Smart Credit HQ

Obviously having credit problems is a real impediment for someone looking to secure bank financing for a small business. There are certain types of credit score ruining problems that are there easier credit problems to fix than others. To take an extreme look at it, bankruptcies are harder to fix than a late payment. Bankruptcies can stay on your credit report between 7 to 10 years. Everything on your credit report can be removed if you give it enough time. As old debts are paid off and new debts are paid on time, your credit will slowly begin to improve, even bankruptcies and foreclosures.

Late payments are a death knell because they indicate a lack of responsibility on the borrower’s part to fulfill the obligations of the credit issued to them. The only thing that can be more damaging than late payments is for the late payments to turn into bankruptcies or foreclosure of a home. Otherwise having a history of late payments is a sure way for a creditor to decline the borrower for credit. When a creditor pulls a borrower’s credit report, the creditor can see every single late payment that is on the report. If the borrower has a good credit history except for 1 late payment, this can often be overlooked. However, when there are 3 late payments or more on the credit report, the creditor will start to ask for explanations on each late payment and may be more critical to approve the file.

While you are in the rebuilding stage, it will be nearly impossible to secure a bank loan. The alternative is to secure a hard money loan, which are loans given out by third party investors. The draw back is the interest rate is usually double the interest rate that you can get at a regular bank. Entrepreneurs and/or business can have gaps in income history when they are between businesses or projects. When a creditor reviews the credit report for an individual or business, they are mainly reviewing the red flags that are the late payments. As along as there are no major red flags, having a gap in income history will not affect the credit rating. The history of paying the real estate on time will improve the borrower’s credit rating, not the amount of the equity. On the same token, the history of late payments on the real estate will decrease the borrower’s credit rating.

As an entrepreneur, you have a unique opportunity to build, maintain and acquire credit both individually and as a business owner. The individual credit will follow the social security number and the business credit will follow the EIN number. When a creditor looks to approve a small business owner, they typically will look at both the individual and business credit to see if there are any possible red flags. In the case that there is a late payment, it is possible that the late payment will be recorded on both the individual and business credit.

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We all make decisions every day, decisions to take action, or to not take action, or even deciding not to decide. Perhaps we don’t’ want to think about future ramifications of having questionable credit and then down the road, it is inevitable that circumstances, when making themselves known to us, can be a defining moment. That moment when you say to yourself “Why didn’t I take care of this when I had the opportunity?” or “It would have been so easy and I chose not to deal with it.”

If you are someone who is letting time decide when you will get your credit repaired, you just might be setting yourself up for failure, disappointment, and misdirected anger. So, here you are reading this article and hoping for inspiration to deal with your credit score. Maybe you’re hoping for a miracle, or perhaps you are hoping it will all just go away. It’s not going away on its own, and the miracle is that you now have an uncomplicated tool to use to finally get your credit score just where you will need it.

When big decisions and big commitments (buying a home or starting your own business as a sole proprietor, for example) are in your future, the choices you are making now will determine how much of a challenge you deal with later. Your choices now will determine which path you are going to take, the path of least resistance or the path of numerous hassles and disappointments.

Go ahead, map out a plan for yourself and follow the steps outlined on this website. Plan on doing something every week, or every two weeks, or every day. It doesn’t matter how you map out your plan because it is your plan, it is your life and it is your credit, so take advantage of this excellent tool and just keep focused on your goal.

An important thing to keep in mind is to do something that matters everyday. Every little step takes you toward your big goal. As long as you are doing something that matters everyday then you will eventually get to your goal. If you are not moving forward then you are moving backwards. Where you are in life is a series of decisions that you made. Imagine if you made productive and positive actions that matters everyday of your life. Where would you be today? An example of a step could be to refinance your home so you lower your monthly mortgage payment every month. This one step will have a very long effect in your life because you have to make a mortgage payment every month.

When it comes to tough decisions and smart credit, maybe the decisions are not so tough. Ask yourself if the decision that you are making will move you forward toward your goal of financial peace or take you backwards. The decision is yours so make a decision that will be beneficial to you for the long run.

If you like this and other articles on this website. Be sure to download the free eBook The Total Credit Makeover by signing up to our newsletter.

Are you trying to the pick the right bank for you and your family? Well, you’re not alone. Many folks attempt to weigh the pros & cons when it comes to deciding whether to bank at a large commercial bank or at a smaller local bank. The purpose of my editorial is to give you some insight on which type of bank is best for you. I’ve been fortunate to be a part of both types of organizations. Below are the advantages & disadvantages of big banks & small banks:

Big bank advantages:

- You have a larger product line to choose from. You can choose from multiple different checking and savings accounts. Multiple different loan products ranging from home loans, car loans, student loans, business loans, and credit cards.
- Easier access to accounts
- Better online options (state-of-the-art technology)
- More branches
- FDIC protection

Big bank disadvantages:

- More people to deal with
- Having to deal with the “1(800)” numbers
- Lack of relationship banking aspect
- More “product pushing” from bank employees
- Potential of dealing with service fees

Small bank advantages:

- Personable service
- Your bankers know you & your financial situation, which makes banking easier.
- Stronger personal & professional relationship with bank.
- Not having to jump through hoops to get answers to service-related questions.
- Dealing with the same people for a very long time. Bankers at smaller banks have longer tenure with their company.

Small bank disadvantages:

- Lack of product knowledge due to the limited product line smaller bank possesses.
- Everyone knows your financial situation. This could be a positive or a negative.
- Fewer branches
- Website accessibility issues. Smaller banks lack the budget to invest in state-of-the-art technology.
- Fewer options for other types of investments

So, you must ask yourself: what do you value most? If credit repair is one of your goals right now, I personally believe the best bank for you is a small local bank. Let’s say you need to waive a bank fee or you were late on a loan payment. You have a better chance to get those charges waived at a smaller bank because of the personal relationship you have with the banker. That is why I would pick a smaller community bank compare to the big mega banks.

If you like this and other articles on this website. Be sure to download the free eBook The Total Credit Makeover by signing up to our newsletter.

Below are the six most common credit repair myths. Let’s go over each misconception so you won’t be confused by the wrong information that is out there.

1 – Checking your credit lowers your score – This is the number one credit repair myth out there. Contrary to popular belief, you may check your own credit report as many times as you want. This will not negatively impact your credit score. This is known as a “soft inquiry” which will not lower your credit score. If you apply for a loan and the mortgage company pulls your credit, that is considered a “hard inquiry” which will lower your credit score by a few points.

2 – You need to hire a credit repair company to fix your credit – credit repair companies cannot make the credit reporting agencies remove or change the information on your credit report. Credit repair companies will usually take your money without delivering on their promises. They cannot do anything you cannot do yourself. Your best bet is to learn how to repair your own credit and stick to that plan.

3 – Shopping around for credit affects your score – Most credit scores will not be affected by multiple inquires from student loans, auto loans, or mortgage companies within a short timeframe. Most credit scores will consider these as a single inquiry, which will not have much impact on your credit score. When you are ready to apply for financing, be sure to fill out application from different lenders all within 30 days.

4 – If I build enough good credit, it will offset my bad credit – Any amount of bad credit will damage your credit score and significantly reduce your chances of getting approved for a loan. When a loan officer looks over your credit file to approve you for a loan, they will focus on the bad credit and determine whether you will be a good risk. The good credit will not offset the bad credit.

5 – There are items such as bankruptcies, foreclosures, and liens that are impossible to remove from the credit report – Bankruptcies can stay on your credit report between 7 to 10 years. Everything on your credit report can be removed if you give it enough time. As old debts are paid off and new debts are paid on time, your credit will slowly begin to improve.

6 – Credit can be repaired instantly – If you get an offer that is too good to be true, it usually is not true. There are companies that will charge hundreds to thousands of dollars up front and promise to repair your credit in a few months. One of the tactics is to apply for a new social security number for you, which will look like you are starting over with a clean slate. However, this is obviously illegal and people involved in operations like this will be sent to jail.

If you like this and other articles on this website. Be sure to download the free eBook The Total Credit Makeover by signing up to our newsletter.

Is credit repair a priority in your life right now? Are you willing to make some sacrifices in order to achieve your credit repair goal? A good place to start is with your morning cup of coffee at Starbucks. You may be thinking,”What does Starbucks have to do with my credit repair?” Well, let’s do the math and take a look. Let’s say you spend $5 every morning at Starbucks for a Grande Frappuccino Latte, and there are 20 working days in month. That means that you will spend $100 every month on coffee. For the year, that is $1,200 that you could use toward your credit repair goal such as paying down your credit cards, student loans, or car loan. To achieve the big goal of repairing your credit, it takes many small actions to move you toward that goal. Your morning cup of coffee at Starbucks could be one of the small actions.

Now let’s talk about iPhone and credit repair. First of all, I want to say I don’t have anything against Apple products, and in fact all of my family members use Mac computers, iPods and iPads. Apple’s products are reliable and stylish, so it’s no wonder they were briefly named the most valuable company in the world.

However, if you are in the process of repairing your credit and need to get up to date with all of your payments, your phone bill is a sure place for you to examine. The main reason why people want the iPhone is to use the 3G service to be able to access the Internet at anytime. A typical 3G data plan is $30 a month. When you do the math, it is $360 a year on the data plan alone. Plus the cost of a new iPhone is typically $200. That is $560 you could be using to pay down your credit cards and other debts. If credit repair is one of your goals right now, it may be a good idea to use a “regular” cell phone instead of the iPhone.

If you like this and other articles on this website. Be sure to download the free eBook The Total Credit Makeover by signing up to our newsletter.

Criminals look for individuals who have good credit scores and clean records because it is much easier to get approved for credit cards and loans. In a recent study, Carnegie Mellon CyLab* found that your children are 50 times more likely to be a victim of identity theft than you are. In their study, 10% of the children in the report had someone else using their social security number compared to 0.2% of adults. That is just something that most parents do not think about. Parents are busy with doctor visits, planning birthday parties, and saving for college educations. Identify theft is the last thing on a parent’s mind, but if you step back and think about facts, it really makes sense. Children have clean credit reports so it will easy to be approved for a credit card. Secondly, it is very unlikely that a parent will monitor a child’s credit report. If a child’s identity is stolen, parents will find out years after the fact.

Here are 5 Tips to protect your child’s identity:

1) Watch for mail in your child’s name – We get junk mail in our mailboxes every day. Be alert as you sort through your mail. If you see any pre-approval credit card offers in your child’s name it should raise a red flag. Credit card offers are an indication that your child may have a credit file open. If you start to get phone calls from collection agencies asking for your child, that is also a red flag indicating possible identity theft.

2) Protect your child’s personal information – Keep sensitive information such as your child’s social security number and date of birth in a locked safe. You never know who will be over at your house and you don’t want sensitive information out in the open. Another way to protect personal information is to put a password on your smart phone, which can have all the personal information for the whole family. If it falls in the wrong hands, you want to have a password to protect that information. Make your password unique and avoid picking your pet’s name or your mother’s maiden name.

3) Don’t publish your child’s personal information – Don’t post your email address, mother’s maiden name, pet’s name or child’s birthday on social networking sites such as Facebook, Twitter, and LinkedIn. When you post information on social networking sites, you should consider it public and remember that the whole world can see it. Always think twice before you post anything on the web.

4) Be aware of phishing scams targeting your child – Phishing is the term when a con artist attempts to collect personal information from you by pretending to be a company with “lost data.” Never give out your child’s social security number over the phone or over the Internet. To confirm whether or not the call is legitimate, hang up and call the regular customer service line to confirm.

5) Educate your child – As you would educate your child to be careful around strangers, you need to educate them to protect their identity. Teach them to never share personal information such as their social security number, date of birth, or home address to anyone and to never enter personal information on the Internet. The probability of criminals stealing your child’s identity will drop significantly if you do your part to protect it.

If you like this and other articles on this website. Be sure to download the free eBook The Total Credit Makeover by signing up to our newsletter.

*Source: https://www.allclearid.com/resources/research