The Credit and Real Estate Guy

The Credit and Real Estate Guy Assist clients with their credit and home buying / selling needs.

05/15/2021

Today's Credit Repair Tip

Public Records:

Go through your public record section on your credit report. It is notoriously full of errors. It is important to go through any items in this section to identify the inaccuracies so that you can work to remove them.

05/14/2021

Credit Score Ranges:

800 and Higher (Excellent) With a credit score in this range no lender will ever disapprove your loan application. Additionally, the APR (Annual Percentage Rate) on your credit cards will be the lowest possible. You'll be treated as royalty. Achieving this excellent credit rating not only requires financial knowledge and discipline, but also a good credit history. Generally speaking, to achieve this excellent rating you must also use a substantial amount of credit on an ongoing monthly basis and always repay it ahead of time.


700 - 799 (Very Good) 27% of the United States population belongs to this credit score range. With this credit score range, you will enjoy good rates and approved for nearly any type of credit loan or personal loan, whether unsecured or secured.


680 - 699 (Good) This range is the average credit score. In this range approvals are practically guaranteed but the interest rates might be marginally higher. If you're thinking about a long term loan such as a mortgage, try working to increase your credit score higher than 720 and you will be rewarded for your efforts; your long term savings will be noticeable.


620 - 679 (OK or Fair) Depending on what kind of loan or credit you are applying for and your credit history, you might find that the rates you are quoted aren't best. That doesn't mean that you won't be approved but, certain restrictions will apply to the loan's terms.


580 - 619 (Poor) With a poor credit rating you can still get an unsecured personal loan and even a mortgage, but the terms and interest rates won't be very appealing. You'll be required to pay more over a longer period of time because of the high interest rates.



500 - 579 (Bad) With a score in this range you can get a loan but nothing even close to what you expect it to be. Some people with bad credit apply for loans to consolidate debt in search for a fresh start. However, if you decide to do that proceed cautiously. With a 500 credit score you need to make sure that you don't default on payments or you'll be making your situation worse and might head towards bankruptcy, which is not what you want.


499 and Lower (Very Bad) If this is your score range you need serious assistance with how you handle your credit. You're making too many credit blunders and they will only get worse if you don't take positive action. If you are thinking of a loan (which won't be easy), the rates will be very high and the terms will be very strict. We recommend that you fix your credit first before applying for a loan.

05/12/2021

What is your outstanding debt?

It is important to not use all of your available credit. If all of your credit cards are maxed out, your scores will reflect that you are not managing your debt wisely.

05/03/2021

Have you applied for credit recently?

If you have many recent inquiries, this can be construed as being negative by the bureaus. Only apply for credit when you really want it.

04/29/2021

Do you have a long credit history?

Generally speaking, the longer your history of holding accounts is, the more trusted you will be as a borrower.

04/28/2021

Do you pay your bills on time?

Payment history is a major factor in credit scoring. If you have paid bills late, have collections or a bankruptcy, these events won't reflect well in your credit score.

04/27/2021

How Credit Bureaus Determine your Credit Score

Payment History - 35%
(on-time payments vs. delinquencies, more weight on the last 24 months)

Capacity and Amount Owed - 30%
(percentage of credit limits available)

Length of Credit - 15%
(how long you've had your accounts)

New Credit - 10%
(number of inquiries and new accounts opened in the last 12 -18 months)

Types of Credit Used - 10%
(installment loans vs. revolving)

The above percentages show how important each category is in determining your credit score. We will help you to remove negative items from your payment history. We will also show you how to maximize your debt ratio score, even if paying off credit cards is not an option.

04/22/2021

Today's Credit Tip

How Your Behavior Is Evaluated In Your Credit Report:

1. Do you pay your bills on time? Payment history is a major factor in credit scoring. If you have paid bills late, have collections or a bankruptcy, these events won't reflect well in your credit score.

2. Do you have a long credit history? Generally speaking, the longer your history of holding accounts is, the more trusted you will be as a borrower.

3. Have you applied for credit recently? If you have many recent inquiries this can be construed as being negative by the bureaus. Only apply for credit when you really want it.

4. What is your outstanding debt? It is important to not use all of your available credit. If all of your credit cards are maxed out, your scores will reflect that you are not managing your debt wisely.

04/21/2021

Today's Credit Tip -

CREDIT REPORT BASICS: Tip 9

Make sure that your proper credit lines are posted on your Credit Reports. Often, in an effort to make you less desirable to their competitors, some creditors will not post your proper credit line. Showing less available credit can negatively impact your credit score. If you see this happening on your credit report, you have a right to complain and bring this to their attention. If you have bankruptcies that should be showing a zero balance…make sure they show a zero balance! Very often the creditor will not report a "bankruptcy charge-off" as a zero balance until it's been disputed.

03/19/2021

Today's Credit Tip

CREDIT REPORT BASICS: Tip 8

Make sure you don't have duplicate collection notices listed. For example; if you have an account that has gone to collections, the original creditor may list the debt, as well as the collection agency. Any other duplicates must be removed!

03/18/2021

Today's Credit Tip

CREDIT REPORT BASICS: Tip 7

Have at least three revolving credit lines and one active (or paid) installment loan listed on your Credit Report.

The scoring system wants to see that you maintain a variety of credit accounts. It also wants to see that you have 3 revolving credit lines. If you do not have three active credit cards, you might want to open some (but keep in mind that if you do, you will need to wait some time before rescoring). If you have poor credit and are not approved for a typical credit card, you might want to set up a "secured credit card" account. This means that you will have to make a deposit that is equal or more than your limit, which guarantees the bank that you will repay the loan. It's an excellent way to establish credit. Examples of an installment loan would be a car loan. In addition to the above, having a mortgage listed will bring your score even higher.

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