When
was the last time you thought about your credit?
Like
many of you I listen to webinars trying to keep up with
the industry especially in these economic times.
"I have to
share"
The other
night I listened to a webinar on credit. I know a lot
about how credit works, it is after all, the lifeblood
of an investor, but I have noticed a change. The Credit
Card and Mortgage Companies are constantly calling, my
limits are being lowered, and a lot of the rewards
programs are diminishing even though I am paying on
time. So I was very interested in what would
be discussed in the webinar.
Jeremy
Roberts was the presenter and clearly stated at the
beginning that these are his opinions, but he has been
in the business of helping people with their credit for
many years.
First he provided the break-down
of how your credit is
determined: 40%
is based on your payment history
-
Are you making your payments on
time
- Have you ever been 30, 60
or 90 days late
and how
many times
32% is based on revolving
credit history
-How much credit
you have
18% is based on the length
of established credit
- it is
crucial that you do not close your
accounts
- your credit score is
based on all available
credit
vs. all
credit debt
10% is based on new
credit
- it is important to
continue to grow your credit
Helpful
Tips:*Have several credit cards;
doesn't mean you have to use them, but have them so that
your total available credit is high.
*If you make
around $50K a year, try to have 4 credit cards. If you
make $100K a year you should have more than 6.
*Don't
put everything on one card; spread the charges out
and keep the balance under 50% of the available credit
as this will help your score. Don't ever use all the
available credit on one card even if you pay off the
full amount each month; it will still hurt your credit
score during the month it was maxed out.
*If you have
a card that is about to expire, the credit
card company may not send you a new card and close
the account because of "lack of use". Do not
let them do this. Mark on your calendar when your cards
are to expire and make sure you call them and ask for
new cards.
*Keep in contact with the credit card
companies, loan companies, and mortgage
companies. Everytime you call they capture that in
their computer system. They are more willing to work
with people who are in communication with them.
*Pull
your credit report every month and work hard to remove
all negative items. Keep copies of all the paperwork
that was provided in order to remove the negative
remarks from your credit in a folder as they may
reappear on future reports.
*
Every Quarter try
to get your credit limit increased and your interest
rate lowered.
This may seem like a lot of work but these
days everyone from employers, insurance
companies, banks, cell phone companies and even
utility companies look at your credit to determine...how
risky you are.
Now what are the credit card
companies doing?
I couldn't figure
out why the credit card companies where lowering my
available credit limit even though I either
paid off my cards each month or made above the minimum
payments on time each month.
The
answer...Credit card companies are
hurting. Today Capital One reported huge loses and
expects it to get worst for 2009. A way for them to
capitalize is to lower the available credit; in turn
this hurts your credit score, which means they can
charge you a higher interest rate because you are now
considered risky. Yes you read that right... It does not
matter if you are a great client they need to get those
interest rates up! Also, consumer beware! I don't know
if you have noticed but many credit card companies do
not give you a grace period to pay your bill. If they do
not receive payment on the 1st you are late.
It is vital
that you start looking carefully at your
credit. Don't throw your hands up and
not use your credit cards because that will hurt your
credit score as well. We as consumers just have to pay
more attention!
Wishing you continued investment success,
Lisa Marston
President, The Foresthill Group,
Inc.
Sale Price
Extended! 
Let us be the key to
your Success!
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