I recently attended a local real estate Meet-up and there was a talk from a lender. Instead of wasting your time traveling there and inevitable fluff in these meetings… here are my takeaways from Credit Score SME presentation…Â
1) Previously 50% utilization on each credit card (not an aggregate of all cards) is now 30% to have an impact on the score. Things are getting stricter.
2) They now look at “payment acceleration” meaning paying the minimums every month is looked down upon. Might want to pay 50 bucks one month then 55 then 60 then 65…
I recently had the experience of missing the payments on two of my mortgages and went into default for 30-60 days and got register mail sent to me for being a naughty boy. My autopayments got backed up and the mail got sent to my old address in the move to Hawaii. Things are fine now and I got everything caught up. In the end, I saw my score take a 60 point hit, but I don’t really care because for commercial loans it does not really matter what your personal fico is. It just can’t be terrible. And by the way I got caught up and saw some of my credit card interest rates go up.
A lot of you guys who book a call with me are using HELOCs to purchase more properties. The optimum credit score for that is 620.
Also wanted to thank you all for the support this year and wanted to give people of big plans for 2018! Let’s work together to redirect money from the Wall-Street casinos and corrupt financial institutions…To help the endangered ‘Middle Class’ savers find safer, more profitable investments in Main Street opportunities benefiting local communities. Please email the website and podcast to a friend. And remember If you or someone you refer invests at least $50K into one of my future deals you will be invited to my exclusive Ali’i Mastermind with other 12-20 other serious investors to discuss deals and our own portfolios.
