December 2002 (Newstream) -- A lack of understanding about credit and language hurdles are the biggest barriers to homeownership for Hispanics and other minorities. But now there is help.

Freddie Mac is launching a new nationwide consumer education initiative to help Hispanics build, manage and maintain good credit. Called CreditSmart Español, the community outreach program will teach prospective minority homeowners in a classroom setting with a bilingual teacher. The program is part of Freddie Mac's "Catch the Dream" initiative -- designed to help minorities gain homeownership and contribute to government homeownership goals. The White House hopes to add 5.5 million more minority households nationwide by the end of the decade.

Some of the tips from CreditSmart Español include:

• Pay your bills consistently and on time.
• Always pay more than the minimum payment.
• Keep credit card balances low.
• Check your credit report and correct any errors.
• Do not consider a credit card an emergency fund.
• Develop a budget and stick to it.
• To establish a credit history, keep your money in a bank, credit union or other financial institution.
• Use a nonprofit credit counseling organization if you have a lot of debt or need help managing your spending habits. Beware of companies offering debt consolidation or quick fixes.
• Apply for credit in your own name. Even if you are married, both spouses should establish their own credit history.
• Understand what co-signing a loan means. If a family member or friend doesn't repay the debt, you'll be responsible.

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