Georgia Came In Second To Last In The SEC?

Media / Blog

Georgia Came In Second To Last In The SEC?

Prev

Should I Rent The House Or Sell It?

February 13, 2013

At the end of 2012, the average national credit score in the United States was 696, but some states scored way above that average while others fell dismally short of the average. (source: equifax.com). While the SEC has always been strong in college football and other athletics, the South came in at the very bottom when it comes to credit scores. States such as Vermont and North Dakota were up in the 721 range, while Louisiana (669), Georgia (667), and Mississippi (661) were the three states at the bottom of the heap. FICO scores can range between 250 and 850, and having a credit score above 750 has always been considered excellent while falling below 650 can be considered sub-prime when it comes to lending. So, why did Georgia rank near the bottom and what can we do to fix it?

1. Pay off past due balances — Your payment history makes up roughly 35% of your overall credit score. Think about this in very simple terms. Loaners like people who can consistently pay off the obligations from the money that they borrow. Credit card companies who give you a line of credit like to see you actually use this credit and be able to pay it off in a timely manner. Coincidentally, banks like to see the same thing from business owners when it comes to having working capital for lines of credit. If you have additional cash, pay off the overdue balances and make sure it is accurately reported to your credit report. Some credit card issuers will consider putting a different age on the debt if you discuss this with them when you pay it off.

2. Leave your lines of credit open — In my experience, it's very rare that closing out a credit card will dramatically improve your credit score. One of the things on your credit report that will be examined is your overall debt utilization. It's important to keep the cards open once you pay off the debt to show your overall utilization and that it has gone down. In fact, if you use several of the cards more frequently it would be better to ask your credit card company for a credit increase rather than taking out another new card. New cards can be a drain on your overall score as length of history on overall credit is an important factor.

3. Talk to your lender — Remember, that lenders are businesses and they don't want you to default on your debt. It costs them time and money to have collection agencies go after you. Some money in their pocket is better than no money at all. If you have fallen way behind, you might be able to offer up a settlement amount and have your loaner make a notation that you are paid in full. I recently had a situation where a client was able to pay off over $120,000 with Wells Fargo from money owed due to short sale for less than $28,000. This will all be considered paid off in full with a clean credit record.

As a side note, the Masters has always been the crown jewel of the major golf tournaments and is held in Augusta. The Augusta area scored dead last in metro areas coming in with an average credit score of 651. Maybe the city can get a little bit of help from the millions that pour into that tournament every year. Maintaining a good credit score is going to become more and more instrumental for each of you in the future. This is true for getting a home loan, the interest rate you'll pay on other loans, and even what your utility company or your employer might think about you. We all want to be winners, so think about these key areas to fix and make a smart money move by getting your credit score to the 800 level!

Next

My Year End AMEX Statement Begins The Budgeting Process

About the author

Ted Jenkin in a suit and tie

Ted Jenkin

CEO and co-Founder

Hey!

My friends and family all think I'm a workaholic, but I say I'm just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.