Michael Barry's Blog

10 Most Common Credit Mistakes -- Mistake #1

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Mon, 31 Jan 2011 13:39:48 -0800

Mistake # 1 – Burying Your Head in the Sand:

The biggest error a person can make regarding their credit score is to bury their head in the sand and hope their mistakes will all go away and take care of themselves. It has been said that bad credit is just as bad as no credit. Because of this, waiting for the bad marks to fall off doesn’t do anything proactive to build your score; it simply leaves you with no score or a just as poor score. Tackling credit mistakes may seem like too big a task to take on but it’s important to do so you can begin to rebuild yourself financially. Credit mistakes happen to all types of people for all types of reasons. It may be due to job loss, illness, or family troubles. And if we’re honest with ourselves, it could also be due to the fact that we did not properly manage our money. Whatever the case may be, leave those troubles in the past and start making the changes necessary to rebuilding your score.

Stay tuned for more mistakes to avoid...

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

Adam and Eve (Humor)

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Fri, 23 Jul 2010 10:43:10 -0700

Adam was in the Garden of Eden, when God approached and said "Adam have you noticed all of my creatures have mates"

Adam replied "Yes God"

"Well Adam, I am going to create you a mate." said God. "She will be the most beautiful creature you have ever seen, she will have the most voluptuous curves, and she will cater to your every whim!"

An excited Adam said "That sounds Great God, what's it going to cost me?"

God replied, "It's going to cost you a leg."

After some thought Adam said "What can I get for a rib?"

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

Fraud Alert vs. Credit Freeze -- A Blow by Blow Comparison

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Wed, 07 Jul 2010 15:06:43 -0700

Fraud Alert vs. Credit Freeze

To continue in my discussion about a Credit Freeze, I thought it would be beneficial to explain the difference between a Fraud Alert and a Credit Freeze.

Unfortunately, most people think Fraud Alerts and a Credit Freeze are the same thing, but they are not.
They do share 2 common factors:

Neither prevents your current creditors from viewing your credit report to see how you are handling your debt.
Neither prevents or limits you from using your open credit accounts.

Ok, so they have similarities, but how do they differ?
Here is a quick reference chart on some of the major differences

Obviously the credit bureaus would rather you place a Fraud Alert instead of a Credit Freeze, or they would make it easier. The bureaus are in the business of collecting and selling credit information about you; anything that prevents that costs them $$$.

So in conclusion, a Fraud Alert may give your new Creditors a Standing 8 count, but a Credit Freeze is a TKO.

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

Noah's Ark in 2010

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Wed, 07 Jul 2010 12:37:09 -0700

In the year 2010, the Lord came unto Noah, who was now living in the United States, and said, “Once again, the earth has become wicked and overpopulated, and I see the end of all flesh before me. Build another Ark and save 2 of every living thing along with a few good humans.”

He gave Noah the blueprints, saying, “You have 6 months to build the Ark before I will start the unending rain for 40 days and 40 nights.”

Six months later, the Lord looked down and saw Noah weeping in his yard — but no Ark.

“Noah!” He roared, “I’m about to start the rain! Where is the Ark?”

“Forgive me, Lord,” begged Noah, “but things have changed.

I needed a building permit. I’ve been arguing with the inspector about the need for a sprinkler system.
My neighbors claim that I’ve violated the neighborhood zoning laws by building the Ark in my yard and exceeding the height limitations. We had to go to the Development Appeal Board for a decision.

Then the Department of Transportation demanded a bond be posted for the future costs of moving power lines and other overhead obstructions, to clear the passage for the Ark’s move to the sea. I told them that the sea would be coming to us, but they would hear nothing of it.

Getting the wood was another problem. There’s a ban on cutting local trees in order to save the spotted owl.
I tried to convince the environmentalists that I needed the wood to save the owls – but no go!

When I started gathering the animals, I got sued by an animal rights group. They insisted that I was confining wild animals against their will. They argued the accommodation was too restrictive, and it was
cruel and inhumane to put so many animals in a confined space.

Then the EPA ruled that I couldn’t build the Ark until they’d conducted an environmental impact study on Your proposed flood.

I’m still trying to resolve a complaint with the Human Rights Commission on how many minorities I’m supposed to hire for my building crew.

Immigration and Naturalization is checking the green-card status of most of the people who want to work.

The trades unions say I can’t use my sons. They insist I have to hire only Union workers with Ark-building experience.

To make matters worse, the IRS seized all my assets, claiming I’m trying to leave the country illegally with endangered species.

So, forgive me, Lord, but it would take at least 10 years for me to finish this Ark.”

Suddenly the skies cleared, the sun began to shine and a rainbow stretched across the sky.

Noah looked up in wonder and asked, “You mean you’re not going to destroy the world?”

“No,” said the Lord. “The government beat me to it.”

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

It may be HOT outside, but you have the power to FREEZE!

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Thu, 24 Jun 2010 11:27:32 -0700

Freeze your Credit Report at least.

Several people have asked me "what is a credit report freeze?", "Is this better than a Fraud Alert?" and "should I freeze my credit report?". I will break it down to make it easier for you to decide.

What is a Credit Report Freeze?

A credit freeze is a way to lock down your credit report to make it very difficult for an identity thief to open an account or get a loan in your name. Sounds great right, but remember it not only prevents an identity thief from opening a new account, it also prevents YOU from obtaining new credit. That's right, when your credit report is frozen, new lenders, new creditors, insurers, potential employers, and even you will not be able to access your credit file. Now that's frozen!

Don't worry, you can have the freeze lifted, but it does take time. Each bureau (Equifax, Experian and Trans Union) will have a procedure on how to lift the freeze. It may take a few days and some secure passwords or a personal identification process, but it can be done. I guess this prevents impulse buying.

A couple of things to remember...

A Credit Freeze is not Free -- there are costs to freezing your credit. Anywhere from $2 to $10, as well as a fee for lifting the freeze.
A Credit Freeze only prevents NEW accounts -- Don't worry, you can still use those credit cards you have open. You just shouldn't can't get any more.
A Credit Freeze does not prevent "soft" hits -- Your current lenders will still have access to your credit reports to see how well you are handling your debt.

A credit report freeze is a powerful tool if you understand it's pros and cons, but is it right for you?

Next time I will cover the difference between a Fraud Alert and a Credit Freeze.

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

Credit Bureaus -- More than just a Credit Report and Credit Score

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Wed, 14 Apr 2010 15:06:57 -0700

Credit Bureaus -- More than just a Credit Report and Credit Score

Now that lenders are taking a more consevative underwriting stance and desire more robust credit card marketing, the three major credit bureaus are offering more data about you. Equifax, Experian and TransUnion, along with score provider Fair Isaac Corp., are creating services that provide lenders information about how much money a consumer makes and their net worth.

In 2009, Fair Isaac Corp. introduced its Credit Capacity Index, a proprietary model that uses data from Equifax to help lenders determine if an applicant can take on more credit and still pay their bills. It is a model to help banks and lenders market credit card services to a targeted audience.

Over the last 3 years, Equifax has spent $1.6 billion in acquiring companies to augment its data. These acquisitions include Talx Corp., for employment varification and payroll services, and IXI Corp. for consumer investment and asset information.

Experian launched Income Insight in November. Income Insight provides lenders an estimate, rounded to the nearest thousand, of an individual's income based on his or her credit report.

Trans Union tried something several years ago that estimated an individual's income using their debt profile and credit usage. The lastest version rolled out in 2008, but it is still being updated.

With 78% of all credit reports containing errors, how are they going to accurately report income and asset qualification? I spend a majority of my day cleaning up the mess they make on their main line of business. How are they going to prevent that from happening in their secondary business?

Good News -- the mortage industry is not adapting to this information. Since income and assets are moving targets, I don't see a change anytime soon.

Bad News -- This makes it easier for credit card companies to target individuals to solicit.

What are your thoughts?

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

Credit Card DO's and DON'Ts -- Common Credit Card Mistakes

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Mon, 29 Mar 2010 17:11:12 -0700

Credit Card DO's and DON'Ts -- Common Credit Card Mistakes

In today's lending environment, you have to have established credit in order to get approved for a mortgage. Unfortunately, the easiest way to establish a credit history and add to your score is through credit cards. So, if you've got a pocket full of plastic, there are some DO's and DON'Ts you should always remember about credit cards.

DON'Ts:

Use your credit card to buy things you can't afford -- It is always best to save for the items you want to buy, or if necessary purchase on an installment loan.
Use a credit card to make everyday purchases -- This is a habit that leads to debt without knowing how you go there, and nothing to show for it. The only time when you should make everyday purchases on a credit card is when you pay off the entire amount every month.
Make just the minimum payment -- They are called revolving debt for a reason. If you make the minimum payment, The interest paid increases without decreasing the balance.
Close a credit card without knowing how it affects your credit score -- Sometimes closing an established credit line will decrease your credit score. Know its impact on your history.

DOs:

Make good decisions about buying items you need versus those you want -- If it is something you "want", save up for it, you will appreciate it even more.
Stay below 50% of your credit limit -- Keeping you balances below 50% of your credit limit will help maximize your credit score.
Negotiate a better interest rate -- You won't get a better rate if you don't ask for one.
Contact your creditor if you are having trouble -- Let your creditor know in advance if you are going to be late with the payment. Some will even waive the late fee.

Credit Cards can be a useful financial tool if used properly, but can cost you more than money if not.

Make it Happen!

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance

I finally made it!

Michael Barry (Halo Portfolio Advisors and Halo Asset Management) — Tue, 23 Mar 2010 14:24:10 -0700

I finally made it to AR, and I am thrilled to be here.

My name is Michael Barry but most know me as "The Credit Bear". I have been in the residential real estate and finance industry since 1994. I have been a Realtor, a Loan Officer, and an Investor. Currently I am President of a publicly traded credit repair company, Halo Credit Solutions, LLC. OTCBB:HALN Please check out my profile (I think I did it right).

Real Estate has always been a passion of mine. In fact, it is even a family affair, wife is a Realtor, Father-in-Law is a Real Estate Broker, and Sister owns Providence Title of Texas.

If you have questions regarding credit please let me know, I am glad to help.

I am looking forward to connecting with my current partners on AR and meeting lots of new people.

Michael "The Credit Bear" Barry

President
Halo Credit Solutions, LLC

Credit Repair for $199

OTCBB: HALN

Yahoo Finance