Profile

Cover photo
Tracy Becker
Worked at North Shore Advisory, Inc
1,143 followers|322,835 views
AboutPostsPhotosYouTube

Stream

Tracy Becker

Shared publicly  - 
 
How Credit Scores Can Make a Big Difference with Mortgages

As you probably know, having a good credit score can open the door to all sorts of opportunities, like the ability to finance everything from a car to your own business. One of the biggest ways healthy credit makes a difference is through mortgages. Having solid credit can allow people to purchase their dream home and get a better rate that could translate into hundreds of thousands of dollars in savings. 

Almost every mortgage bank will asses a borrower’s likelihood to repay a loan through their FICO score. The best rates for mortgages go to people with scores of at least 760. As your score goes down rates will go up, and eventually mortgages get outright denied if scores fail to meet a certain threshold depending on the loan. 

Here’s a hypothetical example that shows credit’s impact: 

Let’s say you have great credit and want to apply for a mortgage. According to FICO, with scores of 760 or better, the average interest rate is 3.56%. So if you applied for a $600,000 30-year fixed-rate mortgage your monthly payment would be $2,714. 

However, if your credit score was 100 points lower, the average interest rate would be 4.18%. At this point your monthly payment would jump up to $2,927. Compared to before, you would now end up paying $2,556 more per year, or over $75,000 more over 30 years. 

Even worse, if your score was in the low 600’s the average interest rate would be 5.15%. Compared to someone with a 760+ score, you would end up paying $203,400 more over the life of the loan! 

However, there’s no need to panic if you don’t know about your credit. The first key to good credit is understanding how it works. 

Here are the five factors that impact scores: 

• Payment history: It is factored by how timely you pay your bills, whether you have any past bills due/bills in collection, or if you’ve declared bankruptcy. 

• Credit utilization: It is factored by the balances you’re carrying on your credit cards compared to the limit on those cards. To have the best scores, you should be using less than 10% of the total and individual limits on your credit. 

• Length of credit history: It is based on the average age of the credit you have open. 

• New Credit: This reflects the number of credit card and other loan accounts you've opened, as well as any inquiries made about your credit recently. Having many hard inquires (or pulls on your credit score by others) can lower your score. 

• Types of Credit Used: This takes into account the different types of credit on your file. Having a variety of types of credit can sometimes help boost your score. 

You should also read my other articles on credit to get a better understanding of it (see them here:https://www.linkedin.com/today/author/36444445). Then you can take moves to correct your score. It’s a very good idea to speak with a reputable credit restoration company to assist with boosting your score. Using the right company can help you navigate the credit maze and see results in 20-50 days. 
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
Credit Scores Can Make a Big Difference with Mortgages

As you probably know, having a good credit score can open the door to all sorts of opportunities, like the ability to finance everything from a car to your own business. One of the biggest ways healthy credit makes a difference is through mortgages. Having solid credit can allow people to purchase their dream home and get a better rate that could translate into hundreds of thousands of dollars in savings. 

Almost every mortgage bank will asses a borrower’s likelihood to repay a loan through their FICO score. The best rates for mortgages go to people with scores of at least 760. As your score goes down rates will go up, and eventually mortgages get outright denied if scores fail to meet a certain threshold depending on the loan. 

Here’s a hypothetical example that shows credit’s impact: 

Let’s say you have great credit and want to apply for a mortgage. According to FICO, with scores of 760 or better, the average interest rate is 3.56%. So if you applied for a $600,000 30-year fixed-rate mortgage your monthly payment would be $2,714. 

However, if your credit score was 100 points lower, the average interest rate would be 4.18%. At this point your monthly payment would jump up to $2,927. Compared to before, you would now end up paying $2,556 more per year, or over $75,000 more over 30 years. 

Even worse, if your score was in the low 600’s the average interest rate would be 5.15%. Compared to someone with a 760+ score, you would end up paying $203,400 more over the life of the loan! 

However, there’s no need to panic if you don’t know about your credit. The first key to good credit is understanding how it works. 

Here are the five factors that impact scores: 

• Payment history: It is factored by how timely you pay your bills, whether you have any past bills due/bills in collection, or if you’ve declared bankruptcy. 

• Credit utilization: It is factored by the balances you’re carrying on your credit cards compared to the limit on those cards. To have the best scores, you should be using less than 10% of the total and individual limits on your credit. 

• Length of credit history: It is based on the average age of the credit you have open. 

• New Credit: This reflects the number of credit card and other loan accounts you've opened, as well as any inquiries made about your credit recently. Having many hard inquires (or pulls on your credit score by others) can lower your score. 

• Types of Credit Used: This takes into account the different types of credit on your file. Having a variety of types of credit can sometimes help boost your score. 

You should also read my other articles on credit to get a better understanding of it (see them here: https://www.linkedin.com/today/author/36444445). Then you can take moves to correct your score. It’s a very good idea to speak with a reputable credit restoration company to assist with boosting your score. Using the right company can help you navigate the credit maze and see results in 20-50 days. 
1
1
harbinder panesar's profile photo
Add a comment...

Tracy Becker

Shared publicly  - 
 
Acquiring Funding for Business Owners Will Become Much Easier through the SBA

As you probably know, getting funding for a business can be a huge struggle. Everyday thousands of business owners drastically search for term loans, equipment financing, lines of credit, real estate loans, and other financing. Unfortunately, according to some industry estimates around 80 percent of small business loans are rejected, and many avoid business loans altogether because of how difficult it can be to get an appointment with a loan officer. 

However, there is good news for those owners with solid business credit. The Small Business Administration (SBA) just rolled out a new plan that will make it much easier for business owners to get funding. The plan, dubbed LINC (Leveraging Information and Networks to access Capital) will “help entrepreneurs get a date with a lender” according to the SBA. The plan uses an online platform to match creditworthy borrowers with lenders online, similar to what is being done with mortgage loans already.

It works through a simple online form, where borrowers answer 20 questions based on the info lenders need before getting a loan pitch. The form is then sent out to participating SBA lenders both locally and nationally. A match will put business owners and lenders on the fast track to completing a loan, and an SBA advisor can help if there isn’t an immediate match. There are also reputable credit experts including my company that business owners can reach out to if their business credit profile is not strong enough.

There are already participating banks in all 50 states, and they have made over $17 billion in loans since 2009. In addition, the SBA is rolling out a second phase of the plan to include even more lenders and loan products.  

For business owners, this shows just how important business creditworthiness is becoming for acquiring funding. Those who have solid credit should expect to see many more options and windows of opportunity when funding their business.
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
Important Credit Score Update   

When ordering their credit scores online from myfico.com , consumers will now also receive mortgage, auto, and credit card score versions as well.
FICO is ramping up to gain an edge in the increasingly competitive credit score industry. In the last few years consumers have become more aware of the varied credit scores offered online by credit score sites that are trying for a share of FICO’s market. There are now many sites offering free credit scores/credit monitoring, and FICO is losing a hefty chunk of business with their $60 pricing for 3-bureau FICO scores. 
Besides the increased competition, FICO has other reasons to offer more, including increased pressure from the Consumer Financial Protection Bureau, and many consumers realizing that the original FICO version offered to consumers is not the same as the version used by mortgage lenders.
So what does this mean for consumers?
Right now if consumers purchase a "FICO score 3-Report" it will come with up to ten other score versions.  The ones we have focused on in this tip are the FICO 8 score (the score offered normally), the FICO mortgage score, auto loan FICO scores, as well as bankcard scores.  To date, they are only offering Experian and Equifax FICO scores for the added models but FICO is working on getting the Trans Union scores into their system as well.  
For example, we pulled credit today and here were the variations in scores:
● FICO 8 = 850
● FICO mortgage =805
● FICO 8 auto = 888 
● FICO 8 bankcard = 887 
Here are the ranges for these versions:
● Auto and bankcard versions= range from 250-900 
● FICO 8 consumer and mortgage scores= range from 300-850
Please contact us with any questions!
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
Can Loan Shopping Affect Credit Scores?

Getting an auto, education, or mortgage loan can be a huge source of frustration and confusion. There is a wealth of information about how to get the best rates and pricing, and with this comes lots of misinformation as well. One huge misconception that pops up frequently is that credit inquiries from loans generally do not have an effect on credit scores, which implies that third party inquiries won’t impact pricing, or approvals on loans. FICO itself has stated that multiple loan inquires “have little impact on a credit score”, and The New York Times recently came out with an article stating “Borrowers need not avoid shopping around for the best mortgage deal out of fear that allowing multiple lenders to “pull,” or check, their credit will chip away at their score.” (You can see it here: http://www.nytimes.com/2015/02/01/realestate/mortgage-shopping-and-credit-scores.html?smid=nytcore-iphone-share&smprod=nytcore-iphone&_r=0)

Unfortunately, this advice could be very far from the truth for many. Unlike soft inquires (which are self credit checks or promotional offers), any authorized credit checks by a third party can cause score damage. Although this damage may be “minimal”, any points lost on credit scores are a huge deal when applying for a mortgage or other loan depending on the current score and threshold needed for approval and best pricing. And since every credit report is different, if you lose points on categories like age of credit and payments history, then additionally for inquires you may end up with a much lower score than needed.

For example, someone applying for a mortgage needing a 740 plus for approval or best pricing can be in a very bad position. If they hold a 742 Fico score they could lose just 3 points due to hard inquiries from loan applications, and wind up with a 739 score. This could cause them to get a higher rate on a mortgage, and cost hundreds of thousands of dollars over the life of their loan. The original 742 score could also be just above the threshold for loan approval, causing them to lose out on their dream home altogether. Also, at some score thresholds banks offer better mortgage products that could be lost out on.

So what should you do when trying to get a loan? Find out from a banker what score threshold is needed for approval and best pricing. Once the initial credit report is pulled by the banker if the score is close to the threshold refrain from having other third party inquiries until you are ready for mortgage application. It is also a good idea to call a credit expert that works with bankers to get score increases for mortgage approval. You want to make sure you are working with a credit expert that is viewing credit from the perspective of mortgage approvals and pricing. It’s always a good idea to speak with a credit expert if you are unsure if something will count as an inquiry or damage your score.
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
Check out my latest press in @NerdWallet"Credit Scores Can Make or Break Your Business":
By Tracy Becker Learn more about Tracy on NerdWallet’s Ask an Advisor Recently, there has been a huge increase in the focus on credit scores for consumers. The Internet and news…
3
2
reiclub's profile photoSharen Torain's profile photo
Add a comment...
Have her in circles
1,143 people
erry oktobianto's profile photo
Steven J. Scarfo's profile photo
Sal Schibell's profile photo
Jack Halpern's profile photo
Fredericksburg Realty LLC's profile photo
Richard Nappi's profile photo
Bob Friedenthal's profile photo
B.J. Brownlee's profile photo
Hanna Riff's profile photo

Tracy Becker

Shared publicly  - 
 
Credit Score Myths and Misconceptions
 
There is now a huge wealth of information available about credit scores, especially online. Unfortunately with this flood of information there are many misconceptions and myths about credit being spread. Not everyone is qualified or knowledgeable to speak about credit and these “facts” are causing lots of damage.

Here are some of the most popular and damaging misconceptions about credit:

● Fewer credit cards are better for credit.

This is incorrect. In my 25 years of experience the highest credit scores I have seen are on credit that reflects many credit cards and varied types of active old credit. If you think about it logically it makes sense. If you were a lender who would you rather lend money to an experienced borrower or someone whose experience is limited?

For example:

A borrower with one credit card and a car loan could be a much higher risk than someone with 8 accounts. If five of the accounts were regular credit cards, 2 store cards, a car loan, a mortgage, and a student loan, as long as the individual with the 8 accounts has old average age of credit, a great payment history, and low balances on credit cards they clearly have had great practice in managing many accounts well and would be far more comfortable taking on another account. Of course they must have the appropriate income to cover making payments on the new loan or credit.

● Checking your credit will reduce your credit scores.

If an individual checks their own credit it will not impact their scores AT ALL! They could run their own reports 40 times in a day and nothing would change on their scores. These credit pulls are called "soft inquiries".

I will be discussing more credit myths in my next post, so stay tuned!
 
 
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
What many fail to realize is that although you may choose to use a business credit card for only business expenses, it will likely affect your personal credit score if the business is in your name, if the card issuer checked your personal credit during the application process, or if you signed a personal guarantee to get the card.Using personal credit for a business loan or credit line is common if you run a small business or a start-up — as oppo...
1
Add a comment...

Tracy Becker

Shared publicly  - 
 
Personal credit reports and scores are a hot topic these days and there is a wealth of information available online to help educate consumers on how they work, their significance, and regulations pertaining to them. When a bank rejects a consumer for a mortgage the law requires the bank give an ...
2
1
Nick Matos's profile photo
Add a comment...

Tracy Becker

Shared publicly  - 
 
Warning: Credit Scores Are Not Enough to Detect Identity Theft

Recently, the White House issued a press release praising banks who are giving away free FICO and VantageScore credit scores to customers. Of course, more access to credit scores is a good thing, and banks should be encouraged to do so. Unfortunately, in a release meant to help consumers, the White House also made a suggestion that could harm them greatly.

In their praise of free credit scores, the White House suggested that they are "one of the best early indicators of identity theft", and this couldn’t be further from the truth. While consumers should be checking their scores frequently, it’s not something that can definitely detect ID theft or fraud before it occurs.

Here are just some instances where ID theft/fraud won’t have a noticeable impact on credit scores:

• A new fraudulent address being used.

Criminals frequently apply for credit using a victim’s info under false addresses. While the new address would show up on a credit report, it would have zero impact on credit scores.

• Fraudulent inquiries on a credit score not offered for free by banks.

What banks don’t tell you about free credit scores is that they usually only give you scores from one of the three bureaus. If a criminal applies for credit in your name, there will be a hard inquiry by the lender, which should lower a credit score and raise some red flags. However, this inquiry could show up on Experian, while the bank could be providing you with an Equifax score (which wouldn’t change at all).

• Even fraudulent inquiries on a free credit score being provided by the bank are hard to notice.

Even if an inquiry occurs on a credit score your bank is giving away, or if you happen to have checked all three scores, the effect of a hard inquiry could be pretty negligible. Hard inquiries can lower scores differently for each unique credit profile. For some it could be many points and others it may not lower at all which may not point to identity theft.

• Late payments due to fraudulent activity.

When criminals start making fraudulent charges and don’t pay, this could actually do some serious damage to your scores. Unfortunately, it will already be too late when this damage shows up. At best, a creditor will report a late payment 60 days after the fraudulent account is opened. But typically, late payments will take months for you to notice and to show up on a score.

So what should you do?

While credit scores given for free aren’t a good indicator of identity theft, a good credit monitoring product will tell you when any of the above changes happen on all three credit reports and scores, along with others that could indicate criminal activity. Some even include credit blocking (which prevents any inquiries without approval) or fraud alerts (which require approval for any new credit being opened). Please see my post on credit monitoring for more info on its benefits: http://goo.gl/0HSTs9
2
Add a comment...

Tracy Becker

Shared publicly  - 
 
What Are Credit Inquiries & Do They Actually Affect a Credit Score and Pricing on a Mortgage?

There is always confusion about credit scores and inquiries among professionals in the banking industry, realtors, consumers, and even professionals in credit related industries.

So what exactly are credit inquiries?  Credit inquiries are simply when a credit report is viewed.  There are two types of credit reviews.  There are "Hard Inquiries" (third party credit reviews) and "Soft Inquiries" (when an individual views their own credit or when a third party extends a promotional offer).  Only "Hard Inquiries" (HI’s) can drop scores.

Even though inquiries may seem simple, there are misconceptions about how they impact credit scores & what that impact can have on a loan. A big source of the confusion is that FICO and other credit experts often state the minimal impact inquiries have on credit scores.  What they do not address is how that minimal drop can impact qualification and pricing on a mortgage or other loans.

To make matters worse, in the past FICO has stated that inquiries can drop scores 2-5 points each, then they changed it to up to 5 points, and now they have this explanation:  

“My FICO score will drop if I apply for new credit?
If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called “inquiries”) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.”

Based on FICO’s definition, most people would assume that hard inquiries won’t cause much of an issue. However, they can be the source of higher pricing on a mortgage, or even complete denial of a mortgage approval. My next post will go into more detail about how inquiries can affect credit, so stay tuned!
1
1
Jan Bell's profile photo
Add a comment...
People
Have her in circles
1,143 people
erry oktobianto's profile photo
Steven J. Scarfo's profile photo
Sal Schibell's profile photo
Jack Halpern's profile photo
Fredericksburg Realty LLC's profile photo
Richard Nappi's profile photo
Bob Friedenthal's profile photo
B.J. Brownlee's profile photo
Hanna Riff's profile photo
Work
Occupation
Owner and founder of North Shore Advisory Services, Inc. Study, analyze, decipher personal & business credit and scoring systems. Share knowledge with professionals about scoring systems and credit to provide them with cutting edge information for their clients. Have and continue to increase/improve credit scores dramatically (40-280 points) for consumers & companies to help them save in interest on loans, lines, leases, etc. Lead clients to present themselves in the most attractive light to lenders and creditors for varied types of financial products.
Skills
Credit, Leadership, Public Speaking, Mortgage Lending, Negotiation, Social media, Loans, Customer Service, Management, Sales, Credit Analysis, Strategy, Fiance, Credit Scoring, Problem Solving, Team Leadership, Sales, and more
Employment
  • North Shore Advisory, Inc
    President & CEO
Contact Information
Work
Email
Address
tarrytown ny
Story
Tagline
Tracy Becker, Fico Pro
Introduction
For almost 25 years, I have owned and operated a Credit Education and Restoration Company. With an intense desire to help individuals/businesses reach their credit goals I have developed and cultivated an impeccable reputation and level of success. My company is known in the banking, real estate, accounting, & financial industry for our boutique style credit repair services which are second to none. Our credit improvement process has manifested results in as little as 20-40 days with increases as much as 40-150 points. With close to 25 years of credit expertise and experience in business, rest assured that with our programs clients will be getting the services of an expert staff committed to working towards their credit goals. We will use our vast experience to tailor a strategy which will offer the best possibility of producing results. North Shore Advisory, Inc. does not outsource personal information to third parties or offer any type of financing as many companies do. And because we stand by our record of excellence, we don't bill for personal credit repair for simply trying. We only bill for items we improve or remove. That's our guarantee.

I enjoy Public Speaking across the country where I educate bankers, CPA's, realtor's, financial planners, and all kinds of professionals, helping them find solutions to credit problems. I am a Certified Fico Professional and trained as a Credit Expert Witness with expertise in personal and business credit. I have published two books most recently, "Credit Score Power". I am also consistently interviewed for both national Television & major news publications where I regularly write/contribute. I am “The Credit Coach” for “Eye on Real Estate” a popular WOR710 AM radio show as well as the credit coach for Douglas Elliman.

Contact me: tracy@northshoreadvisory.com
And listen to me twice per month on the "Eye on Real Estate" radio show with host Dottie Herman CEO and President of Douglas Elliman: http://lnkd.in/wFT_Jh
Basic Information
Gender
Female
Other names
@tracybecker