Your financial advisors designation has the ability to tell you a lot about his educational background. The designation can denote backgrounds in various areas of finance, business, insurance, accounting, and law. Common designations in the financial planning field are ChFC (Chartered Financial Consultant), CFP (Certified Financial Planner), CLU (Chartered Life Underwriter), JD (attorney), or CPA (Certified Public Accountant).

Background is, however, only one aspect of a financial advisor.

For example, you might naturally assume that CPAs have greater background in income tax than other professionals. But that’s primarily due to their experience, not their CPA designation. Did you know that the CLU exam has more questions about taxation than does the CPA exam?

As another example, the ChFC exam is clearly a broader and more rigorous exam (and therefore accredited like other colleges and universities) than the CFP designation, though CFP is marketed better and is more popular.

Even areas of specialty don’t mean everything. CPAs, for example, major in accounting. College accounting courses take a historical perspective. They look at recorded historical data — which the CPA then records, puts on a form, and prepares as a financial statement or a tax return. Every business owner should have a good CPA who can assist with financial statements and money management.

But that’s not the same as a financial planner. Even colleges recognize finance and accounting as different majors. Financial planning is applied economics. It takes a futuristic approach. It is analytical and has a long-term strategic perspective. It’s proactive, not reactive.

Over the years, I have found that the absolute worst financial advice comes from journalists. They spend more time and resources making sure that a position is outlandish and sensational, than they do covering sound economic and financial principals. The articles are there to sell papers or magazine, not to provide sound planning advice. You wouldn’t read a medical book to perform your own surgery, so don’t plan your future off of a magazine article.

Designations are an important criterion in assessing a financial advisor. Fully explore the planner’s background and experience. Often the common assumptions of background are not totally accurate as to expertise.

Your credit report is an education for you in your financial history. It is the basis of any decision a lender might make regarding giving or refusing credit to you. It is a smart move to arrange to see your credit report.

The three major credit reporting agencies are Experian, Equifax, and TransUnion. The reports from all three agencies are needed because creditors and lenders may not all report to the same agency and the reports may be different. If you go to annualcreditreport.com you can find out the procedure for obtaining your reports. You can get a free report from all yearly.

The reports will have several sections. Know that there will not be personal private information about your race, worth, or salary included. There will be the usual identifying such as name, address, social security number in the first section.

There will be a section related to any credit lines. These credit lines will include loans, mortgages, credit cards, gas and department store cards. It will give the date each credit line was opened, credit limits, payment history (including late payments), balances, overdrawn bank accounts, and unpaid child support.

The court system also provides information to credit reporting agencies. Such reported information will include bankruptcies, divorce, judgments, and liens.

An inquiry from a credit reporting agency will be made each time you apply for any type of credit. These inquiries will be on your credit report and stay on for 2 years. Also, when you make your own inquiry, it will also be on the report.

It is to your benefit if your credit report is positive. However, any negative information will remain on the report for 7 years. A bankruptcy is on your credit report for 10 years.

Request those credit reports from all 3 agencies. Compare the reports, be aware of discrepancies and fix errors. We have a personal responsibility to monitor our own credit profile, fix mistakes and, if needed, repair our credit.

I’m disappointed, I mean not even the government backed agencies and the gov’t itself are willing to consolidate because the economy is so crappy.

Anyone know any place where I can get a somewhat decent rate? And when I said everyone has closed their doors, even Nextstudent, Myrichuncle the list continues. All because it is not profitable to consolidate.