Linda Kay -The Barefoot Realtor: credit report

Wednesday, May 15, 2013

Hot Topic For the Week - Credit Scores, Part 2

Hot Topic For the Week - Credit Scores, Part 2

The 7 Deadly Sins of Credit

Okay, so in reading many articles this week, the hot topic seems to be Credit Scores. And in attending one of my networking groups, the speaker this week was on - you guessed it, Credit Repair and Mistakes.

So the second issue regarding credit repair and mistakes I will be telling you all about the 7 Deadly Sins Of Credit.

Credit can be a huge asset to you or it can be a huge liability. There are many temptations today to use and abuse your credit so here are the bad practices and what to do about it.

1. LUST: Having that insatiable desire to consume more and more. Applying for more and more credit cards and generating more and more inquiries which lower your credit scores. If you aren't aware, every time someone "pulls" your credit, it lowers your score. This is because the credit bureaus think you are getting too much credit. Repent: Pay and pay with cash. Sit on it for 48 hours (think about it) and then pay with cash if you still have that urge.

2. SLOTH: What I don't see won't hurt me. Ignoring your credit report, credit card statements and your checking account balance won't help you. In fact it could possibly encourage things such as identity fraud. Repent: Check your credit reports for free.

3. WRATH: Emotions can run high when money is on the line. Closing credit card accounts will lead to a dramatic decrease in your credit score. After all, the person looking at your credit report won't know if the credit card company closed that account or if you did. Repent: Pay down your balance if you have one and simply don't use that card any longer.

4. GLUTTONY: Maxing out your credit limit. Repent: Keep your credit card balances below 30% of your limit.

5. PRIDE: Loss of income, medical emergencies or any other type of hardship can lead to a big burden to carry. It is not easy to ask for help. Repent: Reach out for help before things get out of control.

6. GREED: Cash advances on credit cards, payday loans, maxed out credit cards. Repent: Live within your means. This is usually easier said than done, but not an impossible task.

7. ENVY: Keeping up with the Jones'. Some would call it comparisonitis. Repent: Deal with your envy, stop comparing yourself and get to the root of the problem. sports car

If you are thinking of selling in the SoCal 210 Corridor, please call me for a free home valuation during the month of May. And if you have real estate question, or other real estate needs, please don't hesitate to call me. I will be honored to help you.

Once again, this came from a presentation from Cesar Marrufo of Elite Financial, LLC.

Serving the 210 Corridor - the cities of Monrovia, Duarte, Azusa, Glendora, San Dimas, La Verne, Claremont, Upland, Pomona, Chino, Chino Hills, Rancho Cucamonga and Fontana - wherever the need arises.

Warmest Regards,
Linda K. Mayer, Realtor, SRES
License # 01767321
A Realtor you can Trust!
(626) 824-8927 Cell
LindaKMayer@live.com
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Monday, May 13, 2013

Hot Topic For the Week - Credit Scores, Part 1

Hot Topic For the Week - Credit Scores, Part 1

Your Credit Report Mistakes

So the first issue regarding credit repair I will be discussing this week is the fact that 40+ Million Credit reports contain mistakes. That's one in five. A staggering amount to be sure.

The number one issue is still identity theft according to the FTC Report on the 2012 complaints regarding credit score mistakes. This is huge because the Federal Trade Commission received more than 2 million complaints. And more than 43% were related to tax or wage related fraud.

(Photo By Dave Dugdale from Superior, USA (Analyzing Financial Data Uploaded by Ainali) [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons) financial contract

The Top 10 Credit Score Mistakes are as follows:

1. Identity Theft

2. Debt Collection

3. Banks and Lenders

4. Shop at Home and Catalog Sales

5. Prizes, Sweepstakes and Lotteries

6. Imposter Scams

7. Internet Services

8. Auto-Related Complaints

9. Telephone and Mobile Services

10. Credit cards

One of the things that was stressed in this presentation by Cesar Marrufo of Elite Financial, LLC was the fact that you should be checking your credit reports monthly. For instance there have been cases where the credit was great and then the couple applied for a home loan or refi and were turned down... in one particular case this was due to identity theft. But it could go on and on for quite a few months or years if you don't check your credit reports on a regular basis.

Two places where you can be checking your credit reports monthly are Credit Karma and Credit Sesame. You just never know when something that requires immdeiate attention will pop up, possibly needing a loan or even a discrepancy on your credit reports that requires attention. And you just can't tell when it will be the RIGHT time to buy or sell your home.