TheCreditGuyTV Podcast

The repositories only recorded if the payment was on time, they did not record any other information. The repositories didn’t record how much consumers owed, what was the high credit, if they paid more than the minimum payment. This is what trended credit reports will include in the future.

Trended credit reports will create less fluctuations in credit scoring. Consumers will have a more consistent score although people who have a bad credit habits, will not be able to quickly turn it around. They will no longer be able to quickly improve their scores through paying down their credit utilization ratio right before they apply for a loan.

Trended credit reports will look more closely at how consumers really paid the past, not just before the application anymore and depending on the reporting date consumers could wind up hurting their score by paying their bills on the due date.

A lot of people think budgeting when they think about improving their credit. They cut down on expenses and take all the fun out of their budget. I just really never liked that strategy, I always preferred looking for ways to save money on your regular bills. That’s one thing that I put into the six steps to better credit score. I put a bonus at every step with one way you could save money. Then use that money that you saved to pay down your bills every month. Go over towww.getloanready.com to get the free six steps to better credit score and then at the end of each step there’s an additional bonus of one way you can save some money on your regular bills.

What is the impact of a sold derogatory on your credit score?

The CFPB has been working very diligently in the credit industry and they actually have been doing some good things. One of the complaints that the CFPB is getting are how sold derogatory accounts are handled.

Currently, when a collection is sold, that collection should be reported as zero. The balance would be transfer to the new reporting company. What the CFPB is putting pressure on how collection companies are reporting accounts. In response to this CFPB pressure the collection industry is actually considering not reporting sold collections anymore.

Basically when consumer’s collection accounts are sold to another collection company first collector would then not report the original collection anymore. The collection account would come off the report. There still will be one collection as opposed to four, five or six collections.

They proposed that consumers would only have the one collection that was active the other ones would not report anymore. A recent study from Vantage said that the material impact of removing the sold collections is not material enough to reduce consumer’s credit score.

Vantage’s findings that really no predictor whether you had five collections were stolen your credit report or one it doesn't predict how you're going to pay back the bill it just predicts the behavior of the credit and collection companies that keep selling the data

Hopefully, I believe that collection companies will stop reporting the accounts when it is sold. In the future if a consumer that had collection sold five times it will only show up at one time and then the other four will come off. It is not law yet but it's something that they're looking in to. They have evaluated the impact from a scoring perspective and it is really no impact.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I'd be happy to answer them.

I am going to try do something about that here in Michigan. I think really all the states should pass a similar law, so I am going to work with my contacts to see what would take to get something like that moving along in Michigan. I think it’s a good move to freeze your credit report. There is a way to freeze your kids credit report before they turn 18.

Dave Sullivan here with Blog number two from the tiny house series. I’m here in Muskegon and things went very well at the credit union today. We’ve got all of the social media website set up, we are the only credit union in Michigan with all of social media accounts set up.

Tomorrow we’re going to be talking about getting a spot on a local radio channel to do weekly show and we’re talking about reporting to all three repositories, it is very common for small credit unions to report to one or two of the three major repositories. In the past I’ve recommended that you be careful about using a small Credit Union or Bank because many times they don’t report too all three of the repositories it is very common. I’m going to make sure that First General Credit Union reports to all three repositories. We’re meeting on that again tomorrow.

Update on the tiny house, this time I wanted to show you the kitchen and then we’re going to wrap it up. Tomorrow morning I’m hoping that we can actually do an outside presentation. The lake is right across the street and it is roaring right now. It’s pretty cool and I think it’s a little bit different than you would get from the ocean. There is there something about it.

The kitchen is small or tiny but it’s got everything you need it’s got a full fridge, microwave, stove and sink it actually has a dishwasher. It was for a weekend is what this was designed for you know it’s really everything you need here with the with the kitchen

The credit tip is to remember that some local small credit unions and some banks could report to only one or two of the three repositories.

If you go to a small credit union or a bank ask them if they report to all three, if they don’t say yes, I would not get a credit card with them. It doesn’t do you any good to build up one or two of the three major repository credit scores because you need all three to apply for a mortgage.

If you want to see more videos about credit and credit scoring check these out atwww.thecreditguy.tv. If you are a mortgage lender please share this on yourFacebook or LinkedIn page. If you have any questions, leave them down below I’d be happy to answer them.

7 secrets of a perfect credit score

90% of Top Lenders Use FICO® Scores

I had a friend going into their second term at Kettering University and they needed to apply for a student loan. The loan that they were applying for consider credit scores. Many times young adults who are in their first year of college have not built up a sufficient credit history for a good credit score. College loans are based on the credit history of the student not the parents.

The most important thing students should do before they go to college is to build a great credit history. With one or two credit cards they can start off on the right foot hopefully they have one or two bank credit cards. Store credit card are better than nothing just make sure to maintain three to seven percent balance on the credit cards on the reporting date the month prior to you applying for a loan.

If the student loan company is going to pull your credit report in January you want to make sure that at the end of December you have three to seven percent balances reporting in order to boost your credit score as high as it can be when you apply for that student loan. Zero is not as good as 3 to 7 percent really 5 to 9% is what I have been saying in the past. 3 to 7 is a more cautious, especially if you only have a few credit cards in their small balance's you really want to be at the lower end. That's why I'm saying now three to seven percent rather than five to nine.

The other thing to consider is if your parents have a credit card that they've had for a long time and never had a late payment, you may want to ask them to add you as a joint card holder or an authorized user. I would prefer that you go to a joint card holder status. You don't have to ask for a card from your parents or grandparents. You can just be listed on that account then wait about three months before you apply for the loan. The reporting may be just one month but it may take longer so three months should be safe.

Three months before you apply for the loan, if you can get recorded on a parent or grandparent's credit card that has;

long credit history

low balance

never late

Then when you apply for these new student loans you will get the best possible rate. Student loans can be fixed rate loans. If Students have not built up a good credit history they're going to be penalized because they don't have that great credit history established. If you want more information go to my free six steps to a better score at GetLoanReady.com is all free to follow the six steps in your credit score as high as possible will be better every month moving forward.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I'd be happy to answer them.

90% of Top Lenders Use FICO® Scores

Risk-based pricing is coming to your cell phone! The Federal Trade Commission recently fined cell phone provider Sprint three million dollars because they failed to disclose they were using risk-based pricing with credit scores when offering cell phone service. You already know credit scores are used for mortgages, insurance and by the IRS during during an audit, along with most other loans.

Now credit scores are also used by cellphone companies. Cell phone companies could start charging more to consumers with lower credit scores than they other consumers with higher credit scores. In the past cell phone companies used credit on strictly a accept or deny basis.

What the Federal Trade Commission found was Sprint was actually billing between seven and eight dollars more for clients with a low credit score . It is very important to make sure that your credit score is as high as it could be at all times. I did set up a free website you can go and follow my six steps to better credit score, go to GetLoanReady.com for 6 steps to actually improve your credit score, it doesn't cost anything it's just really instructions on how to change your credit behavior. I hope you take advantage of that this year.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I'd be happy to answer them.

Hi everybody Dave Sullivan here for the Credit Guy TV with special guest...

Charles Green of the Small Business Finances Institute

Dave: Charles thanks for reaching out to me on LinkedIn, I have really enjoyed our relationship. You have found a niche, something that the commercial banking industry needs. Tell me a little bit more about that.

Charles: Dave, I have been a career banker since the late seventies, when I joined the industry, I was given about eight weeks of training in my first two years of employment. I was really not worth much to the company that hired me, but after the S&L crisis internal training programs for most banks sort of went away and it's never really come back, although there have been some really good times since.

I started a training operation to create content to train commercial lenders the fundamental skills needed to evaluate, fund and close commercial loans across all different product types. We plan to deliver this through streaming video across the nation.

Dave: Training is so important and has been overlooked in the commercial space. The mortgage lender has really been trained to death today and commercial lending is ignored completely. There is a real need for this don't you agree?

Charles: I do, mortgage brokers are licensed and that gives them particularly standards that they have to adhere to. They can be evaluated in a simpler way against those standards. In commercial lending, you have a diversity of product lines you've got regulated banks and non-regulated finance companies that provide different financing products. It can be a big sea of people floating around with different kinds of experience with products to offer, that just sort of gets lost to them in the fray and customers suffer consequences, because commercial customers don't always know who can help them and the person that they find might not know where to send them if they can't deal with the situation.

Dave: Many times commercial loan officers are really thrust into that position with little or no training. I think this product is very important and I flew down to Atlanta to meet with you to record a session on business credit. I was very impresses with the professionalism of the organization you have down there, talk a little bit about the teachers that you found for the program as well as your background.

Charles: I have been away from active banking for almost five years, so I had adopted the job title of "Recovering Banker". I still retained quite a bit of this knowledge from my thirty five year career. I have also have recruited a lot of other leaders who have different perspective and experience in particular credit lines like:

• Asset based lending
• Commercial real estate
• Government guaranteed products

In addition, we're putting together a group of professionals who haven't been lending the money but they've been supporting the lending industry through providing their professional services for the due diligence. You're joining us was one such instance where you're an expert on credit data, credit histories and how the FICO(r) score stacks up. How credit scores can be accurate or sometimes not so accurate for business owners. Explaining these kinds of lessons, giving commercial lenders more context around the job that they have to do. Similarly we have been working with a real estate appraiser and an environmental engineer that is going to help teach bankers how to evaluate property in terms of the environmental risk. We have an attorney creating content about the different closing functions, the different contracts banks use, the different issues that can arise with the property title and so forth.

Dave: I think that is all key information and to have it all in a concise video format. I don't think it has been done before for the commercial lender and I'm very excited to be a part of it. Charles how can people find the products or take a look at what you have to offer?

Charles: Our website SBFI.ORG that stands for Small Business Finance Institute SBFI.ORG and there's a tab there that says “lender training” just follow the navigation from there to see everything we offer.

Dave: Thank you so much for being on the blog today, do you want to give out your email address so people can contact you directly?

Charles: Certainly [email protected] thank you so much Dave.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I'd be happy to answer them.

90% of Top Lenders Use FICO® Scores