KEYS TO CREDIT

Know Your Credit History and Score

In our last blog I told you I would show you ways to get your credit report and score without an impact on your credit report or score. Over 70 million Americans suffer from negative credit. Most of us realize too late that our entire lives revolve around our credit reports. Knowing your credit history early and working to maintain and improve it can improve the terms of your purchase or loan as well as your long term financial health.

What is a good score you ask? Very good score is 780 to 850. According to Fair Isaac the company that developed the first credit score, Americans fall into these credit score rankings:

• Less than 500............2% of the population


• 500 to 599..................13%


• 600 to 699..................27%


• 700 to 749...................18%


• 750 to 799...................27%


• 800+ ....................13%

Your credit score is a number from 300 to 900. Do you know your credit history and you credit score? The lender needs to know how big a risk you present if your not paying them on time. There are three major credit bureaus:

1. Equifax http://www.equifax.com/


2. Experian http://www.experian.com/


3. TransUnion http://www.transunion.com/

You are entitled to a free copy of your credit report once a year from each of the bureaus. Go to http://www.freeannualcreditreport.com/ and follow the prompts. You will have to pay a small fee for your score but it is worth it. So if you have not done this in the past 12 months.......TAKE ACTION NOW........and do it today.

Until next time........Know your credit history!!!!

UNLOCK YOUR FINANCIAL FUTURE

MILLIONAIRE MINDSET-KEYS TO CREDIT

We are going to begin a series of blogs outlining steps to unlock your financial future. Here is a list of topics we will address to help you reach financial freedom and change your financial outlook:

• Understanding Credit and FICO
• What is a good credit score and how a higher FICO can save you money
• Factors affecting your score
• Know your credit score
• How to improve your score

Now once we get your credit improved and your FICO score above 700 we can start building on your finances. With good credit you may be able to create a wealth stream that will allow you to reach that Millionaire status. That is our goal right? Remember wealth creation is a process not an event!

I do not want you to pull your credit or allow anyone else to because each time a creditor accesses your credit file an inquiry is placed in your file and to many can affect your score. In my next blog I will show you how to obtain your report without hurting your FICO score. Be sure to check back in a few days...............

"IMPROVE YOUR CREDIT SCORE"

Hey Folks lets shift gears a little......that's what my old mind does......but this is great! Want to get you started on that path to "Millionaire".

First things first, here are the things that negatively impact your credit score 1. Collections, Charge offs, Foreclosures, Tax Liens and/or Judgments 2. Delinquent accounts and late pay dates can account for 30% of your score 3. Any balance on a revolving credit account (revolving accounts are things like Credit cards, charge accounts) that have balances of 50% or more of the high credit limit 4. Inquiries Note: Medical collections do impact your score slightly but not very much. If the medical collection has been turned into a judgment, the judgment will impact your score a great deal.

I see many credit reports and the people with the highest score usually have 4-5 accounts. They have one or two that are installment loans, like a car or mortgage, and 2-3 that are revolving accounts that have low balances. In order to get a good score you need to have current good standing accounts. People who advise you to pay off all credit cards and never use them are COMPLETELY WRONG!! It’s always good to have a credit card with a small limit and keep the balance below 50% of that limit and pay it off every month.

Tips for cleaning up your credit report: 1. Pay all collections, charge offs, judgments (I would pay one off at a time instead of sending payments. Collections don’t show late dates and don’t show when your last payment was made. It’s not the balance on the collection that affects you, it is the collection its self 2. Get all credit card balances under 50% of the high credit limit (start with credit cards that are over limit). Close the ones you don’t use or don’t need. Do keep at least 1 or 2 cards open but keep the balances low and try to pay off each month 3. Call the credit bureaus to put in disputes on all accounts once they are paid. Some collectors will not report it “as paid in full”. Experian: 800-831-5614 Equifax: 800-685-1111 Trans Union: 800-916-8800.

Accounts will stay on your credit for 10 years as of the last date of activity. Make sure that ALL accounts are reporting right. All the accounts that are closed should show Account Closed and all balances should be correct. If they are not, contact the Bureaus above to correct. Inquiries affect the score slightly and will stay on for 2 years. Don’t just randomly apply for credit get selective about applying for credit at places you shop. The score model used to determine your scores is different for what credit you are applying . A mortgage score is the strictest and will always be lower than your consumer score. A consumer score is the score when you purchase unsecured credit. There is no report impact when you pull your own credit. A great site for free credit reports is www.freeannualcreditreport.com. You get one free credit report from each bureau a year. After that, I would use the Bureaus websites to pull and manage your credit. It’s usually cheaper than any other site.

More on Credit Repair later. Hope this helped.

Good Luck and Congrats on taking the first steps to getting your credit score back up!!! Remember "TAKE ACTION DO IT NOW!!"

"THE MILLIONAIRE MINDSET PART 2"

Many, many books have been written on this subject. Just visit your local bookstore and browse the financial section. Later in this post I will give you a list of some of my readings. This mindset idea is a tough nut to crack. Especially since we are kind of set in our ways. Well, since you asked, ....."how do I change and have this millionaire mind set"?

There are 2 basic elements to changing and getting into the right mindset. Attitude and drive, that is taking action now with a very positive attitude. Once you position your self and accept the affirmation that "I will accept and make change" then you're half way home. Attitude affects everything and with out a positive outlook it is hard to have the drive to accomplish our goals. Now, you must affirm (talk to your inner self.......no they won't think you're crazy). This is a technique used to convince your inner self that you will make it happen. Notice here that I use the word "will", yes it has to be positive absolute without doubt to succeed. Let's practice.....go get in front of a mirror and take your right eye and look into you left eye, now repeat after me "I am a multi-millionaire with money not yet deposited in my bank account" five times. Now just keep this going..........yes until you believe OK! This technique will work for any affirmation you want. Just make sure it is positive.....I will!!.......remember, no maybe.

Once you have your attitude in check and are driven by your motivation you need to reach out for the education. Robert Kiyosaki calls it "financial IQ" the higher your financial IQ the more money you will make. In his book "Teach to Be Rich" he states "If you have money but no financial education, the money is soon gone. If you have a strong financial education, you can make a lot of money.....more money than most people can dream of......even if you have no money at all". Your learning curve is going to be key to developing your "Millionaire Mindset". Wow! Where do I begin?.....well I started with the local Library. There is a wealth of books and information, book stores and boy..oh..boy the age of the "INTERNET". Now this brings me to a point in this post that I promised you and I am giving you my list of readings:

1. Think and Grow Rich, Napoleon Hill 2.Rich Dad Poor Dad, Robert Kiyosaki 3. One Minute Millionaire, Mark Victor Hansen & Robert Allen, 4. Be A Real Estate Millionaire, Dean Graziosi
5. The Purpose Driven Life, Rick Warren 6. The Millionaire Real Estate MindSet, Russ Whitney
7. The Millionaire Next Door, Thomas Stanley & William Danko 8. The Road To Wealth, Robert G.Allen. There are many more but these I have in my Library. I suggest that you get on the path of increased "financial IQ" and learn the secrets of the wealthy!!

Until my next post I wish you good Health, Wealth and Happiness. "Seek and you shall find ask of Him and you shall receive".........

"THE MILLIONAIRE MINDSET"

We are going to start this series off with "The Millionaire Mind Set". In order to have it, you must believe you already own it. Repeat after me "today I AM a multi-millionaire with money not yet deposited in my bank account"! Now go write the check to yourself for one million dollars and hold it for a later deposit. Feel the fear? Do it any way....."no risk no goodies (rewards)".


Now the next step. Make a list of all the things you currently own. Take a sheet of paper and draw three columns.....#1. Items #2. Cost #3. Sell. List all your possessions under "items" putting along side the cost, what you paid, and what you think it will sell for. Ask yourself "can this generate income for me". Do you see what I mean? To get in the right mindset we need to start buying only things that generate income. Never ask "how much does it cost but how much will it make me".

Well now that you are on your way to thinking like a millionaire.....let's stoke up some FIRE!! I am referring to that burning desire inside your soul to change, live a life of achievement, more time with love ones, be free.....financially free, debt free! Start thinking in terms of what and where you want to be, stop looking back, keep your eyes on the prize and where you are going not where you have been! Hey what's stopping you.......oops! I know! I didn't give you that little "magic pill" as one of my mentors said, developing your millionaire mindset is simple but not as easy as taking a magic pill. It means change, making a plan, setting goals, and over coming your worst enemy.......FEAR!!!! Your own fear of failure and your fear of success! You have been told the word NO! so long you believe it. People will tell you "Johnny you can't do that......give up this crazy idea of being a millionaire"... shatter all your dreams! Did you know that the word NO! is negotiable? Yea it is.....just never give up.....my mentor told me just one more NO! please if I could just get one, I am 10% from achieving my goals. Realize that when you face problems you are almost there! Just wait "til you get that million dollar YES!!!!! Oh Yea!!!!

Well I hope that this post has been helpful and has stirred some heat........go now and "TAKE SOME ACTION NOW"!!!! Always keep an open mind.........later.