WEBVTT - EYL #18 Credit Rules Everything Around Me 0:00:23.840 --> 0:00:27.080 All right, guys, welcome back to the earlier Leisure Podcast, 0:00:27.480 --> 0:00:29.640 episode eighteen eighteen. 0:00:29.720 --> 0:00:32.280 Damn really eighteen already, I'm just listening to fifteen. 0:00:33.200 --> 0:00:36.080 I'm still on fifteen actually, Yeah, time fly, time fly. 0:00:36.240 --> 0:00:38.280 So we are fresh off of our LA trip. 0:00:38.760 --> 0:00:39.440 Shout out to LA. 0:00:39.479 --> 0:00:41.120 Yeah, we talked about that later on. We had a 0:00:41.120 --> 0:00:43.760 good time out there. Shout out to California. We got 0:00:43.760 --> 0:00:44.680 a lot of love out there. 0:00:44.800 --> 0:00:48.160 Yeah. Man, it was overwhelming to see people come out. 0:00:48.560 --> 0:00:50.559 Like I said, like, we had no we didn't know 0:00:50.560 --> 0:00:53.159 anyone in LA and we left with the family of 0:00:53.200 --> 0:00:54.720 people that are with us. So that's dope. 0:00:54.760 --> 0:00:56.360 Yea, we go in detail. We're going to detail that 0:00:56.360 --> 0:00:59.680 at the end. Well, we got a very special episode today. 0:01:00.320 --> 0:01:02.600 One of the biggest requests that we have been getting 0:01:02.600 --> 0:01:05.400 for a very long time is credit. You know, I'm 0:01:05.400 --> 0:01:07.600 a financial advisor and people ask me about credit all 0:01:07.640 --> 0:01:09.880 the time and not something I really specialize in. 0:01:10.400 --> 0:01:12.479 So we we had to cover credit. 0:01:12.560 --> 0:01:17.120 Like you can't have a financial podcast and not cover credit, right, Yeah, 0:01:17.360 --> 0:01:18.320 it's mandatory. 0:01:18.480 --> 0:01:22.160 So you know, moving vehicle for any financials you do 0:01:22.200 --> 0:01:22.640 these days. 0:01:22.640 --> 0:01:22.800 Man. 0:01:24.560 --> 0:01:26.480 So when we you know, we were talking about credit, 0:01:26.520 --> 0:01:28.039 you know, we had to get a specialist, and so 0:01:28.080 --> 0:01:28.760 that's what we did. 0:01:28.800 --> 0:01:30.160 We got Andy Suco. 0:01:30.319 --> 0:01:34.560 Who is a specialist, guru, whatever you want to call 0:01:34.600 --> 0:01:36.520 it in the credit industries. Work with a lot of 0:01:36.520 --> 0:01:39.720 celebrities doing the radio, and more importantly, he works with 0:01:39.920 --> 0:01:42.520 regular everyday people and helps him improve their credit. So, 0:01:42.560 --> 0:01:45.399 first and foremost, thank you, thank you for joining us. 0:01:45.400 --> 0:01:48.480 Welcome for having me. Appreciate it. I love it, feel energy. 0:01:49.120 --> 0:01:50.800 It's different when you're listening and when you're here, like 0:01:50.840 --> 0:01:51.440 all right. 0:01:52.760 --> 0:01:53.400 Nah for sure. 0:01:53.520 --> 0:01:56.440 So so yeah, so we are going to cover a 0:01:56.480 --> 0:01:59.760 broad range of different topics today. We're gonna answer a 0:01:59.760 --> 0:02:02.200 lot of questions that we got on Instagram, and hopefully, 0:02:02.200 --> 0:02:04.400 you know, we're going to provide some very very valuable 0:02:04.400 --> 0:02:07.559 information when it comes to credit because as our merch 0:02:08.639 --> 0:02:12.200 merch line, yeah you know, every creep, yeah yeah, everything 0:02:12.280 --> 0:02:14.040 ninety four, it was cream, it was that, it was 0:02:14.080 --> 0:02:16.720 cash fos everything around me. Well we're in twenty nineteen 0:02:16.800 --> 0:02:19.120 right now, so now it's credit rules everything around me, right, 0:02:19.639 --> 0:02:21.160 So that's that's that's the age that. 0:02:21.080 --> 0:02:21.840 We're in right now. 0:02:21.880 --> 0:02:24.600 So before we start, we're going to tell some personal stories. 0:02:24.600 --> 0:02:26.040 If you listen to the podcast, you know, we'd like 0:02:26.080 --> 0:02:29.240 to actually get real personal about, you know, stuff, and 0:02:29.320 --> 0:02:32.919 it's not just like telling things third story, third person. 0:02:33.360 --> 0:02:36.000 We actually let you in on our personal lives. So 0:02:36.080 --> 0:02:37.880 me and Troy both have credit story. So Troy, you 0:02:37.880 --> 0:02:39.519 want to start off with the credit story, yeah, man. 0:02:39.440 --> 0:02:42.160 And I think we will. It's well documented the process 0:02:42.160 --> 0:02:43.720 of me getting this home, and we're talking about the 0:02:43.760 --> 0:02:47.840 appraisal and that was the first step. But before we 0:02:47.880 --> 0:02:49.720 could even get to the apraisal process, I had to 0:02:49.720 --> 0:02:53.240 get approved for a loan and a scary party. It 0:02:53.280 --> 0:02:54.840 was scary, and I was working with with a friend 0:02:54.880 --> 0:02:57.960 of mine, and you know, I was pretty familiar with 0:02:58.000 --> 0:03:02.079 the three bureaus, you know, Experience, TransUnion, and Equal Facts. 0:03:02.120 --> 0:03:04.200 And I looked at my score. You know, I had 0:03:04.280 --> 0:03:07.600 used Credit Carmer and Famous. I started with them, the 0:03:07.600 --> 0:03:09.520 famous Credit Carmer. You know, it was for free, and 0:03:09.560 --> 0:03:10.480 then I actually paid. 0:03:10.840 --> 0:03:12.680 Yeah, nothing was free in this country. 0:03:13.200 --> 0:03:17.639 Fact, So I paid the service because you know, I'm 0:03:17.680 --> 0:03:19.000 trying to get a loan. I need to be serious 0:03:19.040 --> 0:03:21.120 about this. I paid TransUnion, I paid all three girls, 0:03:21.520 --> 0:03:24.240 and I looked, I righted. You know, I had like 0:03:24.280 --> 0:03:28.240 a six ninety five average, not great but qualifies is good. 0:03:28.720 --> 0:03:30.679 And in order to get the loan, I had to 0:03:30.720 --> 0:03:33.360 have a six fifty scores. So I'm like, great, I 0:03:33.400 --> 0:03:34.440 tell my boy run the credit. 0:03:34.520 --> 0:03:34.880 It's good. 0:03:34.920 --> 0:03:37.240 And he was worried about the inquiries. I'm like, it's good. 0:03:37.280 --> 0:03:40.160 I checked them, I paid, we're good. He calls me 0:03:40.280 --> 0:03:43.240 and he says, we got a problem, and I'm like, 0:03:43.400 --> 0:03:46.040 what's the problem. He's like, the scores a five twenty 0:03:46.040 --> 0:03:49.560 five and I'm like first reaction was like, nah, this 0:03:49.640 --> 0:03:51.680 is this is identity that. This has to be identity 0:03:51.760 --> 0:03:54.280 that but no, it's not me. Like he was like, 0:03:54.320 --> 0:03:56.920 all right, look give me a social again. We're gonna 0:03:56.960 --> 0:04:00.320 run it again. But you know, the inqueries is starting up. 0:04:00.360 --> 0:04:02.440 I'm like, no, running again, that that's not me. I'm 0:04:02.440 --> 0:04:04.640 looking at my scores. I texted him. He's like, I'm 0:04:04.680 --> 0:04:08.320 not sure what was happening. So I looked the I 0:04:08.320 --> 0:04:10.520 looked at the report and I saw some things that 0:04:10.560 --> 0:04:13.960 were there, one being the United States Department of Education. 0:04:14.400 --> 0:04:16.200 They had a loan on there that you know. I 0:04:16.240 --> 0:04:17.600 was like, this doesn't even make sense. You know, I 0:04:17.640 --> 0:04:20.799 had Sally Maine. I was nabbying and combined at the Salidad. 0:04:20.920 --> 0:04:22.080 But they didn't close it. 0:04:22.120 --> 0:04:24.520 So it looked like I had some I had two 0:04:24.560 --> 0:04:29.200 loans exactly my dad to ratio. That ratio was high, 0:04:29.240 --> 0:04:32.440 so I got that knocked off. Uh, And then I 0:04:32.480 --> 0:04:35.200 started looking the other things. I started educating myself and 0:04:35.320 --> 0:04:36.760 one of the things I was looking at, I was like, wait, 0:04:36.760 --> 0:04:39.119 they have credit cards on there, but that's not mine. 0:04:39.120 --> 0:04:42.360 I'm just an authorized user for that card. So that 0:04:42.480 --> 0:04:46.719 debt was added on to it. And then I looked 0:04:46.720 --> 0:04:48.760 and I was like, you know what, why are we 0:04:49.000 --> 0:04:51.240 seeing both two different scores? And then it hit us 0:04:51.520 --> 0:04:53.680 my mortgage broken and myself. We were like, oh, they're 0:04:53.720 --> 0:04:56.520 using your fight Go score and I was like, huh, 0:04:57.040 --> 0:04:59.120 like what we have three bureaus and then using a 0:04:59.120 --> 0:05:01.480 different score. He's like, you're using your fycal scores. So 0:05:01.520 --> 0:05:03.520 then I was like, all right, well what's that. I 0:05:03.520 --> 0:05:06.559 had to educate myself again, paid again. So I became 0:05:06.680 --> 0:05:09.120 a member of my fyco dot com and when I 0:05:09.160 --> 0:05:11.120 saw it was like I sold a five twenty five. 0:05:11.160 --> 0:05:13.880 I'm like, no, this is really me, this is really me. 0:05:14.320 --> 0:05:17.080 And it opened my eyes because I was like, wait, 0:05:17.600 --> 0:05:20.640 there's different type of fighter scores right, there's like a 0:05:20.720 --> 0:05:22.320 one tooth up to which is it? 0:05:22.360 --> 0:05:25.200 Not We'll advantage ten right now, fantas ten so like 0:05:25.480 --> 0:05:27.440 so experience uses advantage ten right. 0:05:27.480 --> 0:05:30.159 So each bureau uses something different and I was just like, 0:05:30.160 --> 0:05:32.600 all right, this is crazy now, Like I'm just crazy. 0:05:32.839 --> 0:05:34.320 So I keep going. I'm digging. I'm like, I have 0:05:34.520 --> 0:05:36.960 this is a time sensitive right this this housing deal 0:05:36.960 --> 0:05:39.040 has to get done within two months. There's a lot 0:05:39.040 --> 0:05:40.880 of dominoes that will fall, Like if I don't get 0:05:40.880 --> 0:05:43.640 the loan, then you know, my brother can't move, then 0:05:43.640 --> 0:05:47.200 we can't have the house. So I started digging deeper. 0:05:47.240 --> 0:05:50.480 I see, like my utilization rate, which is how much 0:05:50.520 --> 0:05:52.359 money you're using from a credit card. And at the 0:05:52.360 --> 0:05:53.600 time I had a best Spot card. It was not 0:05:53.760 --> 0:05:56.119 crazy one thousand dollars, but I had used eight hundred 0:05:56.120 --> 0:05:58.240 and I have bought like a new TV, so like that's 0:05:58.320 --> 0:06:00.839 eighty percent of the card. I'm like, all right, well, 0:06:00.880 --> 0:06:03.360 I'm gonna pay that off. So I did. I paid 0:06:03.360 --> 0:06:05.360 it off. But on top of it, I was like, 0:06:05.440 --> 0:06:07.760 I know we're in time sensitive. So I said, I'm 0:06:07.760 --> 0:06:09.920 gonna call it best buyer the customer service I MNSA 0:06:09.920 --> 0:06:14.640 speak to to their debt department. I'm like, listen, the 0:06:14.640 --> 0:06:16.400 credit report apartment, and I'm like, look, when do you 0:06:16.440 --> 0:06:19.000 guys report to the bureaus? Like I was just bold 0:06:19.000 --> 0:06:20.320 like that, like when do you report? And they're like, well, 0:06:20.400 --> 0:06:23.720 usually don't do that. And the lady was like open, 0:06:23.800 --> 0:06:25.400 she was like, you know what, I understand the circumstance. 0:06:25.400 --> 0:06:27.599 I'll help you out. We report on the twenty first. 0:06:27.680 --> 0:06:30.320 So I was like, bat, I'm gonna have this paid 0:06:30.320 --> 0:06:32.400 by the tenth and I need you guys to report 0:06:32.400 --> 0:06:33.760 it by the fifteen. They were like, we'll do it 0:06:33.800 --> 0:06:36.039 for you because we understand the circumsift. I went to 0:06:36.080 --> 0:06:37.159 my next car. I was like, I had a major 0:06:37.160 --> 0:06:38.880 this card only five hundred dollars, but I used four 0:06:39.000 --> 0:06:41.440 hundred dollars for a suit, so my utilization right like 0:06:41.480 --> 0:06:43.719 ninety percent. Like I am gonna pay that one down. 0:06:43.760 --> 0:06:47.520 Boom did it, and they were like all right cool. 0:06:48.240 --> 0:06:49.680 When I was so I'm like, when do you report, 0:06:49.760 --> 0:06:52.600 they were like the sixth or every month, So I'm like, 0:06:52.640 --> 0:06:55.120 all right, well we're at the fourth perfect they sent 0:06:55.160 --> 0:06:57.600 thiss in. I got it in time, right, so like 0:06:58.080 --> 0:07:00.680 in a month, in a month, a month and a half, 0:07:00.760 --> 0:07:02.760 I went from like a five to twenty five to 0:07:02.800 --> 0:07:05.760 like a seven hundred just because I educated myself on 0:07:05.839 --> 0:07:09.960 it and was relentless, Like I was on the phone 0:07:10.240 --> 0:07:14.280 every day with the credit department, the credit bureaus. I 0:07:14.320 --> 0:07:16.160 was on the phone with the Department of the like 0:07:16.200 --> 0:07:18.640 at one point I wish I would recorded the conversation 0:07:18.760 --> 0:07:22.400 that one of the customer service women were like, thank you. 0:07:22.720 --> 0:07:26.280 I was giving her information because that's how well I 0:07:26.320 --> 0:07:27.880 had like studied, And it was like, you know what, 0:07:28.560 --> 0:07:32.280 pretty much like my family's like generational wealth is on 0:07:32.320 --> 0:07:34.040 the line if I don't get this this credit card. 0:07:34.440 --> 0:07:36.720 And by the grace of God, man, we got it done. 0:07:37.400 --> 0:07:39.560 So it was beautiful. But like there were a lot 0:07:39.560 --> 0:07:41.480 of people's like, hey, you should pay for this service, 0:07:41.520 --> 0:07:44.080 and I was like for what, man, Like you know, 0:07:44.120 --> 0:07:45.800 I don't have the time, Like usually I tell you 0:07:45.880 --> 0:07:48.560 it's like five to six months, and we can change 0:07:48.560 --> 0:07:50.000 your school, we can get it. I'm like, I got 0:07:50.040 --> 0:07:51.480 thirty days, you know. 0:07:51.600 --> 0:07:54.000 I mean the interesting stories of the story. Actually I 0:07:54.000 --> 0:07:56.400 don't need to cut into shot story. But a lot 0:07:56.440 --> 0:07:58.160 of that's what you said is things people need to know. 0:07:58.200 --> 0:07:59.800 Those maintenance on your credit that's things you can do 0:08:01.000 --> 0:08:04.800 and DCI detritalization, keep your debt thirty percent low debt 0:08:04.880 --> 0:08:08.440 high score, high debt low score, you know, and we'll 0:08:08.440 --> 0:08:09.200 get into that more. 0:08:09.600 --> 0:08:12.040 Yeah nah yeah, So I mean it's crazy that you 0:08:12.080 --> 0:08:13.600 was able to raise your credit score one hundred. 0:08:13.800 --> 0:08:17.080 That doesn't really had long Yeah, it was crazy. 0:08:16.760 --> 0:08:19.440 But it was. If not, you wouldn't have had a. 0:08:19.360 --> 0:08:22.000 Home, right, And like the thing is like my friends, 0:08:22.000 --> 0:08:23.800 like my friends got to watch this happened, so, like, 0:08:24.120 --> 0:08:26.680 I mean, it's well documented. So when Rashade came up 0:08:26.680 --> 0:08:28.000 with the idea like yea, you should do the house, 0:08:28.000 --> 0:08:29.800 I was like, great, all right, my credit card is good. 0:08:30.360 --> 0:08:33.360 No it wasn't. Right, quickly found out no, it wasn't. 0:08:33.480 --> 0:08:36.640 But and it's important too, Like so that FCO score. 0:08:36.920 --> 0:08:38.400 Like I was able to get a car because my 0:08:38.880 --> 0:08:40.839 the Fycal score that they would use was like maybe 0:08:40.840 --> 0:08:43.840 FICO four, right, So that was for car landing. I 0:08:43.880 --> 0:08:45.520 was able to get a car. I was able to 0:08:45.559 --> 0:08:48.240 get credit cards because they used FYCO six. Right, But 0:08:48.280 --> 0:08:51.520 if I wanted a home, I wasn't good. And that's 0:08:51.520 --> 0:08:52.920 something I don't think people really know. Man. 0:08:53.000 --> 0:08:55.480 Yeah, the whole vantage system how it works. You see 0:08:55.480 --> 0:08:57.760 the things with each credit virors, they create their own 0:08:57.880 --> 0:09:01.480 score off of the bat is reported to that, so 0:09:01.559 --> 0:09:03.640 not every bank reports the all three viewers. That's why 0:09:03.679 --> 0:09:05.640 one score is gonna be higher than the other one. 0:09:06.000 --> 0:09:07.839 But then for the real day of a mortgage, that's 0:09:07.840 --> 0:09:11.120 my fighter because it's giving you the overall picture in 0:09:11.200 --> 0:09:12.520 one snapshot, right. 0:09:12.400 --> 0:09:14.480 So that's important. So like if you're trying to get 0:09:14.480 --> 0:09:17.319 a home, make sure you check your fighter school. 0:09:17.080 --> 0:09:18.240 Now and don't wait till last minute. 0:09:18.280 --> 0:09:18.640 Don't wait. 0:09:18.720 --> 0:09:20.240 Ye gotta know what you gotta know beforehand. 0:09:20.520 --> 0:09:23.520 So my story is a little less anybody that all right, 0:09:23.640 --> 0:09:25.360 So me and trying to have a good dynamic because 0:09:25.400 --> 0:09:26.480 Choy is like a real. 0:09:28.120 --> 0:09:31.360 He's like a good guy. 0:09:31.720 --> 0:09:35.200 Yeah, he has like a model family, like you know, 0:09:35.360 --> 0:09:37.360 he has a house and you got the whole thing. 0:09:37.800 --> 0:09:41.120 I'm a little more radical, So my story is a 0:09:41.160 --> 0:09:43.480 little bit more radical. And I'm gonna tell you this 0:09:43.559 --> 0:09:46.360 story and don't try this sound par discretion. 0:09:48.400 --> 0:09:52.400 This was years ago, right, I was young and I 0:09:52.400 --> 0:09:53.720 needed money for an investment. 0:09:54.200 --> 0:09:56.280 I need like thirty thousand dollars for an investment, right, 0:09:57.080 --> 0:09:58.559 and at the time I didn't really have any money 0:09:58.640 --> 0:09:58.800 like that. 0:09:58.920 --> 0:10:01.000 I had some money saved to go into my stating. 0:10:00.840 --> 0:10:03.480 Right, So I'm like Okay, where gonna get thirty thousand 0:10:03.520 --> 0:10:03.920 dollars from? 0:10:03.960 --> 0:10:04.160 Right? 0:10:04.240 --> 0:10:07.200 So I trying to get a bank loan that didn't work, 0:10:07.400 --> 0:10:08.800 and I'm like, I really don't have anybody I can 0:10:08.840 --> 0:10:11.360 call thirty thousand dollars from. So I'm like, but I 0:10:11.400 --> 0:10:14.200 gotta get thirty thousand. So at the time, I had 0:10:14.240 --> 0:10:16.040 really good credit. I still have good credit. I have 0:10:16.120 --> 0:10:22.319 really good credit. So I got cash events from one 0:10:22.320 --> 0:10:22.760 credit card. 0:10:22.840 --> 0:10:23.360 Let me see this. 0:10:23.520 --> 0:10:25.080 So I got cash advance with one credit I was 0:10:25.080 --> 0:10:27.240 like two thousand dollars. So I'm like, you know what, 0:10:28.559 --> 0:10:31.240 run it up? So I spent two days applying to 0:10:31.320 --> 0:10:34.240 every credit card that I cant right, and I got 0:10:34.040 --> 0:10:35.720 to I got approved from every credit card that I 0:10:35.720 --> 0:10:37.720 applied for. I got like twelve credit cards in the 0:10:37.720 --> 0:10:40.320 course of a weekend, and it was like two thousand 0:10:40.320 --> 0:10:42.040 and five thousand, seven thousands. But by the end of 0:10:42.160 --> 0:10:45.800 three days, I had thirty thousand dollars in cash advances. 0:10:46.840 --> 0:10:48.960 But I didn't know what before I did that, and 0:10:49.000 --> 0:10:50.960 a lot of people still don't know. Is that so 0:10:52.040 --> 0:10:56.120 with the cash events, well, let me back it up. 0:10:56.200 --> 0:10:58.679 It was ah, they had they were they were all 0:10:58.760 --> 0:11:04.320 running specials that you can balance transfer balance transfer specials 0:11:04.320 --> 0:11:07.160 with zero percent interest for like eighteen months, twelve months, 0:11:07.160 --> 0:11:09.280 twenty four months, right, But a lot of times people 0:11:09.320 --> 0:11:11.839 don't realize that with the balanced transfers, you can actually 0:11:11.920 --> 0:11:15.280 take a cash advance and you don't pay any interest 0:11:15.360 --> 0:11:17.280 for eighteen months. Very dangerous because at the end of 0:11:17.280 --> 0:11:20.640 the eighteen months, now all of those other months have 0:11:20.960 --> 0:11:22.559 Now you got to pay the interest for the back 0:11:22.640 --> 0:11:24.559 eighteen months, so you gotta be careful with that. It's 0:11:24.559 --> 0:11:26.679 like twenty percent interest. But long story short, that it 0:11:26.679 --> 0:11:28.439 all figured out. So I said, okay, look, this is 0:11:28.480 --> 0:11:31.000 a thirty thousand dollars loan that I'm gonna get interest 0:11:31.000 --> 0:11:33.560 free for eighteen to twenty four months. If I can't 0:11:33.600 --> 0:11:38.520 flip that in two years, shame on me. So long 0:11:38.559 --> 0:11:44.080 story short, I leveraged myself to the tilt and I did. 0:11:43.960 --> 0:11:45.880 A very speculative investor. 0:11:46.520 --> 0:11:48.680 Wely go into what it was, but it was highly 0:11:48.720 --> 0:11:52.160 speculative and the results of it I'll tell on a 0:11:52.200 --> 0:11:56.040 different podcasts, But I say this to say the power 0:11:56.160 --> 0:11:59.040 of credit. I wouldn't be able to raise thirty thousand 0:11:59.080 --> 0:12:02.439 dollars in a week getting true in my twenties if 0:12:02.440 --> 0:12:03.240 it wasn't for credit. 0:12:03.320 --> 0:12:07.600 Right, So credit can be a very powerful tool if 0:12:07.640 --> 0:12:08.319 you use properly. 0:12:08.440 --> 0:12:10.640 Like I said, I don't recommend anybody do what I 0:12:10.679 --> 0:12:13.040 did because that was extremely dangerous. 0:12:13.520 --> 0:12:15.000 I hope did that. So you have to go. 0:12:15.080 --> 0:12:19.360 Yeah, but but just know that there are a lot 0:12:19.400 --> 0:12:23.440 of different tactics that you can use and you have 0:12:23.520 --> 0:12:26.520 to be careful. But it can you know, you can 0:12:26.559 --> 0:12:28.400 make you can make money off of it. The key 0:12:28.400 --> 0:12:29.840 is to make money with other people's money. 0:12:29.880 --> 0:12:32.040 That's my favorite line I think you've ever said. Hold 0:12:32.080 --> 0:12:34.800 the podcast, it was like powerful too, very dangerous. 0:12:35.000 --> 0:12:36.640 It's very dangerous. All right. 0:12:36.679 --> 0:12:38.800 So now we're gonna go into some we're gonna we're 0:12:38.800 --> 0:12:40.360 gonna start, we're gonna chop it up, and we're gonna 0:12:40.360 --> 0:12:42.880 break it down. So you talked about FCO score, right, 0:12:43.160 --> 0:12:44.760 can you just explain the FCO. 0:12:45.080 --> 0:12:47.520 So FYCO is fair isaacredit company. They don't want to 0:12:47.559 --> 0:12:50.240 creates the whole score from all three viewers for you. 0:12:50.559 --> 0:12:52.679 They use the latest vantage, but it'll be vantage ten, 0:12:52.760 --> 0:12:54.800 vantage eight that we're using that we ad vantage ten. 0:12:55.040 --> 0:12:56.600 They use the latest vantage. So what is it? What 0:12:56.640 --> 0:12:57.839 is that? Because people might not know what. 0:12:57.920 --> 0:13:00.280 So it's the way the score is created that that's 0:13:00.280 --> 0:13:03.680 put into the score. So they don't pick every single 0:13:04.600 --> 0:13:08.480 like let's say your marketing Express card. Certain cards they 0:13:08.480 --> 0:13:10.600 pick up and they create the score. So the department 0:13:10.600 --> 0:13:12.280 that's why I speak by the department store card, they 0:13:12.280 --> 0:13:14.800 don't have your credit that much, So stay away from them. 0:13:14.880 --> 0:13:16.600 Stay into the basa of the master guards and so forth. 0:13:16.600 --> 0:13:18.160 Those are the ones that create the score for you. 0:13:18.440 --> 0:13:22.120 And then your payment history, how much new credit you have, utilization, 0:13:22.240 --> 0:13:23.560 that's all that's calculated to it. 0:13:23.840 --> 0:13:27.560 Okay, okay, so all right, So as far as like, 0:13:27.600 --> 0:13:32.360 there's different factors that determine your credit score, right right, correct? 0:13:32.559 --> 0:13:34.679 What is some of the key factor is that people 0:13:34.760 --> 0:13:35.520 should be aware of. 0:13:36.320 --> 0:13:38.560 One of the major factors I see this on everyone's 0:13:38.559 --> 0:13:41.480 credit report is utilization. Just like you were talking about. 0:13:41.960 --> 0:13:44.319 You know, you need to keep your utilization under thirty percent. 0:13:44.600 --> 0:13:47.120 Once you start hitting thirty one thirty two percent of 0:13:47.160 --> 0:13:50.320 that utilization, your score drops significantly and it takes two 0:13:50.400 --> 0:13:52.520 months STU billing cycles for it to go up unless 0:13:52.520 --> 0:13:54.880 you call the bank, like you didn't ask them just 0:13:54.880 --> 0:13:56.680 to do a courtesy for your A lot of people 0:13:56.679 --> 0:13:57.960 don't know how to do that right or they don't 0:13:58.000 --> 0:13:59.920 they don't know they could do that. So one of 0:14:00.040 --> 0:14:03.079 them is a keep the utilization very low thirty percent 0:14:03.160 --> 0:14:07.280 or below. Let's see you have five cards and excuse me, 0:14:07.520 --> 0:14:10.080 and you instead of use putting all the charges on 0:14:10.080 --> 0:14:12.679 one card, split it across three cards to keep it 0:14:12.760 --> 0:14:15.480 under thirty percent. Your score will stay high. Second thing 0:14:15.559 --> 0:14:18.280 is increase six increases a year. If you do more 0:14:18.280 --> 0:14:22.400 than that, your score drops each increase two point five points. Right, 0:14:23.320 --> 0:14:25.880 and banks only give you what this the other banks 0:14:25.920 --> 0:14:28.080 give you. So if you apply for in your scenario, 0:14:28.280 --> 0:14:29.840 if you do that now, it would have been hard 0:14:29.840 --> 0:14:32.000 for you to get all those cards, right because banks 0:14:32.040 --> 0:14:35.120 are title giving our credit. So banks don't give you 0:14:35.160 --> 0:14:36.560 what this the other banks will give you. So let's 0:14:36.560 --> 0:14:39.120 say you apply for City Bank or Chase today. You 0:14:39.160 --> 0:14:41.360 got to deny it. There's an increa there. If another 0:14:41.360 --> 0:14:43.160 bank don't see a card open up, they're not going 0:14:43.200 --> 0:14:45.800 to extend the credit to you, right, So new credit 0:14:46.200 --> 0:14:46.480 all right? 0:14:46.640 --> 0:14:47.960 So so thirty percent. 0:14:48.040 --> 0:14:50.600 So if you have ten thousand dollars in credit available, 0:14:50.680 --> 0:14:52.920 only use three thousand, correct, that's pretty much. 0:14:54.360 --> 0:14:55.360 Not with one last thing. 0:14:55.360 --> 0:14:57.720 Also, like if you're trying to build your score and 0:14:57.760 --> 0:14:59.560 you're in the six fifty, you're lingering around the six 0:14:59.600 --> 0:15:01.920 to fifty range. You shouldn't pay off your card in 0:15:01.960 --> 0:15:04.160 full every month because the bank needs to make the 0:15:04.200 --> 0:15:06.320 bank needs to make a little bit of interest off 0:15:06.320 --> 0:15:09.600 of you to report okay on your credit report history. Correct, 0:15:09.680 --> 0:15:11.240 it's only until you're like a seven to fifty, a 0:15:11.360 --> 0:15:13.240 highest score you can pay your card off in full 0:15:13.280 --> 0:15:15.240 because your score is already built. But if you're in 0:15:15.240 --> 0:15:16.680 the six fifteen, you're trying to raise it. 0:15:17.360 --> 0:15:18.080 Don't pay the card off. 0:15:18.320 --> 0:15:20.480 Can you just explain that, because that's actually the first 0:15:20.520 --> 0:15:22.520 time I'm hearing that in detail. 0:15:22.640 --> 0:15:23.880 Like, so you don't pay. 0:15:23.720 --> 0:15:25.760 Off the credit card on full every month, like every 0:15:25.760 --> 0:15:27.760 other month. You could pay it off in full? Why 0:15:27.800 --> 0:15:31.080 not very well, because the bank wouldn't report okay on 0:15:31.160 --> 0:15:33.360 the credit report. On the slot that says okay, I'll 0:15:33.360 --> 0:15:36.640 say no data. No data is like no credit okay. 0:15:36.800 --> 0:15:38.120 So you have to like trick the system that will 0:15:38.120 --> 0:15:39.560 make a little bit of interest off you. Because remember, 0:15:39.560 --> 0:15:42.480 the bank's in the business making money, right, right, and 0:15:42.560 --> 0:15:43.880 that's why they charge these interest rates. 0:15:43.960 --> 0:15:46.200 So they want to see that your valued customer over 0:15:46.240 --> 0:15:48.000 a period of time exactly, right. So if I have 0:15:48.040 --> 0:15:50.520 a thousand dollars and I maxed out a thousand and 0:15:50.560 --> 0:15:52.840 I pay a thousand. That's not really showing. 0:15:52.640 --> 0:15:55.120 Anything exactly, and that's not helping them. There not making money. 0:15:55.400 --> 0:15:57.400 So there's no sentence for them to report. Okay, on 0:15:57.440 --> 0:15:58.760 the credit bord you have to report to have a 0:15:58.840 --> 0:16:02.000 zero balance. Don't have that, Okay, That green mark on 0:16:02.040 --> 0:16:04.640 your credit board is it is no data, okay, and 0:16:04.680 --> 0:16:06.520 don't The way you see that is actually from the 0:16:06.520 --> 0:16:08.720 credit report from the viewers. You wouldn't see it on 0:16:08.720 --> 0:16:11.280 like a mortgage report or on your ownline reports. When 0:16:11.280 --> 0:16:13.120 you pull the actual report from the viewers is when 0:16:13.120 --> 0:16:13.640 you see. 0:16:13.440 --> 0:16:14.880 That, all right. All right? 0:16:14.920 --> 0:16:16.760 So now all right, so you got some framework and 0:16:16.800 --> 0:16:18.840 then you got some interesting stories to me and Troy. 0:16:18.880 --> 0:16:20.320 But now we're going to we're going to dive deep 0:16:20.320 --> 0:16:23.480 into the the to the world of credit and yeah, 0:16:23.480 --> 0:16:26.680 we're going to hopefully drop some gyms that can save 0:16:26.760 --> 0:16:28.280 you guys a lot of time and money. 0:16:28.200 --> 0:16:30.560 Depends the paths. Get ready, all right, So now we're 0:16:30.560 --> 0:16:32.960 going to get into the part that most people aren't 0:16:32.960 --> 0:16:35.480 aware of on their credit pard that are actually happening. 0:16:36.040 --> 0:16:38.000 But you know, when you make a late payment or 0:16:38.040 --> 0:16:40.840 you miss a payment or you miss a few there's 0:16:40.840 --> 0:16:44.760 something that's called a derogatory that's correct, So god you 0:16:44.840 --> 0:16:47.120 could you want to explain the impact that that has 0:16:47.120 --> 0:16:48.000 and some examples of it. 0:16:48.160 --> 0:16:51.600 Well, the derogatory section. Everyone has that on a credit report, right, 0:16:51.680 --> 0:16:53.400 So what do you make a late payment? And by 0:16:53.400 --> 0:16:55.880