Today Victoria and Jeff was joined by Author, Motivator, Divine Inspirational Speaker, Dr. CJ Koen. Today’s scripture is: “For I know the plans I have for you, “declares the LORD,” plans to prosper you, and not to harm you, plans to give you hope and a future.” Jeremiah 29:11 (NIV)
We had a blessed wonderful time today with Ms CJ Koen on BlogTalkRadio, Below are a few nuggets from today’s show.
Prosperity is not your economic situation but your heart situation.
God wants us to prosper.
God does not give us spirit of fear, but of power, love , and of sound mind. 2 Timothy 1:7
God knows what is coming down the road.
When God gives you something he gives you peace with it. (Psalm 29:11)
God knows what is best for us. People want to buy a home, but may not be financially, or emotionally ready to purchase that home.
Seek God’s wisdom before making major decisions.
God wants us to have plenty of joy.
Money is not evil. The LOVE of money is evil. (1 Timothy 6:10) Listen to how Ms CJ breaks down the truth.
Click here to download today’s show and get all of the golden nuggets from today’s show.
For more information about Ms. CJ Koen visit her on the web at mscjandyou. Follow her on twitter @mscjandyou. Join her on facebook, Listen to Ms CJ Koen on BlogTalkRadio, Her show is uplifting and inspirational.
I know you are wondering how in the heck can paying off an account lower my credit score. Yes, I know it sounds backwards that by trying to do the right thing you get penalized. Here is he scoop. I have long taught that 35% of your credit score is past delinquencies. Obviously, paying your accounts in full and on time has the greatest positive impact on your score. So why would paying a collection potentially lower your score?
Here’s why, the last 24 months of activity has the greatest impact on your score. The newer the item the more impact it has. The credit scoring model uses the date of last activity to determine when the 24 month countdown starts. (Note: accounts older than 24 months still have an impact on your credit score). If you have an older collection that has not had any activity on it and you make a payment, you have restarted the clock because you have moved the date of last activity.
Many times collection agencies will try to contact you in order to have you make a payment so that they can keep the account on your credit bureau longer. Per the Fair Credit Reporting Act, collections can stay on your report up to 7 years plus 180 days from the date of last activity. Do not fall for it!
I am not suggesting that you not pay your debts. I am letting you know that there is a strategic way to handle past collections. Here are 3 simple steps:
Begin with accounts reporting in the last 12 months.
Before you pay anything, write to the credit bureaus and request validation of the debt. Validation is not verification. Federal law specifies what is considered validation. See Fair Debt Collection Practices Act for more information.
If debt comes back verified, contact the collection company and negotiate for a lower payment. We suggest that you ask for a pay for delete. A pay for delete is a request that the collection company deletes the entry from your credit report when payment is received. Pay for deletes are becoming increasingly more difficult to get. But, a paid collection is better than an unpaid one.
If you are applying or going to apply for a home, we suggest you wait until you are instructed by your lender to pay off ANY collections. If your lender tells you pay off a particular account, then they have prepared for the impact it may have on your credit score.
There is nothing anyone can do for you that you can not do for yourself when it comes to your credit. However, if you want guidance and education about credit please contact us at info@intcredit.net.
Past delinquencies make up 35% of your credit score. Obviously paying your bills in full and on time will have the greatest positive affect on your credit score. The credit scoring model looks at the level of delinquency. For example a judgment will have a greater negative impact on your score than a collection. Always try to avoid public records such as bankruptcy, tax liens, and judgments.
Also, activity in the last 24 months has the greatest affect on your score. When looking a credit repair strategies concentrate on activity in the last 24 months first. Pay off collections in Escrow NOT before. By paying an old collection you will make it new again because the date of last activity will change.
If you would like to learn more about credit scoring and how past delinquencies affect your credit score, please contact us at info@intcredit.net.
There is a lot of misinformation out there about what a credit score really is. Simply put – a credit score is a 3 digit number that seeks to quantify how likely a borrower is going to be 90 days late on a payment. Why 90 days? At 90 days, lenders spend more to maintain the account. Calls increase, increased notices go out, the lender may turn the file over to another department or collection company.
Each score is specific to each bureau. The score is generated by analyzing the information in the consumer’s credit report at THAT particular point in time. The higher the score the less the odds of default. For instance statistically, a consumer with a credit score of 800 and above has a 1292 t0 1 chance of becoming 90 days late while a consumer with a credit score between 620 to 659 has a 38 to 1 chance of being 90 days late.
Your credit score is more important than ever. When it comes to credit what you do not know can cost you big. Stay tuned for more Credit 101.
