Your financial history is including debt, loans, accounts, credit cards, collections, outstanding balances and more. If your credit is good it will be easier to obtain financing with good rates of interest and if it’s bad impact your ability to get loans and services.

When you apply for credit financial institutions and lenders look at two main factors:

* Credit report: a record of your transactions and financial accounts, loans, debt, cards, collections, payments, outstanding balances, personal information and credit applications. The bad financial history can remain on your credit report for seven years or more.

*Credit score: A number, usually between 300 and 850, used by financial institutions and lenders to predict your likelihood to repay loans on time. Your score low if you have too much debt or do not pay up on time and if you manage your money responsibly. A score above 700 is considered very good. A score below 600 represents a risk to the lender and can cause you to receive a higher interest rate or that your application be rejected. (more…)

You might have met someone who wanted to make money but did not want to try real estate investing. There are a lot of people who fear this business because of misconceptions about it. Even you probably are hesitating to venture into real estate because of these “fatal illusions” about the market. Here’s a short list of things about real estate investing that are merely illusions:

* Formal education is the key to success in this business. That is not correct. There are a lot of successful real estate investors who did not even finish high school. Having a college diploma is not a guarantee that you will make a fortune in real estate. What you need to do is help yourself to learn about the ins and outs of the industry. Hire a mentor. That will significantly cut your learning curve. A mentor is someone who not only knows what you should do, but also wants to see you succeed. You must read books and other educational materials. If you want to learn online, you can visit websites likes REIwired.com and watch informative videos. (more…)