You know you need a Good credit score, but why? This is a great question requiring a complex answer.
Here at Rebuild Repair Credit we want to give you as much information as possible.
Taking the bullet just to bring you too much information
Too much information for our own good. We are about to take the bullet for you, so be all ears here.
Because this will be a very informative read, one to share with your friends and family for sure.
This will be our most in-depth and deep post yet, as we bust out some major scams many fall prey to.
Since this is such and in depth article, we strongly recommend you Click here to bookmark our site.
Contact before attack, that is not too much to ask.
Very powerful companies use these tactics daily.
We are sure they will not appreciate outing their scams.
If this offends the “Powers that be” too much we hope they contact us and not attack us first for it.
That being said we put our clients first, above all, even if it means making powerful enemies.
Here we will discuss several ways to save money, and give great credit advice on how to turn bad or poor credit around. Because by the end you will see pitfalls to avoid, and how to keep your good credit score.
Good Credit Score, is it Important? Main Topics
The topics covered today are in response to some great client questions and life situations.
They are contain many helpful tips and some great credit advice about Credit Cards, about Car Loans, and a brief word about house loans.
We will also cover much more with key information from an interview with our credit expert.
We will give examples of how these situations can greatly affect people. Especially considering their credit score. If you have a good credit score you should be ok. But if you have a bad credit score beware!
We strive to keep you as well informed as possible, because you should understand knowledge is power.
Brief about new credit and credit cards
We have some sound credit advice for you. If you are new to credit stay away from bad credit card offers.
Here is some credit advice you should hear from many places but probably won’t.
Want some great credit advice? Many early credit user credit cards are predatory lending cards.
Next we will describe what you should look out for. Also, what to do regarding credit cards.
New credit should beware before accepting credit card invitations or applying for cards.
Ok you just got your credit fixed and you have a Good credit score.
Should you take the first tempting credit card offer you get? Definitely not!
You need a good credit score first.
So when you have new credit you have to be very careful.
Often with early credit, even if you have a Good credit score it is easy to find a terrible credit card.
Many cards have scary outrageous interest rates, crazy annual fees, and worse.
You also don’t want to ever take a credit card above 23% interest ever according to our lead credit expert.
Interest rates that high will lead to trouble very fast. Charge them up too high and all the sudden BAM!
Outrageous interest charges hit you so fast it will make your head spin! Tiptoe in this area for sure.
A 23% interest card, why would you ever want to do that?
Our credit expert has an old first interest rate card at 23% interest.
He is currently paying it down like the plague, because it is!
If your interest rate is too high they know you likely won’t be able to pay down the balance, it’s a trap.
Our credit expert has archived his 23% card soon knowing those are good for nobody long for sure.
He wanted to let everyone else know not to worry though.
He has ‘several’ other credit cards as well. From our view of his cards he’s not joking, over 20 for sure.
Over 20 credit cards? How many cards should I use?
Although he has many credit cards he only advises using one.
Also he recommends only borrowing what you are able to pay back quickly.
In our interview for this article he revealed several more industry secrets.
He said after using the 23% card responsibly he was able to get a higher limit, and better rates later.
Currently he has no less than 5, 0% balance transfer cards. But wait? He’s paying the 23% interest rate?
We asked, “Why pay such a high interest rate if you can easily avoid it with better 0% interest cards?”
He explained while it is a high rate, he likes the card because they were one of the first ones to trust him and raise his limit high. They also took his side almost immediately in a past $3,700 fraud investigation.
So there are advantages to high interest cards at first, but you will soon outgrow them.
That is if you are using credit correctly and keep your good credit score.
Outgrow a high interest card, and get a good credit score
However, that is only if you are managing them correctly. The time-frame for a high interest card is about two years of good to great use and pay off. If you haven’t outgrown it by then you have done something wrong. So from there you should evaluate what was done wrong and correct it promptly.
Most people will tell you to never max out your cards. We do not find this to be always the best option.
While this is true for most, if you have the means to repay the debt quickly if needed, it can be acceptable on a short term basis. Like most things that build your credit it will, in the short term sabotage your score.
What is the ideal credit card use percentage? How much can I use without harming my score?
Count on a credit score drop if you go over 9%, scores drop faster and even more if you go over 29%.
A maxed out card can ruin your Good credit score very quickly, pay them down fast!
But if you pay it off timely and promptly your creditors see you are responsible. They reward responsibility with credit line increases. More rope to hang yourself for many.
If your priorities are not in order you can easily overspend on wants. Avoid this credit pitfall for sure.
Do not use more credit than you can repay instantly or quickly.
One of the keys to maintaining great credit and a good credit score is not using more credit than you can promptly repay. For some a high debt load is motivating. Do you think all those super nice mansions are paid for? We bet you anything many, even most are not.
For others that same high debt load is financial ruin. Many nice mansions are going back to banks daily. Be very careful to pay everyone promptly or your home could join them and be sold to someone else!
Credit card limits are only limited by responsibility and income
Our credit advice expert’s card limits are only limited by how little he keeps.
As far as income after all the charity work. Soon he will have very high credit card limits in spite.
Mostly based on his long 100% on time payment history. Have we mentioned how important that is?
Pay 100% of your payments on time, every time. Pay it down fast.
Use credit, but only what you can afford to repay. This is a great way to build your credit.
There are many traps along the way. If you intentionally wreck your credit don’t expect any fast fix.
This can even be considered fraud so be more honest and trustworthy than that.
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Brief on Rent to Own
There are far more traps for bad and poor credit customers. Be sure to avoid them to climb the credit ladder. If you have a good credit score you are less likely to have these problems.
Ever see something that just makes you really mad. You know like when you see a scam that many others do not see? This was the case the other day for certain. All this just from checking the mail one nice day.
Got a flyer in the mail the other day for a bad scam you should watch out for.
It was another one of these rent to own places. These are traps for bad and poor credit customers.
Rent to own stuff sounds great! Why not? If you have a good credit score you know better.
Ok so what is the deal with rent to own
This flyer really offended me when reading the fine print. So we can get a 10″ tablet for only $9.99?
What a great deal! This is what we are supposed to think. Reading deeper we see that $9.99 is actually per week. What? That is outrageous! Insulting to us at the least as well. Scams fresh to your mailbox.
Hold on a second. The logic side of our brain now hurts. So how much is this thing total after all these payments? A quick check revealed several nice tablets available for under $100 total. Ok here is what offended us so badly. The fine print in this ad, had a $100 tablet, after all payments for a total over $550!
So you do not have a Good credit score you are paying over $450 more for the same item!
See how expensive bad and poor credit are? Save your money never use these places!
Here is another category that really upsets all of us at Rebuild Repair Credit. Our lead credit expert is raging mad about this one. He is normally happy and seemingly carefree. We just had to interview him to get his opinions on the topic for our clarity.
Instantaneous Car Credit
He said to be very careful when getting car loans. They are a trap if you have anything but great credit. Like with a home loan, in a car loan often a Good credit score is not enough. In this interview he revealed that most car loans are actually predatory lending. We were shocked to find out that was his opinion! “Why would you say something like that?” we asked. He said that the reason he was so mad is that many of his friends and family used those get anyone credit car lots.
High mileage plus high price?
Not only were many of the cars very high mileage but they were high priced as well. “Wow!” We said, “So they really get people twice then?” Nope, he replied, it gets deeper than that.
This high mileage, over priced car is then loaned to the customer at insane interest rates as well. The goal of these scam lots is the same as with houses: sell you too much car, inflate the loan cost, inflate the loan payments. “Wow, but why all that?” we asked.
“Because in the end, most people don’t own those cars. It is a very profitable industry.” After missing one or two payments they are quickly reposed. They get them back, and sell them all over again.
A popular TV show has referenced this concept. The general idea is: Hit them over the head, “Now we have the X and the money!” Insert X as whatever was dangled in front of you to get your money.
Don’t be a horse running after a fake rabbit. If you take payments on it, own it do not lose it.
Real Car Loans
If you have at least a good credit score you should qualify for a good car loan.
A real and non predatory car loan will be from a real car dealer.
Usually a big name brand, and often the vehicle maker themselves. The interest rate will be acceptable, and neither the payments, nor the price will not be excessive. These require a good credit score.
You should be able to get low or no money down as well. Read all the fine print for sure, but these are good signs of a good loan. Do not forget that you will have to pay more expensive full coverage insurance, and check those rates.
Also, be sure to negotiate a free or very low cost powertrain warranty for the life of the loan. What use are all those payments you made, and are still making if the engine or transmission take a bigger dump than an elephant before you are done paying it off? None. Avoid that scam for sure as well.
Avoid a Large Car Loan with a Short Warranty
Here is another scam to avoid, large car loan, short warranty, vehicle lemons out just as designed just outside warranty term. We have seen many things lemon out, even as soon as day after warranty.
Our credit expert, calm as a kitten after a bowl of warm milk as typical, was irate mad about this question. “What do we tell them about title loans? Many want to know if they are a good or bad idea.”
“Look” he said with an angry expression on his face. “Again too many of my friends and family have been taken by that scam.”
“Scam?” We said in response. “Their offices seem so busy almost always. Sounds like a good idea to many. You put your vehicle title up for a fast loan. But there are major drawbacks.
Title Loans? What a great idea for a scam!
Ready? Here is the thinking involved:
Give credit to those we know can not pay us back. Give them interest rates so high it is impossible.
They do not read the fine print. The loan gets bigger and bigger despite many payments well over the initial loan.
But I just missed one payment. Wait! Where is my car?!
Miss one payment and many contracts say they may impound and keep your vehicle!
Even in as short as 24 hours. BAM! Now we have the car and the money!
Just to add insult to injury they report and ruin your good credit score as well.
Avoid these scams at all costs if you like your vehicle. You likely will not keep it long.
What should I do now? Rent or get a House Loan?
Many people have asked us and our credit expert if they should rent or get a home loan.
Unfortunately, most of the people who ask us our current answer is rent.
That is until you have a good credit score at least. Without a good credit score you are almost certainly doomed to failure. Rental is the best idea unless you have peak credit. Many are unaware of this.
Here is yet another huge scam and trap we want you to beware of. We promise to give you so much information here that we will likely be silenced. The internet has become more and more censored.
Be sure to share this with everyone quickly because we are not sure how long we can keep so much critical information online without unintentionally creating powerful enemies. Ok so this is going to upset some people a good deal some more we are sure but here goes.
Renting while a great idea as landlord,
is often a terrible idea for the tenant.
But wait, did you or did you not just say that renting is your usual answer?
Yes, we said most people who contact us are better off renting until they improve their credit situation. You want to rent until you at least have a Good credit score.
This does not mean, by any means, that renting is the ideal situation.
Landlords stand to make a great deal of profit if things go well for them. They also have a lot to lose if things go south. Because of this a good credit score at a minimum is ideal for renting as well.
So you have got bad credit, big deal, you can still rent right? Depends on where you want to live.
Ideally, if your credit is bad or poor you will rent. But, there is a catch. Recently if your credit is too bad many places will no longer rent to you! You will be forced to live only places that people do not want to live. Woah, wait what? That is right, do not ever forget that your credit is a measure of your trust.
Scary situation for both landlords and tenants
Honestly, it is sad but true if a bank would not loan you the money to buy the place you should not even live there. This is how landlords feel: If your credit is that poor you are not taking care of your basic responsibilities. Why would you take care of and not destroy their place if you don’t even have a good credit score? Be honest, pay your bills, rebuild and repair your credit. This is how you do it people.
So you are stuck renting for a bit.
This is a good time to regroup and clean your wounds. From here after paying all your bills on time, you will polish your credit. Do it like your life depends on it. Because if your credit it bad or poor a better life depends on Good credit score or great credit. Simply put great credit unlocks doors you need, wide open.
After showing your responsibility with credit building it up from scratch for a year or two you will be ready. At this point you should have a good credit score.
Be sure to give it at least a year, ideally two or three.
Be sure you can handle the added expense of a house.
Remember, if you own a house you are responsible for a lot more than when renting.
This is quite serious and can be a large burden if you are not very careful again.
When your furnace, A/C, hot water heater, washer, dryer, plumbing, roof, yard, driveway, sidewalk, etc have a problem who do you call? If you are renting it is likely your landlord. If you own, these are just the start.
Predatory lending in home buying
If you are not very careful, and you do not follow our steps you could find financial ruin fast!
It can be very easy to fall prey to a predatory home loan. Always read the fine print!
Ok so here’s more information that will likely offend people to the point of making powerful enemies.
Hope you guys are ready, we almost already regret putting information this powerful out there knowing.
Here we go throwing ourselves into the lion’s den again.
Because otherwise you may get eaten alive.
Lucky for you guys we are shooting ourselves in the foot to bring this to you.
We promise to bring you the raw uncut truth. If it makes you, them, or anyone else mad or squirm maybe they, and not us are the ones doing wrong.
Our just goals and values we hope will protect us.
We only want to help our readers to be able to better their lives.
So on that note, without any further delay here is the information you need.
Be sure to share with everyone!
Upon interviewing our lead credit expert we found we made him raging mad another time.
You don’t know him like we do but our credit expert is normally very reserved, kind, and happy.
The outrage over this seemed personal, yet again.
We said, “The people want home loans, what do we tell them?”
His response was “Avoid them, unless…”
But you just told us owning a home was generally a sound financial idea.
Why would you tell them to avoid most home loans?
“Because many home loans are predatory” he replied.
Here it is again folks, same scam with a new area.
“Now we got the X and the money.”
Except this time the X is your house.
Scary concept for sure, living thinking you are ok then next thing you know hit over the head.
Life seemed fine until you were homeless.
The lead in to this scam has several routes, they usually start with ok, poor, or bad credit.
“Ok credit is bad?” we asked him confused.
“Yes, as far as a home loan goes, ok credit is a very bad start.”
He said a good credit score of no less than 700 should be a considered the minimum for home credit.
The Mortgage Collapse and Crisis
“So what happens when you get a home loan with credit below good then?” we asked for our clients.
“You very likely will not keep that home. Look at the recent mortgage crisis. How was this created?”
(In our notes was plenty to write on from there so we left him to continue to help others personally.)
Oh, we thought, how did we not see that. He is totally right. The recent collapse was created by such things.
See they lend to people that they should not lend to anyway. Good for you it seems because you are qualified.
Let us now paint a dark and scary picture for you, one that many experienced.
This makes us very sad to report this happened to many people.
Looks at first great you get into that dream house you wanted, and the payments are just affordable.
You put up that white picket fence, add some paint and other finishing touches, it is your house.
So at this point you start to feel comfortable and you spend more on your credit card than you should.
Our horror story begins with a ‘tiny’ mistake.
Just a tiny mistake you think, I will pay it back soon, it is no problem.
Ah, but all too soon, they add up.
See you have made much bigger mistakes already and do not even realize it at all.
You max out a second credit card building a deck, and remodeling the kitchen.
But the house looks great.
However, as far as credit is concerned your good credit score has tanked to the floor.
Does not seem important to you at this time though.
When things go Really Bad.
Things seem ok, until lets say ..now.
Ok so now here is the point where what you did not know not only hurts you but far worse.
What you do not know is about to make you homeless.
“But how” you may ask. I was doing so well in my bubble.
I even had a good credit score. How can this possibly go wrong?
We are not the ones who will pop your bubble, not here.
But here are a couple scenarios of how it begins:
The Consolidation Loan
Realizing your credit card payments are too much to handle you seek a consolidation loan.
While this seems like a great idea at the time it could end up being the best or worst idea you ever had.
How could that go bad? Someone wants to pay their debts, and gets a loan to make sure they can.
Just because you can get a loan does not mean that you should by any means.
The loan you should not have gotten.
You get this loan anyway, but your credit is too poor to qualify. You failed to read the fine print again.
The loan borrows against what you paid into your house, and your house.
But it is a special ‘do not read the fine print’ type of loan.
Feeling freed by empty credit cards you make one of your last errors running them up again.
After the elephant poops on your fan.
There’s a big mess, and your fan is broken.
Now it hits the fan. Are you ready for what happens next?
Many people are not and become homeless.
Your loans you got, that you did not have enough credit to get?
You really should have read that fine print.
The house loan you signed got you that affordable payment you have been paying years now right?
This is a special, evil, and nasty type of loan. It is called the balloon loan. Good credit score killer.
Let us break this down for all to see because our credit expert and staff agree this is a scam.
Your affordable payment you were making no problem all the sudden doubles itself. Wait a minute!
Now instead of an affordable payment you have a tight noose!
Before you can do anything your credit cards max, it tightens even more.
Think with that tanked out score anyone will refinance you out of this predatory mortgage? No!
The low down dirty facts of the balloon mortgage
Other possible ways this instead often works is at the end of a short loan you instantly owe the rest due.
This could even be many thousands of dollars, even more when applied to commercial real estate.
You cannot make your credit card payments just to try to make the insane high mortgage payment.
Your credit worsens from a Good credit score to total dirt, just as you desperately need a new mortgage.
That new mortgage you need to keep your house is very unlikely to happen at this point.
The noose cinches down when from missing sleep due to all the stress, you lose your job.
Now, the moment the people who gave you the loan were waiting for, you miss a payment.
They get excited, because they already have so much of your money, and they are about to keep it all.
Your contract said, miss one payment you have defaulted. If you default the bank owns your home.
Now they have the house and the money. You are homeless with little notice and have to start over.
Going down faster than…
The other way this goes is an insane high interest rate to start on your home loan.
So if you want a mortgage that goes down faster than the corner streetwalker here it is.
Our credit expert says not to pay more than 5% on a home and no more than 9% on a car.
Many balloon loans seemed like low interest rates, and may have been, at first.
But on many when payments double, so does the interest.
This is a secondary trap, just in case the first one failed.
Never ever take any loan when your credit score is low
Do not take a loan when your credit score is low, you are almost certain to default.
Say you are doing your best again and put the cards into the consolidation loan.
Again, you did not qualify for the loan, but got it anyway.
This loan may be far more evil than your home loan.
The reason it is evil is that it borrows against your home, just to try to steal it from you.
Because of your low score interest rates are not better than your cards, they may be even worse.
This creates a big problem, now you have to lean on those cards again to get by.
Cards max out, you have anything but a Good credit score, and they demand high monthly payments.
The bubble, and balloon burst in a really bad way…
Your consolidation loan was a balloon loan, and now it just doubled its required payments.
You can not make the credit card payments and your score drops faster than the Titanic.
Here on you make the mortgage payment, and pay for basics like pc items without thinking about it first.
You miss the consolidation loan, thinking it was not a big deal to miss one payment.
BAM! Hit over the head. Fine print said miss one payment we own your home.
They got you, you are homeless. Your ok to good credit score is now a terrible credit score.
But what home loan should I actually take?
We are almost done telling you what to avoid. Sorry to prolong information on what loan to take but we want to make it crystal clear what piles of poo to not step in. Last pile on the list is the variable interest rate mortgage and junk mortgages as well.
Avoid, at all costs, a variable interest rate mortgage.
You need to know what your rate is, and have it locked.
A locked in interest rate is much safer.
Life has enough variables, your mortgage rate should not be one of them.
A good home loan, that you want to take and not run from has several features not to skip on.
We agree with our credit expert’s recommendation for a home loan. Good credit score as a minimum.
Begin with a minimum good credit score of 700, ideally a great credit score of 750+.
Here is a great example of a non-predatory home loan.
Only get a mortgage that fits these criteria:
Fixed interest rate
Interest rate 5% or less
No balloon payment
No prepayment penalty
Loan transfer ok if transference has approved credit
Give these terms to your mortgage broker, meet or beat them.
If you can not get these terms or better our credit expert has some solid advice, “Run far and fast.”
He also gave us these photos to show a moderate home as well assures your repayment.
To conclude, we do not know about you but we think being homeless is a terrible problem.
It affects many people and the reasons above are why we do not judge anybody.
There are horrible scams that we are quite certain have made lots of mostly responsible people homeless and ruined their good credit score.
If you feel you were taken advantage of in any of the ways you have read above,
please contact us- we will help you.
These scams we see targeting the poor deeply anger us here at Rebuild Repair Credit.
Click here to bookmark our site.
A warning to avoid hardship
Also, please share this as a warning to others. You need a Good credit score to get by in life. Without one you are assured hardship, that is how their game is set.
We do not make the rules we just try to find them and learn how to play by them. Do your best to be honest, pay your bills on time or early, and never miss a housing payment.
We have faith that with our help you will be empowered to newfound responsibility.
Make sure you attain and maintain at the least a good credit score.
Do not forget to bookmark our site as we will be continuing to expand with new fresh content as fast as we can. “The powers that be” will try to silence our signal as much as possible, we rely on you to help spread the word. Help us save some people’s good credit scores.
Be sure to share immediately, we are much stronger together.
If you really despise these scams the way we do and want to help your friends and family, make sure they read this. It could very well save someone you love from a world of problems and heartache.
Wishing you a Good credit score at minimum! Thanks for reading we love you all! Don’t forget to Click here to bookmark our site.