Tag Archive for: my credit score

Credit Score Shock: Understanding Why it Takes a Hit

More often than not, businesses are using their own credit for business expenses, thus creating credit score shock. Whether it’s for fix and flip projects, paying contractors, or even a regular trip io Home Depot, it all takes a toll. By doing this, people are increasing their credit utilization rate to a concerning level. 


Usage is tricky and counterintuitive, because it is constantly testing willpower. Looking closer, usage makes up 30% of your overall credit score. Not making payments on time can push this rate up to 35% or more.


Personal credit cards are tracked by MyFico. Fico wants to see people at 20% or less of their available credit. We see a lot of people who have $50,000, $100,000, or sometimes even more in credit card debt. By continuing high usage habits or maxing out credit cards, it can create a hard hit against personal credit scores.

Debt Apples to Apples:

An example of this would be two individuals with similar jobs, income, and savings. Person A has $1,000 on a $1,500 limit card, and Person B has $1,000 on a $5,000 limit card. Both owe the same amount; however, Person A would take a harder hit because the credit utilization rate is much higher. Those who don’t owe very much could fix it quickly by simply increasing their credit limit through a different company. 

In Summary:

What’s happening to the people who are not used to the higher percentages? The feds are going to make it harder to get funding until they get it to the point where no one is spending money. 

Watch our latest video to find out more about credit score shock!

If you want to be in business and take advantage of the current market, give us a call. We can help you learn the ins and outs of what is affecting your credit score.

How Your Credit Score is Robbing You

Credit Score 101: How Your Credit Score is Robbing You

In this session of Credit Score 101, we’d like to introduce you to Sally Payday and Joe Robber.

Sally Payday is a wonderful guest. When she shows up on your front doorstep, she brings a smile, hug, and a bag of cash with her.

Joe Robber, on the other hand, doesn’t knock. He strolls right inside and steals money out of your wallet. Then takes it and runs!

So, who can you expect a visit from? Sally? Or Joe?

Well, it all depends on what credit score Mr. FICO gives you.

Mr. FICO can be a tough cookie, especially if you:

  • Forget to pay your bills
  • Overuse your credit cards
  • Or don’t use enough credit…meaning, you don’t have enough or any

Believe it or not, having debt can be a good thing. Because when you don’t have any, Mr. FICO doesn’t know you exist. Therefore, he can’t give you a credit score—or he can only give you a low one.

And if you have a low score, then, unfortunately, you can expect a visit from Joe Robber. Because a low score means you pay higher interest rates on your house, car, and other loans.

And if you’re paying higher rates, then Joe gets to take more of your money.

Which makes him a very happy man.

He loves stealing all the cash you could be using to save up for a dream vacation, a healthier lifestyle, or a more comfortable retirement.

Meanwhile, Sally Payday takes a different approach.

She doesn’t like to take money. She likes to make sure it stays in your bank account. But she can only visit people who have good credit scores. Because a good credit score means you pay cheaper rates.

And cheaper rates mean lower bills. Which means you can pay for your trip, gym membership, retirement, or anything else that would make your life better.

Sally Payday and Joe Robber are not one-time visitors. They show up on your doorstep every month.

And every month, Sally brings cash, and Joe steals it.

Which one would you rather welcome into your life?

Because it’s really your choice.

Everyone can have a good credit score. Even if you don’t have one now, it’s within your reach. You don’t need to keep letting Joe in the house. And Sally’s just standing there on the sidewalk, ready to present you with a bag of cash.

Want to find out how you can raise your score? Check out some of our other videos on our Youtube channel.

You can also join our live series How to Invest in Real Estate. Every Thursday at 11 AM MST, real estate expert, Mike Bonn answers all of your questions and shares expert tips on improving your credit score, investing in real estate, and building a comfortable retirement.

Happy investing!

My Credit Score...What's That About?

Money Chat: My Credit Score…What’s That About?

When you need a loan, do you ever think, “My credit score…What’s that about?”

Well, during our next Money Chat, Mike Bonn is going to answer all of your questions. He’s also going to share insider tips on how to raise your score so you can get the best loan possible.

My Credit Score...What's That About

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • Is this based on my credit?
  • Will you pull my credit?
  • How can I boost my credit score? 
  • What score do I need to get the best rates?

By the end of the Money Chat, you should have a much better grasp of how your credit score impacts your loan options…and, more importantly, your cash flow and profits.

When: Thursday, September 30th, 11 AM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Can’t make it? No problem. We run free Money Chats every week to make sure you have an opportunity to listen, learn, and ask all of your questions.

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Thursday.

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!