How to know what cap rate to shoot for

Posted on February 28, 2016 by Anthony Jerdine

BY ANTHONY JERDINE FEBRUARY 27, 2016 REAL ESTATE DEAL ANALYSIS & ADVICE
This question comes up a lot when shopping for rental properties:

“What cap rate should I be looking for?”

Well, how about we first define a cap rate?

What is a Cap Rate?

Cap rate is short for capitalization rate, and what this number tells you is the relationship between the sales price of a property and the income it generates. It basically tells you if you are buying an investment property at a good price. The term originated with commercial properties and has now trickled into residential property analysis as well.

To figure out the cap rate, the equation is:

Annual NET Income / Purchase Price = Cap Rate

Some notes about this equation, and therefore what a cap rate includes or tells you (or doesn’t tell you):

Net income. Note that you must use the net income on a property, not the gross. The net income is what you get after all expenses are taken out.
Mortgage payment. The cap rate does not include a mortgage payment. So don’t count that as one of your expenses when you are calculating your net income.
Adjusting purchase price. If you are buying a property needing rehab, your purchase price should be the total cost including the rehab. Whatever it takes to buy the property and for it be rentable, that’s the number you should use.

Shopping for a Rental Property

Now it’s time to go shopping. You’re ready to buy a rental property, you have all your ducks in a row and your team in place to help you shop. How do you know what are you looking for?

The main thing you need to know before worrying about what cap rate to look for is:

Cap rates will vary between markets, property types, and other factors. So remember when you are analyzing cap rates, you have to compare apples to apples — not apples to tomatoes.

Specific factors that can affect cap rates include, but aren’t limited to:

Your specific market. Just due to simple real estate economic variances between markets, the “going” cap rate of any market is likely to be different from that of another market.
The area within a given market. This pertains to different areas within a market. For example, more desirable areas compared to less desirable areas.
Property type. Generally, this would relate to single-family properties versus multifamily properties. Multifamily properties inherently come with more risk than single-family properties (mostly due to the tenants). Because they are typically higher risk, the cap rates are usually higher to make up for it. Because single-family properties are typically less risky, it wouldn’t make sense to buy a multifamily property that has a lower cap rate than a single-family property. (Note: this doesn’t include risk with such multifamily properties as high-end condos or anything like that — these statements refer to comparable properties in similar areas to each other.)
Property condition. It certainly wouldn’t make sense to buy a dumper that has the same cap rate as a freshly rehabbed, good condition property.
Risk factor. This includes risk associated with neighborhood, property type, and the property condition. Think of it in terms of a trade-off. Why would you buy something with greater risk that has the same cap rate as a property with lower risk? Your two biggest risks with any property will be with the property itself (think massive repair costs that break your bottom line) and the tenants who live in it (bad tenants are arguably the costliest thing to a rental property owner). One other major risk is vacancy, which is most directly affected by the neighborhood or market itself.
Economic cycles. The real estate economy of any market is not only dependent on the nationwide real estate economy, but on its own economy as well. The current place of a market in its economic cycle will have a major impact on the going cap rates at any particular time.
The point is cap rates vary with different property types in different locations, so when you are asking what a “good” cap rate is, you can only compare numbers in similar areas with similar property types.

Examples of Varying Cap Rate Situations

Here are some different scenarios of varying cap rates, and with each, I explain why the cap rates differ.

A 5% cap rate would be considered fantastic in Los Angeles, but horrible in Kansas City. Reason: Market Differences
The cap rate on a cute little house in the quiet outskirts of a big city might be 8%, while a similar cute little house in the popular, desired area in the middle of the same big city may only get you 1% (if even that!). Reason: Neighborhood Differences
A multifamily property has a cap rate of 11%, while a single-family property in the same general area has a cap rate of only 8%. Reason: Multifamily vs. Single-Family
There are two nearly identical houses, and one is priced to offer a 9% cap rate, and the other offers a 14% cap rate. One of the houses is in “good as new” condition, and one needs an excessive amount of work. Which do you think is associated with which cap rate? Reason: Property Condition
A 7% cap rate for a single-family home in a nice stable neighborhood in the good part of Dallas would be excellent, but it would be horrible for a triplex in the more urban Section 8 areas of Chicago. Reason: Risk Factors — Neighborhoods, Property Types, and Tenant Pool
The going cap rate in Atlanta in 2011 was around 14%. Today in 2016, the going cap rate is 6-7%. Reason: Difference in Placement in the Economic/Growth Cycle
See how a lot of those trade-offs work and how they come into play when looking at cap rates?

I constantly see people asking, “What cap rate should I expect on a rental property?” The reality is that question just can’t be answered very easily. You might be able to get away with having a hard minimum, say 5%, but what if a proposed property was a run-down multifamily in a slightly sketchy neighborhood? Would you still accept a 5% cap rate on that property? Well, maybe I would if there was solid evidence that the sketchy neighborhood was about to be gentrified and it was nearby a city like Los Angeles that experiences big appreciation waves. But for a run-down multifamily in a slightly sktchy neighborhood in some small Midwestern city? No way!

And thinking of this whole concept in reverse, be sure you always consider that a higher advertised cap rate doesn’t always mean it’s a better deal. Remember, advertised or projected returns are just that — projected. What really matters is whether or not the number will hold true, and a lot of that depends on the quality of the location and property.

I have to be honest, though. Despite all this talk about cap rates, I have to tell you that I only explained all of that because it’s the question that keeps getting asked.

How to know what cap rate to shoot for

How to know what cap rate to shoot for

Posted on February 28, 2016 by Anthony Jerdine

BY ANTHONY JERDINE FEBRUARY 27, 2016 REAL ESTATE DEAL ANALYSIS & ADVICE
This question comes up a lot when shopping for rental properties:

“What cap rate should I be looking for?”

Well, how about we first define a cap rate?

What is a Cap Rate?

Cap rate is short for capitalization rate, and what this number tells you is the relationship between the sales price of a property and the income it generates. It basically tells you if you are buying an investment property at a good price. The term originated with commercial properties and has now trickled into residential property analysis as well.

To figure out the cap rate, the equation is:

Annual NET Income / Purchase Price = Cap Rate

Some notes about this equation, and therefore what a cap rate includes or tells you (or doesn’t tell you):

Net income. Note that you must use the net income on a property, not the gross. The net income is what you get after all expenses are taken out.
Mortgage payment. The cap rate does not include a mortgage payment. So don’t count that as one of your expenses when you are calculating your net income.
Adjusting purchase price. If you are buying a property needing rehab, your purchase price should be the total cost including the rehab. Whatever it takes to buy the property and for it be rentable, that’s the number you should use.

Shopping for a Rental Property

Now it’s time to go shopping. You’re ready to buy a rental property, you have all your ducks in a row and your team in place to help you shop. How do you know what are you looking for?

The main thing you need to know before worrying about what cap rate to look for is:

Cap rates will vary between markets, property types, and other factors. So remember when you are analyzing cap rates, you have to compare apples to apples — not apples to tomatoes.

Specific factors that can affect cap rates include, but aren’t limited to:

Your specific market. Just due to simple real estate economic variances between markets, the “going” cap rate of any market is likely to be different from that of another market.
The area within a given market. This pertains to different areas within a market. For example, more desirable areas compared to less desirable areas.
Property type. Generally, this would relate to single-family properties versus multifamily properties. Multifamily properties inherently come with more risk than single-family properties (mostly due to the tenants). Because they are typically higher risk, the cap rates are usually higher to make up for it. Because single-family properties are typically less risky, it wouldn’t make sense to buy a multifamily property that has a lower cap rate than a single-family property. (Note: this doesn’t include risk with such multifamily properties as high-end condos or anything like that — these statements refer to comparable properties in similar areas to each other.)
Property condition. It certainly wouldn’t make sense to buy a dumper that has the same cap rate as a freshly rehabbed, good condition property.
Risk factor. This includes risk associated with neighborhood, property type, and the property condition. Think of it in terms of a trade-off. Why would you buy something with greater risk that has the same cap rate as a property with lower risk? Your two biggest risks with any property will be with the property itself (think massive repair costs that break your bottom line) and the tenants who live in it (bad tenants are arguably the costliest thing to a rental property owner). One other major risk is vacancy, which is most directly affected by the neighborhood or market itself.
Economic cycles. The real estate economy of any market is not only dependent on the nationwide real estate economy, but on its own economy as well. The current place of a market in its economic cycle will have a major impact on the going cap rates at any particular time.
The point is cap rates vary with different property types in different locations, so when you are asking what a “good” cap rate is, you can only compare numbers in similar areas with similar property types.

Examples of Varying Cap Rate Situations

Here are some different scenarios of varying cap rates, and with each, I explain why the cap rates differ.

A 5% cap rate would be considered fantastic in Los Angeles, but horrible in Kansas City. Reason: Market Differences
The cap rate on a cute little house in the quiet outskirts of a big city might be 8%, while a similar cute little house in the popular, desired area in the middle of the same big city may only get you 1% (if even that!). Reason: Neighborhood Differences
A multifamily property has a cap rate of 11%, while a single-family property in the same general area has a cap rate of only 8%. Reason: Multifamily vs. Single-Family
There are two nearly identical houses, and one is priced to offer a 9% cap rate, and the other offers a 14% cap rate. One of the houses is in “good as new” condition, and one needs an excessive amount of work. Which do you think is associated with which cap rate? Reason: Property Condition
A 7% cap rate for a single-family home in a nice stable neighborhood in the good part of Dallas would be excellent, but it would be horrible for a triplex in the more urban Section 8 areas of Chicago. Reason: Risk Factors — Neighborhoods, Property Types, and Tenant Pool
The going cap rate in Atlanta in 2011 was around 14%. Today in 2016, the going cap rate is 6-7%. Reason: Difference in Placement in the Economic/Growth Cycle
See how a lot of those trade-offs work and how they come into play when looking at cap rates?

I constantly see people asking, “What cap rate should I expect on a rental property?” The reality is that question just can’t be answered very easily. You might be able to get away with having a hard minimum, say 5%, but what if a proposed property was a run-down multifamily in a slightly sketchy neighborhood? Would you still accept a 5% cap rate on that property? Well, maybe I would if there was solid evidence that the sketchy neighborhood was about to be gentrified and it was nearby a city like Los Angeles that experiences big appreciation waves. But for a run-down multifamily in a slightly sktchy neighborhood in some small Midwestern city? No way!

And thinking of this whole concept in reverse, be sure you always consider that a higher advertised cap rate doesn’t always mean it’s a better deal. Remember, advertised or projected returns are just that — projected. What really matters is whether or not the number will hold true, and a lot of that depends on the quality of the location and property.

I have to be honest, though. Despite all this talk about cap rates, I have to tell you that I only explained all of that because it’s the question that keeps getting asked.

How to know what cap rate to shoot for

Mentors

Posted on February 26, 2016 by Anthony Jerdine

Always remember, your brain is haywire.

Whether you’re trying to get healthier or make more money, it all comes down to the brain. Studies show that what separates billionaires from ordinary people are their habits of the mind.

It’s like the great philosopher Henry David Thoreau said, “The average person leads a life of quiet desperation. What is called resignation is confirmed desperation.”

The reason for this is the 3 parts of the mind:
1. The rational brain
2. The emotional brain
3. The reptilian brain

No matter what we do when we think we’re smart, every thought starts by going through the reptilian brain. This is because the reptilian brain is the first part of the brain that was developed evolutionarily.

The most recently developed part of the brain, the neocortex, is where you process all your thought. The thing is, you have to bypass the reptilian brain if you want to access your rational centers.

I always remind myself, “AJ, no matter how many books you read, your mind is still primitive.”

So what you have to do is not put yourself in situations that set you up to fail. You have to remember that humans are affected by environment.

That’s why you need mentors – the quickest way to be successful is to be around people who rub off on you visually and environmentally.

No one is as smart as they think they are.
Stay strong,

How to look confident

Posted on February 20, 2016 by Anthony Jerdine

TAKE IDENTITY TEST
HOW TO LOOK CONFIDENT
BODY LANGUAGE EXPERT JAN HARGRAVE SHARES 5 WAYS TO APPEAR SELF-ASSURED
posted by Anthony Jerdine

The moment you step into a room, people are immediately forming some sort of impression of you. They’re making snap judgments about what type of person you are — trustworthy, sincere, capable. And a lot of this is based on how you carry yourself.

If you appear genuinely confident, people will be more inclined to give you the attention and respect that you deserve. If you appear uncomfortable and insecure, on the other hand, people may be quick to dismiss or discredit you. Because body language is an integral part of communication, and the way you carry yourself may be communicating more than you know to the outside world.

Did you know that non-verbal cues represent 55% of our communication? Vocal inflection is just 38%, while our words constitute only 7% of our communication. No wonder why we say that actions speak louder than words. Because the most subtle physical cues — from how you have your hands placed to how you set your shoulders — set a tone.

So how do you set a positive tone that reinforces your intelligence and capability? By carrying yourself with confidence. Unfortunately, many struggle with self-doubt. Many also believe that if you aren’t born with confidence then you are out of luck. But that’s far from the truth. Self-confidence is a skill. It is something that you can learn how to exude, even by making simple changes to your physical movements.

To learn more about quick fixes you can make to appear more self-assured, we spoke to renowned body language expert, Jan Hargrave, whose book Strictly Business Body Language delves into the power of nonverbal communication and how anyone can use it to their advantage.
ALIGN YOUR SHOULDERS

If you’re slouched or crouched, it displays a lack of confidence and even a lack of sincerity. Stand up straight, push your shoulders back slightly and open up your chest. Be sure to keep your shoulders even. Unevenness of shoulders conveys indecisiveness in a person. Also, be sure to square your shoulders towards your speaking partner. We point our bodies where our mind wants to go. So if you are speaking to another, but your body is facing the door, it comes off that you would like to exit the conversation, and the person who you are speaking to may think you are discourteous or uncomfortable. Squaring off your shoulders towards your partner conveys a sense of interest and confidence.

CURB THE FIDGETING

One of the biggest mistakes you can make is mindlessly fidgeting. This is a dead give away that you feel uncomfortable. Have you ever watched a professional newscaster? They never touch their face, adjust their ties, pull at their clothing or play with their jewelry. Because they have been trained to get you to believe what they are saying, and if they seemed nervous or insecure while delivering their message, you would not trust nor believe what they were saying. If you find yourself fidgeting, relax, stay present, fold your hands in your lap or on the top of the table in front of you.

STEEPLE YOUR HANDS

A simple hand gesture can make you appear more confident and secure. Many people are used to what is called the “fig leaf” gesture, in which one hand cups the other and rests over the groin area. But this hand gesture actually conveys insecurity and weakness. The hand steeple, in which the fingers come together to form a point, is a great alternative. When someone steeples in the chest area, it means they are confident about what they are saying. When someone steeples in the lap area, it means they are confident about what they are hearing.

MAKE EYE CONTACT

If you are having a one-on-one conversation, there is nothing more important than direct eye contact. Follow the 80/20 rule, in which 80% of the time your eyes are meeting your speaking partner’s, and 20% of the time, your eyes can be roaming as you gather information to say. Good eye contact not only allows your speaking partner to feel that you are interested in what they are saying, they will appreciate and respect you more for doing so and ultimately, associate you with a caring, confident individual.

FIRM YOUR HANDSHAKE

A good handshake can set the tone for your following interaction with another individual. The best handshake starts with you holding your hand in a vertical position, with your fingers together and your thumb extended upright. Then, when shake your partner’s hand, it must be a close, assertive connection in which the web of your hand meets his web. Be sure you approach their hand as evenly as possible. When someone’s hand is facing down, it means they want to control you. And if their hand is facing up, it conveys that they are submissive. If you want to go the extra mile to convey confidence, try “anchoring” the handshake. This means using your other hand to touch the person softly on their forearm between their wrist and their elbow. Done correctly, and this move can give an impression that you are fully committed to speaking with the person. Just be sure to not go any higher than the elbow, as this could make the person feel like you are invading their personal space.

Top 5 Reasons to Improve Your Scote

Posted on February 20, 2016 by Anthony Jerdine

Top 5 reasons you should improve your credit score- provided by Anthony Jerdine’s Credit Team

Top 5 reasons you should improve your credit score

Your credit score acts as a report card for your financial responsibility. It is an indicator of your ability to pay off loans and other acquired debt.

Whether or not you are satisfied with your current credit score may determine how much you should do to improve it. However, it is always a good idea to work toward raising it.

Here are the top five reasons why strengthening your credit score is important:

Purchasing a new home or renting an apartment
According to Top Ten Reviews, one of the primary reasons you should raise your credit score is to position yourself in a positive way when buying a home. If you are interested in investing in real estate, you will want to ensure you will be approved for a home loan and that you qualify for the lowest possible rate. The lower your credit score, the higher your interest rate.
Even if you don’t think purchasing a home is the right option for you, applying to live in apartments also requires a credit check. Landlords want tenants who have demonstrated dependability in the past, and a credit score serves as evidence. Ensure it works in your favor, and keep your credit score as high as possible.

“Landlords want tenants who have demonstrate dependability in the past, and a credit score serves as evidence.”

Your romantic relationships
Nothing kills the mood like a terrible credit score, right? Well, sort of. According to U.S. News & World Report, a bad credit score can have rippling effects when it comes to your personal life. Just like emotional baggage can cause issues with your special someone, so can financial baggage. When purchasing larger-ticket items in unison or taking out loans, your credit score may impede your lover’s ability to qualify since lenders consider both you and your partner’s credit history.
Starting a business
If you are thinking about starting your own business, you may want to think twice about it if you know that your credit score isn’t optimal. To secure small-business financing you need to demonstrate that you can handle the finances of a new business well. A good credit history can show lenders that you are capable of making the proper financial decisions and ensuring optimal success.
Buying a car
Another reason you will likely want to improve your credit score is for when you decide to invest in a vehicle. When buying a car, it is very common for consumers to take out a loan to finance their decision. If you want to take out a loan for a car, it will be much more difficult if your credit score is lower than what the lender deems acceptable.
In addition, you will likely need to supply a more substantial down payment than if your credit score was good or excellent.

After purchasing the vehicle, your insurance may also be higher. Good credit will help you save the highest amount of money when financing this purchase and all the additional expenses associated with a new car.

Bad scores are hard to forget and improve
If you find yourself in a situation where you have a poor credit score, it is very difficult to improve your score. Typically these numbers are far easier to drive down than they are to bring up, so staying on top of them and maintaining responsible spending habits is critical.
Your credit score follows you for the rest of your life, so making sure it accurately reflects your financial history and keeping it high is very important.

MyFico suggested regularly checking your credit report and evaluating it for errors. Some negative items on your credit report may be responsible for bringing your score down, but they are actually mistakes. Removing these inaccuracies will improve your credit score and help you move forward with your credit situation.

If you want to reduce the amount of debt you owe, consider setting up payment reminders or make automatic payments for bills. By eliminating debt and staying current on all types of loans, you will improve your current credit score.

Your financial history is captured by a credit score, and it is up to you to make sure it accurately reflects your reliability.

Top 5 Reasons to Improve Your Scote

Posted on February 20, 2016 by Anthony Jerdine

Top 5 reasons you should improve your credit score- provided by Anthony Jerdine’s Credit Team

Top 5 reasons you should improve your credit score

Your credit score acts as a report card for your financial responsibility. It is an indicator of your ability to pay off loans and other acquired debt.

Whether or not you are satisfied with your current credit score may determine how much you should do to improve it. However, it is always a good idea to work toward raising it.

Here are the top five reasons why strengthening your credit score is important:

Purchasing a new home or renting an apartment
According to Top Ten Reviews, one of the primary reasons you should raise your credit score is to position yourself in a positive way when buying a home. If you are interested in investing in real estate, you will want to ensure you will be approved for a home loan and that you qualify for the lowest possible rate. The lower your credit score, the higher your interest rate.
Even if you don’t think purchasing a home is the right option for you, applying to live in apartments also requires a credit check. Landlords want tenants who have demonstrated dependability in the past, and a credit score serves as evidence. Ensure it works in your favor, and keep your credit score as high as possible.

“Landlords want tenants who have demonstrate dependability in the past, and a credit score serves as evidence.”

Your romantic relationships
Nothing kills the mood like a terrible credit score, right? Well, sort of. According to U.S. News & World Report, a bad credit score can have rippling effects when it comes to your personal life. Just like emotional baggage can cause issues with your special someone, so can financial baggage. When purchasing larger-ticket items in unison or taking out loans, your credit score may impede your lover’s ability to qualify since lenders consider both you and your partner’s credit history.
Starting a business
If you are thinking about starting your own business, you may want to think twice about it if you know that your credit score isn’t optimal. To secure small-business financing you need to demonstrate that you can handle the finances of a new business well. A good credit history can show lenders that you are capable of making the proper financial decisions and ensuring optimal success.
Buying a car
Another reason you will likely want to improve your credit score is for when you decide to invest in a vehicle. When buying a car, it is very common for consumers to take out a loan to finance their decision. If you want to take out a loan for a car, it will be much more difficult if your credit score is lower than what the lender deems acceptable.
In addition, you will likely need to supply a more substantial down payment than if your credit score was good or excellent.

After purchasing the vehicle, your insurance may also be higher. Good credit will help you save the highest amount of money when financing this purchase and all the additional expenses associated with a new car.

Bad scores are hard to forget and improve
If you find yourself in a situation where you have a poor credit score, it is very difficult to improve your score. Typically these numbers are far easier to drive down than they are to bring up, so staying on top of them and maintaining responsible spending habits is critical.
Your credit score follows you for the rest of your life, so making sure it accurately reflects your financial history and keeping it high is very important.

MyFico suggested regularly checking your credit report and evaluating it for errors. Some negative items on your credit report may be responsible for bringing your score down, but they are actually mistakes. Removing these inaccuracies will improve your credit score and help you move forward with your credit situation.

If you want to reduce the amount of debt you owe, consider setting up payment reminders or make automatic payments for bills. By eliminating debt and staying current on all types of loans, you will improve your current credit score.

Your financial history is captured by a credit score, and it is up to you to make sure it accurately reflects your reliability.

Top 5 Reasons to Improve Your Scote

Posted on February 20, 2016 by Anthony Jerdine

Top 5 reasons you should improve your credit score- provided by Anthony Jerdine’s Credit Team

Top 5 reasons you should improve your credit score

Your credit score acts as a report card for your financial responsibility. It is an indicator of your ability to pay off loans and other acquired debt.

Whether or not you are satisfied with your current credit score may determine how much you should do to improve it. However, it is always a good idea to work toward raising it.

Here are the top five reasons why strengthening your credit score is important:

Purchasing a new home or renting an apartment
According to Top Ten Reviews, one of the primary reasons you should raise your credit score is to position yourself in a positive way when buying a home. If you are interested in investing in real estate, you will want to ensure you will be approved for a home loan and that you qualify for the lowest possible rate. The lower your credit score, the higher your interest rate.
Even if you don’t think purchasing a home is the right option for you, applying to live in apartments also requires a credit check. Landlords want tenants who have demonstrated dependability in the past, and a credit score serves as evidence. Ensure it works in your favor, and keep your credit score as high as possible.

“Landlords want tenants who have demonstrate dependability in the past, and a credit score serves as evidence.”

Your romantic relationships
Nothing kills the mood like a terrible credit score, right? Well, sort of. According to U.S. News & World Report, a bad credit score can have rippling effects when it comes to your personal life. Just like emotional baggage can cause issues with your special someone, so can financial baggage. When purchasing larger-ticket items in unison or taking out loans, your credit score may impede your lover’s ability to qualify since lenders consider both you and your partner’s credit history.
Starting a business
If you are thinking about starting your own business, you may want to think twice about it if you know that your credit score isn’t optimal. To secure small-business financing you need to demonstrate that you can handle the finances of a new business well. A good credit history can show lenders that you are capable of making the proper financial decisions and ensuring optimal success.
Buying a car
Another reason you will likely want to improve your credit score is for when you decide to invest in a vehicle. When buying a car, it is very common for consumers to take out a loan to finance their decision. If you want to take out a loan for a car, it will be much more difficult if your credit score is lower than what the lender deems acceptable.
In addition, you will likely need to supply a more substantial down payment than if your credit score was good or excellent.

After purchasing the vehicle, your insurance may also be higher. Good credit will help you save the highest amount of money when financing this purchase and all the additional expenses associated with a new car.

Bad scores are hard to forget and improve
If you find yourself in a situation where you have a poor credit score, it is very difficult to improve your score. Typically these numbers are far easier to drive down than they are to bring up, so staying on top of them and maintaining responsible spending habits is critical.
Your credit score follows you for the rest of your life, so making sure it accurately reflects your financial history and keeping it high is very important.

MyFico suggested regularly checking your credit report and evaluating it for errors. Some negative items on your credit report may be responsible for bringing your score down, but they are actually mistakes. Removing these inaccuracies will improve your credit score and help you move forward with your credit situation.

If you want to reduce the amount of debt you owe, consider setting up payment reminders or make automatic payments for bills. By eliminating debt and staying current on all types of loans, you will improve your current credit score.

Your financial history is captured by a credit score, and it is up to you to make sure it accurately reflects your reliability.