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I recently read an article from a lawyer about five mistakes us consumers make.  Great info and an easy read:

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It's surprising how many consumers make the same credit scoring mistakes over and over again. In an effort to educate consumers on credit and credit scoring, we've compiled 5 common credit scoring mistakes into a list that defines each mistake and explains why they are bad and how to avoid them:

Credit Mistake #1: Closing Credit Cards Accounts

This is probably THE biggest credit mistake that consumers make. What you may find surprising is that closing credit card accounts can hurt your credit score almost as badly as missing a payment.

Not only is this the number one on the top five credit scoring mistakes, it's also number one on the list of credit myths.

Ironically, most consumers make this mistake based on poor advice from a mortgage lender as a strategy for improving their credit scores. A word of advice people, when you're dealing with something as sensitive as your credit and credit scores, make sure you do your homework before trusting some of these so called 'industry experts' before following through with their advice.

There are two important reasons why you should not close credit card accounts:

Why would this be a bad thing?

It's simple - you never want to get rid of old, positive information in your credit reports. This information actually helps your credit scores.

Credit scores want to see this positive account information. They want to see your long, perfect history of making your payments on time because this information significantly helps your credit scores.

This information significantly helps your credit scores so why would you ever want that history to disappear? You wouldn't! Here's an analogy for you: let's say you made straight A's in high school. What if the record of that perfect scholastic accomplishment were permanently deleted seven years after you graduated? Would you ever want that history deleted? Of course you wouldn't. The same is true for the credit reporting environment.

So, what should you do with old credit cards that you don't use any longer?

What you don't want to do is to let the account become inactive. When this happens, the credit card companies aren't generating any revenue for your account.

Eventually they'll close the unused account because you're more of a liability than an asset. You can prevent this from happening by using the card every few months for low dollar purchases like dinner or a tank of gas.

When the bill comes in, just pay it in full. If you do this, it will ensure that the account will never be closed and you'll always get credit for your good payment history.

So how will closing unused credit cards hurt your credit score? When you close an account, the amount of available credit decreases, which could result in a higher revolving utilization and lower your score.

Let's use the example from above and close the second unused credit card account. When you close the account, you remove it from any utilization calculation and now you're stuck with one open credit card account with a $1,000 limit and a $500 balance.

This caused your utilization to go from 25% to 50%.

Remember, you divide the total balance by the total available limit so $500 divided by $1,000 is .50 or 50%. As this percentage increases, your credit score decreases.

When you're talking about several unused credit cards with high limits, you can just imagine what closing credit card accounts could do. I've seen consumers go from a 10% utilization to almost 100% utilization because they closed all of their credit card accounts except the one they were currently using.

Big mistake.

Credit Mistake #2: Missing Payments

It doesn't take a credit scoring expert to tell you that missing payments is a bad thing. The only reason I made missing payments second to Closing Credit Card Accounts is because this one is a no brainer.

It shouldn't take a credit expert to tell you that missing payments is bad. Common sense should tell you that missing payments is bad. Credit scores are designed to predict how likely you are to miss payments in the future.

This means that they look at your credit history to view how you've managed all of your credit obligations.

Missed payments is the most powerful predictor of future late payments. The FICO score evaluates previous late payments in three different layers:

How Severe - How severe is the late payment? It doesn't take a statistician to tell you that a 30-day late isn't as bad as a 90-day late. The more severe the late payment, the more damaging it is going to be to your credit scores.

Consumers who have missed payments by a few weeks and then bring their accounts current score much better than consumers that have gone 90+ days past due. In fact, a 90-day past due is the threshold that will wreak havoc on your scores.

If you are unable to avoid a late payment, the next best option is to get those accounts current as quickly as you can.

How Recent - How long ago did the late payment occur?

If you've read some of my previous articles on credit scoring, you'll know that the last 24 months of your credit history are critical because the FICO score places more emphasis on your recent credit patterns.

This means that a late payment 6 months ago is going to carry much more weight than a late payment from 4 years ago. To recover from late payments it's important that you get current and stay current.

How Frequent - How often have the late payments occurred? Consumers that miss payments frequently are penalized much more severely than those that have missed a payment here or there in their past.

If you have a tendency to make late payments your credit scores will reflect your bad habits. Make your payments on time and you'll never have to worry about losing points in this category.

Credit Mistake #3: Settling Accounts

One of the most common mistakes consumers make is assuming that 'settling' with a lender is a great way to save a little cash.

Unfortunately, they don't realize what that a 'settled' indicator in their credit reports is actually derogatory.

"Settling" is a term used in the consumer credit industry that means accepting less than the amount you owe on an account. For example, if you owe a credit card company $5,000 but you can't pay them the full amount then they will likely make you a deal for less than that full amount. They have "settled" for less than the full amount, which is likely much less than you contractually owe them.

This may seem like a good idea because you save quite a bit of money but as far as the credit scoring models are concerned, this is just as negative as other severe late payments.

The only way to avoid the damage to your credit scores is to arrange a deal with the lender to report the account as 'paid in full' as opposed to 'settled'. If they don't agree then it's in your best interest to figure out how to pay them in full or else be prepared to suffer the damage to your credit for the next 7 years.

It's also important to understand that if the account has already made it to the collection phase, the damage is already severe and settling won't really make a difference. Settling is only an option if the account has already made it to a severe delinquency state. 

Credit Mistake #4: High Revolving Utilization on Your Credit Cards

Most consumers believe that making your payments on time is all it takes to have good credit and earn great credit scores.

What they don't realize is that almost a third of your score is determined by how much you owe on your credit card accounts. If you have high balances on your credit card accounts, you're credit scores could be severely impacted by your revolving utilization.

In order to score the most possible points in this category, I advise keeping your revolving utilization at 10% or less.

Don't be fooled when you hear some of these celebrity experts telling you that 50%, 30% or even 25% is best.

While 30% is considerably better than 50%, 10% or less is ideal. The lower the utilization percentage, the better your score will be. (*To read more about revolving utilization and how it's calculated, please read the revolving utilization bullet in Mistake #1.)

Credit Mistake #5: Excessively Applying for Credit

Whenever you apply for credit your application gives the lender permission to access your credit reports. When they pull your credit reports, it automatically posts an inquiry in your credit record. This inquiry is a record of who pulled your credit report and the date it occurred. 

Credit scoring models use inquires to determine if and when you shop for credit. Statistics show that consumers who have more inquiries are higher credit risks than those with fewer inquiries.

It is for this reason that the more inquiries you have, the more points you lose in the credit score calculation.

The exact point value of inquiries is a much argued topic and is impossible to give an exact point value because it really depends on all of the other information included in your individual credit file.

The best strategy would be to only apply for credit when you absolutely need to.

This means that you should avoid those in store offers of "10% off" in exchange for applying for a store credit card. This may sound like a great idea but the reality is that while you may save a few bucks on your purchase, those inquiries could end up costing you a lower credit score which could result in higher interest rates on auto or mortgage loans in the future.

There you have it. Now that you know the top 5 credit mistakes, you can avoid making the same mistakes that so many other consumers make.

Realty Source will anounce on Monday a new program for those over the age of 62.  No credit check, employment verification, repo's okay and vertually no turn downs.  Call for details if you can't wait or you missed my next blog.  Remeber Realty Source is your source for homes and loans.

Let me introduce you to Dixon, California.

Dixon, the Heartland of California is the city with heart. More than an exit off Highway 80 where you can stop and buy gas for your car, there is a pleasant downtown region with shops, restaurants, a library, church and even a railroad stop where passenger trains pass through. 

From the beautiful sculpture in the Women's Improvement Park of three children sitting on a log, to the fruit markets with old fashioned lettering and signage, Dixon exemplifies. Americana.  From its earliest beginnings Dixon has been a commercial and transportation hub in California's Sacramento Valley. Today Dixon, located in Solano County, the fastest growing of the nine San Francisco Bay Area counties along the Transcontinental railway corridor maintains its small town charm while providing easy access to the attractions of Sacramento and San Francisco, the Napa and Sonoma wine regions, the rugged Northern California Coast and Lake Tahoe.

Dixon is blessed with a diverse mix of academic and unskilled labor jobs. The combination of these forces makes Dixon and the surrounding region fascinating in terms of their residents. For those passing through with a passion for soaking up the local flavor, don't be surprised that locals don't know what the fuss is all about. For those coming from tear down regions such as the Mediterranean-styled beach communities in Orange County, life could not be more uniform or boring than seeing the identical stucco properties in varying shades of beige.

Located just five miles away are the academic and cultural resources of the University of California at Davis.  Reasonable land prices, excellent schools and an affordable cost of living as well as it's convenient location make Dixon a perfect place to live, work, and to locate a business and perhaps, even make a new friend at the local Pub.

I thought people new to the area might be interested in our local employers.

University of California - 16,000 employees
WalMart - 400 employees
Dixon Canning Corporation - 350 employees
Cardinal Health - 300 employees
Kragen Distribution Center - 270 employees
Genentech (Bio Pharmaceuticals) - 250 employees
The Gymboree, Inc. North American Distribution Center 200 employees
First Northern Bank - 160 employees
Superior Meat Packing - 160 employees
Altec Industries (Hydraulic Lift Vehicles) - 140 employees
Calgene/ Monsanto (Bio-Ag) - 130 employees
Basalite Block (Concrete Products) - 100 employees
Milgard Tempering (Glass Tempering) - 90 employees
Schilling Robotic Systems (Undersea Robots) - 82 employees
Integrated Surgical Systems (Robotic Surgical Equipment) 75 employees
Premier Packaging (Styrofoam Products) - 70 employees
Chiron (Bio Pharmaceuticals) - 37 employees
Air Perfection (compressed air systems) - 27 employees
Hemostat Labs (Plasma and Medical Culturing Products) 25 employees
Salad Cosmo (Vegetable Sprout and Seed Products, Seed Technology R & D) – 9 employees

Of course this isn't all but it's a start.

Yes, it's true.

Before Dixon's current fame as "Lamb Town" the town was known as "The Dairy City.” In the early 1900's the Worlds Largest Certified Dairy was operating in the Dixon area with over 300 cows. This modern operation was enhanced by new innovations in dairy farming such as hydraulic pumps. By 1920 the area had over thirty dairy farmers taking advantage of the temperate climate and abundant hay fields.

Dixon From The Air

Dixon California is located in Solano County 23 miles from the capital city: Sacramento. Dixon recently made the Guinness Book of World Records by hosting the World's Largest Corn Maze in 2007. This "amazing" maze covered 40 acres at Cool Patch Pumpkins and included a phone line for visitors to use should they become lost in the miles of twists and turns.

Corn Maze in 2007

  For more information about Solano County Taxes visit:http://www.solonacounty.com

 If your home is your primary residence California property tax laws provide two alternatives by which the homeowners ’property tax exemption,up to a maximum of $7,000 of assessed value,may be granted.

 Download the form and mail it in before Feb. 15th.  http://www.solanocounty.com/SubSection/SubSection.asp?NavID=792

This is an exciting program if you are a first time home buyer.  Check it out.

Dixon Redevelopment Agency First Time Home Buyer Program

This is a 30 year loan offered at 3% simple interest.  Don't miss out

• Home must be located in Dixon
• First-time home buyers (applicant cannot have owned a home in the past 3 years certain exceptions apply.)
• Sales price may not exceed $362,790
• Minimum 3% borrower contribution (gift fund acceptable)
• All participants must attend a homebuyer education course and submit a certificate of completion.
• There are earning restrictions -please call for more information

Loans are available on a first-come, first serve basis.  Call today for an application.

(530) 750-7076 ext 215 or (916) 231-3374

Dixon DPA

Down Payment Assistance is available up to $40,000 (707) 678-7000

We love our Seniors and have a lot to offer to enrich their lives.

Bingo, line dancing, game days, billards, fine art class, watercolor class,arts and crafts, out to lunch bunch trips, birthday parties, potlucks, trips and much more!

Meals on wheels of Solano County - Call 1-800-788-5114

Senior Services Manager -Leonard McKindsey at 707-469-6679

Senior/Multi Use Center

201 S. Fifth Street, Dixon, Ca 707-678-7022

Dixon Senior Club meets on the first Tuesday of each month at 12:30 p.m.  If you would like to know more about this wonderful group of people please call 678-7022

We have many more services and activities I'll post more as I have time.

We have a lot of activities plannned in Dixon this Summer.  I'll list a few.

Movies in the Park- (Begins at Dusk) at the Women's Improvement Club Park beside the Library in Downtown Dixon.

Free for all

1. June 26   Shrek III
2. July 10    Bee Movie
3. July 24    The Water Horse:Legend of the Deep
4. August 7  Ant Bully

Camp Funtastic

Camp Funtastic Summer Day Camp is for children ages 6-12.  Activities include swimming,arts & crafts, games, sports, field trips, music, science and special events.  Campers should bring a sack lunch and come prepared to swim everyday.

Location: Old Dixon High School Room #14/15

Time: 8am-5pm (full day) 12-5 (half day)

Contact Christina at 678-7440 for more information

Youth Indoor Soccer

Team registration packets will at City Hall

Location Jim B. Stevens Arena

Registration Deadline is June 9th

This is just a sampling of what is being offered more to come.

Housing News-

We are seeing a boom in real estate sales in the last two weeks. Many of the available homes in Dixon have been sold or are pending.  As always Dixon has limited inventory. 

Local News-

The weather has been great this week.  A relief from last week's heat.  Memorial Day is this weekend and I know many BBQ's are being planned. The kids are excited about their upcoming vacation.  Just a reminder there is a fabulous swim team located right here in Dixon  "The Dixon Dolphins" that is always looking for new members. http://www.dixondolphins.com/

Capitol Opera Sacramento/Davis Makes its debut performance at the new Dixon Performing Arts Theater, 555 College Way in Dixon, with a presentation of Madama Butterfly.  Performance dates are June 19 & 21 at 7:30 and June 22 at 3:00 p.m.  Tickets are available by calling 1-877-Tix-Leap (894- 5327) or visiting the website at www.capopera.com/events.html

Sunday, May 18, 2008

 Hello, My name is Rafael Reyes Spindola and I would like to take this opportunity to introduce myself as the owner and founder of Realty Source "Your eSource for Homes and Loans."  I will soon be offering even more services to my fellow baby boomers... so tune in for more exciting news from Realty Source.

    So what's up in Dixon? 

We only have a couple weeks left of school.  The city parks and pool's are spruced up and ready for all the summer fun. 

Our handy ecofriendly blue toters have now been delivered and the program is in full swing. If you have any questions concerning their placement or pickup check out this link.

Last weekend was Dixon's annual Mayfair and as always was very successful.  Not to mention FUN!  The parade through town was well attended and the weather was great.  Parking was not a problem this year since the new DHS high school kindly sponsored additional room.

Tuesday May the 20th a joint band concert will be held at the new DHS theater.  Both C.A. Jacobs and The Dixon High School Band will be performing.

Remember Parents and Students attending the Math Academy offered by UC Davis will have a mandatory meeting at DHS on Weds May 21st at 6:30.For up to date information about the exciting event's scheduled at our new DHS theater visit the Performing Arts website.

Dixon School Information   

Dixon Upcoming Events.      

Dixon News and Weather

Remember Dixon is a controlled growth community.  Right now is the perfect time to purchase a home in this unique and highly desired area!  Let me show you all Dixon has to offer. While we have homes available.

Once again it is vacation time and for the parents, it's time to look for that house in beautiful Dixon school districts.