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Speaker 2: National Association Member FDIC. I'm thinking in my mind, right,
Speaker 2: we got a lot of people and it's like, as
Speaker 2: soon as you get to college, you know in the
Speaker 2: areensate they sent you those right before you went off
Speaker 2: in college, they giving you credit cards right off the rip.
Speaker 2: Is this something that young entrepreneurs could actually take advantage of?
Speaker 1: No, I would say, as soon as you're eighteen, if
Speaker 1: to let you know, I'm trying to change the way
Speaker 1: that people think of credit and start applying for credit.
Speaker 1: So if parents start adding their kids at sixteen, when
Speaker 1: they're eighteen, they already have a seven fifty eight hundred.
Speaker 3: Yeah, talk about that. You know, I saw that on Instagram.
Speaker 3: You're just like sixteen. Yeah, can you explain that?
Speaker 1: Yep? So, because it kind of goes in hand with
Speaker 1: your question. So it's like, if you have kids that
Speaker 1: are that are under eighteen and at least sixteen, you
Speaker 1: can add them to your credit card, just like how
Speaker 1: I think we say your grandmother, right, mom, your mom,
Speaker 1: Your mom added you to your card, you got all
Speaker 1: that history. But if she would have added you at sixteen,
Speaker 1: when you turned eighteen, now you have at least two
Speaker 1: years of an active credit report. Because this is the thing.
Speaker 1: Your credit report doesn't exist until something happens on there
Speaker 1: your credit report. You're eight years old, you don't have
Speaker 1: a credit report, you know what I mean. So if
Speaker 1: you're sixteen and your parents add your mom and dad
Speaker 1: each add you to a credit card, that should be
Speaker 1: the birthday gift. Hey, let me add you to a
Speaker 1: credit card, give it to you, start learning how to
Speaker 1: use it, you know what I mean. Now, when you
Speaker 1: become eighteen, now you can get your own American Express,
Speaker 1: your own thing. Now you don't need these and what
Speaker 1: else don't you need trade lines because what a lot
Speaker 1: of people the reason once again, I'm going to talk
Speaker 1: about tradelines a lot. You know what I mean, because
Speaker 1: people use trade lines because they want the history and
Speaker 1: the limits. So start at a younger age. So now
Speaker 1: when you're eighteen, you already know not only those trade lines.
Speaker 1: I already got my own credit cards. And now you're
Speaker 1: just starting it to where when you're in college. Now
Speaker 1: your parents are going to open up an LLC for you,
Speaker 1: open up this do whatever, and now you can do
Speaker 1: use your own credit. You don't have to have a
Speaker 1: code signer for a car, for an apartment, for anything.
Speaker 1: And now we're changing the trajectory of when people apply,
Speaker 1: but how they apply and more importantly, why they apply.
Speaker 2: Their parents be responsible, that's what I want to be
Speaker 2: responsible with your credit because, like you said, this could
Speaker 2: definitely help your children.
Speaker 3: Yep. So let me ask you this, all right, So
Speaker 3: business credit, let's get into this. What are the steps?
Speaker 3: I know I wrote down some notes, so you you
Speaker 3: have to have a legit business obviously tax ID, so
Speaker 3: explain it. Can you explain it different between business credit
Speaker 3: personal credit? And then I guess there's a hybrid situation,
Speaker 3: like you said, amx is technically is not full business
Speaker 3: credit because they still use your personal guarantee. So what
Speaker 3: is the difference between like the MX situation where you
Speaker 3: still got to have a personal guarantee and just full
Speaker 3: fledged business credit.
Speaker 1: Yep, So you know your personal credit, you use your
Speaker 1: social right soci security number. When you start a business,
Speaker 1: you get you know, whether it's an LLC, a C,
Speaker 1: corp escort, whatever the case is. You start a business
Speaker 1: and you get your tax ID, now you're actually a business.
Speaker 1: And I want people to understand that because a lot
Speaker 1: of people think when they have a sober partnership but
Speaker 1: they have a business, they really don't because you're still
Speaker 1: using your social So you have to get a tax id.
Speaker 1: And once you start building business credit, depending on what
Speaker 1: you're going for, you're gonna have to use your personal credit. Right.
Speaker 1: So there's a difference between co signing and personal guarantee,
Speaker 1: which you guys spoke about before. You know, if you're
Speaker 1: personally guaranteeing something, you're using that to kind of like
Speaker 1: get approved for it, right, So with a personal guarantee
Speaker 1: and an American Express credit card, for instance, unless you're
Speaker 1: like a major corporation like Facebook, Walmart, whatever the case is,
Speaker 1: You're not getting American Express without using your social even
Speaker 1: though you have your tax ID too. Now you're using
Speaker 1: your personal credit as leverage to ultimately get that American
Speaker 1: Express to Chase and everything else. So the reason why
Speaker 1: I say it's not true business credit, even though it
Speaker 1: does report to Experience business, is that you still got
Speaker 1: to use your personal credit for it, which is not bad.
Speaker 1: But in the event that you default, like you don't
Speaker 1: pay it and it gets charged off, now it gets
Speaker 1: reported to your personal credit. If the business card, it
Speaker 1: goes back to Yeah. So if you have an American
Speaker 1: Express and you don't pay it first one amount of
Speaker 1: time and it gets charged off, now that business credit
Speaker 1: card is not going to show up as a late payment.
Speaker 1: It's gonna go straight to charge off status. And now
Speaker 1: you're going to go from having a seven hundred twenty
Speaker 1: credit score to now having a twenty thirty thousand dollars
Speaker 1: charge off American Express credit card from the business. And
Speaker 1: to get that off, you gotta you know, you gotta
Speaker 1: pay it, you know what I mean. You don't want
Speaker 1: to evade that debt because now it's tied to your business.
Speaker 1: You know what I mean, to get a true business
Speaker 1: credit card or anything with business credit is by not
Speaker 1: having to use your social and just by using your
Speaker 1: tax id. And maybe you're done in Bradstreet, which I know,
Speaker 1: we're gon we're gonna cover you know what I mean.
Speaker 1: So that's true business credit is not using your your
Speaker 1: Social Security number, your date of birth, your name, anything,
Speaker 1: and all you're using is got credit, your tax id,
Speaker 1: your EI in I mean, your your address, business you know,
Speaker 1: business email, business phone number, and that's it, you know
Speaker 1: what I mean. That's the true business credit. But when
Speaker 1: American Express would chase you know, those credit cards, you're
Speaker 1: still gonna have to use it even though it's still
Speaker 1: gonna to your business credit.
Speaker 3: Gotcha?
Speaker 1: Gotcha? So you spoke about DMB.
Speaker 2: Can you explain what it is, why it's so important
Speaker 2: and why people especially in business to know their number?
Speaker 3: Yep.
Speaker 1: So Done in Bradstreet is another like I guess you
Speaker 1: can say social So notice for personal credit, all you
Speaker 1: have is one for business credit, there's like multiple things
Speaker 1: you got to do to establish business credit. It's not easy.
Speaker 1: So Done in Bradstreet is kind of like the biggest
Speaker 1: business credit reporting agency out there. And if you try
Speaker 1: to get like a car, if you're trying to get
Speaker 1: like net thirty accounts, if you're trying to get things
Speaker 1: like American Express, they all check done in Bradstreet and
Speaker 1: they give you what's called the Dune's number. So if
Speaker 1: you want to just create a Dune's number, you just
Speaker 1: go to dun and Bradstree's website. It's free, doesn't cost
Speaker 1: you anything. You shouldn't be paying anybody to get you
Speaker 1: a done in Bradstreet number. It's free. So now what
Speaker 1: it is is people will report what you're doing to
Speaker 1: Done in Bradstreet because they have to house that information somewhere.
Speaker 1: So that way, if you want to get a car,
Speaker 1: if you want to get something in the future and
Speaker 1: eventually not use a personal guarantee, that's what they're gonna check.
Speaker 1: You're done in Brasstreet credit report, you know what I mean.
Speaker 1: So they're logging the data, right, They're logging the data.
Speaker 1: So it's like, now your American Express is not being
Speaker 1: reported to done in Brasstreet though it is being reported
Speaker 1: to Experience Business. So it's you know, there's Equifax Business,
Speaker 1: Experience Business and done in Bradstreet, just like how we
Speaker 1: do three. There's experience, TransUnion, and Equifax, So there's three
Speaker 1: with this one, and there's even more, but those are
Speaker 1: the main three, you know what I mean. So now
Speaker 1: with done in Brass Street, now you're also given a
Speaker 1: number that Now when you apply for something on a
Speaker 1: business credit report, they're like, what she's done's number? And
Speaker 1: a lot of people don't know that, like what are
Speaker 1: you even talking about? So now they're going to Dune
Speaker 1: and brass use number. They got to buy one, and
Speaker 1: then they try to sell them this crazy software and
Speaker 1: it's crazy monitoring and they don't need that, you know
Speaker 1: what I mean. So eventually, once you start building business credit,
Speaker 1: all you got to apply for is with your your
Speaker 1: business name, your tax id, and you're done in Brasstreet
Speaker 1: and it doesn't get reported anywhere I forbid your default
Speaker 1: on it. You're protecting your personal credit.
Speaker 3: So if I want to get a business credit card
Speaker 3: without personally guarantee, where would I go to for that?
Speaker 1: So it depends on what type of business credit card
Speaker 1: you're trying to get, because a lot of especially if
Speaker 1: you're in business under two years, you're not gonna get
Speaker 1: it because you haven't built history. So personal guarantee right there,
Speaker 1: might be some out you know, there's like you know,
Speaker 1: once you start building revenue and you start you can
Speaker 1: show tax returns and you can show why these like
Speaker 1: there's some local credit unieds that you can get a
Speaker 1: business credit card without it. And then there's also like
Speaker 1: some other business like like a gas card. Right, So
Speaker 1: this is one of the things that we tell people
Speaker 1: is a gas card actually has a lot of value
Speaker 1: in it because you can get an American I mean
Speaker 1: a Visa or a MasterCard business credit card that you
Speaker 1: don't have to put your social on it. Yeah, you
Speaker 1: know what I mean. And those Visa MasterCard business credit
Speaker 1: cards are powerful because yeah, it's tied to a gas station,
Speaker 1: but it's a Visa mass card. So now what you're
Speaker 1: doing is you're building your Visa mas car business credit
Speaker 1: so that way you could eventually get a credit card
Speaker 1: without it.
Speaker 2: A wise woman spots to us about gas cards. Yeahtham
Speaker 2: is business.
Speaker 1: Gas cards are the hidden secret of business credit. My
Speaker 1: graduates from my school being forced back drop drop drop backdrop.
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