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"A man's reputation is the opinion people have of him;
his character is what he really is."
- Jack Miner, conservationist (1865-1944)

How's Your Credit?

Ever hear someone say, "I have good credit"? They are probably referring to their credit "rating" - a score bestowed upon them by creditors, banks or rating agencies. Simply stating, "I have good credit" changes nothing, nor does the statement merit the attention of creditors. Credit can only be given by others for service to them, i.e. paying them on time.

So, credit is the result of serving others - in many ways. You cannot claim education, victory, experience, success, reputation, or a suave demeanor. Each of these is a gift from others, as a result of your service to them. Friends recognize your courage as a result of your being cool under pressure. Your success is recognized by others only once you have served them well. Knowledge of your career field is recognized by others only after it's been applied to situations in the form of more service.

In the accounting world of income and expense, a debit is something paid out, while a credit is something received. Thus all credits are received from others - not by our own making. The debits - what we pay out - are our efforts, persistence, and service. How they are rated is not under our control, but is determined by those served.

Without service, there are few rewards. Yet, you've seen those who insist on getting more attention than they deserve. They feel they're being short-changed, that they are not appreciated, that they are always the victim. If you look more closely at their contributions, you are also likely to see the dearth of service they are offering.

With service, credit follows. It may be subtle or quite visible - but it always follows. Concentrate on what you have to offer and forget the rewards. Those who are served will pick up the tab.

Brought to you by Randy Charlton of Century 21 Home Realtors.

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If you’re looking to buy a house within the next 12 months, why not make one of your resolutions one that will improve your financial situation and position you as an ideal home buyer? That’s right – we’re talking about your credit score.

The lending world has changed considerably since the boom days and so has the credit score required to qualify for a loan, not to mention a low interest rate. "About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least,” said Kelli Grant with SmartMoney.com. First-time homebuyers fare much better, needing a credit score of at least 660 unless they try for an FHA loan. The truth is, to be a “good” buyer in the eyes of lenders you need to keep a close watch on the state of your credit score. Here are several tips to maintain and improve upon your current number.

Get copies of your credit report--then make sure the information is correct.  Go to www.annualcreditreport.com.  This is the only authorized online source for a free credit report.  Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months.

How many and what types of credit accounts do you have?  Many credit-scoring models consider the number and type of credit accounts you have.  A mix of installment loans and credit cards may impove your score.  However, too many finance company accounts or credit cards might hurt your score.  To learn more about credit scoring, see the Federal Trade Commission's website, Facts for Consumers.

Beware of credit-repair scams.  Sometimes doing it yourself is the best way to repair your credit. The Federal Trade “Credit Repair: How to Help Yourself” explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

Source: http://www.federalreserve.gov/pubs/creditscore/default.htm

Brought to you by Randy Charlton of Century 21 Home Realtors.

Top 5 Steps Toward Improving Your Credit Score

Home prices and interest rates are down, and your desire to buy a home is high. But many of my clients worry that their credit score just isn’t good enough for lenders to see them as a worthy credit risk, especially in light of today’s tougher credit and lending standards.

I am often asked if there is anything that can be done to improve your credit score. There are, in fact, several steps you can take. Here are five great suggestions from Bankrate.com:

1.Order your credit reports. You can do it for free once a year at annualcreditreport.com. If you've been denied credit, you are entitled to a copy of your report from the reporting agency. The company you applied to must supply the contact information and you have 60 days after denial to request a copy.

2.Examine your credit reports. Creditors do not necessarily report to each agency, so you may find differences in reports—and credit bureaus do not verify the information they get from creditors. Note any errors, such as incomplete or outdated information or inaccurate account histories. If you find errors, such as a paid-up account that was not reported or a difference in the amount owed, proceed to step number three.

3.Dispute and document. Complete the dispute form that came with the credit report or write a letter identifying each mistake and stating why it is wrong. Include a copy of the report with errors circled and copies of any supporting documents. Keep copies of everything you send. The credit bureau must investigate disputes within 30 days of receiving your letter. Items not verified as accurate by a creditor are removed and you will be sent a free, updated report.

4.Fix negatives. Call your creditors and ask for reduced monthly payments to help you keep current. See if the repayment schedule for fixed-rate loans can be extended. This may end up costing you more, but may keep you from being reported as delinquent. Arrange to pay off accounts in collection. Slowly close out unused credit accounts. Don’t cancel them all at once, as this may negatively affect your score. Remember, cutting up a card is not the same as closing the account.

5.Add positives. If you have a good credit history from a company that does not report to a credit bureau, ask them to do so. Apply for a secured credit card and build a solid payment history. Open a savings account to show creditors you are working to save and have reserves to help pay down debt.

Remember that your credit score is not always set in stone. There are actions you can take immediately to raise your score both in the short term and long term.

Brought To You By Randy Charlton with Century 21 Home Realtors

Credit, Credit, Credit – Do you know what is on your credit report ? I have had several clients who believed their credit was in good shape, only to find  their scores were much lower than anticipated. Some of the common factors which lower credit scores are as follows:

1. Too many inquires by credit card companies and other related consumer credit agencies.

2. Erroneous items on your credit report. Identity theft and clerical errors can create major headaches.

3. Outstanding balances too high relative to their limits. Try to keep your balances under 40 % of the limit amount. Please feel free to call with any questions regarding your credit.  

Information by Bob Gonzales with First Choice Mortgage. 

You can reach Bob at 909-957-3884

 Brought to you by Randy Charlton of Century 21 Home Realtors.