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Speaker 4: Let's do it.
Speaker 5: My graduates from my school being forts bad drop bags
Speaker 5: drop might drop bag drop drop.
Speaker 3: You talked about FCO score, right, can you just explain
Speaker 3: the FIGHTO.
Speaker 4: So FCO is fair Isaac credit company. They don't want
Speaker 4: to creates the whole score from all three viewers for you.
Speaker 4: They use the latest advantage. It will advantage ten vantage
Speaker 4: a that we're using that advantage ten. They use the
Speaker 4: latest vantage. So what is it? What is that? Because
Speaker 4: people might not know what So it's the way the
Speaker 4: scores created the data that's put into the score. So
Speaker 4: they don't pick every single like let's say your marketing
Speaker 4: spress card. Certain cards they pick up and they create
Speaker 4: the score. So the department that's why I speak about
Speaker 4: department store card. They don't have your credit that much,
Speaker 4: So stay away from them, stay into the visa, the
Speaker 4: master guards and so forth. Those are the ones that
Speaker 4: create the scores for you. And then your payment history,
Speaker 4: how much new credit you have, utilization, that's all that's
Speaker 4: calculated to it.
Speaker 3: Okay, okay, so all right, So as far as like,
Speaker 3: there's different factors that determine your credit score, right right, correct?
Speaker 3: What is some of the key fact is that people
Speaker 3: should be aware of.
Speaker 4: One of the major factors I see this on everyone's
Speaker 4: credit report is utilization. Just like you were talking about.
Speaker 4: You know, you need to keep your utilization under thirty percent.
Speaker 4: Once you start hitting thirty one thirty two percent of
Speaker 4: that utilization, your score drops significantly and it takes two
Speaker 4: months two billion cycles for it to go up unless
Speaker 4: you call the bank, like you didn't ask them just
Speaker 4: to do a courtesy for you. A lot of people
Speaker 4: don't know how to do that, right or they don't
Speaker 4: know they could do that. So one of them is
Speaker 4: keep the utilization very low thirty percent or below. Let's see,
Speaker 4: you have five cards and excuse me, and you instead
Speaker 4: of putting all the charges on one card, split it
Speaker 4: across three cards to keep it under thirty percent. Your
Speaker 4: score will stay high. Second thing is increase six increases
Speaker 4: a year. If you do more than that, your score
Speaker 4: drops each increase two point five points. Right, and banks
Speaker 4: only give you what this the other banks give you
Speaker 4: you apply for in your scenario, if you do that now,
Speaker 4: it would have been hard for you to get all
Speaker 4: those cards, right because banks are tight on giving our credit.
Speaker 4: So banks won't give you what this the other banks
Speaker 4: will give you. So let's say you apply for City
Speaker 4: Bank or Chase today. You got to deny it. There's
Speaker 4: an incre there. If a bank don't see a card
Speaker 4: open up, they're not going to extend your credit to you, right,
Speaker 4: So new credit.
Speaker 3: All right, So thirty percent. So if you have ten
Speaker 3: thousand dollars in credit available, only use three thousand.
Speaker 4: Correct.
Speaker 3: That's pretty much.
Speaker 4: Ah not with one last thing. Also, like if you're
Speaker 4: trying to build your score and you're in the six fifty,
Speaker 4: you're lingering around the six to fifty range. You shouldn't
Speaker 4: pay off your card in full every month because the
Speaker 4: bank needs to make the bank needs to make a
Speaker 4: little bit of interest off of you to report okay
Speaker 4: on your credit report. Correct, it's only until you're like
Speaker 4: a seven to fifty a highest score you can pay
Speaker 4: your card off in full because your score is already built.
Speaker 4: But if you're in the six fifteen, you're trying to
Speaker 4: raise it, don't pay the card off.
Speaker 3: Can you just explain that, because that's actually the first
Speaker 3: time I'm hearing that in detail.
Speaker 4: Like, so you don't pay off the credit card on
Speaker 4: full every month like every other month. You could pay
Speaker 4: it off from the fall. Why not very well, because
Speaker 4: the bank wouldn't report okay on the credit report. On
Speaker 4: the slot that says okay, it'll say no data okay.
Speaker 4: No data is like no credit okay. So you had
Speaker 4: like trick the system that will make a little bit
Speaker 4: of interest off for you. Because remember the bank's in
Speaker 4: the business of making money, right, right, and that's why
Speaker 4: they charge these interest rates.
Speaker 2: So they want to see that your valued customer over
Speaker 2: a period of time exactly, right. So if I have
Speaker 2: a thousand dollars and I matched out a thousand and
Speaker 2: I pay a thousand, that's not really showing anything.
Speaker 4: Exactly, and that's not helping them to there, not making money.
Speaker 4: So there's no sentence. So I'm to report, okay, on
Speaker 4: the credit bord you have the report to have a
Speaker 4: zero balance, but you don't have that that okay, that
Speaker 4: green mark on your credit board is it is no data, okay.
Speaker 4: And then the way you see that is actually from
Speaker 4: the credit report from the viewers. You wouldn't see it
Speaker 4: on like a mortgage report or on your ownline report.
Speaker 4: It's when you pull then actual report from the viewers
Speaker 4: is when you see that.
Speaker 3: All right. All right, So now all right, so you
Speaker 3: got some framework and then you got some interesting stories
Speaker 3: to me and troub. But now we're gonna we're going
Speaker 3: to dive deep into the the to the world of
Speaker 3: credit and yeah, we're gonna hopefully drop some gyms that
Speaker 3: can say if you guys, a lot of time and money.
Speaker 6: Depends the paths.
Speaker 2: Get ready, all right, So now we're going to get
Speaker 2: into the part that most people aren't aware of on
Speaker 2: their credit card that are actually happening. But you know,
Speaker 2: when you make a late payment, or you miss a payment,
Speaker 2: or you miss a few there's something that's called a derogatory.
Speaker 4: That's correct, that's god.
Speaker 2: Could you want to explain the impact that that has
Speaker 2: and some examples of it.
Speaker 4: Well, the derogatory session. Everyone has that on a credit report, right,
Speaker 4: So what do you make a late payment? And by
Speaker 4: the way, the way they report late payments these days
Speaker 4: have changed because back then right after thirty days the
Speaker 4: next day you were late. Now to give you a
Speaker 4: thirty day grace period. But if the payment is not
Speaker 4: made before five pm the twenty ninth of the next month,
Speaker 4: then you get reported the first thirty days. That's a derogatory,
Speaker 4: right collections charge off. Let's say you had a credit
Speaker 4: card for five six years. You know you were paying
Speaker 4: for three four years, you ran into a hardship, you missed,
Speaker 4: you couldn't keep up with the payments anymore, you miss
Speaker 4: six months of payments, it gets charged off. That's a
Speaker 4: derogatory Public records lawsuits judgments to the loans follow on
Speaker 4: there as well. Yes, absolutely, because one here's the thing
Speaker 4: about student loans. Everyone keeps deferring the student loans and
Speaker 4: that's actually you shouldn't be doing that. You should at
Speaker 4: least try to make some sort of payment plan with them.
Speaker 4: Because now one it affects your credit, your DTI because
Speaker 4: let's see, you think out six thousand, you defer it
Speaker 4: for five years. Now your loan is ten thousand. Now
Speaker 4: you're upside down with the loan one two your lay payments. Also,
Speaker 4: the report on the credit bord is the derolatory if
Speaker 4: you miss the lay payment. So I don't suggest anyone
Speaker 4: try to put the payment in deferment for too long,
Speaker 4: but if you have to make sure you don't have
Speaker 4: a gap where it comes out of deferment and you're
Speaker 4: supposed to make a payment and go back into the
Speaker 4: deferment heed to avoid that.
Speaker 2: Yeah, it's tough because I mean we covered it pretty extensively,
Speaker 2: Like we have millions of Americans that are trained industry,
Speaker 2: and it's like, you know, the first thing is like deferment,
Speaker 2: but it only lasts six to twelve months, right, and
Speaker 2: that that can affect you long term, right when it's
Speaker 2: time for you to now get the home like student
Speaker 2: loan payment as effected, you try to get the car student, right,
Speaker 2: they're going to see that on that derogatory.
Speaker 4: Because they calculate the monthly payment into your income. Right.
Speaker 4: So let's say you know you only make I don't know,
Speaker 4: two thousand dollars a month or bi weekly whatever, and
Speaker 4: your monthly payments are all your expense including rent, food whatever,
Speaker 4: not that food, sorry, rent bills, credit cards, it's fifteen hundred.
Speaker 4: Now you add your student loans in there. Now you
Speaker 4: only have two hundred dollars left. How are you going
Speaker 4: to get get more extra? You aren't gonna come in,
Speaker 4: you know. So it's a debt that you really don't
Speaker 4: want to carry with you, but we have to if
Speaker 4: you want to try to at least make some kind
Speaker 4: of payment towards it.
Speaker 3: So what do the derogatories? Okay, so some of the
Speaker 3: common derogatory items are late payment.
Speaker 4: Late payments, credit cards. Even I did a video about
Speaker 4: when you move out of your apartment, how to exit
Speaker 4: your apartment. Your Verizon bill, your contact is some bill,
Speaker 4: all that goes on your credit board. There's a way
Speaker 4: to shut everything off before you walk at that apartment
Speaker 4: so it doesn't travel. So what's the way that you
Speaker 4: So basically, make a checklist of everything that you have
Speaker 4: when you were living in an apartment, cable, phone, water
Speaker 4: or whatever. A week before you move out, you're supposed
Speaker 4: to call those company and let them know you're leaving,
Speaker 4: to disconnect the service on this date and send you
Speaker 4: the bill. Right, a lot of people just walk out
Speaker 4: and leave everything the Verizon bill capabill. You're supposed to
Speaker 4: return those boxes. If you don't, you get triged. You're
Speaker 4: renting those boxes, you don't own them. That's a stupid
Speaker 4: way of having a debt on your credit report to
Speaker 4: mess your credit up. Right, you can just return the boxes,
Speaker 4: play the final bill.
Speaker 6: Right, Yeah, for sure?
Speaker 4: So all right, So what the support serving?
Speaker 6: Yeah?
Speaker 3: What about taxling?
Speaker 4: So taxling shows up on your credit but it was
Speaker 4: up to two years ago. They stopped reporting it, but
Speaker 4: it stays in the public record. So let's see applying
Speaker 4: for a mortgage, when they pull for your mortgage report,
Speaker 4: they put a Lexus nexus. Your taxis show up there,
Speaker 4: so it can affect you from getting the mortgage, but
Speaker 4: it's not in your credit report anymore, but it stays
Speaker 4: in public record. What's Lexus? Next? Is a company out
Speaker 4: in Atlanta that carries all public record data for everyone. Okay, okay,
Speaker 4: for all the court system, bankruptcies, everything.
Speaker 3: So what about credit card judgments? Of people have credit
Speaker 3: card judgments?
Speaker 4: Oh, man, listen, that's a good topic. And how that happens.
Speaker 4: You know, Let's say you have a credit card. I
Speaker 4: go back to Chase because I did with them every day.
Speaker 6: Right.
Speaker 4: Let's say you have to Chase credit card for five years,
Speaker 4: three years, you paid it. After that you went into
Speaker 4: a harship. We can't paid no more and it went
Speaker 4: to collections and you didn't even pay it then, right
Speaker 4: before the statue limitation comes in, and every debt has
Speaker 4: a statue mutation, every state has a statue limitation. Right
Speaker 4: before the statute limitation ends, it goes to an attorney.
Speaker 4: They pick it up and o'bertaining a defaul judgment against
Speaker 4: you when you're wle for ten years.
Speaker 3: So ten years, ten years, but it can be it
Speaker 3: can be wiped off all right, even if you so
Speaker 3: if you have the ten year judgment, it can still
Speaker 3: be like wiped off before that ten years.
Speaker 4: Absolutely if it's resolved correct. If you don't resolve it,
Speaker 4: then it can reinue again.
Speaker 3: How do you resolve it?
Speaker 4: So you got to make an agreement with the judge,
Speaker 4: but not with the judgement attorney assume you they could
Speaker 4: either go back into the quarter and resolve it or
Speaker 4: resolve it over the phone. Make an agreements that I
Speaker 4: listen to. That's five thousand, you know, I can give
Speaker 4: you two thousand call it a day, all right, So
Speaker 4: death has to be resolved to resolved that that made
Speaker 4: me think about something because we let me keep it
Speaker 4: on the show.
Speaker 6: Right.
Speaker 3: So usually in our community, what happens is that you
Speaker 3: 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 3: You try to ignore that.
Speaker 6: But that's what that's that's what we're gonna do.
Speaker 4: That's what that's how t do a judgment.
Speaker 3: So start of it, all right, what's your advice for
Speaker 3: people that are doing that? Like I always tell people,
Speaker 3: you can't avoid problems. You have to face it right,
Speaker 3: So and then especially credit card companies, they'll work with
Speaker 3: you if you but people still mentally, I guess it's
Speaker 3: just nobody really wants to be embarrassed or they don't
Speaker 3: want to even kind of go through that if they
Speaker 3: know that they don't have the money to pay it.
Speaker 3: So you have, all right, you got yourself in a
Speaker 3: bad situation. You can't pay your bill, you're laid on
Speaker 3: your bills? What what do you do? Like, what's the
Speaker 3: best is the thing?
Speaker 4: That's funny we're talking about this A lot of people
Speaker 4: don't want to resolve to debt because they've been totally
Speaker 4: you don't have to pay it that back. It's going
Speaker 4: to disappear a lot of people. That's what a lot
Speaker 4: of people say. You know, oh, my friends, I don't
Speaker 4: want to pay it back. Is it true? Yes, you
Speaker 4: have to, right, but you have to answer the phone
Speaker 4: man like you can't. They'll work with you. They wanted
Speaker 4: to work at you.
Speaker 6: This is I'm just the willing to work with your
Speaker 6: part is one hundred percent valid.
Speaker 2: I have friends, and I mean personally, I've done it myself,
Speaker 2: like I've had I've seen my interest rate go up
Speaker 2: when I was in college to a point i was like, wait, oh,
Speaker 2: thirty thousand dollars.
Speaker 6: I'm twenty one, right, and I'm like, I don't know
Speaker 6: what to do.
Speaker 2: So I'm like I literally was listening to how I
Speaker 2: need to have and I promise you, and I heard
Speaker 2: Andree was talking about de consolidation and I called this
Speaker 2: company and I was like, all.
Speaker 6: Right, well we'll do it.
Speaker 2: And I did it, and like rather than paying at
Speaker 2: thirty right, they're the bankers are like, hey, can.
Speaker 6: We get some money? Right?
Speaker 2: So I'm like, all right, we agreed to an amount
Speaker 2: and I'm like, all right, I'll pay that off.
Speaker 4: There's a difference between that consolidation debt settlement. Yeah, I
Speaker 4: am not into that consolidated. I don't think anyone should
Speaker 4: do it. And I'll tell you why. Once the debts
Speaker 4: charged off, you have to pay something, but not the
Speaker 4: full thing. The consumers don't know that the debt consolidating
Speaker 4: where they make you paid the whole debt over three years.
Speaker 4: You kind of just paid it debt twice. Yeah, Well,
Speaker 4: because it went insurance paid it or wherever the bank
Speaker 4: resolved it, and that you paid the whole thing back
Speaker 4: again to the to the banks. It's once the deb's
Speaker 4: charged off, it's better to settle to them. Move on.
Speaker 4: You're five grand, we get that down to eighteen hundred.
Speaker 4: I would rather pay that and move on because your
Speaker 4: credit is still shot and you're not going to get
Speaker 4: the card back. Right, So I haven't paid twice.
Speaker 2: Right, Yeah, I've seen people do it, like I've seen
Speaker 2: like like you just said, like, hey, I owe twenty listen,
Speaker 2: I have ten, right, and the bank is like, you
Speaker 2: know what, I'll take that ten rather than have nothing
Speaker 2: from you for the next five years.
Speaker 4: So here's a trick behind a shot. Was talking about
Speaker 4: collection agencies and attorneys do skip traits. Well, the skip
Speaker 4: trace is where they pull your credit and they see
Speaker 4: that if you're paying like, what's it called skip trace,
Speaker 4: skip trace, skip t R a CE so skip trait
Speaker 4: skip trace works like this. They want to find you
Speaker 4: when you see where you are to serve your judgment.
Speaker 4: They pull your credit, they see you have this address,
Speaker 4: that address, that address. That's how the marshals end up
Speaker 4: coming to your house and dropping a note off, right,
Speaker 4: so they see if you're paying any debts back. So
Speaker 4: now let's say you're completely shot, your score five hundred.
Speaker 4: You have every single debt out there. When they do
Speaker 4: that skip phase, they know you're completely bro or you
Speaker 4: seem to be bro. You have a better chance to
Speaker 4: get in a lower number in that settlement because they'll
Speaker 4: take anything to move on and resolve it and keep
Speaker 4: it going. Right, if you apply for more this year,
Speaker 4: increy on there from a home mortgage company, or you're
Speaker 4: trying to buy something, you have money, everybody pops up.
Speaker 4: They want to settle, but they'll sell at a high number.
Speaker 4: And collection agencies work on commission end of the month.
Speaker 4: You get the best number.
Speaker 3: Beginning the month, you don't that so end of the month, Okay,
Speaker 3: I don't want people to let that go over your head.
Speaker 3: Explain that.
Speaker 4: Oh yeah, collection agency is working commission it's a fifty job.
Speaker 4: But your job is to you have to hit certain numbers.
Speaker 4: At the end of the month, you have to hit
Speaker 4: let's say your budget is thirty thousand. After to that
Speaker 4: you get commissioned. So that's why at the beginning of
Speaker 4: the month, let's we had a death for five thousand,
Speaker 4: they'll say, oh, we can only settle for forty five
Speaker 4: hundred four thousand. Come after the last five days of
Speaker 4: the month, that same depth for eighteen hundred dollars. But
Speaker 4: you can't give off your credit report because the loss
Speaker 4: states whether you pay or don't pay something, it stays
Speaker 4: on your credit pord for seven years. That's where my
Speaker 4: company comes in. I make your seven years ninety days,
Speaker 4: so I'm able to make your credit jump right back
Speaker 4: to seven fifty eight hundred squeakily. Nothing ever comes back
Speaker 4: on your credit report.
Speaker 3: No credit repair.
Speaker 4: Oh yes, I'll talk about that. It's allowed.
Speaker 3: Were off camp, you said that there's no such thing.
Speaker 4: It's the credit credit for it doesn't exist. Right, it's
Speaker 4: a scam. Right, that's why every single company. Can I
Speaker 4: call the companies out or you don't care? No, I
Speaker 4: mean that's all your your mom and pop company, Lexington law,
Speaker 4: credit payer, dot com credits saying I want to spend
Speaker 4: this one else the name by the want too, and
Speaker 4: they all do the same thing, send dispute letters with
Speaker 4: no letterhead. So yeah, to think about that. If I'm
Speaker 4: paying you ninety nine dollars, you said I'm gonna fix
Speaker 4: your credit, why is only the instructions on letterhead but
Speaker 4: not the level you sent to the credit beer on
Speaker 4: letterhead looks like I'm sending the letter one two. If
Speaker 4: you ever read those dispute letters, it's like your ten
Speaker 4: year old kid wrote it.
Speaker 3: Right.
Speaker 4: So, for example, let's say Verizon. You have a Verizon bill,
Speaker 4: you have Verizon home service, cable internet, whatever it is
Speaker 4: that you have a Verizon right for over a year,
Speaker 4: all of a sudden you moved out, You didn't pay
Speaker 4: the bill because you didn't return the box on the
Speaker 4: final bills, and you have this on your credit report.
Speaker 4: Verizon has a collection for you. They're gonna write a
Speaker 4: letter please validate this debt. I never had this debt? Well,
Speaker 4: what do you have for the last twelve months? Because
Speaker 4: everything has a pay per trail behind it, right, So
Speaker 4: that's what a letter of it works. Not a letter
Speaker 4: goes to the credit viewers. The credit viewer sends it
Speaker 4: to the Verizon. Verison sends back your whole statement in
Speaker 4: the digital file, your checks that you made a slater.
Speaker 4: They even keep phone communication if you spoke to them.
Speaker 4: You spoke to us on this day, and that's all.
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Speaker 4: That's the foible. I have it in my office when
Speaker 4: you speak to these companies. Oh my clients quota right.
Speaker 4: So anyway back to the whole credit period and the
Speaker 4: letters thing doesn't work because if he has a paper
Speaker 4: trail one, there's no such thing as fixing credit. Every
Speaker 4: consumer has a right to dispute something on their credit
Speaker 4: if they believe it was reported erroneously or inaccurately, that's
Speaker 4: you're right.
Speaker 3: So from my understanding, it's like correct me if I'm wrong.
Speaker 3: They write a letter where you everybody has the ability
Speaker 3: to write a letter to a company disputing something. If
Speaker 3: they don't respond to that dispute, it has to come
Speaker 3: off right. So that's kind of what they do because
Speaker 3: they know most people are they don't want to do
Speaker 3: it themselves, so they do.
Speaker 4: It for them correct. And the reason and the other
Speaker 4: thing is that in the industry, there's something called servicing
Speaker 4: a debt and owning a debt. Let me explain that
Speaker 4: for you. I'll say it again, servicing a debt and
Speaker 4: owning a debt, owning a debt. There's only four companies
Speaker 4: in the industry that buys debts Portfolio Recovery, Midland Funding, MCM,
Speaker 4: and Calgy Portfolio. Those four companies buy debts and they
Speaker 4: give you thirty days to resolve it. If you don't
Speaker 4: resolve it, they get it the fault judgment against you.
Speaker 4: In an attorney attorney serves you you gotta show up
Speaker 4: in court. Blah blah blah, I shouldn't say blah blah, blah.
Speaker 4: But the second thing is servicing a debt. So let's
Speaker 4: say Verizon come back to Verrison. RGM Acquisition is a
Speaker 4: collection agency. They don't own the debt. Verizon sent the
Speaker 4: debt to RGM to for them to call you ten
Speaker 4: times a day. They don't have the man power to
Speaker 4: do that. So now when you send these letters, the
Speaker 4: collections agency was never supposed to be there. That's why
Speaker 4: the collection agency will come off your credit. That's all
Speaker 4: the letter does. But the debt comes back around ninety
Speaker 4: days later from to another agency, so the debt is
Speaker 4: never really leaving you, so that everything has to be resolved.
Speaker 4: So back to the word of credit re peer. Yeah,
Speaker 4: it doesn't exist anyone. Everyone has a right to contest
Speaker 4: something if it's not accurate on your credit re board,
Speaker 4: but not out of ten times. All these banks and
Speaker 4: these they're so squeaky clean with their data now, like
Speaker 4: it's very minimum room for errors.
Speaker 6: That's important. Man.
Speaker 2: You gotta educate yourself, right, Like, rather than paying ninety
Speaker 2: nine dollars, you can do yourself.
Speaker 6: Do it yourself.
Speaker 2: Read for about two hours a day, figure it out. Man,
Speaker 2: it's valuable. So like you're saving your time and your
Speaker 2: money not supporting.
Speaker 3: All right, Okay, so now we're going to go into
Speaker 3: our new topic, our new section.
Speaker 2: We got a whole new segment that we're calling it
Speaker 2: ten for ten.
Speaker 6: So we got ten questions.
Speaker 2: Hopefully you can give us ten answers and it's courtesy
Speaker 2: of Instagram.
Speaker 6: Pretty much our follow us.
Speaker 2: We laid it out there that we're gonna have credit
Speaker 2: as an episode and we got a crazy response. Yeah.
Speaker 4: Yeah, there's so much to learn about this credit industry,
Speaker 4: how it works, like how credit is built, how you
Speaker 4: get approved for credit card. There's a whole dollarge based
Speaker 4: on that. We're just touching like this.
Speaker 2: Yeah, so we took we took ten and hopefully we
Speaker 2: can get ten answers questions.
Speaker 3: We're gonna we're gonna, yeah, we're gonna jump right into it.
Speaker 3: So yeah, let's do it, all right. So, yes, this
Speaker 3: is a new segment that we're gonna do. Hopefully we
Speaker 3: do it every show. Yeah, maybe not every show, but
Speaker 3: depending on if it's an education show like it is
Speaker 3: right now, where we're actually bringing somebody in every show
Speaker 3: with the educational show. But if this is a show
Speaker 3: where we're bringing an expert in, we're going to start
Speaker 3: a new segment called ten for ten right, because as
Speaker 3: I always say, it's not our podcast, it's your podcast.
Speaker 3: It's a public's podcast, and the platform is to educate.
Speaker 3: So we're taking ten questions from our listeners and we're
Speaker 3: going to answer those questions, right, and it's all on Instagram.
Speaker 3: So we'll put a post up a few days before
Speaker 3: and we'll ask you know your your questions, and then
Speaker 3: you guys just comment in the comments section and then
Speaker 3: we'll pick ten questions and then we'll we'll do.
Speaker 6: It, so asks the expert.
Speaker 3: Yeah, for sure, for sure. So we're going to start
Speaker 3: out with the first question is from I underscore am
Speaker 3: Underscore Asia shout out to her. She wants to know
Speaker 3: how do you establish business credit?
Speaker 4: All right, that's a good question, and there's actually a
Speaker 4: big that's a big topic actually. So everyone seems to
Speaker 4: think that business credit that once you register a company
Speaker 4: name and you have a website and a bank account,
Speaker 4: you have business credit. Actually don't have business credit. You're
Speaker 4: still PG and everything under your social. Business credit runs
Speaker 4: separately from your social it's established on the tax id.
Speaker 4: It has to standalone by itself, has to sit by
Speaker 4: itself when you PG something that goes on your personal
Speaker 4: credit GG with personal guarantee. Okay, excuse me. It's when
Speaker 4: you PG something, it sits on your credit, on your
Speaker 4: personal credit. Want it affects your DTI because if it's
Speaker 4: like an American Express charge card, you're swiping thirty thousand
Speaker 4: a month. Remember low debt, high score. That's affecting your score.
Speaker 4: And two it makes your credit score drop. Right, So
Speaker 4: business credit has to stand alone by itself on the
Speaker 4: tax sidy. How do you establish it for There's a
Speaker 4: ten step process. One you have to be the tax
Speaker 4: iid the bank account. You have to be registered in
Speaker 4: your newspaper, your counting newspaper, on the two newspapers showing
Speaker 4: that you have your legitimate, legitimate business. You can't have
Speaker 4: your home address as the business address because you need
Speaker 4: to be scores Experience equal facts Dunn Bradstree. Experience equal
Speaker 4: facts is not recognized. Your home addresses your business address,
Speaker 4: and your cell phone is a business number. That's why
Speaker 4: I tell people get a virtual space one ninety nine,
Speaker 4: Like we just or what about po box?
Speaker 3: No, you can't have a box, So all right, I
Speaker 3: didn't know that, So you have Okay, So you need.
Speaker 4: A receptance and the phone number where they can call
Speaker 4: them verifying and send mails to.
Speaker 3: Okay, So you can't get business credit without an address.
Speaker 3: You need to separate from your home address and you
Speaker 3: need an office address.
Speaker 4: That's correct. That's why I say you get a read
Speaker 4: your space one night and nine is the cheapest thing, right,
Speaker 4: because it needs to be verifiable by experiening equal facts.
Speaker 4: Because there's three scores Dunn A Bradstree explant in equal facts.
Speaker 4: You need three scores and all three viewers. Is how
Speaker 4: you build a business credit.
Speaker 6: So why why is trans Union left out of that?
Speaker 4: Did you just don't use it? It's not heavy enough,
Speaker 4: all right? So okay, so let's stay on that for
Speaker 4: a little bit. So you all right, start a business.
Speaker 4: You got your LLC, you got you got your number bank.
Speaker 4: You can't open your bank account.
Speaker 3: Registered in the courthouse. Ye did all that newspaper, did
Speaker 3: all that stuff. Now you the first So now you
Speaker 3: have to get an address.
Speaker 4: Correct.
Speaker 3: So now we're now we're trying to build credit for
Speaker 3: the business. Right, So you get a cause. You can
Speaker 3: get a Google number. Yeah, you get a Google number.
Speaker 3: You get a number separate from your cell phones and
Speaker 3: get an address separate from your cell phone. Now can
Speaker 3: the address for another like say, can I can I
Speaker 3: use my sister's address, my brother's address. You can just
Speaker 3: separate from the one live there exactly, okay, the one
Speaker 3: you live so now that so now, now how do
Speaker 3: you establish.
Speaker 4: Now you have that, you need trade lines? So this
Speaker 4: company talk about that one. So there's companies like Quills.
Speaker 4: There's like ten other companies out there. I can't think
Speaker 4: of it right off the top of my head. But
Speaker 4: here's how it works. I have a whole list to
Speaker 4: my office. You reach out to them and they give
Speaker 4: you ten They give you tradelines. Trade lines are like loans.
Speaker 4: They'll give you like a thousand dollar of credit limit.
Speaker 4: You have to use fifty dollars for the next six
Speaker 4: months of pay on time fifty or more. It's built
Speaker 4: just like you're billing personal credit. But it's two there
Speaker 4: events once. So you need three of them. Three vendors.
Speaker 4: If you want to get cards on like Best Buy,
Speaker 4: Office Depot, Office Max, those guys. If you want credit
Speaker 4: cards from the bank, you need six venders. Sixpenders are
Speaker 4: six trade lines, right, and you built from with that
Speaker 4: for six months from there you apply for your own
Speaker 4: credit cards. Now, if you want loans out of the bank,
Speaker 4: you have to have a p and L, a profit
Speaker 4: and loss, and you have to have a tax return
Speaker 4: in order for the bank to extend loan under the
Speaker 4: business because they have to see money coming into the company,
Speaker 4: money going back out a p and L to see
Speaker 4: that you know you can pay the loans back.
Speaker 3: Okay, okay, okay.
Speaker 2: So we got our next question from Bob Bob Lewis III,
Speaker 2: and he asked, can you establish credit.
Speaker 4: For your children absterly at seventeen or eighteen years old? Yeah,
Speaker 4: you could. How you do it is that you Adam
Speaker 4: as an authorized user one of your credit cards. But
Speaker 4: with that coming back to your story, it has to
Speaker 4: be a clean credit. You can't have high balances, you
Speaker 4: can't have derogatories. But whatever you do will affect that person.
Speaker 6: I got lucky.
Speaker 2: I'm be honest, this is like a true story, and
Speaker 2: I think we I first noticed it when shut pull
Speaker 2: my credit and I was twenty six and he was like, wait,
Speaker 2: you have twenty three years of credit history, and I'm like,
Speaker 2: I don't know.
Speaker 6: And then I realized that my parents hut me on
Speaker 6: their card.
Speaker 2: That they've had since nineteen eighty five or something like that,
Speaker 2: and I was like, oh wow, and they've been responsible,
Speaker 2: So like, yeah, that don't effect you.
Speaker 6: Ye it affected me in a positive way, positive right
Speaker 6: of negative way? Yeah yeah, yeah.
Speaker 4: So you can do it, but it has to be
Speaker 4: cleaning history right at the age seventeen. Moving on?
Speaker 3: Okay, perfect, Okay, So this is from Nelly Gibbs. She
Speaker 3: wants to know what the best way to repay student
Speaker 3: loans and what's the best way to handle student loan debts.
Speaker 4: Oh so we were talking about this earlier. So depending
Speaker 4: on the loan, if it's deferred or some collection, I mean,
Speaker 4: we kind of gott to find out that. But anyway,
Speaker 4: the point is, if you have a bunch of student loans,
Speaker 4: everything is based off of income. The payment plan is
Speaker 4: based off on an income based right, So when you
Speaker 4: call a student loans you want to I suggest everyone
Speaker 4: create a payment plan, Like, don't keep the firm. It's
Speaker 4: not a good thing to do it because it affects
Speaker 4: you from doing bigger purchases in the future. But on
Speaker 4: what you do is you call it a student un company,
Speaker 4: tell me you want to go on the income based
Speaker 4: repayment plan and they send your form you fill out.
Speaker 4: The trick to that is that make sure when you
Speaker 4: fill out the forms you put that you have a
Speaker 4: lot of expenses, so the monthly payment is a low
Speaker 4: payment and they keep you. They locked you into that
Speaker 4: for a couple of years and then you recertify again.
Speaker 4: But you want to put like you know, you have
Speaker 4: you know, rent cards, take fake care, whatever it is
Speaker 4: to show that you have a lot of expenses. If not,
Speaker 4: they're going to hit you with a high monthly payment
Speaker 4: of seven hundred dollars more.
Speaker 6: Yeah, we've seen. I've seen yet like I've seen.
Speaker 4: That's how you trick it.
Speaker 2: Yeah, so our next question is from uh oh and
Speaker 2: also next thing, if you have student loans on like
Speaker 2: two different like Sally made none and all that, you
Speaker 2: can actually have all of those loans refinance into one loan.
Speaker 4: And I suggest everyone do that so it's easy for
Speaker 4: you attract the payments. And I'm making what they payments
Speaker 4: to five different companies that.
Speaker 2: Is one hundred percent trol man like I was again,
Speaker 2: i have student loans, Like the first thing what I
Speaker 2: did was like slid them all navy and is now
Speaker 2: my correct shout out to them. So the next question
Speaker 2: is from at Flow Underscore Bella Underscore, and her question
Speaker 2: is what are some ways I can fix my credit herself?
Speaker 6: Like what can she do?
Speaker 4: So first off, you got to pull the report and
Speaker 4: pull a real time report. You know, credit cardon is
Speaker 4: not accurate, is not detailed. If you have a mortgage lender,
Speaker 4: those are the best reports that they try and merge
Speaker 4: and they give you your whole history for when you
Speaker 4: were seventeen or when you got credit the current excuse me.
Speaker 4: Once you pull out report, you able to see all
Speaker 4: the derogatories and the issues that are holding down your credit.
Speaker 4: If it's stuff that you know that was paid off already,
Speaker 4: you can dispute it with the beers that had like
Speaker 4: third party collections that have that taken off. But you
Speaker 4: got to see the negatives on there and what debts
Speaker 4: they are, so you can put a plant to address them.
Speaker 4: If there's some desks, you can do settlements that you
Speaker 4: have to do settlements so you can call it back
Speaker 4: the creditors directly and negotiate with them to make a
Speaker 4: payment plan. You could even do one account a month
Speaker 4: until you get to your end.
Speaker 2: Results and some things is one hundred percent acurate, Like
Speaker 2: it'll show you that you missed a card payment in
Speaker 2: twenty fourteen.
Speaker 3: Very detailed, very detail. All right, So this is a
Speaker 3: big one. This is a big one. This is from
Speaker 3: who cares underscore? No one I like that? So can
Speaker 3: child support be removed from your credit? And can we
Speaker 3: talk about the effects of child support on your credit?
Speaker 4: So child support it reports as a collection debt. Right, Yes,
Speaker 4: it can be removed. Actually, we're the only one could
Speaker 4: remove them. A letter cannot remove them. The problem is
Speaker 4: if we remove them, you cannot miss a payment again,
Speaker 4: because if you miss a payment, it'll come back on.
Speaker 4: Same thing for late payments on credit card. I want
Speaker 4: to talk about that. Actually we can remove all your
Speaker 4: late payments, but you cannot miss any late payments moving forward.
Speaker 4: If not, it will come back on your credit pordud
Speaker 4: A bank reports and a batch file. Right, so child
Speaker 4: support can report and it is a collection also, so
Speaker 4: if you're trying to buy something and you know your
Speaker 4: detail is off and your numbers are off, it can
Speaker 4: affect the monthly payment that you're paying child support. It
Speaker 4: can affect your approval of how much you can get
Speaker 4: approofer if that makes sense, all.
Speaker 2: Right, So our next one is from at done in
Speaker 2: three to one and he asked when do agencies report
Speaker 2: debt balances?
Speaker 6: Is there a specific time during the month that they
Speaker 6: do it.
Speaker 4: Or when his agencies? What do you talk?
Speaker 2: So I'm assuming that he means like when does like
Speaker 2: TransUnion or experience experience or epifact.
Speaker 4: Is there a specific Well, the buwers don't. The buwers
Speaker 4: update on the first to the fifth of every month.
Speaker 4: But the data comes from the bank or the collection
Speaker 4: or the credit does not come from the from the bureau.
Speaker 4: They don't want to just house the data, and on
Speaker 4: the first to the fifth of every month they update
Speaker 4: new reports. Okay, so your bank reports different days. Some
Speaker 4: days they report, you know, the ten to fifteenth whatever.
Speaker 4: Your building cyclists. But that's something you could find out. Yeah.
Speaker 4: And also to make it easy for you, if you
Speaker 4: want to make sure you never laid on your payment,
Speaker 4: you can call all your credit card companies and ask
Speaker 4: them to make your do they the same day every month,
Speaker 4: So if you have five cards, you can make them
Speaker 4: all of them the fifteenth of every month, so you know,
Speaker 4: you know, you know, if you're a person that keeps
Speaker 4: forgetting to make payments. You know, on the fifteenth, every
Speaker 4: bill is due if you can afford to do it.
Speaker 3: Okay, Raige against Ordinary has a question she wants to know.
Speaker 3: After Chapter seven bankruptcy, how long does that stay on
Speaker 3: your report?
Speaker 4: Bankruptcy stay for seven years. And here's the crazy about
Speaker 4: bankruptcy now. One the creditors can contest the bankruptcy. Really,
Speaker 4: they don't have to. Like let's say you have bank
Speaker 4: markers motoris for this. They can contest it. They don't
Speaker 4: have to accept the bankruptcy. They can say no, I
Speaker 4: don't you know, we don't want to know. They can
Speaker 4: contest the bankruptcy. To the new bankruptcy laws, depending on
Speaker 4: what chapter you're filling, you have to pay a percentage
Speaker 4: of your debt back in court right makes you have
Speaker 4: to pay a percentage, and that's determined by the judge,
Speaker 4: the magistrate wherever's doing your bankruptcy what your percentage is.
Speaker 4: So if you file in bankruptcy, you gotta really think
Speaker 4: about it. If you don't have like fifty to one
Speaker 4: hundred thousand dollar worth of death, it's not really fining bankruptcy.
Speaker 4: It's not really worth it in my eyes to file
Speaker 4: bankruptcy for seven years.
Speaker 2: That was gonna be like my next kind of question
Speaker 2: off of that is like, when would it be I
Speaker 2: guess appropriate to file for bankruptcy.
Speaker 6: Right, there's a certain amount of debt that.
Speaker 4: You should I mean, there's a couple of qualifying scenariosm
Speaker 4: If you're not working, you know that you can't do
Speaker 4: anything about it. You can't pay anything, you know. But
Speaker 4: if you are working, you have some savings because when
Speaker 4: you FID bankruptcy, they go through all you have to
Speaker 4: disclose all your assets, right, so you know, if you
Speaker 4: have money in the bank, you're like, well, why can't
Speaker 4: you pay this? Knowing that the banking can test it?
Speaker 4: Not all banks have to and that happened to me
Speaker 4: actually because I did it many years ago and they
Speaker 4: contested it. Then you can't have been put You can't
Speaker 4: open in the camp for three years a bank account,
Speaker 4: but you can't show if you have any kind of money,
Speaker 4: any bank account, any bank camp, because they can go back, oh,
Speaker 4: well you have money. You know. It becomes very messy.
Speaker 4: But again with the bankruptcy, and it's not as easy
Speaker 4: as like the way it was in twenty ten. You
Speaker 4: followed and you walk await, you got to pay a
Speaker 4: percentage back. So you know, I think everyone should really consider,
Speaker 4: depending on this scenario instead of filing bankruptcy. It's not
Speaker 4: the best route. It is a route, but it's not
Speaker 4: the best route depending on your situation. But it stays
Speaker 4: there for seven years and then you can the other
Speaker 4: thing about that you burn. Let's say in the industry
Speaker 4: is prime and subprime banks. So let's say you file
Speaker 4: bankruptcy for Discover, American Express, Barclay Chase. Once you find bankruptries,
Speaker 4: you can't get back to do business with those guys again,
Speaker 4: They're not gonna extend any credit. So now you're kind
Speaker 4: of stuck in a subprime rate subprime bank kind of
Speaker 4: rest of your life where you're being high interest rates
Speaker 4: because major banks are not gonna extend any kind of
Speaker 4: credit card to you.
Speaker 6: That's what I want.
Speaker 5: My graduates from my school being forced back drop drop
Speaker 5: Mike drop.
Speaker 3: Bad drop drop.
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