I’m generally a healthy guy, but I gotta confess…
I love ice cream.
I can clean out a pint in less than 25 minutes.
And… I’m a busy guy, so I let fitness slip through the cracks here and again.
Then ten months ago, I made a commitment to get into the best shape of my life. I’ve been taking pictures in regular intervals documenting my transformation.
If you look at the pictures*, there isn’t much difference from one picture to the next. But if you hold up Month One against Month Ten, it’s like you are looking at two different people.
Here’s another related thought…
My oldest daughter, Ava, is five. And I swear that from day-to-day, she looks exactly the same as she did the day before. But even though the growth from day-to-day is undetectable, she’s been growing like a weed.
In fact, when I look at Ava next to my newest baby (Emma will be two weeks old tomorrow), Ava looks more like an adult than a baby!
My Coach Tim Wood has said to me, “People always over estimate what they can accomplish in a year, and GROSSLY underestimate what they can accomplish in five years.”
Here’s my point: Transforming your credit score or your finances is possible—it’s even easy once your behaviors become second nature.
But don’t measure your progress daily—you’ll only get frustrated. Give it some time, and then look back in a month or six months. Just keep piling on small changes, and see what happens!
–Philip Tirone
* I was going to post the pictures, but one of my staff members said, “No thanks, Phil. We don’t need to see you with your shirt off.”
So I’m not going to post the before and after pictures, but please leave a comment on my blog if you have any thoughts!
Author: Philip Tirone
The Fastest Way to Build Credit
Question: What is the fastest way to build credit? I am applying for a business loan, and I need to bump my score up by about 60 points.
Answer: There are a lot of reasons you might want to raise your credit score, and raise it fast. In today’s environment, you might not qualify for a loan if your credit score is not at least 720. About 60 percent of employers run credit checks on potential employees. Landlords won’t rent to people with bad credit. You will pay more in interest if you have bad credit. The list goes on and on …
Fortunately, if you want to learn how to build credit fast, I have a great trick. This works best for married people, but single folks can use it as well. Let’s start by assuming you are married. Later, I will explain how to modify this example if you are single.
The Fastest Way to Build Credit: A Tip for Married People
To build your credit fast, transfer as much of your credit card debt into your spouse’s name. To do this, simply have your spouse “buy” your debt by paying your balance(s) with his or her credit card(s). Assuming you both have individual credit cards, this will cause your score to jump quickly.
You see, the credit-scoring bureaus place a lot of weight on something called a utilization rate. Each of your credit cards has a utilization rate, which is a number that describe how much of your limit you are utilizing. For instance, if a credit card has a $1000 limit and you have a $100 balance, you are utilizing 10 percent of your limit. Your utilization rate, therefore, is 10 percent.
Credit-scoring bureaus respond best if your utilization rate is below 30 percent, so if you want to learn how to fix credit, you should always lower your utilization rate.
Start by transferring balances to your spouse’s credit cards. Of course, this might lower your spouse’s credit score, but you will buy the debt back (thereby increasing your spouse’s score) once you have qualified for the loan.
In short, you will have better loan terms, and your spouse’s score will be lowered only temporarily.
The Fastest Way to Build Credit: A Tip for Single People
If you are single and also want to know the fastest way to build credit, you can modify this tip and use the same strategy with a family member or a loved one. However, be sure to put some structures in place so that your family member/loved one is protected. For instance, you might want to structure a proper contract by hiring a lawyer or using an online service such as Virgin Money. You might also give your family member/loved one collateral. Is your car paid off? Do you have an expensive piece of jewelry? One way or another, be sure that you never jeopardize family relationships just to raise your credit score!
And be sure to download our free ebooks about how to secure home and car loans during this tight lending environment.
Debt Settlement Scams- 10 Stupid and Simple Ways to Get Burned
Over the past few years I have heard non-stop stories from consumers who were taken for costly rides by debt settlement scams. While it is true that there are a few good and well intentioned programs available that provide real debt solutions, my experience shows that a vast majority of these outfits are simply money grubbing nightmares for cash strapped consumers.
The debt relief world can be a very confusing place, especially when people are in a seemingly desperate financial situation. With that in mind I would like to shed a little light on this industry and present:
For my 720 family, by 720 Credit Score
I have some opportunities for entrepreneurs, and I have a few congratulations for you…
First the opportunities:
A close friend of mine is a culinary genius and owns a dozen restaurants. He just bought a high-end wine store, which sells about 2,000 baskets each year. He expects this number to grow under him, and he plans on enhancing the already-luxurious baskets. This is where you could come in. He needs the following:
- A supplier of artesian baskets, bowls, or anything else that could be used for high-end gift baskets.
- Artists that make anything that could be sold in a high-end wine store.
If you know any vendors who could help him accomplish his goals, please reply to this email.
Accomplishments:
1) One of my close friends finished his book on financial planning. I’ve read a lot of books on personal finance, but frankly, most of them are boring and exhausting. Jeff’s book, on the other hand, is really unique, if you are looking for a book on personal finance, check this out: Soldier of Finance: Take Charge of Your Money and Invest in Your Future.
2) Congrats to Norma Bellos, whose son Richard just got into Harvard. Wow!
3) Congrats to Kiddy and Jonathan Davis for paying off $44,000 in credit card debt in 12 months. You figured out a plan, followed it, and now you can reap the benefits!
4) Congratulation to Nic Sirrine, who raised his credit score after a bankruptcy from 520 to 700,in just four months! Nic – you rock! Thanks for following the advice perfectly.
5) Congratulation to Jimi Akiboh, who raised his credit score after a divorce and bankruptcy from 535 to 727 in 17 months. Great job, Jimi!
Here’s to making the end of 2013 the best ever!
As you know, I love to hear about the accomplishments in your life. If you have any big successes, credit or otherwise, comment below.
Royalty Resource Network Named in Advanced Fee Loan Deception
Consumers in West Virginia are being warned, by their Attorney General Darrell McGraw, about a scam that offers the promise of fast and easy loans. These promises are coming from advertisements produced by the “Royalty Resource Network” (RRN), a Canadian based scam operation, that is appearing in local West Virginia publications.
Attorney General McGraw stated: “Consumers should use extra caution when responding to any sort of advertisement regarding lending and finance. Thieves will use newspapers, websites, e-mails, telephone calls, any medium at their disposal to help you part with your hard-earned money. No legitimate company or organization will require you to wire money in advance using a wire transfer service in order to qualify for a loan, grant or any other financial aid.”
RNN’s advertisements claim you can obtain a loan ranging from $2,500.00 up to $1 million, with no consulting, application or processing fees. Too good to be true? What actually happens is, the consumer sends an advance portion of the money they intend to borrow through a reputable wire service where a fake RNN loan offers collects the money and disappears.
Many scans of this type surface frequently on the internet. It appears that this particular instance the company in question is using smaller newspapers and publications to reach consumers. In this instance a large ad was ordered and placed in The Ad Bulletin. Not only were consumers scammed, The Ad Bulletin was too. RRN’s scammers used a stolen credit card to pay for the advertisement.
Scammers are able to quickly open and close a scam in a matter of days, by using disposable cell phones, free e-mail accounts and remotely routed toll-free numbers. In this case if you call the toll-free number given by RRN it rings as a fast busy signal. Other companies related to this scam are the Vintage Consumer Network and Forum Family Services. The names were possibly choose for their friendly connotations.
Attorney General McGraw’s Consumer Protection Division has referred the complaints against these three companies as well as other across-the-border advance-fee loan scams, to the Canadian Anti-Fraud Centre. The Centre is a joint task force of the Ontario Provincial Police, the Royal Canadian Mounted Police and the Competition Bureau Canada.
These advance fee loan scams unfortunately attract a number of people who are desperate to get loans and sadly pay money, never to see it again.
This guest post is by Steve Rhode. Steve is a consumer debt expert that helps people for free to learn and avoid scams. Feel free to report a scam if you know of one.
Grandparent Scam Strikes Again
Put yourself in the shoes of a caring Grandmother. Let’s say one day you receive a call from your grandson telling you they’ve been in an accident and are being held in jail in the Dominican Republic. They want you to keep their little debacle a secret but they need you to wire money to them ASAP to get them out of jail.
What would you do?
Claudia Beach of Jacksonville, Florida recently faced this exact scenario recently and in a worried, emotional state, sent the money straight away to her needy grandson. Her grandson first called asking for $3,400 for bail out of the Dominican Republic jail he was stuck in.
My emotions went wild. I couldn’t think. All I could think was he was in jail in a foreign country.
She rushed to her nearest Publix and wired the money immediately via Western Union.
Keeping her grandson’s secret she apparently didn’t discus this matter with the boy’s parents. The very next day she received another call from him. This time he said they were making him pay his medical expenses of $2,400.
To Western Union!
Later that very afternoon the phone rang again. This time sonny-boy was asking for $1,800 to pay for the medical expenses of the lady he hit.
She says that the employees at Western Union questioned her each time if she was sure if this was her grandson. When he called the first time he told her that he didn’t sound like himself since he had been in the accident and had stitches in his lips. In a concerned state, she bought this story.
The money was wired each time to a lawyer by the name of Angel Rosario. Money that Claudia Beach will never see again. A total of $8,300. She has since filed a complaint with the Federal Trade Commission and the local police. Beach has come forward with this story to bring awareness to others that might be at risk for this scam.
To protect yourself:
- Do not disclose any information before you have confirmed it really is your grandchild.
- If you’re not sure ask the caller for their middle name or the elementary school he or she attended.
- Do not respond with a name but instead let the caller explain who he or she is.
What breaks my heart about this scam is that it preys on love. If you are a caring Grandparent be wary if you receive a call like this that tugs on your heart strings. If you receive a distress call from a family member in another country I would recommend first, verifying that they are in fact in another country. Using the bullet pointed suggestions above or maybe calling their cell phone? Or their parents to ask how they are doing and what they are up to? I understand there will be different cases for different family dynamics but before you pay up you need to verify an identity!
Video about Grandparent Scam Strikes Again by @GetOutOfDebtGuy from GetOutOfDebt.org
This guest post was submitted by Steve Rhode who is a consumer debt expert and helps learn about getting out of debt and avoid scams.
Top Ten Things that Will Hurt Your Credit Score: Part II
In my last post, I talked about five of the top ten things that will hurt your credit score. Here are the final five:
Things That Will Hurt Your Credit Score #6: Not Pulling Your Credit Report Regularly.
A lot of people worry that if they pull their credit report, they will hurt their credit score. While it is true that 10 percent of your score is based on the number of inquiries by lenders into your credit report, pulling your own credit report does not hurt your score. You can pull your own credit report each and every day, and your score will not budge.
In fact, failing to pull your credit report could hurt your score. How will you know if someone opens an account in your name? How will you know if your account limits are being inaccurately reported?
At a minimum, pull your credit report from www.720FICOScore.com at least every six months.
Things That Will Hurt Your Credit Score #7: Closing an account.
15 percent of your score is based on the age of your credit accounts. The older your accounts, the better your score.
For instance, let’s say you have five accounts:
- Account #1 is five years old,
- Account #2 is twelve years old,
- Account #3 is seven years old,
- Account #4 is eight years old, and
- Account #5 is nine years old.
The average age of all of your accounts is 8.2 years. Now let’s imagine that you close account #2, which is twelve years old. Now the average age of your accounts is only 7.25 years.
And this is just one reason closing an account can hurt your score. If you close an account, the account will show a $0 limit. So if you have a balance on this account, your balance-to-limit ratio will be sky-high.
Don’t forget, too, that 10 percent of your score is based on the type of credit you have. The credit-scoring bureaus like credit reports with a healthy mix of credit, and they prefer that you have at least three credit cards. If you close an account, you might have too few credit cards, or you might not have a healthy mix, both of which will hurt your score.
Things That Will Hurt Your Credit Score #8: Collections.
Collection accounts are particularly harmful because they are always preceded by late payments. A collection account should stay on your credit report for seven years from the date of activity that sent the account into collections. For instance, if you fail to pay your credit card bill on March 1, 2010, this is the traditional course of action:
1. A 30-day late payment will be added to your account on approximately April 1.
2. A 60-day late payment will be added to your account on approximately May 1.
3. A 90-day late payment will be added to your account on approximately June 1.
4. A 120-day late payment will be added to your account on approximately July 1, and the account will be sent to collection.
5. Assuming you make no further payments on the account, the collection will remain on your credit report for seven years after the original late payment. In other words, it will fall off your credit report on approximately March 1, 2017.
Things That Will Hurt Your Credit Score #9: Paying a bill in collections.
Now let’s add a payment into the mix. Let’s assume all of the above, but that in March 2012, you make a partial payment on the collection account. Guess what? This renews the date of last activity, meaning that the collection account will stay on your report until March 2019!
It’s crazy but true. Paying a collection account will often hurt your credit score.
In 7 Steps to a 720 Credit Score, I describe this process in detail, and I provide you with all the forms and worksheets necessary to get that collection account off your credit report!
Things That Will Hurt Your Credit Score #10: Late payments.
You probably already knew that late payments will hurt your credit score. Here’s the good news: The credit-reporting bureaus pay more attention to recent behavior than past behavior. If you follow the steps for building your credit score, the damage will be all but erased in as little as two years!
Married or Engaged? Here's the 411.
One of my readers recently sent me a great question:
“If I marry someone who has declared bankruptcy this year, will it lower my credit score?”
She went on to say that her credit is currently golden. So when she marries her fiancé, what is going to happen to that great credit?
It’s a common worry, but the good news is that you and your spouse will retain separate credit files. Marrying someone with bad credit won’t hurt your credit in and of itself. And if you are already married to someone who experiences credit issues, your score will not be affected, so long as you protect yourself.
It works like this: If Joe has a credit card in his name only, his credit score will suffer if he makes a late payment, but his wife Jane’s credit score won’t be affected at all. But if Jane and Joe have a joint credit card, and Joe makes a late payment, both of their scores will suffer.
This is one of the reasons I always tell married people to keep separate credit files. This way, if one person in the marriage defaults, the other spouse still has strong credit, which the couple can then leverage. But if you have joint credit cards, mortgages, and car loans, what one person does on those accounts WILL affect the other person.
So no need to worry about your fiancé’s past mistakes. There’s no way it will hurt your credit score. But to protect yourself from any future credit problems, I strongly suggest that you don’t open joint accounts with your soon-to-be spouse. Instead, have him apply for secure credit cards and start the process of repairing credit after bankruptcy.
– Philip Tirone
What to Do if You Can’t Stop Worrying About Your Bills, by 720 Credit Score
One of my friends just told me that he owes $68,000 in credit card debt.
He’s 26 years old.
And he has that feeling in the pit of his stomach—you know that feeling. He can’t ever truly relax because he’s so worried. All these questions start racing through his head…
- How I will ever pay all these bills?
- Will I ever have fun again?
- Are they going to sue me? And if they do, will my wages be garnished.
As I was talking to him, I was reminded of the last time I felt that way. Several years back, I carried a loan for a friend of mine. He was making a fortune, but he had declared bankruptcy a few years prior, so he didn’t qualify for the loan.
So I foolishly agreed to carry the loan on his behalf. He would pay me; I would pay the bank.
I knew he was good for it.
Until one day he wasn’t. The market took a nosedive, and so did his business. Suddenly, he couldn’t pay me one month.
And his loan skyrocketed to $9,841 a month.
I got that feeling. That terrible feeling.
How was I going to absorb an extra $9,841-a-month when my own income was down?
The next month, he couldn’t pay me again.
So I remember how it feels. It’s terrible, to put it mildly.
The trouble with that feeling is that it stops people from taking rational steps. They just want the feeling to go away. They’ll do anything to make the feeling go away.
For some people, that means ignoring it entirely. Others start worrying so much that they cannot focus on the solutions in front of them. There’s so much emotion packed into financial problems that it’s hard to be clear-headed and strategic.
But here’s the truth: There’s always a way out. I’ve had clients who have owed hundreds of thousands of dollars in debt that cannot be discharged during bankruptcy—like most student loans and some back taxes.
And there’s always a way out.
But you aren’t necessarily going to see it if you are panicking.
So here’s something I want you to try this week. Go sit somewhere peaceful and calm. Give yourself permission to feel that panic for five or ten minutes.
Then ask yourself a question. Ask yourself: “If I were to consider every single opportunity for resolving this situation, what would be on that list?”
Then start making a list. It might include things like declaring bankruptcy, selling your house, or getting a second job. It might include things like dipping into your children’s college fund or selling your car and taking the bus.
These are things you might be thinking that you would never, ever consider. But Don’t judge the things on your list. If you pile more fear on top of the fear you already have, you aren’t going to find a solution. The key is that you want to allow your mind to open up to all of the possibilities. Let it wander. Invite it to consider the absurd.
And see what you come up with.
There are always options. In fact, the universe is filled with infinite possibilities. The question is: Can you see the options?
So take a deep breath. Believe that there is a way.
And let me know what you come up with by leaving a comment below.
And one other thing because I want to give you an example of a solution that you might be afraid to think about.
Most people are terrified when they think of bankruptcy. Considering filing bankruptcy just makes them feel worse.
But is it really that bad?
I don’t think so. Bankruptcy allows people an opportunity to wipe the slate clean. It gives them the chance to start over, without having to feel financial stress day in and day out. And it also allows them to start rebuilding their credit score a while lot faster than if they just keep struggling to stay afloat for years on end.
But you won’t see options like this if you do not allow your mind to consider them.
So if you would like a referral to a bankruptcy attorney, send an email to Info@720creditscore.com and we will put you in touch with a bankruptcy attorney in your area.
Otherwise, keep us posted on your progress by leaving a comment below!
Top Ten Things that Will Hurt Your Credit Score: Part I
You might be surprised by some of the things that will hurt your credit score. Over the next two blog posts, I’ll reveal the top ten things that will hurt your credit score, in no particular order.
Things That Will Hurt Your Credit Score #1:
No credit.
I always say that no credit is just as bad as bad credit. The credit-scoring systems have certain criteria by which they determine a person’s credit score. Without that information, they have no way of telling whether a person is creditworthy. Better safe than sorry, they think, and they assign a poor credit score to that person.
Ideally, you should have between three and five credit cards, an installment loan, and a mortgage.
Things That Will Hurt Your Credit Score #2:
Bankruptcy.
You probably already know that a bankruptcy is one of the worst things that can happen to your credit score. Not only does the bankruptcy hurt your score, but so do the late payments and collection accounts that led up to the bankruptcy.
Here’s what you don’t know: You can repair credit after bankruptcy in as little as two years!
Things That Will Hurt Your Credit Score #3:
High credit card balances.
Your credit score is comprised of 22 criteria, and a whopping 30 percent looks at your outstanding debt. Among other things, the credit-scoring bureaus want to see a low balance-to-limit ratio. If you carry a balance that exceeds 30 percent of your credit card limit, your score could be lowered. For instance, if you have a limit of $1000 on your MasterCard, keep your balance below $300 at all times.
Things That Will Hurt Your Credit Score #4:
An incorrect credit limit.
Here’s a dirty little secret that will hurt your credit score: Almost half of people have a credit card limit that is being incorrectly reported to the credit-scoring bureaus. Say, for instance, that your MasterCard has a $1000 limit. The credit card company might be reporting your limit as only $500.
Now let’s imagine that you have a $250 balance on that credit card. This is only 25 percent of the $1000 limit (see #3). But because of the credit card company’s mistake, your balance-to-limit appears to be 50 percent!
Failing to correct this mistake is one the ten biggest credit mistakes to avoid.
Things That Will Hurt Your Credit Score #5:
A foreclosure, repossession, judgment, or lien.
Ouch. Each of these things will cause your credit score to drop. The key to recovering after a foreclosure, repossession, judgment, or lien is to be proactive. You can raise your score to 720 in just two years if you start the process of rebuilding your credit score.
Too often, though, people feel overwhelmed by their finances, so they adopt a do-nothing approach and hope the problem just disappears. This only delays recovering. Instead, decide that you are going to take simple steps to rebuilding your credit, and that you are going to start today. If you follow an easy plan to rebuild your credit, your score will start to increase, and in just two years, you can enjoy all the perks of a 720 credit score.
Be sure to come back next week for #6 through #10 of the top ten things that will hurt your credit score.
