Credit Report Question

NEW -> Contingent Buyer Assistance Program
B

Banana_IHB

New member
I want to sign up for a service online where I can check my credit report & score anytime. Any suggestions on which service and package is best? I figured most of you probably already do this. Thanks!
 
<p>Mel - You can get your credit report for free once a year at <a href="http://www.annualcreditreport.com">www.annualcreditreport.com</a>. One of my credit cards WAMU gives me my score. Speaking from an ex-mortgage perspective the credit score numbers you get from any online service is absolute crap. I am talking 30-40 point differences higher or lower. I watched someone cry when I told them their score was 50 points lower than what they had got from an online source. They even had printed it out to show me. That was not a fun day. </p>

<p>I wouldn't worry so much about the score when the free report you can get has the info you need. It is #1 any late payments or collections, #2 balances and your creditors always report to the bereaus when it is at the highest point of the month and #3 length of time the accounts have been open. </p>

<p>Depending on what you are trying to accomplish like cleaning up a mistake or worried that someone stole your identity if not I wouldn't waste my money. If you do then <a href="http://www.experian.com">www.experian.com</a> <a href="http://www.transunion.com">www.transunion.com</a> <a href="http://www.equifax.com">www.equifax.com</a> are all of the bereaus direct and would be your best start. </p>
 
ok. i have to disagree. as a current licensed mortgage broker, i strongly urge you to be always aware of your credit scores. personally, i pay $10/month through my Citibank card to get all three scores each month. the fee is minimal compared to the sense of security knowing that your scores accurately reflect your credit situation. utilizing the service has been instrumental in my understanding of how credit scores change on a monthly basis. i would be very concerned if any of my scores were to have any precipitous drop. it's good practice to maintain your scores above a specified minimum.
 
What? Now you are a mortgage broker? So do those scores reflect what scores you get when you run credit? How do you have time to be a teacher and mortgage broker? How are you licensed? Do you have a California mortgage broker license?
 
I want to suggest a new paradigm for credit scores. If you think you need to know your credit score any more often than each time you purchase real estate, maybe what you really need to do is stop using any form of credit and start using cash.<p>

I don't have any idea what my credit score is and I could care less.
 
<p>I pay $60 a year for a credit monitoring service. They notify me anytime someone has queried my credit, or opened or changed an account with my social attached to it. Once a year, they send me all three credit reports from the majors (which includes credit scores). This is a great way to detect if you've been the victim of identity theft. </p>

<p>Graph.....what'll hs be next week?</p>

<p> </p>
 
awgee,





I am with you. I went 4 years without knowing my credit score. I only found out this year due because my current landlord pulled my credit report. Credit scores are meaningless if you don't use credit, and there is no reason to use credit if you save and pay cash. Maybe one of our resident mortgage brokers can comment, but I don't think there is much, if any, difference in mortgage interest rates charged to customers with FICO scores over 750.





Anyone who is concerned about identity theft should consider <a href="http://www.privacy.ca.gov/sheets/cis10securityfreeze.htm">freezing their credit files</a>. I did.
 
<p>ok. i'm going to sound a little defensive here. first off, any college grad can relatively easily obtain a mortgage broker's license. i got mine by taking some classes and passing the state exam. as for teaching, i currently do it part-time. since real estate is notoriously cyclical, i am planning to go into teaching full-time. and no, i'm not wishy-washy, but being self-employed, i understand the values and benefits of being flexible. besides, i believe in how you spend your time is just important as how you're compensated for it.</p>

<p>as for the importance of credit scores, i can't agree with Robert Kiyosaki ("Rich Dad, Poor Dad") more... it's basically your 'adult report card'. i work with many businessowners and homeowners who are always using financing to get things done... so their credit scores are vital to their access to investment capital. as you may all be aware, rich or successful people owe a lot more money than regular people. for an example, i have an aunt who owes nothing and pays everything in cash. but she lives a simple life, have a simple job, and doesn't run any business. and then i have a client who owes over a million dollars, yet owns two restaurants - a Tony Roma's and a Marie Callendar's - and several fourplexes. yes, he has a lot of cash, but, he's always sure to maintain a good credit score. </p>

<p>same goes for corporations and private investors. [i used to work for Pacific Life.] the goal is to obtain capital for cheap and use it make higher returns. with that in mind, a company's credit rating or an investor's credit score is always being viewed with scrutiny by potential lenders/co-investors. </p>

<p>we live in a highly credit-driven society. ALL businesses rely on credit to properly finance their operations. Same goes for individuals. i know many business-oriented people who are always seeking financing/capital for investment purposes. actually, that's especially the case in the OC. - with entrepreneurship and small businesses being so prevalent in our local business environment, investment capital comes more from financing than any other means (such as stocks).</p>
 
<p>FICO vs "fake-O":</p>

<p><a href="http://www.hianswer.com/credit/1300-credit-4.html">http://www.hianswer.com/credit/1300-credit-4.html</a></p>

<p>For credit monitoring, I've been using this for well over a year and I'm happy with it (I don't get my real FICOs, which is OK for now):</p>

<p><a href="http://www.truecredit.com/orderOrigination?op=Basics:Right&product=CreditMonitoring&cb=WalMart">http://www.truecredit.com/orderOrigination?op=Basics:Right&product=CreditMonitoring&cb=WalMart</a></p>

<p>Unlimited pulls, and they count as soft pulls. E-mail notification anytime the slightest change occurs (other than the usual monthly balance reporting). </p>
 
<p>hs_teacher - As a college grad I was not aware of a California mortgage broker license. This might be something new since I am no longer in the business and I may be a bit behind on licensing requirements. I am aware that you can get your real estate brokers license from the DRE and you would be able to broker loans. I am also aware that you can start a corporation in CA under the department of finance and you would be able to broker loans. It is much easier this way since all you have to is pass a background check and post a surety bond. Please enlighten me on this new found license and what requirements are needed to pass.</p>

<p>If you read my first post you would have read that I get my score from WAMU for FREE. While you pay CITI for it. There is no reason to follow your credit score unless you think something is wrong or that you might be a victim of identity theft. </p>

<p>The most successful and rich people I know have little or no debt. They laugh at the fools like Casey Serin who follow some of Kiyosaki's ill formed mantras. Companies that are highly leveraged end up losing share value and losing share value hurts how much they can borrow. Business credit and personal credit are two completely seperate things and if you need to monitor your credit with FAKE-O (hat tip to oc_fliptrack) scores there must be a reason behind it. </p>

<p>No need to worry about being defensive as that seems to be your goal here is to disagree with people. Ask your students what trolling means. If you didn't talk down to me like I have no clue what I am talking about then maybe I wouldn't be so defensive either. Also if you had taken the time to read some of my posts you would know that I wasn't some part time mortgage broker. Show some respect to the people who post here and you won't have to be defensive. </p>
 
<p>hi. i need to clarify a few things. first off, i'm trying to keep my responses casual and indirect - i'm not addressing my responses to any particular person; i'm just responding to the blog in general.</p>

<p>so i think this thread pertains to the importance of monitoring a person's credit score. in my opinion, a credit score is vital to efficient financing in this highly leveraged world. from my personal experience, [when i was in college at uci, i used to be a private tutor in laguna beach. and believe me, i have worked in multi-million dollar homes before the whole real estate boom so i was exposed to truly wealthy people. these people definitely have net worths of over 5 million dollars - and according to forbes(?) , anyone worth over 5 mill is in the top 1% of the wealthy] the truly wealthy are very adept at using financing to their advantage. and being that financing is so credit score dependent, i think it's crucial to always be aware of your credit status. one of the family i worked for would virtually have no income for a year or two while they're developing one of their commercial centers. during that time, they had to obtain financing for virtually everything. but when their profits came in, they came in the millions.</p>

<p>so yes, if you borrow to just consume or spend, then you might not be very financially savvy. but if you borrow to invest and do business, that's absolutely standard business protocol. </p>

<p>personally, i am truly amazed by our society's ability to provide working capital via financing. i don't know of a single, successful growth-oriented enterprise that is debt-free. as for individuals, i don't know of a single entrepreneur who doesn't utilize personal financing to run a business and maintain steady cash flow.</p>

<p>i agree that a credit score cannot reliabably expose a person's financial health, but i think it's an essential tool for business when used properly.</p>

<p>as for the broker's license, in CA, the one for real estate and mortgages are the same.</p>
 
I own my own business and I finance nothing. I will probably purchase my next home for cash; no mortgage. Most folks who live in multi-million dollar homes have no mortgage, as hs_teacher well knows since he has been exposed to truly wealthy people. The idea that borrowing to invest and do business is absolutely standard business protocol is misleading. It may be common and more usual than rare for businesses to borrow, but it most defintely not often the most profitable method to conduct one's business. The aforementioned myth is promulgated by banks and lending institutions, but many successful businesses aspire to do business without borrowed money, and the best way to stay in business during a downturn is to be debt free. The very wealthy are very adept at staying out of debt.
 
<p>okay. i think this should be my last post on this bulletin before i become any more offensive. i agree that being able to run a business debt-free is likely most cost-effective - there is no interest to pay on borrowed capital. but that's assuming one has access to plenty of funds. and personally and through my education, i don't think that case is very prevalent or feasible. as you may already know from accounting 101, equity is assets minus liabilities. and most, if not all, fortune 500 companies have significant liabilities - i.e. loans. as for my personal experience, the truly wealthy people i know always own more than what they have in cash - whether it be mobile home parks, oil companies, shopping centers, etc. so although they're worth millions, the businesses they own are worth much more. even though they are high net worth, they still owe a signifcant amount of loans.</p>

<p>now i guess it was premature or naive of me to assume there aren't people who operate solely on cash. but for the vast majority that operate on financing, the entity's credit rating is vital. isn't it true that companies have cfo's in charge of handling credit, cash flow, and accounting? i now see why credit may be a non-issue for those who are flushed with cash, but for everyone else, i see the necessity to maintain a good credit score.</p>

<p>now on a social point, if cash is all that is needed to succeed, the wealthy will always stay wealthy because they have all the cash. the non-wealthy will never be wealthy because they don't have the funds. but the US financial market is renowned for providing entrepreneurs with capital, via financing, to establish and run successful enterprises. and isn't that the American story? the rise of the self-made American millionaire?</p>
 
<p>hs_teacher,</p>

<p>I fully agree with you that having a good credit is vital for your well being. My broker "forbids" me to represent tenants with poor credit. As a lease listing agent, I do not think I can sleep well if I allow my landlord to accept an application with sub-par credit rating. As a leasing agent, I rarely can get an applicant accepted if his/her FICO is below 700.</p>

<p>That being said, there is a real reason why good credit is vital.</p>

<p>Same as you, I have clients who own the biggest corporations and clients who retire in their early 40's and are self-made multi-millionaires. I tried to learn from these folks and I one thing that I learn, these folks are risk takers, they leverage their assets and borrow money to fund for business expansion. I truly admire these folks for their bravery. These folks do not even think twice when they borrow million and million of dollars. These folks told me good credit is what got them where they are today.</p>

<p>I hope you continue to post and not be offensive. This is a public forum and everyone has his/her own opinion.</p>
 
<p>hs_teacher - I think you took a simple question into a complex answer. You are right that access to credit is essential for business growth but it isn't always the solution. Just look at how many companies go BK because of this idea. Managed leverage is nothing to be ashamed of but in 2000 it was excess leverage that caused do many companies to go bye bye. A highly leveraged company to me means over 40% debt to asset ratio it also means that the income or postive cashflow can carry the debt plus expenses. Highly leveraged may not be the right term you are looking for. Managed leverage would be more appropriate and an example would be Microsoft where their debt level is about 20% of their assets and they have a positive cashflow to carry the debt and expenses. Plus you are talking about business credit which is different and uses a different method for the credit scores. This is something that is not as easy to check as a personal credit report. </p>

<p>The only reason you are being offensive is that you are coming across very arrogant. You talk down to people here as if they do not know what they are doing or not successful themselves. I can attest this is not true as many on here very successful and I have had the privilege of having private discussions with many of them. I will admit that I come across as arrogant at times but I do my best to back up what I say by facts. </p>

<p>Most people do not and cannot borrow more than their assets, yes maybe more than their cash but not their assets. </p>
 
<p>i don't know why i feel so compelled to respond. but you're right, borrowing too much is a problem that does lead to BK. but doesn't the credit score lowers as one approaches BK? so having a good score should reflect good debt management.</p>

<p>you have excellent points and i apologize for sounding arrogant.</p>
 
<p>hs_teacher - I am impressed by your abilty to be humble. I know that at least for myself I would want to strike back and try to prove my point.</p>

<p>You are correct you would be able to see that having a good credit score could mean poor debt management. I think that most would have an idea of how they are managing their debt levels. A score can only tell so much and really if you are dependent on that score you might want to review what is really going on. If you are approaching BK you know it and you do not need a score to tell you so. I do think it is a great tool for many and like you said it gives a gauge on where you are or headed but I think most on this board are clever enough to figure it out on their own. Don't you? I just think it is waste of money to pay for a service that does not provide a score that someone such as yourself in the mortgage business would see. Especially if they are not needing credit.</p>

<p>I am glad you did respond and the more you do the more respect you will get. I may beat nirvinerealtor up a bit but I do respect her for her resiliency to keep on coming back to post. She does make some good points whether you agree or not.</p>
 
<p>"now on a social point, if cash is all that is needed to succeed, the wealthy will always stay wealthy because they have all the cash. "</p>

<p>I don't think anybody said that cash is all that is needed to succeed. My point was that it is a myth that one has to borrow money to be financially successful or expand, and it is a myth promulgated by the hot money crowd. Personally I find cash to be a non-productive asset class. A lack of debt does not necessitate a large holding of cash, nor does the acquisition of wealth.</p>

<p>Short term success can be found through borrowing and leverage, but long term retention of wealth is most often obtained by paying down debt. Ask your more wealthy contacts if they think it is a good idea to pay off your mortgage early.</p>

<p>Yes, most Fortune 500 companies have debt, but most Fortune 500 companies either eventually go bankrupt or get bought out. An example of a company which does not carry debt is Berkshire-Hathaway and as long it does not carry debt it will probably never go bankrupt and will keep on acquiring companies which have little or no debt.</p>

<p> </p>

<p> </p>
 
Many wealthy families had ancestors who were successful at taking great risks in business & investments. But they also had the brains to not allow their grand kids to gamble the family legacy away. So they set up trust funds and hired professionals to manage the family wealth in a fiscally conservative way, then put the kids on an allowance.








IMO our economic system provides buckets of cash in loans, sometimes even without collateral. It enables people to build their business and be upward mobile on the socio-economic ladder. But it's also a double-edged sword that lets people dig their own financial graves. We're also psycho with rewarding people who are successful at taking risks, I call it the TV Game Show mentality. If you made millions flipping RE, people will praise you even if it's dumb luck. But if you lost millions, you end up like Casey Serin.
 
<p>If you have an american express credit card you can sign up fo a service called "credit secure" that costs $11/month and allows you to see your scores without your scores being hurt(soft pull). It also send notifications of changes to your credit. </p>

<p> </p>
 
You must log in or register to reply here.
Back
Top