Building Credit... Because it's Your Greatest Asset

By
Mortgage and Lending with 214-728-0449 http://TexasLoanGuy.com NMLS # 322646

Building Credit… Because it is Your Greatest Asset

Everyone has to start creating a credit record somewhere.  Those that got off on the wrong foot and have poor credit need to repair and rebuild.  Even if you’ve gone as far as to file for bankruptcy, you have the opportunity to bounce back and rebuild credit…your greatest asset.  Here are the best ways to build or rebuild a positive credit record and score:

 

 

  •  Pay everything on time.  This includes rent and utilities.  Even if these creditors don’t report to the credit agencies, you can give proof of your good record to potential lenders.
  • Establish checking and savings accounts with a bank or credit union.  Never overdraw these accounts and deposit a regular amount in savings each month, even if it’s small.
  • Apply for one or two credit cards.  You may need to secure the card(s), but showing that you can buy items on credit and pay for them on time is the pattern you wish to establish.  Never charge more than you can pay for in each billing cycle.
  • If you purchase something that will take more than a month to pay-off, don’t max out the card.  For example, if you have a $1000 limit, buy something that costs $300 or less and pay for it as soon as possible.  Potential creditors frown on people who continually stay close to their limits.
  • If you’re approved for one or two cards or charge accounts, don’t apply for more.  You don’t need a handful to establish good credit, and you may only be tempted to dig yourself into a hole by losing track of how much you’re charging.

 

All of these tips are pretty much common sense.  It’s sad to note however, that many Americans grow up with no clue as to how to handle their financial lives, and credit in particular.  Most parents don’t stop to think about how important and valuable education in this area is, and the same goes for schools.  Money management should be included in scholastic programs and home education.  Until it is, you need to educate yourself and pass along the information to your youngsters if you have them.

 

http://www.newamerica.net/programs/education_policy/higher_ed_watch/student_loan_scandal

If you missed it, here is my last post about Credit Reports...What to Look For.  

 

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Are you are looking to buy or sell a home in Frisco or another city in North Texas?  If so, then I can help.  I am a licensed Mortgage Consultant located in North Texas with over 15 years experience in the industry.  I can help you get pre-approved for your new home loan in Texas and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call any time or visit my website for more details.

John Cannata    p# 214.545.5604  

www.TxMortgageConsultant.com

 

 

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Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage

      

 

The views expressed on this site are mine alone and do not reflect the views of my employer.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Leander McClain 10/07/2008 12:32 AM
Topic:
Lending / Financial
Location:
Texas Collin County
Groups:
Lone Star Real Estate Professionals
All About Mortgages/Mortgage Networking
Collin County, TX Real Estate Professionals
All Thing's Texas
Dedicated Bloggers
Tags:
advice
real estate tips
credit scores
texas real estate
frisco texas
credit report information

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Rainmaker
1,085,746
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

Hey John,

I just starting having my credit "monitored" I had to remove 3 items that weren't even mine! It lowered my score, now I'm trying to get that resolved as well! Great reminder!

Oct 06, 2008 12:00 PM #1
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Hey Greg.  I appreciate the comment.  In case you missed it, Erik made a comment on the other post where he suggested to pull the free credit report every 4 months.  Each bureau will give you a free one, and if you spread it out you can review it every 4 months for free.  Otherwise I think the 'monitoring' can cost anywhere from $10 - $35 a month.

Oct 06, 2008 12:19 PM #2
Rainer
179,676
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

John - These are great tips for those getting started.  It's amazing how much a good history of handling low-limit credit cards can help you when it comes time to make a major purchase.  One tip that has served our family well is making sure that my wife has one card in her own name.  Eventhough she is a stay-at-home mom, she has a great credit score.  Hopefully, this never matters, but if it does, she is protected. 

   

Oct 06, 2008 02:53 PM #3
Rainmaker
177,160
Leander McClain
North East, MD
Cecil & Harford County Realtor

John - These are great tips. I am working with my youngest daughter to teach her early about money, money management and credit.  I don't want her to learn the hard way like I did.  This is great information.  Thanks for sharing

Have a great day

Leander

Oct 07, 2008 12:30 AM #4
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Erik - That is a good idea to make sure your wife's credit stays in good shape.  You never know if you will need rely on her credit one day and it's better to be safe than sorry.

Leander - I'll be posting about tips for helping your kids manage money.  It will be a very short version from Dave Ramsey.  If you have never heard of him, I suggest looking into him.  He does not have any 'tricks' to taking care of your credit and being free of debt.  His concepts are very simple and make a lot of sense.  We took his 12 week course and it was fantastic.  I have already paid off thousands of dollars of debt.  Anyway, I'll be posting some suggestions shortly.

Oct 07, 2008 02:56 AM #5
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Rainmaker
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John Cannata

Texas Home Mortgage - Purchase or Refinance
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