While most Americans would be lost without their credit cards, especially at this time of year, buying on credit is a foreign concept in many immigrant households.
A recent survey by Yankelovich Hispanic Monitor found that fewer than a third of Hispanics -- native or immigrant -- hold credit cards compared with two-thirds of all Americans.And, while cash is largely disappearing as a means of commerce in most segments of society, large numbers of immigrants live in an all-cash world. They are paid in cash, buy with cash and -- to save money -- live in group homes where only one person's name is on the lease.
"As their contribution (to the rent) is likely to be in cash, there is no documentation of such regular payments," the Fannie Mae Foundation said in a study designed to help more immigrants become homeowners. "The same is true with regard to utility payments."
Without a credit record, even immigrants who manage to save money for a down payment may have trouble buying a house.
Longtime, industrious immigrants who became naturalized citizens have a higher rate of home ownership than natives -- 70 percent versus 68 percent -- according to a study by Analysis and Forecasting Inc.
But the rate is much lower for the rest of the immigrants.
"In 1997, of the 26 million foreign-born now in the United States, only 12.4 million lived in owned homes," the Fannie Mae study said.
In some areas, lenders are figuring out ways to get more immigrants into their own homes. The Fannie Mae study cited a case in Rogers, Ark., where the First National Bank of Rogers persuaded local employers to allow their workers -- mostly immigrants -- to attend financial seminars on company time. The companies agreed, hoping that an increased rate of homeownership would reduce the high rate of worker turnover.
"The results of these seminars facilitated by this partnership speak for themselves," the Fannie Mae study said. "Fifty percent of the new immigrants are now homeowners in Rogers, turnover is now 10 percent, and these new homeowners are now customers of the bank."
YIKES! The last thing you need this time of year is a broken furnace. The American Society of Home Inspectors advises homeowners to change the heating or cooling filter at least twice a year so dust and dirt will not clog the system and cause it to break down. If you change the filter even more frequently -- say once a month -- it will help keep your drapes and furniture cleaner.
"Use a vacuum cleaner to clean the furnace grilles and ducts as best as possible," the home inspectors advise. "Keeping the furnace room and area clean and free of dust can add years to the furnace's life and lower heating bills."
Pamela Reeves writes this column weekly for Scripps Howard News Service