Smart Money: Timely credit card payments will build credit history

Bruce Williams is a national radio talk show host and syndicated columnist

Dear Bruce: I'm a 30-year-old single male, no children. I have my own repair business. I have never had a credit card and don't have any personal credit. I would like to get some. How do I do that for myself and for my business? C.M., via e-mail

Dear C.M.: Having no credit can be a bigger handicap than poor credit. You might start by applying for a traditional credit card like a Visa or Master Card. If you are not successful, you most certainly would be eligible for a collateralized credit card in which you make a deposit in the institution that issues the credit card in whatever amount of credit you desire.

In the event that you don't pay your bill on time, they will immediately attach your account. This gives you the chance to demonstrate that you are a solid citizen and that you pay your bills on time. As to the business, there are suppliers out there that are hungry for business, and if you give an appearance of solidity, they will extend small amounts of credit from a couple of days to net 30.

Building credit is an arduous process, but it will happen. The main thing to remember is that you can destroy credit in a heartbeat. Be very much aware of that.

Dear Bruce: Company A sold some of its assets to Company B. In doing so, Company A, which has no affiliation with Company B, terminated all of its employees. Company B made everyone reapply for their jobs and hired back about 68 percent of them and put some on standby in case some of the first hires didn't work out.

Company A gave everyone a form stating what their severance package contained. However, those who were rehired by Company B were told that they were not entitled to severance, because they were hired back.

The people who were not hired in the first round received letters saying their application was rejected, but they would be put on standby in the event an opening came up. Now Company A is saying that since they were put on standby, they will not be eligible for a severance package.

One company should have nothing to do with the other. Company A fired us, and what Company B does with us should be of no one's concern. They offered a severance package to us; they should honor that. R.L., Superior, Wis.

Dear R.L.: You have described quite a mating dance. Many companies spin off of assets, rehire people, eliminate seniority and frequently put people on a part-time basis so that benefits are not paid, etc.

Whether or not these manipulations are morally correct is one issue, legally is quite another. If you feel that you are a victim of this maneuvering, and you feel that you have been short changed, you ought to talk to your state department of labor.

They would be in the best position to help you. Of course, you and others who are put in this position might very well choose to get together, pool your resources and hire counsel. Whether or not you will be successful is quite another matter.

Dear Bruce: My parents have been divorced for many years. My mother draws $575 a month from Social Security. Her only expenses are minor utilities, $140 a month for rent and the usual food and clothing. She has no money saved toward her funeral. She has seven children remaining. Who is responsible for paying for her funeral when she passes on? R.P., Muskegon, Mich.

Dear R.P.: If your mother dies a pauper and no relatives step forward to make funeral arrangements, then the social services division of either the city or the county will arrange for her interment. They are unlikely to pay any funeral expenses, i.e., a viewing or services. Social Security will pay about $250 hardly enough for a funeral.

While all of you may be struggling, just a couple hundred dollars per remaining offspring could provide a simple cremation service. If your mom could raise eight children, it would seem to me that those left could put themselves out a bit to provide her a decent final arrangement.

Dear Bruce: I have a part-time tree trimming business. I wanted to go full-time, but things have really slowed down. I used to carry workers' compensation, but I had to drop it because it was too expensive. I have held up on doing work other than what I can do alone.

One of my employees said he would sign a contract and have it notarized that he would accept all responsibility for any injuries to him. If I have him start back to work with me and something happens, could his wife sue me? D.W., Blane, Tenn.

Dear D.W.: Having a contract or affidavit notarized is meaningless. Unless an employee provides you with a certificate of insurance as a legitimate subcontractor, I would not take any chances.