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MEETING MINUTES
 Friday, March 12, 2010
Volume 17; Issue 10

Member Spotlight
This week's spotlight is Mark Menasci.  Please keep this member top of mind this week for referrals.

Membership Update
Chris Craig of www.2GoTools.com visited our group today.  He talked about how the unique print company he manages.  They are revolutionizing the print industry.  They developed a software program that is free for clients to use.  It helps streamline the print ordering process and locates the best price for the end user.  He gets paid by the printers.

Don Ellis, Membership Chair, will follow-up with Roman Okonowski to see where we are on his proposed member.

Speaker Coordinator's Report - Erin LaGrassa
There are several things in the works.  Erin Jaicks is working on getting a nutritionist in to talk about health.  We will have a Question of the Day meeting as well as more small table topics.  Erin Peterson, an international and domestic freight expert, is also on schedule to speak.

Social Coordinator's Report - Janice Jaicks
Janice Jaicks is diligently researching happy hour locations!  We are going to try to push buddy lunches again.  We will do them in groups of three.  If you have someone you have a "personality conflict" with let us know before next Friday' live draw so you don't get paired with them.

Board Update
There will be a brief board meeting today after the regular meeting.

Leads & Introductions
Members introduced themselves and announced leads and thank you's.  In addition, for the benefit of our guest speaker, they mentioned the last time they pulled their credit report and if they knew their credit score.

Featured Program - Credit Reporting & Scoring with Shonnie Fischer, RE Credit Repair

The Credit Score - What is it and what does it mean?

  • A Credit Score is predicts the statistical chance of a consumer becoming 90 days or more delinquent on a loan obligation within the next 24 months.

  • Each score is specific for each bureau.

  • Scores range from 300-850 in the Classic FICO model.

  • The higher the credit score the less the odds for loan default become.

  • The credit score is generated by analyzing the information contained in the consumer's report at the specific time the report is requested.

Credit Score Components

  • 35% Past Delinquencies

  • 30% Revolving Debt Ration - If you don't have a credit card you are losing out on 30% of the scoring opportunity.  Picture perfect is 3-5 cards, show activity but don't carry a balance.  It hurts you because it doesn't help you.

  • 15% Average Age of File - Never close credits cards even if don't use because they are important.

  • 10% Mix Use of Credit - Diversity...cards, car loans, mortgage.  They want to see you can manage different types of debt.

  • 10% Inquiries

How Long Do Delinquencies Stay on the Credit Report?

  • Bankruptcies Chapter 7 & 11 - 10 Years From Filing Date

  • Bankruptcies Chapter 7 & 11 - 7-10 Years From Filing Date

  • Tax Liens - 7 Years From Date Satisfied

  • Late Payments - 7 Years

  • Charge-Offs - 7.5 Years From 1st Date of Delinquency

  • Judgments - 7 Years From Filing Date

  • Inquiries - 2 Years - Only hurt you when looking to extend or get additional amounts.  Only count against or for you score for 12 months.

Most Common Credit Myths

  • Paying off collection and/or charged off accounts, tax liens or judgments will increase your credit score.  Absolutely 1000% false!  They care that you went into that derogatory status, not that you eventually took care of it.

  • Paying off any of the above account types will remove them from your credit report.

  • Closing credit cards will increase your credit score.  Never close them.  They contribute to 2-3 scoring categories.

  • Not having credit cards is a good idea.  You are missing 30% of your credit score potential.

  • A divorce decree will absolve you of your credit responsibilities.  No.  If you are a co-signor on ANY level.  If the other person defaults it will affect you.

  • Settling debts will not have an adverse affect on your credit score.  Don't buy into the false advertising.  There is a narrative added that says settled for less than amount due.  This is a major negative on scoring.

  • Short selling a home has less impact on your credit score than a foreclosure.  Again, you will get the narrative and it will have a negative impact.

  • There is a single point value system for credit reporting.  No, there is not.

Most Common Credit FYI's

  • If you settle on any type of debt for less than less than the amount owed per the original contract, the creditor can 1099 you.

  • Anyone under the age of 21 must now have a co-signor in order to obtain a credit card.  Your kids are attached to you.  If they max their card, you are maxed.  If they are delinquent, you are delinquent.

  • Review your credit report at least once a year.  Identity theft is not as a big of an issue as it is made out to be but you do want to make sure things are accurate.  You also want to be prepared if you do look into purchasing a new car.

  • Conduct credit reviews with your credit card companies every six months.  Do I have the best rate?  Points benefits?  The biggie is ask for credit increases.  You increase your utilization ratio.

Other Tidbits

  • Reporting is voluntary but must be accurate.  They also don't have to report to all three.

  • If you only check one report, check Experian.  Although Shonnie recommends checking all three every six months.

  • www.CUMIC.org