Regional Synod of Canada - Reformed Church in America

Pioneer Christian Monthly

Date - Oct/65

Contributor - Martin DeVos

Title - How Good Is Your Credit?

Topic - Finances

In the world of business it is of prime importance to have a good credit rating. This is necessary in order that one may obtain credit and finances required, not only as working capital in one's business, but also for obtaining loans and other forms of credit. I would like every reader of this article to know that whatever he or she does in regards to meeting financial obligations is being recorded. A credit rating consists of nothing else but a statement setting forth in detail how one has met his financial obligations in the past.

These credit ratings are vital to every person, since by far most of the present-day business transactions are being conducted by extending some form of credit. The family doctor has a medical chart available in his office on which is recorded the physical history of the patient. Likewise the Credit Bureaus have charts on which is written the entire history of one's financial obligations. Whether you are a slow pay, a poor pay or delinquent in meeting your financial obligations, all of this information is available to any member of a credit organization. Every month each credit bureau issues a bulletin to its members which contains a host of information, directly or indirectly influencing ones credit rating. Such as, not responsible notices as they appear in daily newspapers, bankruptcies, division courts' judgments, etc. Lately I have been reading the names Of more and more people of Dutch origin in these monthly publications as well.

The saying is true that one may be able to fool somebody from time to time but you can't fool all the people all the time. It does not take long to become known as a poor credit risk and the tragic part of it is that when one really needs credit assistance, it may not be available or extended because of having compiled a poor credit rating in the past. Often we hear complaints about credit being so readily available. A word of warning here is certainly not out of place.

Use credit wisely because the bills will have to be paid someday, together with interest, very often at a high percentage. The use of credit can either become a wise instrument in reaching one's goal, or a curse by becoming a burden.

It is pathetic to observe the ease wherewith, some people load themselves up with all kinds of financial obligations. Sooner or later trouble starts. It never fails. It is a sad thing that some of those who get into financial difficulties are professing Christians, who should have known better than to get themselves into a financial jam. I'm not referring in this regard to circumstances beyond one's control, but to the fact that financial obligations are assumed and promises of repayment made without serious consideration. Sometimes there is a clear intent to deceive involved as well. Don't think that you can get away by not paying a bill in some small fax-away corner, because credit reports contain in formation not only on financial behaviour in the immediate area of the applicant's residence, but it is also being gathered from anywhere in the Dominion of Canada where the applicant at one time or the other had his address. In my business I have to apply for credit ratings on many people. Some have come from far-away places and although it may take a few days longer for it to get in to my possession, yet after waiting only a few days 1 will know the whole story. If perchance I need the information right away, all I have to do is pick up my telephone and get information on just about anybody within a few minutes. If it is not available locally, at my request the credit bureau will gladly telephone the office where it might be obtained and relay the answer back to me almost immediately.

All the foregoing is to say that it is just plain stupid of anyone to handle his financial obligations carelessly, whether it is a simple purchase in a department store or a substantial loan from a bank or other financial institution. Therefore I would urge every reader to take a very serious look at his financial structure and to examine any account presently in default and to do something about it immediately, either by paying it up or making arrangements for payment. Don't let it go because it will catch up with you sooner or later.

Occasionally credit ratings come into my possession from people who have never borrowed. By talking to them I find that they are stunned to find out that there is about as much hesitancy in extending credit to them as there is to a person with a delinquent account. The reason of course is that everything goes by statistics. When one does not borrow one will not become known. It is therefore sound business to establish your credit rating by borrowing, perhaps at your bank, and not to pay in cash for something you are going to purchase, even though you may be able to, just in order to establish a good credit rating for yourselves

As people of a Dutch background, we were fortunate to bring along to this country a high ethical and religious reputation. It should be our pride and joy to maintain this and to do everything in our power to maintain this. Believe me, in no other field of human endeavour are character and integrity more required than in financial and business transactions. Please keep your credit rating healthy and you will find that asking for credit in a wise manner whenever you need it will not be an embarassment, but something you may confidently expect to be able to obtain.

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