Gregg Marcus

CREDIT MYTHS AND MAGIC – SECRETS SHARED

Credit is a wonderful and uniquely American concept – live today and pay for today tomorrow. Credit is like a drug addiction – once you try it you can never get enough of it. Credit is like quicksand – avoid it or you may sink underneath it and never be seen again. Credit is like magic –it enables me to manage my finances and allows me to invest profitably with other people’s money.

These four statements about credit reflect four drastically different attitudes and philosophies about budgets and spending habits. Which of the above best describes you and your credit habits and patterns? Have you even stopped enjoying the benefits or crying from the pain of the monthly burden of minimum payments long enough to think about it? If you haven’t, it is time for you to do it – before it is too late!

A credit report is nothing more than a mirror, is similar to a snapshot, and works like a key. The credit report shows your credit history – how much you owe today to whom, what your minimum monthly payments are, how you have paid your creditors, whether or not you have filed for bankruptcy, what type of bankruptcy and when, and any recorded judgments or tax liens you may have. The credit report contains an address history, a list of any and all creditors to whom you applied for credit that have run your report, and also has information about any disputes you have registered with the credit bureaus, as is your legal right to do.

The mirror analogy is the most important if you are trying to analyze what you do with credit – it will show you your spending habits and payment patterns as reported by your creditors to the three credit bureaus – Trans Union, Equifax, and Experian. If you are turned down for credit as a result of your report, the laws require the creditor to send you a notice informing you which bureau or bureaus contained the information that factored into your denial. The same legal notice contains the address you can use to obtain a FREE copy of your report.

If your monthly bills are more than you can afford, causing you to take out more credit to be able to live while paying your existing credit, you need to check yourself into rehab – you cannot get help too soon! A qualified loan officer from a reputable direct lender may be your life preserver – you can refinance, knock out the bills that are choking you, and take back control of your finances. Homebridge loan officers are trained to help, as we have the experience and the loan programs that are necessary, and more than 15 years of success stories to prove it. Grab the rope and pull yourself out of the mess before you hang yourself with it!

Some consumers actually make the credit game work to their advantage. These people understand that the value of credit and a good credit history lies in the opportunity to invest monies when the time is right. Because they use their credit when they are using their disposable income to invest and make money, they are always conscious of the payments and the interest costs associated with their actions, and seldom get into trouble. These consumers see the magic in the credit available to them, and do not lose sight of the dangers.

View your credit as the key to financial well being and fiscal health – it can unlock the cell door of your payment prison. The equity in your home may represent the solution you desperately need to get things back on track. Just remember the golden rule of mortgage refinancing – your home is your family’s castle, and there is no crime worse than encumbering it with a payment you cannot afford!

Article maintained by: Derek Nichlos