financing secrets of a millionaire real estate investor.pdf

52 FINANCING SECRETS OF A MILLIONAIRE REAL ESTATE INVESTOR
Your Credit Score
Much of the institutional loan industry is driven by credit. While
having spotless credit is not a necessity, it is certainly a good asset, if
used wisely.
Your credit history is maintained primarily by three large companies,
known as the credit bureaus: Equifax, TransUnion, and Experian
(formerly TRW). Your credit report has “headers” that contain
information about your addresses (every one they can find), phone
numbers (even the unlisted ones), employer, Social Security number,
aliases, and date of birth. This information is usually reported by banks
and credit card companies that report to the credit bureaus (be careful
about giving your unlisted address or phone number to your credit
card company—it may end up on your credit file). Some information
comes from public records, such as court filings and property records.
Your credit report also contains a history of nearly every charge
card, loan, or other extension of credit that you ever had. It will show
the type of loan (e.g., installment loan or revolving credit), the maximum
you can borrow on the account, a history of payments, and the
amount you currently owe. It will also show information from public
records, such as judgments, IRS liens, and bankruptcy filings. Some
debts are reported by collection agencies, such as unpaid phone, utility,
and cable TV bills. Your credit report will also show every company
that pulled your credit report within the past two years (called
an “inquiry”).
How long does information stay on my credit report In theory,
information stays on your credit report indefinitely. However, federal
law—the Fair Credit Reporting Act (FCRA)—requires that any negative
remarks be removed upon request after seven years (except for
bankruptcy filing, which may remain for ten years). If you don’t ask,
however, negative information won’t always go away.