Georges Real Estate & Mortgage Corner What You Dont Know About Credit Reports Written by Blanche Evans on Tuesday, 13 May 2014 1:14 pm When a lender runs your credit, that means the bank taps into one of three independent national credit reporting bureaus -- TransUnion, Experian, and Equifax. Credit reporting bureaus collect information about your credit card use, rental history from landlords, and your loan history, including vehicle and student loans. The bureaus then analyze the results and tabulate them into credit scores, using software created by the Fair Isaac Corporation. Your lender can purchase the reports as well as the FICO scores to serve as summaries of your credit history. Each credit reporting bureau collects and analyzes its own data which results in s different scores. The bureaus dont share information, so if you want a true picture of your credit, you have to check all three bureaus. If you have a mistake or a ding on your credit report from one bureau, the same problem may not appear on the other bureaus reports. You have to get the negative item removed by sending a copy of your proof -- payment in full or release of lien, or other evidence. Getting the item removed can take as long as thirty days, which will delay your loan. Thats why its best to clear these things up before the lender brings them to your attention. If your lender sees something negative enough to decline the loan, they will tell you to fix it. For example, you may have had a dispute with a contractor that resulted in a lien on your home. It doesnt matter whether you had right on your side, youll have to pay the debtor, obtain a release of lien or payment in full receipt, whichever is appropriate. This proof should go into the loan file. You should also keep multiple copies of the lien release or payment in full. Why? Because the lien can reappear on another credit report. IRS property liens are particularly hard to eradicate because the proof of payment has to come from the IRS plus the county where you owned the property must record the release of lien. You may see a problem in your credit report thats over a decade old. An account in collections can stay on your credit report for much longer than seven years p the length of time it takes for bad accounts to drop off your credit record. When the debtor gives up trying to collect, thats when the seven years begins. FICO credit scores range from 300 to 850. To get the best mortgage rate, your score must be as close to 850 as possible. Most lenders will give you their best rates if your credit scores are 750 or higher. You can raise your credit scores by managing your credit the way that generates the highest scores. About one-third of your FICO score is your payment history. Another third of your score is based on how much of your available credit you use. You can improve both areas by paying down your debts down as quickly as you can. If you are only making the minimum payment on your accounts, youre living beyond your means. Dont max out any credit card, particularly unsecured debt like store credit cards. You can also improve your scores if you pay debts off early and avoid late payments, Data includes the loan terms, payment history -- on time, early or late payments, monthly balance rollovers, payment amounts, minimum payment history, income-to-debt ratios, and percentage use of available credit. Pay off the credit cards that charge the highest interest first. Dont incur new debt. Managing your debts well does more than earn you a great mortgage rate. It ensures that you are more likely to buy wisely and within your means. And that should make any lender view you as a good risk. Youre entitled to a free copy of your credit reports. You can contact all three credit bureaus or visit AnnualCreditReport. From George If you need help cleaning up your credit report, call George at (615) 777-4663! You get the best rate with MIG with a 740 score and we have a way of getting corrections done in 3-5 days. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Bible Verse of the week Your Father knoweth what things you have need of before you ask Him. Matthew 6:8 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Habits: My Positive Companion Did you know that it normally takes about 30 days to break an old habit, or to begin a new one? In fact, most habits take much longer to form if we are not fully committed to implementing one. Habits get a bad rap because often they are deemed to be negative behaviors or characteristics. However, habits can be very helpful, depending upon what they add to our happiness and satisfaction. The following very adeptly describes how habits can be helpful. Who Am I? You may know me. Im your greatest helper. Im your heaviest burden. I push you onward or drag you down. I am at your command. Half of your tasks might as well be turned over to me. I can do them quickly and consistently, if thats what you want. I am easily managed. All you have to do is be firm with me. Show me exactly how you want it done. After a few lessons, Ill do it automatically. I am the servant of all great men and women. Of course, the servant of the failures as well. Ive made all the great people great. And, Ive made all the failures, too. I work with the precision of a marvelous computer, and with the intelligence of a human being. You may run me for profit or you may run me to ruin, it makes no difference to me. Take me. Be firm with me, and I will put the world at your feet. Be easy with me, and I will destroy you. Who Am I? I Am Habit! Do you have any habits that need implementing or changing? You can do it. It takes a firm commitment and then discipline to follow through. Choose one positive habit, work on it for 30 days, and see if your life isnt changed for the better. workplaceisssues ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Power-user Tips for LinkedIn Chances are you know how powerful LinkedIn can be for networking, but like most everything in business there are secrets power-users know to help them stand out from the crowd. Keep these tips in mind as you use LinkedIn to start building stronger connections, even faster. Be specific! When you ask someone to connect, change the default message, which reads: Id like to add you to my professional network on LinkedIn. Instead, personalize your invitation to say something more inviting, or succinctly explain how you know the person or why you want to connect. Its not personal, its business. Because LinkedIn is a social media platform for professionals, keep your activity strictly business. If you get into heated discussions frequently, create controversial posts, or act overly casual in your comments, just remember that potential employers or customers could notice. Give a little bit. The greatest networking principle is to always give first. Endorsing your connections is a quick and easy way to do just that. Not only will endorsing give your connections well-deserved virtual kudos, but it can also help them rank higher in search results-having you to thank for helping them score their next big deal or reach more people! Timing is everything. Asking a favor immediately after making a connection is as much a faux pas in the virtual world as the real one. Make connections (and then nurture them) well before you need something from them. Be sincere. Write only genuine recommendations, and write without expecting anything in return. If your connection returns the favor, good for you! Mortgage Market Guide ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Personal Note Wow! We had a really fun weekend. We began Friday evening with dinner at Mere Bulles and went from there to a concert by Neil Sedaka with the Nashville Symphony at the Schermerhorn . He put on a fantastic show. We ran into several friends there. Saturday was a whole new adventure. We went to the Iroquois Steeplechase at Percy Warner and watched from the tent of our advertiser 104.5 The Zone. Sunday was a catchup day with Mothers Day Brunch and Church and then home to do the yard and chores.
Posted on: Wed, 14 May 2014 20:08:01 +0000
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