Understanding Credit Scoring and Credit Repair

B8 ◆ THE EPOCH TIMES ◆ Real Estate JANUARY 6 - 12, 2006 The “Silent Disease” The Dangers You Should Know about Lead Pipes and Lead Paint Lead poisoning can …damage the nervous system, interrupt fetal development, cause miscarriage, or lead to brain damage, convulsions and death. By GLENN BLIGHT Special to The Epoch Times Lead has mostly been eliminated from residential paint and lead water pipes haven’t been used for years, but new scientific evidence shows that people are susceptible to lead poisoning at much lower levels than previously thought harmful. The dangers of lead, especially to children and pregnant women, have sparked a new round of concern and action that may soon rival efforts to rid buildings of asbestos. In the U.S., federal legislation requires Real Estate agents and sellers of any building built before 1978 to declare their knowledge of lead hazards, provide a lead warning pamphlet to prospective buyers, and give them a chance to test for lead before the contract can be finalized. In Canada, lead was used in most paint up to about the time of World War II. Some paint contained as much as 50 percent lead by weight until 1976 when the federal government restricted lead to 0.5 percent. Called the “silent disease” because it affects humans slowly and without symptoms, lead poisoning can cause learning disabilities, interfere with growth, cause hearing loss or visual impairment, damage the nervous system, interrupt fetal development, cause miscarriage, or lead to brain damage, convulsions and death. As many as 90% of North American houses built before the fifties contain lead-based paint. This flaking paint is a threat to children inside the house and while playing on the ground near the house. Adults and children together are at risk from the dust that results from normal wear and friction around door jambs and window frames. Everyone needs to take great care to avoid the dust that is created when surfaces are scraped or sanded for repainting, which is a job for speciallytrained lead abatement contractors. You can’t eliminate the dust with a regular vacuum cleaner without making the situation worse. Paint isn’t the only threat. An older home’s plumbing may contain lead pipes, which were widely used and last a long time. Lead leaches into the water as it stands in the pipes. (Interestingly, the word plumbing comes from the Latin word plumbum, which means lead.) Lead pipes were commonly used for toilet and sink drains because lead is so soft the pipes could be bent by hand. Lead solder was used to join older lead pipes to modern copper pipes. And molten lead was used to seal joints in the big cast iron pipes that carry waste to the sewers. Even people who live in a modern house without lead pipes can’t assume their drinking water is lead-free, because in many cities there’s lead in the water long before it reaches the house. Residents in cities with high lead levels in the water supply should purchase water-treatment devices that filter out lead before it reaches the tap. Most home inspectors point out the existence of lead pipes whenever they are found and most will send water samples to the local health department if requested. Municipalities normally charge about $50 for testing. Home inspectors can test for lead paint for about $50 or test all the vinyl blinds in the house for a similar price. Now that we know how dangerous lead can be in and around older homes, we need to make sure we act on it and protect ourselves and our families from this unseen danger. Glenn Blight is a home inspector for Pillar to Post and holds the highest designation with the Ontario Association of Home Inspectors as an RHI member. For a home inspection contact Glenn at 905-568-8202. Photos.com Understanding Credit Scoring and Credit Repair By GARY MEGER Special to The Epoch Times Credit remediation is a subject consumers often face with fear and trepidation, and for good reason. With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Sub-prime borrowers who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve less-than-perfect credit scores and obtain a loan for the home you really want. The first step in the process is making sure that you have a current copy of your credit report. There are two major credit bureaus: Equifax, and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.tuc.ca or www.equifax. com/EFX_Canada/) It’s also important to know just what a good credit score is. Most A-Paper scores generally begin around 680, although this number may differ slightly among lenders. Don’t despair if you come up shy, there is always room for improvement. While credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps: • Evenly distribute your credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket. • Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debtto-available credit. The bottom line is don’t close those old accounts! • Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame. Remember, credit scores don’t change overnight. Improving them requires time and diligent effort on your part, so it’s a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing. If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Diligently search through them and educate yourself to ensure that you don’t sustain any self-inflicted wounds. If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the assistance of a professional credit repair company. With over 1100 credit repair companies to choose from, it’s important to be certain you are dealing with a reputable firm. Be cautious to avoid falling prey to credit repair scams. Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams. Gary Meger is an Accredited Mortgage Professional with Mortgage Intelligence Inc. Contact Gary at: 1-888-500-1841, or email: meger@MortgageAdvice.net Photos.com The Epoch Times is looking for your real estate stories – here’s your chance!! Do you have a story about buying or selling a house or condo that you’d like to share with our readers? … or do you have questions that we can ask an expert to answer for you? We invite you to submit your story or questions to Epoch Times. – Maybe others can benefit!! Toronto.realestate@epochtimes.com or fax to 416-298-1299 Please email to: