How a Cell Phone Affects Your Credit Score

September 1, 2011

Mr. Credit Credit Repair, Credit Score Secrets , , Leave a comment

Your cell phone bill is a perfect example of how things affect Your Credit Score without an ounce of fairness attached to it. If You pay on time, it won’t help You. If You stop paying, then the bill gets sent to collections and can absolutely CRUSH Your Credit Score. I learned this first hand when an ex-girlfriend forgot to pay her final cell phone bill when she moved out of state and because I co-signed (which is a no-no), the collection landed on My Credit report. It cost me 165 points! Overnight!

Don’t let this happen to You. No matter how bad the service was or how much You don’t want to pay that $200 penalty, is it really worth it to be “right” and lose that much of Your Credit Score?

How a Foreclosure Affects Your Credit Score

August 25, 2011

Mr. Credit Credit Repair, Credit Score Secrets, Foreclosure, Short Sale , , Leave a comment

There is a lot of Question about the difference between and Short Sale and Foreclosure and ultimately which is more impactful on Your Credit Score. The Truth is, it really depends, but it’s not that complicated. You can learn all the secrets in this quick video.

Just don’t forget there are two things to consider here:
#1 – Your Credit Score
#2 – Your Credit Profile

They are different and affect the way You can use Your Credit in different ways. Of course, You will ideally have a great Credit Score and a terrific Credit Profile, but in times of potential sacrifice (i.e. Short Sale or Foreclosure) You don’t necessarily have to give up on both. There are ways to protect Your Credit Score and ways to improve and protect Your Credit Profile as well.

Happy to help with any questions on this, just email me directly below.

How Long a Bad Account can Affect Your Credit Score

August 18, 2011

Mr. Credit Bankruptcy, Buying Real Estate, Credit Repair, Credit Score Secrets , , , Leave a comment

The most important thing to understand about bad accounts affecting Your Credit Score… Time is on Your side. The older a bad account gets, the less it affects Your Credit Score in a negative way.

For example, a 30-day late payment on a Credit Card will only hurt You for about 6 months if You know what to do. Many of the people who file for Bankruptcy in San Diego think it will affect their score for 10 years. While it’s true that a Bankruptcy can report to credit for up to 10 years, the damage that’s done by the Public Record will virtually disappear within 2 years.

Focus on the future and the things You can control. If You want to qualify for a San Diego Mortgage, then make sure You are in touch with a Loan Professional way ahead of time. Find out what will be acceptable for Your Credit Score and the items contained on Your Credit Report.

Many people are looking to buy Real Estate in San Diego with interest rates and prices so low. If You can’t qualify because of Your Credit Score, I guarantee You there is a legitimate way to make it happen. It won’t be “over night”, but if You really want to take advantage of the current marketplace, I can help and it’s 100% Free.

How much an Inquiry affects Your Credit Score

July 26, 2011

Mr. Credit Credit Repair, Credit Score Secrets , , , Leave a comment

If You have ever thought every inquiry hurts Your Credit Score, I can tell you with certainty, this is False. For example, any inquiry in which You are pulling Your own Credit Report, will not affect Your Credit Score. It is technically not an “application for credit” and is therefore deemed a Soft Inquiry.  Other examples of Soft Inquiries are when an Insurance Company or Credit Card Company looks at Your Credit Report to “check-in” and see how things are going for You.  (They can legally do this by the way… it’s in the fine print).  Any Inquiry in to Your Credit Report for the sake of an application to obtain a new loan or line of credit is called a Hard Inquiry.  The Credit Scoring model looks specifically at the number of Hard Inquiries You have in the past 12 months.  In my experience, if You have less than 4, there is no negative impact on Your Credit Score.  If You have between 4-10 hard inquiries, there is a varying degree of negative impact.  Beyond 10, the damage is already done and it’s difficult to cause any more damage from there.  Since Inquiries make up 10% of the Credit Score, the affect could be as much as 85 points, though we usually see 50-60 points lost of Your number of Hard Inquiries in the last 12 months is above 10.

Avoid Hard Inquiries when possible, but don’t forget, there is no point in having good Credit if You don’t use it!

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