credit scores reflect credit payment patterns over time with more emphasis on recent information. In general, your score may improve, if you do the following:

1. Make sure all your bills are paid by the time they are due. Late, past due payments and collections will always have a negative impact on your credit scores.
   
2. Keep balances at 50% of available credit on all credit cards and other "revolving credit accounts." High outstanding debt and maxed out credit lines will affect your scores.
   
3. Only Apply for or open new credit accounts as needed. Don't open accounts just to have a better credit mix or more available credit– it will do nothing but increase your indebtedness or classify you as having too much available credit. this probably won't raise your score either.
   
4. Do not transfer debt from one card or credit line to another but Pay it off. Unless you are spreading it around to have a 50% balance to available credit accross the board. Also, don't close unused cards as a short-term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score.
   
   
5. Review your credit report from each reporting bureau once a year so you know what is being reported. Simply order one from Transunion in January, one from Equifax in May and one from Experian in Sepetember. It won't affect your score to request and check your own credit report. You have the right a free annual report from each reporting agency.

Things that may Improve your credit scores Paying your bills on time is the single most important contributor to good credit scores. No matter how small the debt, it is crucial that you make timely payments. Furthermore, you should minimize outstanding debt, do not overextend yourself and refrain from applying for credit lines Unnecessarily.

1. Applications for credit show up as inquiries on your credit report, indicating that you may be taking on new debt. It may be to your advantage to use the credit lines you already have to prove your ongoing ability to manage credit responsibly. Also, start making payments on Credit lines that are 60-90 days late or not yet in collection instead of leting them go to waste. Doing so may help improve your score better than opening new accounts.
   
2. If you do have negative information on your credit report, such as late payments, a public record item (e.g., bankruptcy), or too many inquiries, you may want to pay your bills and wait. Time is on your side when trying to improve credit. There is no quick fix for bad credit, no magic snake oil pill.
   
3. Any change to the credit report could affect your scores. Simply closing two accounts not only lowers the number of open installment accounts (which generally will improve your score) but it also lowers the total number of all open accounts (which generally lowers your score). Furthermore, such an action will affect the average age of all accounts that could either raise or lower your score. As you can see, one seemingly minor change actually affects a large number of factors on the credit report. Therefore, it is impossible to provide a completely accurate assessment of how one specific action will affect a person’s credit score.
   
4. How long does it take to rebuild scores?
   Actually, you don’t rebuild scores. You rebuild your credit history, which is then reflected by credit scores. The length of time to rebuild your credit history after a negative change depends on the reason behind the change. Most negative changes in scores are due to the addition of a negative element to your credit report such as a delinquency or collection account.. These new elements will continue to affect your scores until they reach a certain age. Delinquencies remain on your credit report for seven years. Most public record items remain on your credit report for seven years, although some bankruptcies may remain for 10 years and unpaid tax liens remain for 15 years. Inquiries remain on your report for two years.

10 Strategies for building client wealth

Visit AOMTG online
or call 888-284-5225

That said, here are the top 10 things to recommend to clients looking to create wealth through commercial real estate ownership.
1. 
   
   Get organized
   
   Most competent lenders can give your borrowers a checklist of required documents immediately. Full-documentation Loan s are worth spending the extra time on to be as thorough as possible with lenders . They may also shave a couple-hundred basis points off interest rates, saving thousands of dollars during the life of the Loan .
2. 
   
   Get preapproved
   
   Your clients save time by knowing what they can afford. There is no sense wasting time looking at $3 million buildings if they can only afford a $300,000 one. lenders have become especially efficient with issuing preapprovals for commercial Loan s quickly, assuming they receive the documents they need.
3. 
   
   Know the local market
   
   Suggest a knowledgeable commercial Realtor to help your borrowers find commercial property . A competent Realtor can explain comparable sales and lease rates, demographic information, plans for growth and ideas on new development in the area.
4. 
   
   Consider smaller payment, longer terms
   
   These options preserve your clients' capital for better uses, keep their cash flow high and allow them to redeploy their capital savings into other profit-generating business activities. Small-business owners no longer have to put down 20 percent to 30 percent or accept 15-year terms with five-year fixed rates that balloon to get a good deal.
5. 
   
   Buy for the right reasons
   
   If your clients' eventual exit strategy is simply to sell or close their business, then it makes sense to buy rather than lease. Essentially, they'll be "paying themselves rent" rather than paying some absentee landlord. They'll also build equity in an appreciable asset that offers multiple tax advantages and income-sheltering opportunities.
6. 
   
   Consider adding equipment
   
   This would mean adding furniture, fixtures and equipment (FF&E). As long as the FF&E costs are a minority of overall project costs and the FF&E have long, useful lives, borrowers can amortize them on longer real estate terms. This will improve their cash flow because the equipment depreciates in shorter schedules than the Internal Revenue Service allows.
7. 
   
   Consider more square-footage
   
   This can be through a purchase or build. Your clients can often grow into the space, and this can allow them rental income until that time.
8. 
   
   Establish ownership entity
   
   Suggest that clients establish a real estate holding company, or eligible passive concern, to own their new property. If your clients decide to sell their operating businesses later, they can keep their real estate companies (and by default, the real estate) from which they can continue cashing rent checks. In this way, owning commercial property can become a great retirement asset for small-business owners.
9. 
   
   Consider business-owner partnership
   
   Tell your clients to consider partnering with another business-owner in their eligible passive concern. If they're having trouble coming up with the down payment -- and if they have a profitable business and the lender already preapproved them for a certain amount -- this solution allows them the advantages of commercial property -ownership even while they share the equity requirement with another business-owner . It's important to note, however, that their new partner's operating business will also have to be examined to commit to the Loan . Don't forget to remind your clients to always use good judgment when partnering with someone else. Make sure their operating agreement or other documents clearly stipulate the buy-out provisions ahead of time. Disagreements do occasionally occur, and corporate-entity documents are usually better at resolving disputes than personal memories.
10. 
    
    Work with a specialist
    
    Again, your clients' time is precious, so they should only deal with lenders that specialize in commercial Loan s. Involving residential lenders in their transaction sometimes can slow the process and reduce their income. It could cost them in Loan terms, fees and pricing. Remind your clients that paying a little extra money to work with an expert upfront is a great strategy that will save them money in the long run. They're paying you to represent them and to find the best overall deal. For borrowers, paying slightly more to work with a specialist can be money well-spent.
Christopher Hurn is president of Mercantile Commercial Capital, the nation's leading 90-percent Loan -to-cost commercial Loan provider. The National Association of Development Companies named him 2006 Small Business Association 504 Banker of the Year. Coleman Publishing also named him marketing guru of the year, and he is the SBA's Financial Services Champion of the Year for Florida and the 12-state Southeast region. Visit www.504Experts.com