My dad kept nagging me to pull my credit report but I always thought because I pay my bills on time and am responsible with my credit there was no point.
Then last week I decided to do an online free credit score check and I couldn’t believe my eyes. There was a bunch of stuff on my report I had no idea was even there.
I started checking into it and it turns out someone got a hold of my personal info and was trying to take over my identity. I’ve heard of identity theft but didn’t realize how getting my credit report could help protect me from it happening.
On a lesser note there was also one glaring error on my report in regards to an account I actually did have. I simply contacted the company and they fixed the error which soon after was also corrected on my credit bureau.
“The 80/20 principle – that 80 percent of result flow
from just 20 per cent of the causes – is the one
true principle of highly effective people.”
— Richard Koch: is a former management consultant,
entrepreneur, and writer
Have you ever noticed when playing Monopoly there always seems to be a moment in the game where there’s a financial tipping point in the direction of the eventual champion of the Monopoly World? The same is true with the credit score game.
Once this tipping point occurs usually things become very easy and lucrative for this particular player… they now control the majority of the assets and cash and gain mostly unstoppable power over the other players and the economy of the game.
This is where we see the 80-20 in place.
Learn the Credit Score Game
Now in real life anyone has the opportunity to be part of either the 80% who struggle to barely make it or the 20% who live with a greater sense of financial ease and security.
As in Monopoly we all are required to roll the dice with certain decisions but we have the luxury of research, education and experience to back these decisions so it isn’t based on pure luck.
By diligently and wisely setting your course and with some solid financial planning there is no reason any of us cannot reach this tipping point within our lifetimes and experience the benefits of such a lifestyle.
A perfect starting point and regular check point along the way is to be intimately aware of your credit score and how it relates to your past financial decisions and how you should adjust or continue with your future choices.
Monopoly is just a game… life is not!
Be sure to take your financial future seriously by creating a plan and then diligently sticking to it monitoring it along the way to provide tweaks and adjustments as required.
Learn from Monopoly and the credit score game to help create your financial dreams and goals.
This world is filled with many different types of people…
Most of them are well meaning and sincere…
Unfortunately there is a small percentage who for some reason don’t seem to care about anyone but themselves and appear to be continually working the system, cutting corners, breaking laws and hurting others to move ahead in their world.
For all those landlords, employers, creditors and Headmasters this is where credit report diligence can really pay off.
Employers filling a new position do you really know your employee?
Landlords prepared to hand out a key do you know your tenant and their past rental experiences?
Creditors looking to extend credit do you know your client?
Headmasters do you know your students?
We all make mistakes and deserve a second chance however for those who are intentionally taking advantage of others for ill gotten gain there needs to be risk management checks in place for our protection.
Credit Report Diligence
By doing some personal and company due diligence you can often effectively screen most of the scammers before they cause you incredible grief, hurt and most commonly, financial loss.
Depending on your situation there are various avenues you can explore including:
Typical credit report looking for a pattern of financial irresponsibility
Federal Contract Exclusions (excluded parties list system)
Terrorist Watch list
OFAC
Sex Offender Registry
Workers Compensation
This post is not intended to spawn paranoia or fear but rather to install a sense of pre-planning to avoid some of the horror stories I’ve heard in the past.
As an employer can you risk finding out your new hire is on the most wanted list?
Are there any landlords out there looking for a tenant known to skip out on rent and trash their rental units?
Any credit providing companies looking for a few new clients who are known fraudulent offenders?
I didn’t think so…
Do your credit report diligence and save yourself some grief…
Inaccuracies on your credit report about account information, payment history or outstanding balances can cost you thousands of dollars in interest payments from higher than needed interest rates.
There are many ways credit report errors can come about…
Sometimes something as simple as using a middle initial or a nickname on one account and not on another could cause your one loan with good payment history to no make it on your credit bureau leaving one with worse history dragging down your overall score…
Often a payment can be made but if the creditor doesn’t accurately record it, your account may show overdue and cause a negative hit on your credit score.
Human error is also a factor to be considered… no one is perfect.
Credit Report Errors Can be Costly…
Regardless of how an error gets there its imperative you are getting your credit score on a regular basis so you can find them and do a credit report dispute to have it corrected as soon as possible.
Credit report errors that effectively lower your credit score negatively affects your ability to get credit as needed which could seriously impact your quality of life, hinder a business venture you may be looking to pursue or cause unnecessary stress in providing for your family.
A lower score will also force lenders to offer you higher interest rates on credit they do decide to give… this is simply wasted money on higher payments that could easily have been avoided by checking your score and insuring all the information is accurate.
Many people make an oversight of only checking the accuracy of the information they see on their credit report and neglect information that should be on it but isn’t.
If you have some good credit accounts that for some reason aren’t showing on your report it will definitely improve your credit score to contact the appropriate credit bureau and asking for it to be included… this will show greater responsibility in dealing with credit and give lenders greater confidence in extending you credit with a better interest rate.
Credit report errors can be costly so make sure yours is error free.
“There is no such thing as a problem without a solution,
only problems for which we do not yet have enough information to know what the solution is. When you have enough information, it is easy to solve a problem.”
— Jose Silva: was a American parapsychologist and author
There are a few reasons I really like this quote… Low credit score solution tips
It offers hope… I often personally feel stuck in problems with no way out. It is a great reminder there is always a way out. People often come to me grasping for a low credit score solution almost expecting me to not be able to give them one. The good news is if you truly want to get ahead in your personal finances there is always a solution.
It takes the mystery out of a low credit score and provides a tangible solution.. Many people seem to believe increasing their credit score is smoke and mirrors or is based on “who you know”. Once they see it is pretty much pure science it gives them something they can build a solid plan on and obtain an expected result.
Many problems require great amounts of information to achieve a solution but the low credit score solution is not one of them. Boosting your credit score is actually a very straight forward and simple process once the key points are understood and implemented.
It takes away my excuses… This isn’t a warm fuzzy feeling point but a good one for those of us who are ready to cut the crap and get down to business. It is easy to look at the mountains of obstacles, get discouraged and determine it just isn’t possible. Well like I said in point #1 there is hope….. there truly is a low credit score solution
This blog is filled with plenty of posts outlining exactly what is needed to bump your credit score up to the next level… the information is right here… get your credit score today if you haven’t in a while and take the first step in the low credit score solution.
What does a person who doesn’t own a house do if they need a loan?
Lenders typically want security when looking at approving an instalment loan.
Then those with bad credit and no house are especially up a creek…
Or are they?
Bad credit tenant loans are a little known option available and most anyone can qualify.
Since these are unsecured loans they will come with a higher interest rate and may also have a shorter repayment window but the benefits are they still usually have a lower interest rate than most credit cards so these loans can be a good solution to pay off credit card debt amongst other things. Since most lenders don’t dictate what you do with the money the sky really is the limit.
Steps to take when applying for a bad credit tenant loan
Get your credit score - don’t go in to see a lender blind. You are at their mercy and you look unprepared if you walk in with nothing to show. Any lender will pull your credit report so don’t think you will sneak one over on them by not getting yours. This shows you are taking initiative and willing to work at improving your credit score. It also helps you understand why your score is low so you can have a plan of attack to talk with the lender about.
Don’t appear desperate and accept the first approval that comes your way. Since you will be offered higher interest rates when applying for a bad credit tenant loan by shopping around and showing other offers to other lenders you can often negotiate better repayment terms and rates.
If you are finding it difficult getting approved you can adjust one of two things. You can begin requesting a smaller amount of money or you can request a shorter repayment term. Either or both of these will make a lender less nervous about extending credit on a bad credit tenant loan. Getting the loan will not only provide you the cash you need but also an opportunity to repay it with timely payment which will do wonders for boosting your credit score for next time.
If you are really stuck another option is to find a co-signer but I would save that for a last resort.
So if you are in a cash bind and don’t want to add a much larger balance to your credit cards consider applying for a bad credit tenant loan as an option.
“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.”
– St. Francis of Assisi
Many people come to me discouraged about their credit score…
Often they feel only a certain elite, those who “know the right people” or people born with a silver spoon have a high credit score possible in their lifetime.
I understand the frustration but in reality a credit rating worthy of low interest rates and the favor of the best creditors is within reach regardless of your social status, career, or address of your Zip Code.
Is a High Credit Score Possible for Anyone?
There is no smoke and mirrors involved in attaining the highest possible credit score.
It really just comes down to being willing to follow some common sense financial disciplines regarding credit and debt.
It is important to get your credit score on a regular basis. Picture a mechanic trying to fix the engine on a car without opening the hood. You have to know whats broken before you can fix it. Get your credit score and study it for errors and to see where you are falling short. The FTC mandates every US citizen can get their annual credit report free once every 12 months. Take advantage of this.
Pay your bills on time. Your credit score reflects the likelihood of you paying back credit extended so it makes sense the biggest red flag to creditors are from those who pay late or don’t pay at all. As soon as you get a bill enter its due date in your calendar, put a reminder in your cell phone or put a sticky note on the fridge if you have to… do whatever it takes to remind you to pay it on time… it really is THAT important.
Don’t take out new credit unless you absolutely need it. Your credit score reflects how responsibly you handle credit. If you are forever getting new credit cards, lines of credit and loans for no legitimate purpose it looks like you are flippant with credit and seen as a credit risk.
Don’t be quick to close old accounts… even if they aren’t being used. Part of your credit score strength comes from the average age of your accounts Older established accounts (especially if kept in good standing) are a bright star on your credit report.
Be sure to contact the credit bureaus (Equifax, Trans Union, Experian) with any errors requesting the proper information replace the errant.
As with anything if a person is starting from the beginning it will take time to develop the proper habits and for the lenders to begin to trust your ability to handle credit responsibly so its important to be patient, consistent and to chip away at it.
Although a high credit score is possible for anyone don’t expect yours to sky rocket over night. Trust is something that takes time to develop and creditors are careful with who they lend their money to. The more trust you build the more favorable they will be with their interest rates and approval process.
Is a high credit score possible for you? Absolutely! Start today with the necessary, then do the possible and before long you will be amazed with the impossible…
We’ve all heard the famous saying… “don’t put all your eggs in one basket”… well I have another one for you…
“Conventional wisdom is not to put all of your eggs
in one basket. 80/20 wisdom is to choose a basket carefully,
load all your eggs into it, and then watch it like a hawk.”
— Richard Koch: is a former management consultant,
entrepreneur, and writer
When it comes to the “credit score basket” there really only is one basket so your sole true option is to choose your basket wisely.
With our investment portfolio we can diversify.
We can hold some cash in savings, some bonds, some high risk and some low risk stock, real estate, local and off shore, precious metals, antiques and art and various other assets.
We can position ourself with multiple streams of income, use tax saving methods to shelter some of our income and even hire a financial service advisor.
All Your Eggs in the Credit Score Basket
Although we each have 3 credit reports; one from each of the 3 main credit bureaus, Experian, TransUnion and Equifax ideally they should all hold the same information so our approach is identical for each of them.
In the end we only have one credit score basket to work with so you better take it seriously and make the most of it.
The good thing is that at anytime it is possible to rethink how you use your basket…
As well you can choose to put different things in your basket and take out others…
You have the option of sticking it in the corner and forgetting about it or to carry it with you wherever you go and treat it with respect and care.
Many people scarcely realize they even have a credit score basket which doesn’t rank as an excuse for not having a good one.
“The chains of habit are too weak to be felt until they are too strong to be broken.”
– Samuel Johnson, Lexicographer
Taking a few minutes now and again to learn more about your credit score rating can help boost your credit score and save you money.
Incredibly most consumers are still unaware of the basic facts about credit scores and the significance it serves on their financial picture.
A recent survey shows only 27% of consumers realize their credit score measures credit risk and the likelihood of them paying back a loan on time.
Considering its importance its well worth the time to adopt a few simple good credit score habits to increase your score.
The three main credit bureaus TransUnion, Exquifax and Experian devise your credit report score as a number between 300 and 850.
Generally those with a credit score in the 700 range get lower interest rates and those with scores of 760 and over get the best rates. If your credit score is 600 or below you will normally be charged higher rates and if your score is very low it is often difficult to be approved for credit at all.
There can be many ins and outs to increasing a credit score but if you only adopted the following 4 good credit score habits you would do wonders to increasing yours.
1. Always pay your bills on time. Paying bills late have one of the greatest negative impacts on a persons credit score. With a credit score in the 700 range you can raise it as much as 20 points simply by paying your bills on time for 1-2 months.
2. Keep your credit card balances low. A high debt ratio (outstanding balance versus credit limit) can negatively affect your credit score. Continually having your cards maxed out can lower your score as much as 70 points.
3. Don’t obtain new credit you don’t need. New accounts will lower your average account age which can lower your score by up to 10 points.
4. Have credit cards if you use them wisely. Having credit cards and loans (provided you pay your bills on time) will actually raise your credit score. Someone who has never had credit has also never proven they can handle credit properly so they will actually have a lower score than someone with credit used responsibly.
Now that you know the 4 good credit score habits to adopt go out there and create some new “good” habits.
You may have setbacks and you will likely make costly mistakes (as we all do that) but in the end your sheer determination to carry on despite the adversity is what is required to finish the journey well.
Many “preach” education and understanding and although these are both good and often necessary they will not get you the “prize” in and of themselves.
I know many incredibly smart, educated and talented people who lack the drive to even begin to utilize a small percentage of their potential. They know exactly what to do and how to do it but for some reason they seem frozen in inaction.
On the flip side I know many others who have little to no education and have a fairly rough “skill set” but are crushing it in their financial world and with improving their credit score simply because they refuse to give up and use their failures as a lesson to grow for next time.
Free Credit Score Mindset
Like the quote above the mindset we need is one we tune into… it is an attitude… a stance… a perspective.
There are many who went before us and countless who currently surround us whose company we would do well to glean from.
Read some books… join some mailing lists… join a Mastermind group and start allowing the attitude for success to begin seeping into your belief system.
The free credit score mindset is available to anyone and everyone… it is there for the taking… well… rather… it is there for the tuning in. Find the proper station today.
Ok…I realize this may sound really basic but although we all believe this in our minds do we actually know it in our heart?
Do you live your life… think your thoughts… make choices… and act as if this were true?
People come to me in all sorts of life’s situations… while in the middle of a home purchase… entering retirement… training for a new career… saving for their future… trying to improve their credit score and speak of problems and setbacks as if they were to be the end of their hopes and dreams.
They seem to think these situations control their ultimate destiny and therefore mitigate their need to try any further.
Greatest Credit Score Lesson
Sure when “crap” happens it can be discouraging and frustrating but it’s important to remember not a single person in history achieved greatness without also facing many hurdles and only succeeded by finding a way around… over… under… or through them.
Those who give too much power to circumstance will camp indefinitely at the hurdle before them which will ultimately be the defeat of all they have hoped and worked for.
Although you may have overcome a hundred thousand obstacles in the past if you give in to the one before you… success is in jeopardy.
It is in realizing you are responsible for your own life… your own career… your own family… your own finances… your own credit score… that you take back the power to achieve all you have ever dreamed of.
By assuming full responsibility for success or failure you stop the debilitating mentalities of blaming and making excuses and set your life in fast forward motion with no reason to slow down or look to the left or right.
Since you are choosing your own future circumstance or other life influences now longer factor in.
Today I hope you have learned the greatest credit score lesson is you are responsible for your own…
My dad kept nagging me to pull my credit report but I always thought because I pay my bills on time and am responsible with my credit there was no point.
Credit Report Errors Can be Costly…
“There is no such thing as a problem without a solution,
“The chains of habit are too weak to be felt until they are too strong to be broken.”
“The greatest lesson of life is that you are responsible for your life.”