Tag Archives: credit

Hard Pull; Soft Pull: How’s your Credit Score?

Posted by Michael Hughes    August 19, 2010

How do credit inquiries affect your score? Well there are two types of credit inquiries–hard inquiries (“hard pulls”) and soft inquiries (“soft pulls”).

Hard pulls
A hard pull is defined as an inquiry that will affect your score. If you’ve ever viewed your credit report you’ll see a section dedicated to credit inquiries. That’s because the credit bureaus keep a record whenever your credit history is viewed by a service provider or credit lender. Pulls that will show on your report as hard pulls include those by landlords, credit card issuers, insurance companies and service providers (think satellite television, phone service, the electric company…). Records of all of these inquiries will remain with you for 1-2 years. Most people have some inquiries; it’s just what happens as you go through life.

Soft pulls
Soft pulls are not visible on your credit report and thus have no affect on your score. Soft pulls on your credit report come from viewing your report yourself, along with any job-related requests that are made. Also, when your information is sent to companies for marketing purposes they can appear in the

Your Right to Opt Out

Lastly, in regards to the pre-approval notices you receive in the mail, you have the right to opt out from receiving these solicitations. To opt out contact each of the three bureaus (TransUnion, Equifax and Experian) individually. You can also call 1-888-5-OPTOUT (1-888-567-8688). This will remove your name from mailing and  telemarketing lists for two years. Read the entire story.

If you have questions regarding this article or have thought about selling, renting, investing or  would like to Buy A House In Boulder check out my website. You may also call, text me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO. Featured Listings


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Mortgage Mix

Posted by Michael Hughes    April 13, 2010

When you are buying a home it’s challenging to acquire the right kind of financing. Having the right mix of savings, credit score and debt-to-income ratio will improve your chances of securing a loan.

Buyers today are obviously faced with new obstacles to financing. These new restrictions are part of the “hangover” from the 2008 financial meltdown and the easy lending frenzy of the recent past. But obtaining financing is not impossible. A solid job, credit score and savings will make it happen.

Ideally, prospective buyers have at least 6 months of reserved savings with a debt-to-income ratio of no more than 45%. Credit scores of 700 or greater are preferred. Thinking you are going to buy a home in Boulder? Prequalifying is a quick 15 minute conversation. Call me today if you need the names of reputable lenders I have worked with that do a great job.

If you have questions regarding this article or are thinking you will Buy A Home In Boulder please call me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO 


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New Credit Card Laws Go Into Effect February 22, 2010

New Credit Card Laws Go Into Effect February 22, 2010

By Michael Hughes December 7, 2009

“He that goes a-borrowing, goes a-sorrowing.” –Benjamin Franklin

Why it’s important: A new federal credit card goes into effect February 22, 2010.  The new law will tilt the playing field toward consumers by removing some of the credit card industry’s most profitable and punishing practices. Consumer advocates favor it. Of course Credit Card issuers warn it will drive up the price of and limit the availability of credit cards at a time when the country needs more spending to stimulate the economy.  Bologna!  Credit card companies.  You remember them right?  They are tied to the largest banks in the country.  Remember the ones who got the “bail outs” and are now experiencing soaring profits and overly zealous bonuses.  Don’t get me wrong.  There is nothing wrong with profit.  I just want the money back that the banks, insurance companies and automakers, borrowed during the bail out.  BOA recently said it would pay back $45B of bailout money, putting pressure on other banks to step up. While some banks have paid back their money (~$4B) most banks, insurance companies and automakers have not.   Play fair,   with Credit Cards,  pay “US” back what you owe us and I will consider that a good start.  In the meantime, expect those little notices to trickle down to consumers in the mail, with increasing interest rates.  As much as 28 percent and more.  One way to overcome this is to pay down your credit cards and keep them paid off every month if possible. If you don’t have the money, don’t spend it. Simple!

In the future interest rate hikes will be limited, such as when a promo rate ends or if a late payment is made.  No more Universal Default-in other words no more raising interest rates when cc companies see payment records from utility companies and other unrelated creditors.  No more random changes in due dates without notice, increasing the likelihood of late fees.  Highest interest rate balances paid first.  It has been the opposite up until now.  Limits on overlimit fees.   No more double-cycling billing.  Therefore if you pay off your credit card every month the credit card company can not go back to a previous billing cycle to charge you interest.  Upfront fees for people with bad credit cannot exceed 25 percent. Also credit card issuers are instituting a new rule on points, cash back and frequent flyer miles.  If you  don’t  pay your card off every month you can pretty much kiss those goodbye. And last but not least credit card issuers must disclose to cardholders the consequences of making only minimum payments each month.  Namely that it will take you well beyond  a Millenium and the Mayan Calendar to pay this balance off if you just make minimum payments.  Keep debt minimal especially when applying for a mortgage. The additional debt can add up and cause problems for the underwriter of the mortgage. Call me with questions.

Contact me today if you or anyone you know in Boulder or the surrounding area needs real estate help or for just a quick question
e-Mail michael.hughes@sothebysrealty.com Direct 303-359-6627 Website: www.bolderrealestate.com

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