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Articles and Tips November, 2008

Credit Scoring In Plain English

Most people understand that there are 3 major credit bureaus who keep track of all your credit transactions, and that they give you a rating – known as a “credit score”. But very few people understand how this “score” is actually determined. It is a complicated mathematical scientific formula locked away in a secret vault somewhere, but you don’t want “complicated”, “mathematical”, or “scientific” mumbo jumbo to stuff in your head, so ...

Credit Report Errors? Or Deliberate Misreporting?

You just got a copy of your credit report and it is full of errors and accounts that aren’t yours. Your first reaction is to get mad at the credit reporting agency for being so stupid and ruining your life. But hold on a second there pardner… Before you direct your anger at the wrong place, you need to understand that the credit reporting agencies rarely make errors. The report you have in ...

Using Bribes and Threats To Get a Good Credit Account

Yes, you read the title correctly. If you need to add a good credit account to your credit report (and the only way you can raise your credit score is if you have some good credit accounts), you can try using a bribe to get one. And , yes, this is legal to do! The best place to start when trying to add a new credit account is your bank. Go in and ...

“SAFETY NET” Credit Scoring Factor

Lenders and credit card companies use your credit score to help determine how likely it is that you will pay back the money they lend you. Fair Isaac Corporation, the creator of FICO credit scores (the most commonly used credit scoring system) has a breakdown of the relationship between your credit score and your chances of being a “Good Player” vs. a “Bad Player” (see chart here). So, your credit score reflects an estimate ...

How Many Credit Accounts Should I Have?

Many people ask me, “How many credit account should I have?” I could give you a “Well, it depends...” kind of answer, but you are reading this looking for real answers and advice, so I’m going to boldly give you an answer. I don’t know of any scientific study that suggests that my answer is the correct one. All I can tell you is, I’ve dealt with literally thousands of credit reports over the ...

Need Cash? Try an “Income Blitz”

If you HAD to earn a bunch of money in a short amount of time, could you? Let’s say a friend, a family member, or maybe your pet had a life-threatening medical emergency and could only be saved if you were able to raise $2,000 in the next 30 days. Could you do it? Most people, if faced with that kind of emergency, would find a way to do this. You’d go to ...

Is This Necessary? Evaluating Your Everyday “Latte” Purchases to Save Money

During World War II, when there was a nationwide program of gasoline rationing, there were signs posted along highways saying, “Is This Trip Necessary?” reminding people to not waste fuel. As we begin to get control over our finances, maybe a good sign to carry with us is one that says in bold letters, “Is This Purchase Necessary?” In his book, The Automatic Millionaire...

S.P.F. Your Debt – A Formula to Pay Off Your Debts Without Getting Burned

Too many bills? Credit scores suffering? Credit payments taking every last dime each month? You try to pay a little extra on each account, but the balances don’t seem to ever go down? How can you possible get out from under this dark cloud of debt? Well, don’t fret. Sunnier days are on their way, if you can figure out a good way to start getting rid of some of your ...

FUD’s – Overcoming Fear to Gain Success in Real Estate

FUD’s can keep you from success in real estate. FUD’s stands for: Fears, Uncertainties, and Doubts. FUD’s prevent many, many potential real estate investors from ever getting started. You simply cannot invest in real estate until you’re able to counteract your Fears, Uncertainties, and Doubts. Notice I didn’t say “overcome” your FUD’s – I said “counteract”, which is different. You see, FUD’s will help you be cautious and make wise decisions. ...


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