I like Cracker Barrel For a Long Term Investment

Financial Analyst Darnell L Williams

A lady asked me why I talk about bonds so much when there are so many other investments that we can buy?  I told her to look at the title of the blog. It is called, "Investing in Bonds." It is not call "Investing." My specialty is Bonds. It is not in Options, Insurance Contracts, or Penny Stocks.  Here is why I talk about  bonds, mainly junk bonds. My portfolio is made up of only 1 to 2 percent stock.

 

But I will tell you about a stock that I think is a good long term investment.  However, as of today, I do not own it. Cracker Barrel Old Country Store, Inc. (Symbol: CBRL) sells on the Nasdaq.  Click on the link below to see the current quote.

http://investor.crackerbarrel.com/stockquote.cfm

 

The secret to Cracker Barrel success is that they put Cracker Barrels by all the major highways. Now that people are going on vacations for the summer, they will make money. Their earnings will go up and so will the stock.  Simple isn't it?

 http://shop.crackerbarrel.com/

Items sold in the stores

Details About The Stock     

June 2, 2015

Cracker Barrel Reports Results for Third Quarter Fiscal 2015, Raises Full-Year Earnings Guidance, Increases Quarterly Dividend and Declares Special Dividend

Positive Comparable Store Traffic, Restaurant and Retail Sales

Adjusted EPS Increased 21% to $1.49

Board Increases Quarterly Dividend to $1.10 per share and Declares Special Dividend of $3.00 per share

LEBANON, Tenn.--(BUSINESS WIRE)-- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq:CBRL) today reported financial results for the third quarter of fiscal 2015 ended May 1, 2015.
   
Third-Quarter Fiscal 2015 Highlights

• Compared to the prior-year third quarter, comparable store traffic increased 1.8%, comparable store restaurant sales increased 5.2% and comparable store retail sales increased 4.5%.
• Fourteenth consecutive quarter of outperformance of the Knapp-Track^TM casual dining index.
• On a GAAP basis, operating income margin was 8.1% of total revenue, compared with 7.0% in the prior year quarter. Adjusted to exclude the impact of additional charges related to the settlement of the previously disclosed Fair Labor Standards Act ("FLSA") litigation, adjusted operating income margin was 8.2% of total revenue, compared to prior year adjusted operating income margin of 7.2%. (See non-GAAP reconciliation below.)
• On a GAAP basis, earnings per diluted share were $1.47, or $1.49 when adjusted to exclude the impact of charges related to the FLSA settlement, a 21% increase over adjusted earnings per diluted share of $1.23 in the prior year quarter.

Commenting on the third-quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "We believe that our strong sales performance in the quarter is the result of general increases in consumer spending, our strong value positioning, and the continuing success of our marketing initiatives. Our margin improvement in the quarter reflects the continuing implementation of our cost savings initiatives and the leverage of higher sales."
Third-Quarter Fiscal 2015 Results
Revenue
The Company reported total revenue of $683.7 million for the third quarter of fiscal 2015, representing an increase of 6.3% over the third quarter of the prior year. Comparable store restaurant sales increased 5.2%, including a 3.4% increase in average check. Average menu prices for the quarter were approximately 2.5% higher than in the prior year quarter. Comparable store retail sales increased 4.5% for the quarter.
Comparable store restaurant traffic, average check, and comparable store restaurant and retail sales for the fiscal months of February, March and April and for the third quarter were as follows:

				February				March				April				Third Quarter
Comparable restaurant traffic				1.9%				1.1%				2.4%				1.8%
Average check				3.4%				3.2%				3.6%				3.4%
Comparable restaurant sales				5.3%				4.3%				6.0%				5.2%
Comparable retail sales				4.6%				5.0%				4.1%				4.5%

Operating Income
GAAP operating income in the third quarter was $55.5 million, or 8.1% of total revenue. Adjusted to exclude the impact of charges related to the FLSA settlement, adjusted operating income was $56.2 million, or 8.2% of total revenue, compared with adjusted operating income of $46.3 million, or 7.2% of total revenue, in the prior year quarter. As a percentage of total revenue, reductions in labor and related expenses and store operating expenses were partially offset by an increase in cost of goods sold and general and administrative expenses.
Diluted Earnings per Share
On a GAAP basis, earnings per diluted share in the third quarter of fiscal 2015 were $1.47, compared with $1.20 in the prior year quarter. Adjusted to exclude the impact of charges related to the FLSA settlement, adjusted earnings per diluted share were $1.49, compared with adjusted earnings per diluted share of $1.23 in the prior year quarter.
Quarterly Dividend Increase and Special Dividend
The Company announced that its Board of Directors increased the quarterly dividend to $1.10 per share on the Company's common stock, which represents a 10% increase over the Company's previous quarterly dividend of $1.00. The Board of Directors also declared a special dividend of $3.00 per share on the Company's common stock. Both the quarterly dividend and the special dividend are payable on August 5, 2015, to shareholders of record on July 17, 2015.
Commenting on the quarterly and special dividend, Ms. Cochran said, "We remain committed to a balanced approach to capital allocation, through appropriate reinvestment in our business, a competitive regular quarterly dividend, and now the payment of a special dividend. The decision to increase the quarterly dividend and declare a special dividend reflects our Board's ongoing evaluation of our financial performance, capital investment and liquidity needs, and ability to deliver total shareholder return."
Fiscal 2015 Outlook
Based upon year-to-date financial performance, recent trends, and current estimates, the Company raised its full-year earnings guidance. For fiscal 2015, the Company now expects to report adjusted earnings per diluted share of between $6.60 and $6.70, which implies EPS for the fourth quarter of between $1.75 and $1.85. The Company expects total revenue for the year between $2.8 billion and $2.85 billion and an adjusted operating income margin between 8.5% and 9.0% of total revenue. The revenue projection for fiscal 2015 reflects the expected opening of six new Cracker Barrel stores over the course of the year, projected increases in comparable store restaurant sales of between 4.5% and 5.0%, and comparable store retail sales of between 3.5% and 4.0%. The Company's projections are based upon expected food commodity inflation of approximately 3.0% for the year, and approximately flat for the fourth quarter. The Company expects annual depreciation expense between $71 million and $73 million; net interest expense of approximately $17 million; and an effective tax rate of between 31% and 32%. The Company expects capital expenditures for fiscal 2015 to be approximately $95 million.
Fiscal 2015 Third-Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com on June 2, 2015 beginning at 11:00 a.m. (Eastern Time). An online replay will be available at approximately 2:00 p.m. (Eastern Time) and continue through June 15, 2015.
About Cracker Barrel
Cracker Barrel Old Country Store provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that's surprisingly unique, genuinely fun and reminiscent of America's country heritage…all at a fair price. The restaurants serve up delicious, home-style country food such as meatloaf and homemade chicken n' dumplins as well as our signature biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 634 company-owned locations in 42 states. Every Cracker Barrel store is open seven days a week with hours Sunday through Thursday, 6 a.m. - 10 p.m., and Friday and Saturday, 6 a.m. - 11 p.m. For more information, visit: crackerbarrel.com.
CBRL-F
Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is subject to completion of our financial procedures for Q3 FY 2015 and is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, weather on sales and customer travel, discretionary income or personal expenditure activity of our customers; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees in an escalating wage environment; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our substantial indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity associated with these activities; practical or psychological effects of natural disasters or terrorist acts or war and military or government responses; disruptions to our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) (In thousands, except share and per share amounts, percentages and ratios)
				Third Quarter Ended										Nine Months Ended
										Percentage										Percentage
				5/1/15			5/2/14			Change				5/1/15			5/2/14			Change
Total revenue				$683,705			$643,298			6%				$2,123,099			$1,990,930			7%
Cost of goods sold (exclusive of depreciation and rent)				216,142			201,507			7				700,592			650,451			8
Labor and other related expenses				246,805			242,977			2				740,806			718,466			3
Other store operating expenses				126,711			121,060			5				390,609			374,501			4
Store operating income				94,047			77,754			21				291,092			247,512			18
General and administrative expenses				38,570			32,541			19				108,952			99,356			10
Operating income				55,477			45,213			23				182,140			148,156			23
Interest expense				4,030			4,327			(7)				13,138			13,205			(1)
Pretax income				51,447			40,886			26				169,002			134,951			25
Provision for income taxes				16,130			12,158			33				52,498			42,008			25
Net income				$35,317			$28,728			23				$116,504			$92,943			25
Earnings per share - Basic:				$1.48			$1.21			22				$4.87			$3.90			25
Earnings per share - Diluted:				$1.47			$1.20			23				$4.85			$3.88			25
Weighted average shares:
Basic				23,937,844			23,820,309			0				23,904,945			23,816,841			0
Diluted				24,066,061			23,978,474			0				24,033,296			23,958,058			0
Ratio Analysis
Total revenue:
Restaurant				81.5%			81.4%							79.2%			79.1%
Retail				18.5			18.6							20.8			20.9
Total revenue				100.0			100.0							100.0			100.0
Cost of goods sold (exclusive of depreciation and rent)				31.6			31.3							33.0			32.7
Labor and other related expenses				36.1			37.8							34.9			36.1
Other store operating expenses				18.5			18.8							18.4			18.8
Store operating income				13.8			12.1							13.7			12.4
General and administrative expenses				5.7			5.1							5.1			5.0
Operating income				8.1			7.0							8.6			7.4
Interest expense				0.6			0.6							0.6			0.6
Pretax income				7.5			6.4							8.0			6.8
Provision for income taxes				2.3			1.9							2.5			2.1
Net income				5.2%			4.5%							5.5%			4.7%

CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share amounts)
				5/1/15				5/2/14
Assets
Cash and cash equivalents				$202,054				$88,239
Accounts receivable				25,858				16,402
Income tax receivable				8,269				3,570
Inventory				136,405				147,378
Prepaid expenses				13,826				13,148
Deferred income taxes				4,964				4,339
Property and equipment, net				1,042,898				1,034,834
Other long-term assets				66,793				60,625
Total assets				$1,501,067				$1,368,535
Liabilities and Shareholders' Equity
Accounts payable				$89,327				$71,971
Other current liabilities				226,602				240,024
Long-term debt				400,000				381,250
Interest rate swap liability				9,633				7,908
Other long-term obligations				130,083				122,223
Deferred income taxes				61,350				57,956
Shareholders' equity, net				584,072				487,203
Total liabilities and shareholders' equity				$1,501,067				$1,368,535
Common shares issued and outstanding				23,949,084				23,820,500

CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Unaudited and in thousands)
				Nine Months Ended
				5/1/15				5/2/14
Cash flows from operating activities:
Net income				$116,504				$92,943
Depreciation and amortization				53,928				50,601
Loss on disposition of property and equipment				5,413				3,159
Share-based compensation, net of excess tax benefit				7,571				5,520
Decrease (increase) in inventories				29,021				(691)
(Decrease) in accounts payable				(9,150)				(38,666)
Net changes in other assets and liabilities				13,393				(11,669)
Net cash provided by operating activities				216,680				101,197
Cash flows from investing activities:
Purchase of property and equipment, net of insurance recoveries				(60,055)				(62,337)
Proceeds from sale of property and equipment				1,563				1,572
Net cash used in investing activities				(58,492)				(60,765)
Cash flows from financing activities:
Net payments for credit facilities and other long-term obligations				0				(1)
(Taxes withheld) from exercise of share-based compensation awards, net				(3,432)				(8,430)
Excess tax benefit from share-based compensation				3,224				612
Purchases and retirement of common stock				0				(12,473)
Deferred financing costs				(3,537)				0
Dividends on common stock				(71,750)				(53,619)
Net cash used in financing activities				(75,495)				(73,911)
Net increase (decrease) in cash and cash equivalents				82,693				(33,479)
Cash and cash equivalents, beginning of period				119,361				121,718
Cash and cash equivalents, end of period				$202,054				$88,239

CRACKER BARREL OLD COUNTRY STORE, INC. Supplemental Information (Unaudited)
				Third Quarter Ended							Nine Months Ended
				5/1/15			5/2/14				5/1/15			5/2/14
Units in operation:
Open at beginning of period				634			625				631			624
Opened during period				0			2				3			3
Open at end of period				634			627				634			627
Total revenue: (In thousands)
Restaurant				$557,098			$523,557				$1,681,363			$1,573,895
Retail				126,607			119,741				441,736			417,035
Total revenue				$683,705			$643,298				$2,123,099			$1,990,930
Cost of goods sold: (In thousands)
Restaurant				$153,351			$141,757				$470,511			$432,735
Retail				62,791			59,750				230,081			217,716
Total cost of goods sold				$216,142			$201,507				$700,592			$650,451
Average unit volume: (In thousands)
Restaurant				$878.7			$836.5				$2,654.1			$2,517.9
Retail				199.7			191.3				697.3			667.2
Total				$1,078.4			$1,027.8				$3,351.4			$3,185.1
Operating weeks:				8,242			8,137				24,706			24,378

				Q3 2015 vs. Q3 2014				9 mo. 2015 vs. 9 mo. 2014
Comparable store sales period to period increase:
Restaurant				5.2%				5.5%
Retail				4.5%				4.5%
Number of locations in comparable store base				624				621

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP basis operating

results to adjusted non-GAAP operating results

(Unaudited and in thousands)

In the accompanying press release the company makes reference to As Adjusted general and administrative expenses, operating income, provision for taxes and net income per share before the impact of the Fair Labor Standards Act litigation, the retroactive restatement of the Work Opportunity Tax Credit and proxy contest expenses. The company believes that excluding these items and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and, as such may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for operating income or earnings per share information prepared in accordance with GAAP.

				Third Quarter ended May 1, 2015														Third Quarter ended May 2, 2014
				As Reported				Adjust					As Adjusted					As Reported				Adjust					As Adjusted
								(1)														(3)
Store operating income					94,047				-					94,047					77,754				-					77,754
General and administrative expenses					38,570				(769	)				37,801					32,541				(1,113	)				31,428
Operating income					55,477				769					56,246					45,213				1,113					46,326
Interest Expense					4,030				-					4,030					4,327				-					4,327
Pretax income					51,447				769					52,216					40,886				1,113					41,999
Provision for income taxes					16,130				239					16,369					12,158				346					12,504
Net income				$	35,317			$	530				$	35,847				$	28,728			$	767				$	29,495
Earning per share - Basic				$	1.48			$	0.02				$	1.50				$	1.21			$	0.03				$	1.24
Earning per share - Diluted				$	1.47			$	0.02				$	1.49				$	1.20			$	0.03				$	1.23
				Nine months ended May 1, 2015														Nine months ended May 2, 2014
				As Reported				Adjust					As Adjusted					As Reported				Adjust					As Adjusted
								(1), (2)														(3)
Store operating income					291,092				-					291,092					247,512				-					247,512
General and administrative expenses					108,952				(2,919	)				106,033					99,356				(4,313	)				95,043
Operating income					182,140				2,919					185,059					148,156				4,313					152,469
Interest Expense					13,138				-					13,138					13,205				-					13,205
Pretax income					169,002				2,919					171,921					134,951				4,313					139,264
Provision for income taxes					52,498				3,226					55,724					42,008				1,343					43,351
Net income				$	116,504			$	(307	)			$	116,197				$	92,943			$	2,970				$	95,913
Earning per share - Basic				$	4.87			$	(0.01	)			$	4.86				$	3.90			$	0.12				$	4.02
Earning per share - Diluted				$	4.85			$	(0.01	)			$	4.84				$	3.88			$	0.12				$	4.00

(1) Accrued liability and tax effects related to the settlement of the Fair Labor Standards Act litigation.

(2) Provision for taxes adjusted to exclude the $2.3 million prior year favorable effect of the retroactive reinstatement of the Work Opportunity Tax Credit.

(3) Charges and tax effects of the special meeting of shareholders or proxy contest at the annual shareholders meeting.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150602005579/en/

Cracker Barrel Old Country Store, Inc.
Investors:
Lawrence E. Hyatt, 615-235-4432
or
Media:
Janella Escobar, 615-235-4618
Source: Cracker Barrel Old Country Store, Inc.


News Provided by Acquire Media

How to buy this stock!

For lower income people, I would suggest using the Share Builder's Plan Account.  See the details below.

https://www.sharebuilder.com/

Here you can invest in the stock buying fractions of shares. That means that this account  allows you to invest with as little as  $25 per transaction buying a small fraction of a share every time you buy into this company.

You might need some professional advice

http://www.nytimes.com/2008/12/23/your-money/financial-planners/primerplanners.html?_r=0

Read the information in the above link!

Let's talk about how to pick and use Financial Planners.  It does not matter how smart you are or how poor you are. Everyone needs someone to talk to and someone to pass financial plans thru. I manage tens of thousands of dollars and I use my Board of Bankers as a sounding board.

If you have a job and the company gives you funds in your 401K, it is best that you talk to a Financial Planner so that they can direct you in saving for retirement.  Take advantage of them if the service is free or not.  Remember, you don't have to do what they say. The financial choices is still up to you.

If I would have taken advantage of them in my 30s or 40s. It could have saved me $30,000 in my 60's. Don't be a stupid Darnell Williams. Act now while you can...

******************************************************************************

This is for the people who want to make money but is afraid to do some of the things that I told you to do in my 

"Building Your Bond Portfolio with No Money Down!" series.

http://brokermakesyoubroker.blogspot.com/2015/05/part-10-building-your-bond-portfolio.html

If you want to take that class, 

"Building Your Bond Portfolio with No Money Down!",

click on the link above. At Lesson 10, click the links back to lesson 2 and start learning how to make money with no money down.

Before you start saying that I am talking about "Pie in the Sky," just know that I have been doing this for decades. I told my readers to create a portfolio in December 2014 when I created one of my many bond portfolios. 

My December 2014 Portfolio has increased 3.09% since I started. My "pie" taste pretty good!    

According to Credit Karma This is Why Your Credit Can Drop!

Credit Karma ran a publication recently that talks about why your credit report may drop in points when you may have done nothing to make it so. This is what they have to say.

 

My credit score dropped 50 points?!”

Sometimes your credit score shocks you by dropping seemingly for no reason. This can be pretty discouraging and frustrating if you can't pinpoint a cause. Although Credit Karma doesn’t calculate your credit scores, we can point out some of the factors that can affect your score. And you may be able to trace a drop in your score to one of these factors.

1. Open Credit Card Utilization

Carrying a significant amount of debt on your credit cards could be one reason why your score dropped. Your credit card utilization rate is a snapshot of the total debt you have on your credit cards divided by your total credit limit. If you're relying too much on credit, a lender could view that as a bad sign.

Possible Solution: You can try paying down debt, taking on less debt in the future or increasing your available credit on your credit cards by requesting a credit limit increase from your card issuer. Additionally, if you have been paying your credit cards responsibly, consider opening a new credit card, which will also increase your total available credit. All of these actions will effectively lower your credit utilization rate. You can also check on your current utilization by connecting your financial accounts.

2. Percent of On-Time Payments

Since creditors are trying to judge how likely you are to pay back your debt, reliability is important to them. If you miss even a single payment, your score could take a hit. The relative impact could be especially high if you've never missed a payment before.

Possible Solution: If you're not sure which payment you missed, open up your full credit reports. Click on the "Accounts" tab, and expand each account to see your 48-month payment history.

Moving forward, you can set up an automatic withdrawal from your bank account, or link your financial accounts and turn on bill reminders to help avoid missing any future payments. Continue monitoring your credit report as well to ensure all of your future payments are being reported as on-time.

3. Number of Derogatory Marks

If you experienced a major drop in your credit score, a derogatory mark could be to blame. Tax liens, accounts going into collections and bankruptcies are among the most serious things that can happen to your credit score. Since they represent major delinquencies, they can reflect poorly on your ability to take care of your finances.

Possible Solution: Check your free TransUnion and Equifax credit reports at Credit Karma to investigate whether these derogatory marks actually belong on your report. If you find that these marks are errors, you always have the option to file a dispute.

4. Average Age of Open Credit Lines

The longer you have had credit accounts open, the more creditworthy you generally appear to lenders. If you've closed an account recently, some scoring models won't factor in your closed account when determining your credit age, so your credit history may appear shortened and your score might drop. Opening a new account could also lower the average age of your accounts.

Possible Solution: Before opening or closing an account, use Credit Karma's Credit Simulator to see how the action could potentially affect your score, and be prepared for a change when you pay off a loan. If you're not sure if you need to close an account, consider the pros and cons of doing so.

5. Total Accounts

While it's not the most important part of your credit score, having a good mix of different types of credit and an appropriate number of open accounts shows lenders that you have the experience to pay off debt responsibly. If you've just paid off the only loan you have, your credit mix might look a little less diverse to lenders. Similarly, if your total number of accounts suddenly skyrockets or nosedives, that could indicate that you're financially strapped and need credit or can't afford your existing credit accounts.

  

Possible Solution: Before you open or close any accounts, you may want to check your credit report's "Overview" tab, where you can see the distribution of your open and closed accounts. Doing so will help you be aware of where you stand. If you're thinking about opening up new credit cards, don't fall for every offer out there - only open ones that you need.

6. Hard Credit Inquiries

Generally when you apply for a new form of credit, whether it's a credit card, an auto loan or a mortgage, a hard inquiry is placed on your credit report. Normally, a single inquiry would initially only drop a few points off of your score. However, if you have applied for several accounts in a short period of time, you could appear desperate for credit and the damage from those hard inquiries might add up.

With that said, some scoring models (but not all) allow for rate shopping on auto or home loans without any additional damage.

 

Possible Solution: To avoid unnecessary inquiries, only apply for credit when you need (and can afford) it, and try to focus on cards that you have a good chance of getting approved for. Credit Karma shows you your estimated Approval Odds before you apply, so you can make a more informed decision.

If you're looking for a loan and need to rate shop, consider looking through consumer reviews to narrow down your choices. You can also consider getting pre-qualified or pre-approved for credit, so you have a better sense of what you'll be approved for before you apply. By doing your homework, you may be able to avoid unnecessary hard inquiries.

Building Your Credit Knowledge

Credit scores often seem like they're shrouded in a veil of mystery. Now that you know what might have brought down your credit score, try your best to keep an eye on your credit health. Even though these situations can't always be avoided, understanding their impact could help you make more informed decisions.

 

Editorial Note: The editorial content on this site is not provided by the bank or issuer. Opinions expressed here are author's alone, not those of the bank or issuer, and have not been reviewed, approved or otherwise endorsed by the bank or issuer. Credit Karma may be compensated by companies mentioned through advertising, affiliate programs or otherwise. It is this compensation that enables Credit Karma to provide its members with services like free access to your credit scores and free monitoring of credit and financial accounts at no charge.

 

 

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

 

One member of Credit Karma said this;

 

Hello everyone Mr., Murdock, allow me to add my 2 cents here.  Credit Karma and all the other credit tracking agencies are not usually as accurate as getting your scores directly from the bureaus themselves.  Just for your FYI, if you pay off all of your debt at one time, then yes your credit score will go down and I know this sounds crazy but that's the reality of it.  The credit people don't want you to pay off everything at one time or you will be penalized by it.  Instead you have to pay things off slowly with a system. 


 This is something I have learned while learning how to manipulate my credit scores.  This is something I have discovered along the way and I will share it with you.  First, you must subscribe to a good credit reporting agency like Privacy guard that will give you "What if" scenarios and then and only then can you improve your credit score.  Paying the extra money for this service is well worth the cost of improving your credit score.  When you use the what if scenario it will tell you if your score will go up or down based on how much you pay on your debt.  You have to do this with all three credit bureaus in order to get the best possible scores from them. 


 It's all a game and you just have to know how to play the game in order to win.  I have used this system to run all my scores above 800 by not paying off my credit cards  even though I had the means to do so.  "Remember ladies and Gentlemen" it's all about numbers and you have to know how to manipulate the system in order to get the best possible scores from the credit bureaus.    I truly hope this information I have shared with you helps improve your credit score.  Try it, it really works and hit me back as I would really like to hear your comments.

 

Member No. 2 commented;

Be more specific. I just paid almost all of my credit card debt off and MY CREDIT SCORE FELL BY 50 POINTS!!! 

 

Mr., Murdock,  I beg to differ with your statement. I had a lot of debt and came by the means to pay it off. I paid off all of my cards and a couple loans that I had and my credit score went up 130 points in a month. I am now over 785 with only inquiries and average length of credit holding me back, talking to a friend of mine in your case, your score may take a small hit but will recover and increase in a month or two by paying off all your debt at one time. My only debt left is my house and Truck.

 

Member No. 1 replied;

 

Ummm, I guess with everyone complaining about Credit Karma seemed to have forgotten that it is a free service and is meant to be a guide, not an end all be all.  If you don't like it then you should spend the money and get the credit tracker memberships from one or more of the big three credit bureaus.  I'm amazed that people don't appreciate a place where you can look at your credit for no cost and get a good idea of where you might have problems.  It's free!!  Nothing that is free is going to be as good as something that you pay for.  

 

 

Mr. Murdock commented;

 

I do agree that having your score drop due to paying off a mortgage is stupid, but I'm not a banker.  I find it strange though, that people are bothered by the Credit Karma score being lower than the "big three" credit scores.  Since no financial institution I deal with uses Credit Karma to check for credit score it really shouldn't make a difference.  I've had them deny me a loan because my score was too low, only to turn around and contact me within a week to finance a loan through them identical to what I had requested but at their convenience (I never accept those offers because they don't deserve my business if that's how they want to treat me).  I'm getting to where my debts are all getting paid off, and anything I want, I will just pay cash for.

 

 

My opinion, Credit Karma;

 

The credit information found on Credit Karma should be used as a guide line, not as information that is guaranteed by the credit bureau something   

 

Let's Review Corporate Bonds 101 and Beyond

Hopefully, this Light House will help you see the way.  

This is a British firm talking about Corporate Bonds. Why am I showing you a British Video? Because US Brokerage firms tell US Citizens that Corporate Bonds are high risk, spreading misinformation for their own interest.

Here you will find that everything that I told you about individual Corporate Bonds is true. Not only that, the British tell their citizens about the difference between individual corporate bonds and bond mutual funds.

Bond funds have added risk because they do not mature. Individual Bonds mature. Here is where US brokers pull a bate and switch on Americans, getting you to believe that if you invest in individual bonds, you will loose money. Brokers make no money here.  But if you invest in corporate funds, you will do great.

If you are armed with the truth, you know that Bond Funds are the risky investments. Stay away from them.

Click on the link below or on the picture.

https://www.youtube.com/watch?v=RpOdBHay29o

Bonds explained - Buying bonds at issue and holding to maturity  

Published on Apr 25, 2013

In this 9 minute video, Patrick Gordon, Senior Investment Strategist and Head of Fixed Income, will cover Corporate Bonds; Bond Features; Bond Prices; Bonds bought at issue and held to maturity and Bond Yields.

https://www.youtube.com/watch?v=PDpTHmzWVok

Bonds explained - Buying and selling bonds on the secondary market

In this 9 minute video, Patrick Gordon, Senior Investment Strategist and Head of Fixed Income, will cover Bond Prices; Bond Yields; Yield to Maturity and why invest in Bonds.

************

If you listen to me back in December 2014, you would have bought Corporate bonds like I did. As of May 12, 2015, my profit just on these bonds was 4.344%. Most people investing in stock at the same time is looking at a loss or at best break even. 

Here is where I draw the line!

I do not trade in Corporate Bonds. I invest in corporate bonds until maturity in most cases. If you want to trade in Corporate Bonds then look at the video below. I would not recommend doing this type of investments but look at the video and maybe you will learn something!

https://www.youtube.com/watch?v=IpIhbZjeAvI

How to Trade Bonds

If you notice, this man is from Tennessee, USA. That is because when trading bonds, the commission is higher than if you buy bonds and hold them. That is an American brokerage game!

*********************************************************************

 

 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

•  Creating a Risk Policy
• Bull and Bear Markets
• What are Stocks and Bonds
• Corporate Bond Strategy
• Buying Corporate Bonds on Margin
• How to Place orders

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

More on fixing your credit.

 

Coach Me Kristin on how to raise your credit score fast!  

 

https://www.youtube.com/watch?v=fRwt-NCrH6E

Look at the video above by clicking on the picture or the link above.

Here are questions that most people have about there credit. 

Q. How do you handle a law firm that contacts you and states that a law suit will be filed against you the following day if you do not comply or make some form of payment within a 24 hour time period. Is this another way of intimidation or is this allowed under the law?

A. There are 2 things going on in this situation... There isn't any way to know for sure if they intend to actually file suit. The 2 most important factors are the size of the debt and the statute of limitations on the debt. If it's a small debt or the Statute of Limitations (SOL) has expired, then it's not very likely that they will file a law suit.

It could very well just be an intimidation tactic, especially if the debt is small. It really depends on the size of the debt and any previous communication you've had regarding the debt.

If the attorney does not intend to sue you the following day, then this would likely be considered harassment under the FDCPA § 807 (5). You should make a detailed note of this phone call and you may wish to use it as leverage later to negotiate removal of the mark from your reports or if you ever have to go to court over the debt.

Second, this is an attempt by the debt collector to get you to re-affirm the debt and restart the statute of limitations on the debt. Remember, the SOL runs from the date of delinquency and any partial payment or written acknowledgement of the debt may restart the SOL. You will have to check your state laws for specifics in your state. Never make partial payments to a California (CA) Loan unless it is part of a negotiation strategy.