Real Estate

How to Manage Credit Cards

When it comes to how to increase your credit score, there is a lot of misinformation out there. But never fear! Here’s a well thought out post from Mike Wickham, who does a great job for people needing a mortgage to buy a new home…

“Avoid delinquent payments and maintain low utilization ratios.

Delinquent payments reduce your score. Eliminating the delinquency does not restore your score to where it was, it merely prevents a further decline. Delinquencies stay on your record for 7 years, although their force will gradually weaken as on-time payments come in.

Shoot for low utilization ratios, below 33% on all your cards. The utilization ratio is the outstanding debt relative to the maximum amount of debt that the credit grantor has set on that card. For example, if the balance on a card is $2,500 and the maximum balance is $5,000, the utilization rate is 50%.

A card holder can reduce his utilization ratio by reducing his balance, and also by increasing the maximum balance. If a borrower has had a good payment record, the maximum can often be increased simply by asking.

If your card issuer does not report a maximum, your score will be calculated on the assumption that the highest balance ever reached in that account is the maximum, when in fact it could be well below the maximum. This raises your utilization rate (and lowers your credit score) for no good reason.

If a card has no reported limit, you can either request that the limit be reported, or terminate the relationship. Alternatively, you can shift all your balances into this account temporarily so that the highest balance comes closer to the unreported maximum.

In addition, don’t have too many cards or too few, about 4 or 5 old cards that you actively use is about right. New cards can reduce your score. Avoid department store cards, which will reduce your score.”

Have a great week and stay warm!

Mike Wickham
Loan ConsultantNMLS: 505614

Caliber Home Loans, Inc.
10022 Lantern Road Suite 600

Fishers, IN 46037

Mobile: 317-260-1563 |Office: 317-576-4115

EFax: 877-673-0432

E-Mail: mike.wickham@caliberhomeloans.com

Apply On-Line @ http://caliberhomeloans.com/mwickham

How Long Have You Been in Real Estate?

You know, that’s a question newbies to the biz are reluctant to answer. (And given how real world experience helps deliver on client needs, that’s no surprise.) As 2016 draws to a close, I’m reminded I started out in the real estate industry in Bloomington 40 years ago. A college buddy and I pooled what cash we had and borrowed off our credit cards to scrape together enough to buy a duplex. What lessons we learned on that one small property! I still remember going over there to begin remodeling, only to discover the water pipes and toilets had froze and burst, spewing water all over the floors. Boy, what fun that was to clean up! And then there was our first experience with gas lines- definitely not something we were prepared for. Flames!! And then Gil grabbing the nearest bucket (which just happened to contain the filthy water from cleaning the floor) and tossing it on me. We were really lucky not to blow the place up. But somehow we managed to get it fixed up and rented out to a couple international students. Back then none of us even knew what the word Diversity meant in today’s context, but I guess when we walked in one day to make a repair and found a live chicken in the kitchen cabinet, well, that was Diversity! But hey, we stumbled through it all and sold the property for a nice little profit. And off we went to buy another, bigger and better property.

I’d like to say I learned it all on that first property. But not so. In fact, I’ve learned a ton of lessons since. Wearing a lot of different hats has sure helped. Over the years I’ve been a remodeling contractor, property manager, builder, developer, appraiser, mortgage lender, inspector and realtor. And whenever the situation arises I employ the lessons learned from whichever hat I was wearing at the time— to help clients improve their future. But truth be told, I’m hoping I don’t come across anymore chickens in a kitchen cabinet!

It Never Hurts to Ask!

I just got off the telephone with a couple that I’ve been helping to find THE house. We got to talkin’ and it came out they’ve had their eye on this one house for a long time but have never mentioned it cuz’ they were afraid it would cost too much. That might be the case, then again it might not. But as long as they continued to look but not ask, one thing’s for certain- they’ll never know which it might be… too much or just right?!

So, bottom line…

IT NEVER HURTS TO ASK!

Heck, that’s why I’m here. In case you didn’t realize it, I work for you! So, listen up, cuz’ here’s how I go about helping you find THE house.

#1 I listen to what you would like in a perfect world.

#2 Next, I figure out what you’ve got to work with- the good, the bad, and even the ugly.

#3 Then I figure out how to deliver what you want, or at least as close as is humanly possible. (Now, to be sure, I don’t have a magic wand, but my previous clients will tell you that I work harder to make great things happen for you.)

So, if you see a house you really like but are afraid the down payment will be too much or that the monthly payments will be out of your budget- call me direct at 317-625-0655. Let’s talk. Maybe between the two of us we can figure out how to make this happen for you. There’s no cost for that effort, and no hassle either. And if we do figure something’ out— well, you just might get the home you’ve been dreaming about!

‘Nuff said. Talk with you soon, Bob