Liz's Havasu Lifestyle Blog: August 2009

Almost half of US Americans have credit scores that are not so great or even good and these consumers will not qualify for preferred interest rates when buying a home.  Depending on the consumer's credit profile, the consumer may not qualify for the home loan at all.  The biggest challenge to consumers is that many don't know exactly how their credit profile will affect their ability to buy a home or get preferred interest rates. 

Here are some tips that may help you understand and improve your credit profile:

* The maximum amount of your monthly credit line for you to have the best credit profile impact should be 50%.

* The top contributing factor that makes a good credit score is your payment history.

* As soon as you pay off one of your high-interest credit cards, you should continue using it occasionally, but minimally.

* Remember that applying for credit cards just to receive a free gift will have an impact on your credit.  So, be careful and sign up for credit cards that you really need.

* Rewards points on your credit card are usually a good deal when you carry no balance each month.

* To even have a credit score, you must have at least one creditor reporting some type of activity on your credit report for six months.

* Remember: banks and credit card companies do not think you are credit worthy by how many credit offers you receive in the mail.

* Credit scores are mainly used by lenders to predict how likely you are to repay your loan on time.

* Credit bureaus who manage your credit report and scores are just regular business corporations.  So, when there's a glitch on your report, contact them to get it resolved.  They are not government entities.

* Here's a little pop quiz for you to test your knowledge: If you were to pay 2% a month on your credit card, how long would it take you to pay off a $3,000 balance with an interest rate of 10%?

If you found that you really are confused about your credit profile, there's good news.  It's not too late and, with proper guidance and understanding, you can begin to effectively manage your credit profile.  By the way, the answer to the pop quiz is that it would take 18 years to pay off.

Realtor® Liz Miller ~ Lake Havasu City, Arizona Real Estate

Havasu....Your Lifestyle Awaits 

A statewide property scam is now targeting homeowners in Lake Havasu City, Arizona.  This scam comes in the form of an official-looking county property tax relief that is so official looking it has scammed thousands throughout the state already.  It comes through the mail offering the assistance of a property review board to help lower taxes for a fee of $189.  The scam also includes a deadline date for quick processing.

Even the local newspapers are getting calls from homeowners with questions about the suspicious letter to see if anyone has any answers for them.

Some owners, but not all, already know that it is free to file a property tax appeal.  So, those who do know that it is free are the ones onto the scam and questioning it.  It is the ones who don't know that it is free to file a property tax appeal and it is also too late to appeal 2009 property valuations that are the ones falling for the scam, not questioning it and losing their money. 

Some local residents are getting letters stating that they are eligible for savings of $500+ if they will just mail in their $189 service fee to the post office box stated in the letter, which is a Phoenix address.  There was a very similar scam in California directed at residents there, but no one was ever caught.

Supervisor Johnson confirmed the letter being circulated is definitely fraudulent and a scam.  For now, the county assessor's office will monitor the situation.  In the meantime, I am trying to do my part by helping get word out to all homeowners to be on the lookout for a very official looking advertisement letter that claims homeowners qualify for a "property tax reduction review".  This is only an attempt to scam all homeowners out of their money and nothing more.

Remember, there is no fee to file a property valuation appeal within Arizona and the 2009 appeals process has already ended, so it's too late for this year anyway.

If you think you are a victim or you receive one of these scams, you can contact the Attorney General's Office at 1-800-352-8431.  You can also file a complaint online at www.azag.gov.

Realtor® Liz Miller  ~  Lake Havasu City Real Estate

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