John Adams Money 99 - Your Credit Score is a Numerical Summary of Your Credit Report

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Your Credit Score is a Numerical Summary of Your Credit Report - 2009-10-18

In the world of home lending, there's almost nothing quite so important as your credit score. Your three digit score, as much as any other part of your application, determines whether or not you will be allowed to borrow the money you need to buy your house. And if that score is below average, you can expect to pay a higher rate, if you are approved at all.

Last week we talked about the 5 elements that are considered in your credit score. As a refresher, they are: payment record, length of credit history, credit utilization, recent credit requests, and keeping a healthy mix of credit types. Here are some of the most common questions about credit scoring:

Q: What exactly is a credit score?

A: Without getting into the science behind the number, a credit score is a computer-generated three digit representation of your creditworthiness.

Q: What is it used for?

A: It is used by credit grantors to help them evaluate the likelihood that you will repay what you have borrowed on a timely basis.

Q: Why do lenders use credit scoring?

A: There are three primary reasons:

* A credit score is a fair and objective way to measure risk when considering an application for the extension of credit. The scoring model specifically ignores race, place of national origin, religion, sex and marital status. Thus it eliminates bias which is illegal under Federal laws.

* Credit scoring has been shown to be very predictive of future behavior, and that alone makes it an extremely valuable tool for credit grantors.

* Lenders can obtain credit scores inexpensively and almost instantaneously. Because they rely solely on information contained in your credit report, they are simply an analysis of information that already is assembled.

Q: What are the easiest ways to improve my credit score?

A: Pay every bill on time without exception, and keep revolving balances such as credit cards well below fifty percent of your credit limit with that issuer. These two factors alone account for almost two-thirds of your overall score.

Q: What will hurt my credit score the most?

A: Bankruptcy, foreclosure, charge-offs and recorded debt judgements.

Q: I saw an ad for credit repair. Will that work?

A: Typically, credit repair is an attempt to manipulate the information in your credit report in order to artificially inflate your credit score. I do not recommend this course of action.

Q: Can I see my score for free?

A: No, but remember that your score is calculated based solely on information contained in your personal credit history. These are maintained by the three national agencies: Equifax, Experian and TransUnion. By monitoring these reports at AnnualCreditReport.com for derogatory information, you can make sure your credit report is producing a good score. You can obtain one free copy annually of each of your three credit reports.

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Upcoming Events

John Adams Presents

LANDLORD SURVIVAL TRAINING
with John Adams
Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.

Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.

For more details and to register click HERE

PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th

One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.

At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.

In this 3 hour information packed seminar, John will teach you how to:

1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary

If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.

For more details and to register click HERE

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