Four Hundred Dollars, Ten Thousand Dollar, Hundred Dollars discussed on Red Hot Real Estate Show

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All and what your credit mix is and how much you owe on that credit card versus what the limit is and then if you pay that down the next month now it's a whole new number because it's new information that it's assessing let's talk about that so let's just say that you've got a credit card with a ten thousand dollar limit and you have a habit of maxing it out and then paying it off is that good or bad so on you know I'd like to do these will not Max it out but you know I dig the points that's what I'm after please point points but if you Max it out and then pay it off and then Max it out and pay it off you really not telling the credit bureaus that you know how to manage debt you're telling them that you know how to Max it out and pay it off right it's not really managing that so what I'd suggest that to that person and and where the problem comes in our back up real quick is that depending on when I pull that credit report in the months are you maxed at that moment or had you just paid it off right in the middle where are you at with so it doesn't show like a longevity of right so most people would think you know I have the ability to pay that off some golden exactly so it's not necessarily golden it depends on when you pull exactly it is that I sometime to do that so so your payments due on let's say the fifteenth and it takes about five days to pull so let me get you do like any kind of calculated timing of this it's great I love it yeah I know so not really I mean okay because every credit card reports at a different date of the month to the credit bureau so it depends on when that rip and information is reporting what I generally tell people is if if I happen to pull it and you owed nine ninety nine on that ten thousand card or whatever then I tell them okay here's here's what I want you to do is you know you're just paying it off anyway every month so the next thirty days let's live on more of your cash instead of on your credit like you're used to doing then as we get closer to the end of the month when we see that your balance is closer to the bottom verses the top will pull then okay and then we're gonna have a better and you know I can even do a simulation in my credit bureau toolbox it lets me say okay he only owes three thousand on the credit card now what was the score be pushed the button right next have a bye yeah but it's also I guess that that part of that so and they're the reason why it's kind of counter into it is that part of the reason why we get these credit card deals is I want to rack up as you said I want these points I get these perks to get this bonus for doing these things and so you forget that is like okay for a little while I need to re train myself right because the perk I get is that I get to get a better rate on a home loan that's right if I don't get these things maybe I won't get as many you know discount points that time one by Paul McCartney tickets right or something but it's like well what do you actually give the credit report it's good for four months okay go back to regular life I can't not like you don't get to use that credit card I think that's another do Bach people okay thank all my gosh I'm so used to using my credit card every month if if I try to buy a house there she's gonna tell me I can't credit cards and now I'm song okay no no no no but wouldn't it be great to actually know what you need to do I suppose the just guessing that's what I'm saying to myself it's like yeah I can kind of do all the Google research I want but wouldn't be nice to just have a finite plan right from somebody who's been doing this for many years as an expert by calling Shelley and get your hundred dollars for an hour thanks that and I think that that's always weird too because a lot of times we don't even like I'm glad you said it that way Mimi because it doesn't even occur to us we're guessing we don't know we are not experts in this we think we now and then you're getting yourself in hot water because you think you know yeah can you really tell that's right yep and when I Google that problem that I think I have it said this while that might not have been the right thing to do depending on what you're right above that so you have to you have to let me do that zero first program where I do the soft credit poll because I can not only then see what's wrong but I can tell you what to do and that's what the apps don't tell you and that's what the Google doesn't tell you directly specifically to your situation this is what you need to do well we appreciate you being part of the red hot real estate show you can always call us at six five one six four one one oh seven one especially today you can call and get your credit questions answered by saucier for this Pacific mortgages Shelley Ferris and we do have tatty on on the line Tatiana thank you for calling that's not gonna you have a question about your credit is that correct yeah okay so wowhead Shelley and Mimi are here to help okay so I have a question I've been looking online never got it answer about why you're offered derogatory remark on your credit well I got that would your choir credit score drop significantly if you're actually making remarks come that is an excellent question time Jenny I **** I get that a couple of times a month and I've been doing this for thirty years hi I've heard that question all locked and here's what it is I will straight up answer your question that trade line right now the and that's what we call it a bad debt is a trade line on on your credit bureau is showing negative but it's showing negative with a long time ago data okay so you're so maybe that derogatory credit happens two years ago and you all four hundred dollars so if you go ahead and pay off that four hundred dollars the death part goes to zero but the date gets updated to today and that's the part that pulls your score down isn't that illogical I mean it is still not rational not logical that's credit world that is exactly great world so you can you still do some of that stuff right you still going to do that stuff or you can't recover so don't focus so hard on maybe the fifty points are seventy five points that you'll lose by paying the derogatory if you're not going to do something immediately and focus more on what you're gonna do to keep the good part of your credit going to have good credit cards do you have good mortgage dad do you have good payments on other stuff to not have that key thing be so impactful to your score okay that makes sense thank you you're welcome thanks Ted Tiana yeah that was a great question yeah and again it's again we appreciate your sharing the question because like you said Shelly a lot of these things are counter intuitive we're like wait I did the right thing I pay this off right why did it go down yeah you know and you're going all well yeah there's a trick to it so is this something that that Tatiana could have benefited from by having a consultation with you or you could have told or maybe the right thing to do right so because we wouldn't just focus on that derogatory trade line we look at the whole credit package tied Jana you only have one credit card and it's maxed out our old you have couple mortgage lates that we need to work on aging right so keep making those payments on time or gosh I think you should open up an installment debt that will help out your overall package that's what we talk about so when we come back from the break we're going to talk a little bit about bankruptcy and how some of the myths with credit affect you know also take your calls you can be just like Tatiana be part of the red hot real estate show at six five one six four one one oh seven one will be right back recently overheard on Donna and Steve wonder baby baby autumn like Donna you know what how bout this here's what you should do skip the first officer my concern is this that okay Donna your master's program is my concern watch the first episode in 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