People’s credit scores are as personal as their undergarments, and they’re something most people just don’t like to discuss. There are people who suffer from bad credit most of their adult life and never do anything to correct it because they don’t know how or who to talk to. This blog is written to provide help to potential buyers and their agents, and I hope you’ll post it on your website and share it with your database. Be careful not to become a Credit Counselor, which is a violation of the law in many states; instead, know where to send your prospects if they need help. A good place to start is http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm; most of these services are free.
The Fair Isaac Corporation website was a major source for this information; many of you know the site as MyFico. A person’s credit score is calculated using information segregated into the five categories below (the percentages show the weighted value of that category in calculating a score):
- Payment history 35%
- Amount of debt 30%
- Length of credit 15%
- New credit 10%
- Types of credit 10%
It’s important for a borrower to understand that people with high credit scores generally receive lower interest rates a loan than do people with low scores. Potential buyers should check their scores periodically to make sure that there are no mistakes on their report, as errors are not uncommon. Hop over to the MyFico page to learn more about calculations: www.tinyurl.com/yb655lb.
5 Actions a Person Can Take NOW to Improve or Maintain a Credit Score
1. Order a credit report to determine your score and to see if there are any errors on the report. You can order from myfico.com to get your score and report. In order to check your entire reported credit history, by law you’re allowed one free credit report per year from each of the three reporting agencies: TransUnion, Equifax, and Experian. You can get all three free reports from annualcreditreport.com (this is the only site that’s authorized by the federal government and guaranteed not to charge you any money).
2. Pay your bills on time. Automatic deductions may be a failsafe way to ensure your payments are made on time.
3. Don’t open new credit accounts if you already have an established credit history.
4. If you don’t have a credit history, it may be a good idea to get a credit card and pay the balance monthly. Keep in mind that those without any credit history may need to start with a guaranteed credit card, but the important thing is to get started.
5. If you are having trouble paying your bills, contact your creditors to try to work something out before you get further behind.
6. Contact a Credit Counselor for advice if you’re truly struggling.
The Last Word
Bad credit can cause a person a lot of grief. It can cost someone a job, prevent them from owning a home, and cause them an enormous amount of stress. In most instances, though, bad credit is curable, and may not even be as bad as imagined. If you’re seeking an answer as to what to do next regarding your credit, visit MyFico’s credit improvement page: www.tinyurl.com/cqfd6. They can help get you started!
Thank you for tuning in and please share this blog with your friends.
You don’t have to be in real estate very long to realize that all real estate agents are not created equal. Some have a wagon-full of information for buyers and sellers and delivery mechanisms that attract and inform potential prospects and separate themselves from the real estate herd. Others have very little or nothing at all to inform, inspire, or distinguish themselves other than maybe a business card.
Home buyers and sellers today shop extensively online without contacting a real estate agent until they find a house to buy. Without a sufficient resume on your website or an information package, it’s very difficult to compete with an agent who explains who that agent is and what they have to offer as a person. This blog “Create a Personal Resume to Distinguish Yourself from the Competition” explains the best ways to present yourself and set yourself apart as The Agent of Choice.
The How-Tos of Creating a Distinguishing Personal Resume
The Right Style. Resumes come in two main styles: templates and narratives. Each has their plusses and minuses, and many agents have both. The template resume is typical of a resume that would be attached to an application of some kind, and the information is usually separated by bullet points (here’s an example: http://tinyurl.com/ocfh98l). On the other hand, a narrative resume is written like a story and contains paragraphs instead of bullet points. I use a narrative resume for most of my work; you can see a print a copy of mine here: http://leroyhouserseminars.com/about/. I use this style of resume the most because the majority of my customers know me and do not need the detail that would be included in a template design. For capturing a new lead, the template style of resume usually works best and should be posted on websites and included in information packages.
A Video Resume. This can be a game-changer for the online shopper. A total stranger has the opportunity to hear your voice and see your face, and when you’re competing with other agents who don’t have video, these traits immediately distinguish you from the competition. You can also include Read the rest of this entry »
Property management is the “cash cow” of real estate and in a tough real estate market, the profits or cash from a property management business can save the day for a real estate company or agent. It certainly saved the day for our real estate company in the early 1980’s when the market tanked. Since it fits perfectly into a residential sales operation, I wrote “The Residential Rental Market Presents a World of Opportunities” to shed new light on this potential source of income that some companies and agents completely overlook. I also want to emphasize the important role that these rentals will play in residential sales in the future.
Opportunities Rentals Create
Small Space, Big Money. Property management doesn’t take up a lot of floor space in a real estate office compared to the space needed for an average-sized sales office, so the income per square foot could be substantial. I have many agents in my seminars who Read the rest of this entry »