Paying debts doesn’t always help your credit score

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It is generally accepted that if you pay off your debts, your credit score will go up. This is believed because it makes sense logically. If you pay off a debt, you owe less and you are more able to handle your other obligations. However, there are some instances where paying a debt actually hurts your credit score. Here’s why. When you have a collection account or a judgment on your credit report, the impact it has on your score is directly related to the age of that account. Unfortunately, when there is any activity on those types of accounts, they are treated as if…
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Is Credit Important When Getting a Hard Money Loan?

Posted by & filed under Hard Money Tips.

You might think that because hard money loans have traditionally been equity based, no one should or would care about credit. While this is true sometimes, there are instances where credit does play a part in underwriting a hard money loan. For example, if there are two borrowers applying for similar loans and one of them has good credit while the other has bad credit, it is not uncommon for the one with good credit to get a slightly better interest rate and to get approved more quickly. Really, it depends on the investor who is going to provide the money for the loan. Some…
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