NUMBERS NEVER LIE

What do numbers really mean? There are all kinds of numbers. License plate numbers, numbers when we visit our favorite fast food restaurants, #5 or # 1 please. Gas stations have numbers can I get $20 on pump 7 and of course we all know about social security numbers. I have been thinking about our numbers a lot lately and here is what I came up with. I thought I would share them with you. Perhaps they mean something, perhaps they don't. Nevertheless numbers are all around us, from our shoes to our scales, they are there to give us a measure of where we are, where we are going and where we want to be. Below we've compiled some numbers of our results over the last four months.

68 new clients since June 1, 2013

90% completed (we expect to have these 10% completed within next 30 days) these were very large scale clean up's all with more than 40 items per bureau to dispute!

43 clients with a 780 FICO score on at least 1 credit bureau.

62 clients with a 750 FICO score on at least 2 credit bureaus.

68 clients with a 700 FICO score on all 3 credit bureaus.

We work directly on your behalf to update your credit profile to read accurately. 

We provide FULL services on a FULL 1 YEAR TERM assisting YOU AS A CLIENT in removing negative and inaccurate items from your credit report. 

Once you enter our program you will start seeing exciting results in the first 30 days. 

Most of our clients will be completed within the first 30 days! 

The faster we can get you completed the better for us!!

We will continue to work with you for 12 months if necessary; for NO ADDITIONAL FEE until we have your file complete. 

In MOST cases we can remove all disputed items within 30 days.

Contact us TODAY!

Blessings to you all today...

Day 2 "FYI DIY"

Make sure you double-check your report for minor errors. Particularly things that should have fallen off due to statue of limitations requirements, incorrect remaining balances and limits listed as lower than they are, and inconsistent paid off dates. 

A lot of consumers we polled believed that paying their bills on time was the most important factor that influenced their credit score. However that is not always the case, even if you pay your bills on time and have a maxed out credit account (loan, line or card) it will have an adverse affect on your credit. Consequently, if your credit report shows your balances as higher than they are in reality or your limits as lower than they actually are, this by itself can severely impact your credit score.  

There is a biblical saying that "the small foxes spoil the vineyard." In other words these seemingly minor items can have a major impact on your credit score. The truth is that they are all too common and commonly overlooked by consumers, who are looking to point the blame at the bureuas or some identity thief.  

Delinquencies should age entirely off your report after 7 years, and bankruptcies after 10.  The precise date of a short sale or foreclosure can actually be the deciding factor in your ability to qualify for a home loan - so make sure it is reported accurately. 

Life...

Life. It is what it is, a constant change of events, circumstances and situations. Raymond Feist said "Life is problems, Living is solving problems." In life there will be changes that occur but you must keep on living. Our goal is to help your transition through some of the changes that life throws your way, make them more manageable, less stressful and calculate your plan for recovery. Whether it was divorce, unemployment, foreclosure, whatever it might have been that swept the rug from under your feet financially; we may have a plan to help you get back on track. The first step is admitting that you need help. No this is not a 12 step program, however we do believe in being honest with yourself. Are you a bad money manager? Are you living above your means? Is fear holding you back? Second you must take action. If you never take action, absolutely nothing can change in your life. Third you must create a realistic plan to take back control over your life. There is nothing that can send you reeling backwards quicker than a poorly planned escape. We can assist you formulate a realistic plan that you can adhere to and commit to until your personal goals are accomplished. Last but not least you must make up in your mind that you are ready for change. You may ask, if I am honest, take action and create a plan, am I not already making a change mentally? No this is not always the case. You must make a paradigm shift that you will never go back. Whatever it is that caused you to go down this path, you will never go back down this path. Whether it’s a bad relationship, certain environment or addictive behaviors disguised as innocent pleasures, you can never go back down that road. We have all heard stories of people who make all of the afore mentioned changes but perhaps months, years or decades later are back in the same or worse predicament. You must never bring ANY of the negative stimuli with you into your new life. The ball is now in your court, it’s up to you to change. Change is indeed inevitable. You will either change for the good or the bad but I can assure you that you will change. The path you take is totally up to you.

How Monthly Liabilities Apply

Using the example from two days ago, let’s say you’re trying to decide how much house payment you can afford coupled with other monthly obligations: A vehicle payment for $300 per month & $80 per month in credit card payments. Assuming our example income of $5,638 per month, in order to purchase that same house for $350,000, the monthly income would have to be $6482 per month adjusting for total monthly liabilities (determined house payment + other debts) ÷ monthly income. The other choice is to reduce the purchase price to $300,000, with effectively $380 per month in other debts, which influences borrowing power by $50,000.

*Mortgage Tip: take 45% of your monthly income less monthly liabilities. This is the maximum house payment you can qualify for, then simply equate what the monthly payment is relative to how much you can borrow based upon using $725 per month for every $100,000.

12 DAYS OF MASTERING CREDIT - DAY 11

If you're Bill Gates or Warren Buffett then you probably don't need to read this article. This means that you are probably too rich or too smart or perhaps both, so you have this one financial trick under control.

However for the rest of us, making, and especially adhering to a budget is essential to ensure that our money gets used the way we need it to. Perhaps you are in the best situation possible financially, you have great income you pay all your bills on time each month. Nevertheless you may find that you are spending more than you wish on items that may seem like necessities but are really luxuries.

The one mistake I've seen beginning budgeters make is becoming financial party poopers. You have to keep in mind that you do not want to cut out ALL the fun, you have to make room for entertainment and splurges or your plan is doomed to fail.

Remember its like a financial diet, moderation is the key. If you like to eat out everyday of the week, it doesn't have to stop. You can still eat out but perhaps just not every day of the week. Here are 10 steps to budgeting.

1. Budgets are a like flies

Nobody likes them around and we all find ways to get rid of them when they show up. Unfortunately they are essential to our financial ecosystem.

2. The budgeting two step

You can dance around this issue for months or even years you are going to need a budget. The key is to identify how you're spending money now.

- Evaluate your current spending and set goals that take into account your long-term financial objectives.

- Track your spending to make sure it stays within those guidelines.

3. Don't try to be a whiz kid

If you use a personal-finance program such as Quicken or Microsoft Money, the built-in budget-making tools can create your budget for you.

4. Driving Mrs. Crazy

Some people find that once all the info is on their computer they become money control freaks. Once you determine which categories of spending can and should be cut (or expanded), concentrate on those categories and worry less about other aspects of your spending.

5. Don't call the plumber

If money leaks from the ATM machine without apparent explanation, it's time to keep better records. In general, if you find yourself returning to the ATM more than once a week or so, you need to examine where that cash is going.

6. Watch the spending limits

Spending limits should be observed just like speed limits.When they are not adhered to then it can be dangerous. Surveys show that many households with total income of $50,000 or less are spending more than they bring in. This doesn't make you shoe-in for bankruptcy, but it's definitely a sign you need to make some serious spending cuts.

7. Beware of luxuries dressed up as necessities.

If your income doesn't cover your costs, then some of your spending is probably for luxuries - even if you've been considering them to be filling a real need.

8. Tithe yourself.

Most people tithe to churches or other charitable organizations. In addition the only way you are ever going to see a significant amount of money saved up is to tithe to yourself. That means taking 10% off the front end of your income and placing it in a savings account. Also I suggest that you have an account that doesn't have an ATM or debit card attached to it.

9. Don't count your chickens before they hatch.

When projecting the amount of money you can live on, don't include dollars that you can't be sure you'll receive, such as year-end bonuses, tax refunds or investment gains.

10. Save until you can't save anymore

As your annual income climbs from raises, promotions and smart investing, don't start spending for luxuries until you're sure that you're staying ahead of inflation. It's better to use those income increases as an excuse to save more.

12 DAYS OF MASTERING CREDIT DAY 1

12 DAYS OF MASTERING CREDIT

Every Christmas each child anxiously counts down the days to when Santa Claus brings them joy, good cheer and every item at Toys R Us (right?). The same anticipation should be felt by us adults who decide to grab the bull by the horn and tackle the uncertainty of correcting their credit. A lack of credit knowledge can cause you to pay more than you have too, both in the future and now. Fortunately there is hope, over the next 12 days be on the lookout for a tip a day on general credit knowledge that will assist you in taking that first step to a new life, a new you for the new year.

DAY 1

WHAT IS CREDIT?

We all know that we need good credit, or at least want to have it, but what exactly is credit? The majority of us does not find out what credit is, until we get to college or decide to make a major purchase sometime in our adult life. There are several ways to augment your credit but before you do that, you need to know what credit is, how it functions and how it can hopefully help you, instead of harm you. Let’s take a deeper look at what exactly credit is.

Credit is your reputation as a borrower. I often tell customers that it is equivalent to your interview at a job. A potential creditor has no idea who you are. They don’t know how much time you volunteer in the community, how you make sure the office is never without coffee or if you read to your child every night before they go to bed. They know none of this and quite frankly could care less. They want to know how much financial integrity you have. Your credit informs them what is likelihood and the chance that you are going to pay your bills on time, month after month. They want to get personal with you and check all into your financial past.

There are many misconceptions around the information that makes up your credit and all things that pertain to it. However, the best thing you can do initially is to make sure that the information you provide on all your applications are accurate.

In the beginning credit was primarily used for making lending decisions. However in recent times, especially since the financial fallout that started in 2007, they use credit scores and reports for other areas of your life. Most importantly of all the people that access your credit are potential employers.  Also they use your credit reports in determining insurance rates and premiums.

THREE COMMON MISCONCEPTIONS ABOUT CREDIT

1: Credit bureaus are officially recognized entities.

WRONG: Credit bureaus are companies which are in the business of making money at your expense. They gather together stories told by their “friends” and tell them to their other “friends”, without consulting you whether or not these things are true. That’s one of the main jobs of the Fair Credit Reporting Act that is to make sure not what they CAN do but what they CAN NOT do especially to your detriment. A credit report is not even an official legal document; I mean your driver’s license carries more weight with the government than your credit report, at least that’s the way it was meant to be. It at the beckoning of the “machine” which is corporate America it has caused many much grief, anguish and has even pushed some to suicide. It has more influence but not as much substance as a two-dollar bill.

2: Items on your credit report are required to remain for 7 years.

WRONG: This has been misconstrued due to the relation with Chapter 7 & Chapter 13 bankruptcy filings, nothing, I mean absolutely NOTHING is REQUIRED or should I say mandated to stay, other than that which can be ACCURATELY verified.

3: I have good credit because I pay my bills on time each month

WRONG: You have to understand there are a lot of factors that go into determining your credit score and one of them is your debt to credit ratio. You have to have this under control and understand what it is. Your debt to credit ratio is your debt that you have versus the total available credit that you have. Let’s say you have a credit card with a $10,000 limit & you owe $2500 then your debt to credit ratio is 25%.

In the days to come we will explore more of these topics in detail and others such as how your credit score is determined, your rights as a consumer and good debt versus bad debt. For more information on how to start your credit makeover visit our website. The Credit Genius

 

Black Friday Is Coming To Town

I was reading over the lyrics to Santa Claus is Coming to Town and decided to write a blog dedicated to creating a better shopping experience on Black Friday.

1. You better watch out

Be careful of your surroundings when out shopping. If you are making major purchases you may want to take those items home as opposed to leaving them in your vehicle all day. Make sure to hide all packages out of plain view of those with less than good intentions this holiday season. Finally at all costs avoid going alone.

2. You better not cry, You better not pout
Guess what?!?! Your favorite item may just be sold out. Keep a good attitude about it and move on to the next item.

3. Making a list, And check it twice

Before heading out to brave the elements, traffic and stand in line at Starbucks (you didn't know Caffeine was mandatory for Black Friday). Make a list of items & break them down into three categories that you plan to snag. From got to have, must haves and just want to have. Prioritize the items and try to map them by location as well. Don't forget to coordinate with your fellow shoppers to maximize time and avoid backtracking.

4. Who's naughty and nice

There is the old adage that says it pays to be nice. I can attest to this from personal experience. My wife and I have been shopping several times when other customers have offered us coupons or to skip ahead in line. Also there have been times where we have gotten free coffee or food while waiting. You never know who's watching so it's better to be nice instead of naughty.

5. He sees you when you're sleeping, He knows when you're awake

You have to ask yourself is it really worth it to wake up THAT early? The answer lies somewhere in how early THAT is. Take into account that most of the best deals come in limited quantities. Then calculate the sleep that will be lost plus gas used times elbows thrown (just kidding I hope) to see if that one deal is really worth it. If you deem that it is indeed worth it, then set your alarm clocks and get ready to participate in the melee, madness and methodology of America's biggest shopping day.

Remember Black Friday is coming to a town near you, so be smart for your savings account sake...

SIX STEPS TO GET OUT OF CREDIT CARD DEBT

1. Pull Out Your Credit Card Statements And Get Them Organized

Pull out your credit card statements and get them organized in file folders. Also you may want to get a copy of your credit report from annualcreditreport.com to make sure there are not any lingering accounts that you are not aware of.

2. Complete Your Budget Worksheet.

Complete a budget worksheet and fill it out completely. Now write down the name each account, the outstanding balance you owe, the minimum monthly payment, and the payment due date.

3. Assign a Number To Each Account

You can calculate it by dividing the outstanding balance by the minimum monthly payment. (For example, say you owe $1,000 on your Visa card and the minimum monthly payment is $50. Dividing $1,000 by $50 gives you a number of 20. Do this for all of your credit card accounts.)

4. Assign a Ranking To Each Account

Assign a ranking to each account. The account with the lowest number is ranked #1. The account with the second-lowest number is #2. And so on.

5. Calendar The Due Dates

Calendar the due dates. Enter the payment due dates for all your credit accounts in your computer’s calendar system. Set your calendar software to remind you of each due date at least five days in advance so you don’t make any late payments and get hit with costly late fees and penalties.

6. Start Paying Down Your Debt

Start paying down your debt. Each month, as the payment due dates approach, make the minimum payment on every account…EXCEPT for the one with the #1 ranking. For that card, make as big a payment as you can manage. Ideally, your payment should be at least double the minimum. (Hopefully, FINDING extra money will make it easier to come up with the money you will need for this.) Once a card has been paid off entirely, you retire it and start paying down the card with the #2 ranking.

This is a good general jump start to your financial future. For more detailed advice you may want to seek a certified credit counselor. Also a lot of banks offer free programs to help you achieve your financial goals.