Below is an article from the Texas A&M University Real Estate Center.
TEXAS (Real Estate Center) – Existing home sales in September were down from last year, according to newly released data from Texas Multiple Listing Services (MLS).
About 15,200 homes were sold in September, down 18 percent from September 2009. Meanwhile, the median price remained virtually the same at $147,700. There was a 7.9-month inventory of existing homes on the market.
Here are data for a few Texas cities (current as of Oct. 21, 2010). More data on these and other cities are available on our website.
Sales Change from Last Year Median Price Change from Last Year Months' Inventory
Abilene 124 down 3% $121,400 up 9% 6.5
Austin 1,393 down 28% $193,300 up 5% 6.8
Beaumont 124 down 15% $121,100 down 8% 11.7
Bryan-College Station 122 down 5% $149,300 down 2% 8.8
Dallas 3,066 down 24% $159,300 up 2% 7.2
Fort Worth 608 down 18% $109,200 down 3% 7.3
Houston 4,296 down 19% $154,400 no change 7.9
Kerrville 41 up 2% $190,000 up 27% 22.8
Longview-Marshall 173 down 7% $128,600 up 1% 9.1
Lufkin 36 down 22% $124,000 up 3% 9.3
McAllen 125 down 31% $102,300 down 2% 12.7
San Antonio 1,434 down 11% $149,400 up 2% 8.2
Texarkana 85 up 18% $123,800 up 27% 9
Victoria 71 up 15% $118,600 down 15% 8.2
Waco 136 down 25% $100,000 down 15% 8.7
Texas 15,199 down 18% $147,700 no change 7.9
Friday, October 22, 2010
Friday, September 3, 2010
Great Cities for Raising Families
Kiplinger's Magazine online just published their annual list of great cities for raising a family. College Station is in the top 10 this year based on job growth, quality education, local attractions/cultural events. Below is an except of their article with the Pros and Cons for living in College Station.
PROS: A top-ranked public school system, affordable housing and utilities, safe neighborhoods, solid wage and employment growth, it's about a two-hour drive from Houston, Dallas, or Austin.
CONS: Unvaryingly hot climate, limited local employment opportunities outside of Texas A&M.
See http://www.kiplingers.com/ for the list of all 10 Great Cities for Raising Families.
PROS: A top-ranked public school system, affordable housing and utilities, safe neighborhoods, solid wage and employment growth, it's about a two-hour drive from Houston, Dallas, or Austin.
CONS: Unvaryingly hot climate, limited local employment opportunities outside of Texas A&M.
See http://www.kiplingers.com/ for the list of all 10 Great Cities for Raising Families.
Friday, August 6, 2010
Homeowner's Insurance - Do you have the right coverage?
I just attended an insurance seminar and, wow, was it an eye-opener! I thought I was doing the right thing by checking the coverage amounts every few years, but now I need to go back and see if I even have the right coverage!
So here are a few highlights from the seminar and I'm happy to answer questions or refer you to someone who can if I don't know the answers.
There are three types of Homeowner's Insurance: HO-A, HO-B and HO-C policies.
HO-A is the most basic coverage and only covers what is actually listed on the binder. If it's not listed, you don't have it!
HO-B is broad coverage and is what most of us need. It covers a lot more than an HO-A policy and this is mostly likely the type of insurance you should have.
HO-C is very extensive and expensive coverage and most people don't have a need for this type of coverage.
If you own investment property or have purchased a second home, you need to let your insurance agent know to make sure you have the right coverage. In our market a lot of parents buy homes for their college students, but if the college student's name is not on the house the parents cannot carry homeowner's insurance but need to carry investment insurance instead.
Finally, living in a house that's out of the 100-year flood plain and built up fairly high, I have never considered flood insurance for my home. However, a recent statistic shows that over 60 percent of all homes that were flooded last year were in the 500-year flood plain where most owners don't carry coverage! As the flood maps are being redrawn, some areas are being put into 100-year flood zones that will now require homeowners to carry flood insurance. If you have a house in the 500 year flood plain and you carry flood insurance on it, if the maps are redrawn to a 100 year flood plain, you will be grandfathered in at your lower rate. It's something to think about!
So here are a few highlights from the seminar and I'm happy to answer questions or refer you to someone who can if I don't know the answers.
There are three types of Homeowner's Insurance: HO-A, HO-B and HO-C policies.
HO-A is the most basic coverage and only covers what is actually listed on the binder. If it's not listed, you don't have it!
HO-B is broad coverage and is what most of us need. It covers a lot more than an HO-A policy and this is mostly likely the type of insurance you should have.
HO-C is very extensive and expensive coverage and most people don't have a need for this type of coverage.
If you own investment property or have purchased a second home, you need to let your insurance agent know to make sure you have the right coverage. In our market a lot of parents buy homes for their college students, but if the college student's name is not on the house the parents cannot carry homeowner's insurance but need to carry investment insurance instead.
Finally, living in a house that's out of the 100-year flood plain and built up fairly high, I have never considered flood insurance for my home. However, a recent statistic shows that over 60 percent of all homes that were flooded last year were in the 500-year flood plain where most owners don't carry coverage! As the flood maps are being redrawn, some areas are being put into 100-year flood zones that will now require homeowners to carry flood insurance. If you have a house in the 500 year flood plain and you carry flood insurance on it, if the maps are redrawn to a 100 year flood plain, you will be grandfathered in at your lower rate. It's something to think about!
Tuesday, July 27, 2010
How do I get rid of PMI?
This is a question I get a lot from clients a few years after they purchase their homes. PMI is Private Mortgage Insurance (sometimes called MIP) - it's a monthly fee charged by your lender if you don't put 20 percent down when you buy your house.
On a personal residence you can request to remove the PMI after you have 20 percent equity in your home. That can come from paying down the loan, or it can happen because the market value of your home has risen and you now have equity based on the new value of your home. Usually it's a combination of both. If you think you have 20 percent equity in your home, you can make a written request to your lender. They will probably require you to pay for an appraisal (about $350) to verify the current market value before they remove the PMI. You also have to have a history of on-time payments or they can deny your request.
This is a great way to save money every month and once your lender eliminates the PMI they can't put it back on your loan again - even if the market value falls in the future.
On a personal residence you can request to remove the PMI after you have 20 percent equity in your home. That can come from paying down the loan, or it can happen because the market value of your home has risen and you now have equity based on the new value of your home. Usually it's a combination of both. If you think you have 20 percent equity in your home, you can make a written request to your lender. They will probably require you to pay for an appraisal (about $350) to verify the current market value before they remove the PMI. You also have to have a history of on-time payments or they can deny your request.
This is a great way to save money every month and once your lender eliminates the PMI they can't put it back on your loan again - even if the market value falls in the future.
Thursday, June 24, 2010
Hurricane Season is here - are you prepared?
I found this article on HouseLogic, a site sponsored by the National Association of Realtors. Luckily we haven't had any major natural disasters in Bryan/College Station, but when disasters happen that are beyond your control, you can take charge of how you respond.
“What became clear in Hurricane Katrina is that in big events, the government isn’t going to come to your aid right away. You have to be prepared to take care of yourself,” says Rick Bissell, PhD, a professor of emergency health services at the University of Maryland, Baltimore. According to a 2008 FEMA survey, more than half of all U.S. households have some sort of disaster preparation in place. If yours isn’t one of them, here’s what you need to do.
First, make sure important papers are in order
If a flood destroys your home, you could spend weeks or even months just trying to re-create the essential documents you’ll need to get back on track. That’s why it’s critical to have backups of important papers, including the deed to your house, proof of insurance, medical records, passports, social security cards, and a list of personal contacts. Keep one copy at home in a portable case and another offsite in a safe place. And while you’re at it, use the opportunity to check whether your insurance is up to date. “People often don’t know what their homeowners’ insurance policy covers, and most don’t cover flooding,” points out Bissell. Find out what hazards your area faces, and make sure you’re protected against them.
Tailor a preparedness kit to your personal needs
Humanitarian organizations and government aid agencies offer guidelines for creating an emergency preparedness kit. But along with the basics like food and water, it’s important to have what you need for your particular situation. You may not need extra blankets in southern California, but you do need escape ladders in case of wildfire. And you’ll want extra extra blankets to survive a winter power outage in Maine.
Think about what you need for the safety of your house, too. Knowing where to find the main electrical and water shutoffs—and having the right wrench to turn them—can make the difference between a house that weathers the storm and one that experiences catastrophic flooding or fire.
A basic emergency preparedness kit
FEMA recommends you keep a “grab and go” bag with these items in case you need to evacuate:
Water: One gallon per person per day for at least three days, for drinking and sanitation; double if you live in a very hot climate, have young kids, or are nursing. Bottled water is best, but you can also store tap water in food-grade containers or two-liter soda bottles that have been sanitized. Factor in your pet’s water needs, too.
Food: At least a three-day supply of nonperishables and a can opener. Pack protein, fruit, and vegetables, but make sure they’re in a form you actually like—it’s bad enough not to have access to fresh food without also having to subsist on nothing but canned tuna. Include treats like cereal bars, trail mix, and Tootsie Rolls. Store food in pest-proof plastic or metal tubs and keep it in a cool, dry place.
Flashlights and extra batteries: “Candles are not recommended because there are many house fires caused by candles left unattended,” says David Riedman, a public affairs officer with FEMA.
First-aid supplies: Two pairs of sterile gloves, adhesive bandages and sterile dressings, soap or other cleanser, antibiotic towelettes and ointment, burn ointment, eye wash, thermometer, scissors, tweezers, petroleum jelly, aspirin or non-aspirin pain reliever, and stomach analgesics such as Tums, Pepto-Bismol, and a laxative. (All those Tootsie Rolls can be hard to digest.)
Sanitation and hygiene supplies: Moist towelettes, paper towels, toilet paper, garbage bags, and plastic ties. You might also want travel-size shampoo, toothpaste/toothbrush, and deodorant.
Radio or TV: Keep a portable, battery- or crank-operated radio or television and extra batteries to remain connected in case the power goes out, as well as an extra cell phone charger. You can buy a good emergency radio online from the Red Cross.
Plastic sheeting, duct tape, and dust masks: In case you need to seal your home or shelter from airborne contaminants.
Extra items: A whistle to signal for help, a favorite toy or other comfort items for kids.
Cash.
Update your kit as your needs change, and replace food and water approaching its expiration date. You might pick a specific time each year to check, such as before hurricane season in the south or after Thanksgiving if you live in the north.
Wendy Paris is a New York-based writer whose work has appeared in This Old House magazine and other publications. She keeps chocolate chips on hand in case of emergency.
“What became clear in Hurricane Katrina is that in big events, the government isn’t going to come to your aid right away. You have to be prepared to take care of yourself,” says Rick Bissell, PhD, a professor of emergency health services at the University of Maryland, Baltimore. According to a 2008 FEMA survey, more than half of all U.S. households have some sort of disaster preparation in place. If yours isn’t one of them, here’s what you need to do.
First, make sure important papers are in order
If a flood destroys your home, you could spend weeks or even months just trying to re-create the essential documents you’ll need to get back on track. That’s why it’s critical to have backups of important papers, including the deed to your house, proof of insurance, medical records, passports, social security cards, and a list of personal contacts. Keep one copy at home in a portable case and another offsite in a safe place. And while you’re at it, use the opportunity to check whether your insurance is up to date. “People often don’t know what their homeowners’ insurance policy covers, and most don’t cover flooding,” points out Bissell. Find out what hazards your area faces, and make sure you’re protected against them.
Tailor a preparedness kit to your personal needs
Humanitarian organizations and government aid agencies offer guidelines for creating an emergency preparedness kit. But along with the basics like food and water, it’s important to have what you need for your particular situation. You may not need extra blankets in southern California, but you do need escape ladders in case of wildfire. And you’ll want extra extra blankets to survive a winter power outage in Maine.
Think about what you need for the safety of your house, too. Knowing where to find the main electrical and water shutoffs—and having the right wrench to turn them—can make the difference between a house that weathers the storm and one that experiences catastrophic flooding or fire.
A basic emergency preparedness kit
FEMA recommends you keep a “grab and go” bag with these items in case you need to evacuate:
Water: One gallon per person per day for at least three days, for drinking and sanitation; double if you live in a very hot climate, have young kids, or are nursing. Bottled water is best, but you can also store tap water in food-grade containers or two-liter soda bottles that have been sanitized. Factor in your pet’s water needs, too.
Food: At least a three-day supply of nonperishables and a can opener. Pack protein, fruit, and vegetables, but make sure they’re in a form you actually like—it’s bad enough not to have access to fresh food without also having to subsist on nothing but canned tuna. Include treats like cereal bars, trail mix, and Tootsie Rolls. Store food in pest-proof plastic or metal tubs and keep it in a cool, dry place.
Flashlights and extra batteries: “Candles are not recommended because there are many house fires caused by candles left unattended,” says David Riedman, a public affairs officer with FEMA.
First-aid supplies: Two pairs of sterile gloves, adhesive bandages and sterile dressings, soap or other cleanser, antibiotic towelettes and ointment, burn ointment, eye wash, thermometer, scissors, tweezers, petroleum jelly, aspirin or non-aspirin pain reliever, and stomach analgesics such as Tums, Pepto-Bismol, and a laxative. (All those Tootsie Rolls can be hard to digest.)
Sanitation and hygiene supplies: Moist towelettes, paper towels, toilet paper, garbage bags, and plastic ties. You might also want travel-size shampoo, toothpaste/toothbrush, and deodorant.
Radio or TV: Keep a portable, battery- or crank-operated radio or television and extra batteries to remain connected in case the power goes out, as well as an extra cell phone charger. You can buy a good emergency radio online from the Red Cross.
Plastic sheeting, duct tape, and dust masks: In case you need to seal your home or shelter from airborne contaminants.
Extra items: A whistle to signal for help, a favorite toy or other comfort items for kids.
Cash.
Update your kit as your needs change, and replace food and water approaching its expiration date. You might pick a specific time each year to check, such as before hurricane season in the south or after Thanksgiving if you live in the north.
Wendy Paris is a New York-based writer whose work has appeared in This Old House magazine and other publications. She keeps chocolate chips on hand in case of emergency.
Monday, April 5, 2010
Time for an Insurance Check Up
For most of us, insurance is something we get when we buy a new house or car and then we never think about it again unless we file a claim.
As your life and financial situation changes, your insurance should change too. Consider the following insurance situations and then call your agent for an annual check up.
Homeowner's Insurance
If construction costs have gone up significantly in your area or if you have added costly upgrades over the years, your repalcement value coverage may not be keeping pace with actual costs. Insurance companies have charts with relacement costs in your area and they are generally very accurate, but if you have a lot of custom features in your home you definitely need to make sure the insurance company is aware of them. You might think not telling them will save you money now, but it could mean settling for a home with far fewer amenities if your house is completely destroyed.
Don't forget to check your contents coverage too. You may have much nicer furniture, clothes, jewelry, art, etc than you had when you were first starting out.
You may also want to consider a higher deductible. You may have chosen a lower deductible when you were first starting out, but if you are more financially stable now a higher deductible could save you hundreds of dollars a year.
If you don't have your car insurance with the same carrier, you may want to change to qualify for a multi-line discount.
As your life and financial situation changes, your insurance should change too. Consider the following insurance situations and then call your agent for an annual check up.
Homeowner's Insurance
If construction costs have gone up significantly in your area or if you have added costly upgrades over the years, your repalcement value coverage may not be keeping pace with actual costs. Insurance companies have charts with relacement costs in your area and they are generally very accurate, but if you have a lot of custom features in your home you definitely need to make sure the insurance company is aware of them. You might think not telling them will save you money now, but it could mean settling for a home with far fewer amenities if your house is completely destroyed.
Don't forget to check your contents coverage too. You may have much nicer furniture, clothes, jewelry, art, etc than you had when you were first starting out.
You may also want to consider a higher deductible. You may have chosen a lower deductible when you were first starting out, but if you are more financially stable now a higher deductible could save you hundreds of dollars a year.
If you don't have your car insurance with the same carrier, you may want to change to qualify for a multi-line discount.
Friday, March 5, 2010
Five Ways to Pick a Neighborhood
One of the best ways to narrow your search is to drive around - a lot! You'll see lots of different neighborhoods and can compare your initial impressions as you drive through. Once you think you're intersted in an area the following tips might help you decide if this is really where you want to live.
1. Go at different times of the day, night and weekend. Are there multiple cars in the driveways and in the street? This might mean there are a lot of renters in the area. Lots of people walking at night? You probably don't have to worry about safety as much. You can also guage neighborhood friendliness by people who wave as you drive by and neighbors out talking to each other. If you don't want to be around small children, check out a neighborhood on a sunny Saturday to see if they're out playing.
2. Check out the amenities. If there's a neighborhood park or swimming pool there might be homeowner's association fees to pay for them. This isn't a bad thing, but something to be aware of when budgeting. If you frequently walk or bike, are there sidewalks or trails available?
3. Drive to work or school or church or the grocery store. Check out the commute during the times you'll be driving to and from work or other routes you drive frequently.
4. Check out the police reports. You can call your local police department to get statistics on police calls to a neighborhood or website addresses for local sex offender registration.
5. How are real estate sales in the area? A call to your Realtor can help you determine if homes have historically resold well in that area. A lot of signs doesn't necessarily mean there's a problem with the neighborhood. In Bryan/College Station, we have a very definite selling season, so we see a lot of signs in every neighborhood. We also have neighbohoods that people buy in because they know they can sell when it's time.
1. Go at different times of the day, night and weekend. Are there multiple cars in the driveways and in the street? This might mean there are a lot of renters in the area. Lots of people walking at night? You probably don't have to worry about safety as much. You can also guage neighborhood friendliness by people who wave as you drive by and neighbors out talking to each other. If you don't want to be around small children, check out a neighborhood on a sunny Saturday to see if they're out playing.
2. Check out the amenities. If there's a neighborhood park or swimming pool there might be homeowner's association fees to pay for them. This isn't a bad thing, but something to be aware of when budgeting. If you frequently walk or bike, are there sidewalks or trails available?
3. Drive to work or school or church or the grocery store. Check out the commute during the times you'll be driving to and from work or other routes you drive frequently.
4. Check out the police reports. You can call your local police department to get statistics on police calls to a neighborhood or website addresses for local sex offender registration.
5. How are real estate sales in the area? A call to your Realtor can help you determine if homes have historically resold well in that area. A lot of signs doesn't necessarily mean there's a problem with the neighborhood. In Bryan/College Station, we have a very definite selling season, so we see a lot of signs in every neighborhood. We also have neighbohoods that people buy in because they know they can sell when it's time.
Tuesday, February 23, 2010
How do I Compare Lenders?
The best way to compare lenders is to ask for a Good Faith Estimate or a closing summary. Because of recent changes in lender rules, often they are reluctant to do a Good Faith Estimate until they've run your credit and you've found a house.
However, you can still compare closing costs between lenders. There are three main sections to the Good Faith Estimate or Closing Summary: the closing costs, the interest rate & loan term, and the monthly payment. Be sure to give all of the lenders the same estimated sales price or it could get confusing trying to figure out what's different between lenders and what's different because of the loan amount!
The closing costs are what you want to compare - particularly the lender fees. All of the other fees on the estimate will be actual expenses. The lenders may estimate them at slightly different rates, but ultimately you pay what the vendor charges. The lender fees, however, are what the lender makes on the loan and these can vary wildly. In the Bryan/College Station market, we generally see lender fees total about $600-1200 (if you're being quoted something higer, you need to shop around). The combination of these fees are usually the application fee, processing fee, funding fee, underwriting fee, etc. These are the fees that you can use, in combination with the interest rate, to see which lender is the best deal.
One last word of caution - internet lenders often show few or no lender fees. This isn't always true and you absolutely want a Good Faith Estimate because now lenders are required by federal regulation to be within a certain percentage of the estimate - so you won't have any big surprises at closing.
As a buyer's representative, I recommend local lenders who have historically been competitive in their fees and interest rates. I can also help buyers compare closing summaries from multiple lenders.
However, you can still compare closing costs between lenders. There are three main sections to the Good Faith Estimate or Closing Summary: the closing costs, the interest rate & loan term, and the monthly payment. Be sure to give all of the lenders the same estimated sales price or it could get confusing trying to figure out what's different between lenders and what's different because of the loan amount!
The closing costs are what you want to compare - particularly the lender fees. All of the other fees on the estimate will be actual expenses. The lenders may estimate them at slightly different rates, but ultimately you pay what the vendor charges. The lender fees, however, are what the lender makes on the loan and these can vary wildly. In the Bryan/College Station market, we generally see lender fees total about $600-1200 (if you're being quoted something higer, you need to shop around). The combination of these fees are usually the application fee, processing fee, funding fee, underwriting fee, etc. These are the fees that you can use, in combination with the interest rate, to see which lender is the best deal.
One last word of caution - internet lenders often show few or no lender fees. This isn't always true and you absolutely want a Good Faith Estimate because now lenders are required by federal regulation to be within a certain percentage of the estimate - so you won't have any big surprises at closing.
As a buyer's representative, I recommend local lenders who have historically been competitive in their fees and interest rates. I can also help buyers compare closing summaries from multiple lenders.
Sunday, February 14, 2010
How Do I Raise My Credit Score?
Every creditor you have an account with probably reports your payment history and outstanding balances every month to each of the three credit reporting agencies. This makes it easy to see results quickly – good or bad – when dealing with your credit.
The fastest way to improve your credit is to pay down credit card balances. If you are paying an extra $100 a month on your house or car payment, but have a large credit card balance, stop paying the extra on the house and get that credit card paid down! Chances are the house or car loan have lower interest rates. They’re also considered safer lines of credit than an unsecured credit card. Go to http://www.about.com/ and type in managing debt or managing credit card debt and read some great articles about credit scores and debt.
Credit scoring agencies have a variety of formulas to increase or lower your score, but high debt to available credit ratios are one of the fastest ways to drop your score.
Your past two years of payment history are the most important, so start paying on time NOW and in 24 months your score will rise significantly, even if you still have outstanding balances.
Finally, raising your credit score involves work – don’t try to pay someone to “fix” your credit. If there’s a true mistake, you can fix it yourself for free. It’s work to monitor it, it’s work to be sure you pay on time and it’s work to be responsible with your credit. But you’ll see results when it comes time to make your next big purchase and you get a super interest rate because of your high credit score!
The fastest way to improve your credit is to pay down credit card balances. If you are paying an extra $100 a month on your house or car payment, but have a large credit card balance, stop paying the extra on the house and get that credit card paid down! Chances are the house or car loan have lower interest rates. They’re also considered safer lines of credit than an unsecured credit card. Go to http://www.about.com/ and type in managing debt or managing credit card debt and read some great articles about credit scores and debt.
Credit scoring agencies have a variety of formulas to increase or lower your score, but high debt to available credit ratios are one of the fastest ways to drop your score.
Your past two years of payment history are the most important, so start paying on time NOW and in 24 months your score will rise significantly, even if you still have outstanding balances.
Finally, raising your credit score involves work – don’t try to pay someone to “fix” your credit. If there’s a true mistake, you can fix it yourself for free. It’s work to monitor it, it’s work to be sure you pay on time and it’s work to be responsible with your credit. But you’ll see results when it comes time to make your next big purchase and you get a super interest rate because of your high credit score!
Thursday, February 4, 2010
Free Credit Reports that really are free!
If you go to the right place, you are allowed to receive one free credit report per year from each of the three major reporting agencies. The problem is there are a lot of advertisements that say they offer free credit reports, but you really have to sign up for credit monitoring services or some other fee-based subscription. The government actually passed some very consumer-friendly legislation a few years ago that does get you a free - really, truly free - credit report. Go to http://www.annualcreditreport.com/ to get your copy.
All three credit reporting agencies are supposed to share their information. If that's really working the way it should, you should be able to pull one credit report from one agency and have a pretty good idea if you have any issues. You can pull all three reports at once, but then you don't get another freebie for a year. I would recommend pulling one report from each agency every four months - they're all free as long as you only pull from one agency per year. This allows you to monitor your credit throughout the year for free. If you see a mistake on one report you'll have to go to some effort to get it fixed but then each agency is supposed to share your information with each other.
For example, if TransUnion says you have an outstanding balance on a card that you paid and closed out last year, you can get a letter from the credit card company, send it to TransUnion with an explanation of the mistake and they should correct their report and forward your information to the other reporting agencies (this takes a while, usually 30-90 days once they verify your information). To be really safe, I'd send the information to all three agencies, but technically you shouldn't have to.
You won't get your credit score with this free report - it does cost a nominal fee - about $6 per report the last time I checked. You may not need it if you are just monitoring your accounts, what the balances are and whether or not they are being reported as paid on time. You won't hurt your credit pulling the report yourself, but there are issues with having multiple vendors pull your report, so be cautious when someone says they'll pull your credit for you. The exception is when shopping for a mortgage - you can have several loan officers pull reports and if they're all within a two week timeframe it should not afffect your credit score.
Stay tuned next time for things you can do to raise your credit score.
All three credit reporting agencies are supposed to share their information. If that's really working the way it should, you should be able to pull one credit report from one agency and have a pretty good idea if you have any issues. You can pull all three reports at once, but then you don't get another freebie for a year. I would recommend pulling one report from each agency every four months - they're all free as long as you only pull from one agency per year. This allows you to monitor your credit throughout the year for free. If you see a mistake on one report you'll have to go to some effort to get it fixed but then each agency is supposed to share your information with each other.
For example, if TransUnion says you have an outstanding balance on a card that you paid and closed out last year, you can get a letter from the credit card company, send it to TransUnion with an explanation of the mistake and they should correct their report and forward your information to the other reporting agencies (this takes a while, usually 30-90 days once they verify your information). To be really safe, I'd send the information to all three agencies, but technically you shouldn't have to.
You won't get your credit score with this free report - it does cost a nominal fee - about $6 per report the last time I checked. You may not need it if you are just monitoring your accounts, what the balances are and whether or not they are being reported as paid on time. You won't hurt your credit pulling the report yourself, but there are issues with having multiple vendors pull your report, so be cautious when someone says they'll pull your credit for you. The exception is when shopping for a mortgage - you can have several loan officers pull reports and if they're all within a two week timeframe it should not afffect your credit score.
Stay tuned next time for things you can do to raise your credit score.
Subscribe to:
Posts (Atom)
