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Scores,Income, and frustration

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Anonymous
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Scores,Income, and frustration

My wife and I are real estate investors. We both have regular,full time jobs. W-2s and all. Our income keeps rising , and I use offers from credit card co's. to invest, in not only real estate,( we own 4 duplexes,and our house, all with mortages.), but also in silver and gold.(short term-less than a year , for gold.) We are regular savers, and the highest interest rate we are presently paying , on our credit card debt is 4.99% , fixed. Another is 2.99% fixed , And ALL the rest are 0%. Our mortgages are all fixed rate, we own our vehicles outright. We earn over $900.00 per month , from our properties, yet our credit scores , which were in the high 700s , have fallen to the low 700s.
 We do not intend to stop buying real estate, and we search for properties that we can rent , with a positive cash flow.
 A significent portion of our income is from rentals. This income , as well as the increase in our real wages, IE w-2 income , does not seem to be reflected in our FICO scoring.  
 We are frustrated by this , as a lowering of our credit score , could impact our 0% C.C. debt.
 We are risk takers , but Calculated risk only.
 Several properties have private mortgages , and they do not show up at all, as either assets , or liabilities.
 Our net worth grows by over $1000.00 per month, presently , yet our scores are stuck in the low 700s.
 Outside of paying down the C.C. debt , which means not buying any more properties , is there any way to improve our credit score? 
Message 1 of 4
3 REPLIES 3
Anonymous
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Re: Scores,Income, and frustration

You should set up a LLC-
Get these investment properties transfered over to them-
 
Get the debt for the investment properties off your personal reports (and the liablity) get a 1 or 2 CC in the buiness names and transfer balances (the business expenses) transfered over to them.
 
You make want to talk to a Fin Planner-
 
 
Message 2 of 4
Anonymous
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Re: Scores,Income, and frustration

Remember PawPaw, your income has NO bearing on your FICO score.  NONE whatsoever.    Whether you have one credit card maxed out at the $100 CL, or you are Donald Trump in training with 20+ properties under your belt with a paper net worth in the 8 figure range, risk is not determined by FICO based on income.
 
You apparently have alot of debt outstanding, and worse yet, probably have high UTL, especially on those 0% interest CC's.
 
I would go with Timothy's LLC recommendation, if you can pull that off.   But if you have high UTL on your existing cards and several mortgages outstanding, it could well and probably will limit how high your scores can go.
 
 
Message 3 of 4
Anonymous
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Re: Scores,Income, and frustration

You score is lower because you borrow money. People with very high scores have no debt. More debt the lower your score will go. Sounds like you have perfect credit. Score in the upper 700s with debt is more than likely a score in the 800 with no debt.
Message 4 of 4
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