How to Trash Your Credit Score in a Hurry

www.kroemermortgages.com

This is certainly a tongue-in-cheek article, but this is precisely what some people do to their credit without knowing how it  lowers the scores.   As mortgage brokers and mortgage professionals in the Comox Valley.  I am constantly telling my client what not to do, but I believe this article tells why in the best way adding humour to a dry and serious subject most people do not want to talk about,


You don’t need a good credit score, right? After all, do you really need lower interest rates? Plus, lower insurance rates are kind of over-rated anyway. There is no need for a mortgage or car loan too. Any mortgage broker or mortgage professional can tell you how to increase your credit score, but have you been told how to trash your credit score in a hurry?

If you are ready to really take your credit score down a notch or two, here are some solid ways to take your rating to new lows:

1. Pay Late
One of the best ways to bring your score down in a hurry is to pay late. Since payment history accounts for the largest chunk of your credit score (35%), paying late can be one of the best ways to drop your score.

Even better is if you can skip a payment altogether. Skipped payments can weigh on your credit score like few other individual items. It’s also worth noting that an account doesn’t have to be credit related in order to affect your score. Repeated missed payments or late payment made to utility companies or landlords can result in reports made to the credit bureaus. And never underestimate the power of ignoring payments altogether and having your account sent to collections.

Bigger payment issues, like foreclosure or filing for bankruptcy can result in a 200 to 300 point drop in your credit score. Now that’s the big time.

2. Add More Debt to Your Budget
Trash your score

The more debt you use, the lower your credit score. With credit utilization accounting for 30% of your credit score, you can do some serious damage just by running up the credit card bills. If you are squeamish about paying late or missing payments, you can live beyond your means and just add more debt.

If you begin using more of your available credit, your credit score will reflect that. Someone with a good credit score will try to keep credit utilization to no more than 30% of what’s available. But if you want to keep your score low, you need to pile the debt higher. Carry a balance from month to month, paying only the minmum or a very little more, and you can work on building up your credit utilization.

3. Ignore Your Credit Report
You can’t improve what you aren’t aware of. One of the best ways to stay in the dark about your situation, and to keep your credit score low, is to ignore your credit report. Your credit report is a history of your credit related transactions. However, sometimes the information is inaccurate. This inaccurate information can impact your credit score.

Now, if you’re committed to keeping a low credit score, you don’t need to even look at your credit report. No reason to dispute errors if they are helping keep your score down. Plus, ignoring your credit report can leave the door open for identity thieves. When one of these scammers open an account in your name, that can be a great help in bringing down your credit score.

 

 

4. Apply for Lots of New Credit
If you are running out of room on your current credit cards, you might consider getting a new credit card. Applying for lots of new credit can be a great way to bring your score down a little bit. It’s not as dramatic as missing payments, but this strategy still has its place.

When you apply for a lot of new credit, it can appear that you are trying to run up your balances. Several hard inquiries into your situation in the space of a few months can lower your score a little bit. Soft inquiries, like those for “pre-approved” offers won’t bring down your score, though. If you really want to create maximum impact, you need to get out there and apply for more credit.

Applying for new credit card can just take a few minutes, most big box stores have people set up to take your application.

 

5. Go Get a “Shady” Loan

The types of credit accounts that you have only account for about 10% of your credit score. However, every little bit helps when you are trying for the lowest possible score. One way to ding your credit a little bit more is to get a “shady” loan.

Payday loans and car title loans are valued differently from more conventional loans from respected lenders. These types of loans, along with sub-prime credit cards and cards from retailers, can weigh on your score.

Note- Car title loans is a loan against your car at places like pay day loans. Get a loan in less than a hour using your car title. |It is not the loans you get from a car dealership.


by Miranda

Investment Property For The New Year?

Is 2013 going to be the year you add in an investment property to your portfolio of investments?
Interest rates are still low, so is it time to take advantage of a low rate mortgage payment,
making it more affordable and profitable to buy an investment property?
As with all other investments, it pays to study the market and gather all the information that you can.

Here are some tips for purchasing an investment property:

Do your research. If you are a first-time investor, it would pay to study the market as well as the risks and benefits of investing in properties. Be sure to brush up on the basics, such as the various factors that affect property prices and how these cause prices to rise or drop. Also pay attention to trends and news on the market and understand how these can influence the market. It's really important to become familiar with the ins and outs of the real estate business before buying investment properties as thorough preparation is one really good way to ensure success in the business.

Choose properties in a promising area.If you have done your research right, you will eventually come across "promising" areas where you can buy properties that will yield great profits. Promising does not necessarily translate to upscale properties that fetch high sale or rental prices, or cheap investments that allow you to return your investment quickly. A promising location is one that offers special features that are truly attractive to tenants. These features include schools for families, entertainment hubs for young professionals, or low-cost housing for college students. These promising features may differ with each type of tenant, and as such, you will have to...

Consider the type of tenants in the area. It may be tempting to choose a piece of properties based on what you would want yourself, but it's best to think of what your target tenants would like instead. When choosing properties, ask yourself what features your tenants would like or need. For instance, if you are catering to the college crowd, easy access to amenities, such as Laundromats, grocery stores or coffee shops may be important. If you plan on having families or young professionals as tenants, the property features you need to prioritise will change accordingly.

Take into account future expenses. As an investor, you need to carefully consider the expenses that will later on influence how much you earn from your investment. These include expenses for home repairs or renovations to make the house attractive to tenants and the taxes you will have to pay for on a regular basis. Make sure to include all these into your cost calculations to ensure that you will be able to afford purchasing the property and eventually earn back your initial investment.

Find a mortgage professional. They will let you know how much you will be able to afford, plus the interest rates will usually be lower than of a Banks interest rate, enabling you to profit the most.

Find a Realtor knowledgeable in the area of investment properties. Their expertise is usually because they have entered the investment property market and you can learn from them first hand all about what worked and what did not work for them. Could save you thousands of dollars.

Any questions, send me an email
akroemer@mortgagegroup.com

 

 

New Year's Resolution -Toastmasters May Be One

 

 

The Definition of a New Years Resolution is : A New Year's resolution is a commitment that a person makes to one or more personal goals, projects, or the reforming of a habit. A key element to a New Year's Resolution that sets it apart from other resolutions is that it is made in anticipation of the New Year and new beginnings. People committing themselves to a New Year's resolution generally plan to do so for the whole following year. This lifestyle change is generally interpreted as advantageous.

Last year I made a new years resolution to join Toastmasters. It took me until March to fulfill that resolution. Every week that went by, I had some excuse, In the Comox Valley where I live we have 3 different clubs- meeting different days, so it wasn't the lack of choice of the day that stopped me it was the fear of getting into the unknown. The big fear of speaking in front of strangers.

That first Wednesday in March, I took those fears, stifled them and headed to the Toastmasters meeting. I knew no one but I knew I wanted to become a better speaker.

I was warmly welcomed by the club, everyone introduced themselves and a member took me under their wing, introduced me to the club and sat beside me explaining what was happening as the meeting progressed. I did not feel confident enough to speak that evening and that was okay. Their is no harsh push for you to speak. It is a go at your own pace type of club.

The next week, I had a no excuse for not going. Let me tell you, I was looking for any excuse but could not. The club was warm and inviting, so I went.
In Toastmasters there is Table Topics, which is a time to practise speaking for up to 2 minutes without preparation. Thinking on your feet they say. You are asked a question usually to go with the theme of the evening and you answer the question to the best of your ability. The first night I went 26 seconds and that was fine. But, also that night I saw how much I needed the expertise of this club and their members to help guide me to become a better speaker.

I joined that night and I have never looked back.

There is a small fee when joining to pay for your books and rental of the room you meet in. The club I belong to is is less than $100.00 every 6 months. A bargain for sure.

What have I accomplished in 9 months at Toastmasters?
- Table topics for 2 minutes no problem
- Preparing and organizing a speech for 5-7 mins
- Preparing and organizing a educational speech for 8-10 minutes
- Prepared speech for 5-7 minutes without the use of notes (you can use notes for as long as you want)
- a confidence in speaking
- confidence in life itself
- new friends
- Leadership skills
Not bad for 9 months

Anyone and everyone can benefit from Toastmasters. Toastmasters is international. It is hard not to find a club in your area. Maybe this year is your year to join.

http://www.toastmasters.org This link will take to their introductory page as well as a club finder


Got questions about Toastmasters-- send me an email.

akroemer@mortgagegroup.com


So, What will be your New Years Resolution?