Black Friday is Here!!!!!

Yea!  Black Friday is here.  Great deals and the kick off to a wonderful holiday season.  Right?  Well, yes and no.  Too many “Great Deals” can leave you in a messy place when January rolls around and the credit card bills start to roll in.

We’ve all heard this warning over and over …and over…again.  So, I’m going to take a different tact.  Most of us will over-spend at least a little bit.  And, most of us will use credit cards.   Well, I am saying that indulging ourselves after we have worked hard all year is not a bad thing.  And, I am especially saying that using credit cards is not a bad thing…IF – and this is a big IF – you are mindful to not load up one credit card to its maximum credit limit.  In other words, if you have one credit card with a $5000 limit on it and charge, say, $4300 on it, your credit score will probably drop … a lot!  Like 50 points overnight!

Why? 

Here is a little understood fact about credit score calculation.  If you ever carry a balance of more than 30% of the maximum credit limit on any one card, the magic credit score calculator in the sky will think that you can’t manage your spending habits and are running your credit up to the maximum about allowed.  It would be much better for your credit score to use more than one credit card during the season and spread your debt out.   If you can keep your balances to less than 30% of the maximum allow credit limit on all of your credit cards, you score will be better than if you have the SAME dollar amount on one card which results in, say, 70% of the allowable maximum credit limit.  Now, I know this sounds crazy, and it may be.  However, like all of the information in my book, Be Creditwize, it is a fact.  The facts are presented so that you can manage your credit life, not deny it.  So, of course use constraint this shopping season, but, when you do charge, be smart about it….Be Creditwize!

For more info and to book a speaking engagement go to becreditwize.com

Black Friday and YOU

Yea!  Black Friday is almost here.  Great deals and the kick off to a wonderful holiday season.  Right?  Well, yes and no.  Too many “Great Deals” can leave you in a messy place when January rolls around and the credit card bills start to roll in.

We’ve all heard this warning over and over …and over…again.  So, I’m going to take a different tact.  Most of us will over-spend at least a little bit.  And, most of us will use credit cards.   Well, I am saying that indulging ourselves after we have worked hard all year is not a bad thing.  And, I am especially saying that using credit cards is not a bad thing…IF – and this is a big IF – you are mindful to not load up one credit card to its maximum credit limit.  In other words, if you have one credit card with a $5000 limit on it and charge, say, $4300 on it, your credit score will probably drop … a lot!  Like 50 points overnight!

Why? 

Here is a little understood fact about credit score calculation.  If you ever carry a balance of more than 30% of the maximum credit limit on any one card, the magic credit score calculator in the sky will think that you can’t manage your spending habits and are running your credit up to the maximum about allowed.  It would be much better for your credit score to use more than one credit card during the season and spread your debt out.   If you can keep your balances to less than 30% of the maximum allow credit limit on all of your credit cards, you score will be better than if you have the SAME dollar amount on one card which results in, say, 70% of the allowable maximum credit limit.  Now, I know this sounds crazy, and it may be.  However, like all of the information in my book, Be Creditwize, it is a fact.  The facts are presented so that you can manage your credit life, not deny it.  So, of course use constraint this shopping season, but, when you do charge, be smart about it….Be Creditwize!

For more info and to book a speaking engagement go to becreditwize.com

Excerpt from Chapter 9 – “Public Records”

Be Creditwize: Tips, Tools and Tactics for Controlling Your Credit by Carol DeMarco

Excerpt from Chapter 9 – “Public Records”

Public Records:
Legal Recordings of Tax Liens, Lawsuits,
Collections, and Judgments

• Legal recordings appear in the county in which the action occurred.

• Because these recordings are available to the public, no Social
Security numbers are used, only names and addresses.

• Public records are not automatically reported to the credit bureaus.

• Often, public records are MANUALLY retrieved and reported to the
bureaus by individuals employed by the bureaus.

Public Records…the ODD thing is…..

Chapter 6 – “Now, Let’s Talk About Credit Scores”

Ahh, those pesky Credit Scores…

Pesky, yes, but please understand that they are driving much of your life.  Sounds like a very large statement, but, it is true.

First, what is a Credit Score?

By definition, it is …

The numeric measurement of ones credit activity as compared to a perfect model.”

Second, virtually every credit decision made about you is dependent upon that number.  It could be used to determine the amount of deposit you may be asked to pay on a cell phone.  It may be a factor in your car insurance rates.  I will be used to determine the interest rate you pay for your auto loan.  I can be a factor considered when you apply for your dream job. And, it can be THE determining factor when – or IF – you can buy your new home.  Pretty powerful, right?

The reason a credit score is so important is that it is seen as a shortcut to analyzing your past credit behavior.  That shortcut is used because, frankly, it is reliable in predicting if you will be paying any of the items above in a timely fashion.  Remember, past activity is a reliable indicator of future behavior.  History repeats itself in credit as well as other parts of life.  Check it out..

Those with scores under 580 are 62% more likely to perform poorly on a new debt.

Those with  scores under 620 are 27% more likely to perform poorly on a new debt.

Those with scores over 700 are less than 3% likely to perform poorly on a new debt.

For more information on Credit Scores go to  becreditwize.com