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Episode-2342- Listener Feedback for 12-10-18 — 9 Comments

  1. Hey Jack, I just wanted to add to what Sean had contributed regarding credit. I’ve been in the finance and mortgage industry for the last 15 years and work with a lot of first time home buyers in Alabama. Improving their credit to be able to buy a house is the most common hurdle. The fastest way to improve someone’s scores that I’ve seen (assuming there’s not some major derogatory items, which would take additional time/work), is getting revolving account balances (like credit cards) down to 1% of the limit.

    So on even a secured credit card like an OpenSky visa (no affiliation), you can get the minimum $200 limit and simply use $2 each month for the biggest impact to your scores. Like Sean was saying, if you pay it off it will report $0 balance which will not benefit your scores as much as a 1% balance would. This also minimizes any interest you’d be paying. Keeping your revolving balances below 30% will give you most of this benefit, but 1% balance to limit is the best.

    I’ve seen this increase hit within as little as a few months for someone with virtually no credit, and having to take out a secured card (even over 100 pts increase). Keep in mind everyone’s situation is different and it will depend on how the rest of your credit file looks as to the timeframe and impact this will have.

    For those with NO credit, meaning a mortgage credit pull shows NO scores on any of the 3 bureaus (vs even 1 low score in which case this would not work), there is the ability to do a no score mortgage (FHA program) utilizing “alternative trade lines”.

    Essentially, you have to show 3 additional accounts you have perfect payment history on for the last 12 months (1 or which has to be your monthly rent payment; other 2 could be utility bill; insurance, cable bill, etc). There is a hit to the rate going this route but still better than the hit your take if your scores were low.

    So for those people who do pay their bills on time, just don’t have any (or enough that report to the credit bureaus monthly to get a score) because they don’t like to use credit, etc, this can be a good option to not have to use credit for a period of time simply for the purpose of financing a home. Hope those additional tips help!

  2. Hi Jack, on the freeze dryer thing.  I thought about it a couple years ago, kind of choked on the up-front costs…bought an Excalibur instead (worked for me).  Subsequently I know a guy who bought a FD, and he says it pencils for him, also some intangible value.  His important extra value is he wants to be in control of what their family eats.  I can see this, because I have immediate family that won’t/cant do MSG, has salt restrictions, and also peanut allergies.  In his case, he’s “organic” / pasture fed, local CSA type sourcing his food.

    In his case, he says he runs it about 10 times a month (your running costs are about right); they just make an extra-big batch of whatever they’re making anyway and load up the racks with the surplus.  He’s got a son who’s a long-haul trucker, they give some of this stuff to, keep in his rig in case of stuck, they’re eating what they store, and they figure they were going to spend coin on FD food anyway so might as well make it exactly what they want.

    • My problem with this, “he wants to be in control of what their family eats” is simply who the hell eats freeze dried food all the time?

      • I don’t think anybody wants that…

        Got the impression after he had a comfortable long-term stock, he was going to start a slow rotate, use some for camping/hunting/travelling, do a meal or two a month, do some renting the machine out.   I’m sure he’s experimented with it, he’s had this machine for a small while.

        I do take his point, I had to do some looking to find my source for “absolutely no possibility of peanuts anywhere in the building” FD stuff.  Many, maybe most, food companies put in the “processed in a facility that also processes peanuts” disclaimer on their packaging, probably CYA, but the last thing I’d need if I was subsisting on FD is for my kid to go all peanutty on me.

  3. I totally agree with the economics thing on freeze dryers.  I bought one simply because of the food allergies that our family has.  Made it much easier to do meals for backpacking, BSA trips, etc.  I have now started using it to preserve left overs that we can then use for long term storage stuff.

    • I totally endorse your purchase, and it doesn’t even matter “why” you did it, that why is your own.   I endorse it because you did the math, accept the math and want it anyway.  It is an informed decision.

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