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Do you know some of the dirty tricks banks use to bait and switch you into late payments and increased interest rates?

Do you use a Discover credit card? If you do you’d better check your due date closely because it has been reported that Discover has moved up all payment due dates unexpectedly.

Now this is shocking behavior for a bank that spent so much time telling consumer that they were a new kind of company that cared about their customers. Discover originally told members that they could pick their own due date to best meet their own pay check schedule.

Now they have quietly changed their mind and may have tricked many consumers into late payments and higher fees.

When questioned about the due date changes, Discover’s straightforward explanation was that, “The payment due date is now cycle date minus 5 days, however, our grace period remains one of the longest in the industry at 25 days.

Card members with all banks should now be aware and be on the lookout for this kind of behavior.

Because the most valuable personal asset you possess, your personal FICO credit score is coming under attack and is being damaged from many unseen sources.

What I mean is that because of the current economic crisis and because of impending changes to the country’s rules governing allowable credit cards interest rates many companies, banks and credit unions are closing credit cards, slashing limits and removing home equity credit lines.

And the consequence of having your credit card closed by the issuer is a damaging hit to your personal credit score.

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Everyone knows that I am a business credit guy, not a hard money guy. So that causes some confusion when I talk about Hard Money.

In fact, I have said openly that I never even used Hard Money until about two years ago. I always found business credit to be cheaper and easier to use to run my business and real estate mortgages were easy to use for investing.

I am still a big advocate for using the cheap business credit sources we have available in today’s tough market, but I have replaced the formally plentiful sub-prime real estate mortgages I use to get with Hard Money.

And I now tell people about BOTH these great sources of money.

Business Credit AND Hard Money!

There is a place in the world for both, but in my heart I am still a business credit lover first. And I keep finding more and more business credit sources for my students everyday.

But I still want to offer Hard Money recommendations to the folks that like Hard Money better.

Just like an ice cream shop offers more than one flavor. You can pick what you like, not just what happens to be MY favorite flavor.

This is truly the best time in history to start picking up real estate deals that will sell in a year for nice profits…

And we have some great new ways to get Hard Money in addition to the business credit sources I specialize in.

Any money is GOOD money, so look over my business partner George’s Hard Money Secrets course for yourself!

Go to the site: http://www.IHaveTheCash.com

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It used to be that a credit score of 680 was pretty good…but that’s not the case anymore, your credit needs to be better than every before in history to be treated fairly.

And even if your credit score is above 750 - you can’t have any kind of negative items reporting against you or excessive inquiries on your report.

If you credit score falls below 750 you are in the bottom 60% of the public and you will pay more for having poor credit.

Here’s a bit of a clarification on how your credit is scored. No one knows the exact secret recipe used by the major credit rating bureaus but this is a good representation of what effects your credit score.

I call this recipe the credit PIE.

Inquires will effect your credit. There are hard-hit inquires and soft-hit inquiries.

A hard-hit inquiry is not good. This is when a mortgage broker, car dealer, or bank pulls your credit — it only lowers your credit score a little bit each time, but most importantly, it leaves a clue to your recent borrowing activity.

A soft-hit inquiry is okay. This is when you pull your own credit. You can do this as much as you’d like and your credit will NOT drop.

Because It’s important to monitor your credit score and review the accounts reporting in your name.

The length of time you have used credit is also important. This is called your credit history. The longer your history of using credit the better. You should carefully teach young people how to use credit before they leave home if you want to help them build a good credit history as soon as possible.

The next ingredient in the credit pie is available credit.

When you add up the limits on all your personal credit cards, what is your total available credit. The more credit you have available the better your credit score will be.

That may surprise some people. But the more unused credit you have available to you the better your credit score is going to be.

The next issue is Debt.

How much of a balance do you carry on all your personal credit cards.

A single real estate mortgage or auto loan is not nearly as damaging to your over all credit score as large amounts of unsecured revolving debt carried on credit cards.

Real estate debt is long term debt that is collateralized by an asset so it does not have much of an impact on your credit score. Most of your attention should be focused on how much credit card debt you have.

In the past we used a simple scale to see how much credit card debt was to much.

If your amount owed was less than 30% of your credit limit it was a “green light” to new lenders; 30-60% debt was a yellow light and 60-90% debt on your personal credit cards was a red light.

In today’s much stricter credit markets any debt above 30% of your available credit is a red light. So you should focus on removing your credit card debt first.

The final issue that effects your credit more than any other in the credit pie is negative character marks on your credit.

And luckily this is the area you have the most control over with our credit clearing information.

You really can remove late payments, old student loans, medical bills, foreclosures and even BK if you use our tools and instructions.

Remember that credit clearing is your RIGHT as a consumer.

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YES
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Thanks to the new economic stimulus plan there really is a lot more grant money available. We have started using it ourselves!

Go to:  http://www.GrantsForSchoolOrBusiness.com

There is Billions of dollars of Uncle Sam’s Money available through the grants available on this site. And the site even offers grant writing software if you need it.

I would encourage you to hurry and start getting these grants while they are so easy to get. The economy really needs your help to take this money and put it to good use.

Go to:  http://www.GrantsForSchoolOrBusiness.com

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- Make a plan for what the money will be used for.

Consider following the 80/20 principal. Use 80% of the money and set aside 20% for reserve account.

One of the most important steps you should take when using a business line of credit is to set aside about 20% of the cash you draw out as a reserve. This reserve of money will be seasoned in a checking account so it helps the business build its reputation and so that some cash is always available to be used to repay the minimum monthly payments as they come due on the line of credit.

Many businesses run at break even or less in the first year, so you need to set aside some of the cash you pull out of a line of credit to make the payments if the businesses profits or cash flow does not provide enough.

This is called Seasoning money. The small interest expense you will pay on this unused money is well worth it.

It makes your business look good to other potential lenders and sets money aside for a rainy day.

Next, you could use some of this money to reduce your personal debt and improve your credit score.

Other profitable business uses include:

- buying advertising and marketing.
- purchasing goods to resell.
- lending it out at higher interest rates for a profit.
- build a website and drive multiple streams of income.
- invest in real estate for huge tax deductions from other income.
- you could even use this money to build a valuable corporate image.

- Paying back the line of credit - there are 7 smart ways to do that.

The best way to pay back the monthly payments on a line of credit is to use the money to make a profit in your business. But in start up business - this may not be possible for the first year.

So, if that’s the case for your business, you can draw money out of the reserves you have set aside to make your minimum monthly payments. These monthly payments on the average line of business credit run about 1% of the amount in use. So they tend to be very small.

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You can get money from our business lines of credit as soon as your business is approved by our lenders. That means that you must have a registered business before you can apply for these business lines of credit.

You can quickly file for any type of business with your state on the internet. And as soon as you have registered your business name you can start to apply for business credit.

Our lenders usually take about 21 days to approve you for these business lines of credit. So you can get money for your business about 21 days after you have applied.

2. Do I need a business that is 2 years old to get this business credit?

No - you do not need a 2 year old business to get credit if you use the lenders we work with and the system we have created.

You can get business lines of credit from our lenders even if you have a new business with no revenue or income. A brand new business will use our stated income application template to get this business credit.

You do not need to have what people call an aged corporation, shelf corporation or a seasoned corporation to get money from our business credit lenders. If you follow our instructions and use the lenders we recommend you can get business lines of credit with a brand new business.

If you already own a business that is several years old you can also get money from our lenders.

So if you currently have a registered business you can start to get our business lines of credit immediately. And if you do not have a business yet, you will simply register a business name with your state on the internet so that you can start applying for our business lines of credit.

3. How is it possible to get business credit if my business is new and has no revenue or income?

Not every lender will give a new business money. That’s why we have selected and recommend the 15 national lending programs fully described in our guide.

These lenders offer new businesses credit based on their stated income application process. The stated income application for business credit was created by the banking system as a way for new businesses to get start up money.

So you can use all of the 15 lending programs in our guide to get start up money ranging from $200,000 to $500,000.

When your business becomes profitable you will receive increases in each of these business lines of credit and our guide will recommend additional lending programs for your older business.
 

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