WEBVTT - Study Hall: Credit 101 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:03.200 Sponsored by the United States Department of Homeland Security. 0:01:06.720 --> 0:01:08.800 All right, guys, So a lot of people asks us 0:01:08.800 --> 0:01:10.520 how do they make a podcast? So I'm let you 0:01:10.680 --> 0:01:14.840 on a secret on the easiest, most productive way to 0:01:14.959 --> 0:01:17.360 start a podcast and get it up and running. And 0:01:17.400 --> 0:01:20.880 that is the app called Anchor is free. 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So if you're interested in starting a podcast, 0:01:43.480 --> 0:01:47.480 go download the free Anchor app or go to anchor 0:01:47.640 --> 0:01:49.520 dot fm to get started. 0:01:49.600 --> 0:01:50.160 Let's do it. 0:01:55.640 --> 0:02:00.559 My graduates from my school being forts bad drop bags 0:02:00.640 --> 0:02:03.960 drop might drop bag drop drop. 0:02:14.240 --> 0:02:17.440 You talked about FCO score, right, can you just explain 0:02:17.680 --> 0:02:18.120 the FIGHTO. 0:02:18.440 --> 0:02:20.799 So FCO is fair Isaac credit company. They don't want 0:02:20.800 --> 0:02:23.600 to creates the whole score from all three viewers for you. 0:02:23.919 --> 0:02:26.440 They use the latest advantage. It will advantage ten vantage 0:02:26.480 --> 0:02:28.760 a that we're using that advantage ten. They use the 0:02:28.840 --> 0:02:30.399 latest vantage. So what is it? What is that? Because 0:02:30.400 --> 0:02:32.160 people might not know what So it's the way the 0:02:32.240 --> 0:02:34.720 scores created the data that's put into the score. So 0:02:35.040 --> 0:02:40.120 they don't pick every single like let's say your marketing 0:02:40.160 --> 0:02:42.720 spress card. Certain cards they pick up and they create 0:02:42.760 --> 0:02:44.880 the score. So the department that's why I speak about 0:02:44.880 --> 0:02:46.760 department store card. They don't have your credit that much, 0:02:47.280 --> 0:02:49.040 So stay away from them, stay into the visa, the 0:02:49.080 --> 0:02:50.560 master guards and so forth. Those are the ones that 0:02:50.639 --> 0:02:52.840 create the scores for you. And then your payment history, 0:02:52.880 --> 0:02:56.119 how much new credit you have, utilization, that's all that's 0:02:56.120 --> 0:02:56.960 calculated to it. 0:02:57.200 --> 0:03:00.920 Okay, okay, so all right, So as far as like, 0:03:01.000 --> 0:03:05.720 there's different factors that determine your credit score, right right, correct? 0:03:05.960 --> 0:03:08.040 What is some of the key fact is that people 0:03:08.120 --> 0:03:08.880 should be aware of. 0:03:09.720 --> 0:03:11.920 One of the major factors I see this on everyone's 0:03:11.919 --> 0:03:14.840 credit report is utilization. Just like you were talking about. 0:03:15.320 --> 0:03:17.720 You know, you need to keep your utilization under thirty percent. 0:03:17.960 --> 0:03:20.480 Once you start hitting thirty one thirty two percent of 0:03:20.520 --> 0:03:23.760 that utilization, your score drops significantly and it takes two 0:03:23.760 --> 0:03:25.840 months two billion cycles for it to go up unless 0:03:25.880 --> 0:03:28.240 you call the bank, like you didn't ask them just 0:03:28.240 --> 0:03:30.040 to do a courtesy for you. A lot of people 0:03:30.040 --> 0:03:31.679 don't know how to do that, right or they don't 0:03:31.680 --> 0:03:33.680 know they could do that. So one of them is 0:03:34.480 --> 0:03:38.040 keep the utilization very low thirty percent or below. Let's see, 0:03:38.040 --> 0:03:42.200 you have five cards and excuse me, and you instead 0:03:42.200 --> 0:03:44.560 of putting all the charges on one card, split it 0:03:44.600 --> 0:03:47.040 across three cards to keep it under thirty percent. Your 0:03:47.040 --> 0:03:50.480 score will stay high. Second thing is increase six increases 0:03:50.520 --> 0:03:53.080 a year. If you do more than that, your score 0:03:53.160 --> 0:03:57.320 drops each increase two point five points. Right, and banks 0:03:57.720 --> 0:04:00.040 only give you what this the other banks give you 0:04:00.040 --> 0:04:02.480 you apply for in your scenario, if you do that now, 0:04:02.560 --> 0:04:03.720 it would have been hard for you to get all 0:04:03.760 --> 0:04:06.680 those cards, right because banks are tight on giving our credit. 0:04:07.640 --> 0:04:09.200 So banks won't give you what this the other banks 0:04:09.200 --> 0:04:10.800 will give you. So let's say you apply for City 0:04:10.840 --> 0:04:13.240 Bank or Chase today. You got to deny it. There's 0:04:13.240 --> 0:04:15.760 an incre there. If a bank don't see a card 0:04:15.840 --> 0:04:18.320 open up, they're not going to extend your credit to you, right, 0:04:18.440 --> 0:04:19.520 So new credit. 0:04:19.560 --> 0:04:22.599 All right, So thirty percent. So if you have ten 0:04:22.640 --> 0:04:24.919 thousand dollars in credit available, only use three thousand. 0:04:24.960 --> 0:04:25.239 Correct. 0:04:25.560 --> 0:04:26.360 That's pretty much. 0:04:26.240 --> 0:04:29.400 Ah not with one last thing. Also, like if you're 0:04:29.400 --> 0:04:32.039 trying to build your score and you're in the six fifty, 0:04:32.040 --> 0:04:34.640 you're lingering around the six to fifty range. You shouldn't 0:04:34.640 --> 0:04:36.640 pay off your card in full every month because the 0:04:36.680 --> 0:04:38.400 bank needs to make the bank needs to make a 0:04:38.400 --> 0:04:40.839 little bit of interest off of you to report okay 0:04:40.839 --> 0:04:43.880 on your credit report. Correct, it's only until you're like 0:04:43.920 --> 0:04:45.920 a seven to fifty a highest score you can pay 0:04:45.920 --> 0:04:47.760 your card off in full because your score is already built. 0:04:48.120 --> 0:04:49.600 But if you're in the six fifteen, you're trying to 0:04:49.640 --> 0:04:51.560 raise it, don't pay the card off. 0:04:51.680 --> 0:04:53.840 Can you just explain that, because that's actually the first 0:04:53.880 --> 0:04:55.919 time I'm hearing that in detail. 0:04:56.000 --> 0:04:58.000 Like, so you don't pay off the credit card on 0:04:58.120 --> 0:04:59.840 full every month like every other month. You could pay 0:04:59.839 --> 0:05:02.360 it off from the fall. Why not very well, because 0:05:02.400 --> 0:05:05.440 the bank wouldn't report okay on the credit report. On 0:05:05.560 --> 0:05:07.960 the slot that says okay, it'll say no data okay. 0:05:08.080 --> 0:05:10.520 No data is like no credit okay. So you had 0:05:10.600 --> 0:05:11.960 like trick the system that will make a little bit 0:05:11.960 --> 0:05:13.320 of interest off for you. Because remember the bank's in 0:05:13.320 --> 0:05:16.280 the business of making money, right, right, and that's why 0:05:16.279 --> 0:05:17.280 they charge these interest rates. 0:05:17.320 --> 0:05:19.560 So they want to see that your valued customer over 0:05:19.600 --> 0:05:21.359 a period of time exactly, right. So if I have 0:05:21.400 --> 0:05:23.880 a thousand dollars and I matched out a thousand and 0:05:23.920 --> 0:05:26.640 I pay a thousand, that's not really showing anything. 0:05:26.360 --> 0:05:28.440 Exactly, and that's not helping them to there, not making money. 0:05:28.760 --> 0:05:30.760 So there's no sentence. So I'm to report, okay, on 0:05:30.800 --> 0:05:32.120 the credit bord you have the report to have a 0:05:32.200 --> 0:05:34.680 zero balance, but you don't have that that okay, that 0:05:34.800 --> 0:05:37.840 green mark on your credit board is it is no data, okay. 0:05:37.920 --> 0:05:39.800 And then the way you see that is actually from 0:05:39.800 --> 0:05:42.000 the credit report from the viewers. You wouldn't see it 0:05:42.000 --> 0:05:44.320 on like a mortgage report or on your ownline report. 0:05:44.320 --> 0:05:46.159 It's when you pull then actual report from the viewers 0:05:46.240 --> 0:05:47.000 is when you see that. 0:05:47.400 --> 0:05:49.159 All right. All right, So now all right, so you 0:05:49.200 --> 0:05:51.719 got some framework and then you got some interesting stories 0:05:51.720 --> 0:05:53.039 to me and troub. But now we're gonna we're going 0:05:53.080 --> 0:05:55.400 to dive deep into the the to the world of 0:05:55.480 --> 0:05:58.640 credit and yeah, we're gonna hopefully drop some gyms that 0:05:58.680 --> 0:06:01.640 can say if you guys, a lot of time and money. 0:06:01.560 --> 0:06:02.279 Depends the paths. 0:06:02.279 --> 0:06:03.920 Get ready, all right, So now we're going to get 0:06:03.920 --> 0:06:06.840 into the part that most people aren't aware of on 0:06:06.839 --> 0:06:09.520 their credit card that are actually happening. But you know, 0:06:09.600 --> 0:06:11.880 when you make a late payment, or you miss a payment, 0:06:11.960 --> 0:06:15.240 or you miss a few there's something that's called a derogatory. 0:06:15.360 --> 0:06:17.640 That's correct, that's god. 0:06:17.839 --> 0:06:20.120 Could you want to explain the impact that that has 0:06:20.120 --> 0:06:21.040 and some examples of it. 0:06:21.160 --> 0:06:24.600 Well, the derogatory session. Everyone has that on a credit report, right, 0:06:24.680 --> 0:06:26.400 So what do you make a late payment? And by 0:06:26.400 --> 0:06:28.880 the way, the way they report late payments these days 0:06:28.880 --> 0:06:32.039 have changed because back then right after thirty days the 0:06:32.080 --> 0:06:33.599 next day you were late. Now to give you a 0:06:33.600 --> 0:06:35.880 thirty day grace period. But if the payment is not 0:06:35.920 --> 0:06:38.719 made before five pm the twenty ninth of the next month, 0:06:39.160 --> 0:06:42.080 then you get reported the first thirty days. That's a derogatory, 0:06:42.240 --> 0:06:45.240 right collections charge off. Let's say you had a credit 0:06:45.320 --> 0:06:47.720 card for five six years. You know you were paying 0:06:47.800 --> 0:06:50.480 for three four years, you ran into a hardship, you missed, 0:06:50.560 --> 0:06:52.400 you couldn't keep up with the payments anymore, you miss 0:06:52.920 --> 0:06:54.880 six months of payments, it gets charged off. That's a 0:06:54.920 --> 0:07:00.760 derogatory Public records lawsuits judgments to the loans follow on 0:07:00.760 --> 0:07:03.240 there as well. Yes, absolutely, because one here's the thing 0:07:03.240 --> 0:07:08.080 about student loans. Everyone keeps deferring the student loans and 0:07:08.520 --> 0:07:10.440 that's actually you shouldn't be doing that. You should at 0:07:10.520 --> 0:07:12.240 least try to make some sort of payment plan with them. 0:07:12.280 --> 0:07:15.280 Because now one it affects your credit, your DTI because 0:07:15.320 --> 0:07:17.360 let's see, you think out six thousand, you defer it 0:07:17.400 --> 0:07:20.360 for five years. Now your loan is ten thousand. Now 0:07:20.360 --> 0:07:24.040 you're upside down with the loan one two your lay payments. Also, 0:07:24.400 --> 0:07:28.040 the report on the credit bord is the derolatory if 0:07:28.040 --> 0:07:31.520 you miss the lay payment. So I don't suggest anyone 0:07:31.520 --> 0:07:33.560 try to put the payment in deferment for too long, 0:07:34.000 --> 0:07:37.320 but if you have to make sure you don't have 0:07:37.360 --> 0:07:39.160 a gap where it comes out of deferment and you're 0:07:39.160 --> 0:07:40.640 supposed to make a payment and go back into the 0:07:40.640 --> 0:07:42.280 deferment heed to avoid that. 0:07:42.480 --> 0:07:45.120 Yeah, it's tough because I mean we covered it pretty extensively, 0:07:45.200 --> 0:07:51.320 Like we have millions of Americans that are trained industry, 0:07:51.400 --> 0:07:54.280 and it's like, you know, the first thing is like deferment, 0:07:54.320 --> 0:07:56.920 but it only lasts six to twelve months, right, and 0:07:56.960 --> 0:07:58.960 that that can affect you long term, right when it's 0:07:58.960 --> 0:08:01.440 time for you to now get the home like student 0:08:01.520 --> 0:08:04.520 loan payment as effected, you try to get the car student, right, 0:08:04.560 --> 0:08:06.640 they're going to see that on that derogatory. 0:08:06.200 --> 0:08:08.640 Because they calculate the monthly payment into your income. Right. 0:08:08.720 --> 0:08:11.040 So let's say you know you only make I don't know, 0:08:11.080 --> 0:08:14.840 two thousand dollars a month or bi weekly whatever, and 0:08:14.880 --> 0:08:17.720 your monthly payments are all your expense including rent, food whatever, 0:08:18.160 --> 0:08:21.920 not that food, sorry, rent bills, credit cards, it's fifteen hundred. 0:08:22.360 --> 0:08:24.520 Now you add your student loans in there. Now you 0:08:24.600 --> 0:08:26.480 only have two hundred dollars left. How are you going 0:08:26.520 --> 0:08:28.560 to get get more extra? You aren't gonna come in, 0:08:28.600 --> 0:08:30.760 you know. So it's a debt that you really don't 0:08:30.840 --> 0:08:33.520 want to carry with you, but we have to if 0:08:33.559 --> 0:08:34.760 you want to try to at least make some kind 0:08:34.800 --> 0:08:35.679 of payment towards it. 0:08:35.920 --> 0:08:39.520 So what do the derogatories? Okay, so some of the 0:08:39.600 --> 0:08:42.280 common derogatory items are late payment. 0:08:42.120 --> 0:08:45.120 Late payments, credit cards. Even I did a video about 0:08:45.160 --> 0:08:47.280 when you move out of your apartment, how to exit 0:08:47.320 --> 0:08:50.920 your apartment. Your Verizon bill, your contact is some bill, 0:08:51.080 --> 0:08:52.839 all that goes on your credit board. There's a way 0:08:52.880 --> 0:08:54.920 to shut everything off before you walk at that apartment 0:08:54.960 --> 0:08:57.240 so it doesn't travel. So what's the way that you 0:08:57.280 --> 0:08:59.920 So basically, make a checklist of everything that you have 0:09:00.160 --> 0:09:02.720 when you were living in an apartment, cable, phone, water 0:09:02.800 --> 0:09:05.080 or whatever. A week before you move out, you're supposed 0:09:05.120 --> 0:09:06.680 to call those company and let them know you're leaving, 0:09:07.240 --> 0:09:09.760 to disconnect the service on this date and send you 0:09:09.800 --> 0:09:11.959 the bill. Right, a lot of people just walk out 0:09:12.000 --> 0:09:15.160 and leave everything the Verizon bill capabill. You're supposed to 0:09:15.160 --> 0:09:17.560 return those boxes. If you don't, you get triged. You're 0:09:17.559 --> 0:09:19.480 renting those boxes, you don't own them. That's a stupid 0:09:19.480 --> 0:09:21.000 way of having a debt on your credit report to 0:09:21.080 --> 0:09:24.040 mess your credit up. Right, you can just return the boxes, 0:09:24.080 --> 0:09:24.960 play the final bill. 0:09:25.080 --> 0:09:26.320 Right, Yeah, for sure? 0:09:26.360 --> 0:09:28.120 So all right, So what the support serving? 0:09:28.400 --> 0:09:28.600 Yeah? 0:09:29.840 --> 0:09:30.760 What about taxling? 0:09:31.200 --> 0:09:34.480 So taxling shows up on your credit but it was 0:09:34.559 --> 0:09:36.480 up to two years ago. They stopped reporting it, but 0:09:36.559 --> 0:09:38.960 it stays in the public record. So let's see applying 0:09:38.960 --> 0:09:41.440 for a mortgage, when they pull for your mortgage report, 0:09:41.480 --> 0:09:43.960 they put a Lexus nexus. Your taxis show up there, 0:09:44.160 --> 0:09:46.800 so it can affect you from getting the mortgage, but 0:09:46.840 --> 0:09:48.679 it's not in your credit report anymore, but it stays 0:09:48.679 --> 0:09:51.600 in public record. What's Lexus? Next? Is a company out 0:09:51.600 --> 0:09:55.920 in Atlanta that carries all public record data for everyone. Okay, okay, 0:09:56.040 --> 0:09:57.920 for all the court system, bankruptcies, everything. 0:09:58.160 --> 0:10:00.680 So what about credit card judgments? Of people have credit 0:10:00.720 --> 0:10:01.440 card judgments? 0:10:01.640 --> 0:10:04.560 Oh, man, listen, that's a good topic. And how that happens. 0:10:05.800 --> 0:10:08.480 You know, Let's say you have a credit card. I 0:10:08.520 --> 0:10:10.120 go back to Chase because I did with them every day. 0:10:10.160 --> 0:10:10.280 Right. 0:10:10.600 --> 0:10:13.000 Let's say you have to Chase credit card for five years, 0:10:13.320 --> 0:10:15.920 three years, you paid it. After that you went into 0:10:15.920 --> 0:10:18.000 a harship. We can't paid no more and it went 0:10:18.040 --> 0:10:21.640 to collections and you didn't even pay it then, right 0:10:21.679 --> 0:10:23.960 before the statue limitation comes in, and every debt has 0:10:23.960 --> 0:10:27.240 a statue mutation, every state has a statue limitation. Right 0:10:27.280 --> 0:10:30.080 before the statute limitation ends, it goes to an attorney. 0:10:30.200 --> 0:10:32.760 They pick it up and o'bertaining a defaul judgment against 0:10:32.800 --> 0:10:34.560 you when you're wle for ten years. 0:10:34.480 --> 0:10:37.000 So ten years, ten years, but it can be it 0:10:37.000 --> 0:10:38.920 can be wiped off all right, even if you so 0:10:39.000 --> 0:10:40.920 if you have the ten year judgment, it can still 0:10:40.960 --> 0:10:43.000 be like wiped off before that ten years. 0:10:43.000 --> 0:10:45.800 Absolutely if it's resolved correct. If you don't resolve it, 0:10:45.800 --> 0:10:46.760 then it can reinue again. 0:10:46.960 --> 0:10:47.800 How do you resolve it? 0:10:48.080 --> 0:10:49.839 So you got to make an agreement with the judge, 0:10:49.880 --> 0:10:52.440 but not with the judgement attorney assume you they could 0:10:52.440 --> 0:10:54.000 either go back into the quarter and resolve it or 0:10:54.000 --> 0:10:55.880 resolve it over the phone. Make an agreements that I 0:10:55.960 --> 0:10:58.600 listen to. That's five thousand, you know, I can give 0:10:58.600 --> 0:11:00.640 you two thousand call it a day, all right, So 0:11:00.960 --> 0:11:03.600 death has to be resolved to resolved that that made 0:11:03.640 --> 0:11:06.120 me think about something because we let me keep it 0:11:06.320 --> 0:11:06.680 on the show. 0:11:06.760 --> 0:11:06.920 Right. 0:11:07.200 --> 0:11:10.040 So usually in our community, what happens is that you 0:11:10.160 --> 0:11:12.120 fall on the hard times, you don't pay your bills. 0:11:12.360 --> 0:11:14.720 They call you, and you don't answer the phone call. 0:11:15.080 --> 0:11:15.959 You try to ignore that. 0:11:17.679 --> 0:11:18.960 But that's what that's that's what we're gonna do. 0:11:19.240 --> 0:11:21.000 That's what that's how t do a judgment. 0:11:21.840 --> 0:11:23.559 So start of it, all right, what's your advice for 0:11:23.640 --> 0:11:26.360 people that are doing that? Like I always tell people, 0:11:26.400 --> 0:11:29.640 you can't avoid problems. You have to face it right, 0:11:29.720 --> 0:11:31.800 So and then especially credit card companies, they'll work with 0:11:31.840 --> 0:11:35.440 you if you but people still mentally, I guess it's 0:11:35.520 --> 0:11:38.720 just nobody really wants to be embarrassed or they don't 0:11:38.720 --> 0:11:40.320 want to even kind of go through that if they 0:11:40.360 --> 0:11:41.600 know that they don't have the money to pay it. 0:11:41.640 --> 0:11:44.719 So you have, all right, you got yourself in a 0:11:44.760 --> 0:11:46.960 bad situation. You can't pay your bill, you're laid on 0:11:47.000 --> 0:11:49.240 your bills? What what do you do? Like, what's the 0:11:49.240 --> 0:11:50.079 best is the thing? 0:11:50.920 --> 0:11:53.680 That's funny we're talking about this A lot of people 0:11:53.720 --> 0:11:55.600 don't want to resolve to debt because they've been totally 0:11:55.600 --> 0:11:57.080 you don't have to pay it that back. It's going 0:11:57.120 --> 0:11:59.520 to disappear a lot of people. That's what a lot 0:11:59.520 --> 0:12:01.079 of people say. You know, oh, my friends, I don't 0:12:01.080 --> 0:12:02.840 want to pay it back. Is it true? Yes, you 0:12:02.920 --> 0:12:06.800 have to, right, but you have to answer the phone 0:12:06.840 --> 0:12:08.960 man like you can't. They'll work with you. They wanted 0:12:09.000 --> 0:12:09.440 to work at you. 0:12:09.559 --> 0:12:12.440 This is I'm just the willing to work with your 0:12:12.440 --> 0:12:14.199 part is one hundred percent valid. 0:12:14.200 --> 0:12:16.920 I have friends, and I mean personally, I've done it myself, 0:12:16.960 --> 0:12:19.400 like I've had I've seen my interest rate go up 0:12:19.400 --> 0:12:21.719 when I was in college to a point i was like, wait, oh, 0:12:21.760 --> 0:12:22.600 thirty thousand dollars. 0:12:22.640 --> 0:12:25.240 I'm twenty one, right, and I'm like, I don't know 0:12:25.240 --> 0:12:25.640 what to do. 0:12:25.720 --> 0:12:27.960 So I'm like I literally was listening to how I 0:12:27.960 --> 0:12:29.520 need to have and I promise you, and I heard 0:12:30.280 --> 0:12:32.800 Andree was talking about de consolidation and I called this 0:12:32.880 --> 0:12:34.360 company and I was like, all. 0:12:34.360 --> 0:12:35.439 Right, well we'll do it. 0:12:35.559 --> 0:12:37.680 And I did it, and like rather than paying at 0:12:37.720 --> 0:12:41.040 thirty right, they're the bankers are like, hey, can. 0:12:40.920 --> 0:12:42.240 We get some money? Right? 0:12:42.280 --> 0:12:44.080 So I'm like, all right, we agreed to an amount 0:12:44.120 --> 0:12:45.360 and I'm like, all right, I'll pay that off. 0:12:45.880 --> 0:12:49.240 There's a difference between that consolidation debt settlement. Yeah, I 0:12:49.280 --> 0:12:51.720 am not into that consolidated. I don't think anyone should 0:12:51.760 --> 0:12:54.080 do it. And I'll tell you why. Once the debts 0:12:54.160 --> 0:12:57.120 charged off, you have to pay something, but not the 0:12:57.160 --> 0:13:00.920 full thing. The consumers don't know that the debt consolidating 0:13:00.920 --> 0:13:03.120 where they make you paid the whole debt over three years. 0:13:03.520 --> 0:13:05.679 You kind of just paid it debt twice. Yeah, Well, 0:13:05.800 --> 0:13:08.120 because it went insurance paid it or wherever the bank 0:13:08.160 --> 0:13:09.959 resolved it, and that you paid the whole thing back 0:13:09.960 --> 0:13:14.200 again to the to the banks. It's once the deb's 0:13:14.240 --> 0:13:17.120 charged off, it's better to settle to them. Move on. 0:13:17.679 --> 0:13:19.760 You're five grand, we get that down to eighteen hundred. 0:13:20.160 --> 0:13:22.520 I would rather pay that and move on because your 0:13:22.520 --> 0:13:24.679 credit is still shot and you're not going to get 0:13:24.720 --> 0:13:28.320 the card back. Right, So I haven't paid twice. 0:13:28.080 --> 0:13:30.520 Right, Yeah, I've seen people do it, like I've seen 0:13:30.720 --> 0:13:33.640 like like you just said, like, hey, I owe twenty listen, 0:13:33.679 --> 0:13:35.720 I have ten, right, and the bank is like, you 0:13:35.720 --> 0:13:37.920 know what, I'll take that ten rather than have nothing 0:13:37.960 --> 0:13:39.040 from you for the next five years. 0:13:39.080 --> 0:13:42.920 So here's a trick behind a shot. Was talking about 0:13:43.520 --> 0:13:47.120 collection agencies and attorneys do skip traits. Well, the skip 0:13:47.160 --> 0:13:49.440 trace is where they pull your credit and they see 0:13:49.480 --> 0:13:52.120 that if you're paying like, what's it called skip trace, 0:13:52.240 --> 0:13:55.319 skip trace, skip t R a CE so skip trait 0:13:55.960 --> 0:13:59.040 skip trace works like this. They want to find you 0:13:59.080 --> 0:14:00.959 when you see where you are to serve your judgment. 0:14:01.000 --> 0:14:02.840 They pull your credit, they see you have this address, 0:14:02.840 --> 0:14:05.280 that address, that address. That's how the marshals end up 0:14:05.280 --> 0:14:07.440 coming to your house and dropping a note off, right, 0:14:07.600 --> 0:14:09.760 so they see if you're paying any debts back. So 0:14:09.840 --> 0:14:14.080 now let's say you're completely shot, your score five hundred. 0:14:14.080 --> 0:14:15.800 You have every single debt out there. When they do 0:14:15.840 --> 0:14:18.880 that skip phase, they know you're completely bro or you 0:14:19.080 --> 0:14:21.440 seem to be bro. You have a better chance to 0:14:21.440 --> 0:14:24.000 get in a lower number in that settlement because they'll 0:14:24.000 --> 0:14:26.680 take anything to move on and resolve it and keep 0:14:26.720 --> 0:14:29.320 it going. Right, if you apply for more this year, 0:14:29.360 --> 0:14:32.120 increy on there from a home mortgage company, or you're 0:14:32.120 --> 0:14:34.280 trying to buy something, you have money, everybody pops up. 0:14:34.280 --> 0:14:36.640 They want to settle, but they'll sell at a high number. 0:14:37.040 --> 0:14:40.440 And collection agencies work on commission end of the month. 0:14:40.440 --> 0:14:41.320 You get the best number. 0:14:41.480 --> 0:14:45.920 Beginning the month, you don't that so end of the month, Okay, 0:14:45.920 --> 0:14:48.200 I don't want people to let that go over your head. 0:14:48.520 --> 0:14:48.920 Explain that. 0:14:49.600 --> 0:14:54.280 Oh yeah, collection agency is working commission it's a fifty job. 0:14:54.640 --> 0:14:56.640 But your job is to you have to hit certain numbers. 0:14:56.680 --> 0:14:58.440 At the end of the month, you have to hit 0:14:58.520 --> 0:15:00.240 let's say your budget is thirty thousand. After to that 0:15:00.280 --> 0:15:02.440 you get commissioned. So that's why at the beginning of 0:15:02.480 --> 0:15:04.120 the month, let's we had a death for five thousand, 0:15:04.320 --> 0:15:06.000 they'll say, oh, we can only settle for forty five 0:15:06.040 --> 0:15:08.760 hundred four thousand. Come after the last five days of 0:15:08.840 --> 0:15:12.960 the month, that same depth for eighteen hundred dollars. But 0:15:13.600 --> 0:15:15.960 you can't give off your credit report because the loss 0:15:16.040 --> 0:15:19.040 states whether you pay or don't pay something, it stays 0:15:19.080 --> 0:15:21.480 on your credit pord for seven years. That's where my 0:15:21.600 --> 0:15:24.960 company comes in. I make your seven years ninety days, 0:15:26.360 --> 0:15:28.400 so I'm able to make your credit jump right back 0:15:28.400 --> 0:15:31.880 to seven fifty eight hundred squeakily. Nothing ever comes back 0:15:31.880 --> 0:15:33.200 on your credit report. 0:15:33.840 --> 0:15:36.320 No credit repair. 0:15:36.760 --> 0:15:40.160 Oh yes, I'll talk about that. It's allowed. 0:15:41.440 --> 0:15:43.280 Were off camp, you said that there's no such thing. 0:15:43.280 --> 0:15:46.480 It's the credit credit for it doesn't exist. Right, it's 0:15:46.480 --> 0:15:49.160 a scam. Right, that's why every single company. Can I 0:15:49.240 --> 0:15:51.240 call the companies out or you don't care? No, I 0:15:51.280 --> 0:15:55.320 mean that's all your your mom and pop company, Lexington law, 0:15:55.400 --> 0:15:58.640 credit payer, dot com credits saying I want to spend 0:15:58.680 --> 0:16:00.320 this one else the name by the want too, and 0:16:01.680 --> 0:16:05.920 they all do the same thing, send dispute letters with 0:16:06.000 --> 0:16:08.240 no letterhead. So yeah, to think about that. If I'm 0:16:08.240 --> 0:16:09.880 paying you ninety nine dollars, you said I'm gonna fix 0:16:09.880 --> 0:16:12.800 your credit, why is only the instructions on letterhead but 0:16:12.840 --> 0:16:14.480 not the level you sent to the credit beer on 0:16:14.520 --> 0:16:17.440 letterhead looks like I'm sending the letter one two. If 0:16:17.480 --> 0:16:20.400 you ever read those dispute letters, it's like your ten 0:16:20.480 --> 0:16:21.320 year old kid wrote it. 0:16:22.840 --> 0:16:23.200 Right. 0:16:23.240 --> 0:16:27.920 So, for example, let's say Verizon. You have a Verizon bill, 0:16:28.120 --> 0:16:30.640 you have Verizon home service, cable internet, whatever it is 0:16:30.640 --> 0:16:32.320 that you have a Verizon right for over a year, 0:16:33.040 --> 0:16:34.880 all of a sudden you moved out, You didn't pay 0:16:34.920 --> 0:16:37.080 the bill because you didn't return the box on the 0:16:37.080 --> 0:16:39.920 final bills, and you have this on your credit report. 0:16:40.000 --> 0:16:42.160 Verizon has a collection for you. They're gonna write a 0:16:42.240 --> 0:16:45.640 letter please validate this debt. I never had this debt? Well, 0:16:45.640 --> 0:16:47.640 what do you have for the last twelve months? Because 0:16:47.680 --> 0:16:50.880 everything has a pay per trail behind it, right, So 0:16:51.000 --> 0:16:52.480 that's what a letter of it works. Not a letter 0:16:52.520 --> 0:16:54.720 goes to the credit viewers. The credit viewer sends it 0:16:54.760 --> 0:16:57.720 to the Verizon. Verison sends back your whole statement in 0:16:57.760 --> 0:17:00.560 the digital file, your checks that you made a slater. 0:17:00.880 --> 0:17:03.440 They even keep phone communication if you spoke to them. 0:17:03.640 --> 0:17:05.680 You spoke to us on this day, and that's all. 0:17:07.240 --> 0:17:09.480 This episode is brought to you by P and C Bank. 0:17:09.880 --> 0:17:12.639 A lot of people think podcasts about work are boring, 0:17:12.840 --> 0:17:16.720 and sure they definitely can be, But understanding a professionals 0:17:16.760 --> 0:17:20.040 routine shows us how they achieve their success little by little, 0:17:20.400 --> 0:17:24.040 day after day. It's like banking with P and C Bank. 0:17:24.520 --> 0:17:27.320 It might seem boring to save, plan and make calculated 0:17:27.359 --> 0:17:30.440