Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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🧮 Cost Segregation + DSCR Loans: Unlock Tax Savings & Cash Flow 🚀
🧮 Cost Segregation + DSCR Loans: Unlock Tax Savings & Cash Flow 🚀
💼 DSCR Loans + Cost Segregation = Real Estate Investor’s Hidden Advantage 💰
🧮 Cost Segregation + DSCR Loan = Tax & Cash Flow Strategy
For real estate investors, maximizing both tax savings and cash flow is the ultimate strategy. Two powerful tools—Cost Segregation Studies and DSCR (Debt Service Coverage Ratio) Loans—can work hand-in-hand to give you a competitive edge. Let’s break down how they complement each other.
🔎 What is Cost Segregation?
Cost segregation is a tax strategy that allows real estate investors to accelerate depreciation on certain parts of a property—like flooring, lighting, HVAC, and other non-structural components. Instead of waiting 27.5 or 39 years to depreciate an asset, investors can write off big portions within 5, 7, or 15 years.
✅ Benefits:
· Immediate tax deductions
· Improved after-tax cash flow
· Potential reinvestment into new deals
💼 What is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a type of mortgage commonly used for investment properties. Instead of relying on your personal income, lenders approve you based on the property’s net operating income (NOI) relative to the debt payment.
· Formula: DSCR = NOI ÷ Debt Service
· Example: A DSCR of 1.25 means the property generates 25% more income than needed to cover the loan.
🧩 How They Work Together
Here’s where the magic happens:
1. Lower Taxes = Higher Cash Flow
A cost segregation study reduces your taxable income, freeing up more cash flow.
2. Higher Cash Flow = Stronger DSCR
Lenders look for healthy DSCR ratios. With more after-tax cash flow, your property is more likely to qualify—and potentially at better terms.
3. Expand Your Portfolio Faster
By saving on taxes and improving loan qualification, you can reinvest capital into additional properties, growing your portfolio at a faster pace.
⚡ Example Scenario
· Investor purchases a $1.5M multifamily property.
· A cost segregation study accelerates $300K in depreciation within year one.
· That deduction significantly lowers taxable income, improving free cash flow.
· With stronger financials, the investor refinances with a DSCR loan, unlocking more leverage for the next deal.
🎯 The Takeaway
If you’re serious about scaling your real estate portfolio, pairing cost segregation strategies with DSCR financing can give you a powerful one-two punch. Not only do you save thousands in taxes, but you also strengthen your ability to finance more properties without relying on personal income documentation.
👉 Ready to explore how cost segregation and DSCR loans can work for your investments? Contact Medallion Funds today to structure a strategy that maximizes both tax benefits and financing power.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Refinancing youe loan and when to do it
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/