NY Houses 4 Sale

FICO Score and what you should know.

There are alot of factors that your credit score gets based on but the top six killers are:

1. High balance.  -  "Johnson estimates that you lose 1 point for every percent of your credit limit that you use. So if you have a total credit limit of $10,000 and have an outstanding balance of $4,000 (40%), your score would be 40 points lower than if you had a $0 balance.   Ideally, credit experts say, you never want your balance to exceed 30 percent of your credit limit."  (MSN.Com)

2. Late payments. -  Pay on time!  If by chance you can not pay it on time then pay in full, IF you can not do that the pay more than the minimum.  I suggest setting up the automatic bill payments through your bank, you will never be late again!.

3. Not Enough Credit.  - Banks like to see history and they can not judge how well or poorly you do with substantial credit.  Its best to take out a car loan or bank loan and repay, on time.  This will boost your score. 

4. Length of Credit history. - Too young, too eager!  You must build trust with the creditors.  Start slow, start small and then build your foundation.  It takes time and time on this matter is on your side.   

5. Closing accounts. - I think we have all done this.  You get a great offer in the mail "O%APR on transfers"  I know I have.  But one thing you should remember is not to close the account that you just transfered. Keep it open.  If you close it, it could project your credit rating lower. 

6. Not knowing. - Every person should check there own credit.  Log onto MYFico.Com and view your rating as well as your history.  If you are not checking your credit at least once a year then how would you know if your identity was or  has been stolen? 

Sometimes being "bad" - can be so good!

There have been many times that I have seen a prospective tenant or mortgage applicant get denied from obtaining their goal - to rent an apartment or obtain a mortgage because of BAD credit, but what are you suppose to do when you have NO credit?

My niece and nephew both over the eighteen have been going through this dilemma - but not because they want to buy a house, but a car.  The interest rates are higher and they are feeling like they are being looked down upon? 

I know that the old timers feel that paying with cash is the BEST.  "If you can not buy it with cash then you should not be buying it in the first place", is what grandfather use to tell me.  He was a wise man - but not in the financial area. 

Yes, I would want to be able to buy everything with cash.  Who would not like having a dollar of debt lingering over their heads?  I always hated the expression "its the American way", but in some sorts - it might be true.

In order to get money, you have to OWE money!

How odd that seems.  But - its as bottom line as I can get.  In today's world, the more money you owe, the more money the banks are willing to give.  WHY?  well, you have more that they can take. 

There is good debt and bad debt.  Credit cards = bad debt.  But you need that bad debt to allow you to gain a credit history.   If you can gain some bad debt (take out one or two major credit cards, charge and then pay it off) you then just credit a good credit history.  This will be watched and your FICO score will reflect.  The higher the score of course is better.    FICO scores range from 450 - 850.

The good debt is mortgages and car payments.  What makes them good is you are laying your house/car on the line.  You fail to pay a few times - they can come over and take it.   (That is what all the papers you are signing mean). 

If you can create a good credit score (pay on time, don't keep high balances on cards and don't over apply to creditors).  You will in the end pave a road to lower interest rates and the ease of acquiring financial stability. 

How To Rent An Apartment - With Bad Credit.

Any Landlord in the Queens and Long Island area that I know of - requests a credit report.  I find everyday that people don't understand why,  or the MAJOR importance that your Credit History is.  Let me start with WHY Landlords want good credit.

A landlord is providing you with a roof, bathing area, kitchen with appliances, flooring (either carpet or hardwood), bedroom (s), and possibly some luxury items (IE: A/C, yard, garage, attic and/or basement usage).  ALL these things cost money.. this is the landlords investment, and YOU the tenant are agreeing to TAKE CARE of their investment.  If your credit is BAD - I mean BAD.. then HOW am I (the agent) suppose to convince the landlord that you, who could not care less about their OWN credit - will do good by them?    Plus to go one step further, it is a track record of how you pay your creditors.  If you are a repetitively a bad payer, a late payer .. than what will make you pay your landlord on time? 

***This is where I will come  into help you, (I am the agent)  I will try to negotiate for you - but I can almost guarantee that it will cost someone with bad credit twice as much to move into an apartment than a person with great credit.  Not only do you have my fee, but the Landlord might want 2 months security, first and last months rent and whatever he feels will protect him if you should never pay your rent. 

... OR you could get someone to "co-sign" .  Someone to guarantee that the rent will be paid.  This is something that is quite large for a person to do for someone else.  The co-signors credit will be ran also.  They must prove that THEY are good payers and that they will protect the investment, because if the renter does not pay - they are saying THEY WILL! 

Your credit plays a major role in obtaining an apartment because like I said, its your track history.  If you pay late - not good.  If you always pay on time - that's great.  You will get more incentives to move into someones investment - they already have more trust in you.  YOU CARE ABOUT YOUR CREDIT and won't mess it up that easily.  Read "KNOW THE SCORE" from Newday .