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Tulsa Mortgage : Podcast 145 – Part 2

Tulsa Mortgage Paid off all my bad debt. And I’m like oh God please I’m cringing right because this is another mistake people make run is they think that by paying off a credit card and then closing it that is going to help their score. They think by paying off a collection account those can help the score so what they do is they get a bit too much money from grandma. Give them 40 grand. They got $20000 in bad debt collection accounts medical whatever they paid off. And so if somebody is suing you if they’re garnishing your check if something is happening that a lien against you. You know capturing your tax on her doing so that by all means pay it. But if you’re this well I tell you if you’re paying it because you have a moral obligation to pay it were you like I owe this and I need to pay it then pay it. But if you’re paying it simply for the matter of increasing your credit score don’t because nine times out of 10 you’re not going to increase your credit score. Because what happens is you’ve got an account maybe it’s a medical It’s three years old five years old. They haven’t reported anything to the credit report.

And that is it’s not affecting your credit. It’s just it’s just sitting there rotting in it. If it’s if you go on there and you pull your credit report and there’s a recent collection and when I mean recent I’m not in the last six to eight months and you pay that a collection off you might actually increase your score five points maybe 10. But if that thing is over 12 months old it doesn’t matter really if you pay it off or not today is not going to change the score at all. Ron and if he gets over four years old then it’s not even affecting your score. And then by going in there and paying it what’s what’s going to happen Steve you’re going to reactivate it.

Tulsa Mortgage Basically they’re going to report it as paid and the credit bureau is going to look at it as a new collection that now has a zero balance and then your score is going to go down. That’s right. So you’re paying it thinking that you’re going to increase your score when in fact all you’re doing is hurting your credit score. So you need to tell if if I get in trouble and maybe I’m driving too fast in my car. Like real fast to where I get it where they arrest you maybe going to do something happens what do you do. Carnt attorney you know why. Because you don’t want to be rotting in a jail. So when it comes to your credit you need your credit. People need it for getting jobs. People need to buy pretty much anything. Sometimes you just need to get a professional to help you do that. You mean we talk to people all the time like I’m Pneumon kidnapper. Do you also represent yourself in court. I mean is that what you do because if you’re that person I get it and I’m not dogging that but it’s going to take you longer. You’re going to make more mistakes and it’s going to cost you. So get with somebody that actually knows what they’re talking about when it comes to credit so that your pain can be less. Because that’s what it comes out to. It can all be fixed in time. Right. TIME But what’s that time is that time. Three months six months a year two years three years down the road. I don’t know.

But if you mess it up before you talk to a professional. Some guy that did his own. We talked about before did his own like liposuction surgery in his garage. So it’s not very smart. OK. So you’re literally dealing with your credit which is a thing that’s going to help you or prevent you from getting jobs from getting all kinds of stuff. And so just don’t take it lightly. Get a pro that knows what they’re talking about somebody who’s Taler and I went through this a few years ago we became certified professionals. It’s like his online thing. OK I don’t need a badge on my email signature to certify that I’m a professional. I know credit Brian those credit Tolland is clear because we’ve done this for a long time. And if whatever it is that you do as a consumer you know your job and you’re really good at it. And if I needed to know about that I would ask you. So it’s the same thing. Make sure you’re with a pro that knows credit and be very careful about what you google. I’m a huge fan of Google. Well as you can find lots of information that’s like our credit vendor that we use today Tulsa Mortgage.

You can do run scenarios to bring your score up.

Right. How many young loan officers do you have come into you and say hey can I run a credit simulator on and see if I get a score up 10 points. I always tell them say just bring it here let me look at it right. I’ll tell you pretty much tell you what you need to do. We don’t have to pay you only have to pay eight bucks a year Tulsa Mortgage.

Yeah. So because we know I mean I can look at break and look at it and they’ve got a thousand dollar limit on all their cards and they got an unheard of elves. OK. Well you need how many points. Ten. OK. Ready to play those cards down to 30 percent. Yeah it’s not rocket science OK but you’ve got to get with a pro and that’s what we’re talking about today.

So the last thing I want to say is that this with your revolving card because it’s the most important part the credit bureaus never want to see more than 30 percent balances on your revolving. So if you have a thousand dollar revolving they don’t want you to carry more than $300 on that thousand dollar worth revolving credit to get the best score. And I’m not saying you can’t do it you can do it. But if you’re trying to maintain the highest rating on that account keep it at 30 percent up Tulsa Mortgage.

All right. So we’ve got guys. Broadcasting live from the koala’s studios in Tulsa Oklahoma. You’re listening to the Steven Tyler show