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.  

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 
Linda's Website (Home Search
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Credit Score Myths Debunked

Credit Score Myths Debunked

Okay, so, I was once again reading an article, this time in Yahoo Finance.  It had some really great news on credit scores and since this is a major factor in a home purchase, I decided to link you all to it.

One of the points the article made was that CARRYING A BALANCE on your credit cards brings your credit score up.  Personally, I never heard that and always understood that you use it and pay it off, which this article leans towards.  The point made here is that you will simply be paying interest on a carried balance that the credit bureaus don't even know about.

A point that was made was something new to me.  CUT UP CREDIT CARDS YOU DON'T USE.  I'm sure you've all heard that, but probably never knew that there was something called "credit utilization ratio" that affects your score.  You should use your cards, even if only once or twice per year so this portion of your credit score will stay up.

PAYING CASH will increase your credit score.  The problem with this idea is that the credit bureaus do not see anything you pay for with cash or your ATM card.  It has recently been suggested by SUSIE ORMAN that you get a prepaid credit card thereby allowing your bill payments and purchases for just about everything to increase your credit score.  You can even direct deposit your paycheck onto this card and include things like groceries and gas.

For more information, you should read the article HERE.

Warmest Regards,
Linda K. Mayer,
Realtor, Office Manager  
License # 01767321
A Realtor you can Trust!
(626) 824-8927 Cell
(909) 670-2711 Direct
LindaKMayer@live.com
Linda's Website