In the near future we’ll find that credit scoring becomes a must to our success in real estate endeavors. But most real estate investors and business owners don’t even know these rules even exist. To their detriment the uniformed will find out the hard way when they need it the most.
HOW TO LEGALLY BUCK THE SYSTEM
Stupid rules are why many are calling for massive reform of the credit scoring system. And unfortunately, there is no hope on the horizon for fixing ‘the System’. But you can learn the insider secrets and loopholes to overcome the current pitfalls.
The last 24 months matter the most for certain types of credit. Listen to what to do first to repair credit the fastest.
Pay History accounts for 35% of a FICO score which means 297.5 credit scoring points. It is the largest category of influence but not nearly to the level that most consumers expect. (Yes, there are legal loopholes to achieve business credit utopia you should know about.)
The important factor with pay history is: TIME
The most recent activity has the most impact on the credit score. For example, a late payment in February or a new collection account in February or a perfect pay history in February will have much more impact on your score than 1 year ago or even January. The score impact will reduce over time. After about 24 months since a “late” or “perfect” pay history…the score is barely impacted at all.
Keep in mind that even though a 4 year old collection is having very little if any impact on your credit score…..it does remain (as do all accounts) on your credit report for 7 years.
Pay history is important……The most important pay history is that which has occurred in the last 12 months…..Pay history impact is reduced over time.
When you combine great credit with prudence and education you can leverage small amounts of OPM (other people’s money) to create a secure life and true wealth.
Listen to the Insider Interview™ Scott FladHammer did covering new business credit secrets for Indiana investors and small business start-ups to build business credit and improve your investment funding options during this business & real estate mastermind.
As a member you get this training call with an expert in personal and business credit as well as the top in other fields such as private money, house flipping and rehabbing, wholesaling, creative finance, asset protection and more.
And watch three time author and business credit expert discloses credit secrets so you can investor better by getting better funding and increased cash flow during this live REIA eventWant to grow your portfolio? Here’s the tool we use to manage income property professionally. Check it out and get our Landlord Survival Forms Free
For local resources and tools to help you invest check out the REIA resources listings here
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