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Transcription Tulsa Mortgage

Steve: This is stevecurrington.com in the Steven Tyler show episode number 43.
Speaker 2: Welcome to the Stephen Tyler Show with stevecurrington.com and TylerWhyburn.com
Steve: Who negotiated the contract for you?
Tyler: A realtor.
Steve: That was pretty very smart. Well, good for you man.
Speaker 2: They’re talking about everything you need to know about Tulsa mortgage, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler your Tulsa mortgage lenders.
Steve: Yoh, yoh, what’s up Tyler?
Tyler: Good morning.
Steve: Hey hazy morning in August in Tulsa Oklahoma. We learned last night that if you’re trying to do a podcast on Tulsa Mortgage you probably shouldn’t driver your super-cars around until midnight and that we figured out-
Tyler: That’s right.
Steve: -early five o’clock, 5:45, 6:00 in the morning, came pretty early today but that’s okay. Hey we’re talking today about the things in my payment history that affect my credit score. You’ll notice in previous podcasts we’ve been focusing on a little bit on the makeup of your credit score, right Tyler?
Tyler: Yes.
Steve: What effects it, what types of credit you need to have, what hurts your credit score the worst, what helps your credit score the most and we talked in a previous podcast about payment history representing 35% of your– it actually makes up the majority. I mean it’s the largest factor that they look at. Here’s where this is interesting and we talked about this previously. People say, “Well, I’ve had good credit for 25 years and I had one late payment and now I’m toast, right?”
Tyler: Right.
Steve: It’s like well yes because what’s 35% of your score?
Tyler: Your payment history.
Steve: Payment history on your Tulsa mortgage especially.  You can have good credit for 40 years in anything that’s about 38 years old and older, is that right? Anything more than two years old I guess they should just hit.
Tyler: Right.
Steve: 38 years of that 40 doesn’t even really matter, I mean a lot of it doesn’t. I mean its part– those accounts are there may be inactive and become part of your payment history but that works. Things about payment history that affect my credit score. We’ll kind of run through a few of those. Obviously credit score can be affected by how often you make payments whether you make them on the due date or not and when I say the due date, your your creditors are going to report if your car payment is due on the first. They charge you a late fee and you don’t pay till the second. We’re talking about late payments being 30 days past the due date because that’s when they report, right Tyler?
Tyler: Yes.
Steve: We have a lot of people that are like well, I had a guy yesterday asking this and by the way there’s a lot of people that are very intelligent people that are doctors, they’re lawyers, they’re professionals in their own right in their industry that just don’t understand credit.  We get questions all the time and I got a question yesterday, I didn’t talk to you about this. A guy said, maybe it’s two days ago, “If I do a shorter term versus a longer-term on this loan that I’m getting that will help my score, right, because they see that I’m paying off faster.” Like instead of doing a 36 month loan on a car he was talking about doing a 12 month loan on a car and with that in his mind, again, a very intelligent person who owns his own business, he says, “That will help my credit right?” into which I answered, “No,” not necessarily.
Nothing helps your credit whether it’s 12 months or 36 months if you make late payments, so it’s not going to help you at all. But as I told him one of the things that can actually be valuable about doing a longer-term on your loan is that it reports for a longer period of time you’re making payments on time for a longer period of time and it has more weight and it is allowed to give you a better credit score for longer credit time, does that make sense?
Tyler: Yes.
Steve: Rather than only being open for 12 months and me paying it for 12 months and then it going away, I’m going pay it for 36 months and I’ll tell you what I told this guy, the credit bureaus, listen, and this isn’t like go read in a book, this is stevecurrington.com, the Tulsa Mortgage banker. I would say my own interpretation of the credit reporting agencies, okay? The CRAs as we call. This isn’t like some actual fact, this is just what i believe is the case, okay? And I told this guy this the other day. The more creditors — the credit bureaus are run by the creditors because the creditors are the ones that write checks every month when you afford motor credit account, reports to your credit, they have to pay Equifax Trans-Union and Experian to report that information, right Tyler?
Tyler: Right.
Tyler: They writing a check to the credit bureaus to report information and so common sense in my mind would be the more of these creditors that I pay interest to and do it on time, the better my credit score.
Tyler: Yes.
Steve: Isn’t that amazing how that works?
Tyler: Yes.
Steve: That’s what I told this guy. I said, “Look, if you’ve got five accounts, one revolving account, one install a loan, a mortgage, another revolving credit card and another car loan and you pay them all on time, you’re going to have a better credit score than if you have one big loan, this roll all in together, you have no other debt, you owe $600 to your name in your whole life and you go like “I should have great credit. I don’t know any debt.” No.”
Tyler: You actually have to use it.
Steve: Yes. You’re going to get rewarded by having a good credit score by using your credit. Anyway, we’re going through now some factual stuff and stuff that we found online that through books and resources is something you can find out about credit scoring. And so this is the scoring model reviews the existence of any late payments and how late they actually were in 30-day increment. So you’re looking at were you 30 days late, were you 60 days late, were you 90 days late. A 90-day late payment will hurt your score more than a 30-day late payment. Does that makes sense Tyler?
Tyler: Yes. It’s a lot heavier than the 30-day.
Steve: Why would a 90day late — why does 90 day late hurt my credit more than the 30 day late?
Tyler: Because you’re a lot later than 30 days.
Steve: That is 30 days times three.
Tyler: Right.
Steve: Would you say the effect on the 90 day late is three times as bad as a 30 day late?
Tyler: Sure.
Steve: Well the other thing that happens is people get rolling 30 day late on say their Tulsa mortgage. Rolling 30 day late it’s I got 30 days behind and then I just made a regular payment. So, I was still 30 days behind on that previous one but now I’m making all my payments a month behind, so i made my January payment basically at the beginning of March because it would have been due January 31st maybe. It was late on March 28th or February 28th or 29th depending on if it’s a leap year, and then I’m making my January payment in March. I’m making my April payment or my February payment in April and so every month I’m just rolling, I’m just 30 days behind on that account, 30 days behind on that account and the more that you have those 30-day lates, the worse it is.
But where you go even further is then you fall back where you’re making your February payment in May, so now you’re 60 days behind. Now you have rolling 60 day lates and you can see how that compounds. In some cases with people with a mortgage they get that far behind and we’ve heard them before, right Tyler, that say they won’t accept my payment.
Tyler: Yes.
Steve: I’m trying to make one payment. No, you’re so far behind now that the only way that we’re going to accept it is if you pay the entire amount. It’s completely asinine if you ask me but that’s how it goes. The lesson is you never, never have to worry about how what the effect is on your credit score for a 90-day late if you just don’t go 90 days late, boom. What do you think about that?
Tyler: Yes. You know the most common thing that we see 30, 60, 90 on would be student loans.
Steve: That’s right, yes. Good call. Yes student loans and you know student loans, interesting point, don’t even report until you’re 60 days late and what’s the number one reason why students report late, Tyler?
Tyler: Because the deferment and many people don’t know they come off a deferment. They don’t know the payments due for whatever reason just not keeping track of it, I don’t know. I mean it just happens. It’s very common.
Steve: Yes, and if you’re trying to get a Tulsa Mortgage and you call us and we pull your credit and your credit score is in the dumper and you have student loans, I mean we see it daily where people have– well, here’s the thing, let’s say you haven’t consolidated your student loans, so you’ve got 10 of them and you’re on deferment so you’re not even required to make any payments. Well, during the deferment period you’re not required to make any payments and then your deferment period ends but a month before the deferment period ends you call and and you’re working on a consolidation loan to put them all together or you’re working on them extending your deferment period. Well, what a lot of people don’t realize is during that time of the deferment period ending and you setting up the new one you have interest-only payments sometimes that are required or you actually have payments that are required so what will happen is we’ll see 30, 60, 90 and they don’t report I say 60 days– they don’t report till 60 days, so many times we’ll see zero, 30 day lates[sic], two, 60 day lates[sic] and 90 cay lates and so that makes you wonder like how can you be 60 days late and I’ll be 30. But on the student loans that’s how the report. In many cases if that’s you out there and you’ve got all these student loans that have lates because you want a deferment call the student loan company. Beg, borrow, steal do whatever you need to do. Cry on the phone if you have to I’ve told people and see if they’ll remove them. Because we’ve had a lot of luck because of people call and say, “Look I was on deferment, I was applying for my deferment this happened.” Imagine Tyler we’re talking about a 30 and a 90 day late or 60 day late. Imagine having 10 accounts go 60 days late at one time.
Tyler: Its going to hurt.
Steve: How many times we’ve seen that?
Tyler: Several.
Steve: I looked at one, two weeks ago that had literally was in the four hundreds of credit score wise. The only thing that was only credit bureau the credit report across all three bureaus that was negative was like nine student loans. That they were currently making payments on but they’re all showing up in their derogatory accounts because they had multiple 60 day lates.
If you look at the dates of them, of when they happened because our reports show us that, it was around the same time two years apart. Their deferment period was for two years. They re-applied for two more years. During that time that they had reapplied for they went 90 days past due four times. At times six accounts or non accounts where it was.
Listen here’s the deal, if your payment is due on January first, this is a crazy idea but make it on December first. Get a month ahead on those payments if you can because then if anything ever does happen and you get behind or you just forget– I’ve done that everybody has– you try to set up everything on auto or I hope you do that makes it easier, but crap you just forget.
You get busy, you’re working and you forget to go make that car payment or you forget to go make that credit card payment and you’re toast because there’s no reversing it most of the time. The student loan thing that we just talked about is if they’ll do it be a happy camper and be lucky if they do because, it’s not likely that they’re going to so.
A 90 day late payment is going to hurt your school more than a 30 day late payment. Unless the 30 day payment was from last month and the 90 day late payment is five years ago. That’s a very good point. We talked about it being the older that it gets the less it’s going to hurt you.
I think we talked about this in a previous podcast. You remember we had a really nice lady with the a decent credit score. She had like a 7 or 8 mid score I think. She had two collection accounts that were recent. One of them was like– and I’m making up the numbers because it was something like this – $13 and one was like $39 dollars. Do you remember this person?
Tyler: Mm-hmm.
Steve: She was griping because her interest rate was a little higher because we’re doing conventional and when you’re below a 750 there’s adjustments to the rate. I went into the little– we have a little water simulator and I mark those two accounts. There are two accounts that total like 54 bucks, 52 bucks whatever. Her credit score dropped to 110 point. She literally went from like a 7 or 8 to 8, 18 or something crazy like that. Now if one of them went away, she got like 20 points, if both of them were gone and so that’s where you can really get hammered. Well not only do you have a collection account or not only do you have a 90 day late or not only do you have a 30 day, we got multiple. When you start stacking them on top of each other, that’s when it really starts hurting. That’s when it really gets painful. The older they are, the less weight they have.
If you have a late on a credit card today and then you make six on time payments on that credit card, you’re going to get back about half of the points that you lost when you were late. When you get to 12 months of on time payments on that account now that late is now aged 13 months old, you’re going to get about another 25 to 30% of those points back. You’re never going to really gain back the full impact of the score that you could have had if you had no lates until you get to 24 months, 36 months, as that strategy as I was saying. When that 90 day late becomes five years old, it still will have an effect because it’s still a factor but it’s older. Tulsa mortgage loans are not necessarily easy.
That brings up what things in my payment history affect my credit score? Well, we haven’t even talked about which we’re getting to right now. We’re talking about the fact that scores concentrate more on recent behavior not old behavior on your credit. That payment history that we’re talking about also covers collection accounts, charge offs, bad debts, delinquent credit cards that are charged off, bankruptcies, judgments tax liens that kind of thing. Number one mistake people make, number one mistake; they call me and they say, “Steve I need a mortgage, you’re the Tulsa mortgage expert I need a mortgage. Help me get a loan goodnewsforyou Tulsa mortgage guy.com I just paid off all my bad debt.” right?
Tyler: Right.
Steve: Then I just want to just want to shake the phone no, don’t do that. Don’t do that because when you do that again remember that the scores concentrate more on recent behavior than old behavior. If you’ve got an old collection account that’s reporting your credit that maybe hasn’t reported since 24 months ago and it’s a $800 balance and you’re like, “I’m going to pay that off because it’s going to promote credit score.” You’re wrong.
It’s actually probably going to hurt your — I know it’s going to hurt your credit score and that happens all the time as people — here’s what I’ve said and I probably said this on the podcast before. If you listened to our little Tulsa mortgage podcast you’ll know. This is what I say, if you have a moral obligation Tyler to pay something, pay it. If you’re doing it because you think it’s going to improve your credit score.
Tyler: Don’t.
Steve: Don’t pay it. Because if they’re suing you, if they’re going to see your check if they’re giving you a judgment you should pay it. If you’re doing it just because you think, “This will help my credit.” I’m afraid that you’re wrong. I know that you are wrong so just be careful. Now when it comes to judgments or tax liens talk to your lender because there are times when we got a guy that we’re working on right now that– he has a couple credit card collections that it was beneficial for him to pay them off. We actually improved out score by about 50 points by him paying.
He did a settlement with him and got him paid. There are times when I’m going to tell you to go pay something in his case those are reporting recently and they were collection accounts and they were beneficial in his case to pay and it jumped his credit score up so we had him pay them. But judgments and tax liens you’re typically going to have to pay anyway but talk to your lender about that before you go breaking down the check and paying things like that offer. Anything to add to that? I’m trying to get Tyler to wake up here he is sitting here. Tyler is running the sound board he hasn’t pressed one sound I think he needs to find his favorite Tulsa mortgage lender to show him.  They’re the thrive time sounds from the clay trunk show and what do you think Tyler?
Speaker 3: What?
Speaker 4: You’re saying it weird.
Speaker 3: Saying what weird.
Speaker 4: All of it.
Speaker 3: Where do you get off?
Speaker 4: I just don’t get why you’re saying it about Tulsa mortgage
Speaker 3: Why I’m saying what, what way.
Speaker 4: Forget.
Speaker 3: I will, I will forget it.
[laughter]
Steve: I will, I will forget it. But I will not forget to put Tulsa mortgage in here. We need that, because I said here and we’ve done some of these obviously we’re live on Facebook and so some people have seen what we’re looking like in the studio with these bright lights. I come in I immediately go to the air conditioner because freezing cold and I turn it up. Then we sit across the table from each other and I’m looking at Tyler but Tyler’s like in the days land. Tyler’s like, “Steve, it’s 6:00 in the morning. I’m not going to respond to you. I’m going to look at this computer and not play sounds.” But we’re talking about the things in my payment history that affect my credit score and my tulsa mortgage.
I think there’s a bunch of information there that we covered remember don’t pay charge off accounts, don’t pay bad debts, don’t pay collections, judgments, tax liens anything like that. Always pay your Tulsa Mortgage  If you’re trying to get a mortgage until you talk to your lender, because those public records that are on your credit, those collection accounts, those judgments tax liens may be beneficial for you to get paid.
Some of them may be required. But don’t try to do it on your own. It’s like trying to get complete surgery on yourself. Its trying to– hey this happened to a guy, tried to give himself liposuction in his garage. Like come on that’s not smart. Guess what that didn’t end well for him, he died. It’s the same thing with your credit, don’t get in and try to do surgery on your credit report when you don’t know what the heck you’re doing. That’s Steve Currington, Tyler Wyvern, the Steven Tyler show episode number a lot. I think we’ve got a bunch of them up on our website. Don’t forget to go to podcast.stevecurrington.com and you can check out all of them if you’re listening to this. Don’t forget to call us when you need a Tulsa mortgage. We out.
[END OF AUDIO