http://LeahCoss.ca
Hi everyone. How are you? It is Leah Coss with The Mortgage Center. Wanted to answer the question that I do get a lot from people which is, "My credit is bad. I do not know why. I went to my bank. They told me it was a credit issue. They did not tell me anything more." Other people try to buy a car or get a credit card, or some people instinctively think, "Oh my credit is bad. I have missed a couple of payments." Then when I actually do pull their credit, sometimes there credit is not bad. They just figure "Oh I have been late on payments by five or six days a few months in a row, my credit must be bad."
Well, no, not the case. Credit can take 30 to 60 days to report so it might not catch you have been late. Other times people think that is everything is fine, meanwhile they do not realize that because one of there credit cards is at zero and another credit card is maxed out and the interest accrued and went over the balance, and now there credit is actually really bad.
You have to remember and I really try to emphasis just that credit report is a machine. It is a computer. It is not a human being who is looking at this and going, "What makes sense?" and "What should this person's score be?" It is a machine. It is a computer algorithm that is basically looking at the ratios, the numbers, and saying what makes sense to my computer mind and that is the score it spits out.
So it is when you say "What is my credit? Is this good or is this bad?" or "How can I fix it?" it is truly a situation by situation basis. If we think your credit might be bad then what is actually going to happen if you work with me is I am not actually going to pull your credit. I am going to get you to spend the $30.00 to $40.00 to go to Equifax CA or Transunion although Equifax I would pull first, and just see what your score is. And when you pull your own credit it is actually going to give you quite the breakdown of what is on there, why your score is what it is. Even if you do not understand why it is like it is, I might be able to look at your report, and I can tell you why it is that way, and more importantly, what we have to do to fix it if it needs fixing.
Some things on a credit report is just a matter of you do not have to do anything except move your balances around. Move money from one account to another and within 30 to 60 days, your credit is fine. Other times it is going to take time. If you have missed a lot of payments and that is simply your track record according to the credit bureau then that again is a ratio.
It may say in the last year they have missed X amount of payments therefore the ratio is 50% good, 50% bad. But if you have another year under your belt and you have done well for that year and now you are only at 25% bad as opposed to 50. So time is the only thing that can heal in that situation.
Same with bankruptcies. With bankruptcies, I have seen it get fixed in a year and a half. With the most part you are looking at two to three years to get your credit back on track. So, it is a situation to situation basis. If you think your credit is bad or you know your credit is bad, give me a call. I find it, you know, I wouldn't say a pleasure, I like to be useful.
I like to help you in that you show me what your credit report is when you pull it. I can let you know what needs to be done. Then every three to six months, I put you on my calendar and I follow up with you. I make sure that you are following whatever game plan it is we have laid out for you to fix your credit so that eventually after six months, 30 days, three years, whatever the game plan is for your specific situation, I follow up with you to make sure that it is in fact getting fixed and that you can once again or for the first time own a home of your own.
So, if you have any questions about credit, your specific situations, someone else's situation, or a hypothetical situation, give me a call. I am Leah Coss with The Mortgage Center, and I would be happy to answer a few questions you have or give you a quick analysis. Thanks so much.
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