#WhackedOutWednesday – Get your “Free Report” annually! If you’re looking to purchase “anything” in the near future it’s a good idea to take advantage of the FACT Act (FACTA = Fair and Accurate Credit Transactions Act)! The only place authorized under the FTC and credit reporting agencies (Experian/Equifax/TransUnion) to provide YOU a FREE CREDIT REPORT ANNUALLY is what I’m talking about!
You see what’s whacked out, is people right before they buy something “big” like a car, house, boat etc, should know where you stand. Most do not know. Today I’ll give you all the credit “tips” the pro’s sometimes have you pay for. What you need to know, and need to do with credit is all here. Most people just don’t know what they don’t know, or pay off their credit bills each month thinking that’s a good idea. (It’s not) Credit is imperative for insurance, for buying things, for jobs sometimes, for financial fitness. Your key points are below! ↓
Open new accounts every several years. It’s actually a weight on your credit score, if you just have credit cards for 10 years and no new credit added, that actually hurts you. Maintain and show the bureau’s you can “manage debt” as this is what gives you credit anyhow. So that means DO NOT pay your credit card off every month. What you want to do is maintain these two ratios; Either revolve less than 30% of the balance at all times (which gives you a better score) or revolve less than 50% of the available balance at all times. For example, if you have an available balance of 1k, do not revolve more than 500 dollars, the minute you go over that 50% mark, the bureau’s actually mark your score down.
Another factor is “type” of credit and payment history. Now it’s kind of a given that you should actually “pay” your debts every month, but this seems to be news to some people. lol. Second is type, when it comes to the type of credit, it’s good to have a mortgage, a secured note (like a car), and then 3 or more revolving lines of credit. (all with balances less than the ratios noted above) In all my experience in the mortgage industry (15 years +) I would say of the thousands of credit reports I’ve seen, the best scores (750+ FICO) and credit always seem to have at least 5 trade lines. (as mentioned) So if you think paying “cash for everything” is a good idea your totally wrong.
Credit is actually what #MakesTheWorldGoRound so it’s important that you do somethings to maintain and show you can manage debt. Debt is not necessarily bad, however, there is such a thing as bad debt and good debt. (but that’s another blog for another day) If you want your FREE REPORT — CLICK HERE!
As Always –
#BuyWell & #SellWell