’t end up paying more than you need to for a package that is designed for heavier users. It will also ensure that, if you are a heavy data user, you don’t have to worry about running out. The easiest way to accurately assess your needs is to take a look at a previous invoice. You’ll see the amount of data, minutes and messages you’re using.

You can also look at data usage on your smartphone. For iPhone users, go to Settings, then Cellular, and scroll down to see how much has been used in the current period. For Android users, go to Settings, then Data Usage, and scroll down to see what you’ve used. If you’ve never reset the meter, you may want to reset it and then check back on it a short time later, such as a week or a month. Keep in mind that if you’re accessing Wi-Fi at home or at the office, you are not using data from your cellular plan, so factor this into how much data you really need.

Consider the options

Once you understand what you really use, compare it to what’s included with the wireless plan you’re on. If it offers too little, or way more than you’re actually using, see if different cellphone plans are available that fit your specific needs better, and more affordably.

While many larger carriers now push you toward expensive “unlimited” plans, a company like Consumer Cellular offers a range of low-cost plans designed to fit every type of user, from a simple 250-minute talk-only plan to plans including unlimited minutes and up to 20GB of data each month. Best of all, they’re completely flexible — if your needs change, you can switch plans right up to the last day of a billing cycle with no extra fees for doing so. They also automatically upgrade your plan if you go over your data usage, so you get the best rate for what you actually use, rather than paying a penalty, or having to carry a costly “unlimited” plan just to prevent going over.

There’s something for every taste

And don’t forget about the advantages of having a family plan. You can add lines to your account to share the minutes, texts and data on your plans and save on the expense of everyone carrying their own service. But shop wisely; each carrier will handle additional lines a little differently, with some major carriers simply doubling your bill if you add another user, while others offer more economical options.

There are a wide variety of cellphone plans available to suit all requirements, preferences and budgets these days. Don’t settle for pepperoni when you really want peppers and mushrooms! All you have to do is determine your needs and then look for the most suitable cellphone plan to get what’s right for you.

2018-12-06T06:01:01

(BPT) – This time of year, family and friends gather to celebrate the holiday season. It’s a joyful time, but it can also be stressful — especially if money is tight. Financial expert and author Eva Macias, who specializes in leveling the financial playing field for all families, regardless of income, says that it’s possible for people to de-stress and enjoy the holidays even if their budgets are stretched thin. All it takes is a strategic, bargain-hunter’s mindset.

“The holidays don’t have to be a strain on your family’s budget,” she says. “You just need to spend wisely, look for deals, and realize you don’t have to do it all yourself. The holidays should be a time to enjoy being with family — not stress about money!”

Macias’s top tips and tactics to save money this holiday season include:

1. Sign up for Amazon’s discounted Prime membership. If you’re an EBT cardholder or Medicaid recipient, you can get all the benefits of an Amazon Prime membership for the discounted price of $5.99 per month. The majority of US Prime members have access to free one-day delivery or faster, while all receive the best of entertainment through Prime Video and Prime Music; Prime Reading; Prime Photos and more; with the ability to cancel anytime. I highly recommend signing up — it will save you money and time, not only during the holidays, but also all year long! You can learn more and try out a free 30-day trial at http://amazon.com/qualify.

2. Create a budget for your holiday spending. A budget will be your best friend during the holiday season. Figure out how much you can spend without going into or increasing your debt. Once you get this total, split it up equally among the people you are buying gifts for this holiday. A common pitfall to setting a holiday budget is making it too tight, so give yourself some leeway for unexpected costs that pop up.

3. Shop with Amazon Cash. Making purchases with cash is a savvy way to stick to your holiday budget as it makes you more conscious of what you’re spending. So, try using Amazon Cash instead of your debit or credit card. It’s a simpler way to shop and will help you limit your spending, plus you will still get access to Amazon’s great deals and prices. You can visit more than 30,000 participating stores — including pharmacies like CVS and convenience stores like 7-Eleven — to add cash to your Amazon balance. This method is quick, easy and has no fee. Plus, for a limited time, you can get a $10 Amazon credit when you add $40 to your Amazon Cash balance.

4. Scout out deals. Look to purchase gifts big and small by regularly tracking deal offers from retailers. Amazon’s Lightning Deals offer new deals daily that help you save money and allow you to find the best prices on items you need, want and love, while ‘watch a deal’ alerts ensure you never miss out on a discount!

5. Take advantage of subscriptions. Families can maximize savings this season by enrolling in programs such as Subscribe & Save, which allows you to subscribe to items you frequently buy (such as diapers, baby food and household products), and have them shipped to you for free on a regular basis. You’ll not only save up to 15% on these purchases, but also save time and energy used on trips to the store.

6. Not in a hurry to get your package? Earn rewards with No-Rush shipping. A little-known Prime perk for those who don’t need their order right away is that selecting the No-Rush shipping option earns you rewards and discounts on future purchases. Rewards are automatically added to your Amazon balance so you can start saving without adding anything else to your holiday season to-do list.

With a little planning and preparation, you can stretch your budget through the holidays and lower your stress level in the process. And here’s a bonus tip: You don’t have to stop any of these tactics when the new year begins. It’s great advice for anyone looking to start fresh and save money in 2019 too!

2018-12-05T17:41:00

(BPT) – The arrival of the holidays brings with it a whole host of considerations and things to do. According to a recent survey by Chase, eight in 10 Americans say they have holiday stress. Whether you’re out to find the perfect gift, or just entertain the kids as school winds down, the common denominator is the holiday season sees Americans strapped for time and spending more money than at other times of the year. 

With all the season’s craziness, it can be easy to let important to-do’s slip through the cracks. With proper planning, and a credit card provider that has your back, options abound for making sound decisions even in the face of increased spending. Chase is there to make sure you have one less thing to stress about when holiday crunch time hits. 

Chase offers consumers options for saving money throughout the holiday season. Chase Financial Education Ambassador Farnoosh Torabi says money-conscious consumers can shop smarter, offering tips that consumers can keep in mind while they’re in-store. 

“If you pay with Chase, there is one less thing to worry about when you’re shopping and gifting this holiday season,” Torabi said. “Chase has made it easier and quicker to redeem your points for gifts, keep track of your cards and ensure a safe, secure check-out experience.” 

As many Americans look for deals and coupons after Thanksgiving, Chase provides customers convenient ways to save money right on their phones. 

“Before you even get to the store, gear up for great deals with Chase Offers,” Torabi said. “When you log into your Chase Mobile app, you can select offers from top retailers, add them to your card, and automatically get a credit when you shop in the store — no coupons or vouchers needed!” 

Recent findings also show that more than half of Americans say they are gift card givers when under pressure. In that event, shoppers should keep in mind that there are several opportunities to make the most of your money by redeeming credit card rewards. 

“If you earn points through Ultimate Rewards, you have a lot of flexibility to use them for gifting,” Torabi said. “Through the Ultimate Rewards site, you can get a gift card to popular merchants, use them to purchase Apple products, and even use them at checkout when you use the Chase Pay mobile wallet.” 

Money isn’t the only concern of Americans during the holiday season — there’s time, too. As the holidays wind up and the frenetic pace of family and fun begins to set in, Americans begin looking for ways to save time so they can enjoy the things that mean the most. In fact, one-third of Americans (34 percent) say that the holidays can leave them strapped for time so they use points to get gift cards for family and friends. 

“Shoppers should also keep the Chase Pay app in mind,” Torabi said. “Imagine you’re out shopping for holiday gifts and your hands are full of everything from toys to wrapping paper — and even your kids! Instead of rummaging through your bag to find your wallet, the Chase Pay app allows you to pay with your phone.” 

Between the office parties, family and friend get-togethers and rushing to stores for last-minute gifts, you may wind up forgetting something. If you leave your card behind or misplace it, Chase credit cards now have a lock/unlock feature. From your phone or computer, you can instantly block new purchases, cash advances and balance transfers the moment your card isn’t in your wallet.

Check out chase.com to learn more. And if you want to check out Chase Offers, go to chase.com/chaseoffers.

2018-12-05T17:31:00

(BPT) – The economy has changed considerably since the recession. Unemployment is at record lows and the market is flush with opportunities for workers of every level. While it is certainly good to live in the present, it is also important to plan for the future, and research shows that many people are not saving sufficiently to live life at their current standard when they retire.

A recent study finds that 52 percent of American households are at risk of not being able to carry their current lifestyle into retirement. This is an increase from an estimated 45 percent of households in a 2004 study. The estimated retirement savings shortfall amounts to roughly $6.4 trillion.

This dramatic number isn’t solely the result of negligence. In fact, in many cases a lack of financial education is a major contributor. Many adults today actually know little about retirement planning because they weren’t educated on the topic during high school or college. For example, many people don’t realize that an individual retirement account, continuously funded at $3,000 per year — starting at age 20 and based on an estimated rate of return of 8 percent — will yield $1.16 million when they retire at age 65. That same account — started at age 30 instead — will only yield $517,000 at age 65. 

All of this underscores the importance of being smart with your retirement planning and adjusting your strategy based on your age. A good financial planner can help you do all of that. To find the right financial planner to help you prepare for retirement, the National Association of Personal Financial Advisors (NAPFA) offers these tips.

* Look for a planner who is a fiduciary. Planners who are fiduciaries have a duty of loyalty to their clients and a duty of care. The duty of loyalty means they must always consider their clients’ interests above their own, even if that interest negatively impacts their own income. The duty of care means an advisor must care for clients as though they were loved ones and provide them with prudent advice. Look for a planner who is a fiduciary and put that duty of care to work for you. You can learn more about how to find a fiduciary advisor at napfa.org/financial-planning/fiduciary-101.

* Focus on experience. Your retirement future isn’t something you want to leave to someone without the proper credentials. There are more than 100 professional designations in the financial services industry, but only a few of them truly indicate a professional’s ability to do holistic financial planning. Look for planners with the CFP(R) certification. This certification means a financial planner has met rigorous professional standards and has agreed to adhere to the principles of integrity, objectivity, fairness, confidentiality, professionalism and diligence.

* Focus on financial planning. Your financial future will be dependent on a sound financial plan, so look for a professional who focuses on true financial planning. Ask your planner if they have ever written a financial plan and what the plan might look like for you. Holistic financial planning includes tax planning, education planning, estate planning, retirement advice and more.

* Ask how your planner will minimize and disclose conflicts. Your planner is not just a professional entity, but also a person with personal interests and business dealings. This means that no matter which planner you select, there is a chance that your planner’s personal dealings could create a conflict with your financial decisions. That’s OK and normal. The key is to find a planner that will minimize conflicts and disclose any conflicts to you ahead of time. Ask potential planners how they will handle such a situation and don’t take “It won’t happen” for an answer.

* Are they compatible with you? This last quality is certainly one of the most important. How comfortable does the planner make you feel? As you speak, do you feel the planner understands your goals and is a person you could trust long-term? Over the course of your relationship you will share plenty of personal information with your planner, and entrust them with your financial future. Listen to your gut and choose a planner you feel comfortable with.

Start your planner search today

Living the life you want in retirement is possible if you start planning for it now. The right financial planner can help you realize your goals, so don’t delay in finding the right planner for you. Visit NAFPA.org for more consumer resources on how to find the right planner for you today.

2018-11-27T15:05:00

(BPT) – Every employee these days knows that, when being offered a job, it’s common to have your prospective employer run a background and credit check. Even if the employee isn’t in the cash room counting the day’s take, negative items on a credit report can raise a red flag about the employee’s decision-making skills and degree of responsibility.

But, if you own the business, your credit is a nonissue, right? That’s a common misconception among many new entrepreneurs. Here are some of the ways your credit score, and that of your business (wait, my business has a credit score?) can impact your operations and bottom line, from the credit experts at VantageScore.

How personal credit scores are different than business credit scores

The two scores are not measuring the same thing. Personal credit scores, like VantageScore 4.0, measure the likelihood you’ll fall behind on your bills or have some other negative financial behaviors over a time horizon. Business scoring models are often different and are trying to predict different behaviors. For example, business credit scores commonly predict how many days the business will take to pay. Businesses are also scored using a different scale. Personal scores typically run on a scale from 300 to 850. Generally, if you’re 650 or above, you’re OK. Anything below, and you’ve got work to do. Business scores often don’t have the same scale. They range from zero to 100 in some reporting agencies and from zero to 300 in others.

Why personal credit scores are important to starting up a business

For a new entrepreneur, especially if you’re a sole proprietor, having a strong personal credit score could mean the difference between receiving optimal financing for the business and not getting the best rates. If you get a business loan, your personal score will really be important. It can also help in smaller ways, like getting a cell phone plan for the business without a hefty deposit. Even if you’re a more established business owner, maintaining strong personal credit, along with strong business credit, is important as well. You may need additional funding down the line, or want to buy your own storefront. Strong credit makes the world go round.

Scores like VantageScore 4.0 also use trended credit data, which can indirectly help your business. For example, if you charge significant amounts on your personal credit card for business expenses, but do not pay off those charges in full, you aren’t penalized the same way as with more conventional models.

How to get a business credit score

It doesn’t just happen. You must incorporate, get an Employer Identification Number, and obtain a DUNS number from Dun & Bradstreet. Your Employer Identification Number is one of the keys to business credit and is your credit profile number. You’ll have to begin to have financial, vendor or trade accounts that are reported to one of the many commercial credit reporting agencies.

How to build a strong business credit score

Pay your bills on time, establish vendor credit, keep your debt at a workable level, and have good cash flow and reserves. The longevity of your business also comes into play when calculating its score. For new businesses, the lack of longevity can bedevil their scores, but keep at it. The longer you’re in the black, the better your score will be.

How to monitor it and why it matters

As an individual, you’re allowed one free credit report from the three national credit reporting agencies every 12 months. With business, it’s different. Business owners can monitor their scores by contacting commercial credit reporting agencies and often pay a fee to get their full reports. Do this regularly and look for errors in your business credit reports that could impact business scores.

Hiring employees and credit

When hiring employees, it’s common to do a background and, in some cases, credit check. It’s especially important if the employee will be handling money, because impropriety in your cash room or in the till can affect your business adversely, wreak havoc with your bottom line and ultimately affect your business credit score if the theft is so bad it impacts your cash flow or your ability to pay vendors. Credit scores are not included in the employer-requested credit report (and the credit reports can only be obtained with permission from the employee or prospective employee).

Company credit cards

Using a company credit card is a great way to build positive credit for your business. Using your business card for business is a win-win for you because you protect your personal credit and grow your business credit at the same time. But as with personal credit cards, keep your business card’s utilization low.

For additional reading about business credit, here are some resources from the pros at VantageScore.