Speaker 1: All right, guys, welcome back to the earlier Leisure Podcast,
Speaker 1: episode eighteen eighteen.
Speaker 2: Damn really eighteen already, I'm just listening to fifteen.
Speaker 3: I'm still on fifteen actually, Yeah, time fly, time fly.
Speaker 3: So we are fresh off of our LA trip.
Speaker 4: Shout out to LA.
Speaker 1: Yeah, we talked about that later on. We had a
Speaker 1: good time out there. Shout out to California. We got
Speaker 1: a lot of love out there.
Speaker 4: Yeah. Man, it was overwhelming to see people come out.
Speaker 4: Like I said, like, we had no we didn't know
Speaker 4: anyone in LA and we left with the family of
Speaker 4: people that are with us. So that's dope.
Speaker 1: Yea, we go in detail. We're going to detail that
Speaker 1: at the end. Well, we got a very special episode today.
Speaker 1: One of the biggest requests that we have been getting
Speaker 1: for a very long time is credit. You know, I'm
Speaker 1: a financial advisor and people ask me about credit all
Speaker 1: the time and not something I really specialize in.
Speaker 3: So we we had to cover credit.
Speaker 1: Like you can't have a financial podcast and not cover credit, right, Yeah,
Speaker 1: it's mandatory.
Speaker 2: So you know, moving vehicle for any financials you do
Speaker 2: these days.
Speaker 3: Man.
Speaker 1: So when we you know, we were talking about credit,
Speaker 1: you know, we had to get a specialist, and so
Speaker 1: that's what we did.
Speaker 3: We got Andy Suco.
Speaker 1: Who is a specialist, guru, whatever you want to call
Speaker 1: it in the credit industries. Work with a lot of
Speaker 1: celebrities doing the radio, and more importantly, he works with
Speaker 1: regular everyday people and helps him improve their credit. So,
Speaker 1: first and foremost, thank you, thank you for joining us.
Speaker 2: Welcome for having me. Appreciate it. I love it, feel energy.
Speaker 2: It's different when you're listening and when you're here, like
Speaker 2: all right.
Speaker 3: Nah for sure.
Speaker 1: So so yeah, so we are going to cover a
Speaker 1: broad range of different topics today. We're gonna answer a
Speaker 1: lot of questions that we got on Instagram, and hopefully,
Speaker 1: you know, we're going to provide some very very valuable
Speaker 1: information when it comes to credit because as our merch
Speaker 1: merch line, yeah you know, every creep, yeah yeah, everything
Speaker 1: ninety four, it was cream, it was that, it was
Speaker 1: cash fos everything around me. Well we're in twenty nineteen
Speaker 1: right now, so now it's credit rules everything around me, right,
Speaker 1: So that's that's that's the age that.
Speaker 3: We're in right now.
Speaker 1: So before we start, we're going to tell some personal stories.
Speaker 1: If you listen to the podcast, you know, we'd like
Speaker 1: to actually get real personal about, you know, stuff, and
Speaker 1: it's not just like telling things third story, third person.
Speaker 1: We actually let you in on our personal lives. So
Speaker 1: me and Troy both have credit story. So Troy, you
Speaker 1: want to start off with the credit story, yeah, man.
Speaker 4: And I think we will. It's well documented the process
Speaker 4: of me getting this home, and we're talking about the
Speaker 4: appraisal and that was the first step. But before we
Speaker 4: could even get to the apraisal process, I had to
Speaker 4: get approved for a loan and a scary party. It
Speaker 4: was scary, and I was working with with a friend
Speaker 4: of mine, and you know, I was pretty familiar with
Speaker 4: the three bureaus, you know, Experience, TransUnion, and Equal Facts.
Speaker 4: And I looked at my score. You know, I had
Speaker 4: used Credit Carmer and Famous. I started with them, the
Speaker 4: famous Credit Carmer. You know, it was for free, and
Speaker 4: then I actually paid.
Speaker 3: Yeah, nothing was free in this country.
Speaker 4: Fact, So I paid the service because you know, I'm
Speaker 4: trying to get a loan. I need to be serious
Speaker 4: about this. I paid TransUnion, I paid all three girls,
Speaker 4: and I looked, I righted. You know, I had like
Speaker 4: a six ninety five average, not great but qualifies is good.
Speaker 4: And in order to get the loan, I had to
Speaker 4: have a six fifty scores. So I'm like, great, I
Speaker 4: tell my boy run the credit.
Speaker 3: It's good.
Speaker 4: And he was worried about the inquiries. I'm like, it's good.
Speaker 4: I checked them, I paid, we're good. He calls me
Speaker 4: and he says, we got a problem, and I'm like,
Speaker 4: what's the problem. He's like, the scores a five twenty
Speaker 4: five and I'm like first reaction was like, nah, this
Speaker 4: is this is identity that. This has to be identity
Speaker 4: that but no, it's not me. Like he was like,
Speaker 4: all right, look give me a social again. We're gonna
Speaker 4: run it again. But you know, the inqueries is starting up.
Speaker 4: I'm like, no, running again, that that's not me. I'm
Speaker 4: looking at my scores. I texted him. He's like, I'm
Speaker 4: not sure what was happening. So I looked the I
Speaker 4: looked at the report and I saw some things that
Speaker 4: were there, one being the United States Department of Education.
Speaker 4: They had a loan on there that you know. I
Speaker 4: was like, this doesn't even make sense. You know, I
Speaker 4: had Sally Maine. I was nabbying and combined at the Salidad.
Speaker 3: But they didn't close it.
Speaker 4: So it looked like I had some I had two
Speaker 4: loans exactly my dad to ratio. That ratio was high,
Speaker 4: so I got that knocked off. Uh, And then I
Speaker 4: started looking the other things. I started educating myself and
Speaker 4: one of the things I was looking at, I was like, wait,
Speaker 4: they have credit cards on there, but that's not mine.
Speaker 4: I'm just an authorized user for that card. So that
Speaker 4: debt was added on to it. And then I looked
Speaker 4: and I was like, you know what, why are we
Speaker 4: seeing both two different scores? And then it hit us
Speaker 4: my mortgage broken and myself. We were like, oh, they're
Speaker 4: using your fight Go score and I was like, huh,
Speaker 4: like what we have three bureaus and then using a
Speaker 4: different score. He's like, you're using your fycal scores. So
Speaker 4: then I was like, all right, well what's that. I
Speaker 4: had to educate myself again, paid again. So I became
Speaker 4: a member of my fyco dot com and when I
Speaker 4: saw it was like I sold a five twenty five.
Speaker 4: I'm like, no, this is really me, this is really me.
Speaker 4: And it opened my eyes because I was like, wait,
Speaker 4: there's different type of fighter scores right, there's like a
Speaker 4: one tooth up to which is it?
Speaker 2: Not We'll advantage ten right now, fantas ten so like
Speaker 2: so experience uses advantage ten right.
Speaker 4: So each bureau uses something different and I was just like,
Speaker 4: all right, this is crazy now, Like I'm just crazy.
Speaker 4: So I keep going. I'm digging. I'm like, I have
Speaker 4: this is a time sensitive right this this housing deal
Speaker 4: has to get done within two months. There's a lot
Speaker 4: of dominoes that will fall, Like if I don't get
Speaker 4: the loan, then you know, my brother can't move, then
Speaker 4: we can't have the house. So I started digging deeper.
Speaker 4: I see, like my utilization rate, which is how much
Speaker 4: money you're using from a credit card. And at the
Speaker 4: time I had a best Spot card. It was not
Speaker 4: crazy one thousand dollars, but I had used eight hundred
Speaker 4: and I have bought like a new TV, so like that's
Speaker 4: eighty percent of the card. I'm like, all right, well,
Speaker 4: I'm gonna pay that off. So I did. I paid
Speaker 4: it off. But on top of it, I was like,
Speaker 4: I know we're in time sensitive. So I said, I'm
Speaker 4: gonna call it best buyer the customer service I MNSA
Speaker 4: speak to to their debt department. I'm like, listen, the
Speaker 4: credit report apartment, and I'm like, look, when do you
Speaker 4: guys report to the bureaus? Like I was just bold
Speaker 4: like that, like when do you report? And they're like, well,
Speaker 4: usually don't do that. And the lady was like open,
Speaker 4: she was like, you know what, I understand the circumstance.
Speaker 4: I'll help you out. We report on the twenty first.
Speaker 4: So I was like, bat, I'm gonna have this paid
Speaker 4: by the tenth and I need you guys to report
Speaker 4: it by the fifteen. They were like, we'll do it
Speaker 4: for you because we understand the circumsift. I went to
Speaker 4: my next car. I was like, I had a major
Speaker 4: this card only five hundred dollars, but I used four
Speaker 4: hundred dollars for a suit, so my utilization right like
Speaker 4: ninety percent. Like I am gonna pay that one down.
Speaker 4: Boom did it, and they were like all right cool.
Speaker 4: When I was so I'm like, when do you report,
Speaker 4: they were like the sixth or every month, So I'm like,
Speaker 4: all right, well we're at the fourth perfect they sent
Speaker 4: thiss in. I got it in time, right, so like
Speaker 4: in a month, in a month, a month and a half,
Speaker 4: I went from like a five to twenty five to
Speaker 4: like a seven hundred just because I educated myself on
Speaker 4: it and was relentless, Like I was on the phone
Speaker 4: every day with the credit department, the credit bureaus. I
Speaker 4: was on the phone with the Department of the like
Speaker 4: at one point I wish I would recorded the conversation
Speaker 4: that one of the customer service women were like, thank you.
Speaker 4: I was giving her information because that's how well I
Speaker 4: had like studied, And it was like, you know what,
Speaker 4: pretty much like my family's like generational wealth is on
Speaker 4: the line if I don't get this this credit card.
Speaker 4: And by the grace of God, man, we got it done.
Speaker 4: So it was beautiful. But like there were a lot
Speaker 4: of people's like, hey, you should pay for this service,
Speaker 4: and I was like for what, man, Like you know,
Speaker 4: I don't have the time, Like usually I tell you
Speaker 4: it's like five to six months, and we can change
Speaker 4: your school, we can get it. I'm like, I got
Speaker 4: thirty days, you know.
Speaker 2: I mean the interesting stories of the story. Actually I
Speaker 2: don't need to cut into shot story. But a lot
Speaker 2: of that's what you said is things people need to know.
Speaker 2: Those maintenance on your credit that's things you can do
Speaker 2: and DCI detritalization, keep your debt thirty percent low debt
Speaker 2: high score, high debt low score, you know, and we'll
Speaker 2: get into that more.
Speaker 1: Yeah nah yeah, So I mean it's crazy that you
Speaker 1: was able to raise your credit score one hundred.
Speaker 4: That doesn't really had long Yeah, it was crazy.
Speaker 3: But it was. If not, you wouldn't have had a.
Speaker 4: Home, right, And like the thing is like my friends,
Speaker 4: like my friends got to watch this happened, so, like,
Speaker 4: I mean, it's well documented. So when Rashade came up
Speaker 4: with the idea like yea, you should do the house,
Speaker 4: I was like, great, all right, my credit card is good.
Speaker 4: No it wasn't. Right, quickly found out no, it wasn't.
Speaker 4: But and it's important too, Like so that FCO score.
Speaker 4: Like I was able to get a car because my
Speaker 4: the Fycal score that they would use was like maybe
Speaker 4: FICO four, right, So that was for car landing. I
Speaker 4: was able to get a car. I was able to
Speaker 4: get credit cards because they used FYCO six. Right, But
Speaker 4: if I wanted a home, I wasn't good. And that's
Speaker 4: something I don't think people really know. Man.
Speaker 2: Yeah, the whole vantage system how it works. You see
Speaker 2: the things with each credit virors, they create their own
Speaker 2: score off of the bat is reported to that, so
Speaker 2: not every bank reports the all three viewers. That's why
Speaker 2: one score is gonna be higher than the other one.
Speaker 2: But then for the real day of a mortgage, that's
Speaker 2: my fighter because it's giving you the overall picture in
Speaker 2: one snapshot, right.
Speaker 4: So that's important. So like if you're trying to get
Speaker 4: a home, make sure you check your fighter school.
Speaker 3: Now and don't wait till last minute.
Speaker 4: Don't wait.
Speaker 3: Ye gotta know what you gotta know beforehand.
Speaker 1: So my story is a little less anybody that all right,
Speaker 1: So me and trying to have a good dynamic because
Speaker 1: Choy is like a real.
Speaker 3: He's like a good guy.
Speaker 1: Yeah, he has like a model family, like you know,
Speaker 1: he has a house and you got the whole thing.
Speaker 1: I'm a little more radical, So my story is a
Speaker 1: little bit more radical. And I'm gonna tell you this
Speaker 1: story and don't try this sound par discretion.
Speaker 3: This was years ago, right, I was young and I
Speaker 3: needed money for an investment.
Speaker 1: I need like thirty thousand dollars for an investment, right,
Speaker 1: and at the time I didn't really have any money
Speaker 1: like that.
Speaker 3: I had some money saved to go into my stating.
Speaker 1: Right, So I'm like Okay, where gonna get thirty thousand
Speaker 1: dollars from?
Speaker 3: Right?
Speaker 1: So I trying to get a bank loan that didn't work,
Speaker 1: and I'm like, I really don't have anybody I can
Speaker 1: call thirty thousand dollars from. So I'm like, but I
Speaker 1: gotta get thirty thousand. So at the time, I had
Speaker 1: really good credit. I still have good credit. I have
Speaker 1: really good credit. So I got cash events from one
Speaker 1: credit card.
Speaker 3: Let me see this.
Speaker 1: So I got cash advance with one credit I was
Speaker 1: like two thousand dollars. So I'm like, you know what,
Speaker 1: run it up? So I spent two days applying to
Speaker 1: every credit card that I cant right, and I got
Speaker 1: to I got approved from every credit card that I
Speaker 1: applied for. I got like twelve credit cards in the
Speaker 1: course of a weekend, and it was like two thousand
Speaker 1: and five thousand, seven thousands. But by the end of
Speaker 1: three days, I had thirty thousand dollars in cash advances.
Speaker 1: But I didn't know what before I did that, and
Speaker 1: a lot of people still don't know. Is that so
Speaker 1: with the cash events, well, let me back it up.
Speaker 1: It was ah, they had they were they were all
Speaker 1: running specials that you can balance transfer balance transfer specials
Speaker 1: with zero percent interest for like eighteen months, twelve months,
Speaker 1: twenty four months, right, But a lot of times people
Speaker 1: don't realize that with the balanced transfers, you can actually
Speaker 1: take a cash advance and you don't pay any interest
Speaker 1: for eighteen months. Very dangerous because at the end of
Speaker 1: the eighteen months, now all of those other months have
Speaker 1: Now you got to pay the interest for the back
Speaker 1: eighteen months, so you gotta be careful with that. It's
Speaker 1: like twenty percent interest. But long story short, that it
Speaker 1: all figured out. So I said, okay, look, this is
Speaker 1: a thirty thousand dollars loan that I'm gonna get interest
Speaker 1: free for eighteen to twenty four months. If I can't
Speaker 1: flip that in two years, shame on me. So long
Speaker 1: story short, I leveraged myself to the tilt and I did.
Speaker 3: A very speculative investor.
Speaker 1: Wely go into what it was, but it was highly
Speaker 1: speculative and the results of it I'll tell on a
Speaker 1: different podcasts, But I say this to say the power
Speaker 1: of credit. I wouldn't be able to raise thirty thousand
Speaker 1: dollars in a week getting true in my twenties if
Speaker 1: it wasn't for credit.
Speaker 3: Right, So credit can be a very powerful tool if
Speaker 3: you use properly.
Speaker 1: Like I said, I don't recommend anybody do what I
Speaker 1: did because that was extremely dangerous.
Speaker 4: I hope did that. So you have to go.
Speaker 1: Yeah, but but just know that there are a lot
Speaker 1: of different tactics that you can use and you have
Speaker 1: to be careful. But it can you know, you can
Speaker 1: make you can make money off of it. The key
Speaker 1: is to make money with other people's money.
Speaker 4: That's my favorite line I think you've ever said. Hold
Speaker 4: the podcast, it was like powerful too, very dangerous.
Speaker 3: It's very dangerous. All right.
Speaker 1: So now we're gonna go into some we're gonna we're
Speaker 1: gonna start, we're gonna chop it up, and we're gonna
Speaker 1: break it down. So you talked about FCO score, right,
Speaker 1: can you just explain the FCO.
Speaker 2: So FYCO is fair isaacredit company. They don't want to
Speaker 2: creates the whole score from all three viewers for you.
Speaker 2: They use the latest vantage, but it'll be vantage ten,
Speaker 2: vantage eight that we're using that we ad vantage ten.
Speaker 3: They use the latest vantage. So what is it? What
Speaker 3: is that? Because people might not know what.
Speaker 2: So it's the way the score is created that that's
Speaker 2: put into the score. So they don't pick every single
Speaker 2: like let's say your marketing Express card. Certain cards they
Speaker 2: pick up and they create the score. So the department
Speaker 2: that's why I speak by the department store card, they
Speaker 2: don't have your credit that much, So stay away from them.
Speaker 2: Stay into the basa of the master guards and so forth.
Speaker 2: Those are the ones that create the score for you.
Speaker 2: And then your payment history, how much new credit you have, utilization,
Speaker 2: that's all that's calculated to it.
Speaker 1: Okay, okay, so all right, So as far as like,
Speaker 1: there's different factors that determine your credit score, right right, correct?
Speaker 1: What is some of the key factor is that people
Speaker 1: should be aware of.
Speaker 2: One of the major factors I see this on everyone's
Speaker 2: credit report is utilization. Just like you were talking about.
Speaker 2: You know, you need to keep your utilization under thirty percent.
Speaker 2: Once you start hitting thirty one thirty two percent of
Speaker 2: that utilization, your score drops significantly and it takes two
Speaker 2: months STU billing cycles for it to go up unless
Speaker 2: you call the bank, like you didn't ask them just
Speaker 2: to do a courtesy for your A lot of people
Speaker 2: don't know how to do that right or they don't
Speaker 2: they don't know they could do that. So one of
Speaker 2: them is a keep the utilization very low thirty percent
Speaker 2: or below. Let's see you have five cards and excuse me,
Speaker 2: and you instead of use putting all the charges on
Speaker 2: one card, split it across three cards to keep it
Speaker 2: under thirty percent. Your score will stay high. Second thing
Speaker 2: is increase six increases a year. If you do more
Speaker 2: than that, your score drops each increase two point five points. Right,
Speaker 2: and banks only give you what this the other banks
Speaker 2: give you. So if you apply for in your scenario,
Speaker 2: if you do that now, it would have been hard
Speaker 2: for you to get all those cards, right because banks
Speaker 2: are title giving our credit. So banks don't give you
Speaker 2: what this the other banks will give you. So let's
Speaker 2: say you apply for City Bank or Chase today. You
Speaker 2: got to deny it. There's an increa there. If another
Speaker 2: bank don't see a card open up, they're not going
Speaker 2: to extend the credit to you, right, So new credit
Speaker 2: all right?
Speaker 3: So so thirty percent.
Speaker 1: So if you have ten thousand dollars in credit available,
Speaker 1: only use three thousand, correct, that's pretty much.
Speaker 3: Not with one last thing.
Speaker 2: Also, like if you're trying to build your score and
Speaker 2: you're in the six fifty, you're lingering around the six
Speaker 2: to fifty range. You shouldn't pay off your card in
Speaker 2: full every month because the bank needs to make the
Speaker 2: bank needs to make a little bit of interest off
Speaker 2: of you to report okay on your credit report history. Correct,
Speaker 2: it's only until you're like a seven to fifty, a
Speaker 2: highest score you can pay your card off in full
Speaker 2: because your score is already built. But if you're in
Speaker 2: the six fifteen, you're trying to raise it.
Speaker 3: Don't pay the card off.
Speaker 1: Can you just explain that, because that's actually the first
Speaker 1: time I'm hearing that in detail.
Speaker 3: Like, so you don't pay.
Speaker 2: Off the credit card on full every month, like every
Speaker 2: other month. You could pay it off in full? Why
Speaker 2: not very well, because the bank wouldn't report okay on
Speaker 2: the credit report. On the slot that says okay, I'll
Speaker 2: say no data. No data is like no credit okay.
Speaker 2: So you have to like trick the system that will
Speaker 2: make a little bit of interest off you. Because remember,
Speaker 2: the bank's in the business making money, right, right, and
Speaker 2: that's why they charge these interest rates.
Speaker 4: So they want to see that your valued customer over
Speaker 4: a period of time exactly, right. So if I have
Speaker 4: a thousand dollars and I maxed out a thousand and
Speaker 4: I pay a thousand. That's not really showing.
Speaker 2: Anything exactly, and that's not helping them. There not making money.
Speaker 2: So there's no sentence for them to report. Okay, on
Speaker 2: the credit bord you have to report to have a
Speaker 2: zero balance. Don't have that, Okay, That green mark on
Speaker 2: your credit board is it is no data, okay, and
Speaker 2: don't The way you see that is actually from the
Speaker 2: credit report from the viewers. You wouldn't see it on
Speaker 2: like a mortgage report or on your ownline reports. When
Speaker 2: you pull the actual report from the viewers is when
Speaker 2: you see.
Speaker 3: That, all right. All right?
Speaker 1: So now all right, so you got some framework and
Speaker 1: then you got some interesting stories to me and Troy.
Speaker 1: But now we're going to we're going to dive deep
Speaker 1: into the the to the world of credit and yeah,
Speaker 1: we're going to hopefully drop some gyms that can save
Speaker 1: you guys a lot of time and money.
Speaker 4: Depends the paths. Get ready, all right, So now we're
Speaker 4: going to get into the part that most people aren't
Speaker 4: aware of on their credit pard that are actually happening.
Speaker 4: But you know, when you make a late payment or
Speaker 4: you miss a payment or you miss a few there's
Speaker 4: something that's called a derogatory that's correct, So god you
Speaker 4: could you want to explain the impact that that has
Speaker 4: and some examples of it.
Speaker 2: Well, the derogatory section. Everyone has that on a credit report, right,
Speaker 2: So what do you make a late payment? And by
Speaker 2: the way, the way they report late payments these days
Speaker 2: have changed because back then right after thirty days the
Speaker 2: next day you were late. Now they give you a
Speaker 2: thirty day grace period. But if the payment is not
Speaker 2: made before five pm the twenty ninth of the next month,
Speaker 2: then you get reported the first thirty days. That's a derogatory, right.
Speaker 2: Collections charge off. Let's say you had a credit card
Speaker 2: for five six years. You know you were paying for
Speaker 2: three four years, you ran into a hardship, you missed,
Speaker 2: you couldn't keep up with the payments anymore, and you
Speaker 2: miss six months of payments. It gets charged off. That's
Speaker 2: a derogatory. Public records lawsuits judgments there as well. Yes, absolutely,
Speaker 2: because if one here's the thing about student know everyone
Speaker 2: keeps deferring the student loans and that's actually you shouldn't
Speaker 2: be doing that. You should at least try to make
Speaker 2: some sort of payment plan with them because now one
Speaker 2: it affects your credit, your DTI because let's see, you
Speaker 2: took out six thousand, you deferred for five years, now
Speaker 2: your loan is ten thousand. Now you're upside down with
Speaker 2: the loan. One Two you lay payments. Also, their report
Speaker 2: on the credit port is the derogatory if you miss
Speaker 2: the laate payment. So I don't suggest anyone try to
Speaker 2: put the payment in defirming for too long, but if
Speaker 2: you have to make sure you don't have a gap
Speaker 2: where it comes out of the ferment and you're supposed
Speaker 2: to make a payment and go back into the ferment
Speaker 2: heed to avoid that.
Speaker 4: It's tough because I mean we covered it pretty extensively,
Speaker 4: Like we have millions of Americans that are in trillion
Speaker 4: dollar industry, and it's like, you know, the first thing
Speaker 4: is like deferment, but it only lasts six to twelve months, right,
Speaker 4: and that that can affect you long term, right when
Speaker 4: it's time for you to now get the home, like
Speaker 4: still a loan payment as affected you try to get
Speaker 4: the car student, right, they're going to see that on
Speaker 4: that derogatory.
Speaker 2: Because they calculate the monthly payment into your income. Right,
Speaker 2: So Let's say, you know, you only make I don't know,
Speaker 2: two thousand dollars a month or bi weekly whatever, and
Speaker 2: your monthly payments are all your expense, including rent, food
Speaker 2: whatever not that foods are rent bills, credit cards, it
Speaker 2: is fifteen hundred. Now you add your student loans in there.
Speaker 2: Now you only have two hundred dollars left. How are
Speaker 2: you going to get get more? Extra are gonna come in?
Speaker 4: You know?
Speaker 2: So it's a debt that you really don't want to
Speaker 2: carry with you, but we have to if you want
Speaker 2: to try at least make some kind of payment towards it.
Speaker 3: So what do the derogatories?
Speaker 1: Okay, so some of the common derogatory items are late payments.
Speaker 2: Late payments, credit cards. Even I did a video about
Speaker 2: when you move out of your apartment, how to exit
Speaker 2: your apartment. Your Verizon bill, your contact is some bill,
Speaker 2: all that goes on your credit repoard. There's a way
Speaker 2: to shut everything off before you walk out of that
Speaker 2: apartment so it doesn't travel. So what's the way that
Speaker 2: you So basically, make a checklist of everything that you
Speaker 2: had when you were living in an apartment cable, phone,
Speaker 2: water or whatever.
Speaker 3: A week before you move out.
Speaker 2: You're supposed to call those companies and let them know
Speaker 2: you're leaving, to disconnect the service on this date and
Speaker 2: send you the bill.
Speaker 3: Right.
Speaker 2: A lot of people just walk out and leave everything
Speaker 2: the Verizon bill, cable bill. You're supposed to return those boxes.
Speaker 2: If you don't, you get targe. You're renting those boxes,
Speaker 2: you don't own them. That's a stupid way of having
Speaker 2: a debt on your credit board. Domest your credit bill. Right,
Speaker 2: you can just return the boxes, play the final.
Speaker 1: Bill, right, Yeah, for sure. So all right, so what
Speaker 1: do support serving? Yeah, we get what about taxling?
Speaker 2: So taxling shows up on your credit but it was
Speaker 2: up to two years ago. They stopped reporting it, but
Speaker 2: it stays in the public record. So let's say applying
Speaker 2: for a mortgage, when they pull for your mortgage report,
Speaker 2: they put a Lexus nexus. Your taxi show up there,
Speaker 2: so you can affect it from getting the mortgage. But
Speaker 2: it's not in your credit report anymore, but it stays
Speaker 2: in public records. Successes lesus next is a company out
Speaker 2: in Atlanta that carries all public record data for everyone.
Speaker 4: Okay, okay, for.
Speaker 2: All the court system, bankruptcies, everything.
Speaker 3: So what about credit card judgments? A lot of people
Speaker 3: have credit card judgments.
Speaker 2: Oh man, listen, that's a good topic and how that happens.
Speaker 2: You know, Let's say you have a credit card. I
Speaker 2: go back to Chase because I did with them every day.
Speaker 4: Right.
Speaker 2: Let's say you have to Chase credit card for five years,
Speaker 2: three years, you paid it. After that you went to
Speaker 2: a harship. We can't paid no more and they went
Speaker 2: to collections and you didn't even pay it then, right
Speaker 2: before the statue limitation comes in, and every debt has
Speaker 2: a statue mentation, every state has a statue limitation. Right
Speaker 2: before the statue limentation ends, it goes to an attorney.
Speaker 2: They pick it up and obtaining a defaul judgment against
Speaker 2: you for ten years.
Speaker 1: So ten years, ten years, but it can be it
Speaker 1: can be wiped off all right, even if you so
Speaker 1: if you have the ten year judgment, it can still
Speaker 1: be like wiped off before that ten years.
Speaker 2: Absolutely if it's resolved correct if you don't. If you
Speaker 2: don't resolve it, then it can winue again. How do
Speaker 2: you resolve it? So you got to make an agreement
Speaker 2: with the judge, but not with the judgement attorney assume
Speaker 2: you they could either go back at the court and
Speaker 2: resolve it or resolve it over the phone. Make an
Speaker 2: agreements that listen to that's five thousand. You know I
Speaker 2: can give you two thousand call of the day, all right,
Speaker 2: so the death has to be resolved. Resolved.
Speaker 1: That that made me think about something because we let
Speaker 1: me keep it on the show.
Speaker 4: Right.
Speaker 1: So usually in our community, what happens is that you
Speaker 1: fall on the hard times, you don't pay your bills.
Speaker 3: They call you, and you don't answer the phone call.
Speaker 4: You try to ignore that number.
Speaker 3: But that's what that's that's what we're gonna do. That's
Speaker 3: what that's how it do a judgment. So start of it,
Speaker 3: all right.
Speaker 1: What's your advice for people that are doing that? Like
Speaker 1: I always tell people, you can't avoid problems. You have
Speaker 1: to face it right, So and then especially credit card companies,
Speaker 1: they'll work with you if you conte people still mentally,
Speaker 1: I guess it's just nobody really wants to be embarrassed
Speaker 1: or they don't want to even kind of go through
Speaker 1: that if they know that they don't have the money
Speaker 1: to pay it. So you have all right, you got
Speaker 1: yourself in a bad situation. You can't pay your bill,
Speaker 1: you're laid on your bills. What do you do? Like,
Speaker 1: what's the best?
Speaker 2: Here's the thing that's funny we're talking about this. A
Speaker 2: lot of people don't want to resolve to that because
Speaker 2: they've been totally You don't have to pay it that back.
Speaker 2: It's going to disappear a lot of people. That's what
Speaker 2: a lot of people say. You know, oh, my friends,
Speaker 2: I don't want to pay it back.
Speaker 3: Is the truth.
Speaker 2: Yes, you have to, right, but you have to answer
Speaker 2: the phone man like you can't. They'll work with you.
Speaker 2: They wanted to work at you.
Speaker 4: This is I'm just the willing to work with your
Speaker 4: part is one hundred percent valid. I have friends, and
Speaker 4: I mean personally, I've done it myself, like I've had
Speaker 4: I've seen my interest rate go up when I was
Speaker 4: in college to a point I was like, wait, oh,
Speaker 4: thirty thousand dollars. I'm twenty one, right, and I'm like,
Speaker 4: I don't know what to do. So I'm like I
Speaker 4: literally was listening to how I need to have it and
Speaker 4: I promise you, and I heard Andree was talking about
Speaker 4: dec consolidation and I called this and I was like,
Speaker 4: all right, well we'll do it. And I did it,
Speaker 4: and like rather than paying at thirty right, the bankers
Speaker 4: looking like, hey, can we get some money? Right, So
Speaker 4: I'm like, all right, we agreed to amount, and I'm like,
Speaker 4: all right, I'll pay that off.
Speaker 2: There's a difference between that consolidation debt settlement. I am
Speaker 2: not a deck into deck consolid I don't think anyone
Speaker 2: should do it. And I'll tell you why. Once the
Speaker 2: debts charged off, you have to pay something, but not
Speaker 2: the full thing. But consumers don't know that, so they
Speaker 2: go to de consolidating way. They make you paid the
Speaker 2: whole debt over three years. You kind of just paid
Speaker 2: it debt twice, Yeah, because it went insurance paid it
Speaker 2: or wherever the bank resolved it, and that you paid
Speaker 2: the whole thing back again to the banks. It's once
Speaker 2: the debts charged off, it's better to settle to then
Speaker 2: move on. You're five grand, we get that down to
Speaker 2: eighteen hundred. I would rather pay that and move on
Speaker 2: because your credit is still shot and you're not going
Speaker 2: to get the card back.
Speaker 3: Right, So I haven't paid twice.
Speaker 4: Yeah, I've seen people do it, like I've seen like
Speaker 4: like you just said, like, hey I owe twenty listen,
Speaker 4: I have ten, right, and the bank is like, you
Speaker 4: know what, I'll take that ten rather than have nothing
Speaker 4: from you for the next five years.
Speaker 2: So here's a trick behind Rushot's talking about collection agencies
Speaker 2: and attorneys do skip traits. Well, the skip trace is
Speaker 2: where they pull your credit and they see that if
Speaker 2: you're paying like, what's it called skip trace, skip trades,
Speaker 2: skip t R a CE so skip trait, skip trace
Speaker 2: worse like this, they want to find you when you
Speaker 2: see where you are to serve your judgment, they pull
Speaker 2: your credit, they see you have this address, that address,
Speaker 2: that address. That's how the martials end up coming to
Speaker 2: your house and dropping a note off, right, So they
Speaker 2: see if you're paying any debts back. So now let's
Speaker 2: say you're completely shot your scores five hundred. You have
Speaker 2: every single debt out there. When they do that skip trace,
Speaker 2: they know you're completely bro or you seem to be bro.
Speaker 2: You have a better chance of getting a lower number
Speaker 2: in that settlement because they'll take anything you want to
Speaker 2: resolve it and keep it going. Right, if you apply
Speaker 2: for Warrior this year, increy on there from a home
Speaker 2: mortgage company, or you're trying to buy something, you have money,
Speaker 2: everybody pops up. They want to settle, but they'll sell
Speaker 2: at a high number, and collection agencies work on commission.
Speaker 2: End of the month you get the best number. Beginner
Speaker 2: of the month you don't.
Speaker 1: That's so end of the month, Okay, I don't want
Speaker 1: people to I'll let that go over your head explain that.
Speaker 2: Oh yeah, collection agency is working commission. It's a fifty job.
Speaker 2: But your job is to you have to hit certain numbers.
Speaker 2: At the end of the month, you have to hit
Speaker 2: let's say a budget is thirty thousand. After that you
Speaker 2: get commissioned. So that's why in the beginning of the month,
Speaker 2: let's see, had a death for five thousand, they'll say, oh,
Speaker 2: we can only settle for forty five hundred four thousand.
Speaker 2: Come that to the last five days of a month,
Speaker 2: that same debth for eighteen hundred dollars. But you can't
Speaker 2: get off your credit report because the loss states whether
Speaker 2: you pay or don't pay something, it stays on your
Speaker 2: credit port for seven years. That's where my company comes in.
Speaker 2: I make your seven years ninety days, so I'm able
Speaker 2: to make your credit jump right back to seven fifty
Speaker 2: eight hundred Squeakly, nothing ever, comes back on your credit report.
Speaker 3: Credit repair. Oh yes, that it's a lot off camp.
Speaker 3: You said, there's no such thing. It's the credit credit.
Speaker 2: Exist right, It's a skin, right, That's why every single
Speaker 2: company can I call the companies out? You don't care, No,
Speaker 2: I mean that's your mom and pop company, Lexington Lord
Speaker 2: credit payer dot com credits saying I want to spe name,
Speaker 2: I want two Okay.
Speaker 5: This episode is brought to you by P and C Bank.
Speaker 5: A lot of people think podcasts about work are boring,
Speaker 5: and sure, they definitely can be, but understanding of professional's
Speaker 5: routine shows us how they achieve their success little by little,
Speaker 5: day after day. It's like banking with P and C Bank.
Speaker 5: It might seem boring to save, plan and make calculated
Speaker 5: decisions with your bank, but keeping your money boring is
Speaker 5: what helps you live or more happily fulfilled life. P
Speaker 5: and C Bank Brilliantly Boring since eighteen sixty five. Boring
Speaker 5: since eighteen sixty five is a service mark of the
Speaker 5: PNC Financial Service Group, Inc. P and C Bank National
Speaker 5: Association Member FDIIC.
Speaker 4: Earners.
Speaker 3: What's up?
Speaker 5: You ever walk into a small business and everything just
Speaker 5: works like the checkout is fast, the receipts are digital,
Speaker 5: tipping is a breeze and you're out the door before
Speaker 5: the line even builds. Odds are they're using Square. We
Speaker 5: love supporting businesses that run on Square because it just
Speaker 5: feels seamless. Whether it's a local coffee shop, a vendor
Speaker 5: at a pop up market, or even one of our
Speaker 5: merch partners, Square makes it easy for them to take payments,
Speaker 5: manage inventory, and run their business with confidence, all from
Speaker 5: one simple system. If you're a business owner or even
Speaker 5: just thinking about launching something soon, Square is hands down
Speaker 5: one of the best tools out there to help you start, run,
Speaker 5: and grow. It's not just about payments, it's about giving
Speaker 5: you time back so you can focus on what matters
Speaker 5: most ready. To see how Square can transform your business,
Speaker 5: visit Square dot com backslash, go backslash eyl to learn
Speaker 5: more that Square dot com backslash, go backslash eyl. Don't wait,
Speaker 5: don't hesitate. Let's Square handle the back end so you
Speaker 5: can keep pushing your vision forward.
Speaker 6: You just realized your business needed to hire someone yesterday?
Speaker 6: How can you find amazing candidates fast? Easy? Just use Indeed.
Speaker 6: Stop struggling to get your job posts seen on other
Speaker 6: job sites with Indeed sponsored jobs, your post jumps to
Speaker 6: the top of the page for your relevant candidates, so
Speaker 6: you can reach the people you want faster. According to
Speaker 6: Indeed data, sponsored jobs posted directly on Indeed have forty
Speaker 6: five percent more applications than non sponsored jobs. Don't wait
Speaker 6: any longer. Speed up your hiring right now with Indeed,
Speaker 6: and listeners of this show will get a seventy five
Speaker 6: dollars sponsored job credit to get your jobs more visibility
Speaker 6: at indeed dot com slash pod Katz thirteen. Just go
Speaker 6: to Indeed dot com slash pod katz thirteen right now
Speaker 6: and support our show by saying you heard about Indeed
Speaker 6: on this podcast. Terms and conditions apply. Hiring Indeed is
Speaker 6: all you need.
Speaker 2: They all do the same thing. Send dispute letters with
Speaker 2: no letterhead. So yeah, I think about that. If I'm
Speaker 2: paying you ninety nine dollars, you said I'm gonna fix
Speaker 2: your credit, Why is only the instructions on letterhead but
Speaker 2: not the level you sent to the credit beer on letterhead?
Speaker 2: Look like I'm sending the letter one two. If you
Speaker 2: ever read those dispute letters, it's like your ten year
Speaker 2: old kid wrote it.
Speaker 3: Right.
Speaker 2: So, for example, let's say Verizon, you have a Verizon bill,
Speaker 2: you have Verizon home service, cable internet, whatever it is
Speaker 2: that you have a Verizon right for over a year.
Speaker 2: All of a sudden you moved out. You didn't pay
Speaker 2: the bill because you didn't return the box on the
Speaker 2: final bills, and you have this on your credit report.
Speaker 2: Verizon have a collection for you. They're gonna write a letter,
Speaker 2: please validate this debt. I never had this debt. Well
Speaker 2: what do you have for the last twelve months? So
Speaker 2: everything has a pay per trail behind it, right, So
Speaker 2: that's what a level never works. Not a letter goes
Speaker 2: to the credit virrs. The credit viewer sends it to
Speaker 2: the Verizon rising sends back your whole statement in the
Speaker 2: digital file, your checks that you made paymentswater. They even
Speaker 2: keep phone communication if you spoke to them. You spoke
Speaker 2: to us on this day, and that's all testifiable. I
Speaker 2: have it in my office when you speak to these companies, Oh,
Speaker 2: my client spoke to them on this day.
Speaker 3: Right.
Speaker 2: So anyway back to the whole credit periods. The letters
Speaker 2: thing doesn't work because if he has a pay per
Speaker 2: trail one, there's no such thing as fixing credit. Every
Speaker 2: consumer has a right to dispute something on their credit
Speaker 2: if they believe it was reported erroneously or inaccurately, that's
Speaker 2: you're right.
Speaker 1: So from my understanding, it's like correct me if I'm wrong,
Speaker 1: they write a letter or you. Everybody has the ability
Speaker 1: to write a letter to a company disputing something. If
Speaker 1: they don't respond to that dispute, it has to come
Speaker 1: up right. So that's kind of what they do because
Speaker 1: they know most people are They don't want to do
Speaker 1: it themselves, so they do it.
Speaker 3: For them correct.
Speaker 2: And the reason and the other thing is that in
Speaker 2: the industry there's something called servicing a debt and owning
Speaker 2: a debt. Let me explain that for you. I'll say
Speaker 2: it again, servicing a debt and owning a debt, owning
Speaker 2: a debt. There's only four companies in the industry that
Speaker 2: buys debts Portfolio Recovery, Midland Funding, MCM, and Calvy Portfolio.
Speaker 2: Those four companies buy debts and they give you thirty
Speaker 2: days to resolve it. If you don't resolve it, they
Speaker 2: get a default judgment against you, send it to an attorney.
Speaker 2: The attorney serves you got to show up in court.
Speaker 3: Blah blah blah. I shouldn't say blah blah.
Speaker 2: But the second thing is servicing a debt. So let's
Speaker 2: say Verizon come back to Verrison. RGM Acquisition is a
Speaker 2: collection agency. They don't own the debt. Verizon sent the
Speaker 2: debt to RGM to for them to call you ten
Speaker 2: times a day. They don't have the man power to
Speaker 2: do that. So now when you send these letters, the
Speaker 2: collection agency is never supposed to be there. That's why
Speaker 2: the collection acy will come off your credit that's all
Speaker 2: the letter does. But the debt comes back around ninety
Speaker 2: days later from to another agency, so the debt is
Speaker 2: never really leaving you, so that everything has to be resolved.
Speaker 3: So back to the.
Speaker 2: Word of credit a peer, Yeah, it doesn't exist anyone.
Speaker 2: Everyone has a right to contest something if it's not
Speaker 2: accurate on your credit board, but not out of ten
Speaker 2: times all these banks and they're so squeaky clean with
Speaker 2: their data now, like it's very minimum room for errors.
Speaker 4: That's important. Man. You gotta educate yourself, right, Like, rather
Speaker 4: than paying ninety nine dollars, you can do it yourself,
Speaker 4: reading for about two hours a day and figure it out. Man,
Speaker 4: it's valuable. So like you're saving your time and your.
Speaker 3: Money, not supporting.
Speaker 1: All right, Okay, so now we're going to go into
Speaker 1: our new topic, our new section.
Speaker 4: We got a whole new segment that we're calling it
Speaker 4: ten to ten. So we got ten questions. Hopefully you
Speaker 4: can't give us ten answers. And it's courtesy of Instagram
Speaker 4: pretty much our followers. We laid it out there that
Speaker 4: we're going to have credit as an episode and we
Speaker 4: got a crazy response.
Speaker 2: Yeah, there's so much to learn about this credit industry,
Speaker 2: how it works, like how credit is built, how you
Speaker 2: get approved for credit card, Like there's a whole knowledge
Speaker 2: based on that we're just touching like this.
Speaker 4: Yeah, so we took we took ten and hopefully we
Speaker 4: can get ten answers.
Speaker 3: Question.
Speaker 1: We're gonna we're gonna yeah, we're gonna jump right into it.
Speaker 1: So yeah, let's do it, all right. So, yes, this
Speaker 1: is a new segment that we're gonna do. Hopefully we'll
Speaker 1: do what every show, maybe not every show, but depending
Speaker 1: on if it's an educational show like it is right
Speaker 1: now where we're actually bringing somebody in, every show's educational show.
Speaker 1: But if this is a show where we're bringing an
Speaker 1: expert in, we're gonna start a new segment called ten
Speaker 1: for ten, right, because as I always say, it's not
Speaker 1: our podcast, it's your podcast. It's the public's podcast, and
Speaker 1: the platform is to educate. So we're taking ten questions
Speaker 1: from our listeners and we're gonna answer those questions, right,
Speaker 1: and it's all on Instagram. So we'll put a post
Speaker 1: up a few days before and we'll ask you know
Speaker 1: your your questions, and then you guys just comment in
Speaker 1: the comments section and then we'll pick ten questions and
Speaker 1: then we'll we'll do.
Speaker 3: It, so asks the expert. Yeah for sure, for sure.
Speaker 1: So we're going to start out with the first question
Speaker 1: is from I Underscore am underscore Asia shout out to her.
Speaker 1: She wants to know how do you establish business credit?
Speaker 2: All right, that's a good question, and there's actually a
Speaker 2: big that's a big topic actually. So everyone seems to
Speaker 2: think that business credit that once you register a company
Speaker 2: name and you have a website and a bank account,
Speaker 2: you have business credit. Actually don't have business credit. You're
Speaker 2: still PG and everything under your social. Business credit runs
Speaker 2: separately from your social it's established on the tax id.
Speaker 2: It has to standalone by itself, has to sit by itself.
Speaker 2: When you PG something that goes on your personal credit
Speaker 2: GG with personal guarantee.
Speaker 3: Okay, excuse me. It's when you.
Speaker 2: PG something, it sits on your credit, on your personal credit.
Speaker 2: Want it affects your BTI because if it's a like
Speaker 2: an American's Press charge card, you're swiping thirty thousand a month.
Speaker 2: Remember little debt high score. That's affecting your your score.
Speaker 2: And two it makes your credit score drop. Right, So
Speaker 2: business credit has to stand alone by it's itself on
Speaker 2: the tax sidy. How do you establish it for There's
Speaker 2: a ten step process. One you have to be the
Speaker 2: taxid the bank account. You have to be registered in
Speaker 2: your newspaper. You count the newspaper on the two newspapers
Speaker 2: showing that you have your legitimate, legitimate business. You can't
Speaker 2: have your home address as the business address because you
Speaker 2: need to re scores experience equal facts and done a
Speaker 2: Bradstreet Experience Equal facts is not recognize your home addresses
Speaker 2: your business address and your cell phone is a business number.
Speaker 2: That's why I tell people get a virtual space one
Speaker 2: ninety nine like reagius or.
Speaker 3: What about po box?
Speaker 1: No you can't, so all right, I didn't know that,
Speaker 1: so you had Okay, So because you.
Speaker 2: Need a receptance on the phone number where they can
Speaker 2: call them verified and send mails to.
Speaker 1: Okay, so you can't get business credit without the address.
Speaker 1: You need to separate from your home address and you need.
Speaker 3: An office address.
Speaker 4: That's correct.
Speaker 2: That's why I say you get a regious space. One
Speaker 2: night and nine is the cheapest thing, right, because it
Speaker 2: needs to be verifiable by experienting equal facts. Because it's
Speaker 2: three scores nunn a Bradstreet explant equal facts. You need
Speaker 2: to be scores and all three viewers and how you
Speaker 2: build business credit?
Speaker 4: So why why is trans Union left out of that?
Speaker 2: Did you just don't using Okay, it's not heavy enough, right,
Speaker 2: all right?
Speaker 1: So okay, so let's stay on that for a little bit.
Speaker 1: So you all right, start a business. You got your LLC,
Speaker 1: you got you got your taxi.
Speaker 3: Number, bank, you can open your bank account registered in
Speaker 3: the courthouse. Yeah, all that newspaper did all that stuff.
Speaker 1: Now you the first So now you have to get
Speaker 1: an address.
Speaker 3: Correct.
Speaker 1: So now we're now we're trying to build credit for
Speaker 1: the business. Right, So you get a did you get
Speaker 1: a Google number? Yeah, you get a Google number. We
Speaker 1: get a number separate from your cell phones and get
Speaker 1: an address separate from your cell phone. Now can the
Speaker 1: address be another word like say, can I can I
Speaker 1: use my sister's address? My address just separate from the
Speaker 1: one you live the exactly.
Speaker 3: Okay, So now that so now, now how do you establish.
Speaker 2: Now you have that, you need trade lines. So that's company.
Speaker 2: There's companies like Quills. There's like ten other companies out there.
Speaker 2: I can't think of it right off the top of
Speaker 2: my head. But here's how it works. I have a
Speaker 2: whole list in my office. You reach out to them
Speaker 2: and they give you ten They give you trade lines.
Speaker 2: Trade lines are like loans. They'll give you like a
Speaker 2: thousand dollar credit limit. You have to use fifty dollars
Speaker 2: for the next six months of pay on time fifty
Speaker 2: or more you have. It's built just like you're building
Speaker 2: personal credit. But it's two dear vendors once. So you
Speaker 2: need three of them. Three vendors. If you want to
Speaker 2: get cards on like Best Buy, Office Depot, Office Max,
Speaker 2: those guys. If you want credit cards from the bank,
Speaker 2: you need six vendors. Sixpenders are six trade lines, right,
Speaker 2: and you're built from with that for six months. From there,
Speaker 2: you apply for your own credit cards. Now if you
Speaker 2: want loans out of the bank, you have to have
Speaker 2: a p and L, a profit and loss, and you
Speaker 2: have to have a tax return in order for the
Speaker 2: bank to extend loan under the business because they have
Speaker 2: to see money coming into the company and money going back.
Speaker 2: Have a PNL to see that. You know you can
Speaker 2: pay the loans back.
Speaker 3: Okay, okay, okay, right.
Speaker 4: So we got our next question from Bob Bob Lewis III,
Speaker 4: and he asked, can you establish credit.
Speaker 2: For your children actually at seventeen or eighteen years old? Yeah,
Speaker 2: you could. How you do it is that you Adam
Speaker 2: was an authorized using one of your credit cards. But
Speaker 2: with that coming back to your story, it has to
Speaker 2: be a clean credit. You can't have high balances, you
Speaker 2: can't have derogatories. But whatever you do will affect that person.
Speaker 4: Yeah, I got lucky. I'm being honest. This is like
Speaker 4: a true story, and I think we I first noticed
Speaker 4: it when with Out told my credit and I was
Speaker 4: twenty six and he was like, wait, you have twenty
Speaker 4: three years of credit history, and I'm like, I don't know.
Speaker 4: And then I realized that my parents put me on
Speaker 4: their card that they've had since nineteen eighty five or
Speaker 4: something like that, and I was like history, oh wow,
Speaker 4: and they've been responsible, So like, yeah.
Speaker 3: That don't affect you, y, that's effect.
Speaker 4: It affected me in a positive way, positive, right negative?
Speaker 3: Yeah.
Speaker 2: Yeah, So you can do it, but it has to
Speaker 2: be clean history. Okay, right at seventeen?
Speaker 1: Moving on, okay, okay, So this is from Nelly Gibbs.
Speaker 1: She wants to know what the best way to repay
Speaker 1: student loans and what's the best way to handle student
Speaker 1: loan debts.
Speaker 2: Oh so we were talking about this earlier. So depending
Speaker 2: on the loan, if it's deferred or it's in collection.
Speaker 2: I mean, we kind of gotta find out that. But anyway,
Speaker 2: the point is, if you have a bunch of student loans,
Speaker 2: everything is based off of an income. The payment plan
Speaker 2: is based off on an income based right, So when
Speaker 2: you call a student loans you want to I suggest
Speaker 2: everyone create a payment plan, Like, don't keep the firm.
Speaker 2: It's not a good thing to do because it affects
Speaker 2: you from doing bigger purchases in the future. But on
Speaker 2: what you do is you call a student long company,
Speaker 2: tell me you want to go on the income based
Speaker 2: repayment plan, and they send your form.
Speaker 3: You fill out.
Speaker 2: The trick to that is that make sure when you
Speaker 2: fill out the forms, you put it you have a
Speaker 2: lot of expenses. So the monthly payment is a low
Speaker 2: payment and they keep you, they lock you into that
Speaker 2: for a couple of years and then you recertify again.
Speaker 2: But you want to put like you know, you have
Speaker 2: you know, rent cards, to daycare, whatever it is to
Speaker 2: show that you have a lot of expenses. If not,
Speaker 2: they're going to hit you with a high monthly payment
Speaker 2: of seven more.
Speaker 4: Yeah, we've seen. I've seen yet, like I've seen.
Speaker 2: That's how you trick it.
Speaker 4: Yeah. So our next question is from.
Speaker 2: Uh oh and also, next thing, if you have student
Speaker 2: loans and like two different like Sally made none and all,
Speaker 2: that you can actually have all of those loans refinancing
Speaker 2: the one loan, and I suggest everyone do that so
Speaker 2: it's easy for you to attract the payments.
Speaker 3: And I'm making money payments to five different companies.
Speaker 4: That is one hundred percent thro man, like I was again,
Speaker 4: I have student loans, like the first thing we what
Speaker 4: I did was like consolidate them all, so like Navy,
Speaker 4: and is now my correct shout out to them. Uh So,
Speaker 4: our next question is from at flow underscore Bella Underscore,
Speaker 4: and her question is what are some ways I can
Speaker 4: fix my credit herself? Like what can she do?
Speaker 3: So?
Speaker 2: First off, you got to pull the report and pull
Speaker 2: a real time report. You know, credit carment that accurate,
Speaker 2: is not detailed. If you have a mortgage lender, those
Speaker 2: are the best reports that they try and merge, and
Speaker 2: they give you your whole history for when you were
Speaker 2: seventeen or when you got credit the current excuse me.
Speaker 2: Once you pull that report, you're able to see all
Speaker 2: the derogatories and the issues that are holding down your credit.
Speaker 2: If it's stuff that you know that was paid off already,
Speaker 2: you can dispute it with the beers that had like
Speaker 2: third party collections that have that taken off. But you
Speaker 2: got to see the negatives on there and what debts
Speaker 2: they are, so you can put a plant to address them.
Speaker 2: If there's some desks, you can do settlements that you
Speaker 2: have to do settlements so you can call it back
Speaker 2: the credits directly and negotiate with them to make a
Speaker 2: payment plan. You could even do one account of month
Speaker 2: until you get to your end results.
Speaker 4: And some things is one hundred percent accurate. It'll show
Speaker 4: you that you missed a card payment in twenty fourteen.
Speaker 3: Very detailed, very detailed.
Speaker 4: All right.
Speaker 1: So this is a big one. This is a big one.
Speaker 1: This is from who cares underscore?
Speaker 3: No one? I like that.
Speaker 1: So can child support be removed from your credit and
Speaker 1: can we talk about the effects of child support on
Speaker 1: your credit?
Speaker 3: Support?
Speaker 2: It reports is a collection debt, all right? Yes, it
Speaker 2: can be removed. Actually, we're the only one could remove them.
Speaker 2: A letter cannot remove them. The problem is if we
Speaker 2: remove them, you cannot miss a payment again, because if
Speaker 2: you miss a payment, it'll come back on. Same thing
Speaker 2: for late payments on credit card. I want to talk
Speaker 2: about that. Actually, we can remove all your late payments,
Speaker 2: but you cannot miss any late payments moving forward. If not,
Speaker 2: it will come back on your credit word or a
Speaker 2: bank reports and a batch file. Right, So child sport
Speaker 2: can report and it is a collection also, so if
Speaker 2: you're trying to buy something and you know your detail
Speaker 2: is off and your numbers are off, it can affect
Speaker 2: the monthly payment that you're paying, and child support can
Speaker 2: affect your approval of how much you can get approofer
Speaker 2: if that makes sense.
Speaker 4: All right, So our next one is from at Done
Speaker 4: in three to one, and he asked when do agencies
Speaker 4: report debt balances? Is there a specific time during the
Speaker 4: month that they do.
Speaker 2: It, or when his agencies will you.
Speaker 4: Talk about I'm assuming that any means like when does
Speaker 4: like TransUnion or experience or epifact, is there a specific one?
Speaker 3: The burwers don't.
Speaker 2: The buwers update on the first to the fifth of
Speaker 2: every month, but the data comes from the bank or
Speaker 2: the flesh or the credit does not come from the
Speaker 2: from the bureau. They don't want to just house the data,
Speaker 2: and on the first to the fifth of every month
Speaker 2: they update new reports. Your bank reports different days. Some
Speaker 2: days they report, you know, the ten to fifteenth, whatever
Speaker 2: your billing cycle is.
Speaker 4: But that's something you could find out.
Speaker 2: And to make it easy for you, if you want
Speaker 2: to make sure you never laid on your payment, you
Speaker 2: can call all your credit card companies and ask them
Speaker 2: to make your due They the same day every month,
Speaker 2: So if you have five cards, you can make them
Speaker 2: all of them the fifteenth of every month, so you know,
Speaker 2: you know, you know, if you're a person that keeps
Speaker 2: forgetting to make payments, you know on the fifteenth every
Speaker 2: bill is due.
Speaker 3: If you can afford to do it.
Speaker 1: Okay, Rage against Ordinary has a question. She wants to
Speaker 1: know after chapter seven bankruptcy, how long does that stay
Speaker 1: on your report?
Speaker 2: Bankruptcy stay for seven years. And here's the crazy thing
Speaker 2: about bankruptcy now. One the creditors can contest the bankruptcy. Really,
Speaker 2: they don't have to. Like let's say you have bank
Speaker 2: markers on towards for this. They can contest it. They
Speaker 2: don't have to accept the bankruptcy. They can say no,
Speaker 2: I don't you know, it's we don't want to I know.
Speaker 2: They can contest the bankruptcy. To the new bankruptcy laws,
Speaker 2: depending on what chapter you're filing, you have to pay
Speaker 2: a percentage of your debt back in court, right somethings.
Speaker 2: You have to pay a percentage and that's determined by
Speaker 2: the judge and magistrates. Where's doing your bankruptcy? What's your
Speaker 2: percentage is? So if you're filing bankruptcy, you gotta really
Speaker 2: think about it. If you don't have like fifty to
Speaker 2: one hundred thousand dollars worth of debt, it's not really
Speaker 2: finding bankruptcy. It's not really worth it in my eyes,
Speaker 2: to find bankruptcy for seven years.
Speaker 4: That was gonna be like. My next kind of question
Speaker 4: off of that is like, when would it be I
Speaker 4: guess appropriate to file for bankruptcy. Right, there's a certain
Speaker 4: amount of debt that.
Speaker 2: You should I mean, there's a couple of qualifying SCENARIOSM
Speaker 2: If you're not working, you know, you can't do anything
Speaker 2: about it. You can't pay anything, you know. But if
Speaker 2: you are working, you have some savings. Because when you
Speaker 2: find bankruptcy, they go through all you have to disclose assets, right,
Speaker 2: so you know, if you have money in the bank,
Speaker 2: you're like, well, why can't you pay this, knowing that
Speaker 2: the banking contest it. Not all banks have to and
Speaker 2: that happened to me actually because I did it many
Speaker 2: years ago and they contested it. Then you can't have
Speaker 2: been put You can't open an account for three years,
Speaker 2: a bank account, but you can't show if you have
Speaker 2: any kind of money, any bank account, any bank camp,
Speaker 2: because they can go back, oh, well you have money.
Speaker 3: You know. It becomes very messy.
Speaker 2: But again with the bankruptcy, and it's not as easy
Speaker 2: as like the way it was in twenty ten. You
Speaker 2: follow and you walk away. You got to pay a
Speaker 2: percentage back. So you know, I think everyone should really
Speaker 2: consider depending on the scenario, because still filing bankruptcy, it's
Speaker 2: not the best route. It is a route, but it's
Speaker 2: not the best route depending on your situation. But it
Speaker 2: stays there for seven years and then you can the
Speaker 2: other thing about that.
Speaker 3: You burn.
Speaker 2: Let's say in the industry is prime and subprime banks.
Speaker 2: So let's say you file bankruptcy, I where discover American Express,
Speaker 2: Barclay Chase. Once you find bankrupcy, you can't get back
Speaker 2: to do business with those guys. Again, They're not going
Speaker 2: to extend any credit. So now you're kind of stuck
Speaker 2: in a subprime and read supprime bank kind of rest
Speaker 2: of your life where you've been high interest rates because
Speaker 2: major banks are not going to extend any kind of
Speaker 2: credit card to you.
Speaker 4: That's what I will. Our next question is from at
Speaker 4: young God. He said, if if I default on my
Speaker 4: business credit cards, it doesn't show up on my personal credit.
Speaker 2: If you PG it, yes, no. If you didn't PG it, no,
Speaker 2: it does not. If you personally guarantee it when you
Speaker 2: open it, which I be honest with you, nine percent
Speaker 2: of nine and nine percent of the people that said
Speaker 2: they have business credit their PG and everything okay, could
Speaker 2: not go into the full steps of registering the company
Speaker 2: correctly and building it correctly. They're you know, if you
Speaker 2: if your socialist going on that application, your PG.
Speaker 1: And the role, so you're personally guarante Some more people
Speaker 1: think that they have business credits really just an extension
Speaker 1: of their own personal credit for their business.
Speaker 3: Correct.
Speaker 1: But you can actually establish business credit, but you have
Speaker 1: to go the steps of getting in office and having
Speaker 1: as correct. That's okay, that's important to understand people, and
Speaker 1: especially entrepreneurs because a lot of people don't know that.
Speaker 3: I didn't realize that. So all right, all.
Speaker 1: Right, man, So yeah, so that that was pretty extensive
Speaker 1: as far as the ten questions. All right, So I
Speaker 1: hope that you guys listen because one podcast episode is
Speaker 1: not gonna be enough to fully grasp. But what we
Speaker 1: try to do here, it's never enough for anything, but
Speaker 1: we try to plan a seed, right, We try to
Speaker 1: plan a seed and then hopefully you gain information. It's
Speaker 1: like when we had Quenton on as far as talk
Speaker 1: about stocks. Right, you can't learn about stocks in an hour,
Speaker 1: but you can you can gain enough information to now
Speaker 1: you can go on the journey of seeking information for yourself, right,
Speaker 1: and then also you have to work with professionals. So
Speaker 1: I always say, you can try to do things yourself
Speaker 1: and it may not be a bad thing, but it's
Speaker 1: always good to work with professionals if you can.
Speaker 4: Right.
Speaker 1: So that's why we brought Andy here, and Andy's gonna
Speaker 1: give all of you guys his information. But before we
Speaker 1: do that, I want to talk about La brieflee.
Speaker 3: Yeah, So we went to LA.
Speaker 1: As I said, this is our first episode back from LA,
Speaker 1: and it was dope. We had some some some great interviews,
Speaker 1: people mess some great people, and we had a networking
Speaker 1: event and about fifty people came, maybe even more, and
Speaker 1: we we fed the people, we gave them, we gave
Speaker 1: them drinks. It was just dope, a dope vibe. We
Speaker 1: want to come, Yes, we want to come to your city.
Speaker 1: So if you have speaking engagements, if you have opportunities,
Speaker 1: if you have anything for us, feel free to d
Speaker 1: m us. We feel free to email us. Because we
Speaker 1: have to spread the financial literacy word to the masses,
Speaker 1: and the only way to do that is to travel.
Speaker 1: We can do that via internet, but it's nothing like
Speaker 1: touching the people. So we want to go to Chicago.
Speaker 1: We want to go to Miami. We want to go
Speaker 1: to Toronto, Canada. We want to go to Philly, we
Speaker 1: want to go all of these different places. Atlanta, of course,
Speaker 1: we got to go to Atlanta. So Houston, but we
Speaker 1: need you guys help. So yeah, so we'll talk about
Speaker 1: our Patreon later. But before we wrap it up, Andy,
Speaker 1: can you and I just realized this too? Is that
Speaker 1: a DC yeah, chases chases chaso.
Speaker 3: Can you just give me like a thirty second extradition?
Speaker 3: Realize that happened? How that happened? Was that?
Speaker 2: So you guys want slow Bucks? See your slow you
Speaker 2: guys don't miss the rugs in Atlanta.
Speaker 4: Queens get the money.
Speaker 2: Yeah, you know I did some stuff with rugs two
Speaker 2: years ago, three years ago in Atlanta on his credit.
Speaker 2: He was purchasing some cards and you know, whatever he
Speaker 2: was purchasing.
Speaker 3: I helped him out. He got introduced to me to.
Speaker 2: Slow Bucks and then so anyway to him, I went
Speaker 2: down to the Mister White Party one year, hung out
Speaker 2: with him, Prime rest in peace, prime prime time.
Speaker 3: Uh, Meek Mills.
Speaker 2: I got induced to Meek and you know a bunch
Speaker 2: of guys to chains and all of them, and then
Speaker 2: you know we started talking at lunch on a Sunday
Speaker 2: that this was with this guy. Okay, here, I am
Speaker 2: a brown guy and these guy don't fit in. Who
Speaker 2: this guy you know, and there's a credit guy whatever whatever, whatever.
Speaker 2: I did some stuff for Meeks, you know, Meek the
Speaker 2: good vibe. You know, he's like, yeah, I like this guy,
Speaker 2: school door whatever. So you know HEO come up with
Speaker 2: the DC. You know, I appreciate that actually, and you
Speaker 2: know that's how it happened.
Speaker 4: Okay out to me.
Speaker 1: Yes, it's very rare to have a credit specialist to
Speaker 1: have a Meek milk chain. So for that, for that alone,
Speaker 1: you know, you gotta you gotta give him a shot.
Speaker 1: So can you tell people how to contact you? Your
Speaker 1: social media handles and all.
Speaker 3: The definite definite.
Speaker 2: So our website is ww dot y two K Credit
Speaker 2: Solutions dot com. Our social media is ye two K
Speaker 2: Underscore Credit Solutions dot com.
Speaker 4: Uh.
Speaker 2: The phone umber is five one six five six eight
Speaker 2: four five four one. We have our main locations in
Speaker 2: New York were satellite locations in h State two in Canada,
Speaker 2: Toronto and Ottawa.
Speaker 3: And you know that's it all right? Yeah google me.
Speaker 2: You know, you know I'm all over yeah, yeah.
Speaker 3: Yeah, check them out. Check them out. Sooy, can you
Speaker 3: talk about our patre.
Speaker 4: Yeah, man, it's pretty overwhelming. You know, we seek about
Speaker 4: Patreon every episode, and we you know, LA was the
Speaker 4: first time we got to actually reach out and go
Speaker 4: to see people, and a lot of us do because
Speaker 4: of the support that we get from Patreon and other avenues.
Speaker 4: So Patreon is a way for you to financially support
Speaker 4: the podcast. We can't do any of this without you,
Speaker 4: but if you know, if you want us financial support
Speaker 4: us so that we can go to other cities and
Speaker 4: spread the word of financial literacy and other things. Like
Speaker 4: we were in LA. We talked about multitude of topics. Man,
Speaker 4: we met at some great people and to see the
Speaker 4: message coming to fruition is just like amazing. I think
Speaker 4: I called I text you off on the plane, Like
Speaker 4: I'm completely overwhelmed with joy right now, just to see
Speaker 4: people actually responding to it that we've never met before.
Speaker 4: We had a great conversation the other day with some
Speaker 4: of our Patreon members about how they're applying what we're
Speaker 4: saying into real day like application. It was like amazing, right.
Speaker 4: We spoke to somebody who has a quap lit so
Speaker 4: ye had a quaplex right, and he was like, yo,
Speaker 4: I listened to episode twelve and it inspired me shout
Speaker 4: out right, and it was like, yo, this is crazy,
Speaker 4: Like look at the impact that we're having. So if
Speaker 4: you're not on Patreon, feel free to go with patreon
Speaker 4: dot com backslash Ernalisia. We have five different tiers that
Speaker 4: you can join at. There's a real basic tear and
Speaker 4: then we have a more extensive tier where we talked
Speaker 4: to people, you know, three times a month or you know,
Speaker 4: we have a video chat about the episode because some
Speaker 4: people have extended questions after that. We are, so feel
Speaker 4: free to check out Patreon out continue to support our
Speaker 4: merch Early Leisure dot com. I tell y'all, season two
Speaker 4: is coming, it's on the way, it's on the way.
Speaker 4: We're gonna be doing some dope stuff.
Speaker 1: So yeah, man, yeah, and I shout out to Cody
Speaker 1: and yeah, we spoke to him, and so we uh,
Speaker 1: we have you know a lot of times people want
Speaker 1: to pick our brain right for like business mentorship or
Speaker 1: investment mentorship. So we've built relationships with a lot of
Speaker 1: good people and.
Speaker 4: Really good people.
Speaker 1: We know a few things. So yeah, Patreon is a
Speaker 1: way to extended dialogue. So and just you know, like
Speaker 1: I said, just to travel. You were in LA and
Speaker 1: we're talking to Al Harrington and he's given us game
Speaker 1: and he's given y'all game just from being on the
Speaker 1: podcast about I mean, this guy's going to be a
Speaker 1: billionaire like it's happened, is what happened. So it's very
Speaker 1: rare to have an opportunity to have an hour conversation
Speaker 1: with a future billionaire and he's just given game free.
Speaker 1: We wouldn't have been able to do that if we
Speaker 1: didn't go to LA. So you know, we're going to
Speaker 1: go to Atlanta, like I said, all these places and
Speaker 1: shout out to Toronto, Canada. Can we just get a
Speaker 1: minute to talk about Toronto because somebody had a question.
Speaker 1: Two people had questions about credit and just like what
Speaker 1: you told me earlier, can you just because we don't
Speaker 1: want to just we're bigger than just America people. We
Speaker 1: have listeners all over the world. We have listeners in Africa,
Speaker 1: we have listeners in Europe, and we have listeners in Canada.
Speaker 1: Canada is one of our strongest basis in Toronto specifically.
Speaker 1: So yeah, just a brief because I know the credit
Speaker 1: over there works and you work in Canada too.
Speaker 2: Yeah, correct, correct, So you know Canada the only used
Speaker 2: two beers equal facts and TransUnion. The thing is Canada
Speaker 2: is a little more strict with the credit because they
Speaker 2: don't have that much banks, they don't. They're very strict
Speaker 2: how to extend credit, right, and it make sure that
Speaker 2: you have collateral for everything. But what takes us three
Speaker 2: months to fix in the US will take us six
Speaker 2: months to fix in Canada. It is fixable. It's just
Speaker 2: a longer process, but it is fixable. And Canada credit,
Speaker 2: like the economy is much more tighter than the US,
Speaker 2: you know, so it's fixable.
Speaker 3: You need us.
Speaker 2: We have an office, two officers out there actually, and
Speaker 2: one in Toronto, Mississauga seven seven to one one one
Speaker 2: sentext Boulevard and Ottawa.
Speaker 3: Yeah.
Speaker 1: So if you're in Canada, hit Andy, you worse to Canada.
Speaker 1: And we are coming to Toronto soon very let me know.
Speaker 2: I want to go to May twenty second, come out
Speaker 2: there with or something, do a networking event. Actually for
Speaker 2: sure we can have something up for sure. Yeah all right,
Speaker 2: so Annie, thank you for joining us again. Before I leave,
Speaker 2: I always have a book tips on my book tip
Speaker 2: of this episode will be Multiple streams of Income. It's
Speaker 2: a very very good book and we always talk about
Speaker 2: you know, you need multiple streams of income. So the
Speaker 2: it outlies multiple I think it outlies nine different streams
Speaker 2: of income and it kind of like gives. Each chapter
Speaker 2: is devoted to a different stream of income. So highly
Speaker 2: recommend the book Multiple streams of Income for anybody that
Speaker 2: is seeking multiple streams of income. And thank you for
Speaker 2: rocking with us. We will see you next week.
Speaker 3: Peace Please, you.
Speaker 6: Just realized your business needed to hire someone yesterday? How
Speaker 6: can you find amazing candidates fast? Easy? Just use Indeed.
Speaker 6: Stop struggling to get your job post seen on other
Speaker 6: job sites. With Indeed sponsored, your post jumps to the
Speaker 6: top of the page for your relevant candidates, so you
Speaker 6: can reach the people you want faster. According to Indeed data,
Speaker 6: sponsored jobs posted directly on Indeed have forty five percent
Speaker 6: more applications than non sponsored jobs. Don't wait any longer,
Speaker 6: speed up your hiring right now with Indeed, and listeners
Speaker 6: of this show will get a seventy five dollars sponsored
Speaker 6: job credit to get your jobs more visibility at indeed
Speaker 6: dot com. Slash pod Katz thirteen. Just go to indeed
Speaker 6: dot com, slash pod Katz thirteen right now and support
Speaker 6: our show by saying you heard about Indeed on this podcast.
Speaker 6: Terms and conditions apply. Hiring Indeed is all you need