Three Little Numbers

You know, it takes quite a bit to put me in a great mood. Usually I'm in normal mode for the whole day unless something spectacular happens. Well, that “something” happened exactly one week ago today.

Last week Tuesday, I was wrapping up my shift at the shipping depot. It was 11:52pm and I looked for something to do on my phone to make the last 8 minutes go by fast. I saw an old email from Credit Karma, asking me to update to see what my new credit score is. My score usually goes up and down by a few points every month and, the last time I updated (December 2014), my score was 655. Credit Karma is usually pretty accurate as far as what the actual score is, being off by 5-15 points on average. So I updated to see my score to start 2015 and...

740. Seven four zero. Seven forty. I looked at the number and was confused. How the hell did my score go up 85 points in less than a month?! I was really confused and thought that there was some kind of mistake. After I calmed down a bit, I realized that the missed mortgage payments I made in 2008 must have expired, as it takes 7 years for a missed payment to not count against a credit score. I was unbelievably happy. I called Brooklyn Mike on the way home to tell him the good news. I was almost yelling as I recounted how long it took me to get to this point. The pains of having to pay for mistakes made for 7 long years. I remember having to write that Letter of Explanation to CFB Bank when I was trying to purchase Property 3 in 2013. In fact, this was the letter... word for humiliating word:

March 7^th, 2013

This letter is an explanation of any irregularities in my credit report. The first issue is being late on my mortgage payments about 3 years ago with Bank of America, as well as the late payments on my credit cards at the time. During that time, I had my hours cut from full-time worker to part-time as they reorganized the workforce at my job with [bank job security company]. I was also having issues in real estate management. I wasn’t screening prospective tenants very well, and would therefore have bad tenants and all the issues they bring. I also didn’t have a good business model. Whenever a tenant would call, I would hire locals to “fix” the problem. They wouldn’t do a good job, keep the money, and leave the problem as it was or even worse. To supplement for these issues, I maxed out my credit cards until it got to a point where I couldn’t make the minimum payments.

Once I became a full-time employee again, I also took another job and became full-time there as well. I’m currently the senior security officer at both jobs (<--- bullshit, but sounds good). I started a property management company and now put tenants through a more rigorous background check that all but ensures I get the right tenant for every apartment. My maintenance has improved as well, as I now do inspections every 6 months and have made contacts with the right businesses who fix apartment issues in a professional manner. I plan to apply the same level of professionalism to the property that I’m asking a loan for.

The second issue is with the Empower hard inquiry. I was looking for the best possible loan and applied for a mortgage with Empower. Their program, however, did not fit my business model so I decided not to go with them. I hope this clears up all issues with my credit report. Thank you.

I remember how humiliated I felt when they STILL rejected me due to the missed mortgage payments on my credit report. My massive ego took a huge hit that day. My hands started to tremble while driving home from the shipping depot and I actually showed emotions. Who knew that three little numbers can have such an effect??

740 is big. No, it's huge. The highest score I've ever had was 661. This score, along with my good mortgage payment history, means that I can get a mortgage from almost any bank in the country. I'll get favorable rates and no more explanation letters. Banks will see how good of an investment I am, and buying properties from here on out should be easier. By 2017, every missed payment on my credit report will be gone, which should push my score to at least 800. More importantly though, 740 marks the end of having to pay for the mistakes of the past. Mentally, I can finally move on with the confidence in knowing that the way I do business is the right way.

P.S.: Oh yeah, this post feels good to write. If this is a sign of things to come, 2015 should be one hell of a great year.

P.P.S.: This is also a big FU to Sam, who advised me to be like him and stiff the banks when things were going bad. Though I was inexperienced at the time, I knew there was something wrong with what he suggested. How can it be good to betray people that trusted me enough to lend me tens of thousands of dollars? So I stuck to my common sense, and now I have a good credit score and my choice of any bank to do a mortgage with. I'll let Sam do it his way. My way is working out just fine...