Everything You Need to Know About Credit

[Music] alright guys welcome back to the Ernie elesia podcast episode 1818 thing really I'm still on 15 actually time flies time flies so we are fresh off of our la trip whoosh I'll tell ya we talked about that later on we had a good time out there shout out to California we got a lot of love out there it was overwhelming to see people come out like I said like we had no we didn't know anyone in LA and we left what a family of people that dinner with us so that's dope we got a very special episode today one of the biggest requests that we have been getting for a very long time is credit I'm a financial advisor and people ask me about credit over time nothing that I really specialize in so we had to cover credit but you can't have a financial podcast and not cover credit right effexor soul yes it's mandatory so you know moving vehicle for any financials you do these days man yeah so when we you know we were talking about credit you know we had to get a specialist in so that's what we did we got Andy suco who is a specialist guru whatever you want to call it in the credit industries work with a lot of celebrities but on the radio and more importantly he works with regular everyday people and helps them improve their credit so first and foremost thank you thank you for joining us welcome this for having me appreciate it I love it fuel energy when you're sure so so yes so we are gonna cover a broad range of different topics today we're gonna answer a lot of questions that we got on Instagram and hopefully you know we're gonna provide some very very valuable information when it comes to credit because as our merch merchandise yeah you know every cream everything 94 it was cream it was a lose cash fools everything around me but we had 2019 right now so now it's credit rules everything around so that's that's suggested age that we in right now so before we start we're gonna tell some personal stories if you listen to the park you know we like to actually get real personal about you know stuff and it's not just like telling things third story third person we actually let you in on our personal life so me and Troy both have credit story so Troy you wanna start off for the credits - yeah man and I think we well is well documented and the process of me getting his home when we were talking about the appraisal and that was the first step but before we could even get to the bracelet process I had to get approved for a loan and a scary part it was scary and I was working on what a friend of mine and you know I I was pretty familiar with the three bureaus you know Experian TransUnion and Equifax and I looked at my score you know I had used Credit Karma and Imus I started with them the famous credit card you know was for free and then I actually painting yeah nothing's free in this country fact oh so I paid the services because you know I'm trying to get a loan I need to be serious about this I paid TransUnion abate all three barrels and um I looked all right it you know I had like a 695 average not great but caught a spot qualifies is good and in order to get the loan I had to have a 652 scores so I'm like great I tell my boy run the credit it's good and he was worried about the inquiries I'm like it's good I checked them I paid were good he calls me and he says we got a problem and I'm like what's the problem he's like it scores a 525 I don't like first reaction was like knives is identity day this has to be a good not it's not me like he's like I look I'm give me your social again we're gonna run it again um but I you know the inquiries just don't add up I'm like no run it again that that's not me I'm looking at my scores I texted him he's like I'm not sure what's happening so I looked I looked at the report and I saw some things that were there one being the United States Department of Education they had a loan on there that you know I was like this doesn't make sense you know I had Sally main I was Nabi ain't that combined and it sounds either they tried but they didn't close it gotcha so it looked like I had some noodles yeah I had to loan Bridgette DTI exactly my dad to ratio that ratio was hot so I got that knocked off and then I started looking other than started educating myself and one of the things I was looking at was like wait they have credit cards but that's not mine I'm just a authorized user for that card so that debt was added on to it and then I looked and I was like you know what why are we seeing both two different scores and then it hit us my mortgage broker and myself we were like oh they're using your FICO score and I was like huh like what we have three bureaus and they're using a different score is that using a FICO score so then I was like all right well what's that I had to educate myself again paid again so I became a member of my FICO calm and when I saw it was like I saw the 525 I'm like no this is really me this is really me and um it opened my eyes because I was like wait there's different type of FICO scores right there's cycle one to update which is it not it's romantic ten right now faint is ten so like it so Experian uses Vantage ten right so each Bureau uses something different and I was just like I this is crazy now like I'm just crazy so I keep going I'm kicking them like I have this is a time-sensitive right there's this housing deal has to get done within two months there's a lot of dominoes that will fall out if I don't get the loaned and you know my brother can't move then we can't have the house so I started digging deeper I see like my utilization rate which is how much money you're using from a credit card and at the time I had a best ball card wasn't uncrazy and thousand dollars but I had used a on your haven't bought like a new TV so like that's 80 percent of the card I'm like I wanna pay it off um so I did I paid it off but on top of it I was like I know we're in time sensitive so I said I'm gonna call Best Buy the customer service must be to the to their debt Department I'm like listen it's a credit report the credit report Prime and I'm not look when do you guys report to the bureau's like I was just bold like they're like when you report and they're like we usually don't do that and the lady was like open she's like you know what I understand circumstance I'll help you we report on the 21st sounds like bet I'm gonna have this paid by the 10th and I need you guys to report it by the 15 they're like we'll do it for you because we're gonna see in the circus there's I went to my next Carl's I had a major Scott only $5 but I use 400 or that first suit so my utilization rate like 90% like I am I pay that one down boom did it and they were like oh cool wooden tile so I'm like when do you report they're like the six of so I'm like alright well we got the fourth perfect they sent those in I got it in time right so like in a month in a month like maybe a month and a half I went from like a 525 it's like a 700 just because I hated myself on it and was relentless like I was on the phone every day with the credit department the credit bureaus I was on the phone with the Department of Ed I at one point I wish I recorded a conversation that the one of the customer service women would like thank you I was giving her information because like that's how well I had like studied it was like you know what pretty much like my family's like generational wealth is on the line if I don't get this this credit score and by the grace of God man we got it done so it was beautiful but like there were a lot of people's like hey you should pay for this service and I was like for what like no I don't have the time but usually they tell you it's like five to six months and we can change your school we can get it I'm like I got 30 days you know I mean interesting story so the story actually I don't mean to cut into a short story you know a lot about what you said is things people you can always maintenance on your credit as things you can do on your own oil and DTI debt utilization keep your debt 30 percent low debt high score high debt low score you know mm-hmm and we'll get into that more now yes so I mean it's crazy that she was able to raise your credit score 100 that doesn't really happen where the mom yeah it was crazy boy Tom it was if not you wouldn't have had a home right and like the thing is like my friends playing my friends got to watch his habit so like I mean it's well documented right so when we shot came up with the idea like oh you should do this house I was like great hi Chris was good no it was it quickly found out no it wasn't but and that it's important to like so that FICO score like I was able to get a car because my fact that the FICO score that they were use was like maybe 504 right so that was for car lending house able get a car I was able to get credit cards because they use FICO six right but if I wanted a home yeah I wasn't good and that's something I don't think people really know man yeah the whole bandage system how it works you see the things with each credit beers they create their own score off of the data is reported to them so not every bank reports the whole three beers that's why once it's gonna be higher than the other one but then for the real data for mortgages that's my FICO because it's giving you the overall picture in one snapshot right so it that's important so like if you're trying to get a home make sure you check your FICO score not and don't wait till last minute oh wait yeah yeah nobody I know beforehand so my story's a little less song anybody that all right so me and should have a good dynamic because choice like a real I he's like a model family like you know I'm a little more radical so my story's a little bit more radical and I'm gonna tell you this story and don't try this out parental discretion this was years ago right I was young and I needed money for an investment I need like thirty thousand dollars for an investment right and at the time I didn't have any money like that that's someone you say but I want to go into my seat right right so my okay wait I get thirty thousand dollars from right so I try to get a bank loan that didn't work mi everyone have anybody can borrow $30,000 from somebody but I gotta get thirty thousand so Tom I have really good credit still have good credit right really good credit so I got cash events so I got cash advance one Craig or like $2,000 so I'm like you know what run it up so I spent two days applying to every credit card that I can't go fast I got a I got proof from every credit card I applied for I got 12 credit cards in the course of a weekend and it was like two thousand five thousand seven thousand so by the end of three days I had $30,000 in cash advances what I didn't know what before I did that and a lot of people still don't know it's that so with the cash advance whoa let me back it up it was a they had they were they were all running specials that you can balance transfer balance transfer specialist with 0% interest for like 18 months 12 months 24 months right but a lot of times people don't realize that with the balance transfers you can actually take a cash advance and you don't pay any interest for eighteen months very dangerous because at the end of the eight months now all of those other months have now you gotta pay the interest for the back 18 months so you gotta be careful there's like 20% interest but long story short that it all figured out so I said okay look this is a $30,000 loan that I'm gonna get interest-free for 18 to 24 months if I can't flip that in two years shame on me so long story short I leveraged myself to the tilt and I did a very speculative in this I'm going to go into what it was but it was a highly speculative and the results of it I'll tell her in different podcasts but I say this to say the power of credit I was I wouldn't be able to raise $30,000 in a weekend true in my 20s if it wasn't for credit right so credit can be a very powerful tool if you use properly like I said I don't recommend anybody do what I did because I was extremely dangerous hope did that so you have to go why don't but just know that there are a lot of different tactics that you can use and you have to be careful but it can you know you can make you could make money off of it that's key is to make money with other people's money that's my favorite line that I think you've ever said called the podcast it was like powerful - very day alright so now we're gonna go into some we're gonna be gonna start we're gonna chop it up and we're gonna break it down so you talked about FICO score right can you just explain the FICO so fight goes fairize a credit company they don't wonder creates the hosts score from all three viewers for you they use the latest Vantage will be Vantage 10 Vantage a that we're using that when Vantage 10 do use the latest Vantage so what is it what is that cuz people might not know what so is the way this is course created did that has put into the score so they don't pick every single arm likeness say mmm your mic mix first card certain card they pick up and they create this score so department that's why I speak about department store hard they don't help you credit that much so stay away from them staying to the visa to master cards and so for those little ones I create the scores for you and then your payment history how much new credit you have on the utilization that's all that's calculated into it okay okay so alright so as far as like there's different factors that determine your credit score right right correct what is some of the key factors that people should be aware of uh one of the major facts and I see this on everyone's credit report is utilization obviously you were talking about oh you know you need to keep utilization under 30 percent once you start hitting thirty one thirty two percent of that utilization your score drops significantly and it takes two months to billing cycles for it to go up unless you call the bank like you didn't ask them just to do a courtesy for you but a lot of people don't know how to do that right or they don't they don't know they could do that so one of them is uh keep the utilization very low thirty percent or below um let's see you have five cards and excuse me and you instead of use putting all the charges on one card split up across three cards to keep it under 30 percent your score will stay high second thing is increase six increase a year if you do more than that just score drops each increase two point five points alright and thanks only give you what they see other banks give you so if your platform in your scenario if you do that now there would have been hardly at all those our cards right because banks are title and give it our credit um so banks won't give you with this the other banks are giving you so let's say your PI for Citibank or a chase today you got denied there's an increase if they're not a bank don't see it a card open up they're not an extended credit to you right so new credit all right so 30 so 30 percent so if you have $10,000 and credit available only used week they'll correct that's correct that's pretty much in a nutshell yeah not with one last thing also like if you're trying to build your score and you're in the 650 your lingering around a 650 range you shouldn't pay off your card in full every month because the bank needs to make the bank needs to make a little bit in interest off of you to report okay on your credit report correct it's only until you like a 750 or higher score you can pay a card off on full because your score is already built well but if you need 615 you trying to raise it don't pay the carnival king just explain that could I for the first time I'm hearing that in detail like so you don't pay off the credit card on full every month like every other month you could pay it off in full what why not every well because the bank wouldn't report okay on the credit report on the slot this is okay you'll say no David okay no data is like no credit okay so you had a like trigger system that'll make a little bit of interest offer you could remember the banks in a business making and that's Merri charges interest rates so they want to see that you're a valued customer over a period of time exactly right so I have a thousand dollars and I max out a thousand and I pay a thousand that's not really showing anything exactly and that's not helping them to they're not making money right so there's no incentive to report okay on the credit board yellow report every zero balance but you don't have that that okay that green mark on your cardboard is it says no data okay and only when you see that is actually from the credit report from the viewers you wouldn't see it on like a mortgage report or in your online report is when you pull the actual report from the viewers is when you see that all right all right so now all right so you got some framework and then you got some interesting stories from me and Troy but now we're going to be going dive deep into the setup to the world of credit and um yeah we going hopefully drop some gems that can save you guys a lot of time and money to kinds of pass get ready all right so now we're gonna get into the part that most people aren't aware of on their credit report that are actually having but you know when you make a late payment or you miss a payment or you miss a few there's something that's called a derogatory that's correct so yeah you could you want to explain the impact that that has and some examples of it well the derogatory session everyone has their own a credit before right so what do you make a late payment and by the way the the way they report late payments these days have changed because back then right after 30 days the next day you were late now to give you a 30 day grace period what if the payment is not made before 5:00 p.m. the 29th of the next month then you get report the first 30 days that's a derogatory right um collections charge off let's say you had a credit card for five six years you know you were paying for three four years you ran into a hardship you missed you can keep up with the payments anymore you miss six months of payments it gets charged off that's what derogatory public records lawsuits judgments do still the loans all in there as well yes absolutely cuz they won here's the thing about student no I mean keep deferring to student loans right that's actually you shouldn't be doing that you should please try to make some sort of payment plan with them because now I want it affects your credit yes DTI because let's either got six thousand you deferred it for five years now your loan is ten thousand right now you're upside down with alone one to Ulay payments also they'll report on the the cardboard is a derogatory you make if you miss the late payments so I don't suggest anyone try to put the payment in deferment for too long but if you have to make sure you don't have a gap where it comes out of the firm in are you supposed to make a payment and go back into the Fermin mmm eat the boy dad oh yeah it's tough because I mean we covered it pretty extensively like we have millions of Americans that instantly turned out the industry and it's like you know the first thing is like the firmament but it only lasts 6 to 12 months now right sorry right and that can affect you long-term right when it's time for you to now get the home like student loan payment is affected you try to get the car student right they're gonna write that on your dad the rocket so because they calculate the monthly payment into your income right so let's say you know you only make I don't know $2,000 a month or bi-weekly whatever here and on your monthly payments all your expense including rent food whatever not not food sorry rent bills credit card so it's 1,500 now you add your student loans in there and now you only have $20 left how you gonna get it's a debt that you really don't want to carry with you but we have to or I want to try to please make some kind of payment towards it so what does the rocket or is around okay so some of the common derogatory items are late payment late payments credit cards even I did a video about when you move out of your apartment I'm gonna exit your apartment your verizon bill your cond addison bill all that goes on your credit report there's a way to shut everything off before you walk out that apartment it doesn't travel sorry so what's the way that you so basically make a checklist of everything that you had when you were living in our apartment cable phone water or whatever a week before you move out you supposed to call this company let them know you're leaving to disconnect the service on this date and send you the bill right a lot people just walk out on either very verizon bill capable you're supposed to return those boxes if you don't you get charged you renting those box you don't own them that's a stupid way of having a debt on the cardboard domestic write it up right or just return the boxes beta final bill right yeah sure all right so what class support server yeah what about tax liens so tax lien shows up on your credit but it was up to two years ago to stop reporting it but it stays in the public so let's see apply for a mortgage when they pull for your mortgage report they pull LexisNexis your tax and show up there so you can effect you from getting the arm the mortgage but it's not on your credit report anymore but it stays in public records what's less expenses next this next is the company I'm gonna Atlanta carries all public record data for everything okay okay for the court system bankruptcies everything so what about credit card judgments a lot of people have credit card judgments oh man listen that's a good topic and how that happens um you know let's say you have a credit card I go back to chase because I deal with them everyday right cool let's say you have a chase credit card for five years three years you paid it after you went our harsh so we're gonna pay no more and they went to collections and on you never pay it then right before the statue limitation comes to and every debt has a statute limitation every state has a statute of limitation right before a statue limitation and it goes to an attorney they pick it up on obtain a default judgment against you when you will for 10 years so 10 years 10 years but it can be it can be wiped off all right even if you so if you have the 10 year judgment it can still be like wiped off before that 10 years absolutely if it's resolved correct if you know if you don't resolve it then it can renew again how do you resolve it so you gotta make them agree move with the judge but now I'm done with the judge with attorney too soon you they give you go back at the court resolve it or resolve it over the phone make an agreement say listen to that's five thousand you know I can give you two thousand call it a day all right so the debt has to be resolved resolved that that made me think about something because we let me keep it on the show right so usually in our community what happens is that you falling on hard times you don't pay your bills they call you and you don't answer the phone call did you try to stick Dorothy yeah block the number so startling all right what's your advice for people that are doing that like I always tell people you can't avoid problems you have to face it right so and then especially credit card companies they'll work with you if you can absolutely people still mentally I guess it's just nobody really wants to be embarrassed or they don't want to even kind of go through that if they know that they don't have the money to pay so you have all right you got yourself in a bad situation you can't pay your bill you're late on your bills what what do you do what I hear something ah that's funny we talking about this a lot of people don't want to resolve it that because they've been told you have to pay it that back it's gonna disappear now people that's what a lot of people say you know oh my friend said I'm gonna pay it back is it true laughter yes you have to yeah right um but you have to answer the phone man like you can network if you didn't want to work YouTube this is no I'm just the world willing to work with you part is a hundred percent valid I have friends and I mean personally I've done it myself like I've had I've seen my interest rate go up when I was in college to a point I was like way out thirty thousand dollars I'm twenty-one right and I'm like I don't know what to do so I I'm like I literally was listening to half 97 I promise you and I heard angie was talking about debt consolidation yeah and I called this company and I was like well we'll do it and I did it and like rather than a paint it dirty right they they're the bank is looking like hey can we get some money right so I'm like I we agreed to an amount and on my are I'll pay that off there's a difference between debt consolidation debt settlement Here I am NOT a big into debt consolidate I don't think anyone should do it and I'll tell you why once the decks charged off you have to pay something but not the full thing but consumers don't know that right so they go to that consolidating where they make you pay the whole debt over three years you kind of just fade it that twice yeah well because it went insurance paid it or whatever the bank resolved it and that you pay the whole thing back again to the banks it's what that's charged off it's better to settle to them move on your five grand we get that out to eighteen hundred right I would rather pay that and move on because you credit still shot there and you're not gonna get the card back alright so I haven't paid twice right yeah I've seen people do it like I've seen like like you just said like hey 20 listen I have ten right and the BIC is like you know what I'll take that ten rather than have nothing from you for the next five years so here's a trick behind a horse shot was talking about um collection agencies and attorneys to skip tricks what a skip trace is really pull your credit and it's either if you're paying like what's the call skip trace skip trace skip2938 the credit ec you have this out that is that address that's how the marshals end up to come into your house and drop the nodos right so they see if you're paying any debts back so now let's say you're completely shot your scores 500 you have every single death out there when they do that skip face they know you're completely broke or you seem to be broken you have a better chance to get in a lower number in that settlement because they'll take anything but don't want to resolve it and keep it going right um if you find from worried this year in Korea on their from a home mortgage company or you're trying to buy something you have money everybody pops up they want to settle but they'll sell at a high number and collection agencies work on Commission and their a month you get the best number beginning the month you don't mmm so ended a mob okay I don't want people that figured I'll let that go over yes explain that oh yeah collection agencies working commission it's a 15 hour hour job but your job is to you have to hit certain numbers at end of the month you have to hit let's say budgets thirty thousand that you get Commission so that's why I need beginner in a month let's see had a depth of five thousand there so we can only settle for forty five hundred to four thousand come down to the last five days in a month that same debt for $89 but you can't get off your credit report because the law states yeah whether you pair don't pay something it stays on your credit board for seven years okay that's where my company comes in I make your seven years ninety days oh so I'm able to make your credit jump right back to 750 800 squeaky clean nothing ever comes back on your credit report though so credit repair oh yes we saw off cam you said it there's no such thing as the credit obviously isn't core deeper doesn't exist yeah right it's a scam right that's why every single company can I call a company for me yeah you look here no I mean I saw your mom-and-pop company Lexington law Curt appear calm credit st. I want to spend to someone else and maybe I don't want to okay they all do the same thing sent dispute letters with no letterhead so yeah think about that if I'm paying you $99 you said I'm a fixer credit why is only the instructions on letterhead but not the letter you sent to the credit bureau on that ahead looks like I'm selling the letter one too if you ever read those dispute letters it's like a ten-year-old kid wrote it right so for example let's say Verizon yet a verizon bill yep Verizon home service cable internet whatever it is that you have Verizon right for over a year all of a sudden you moved out you didn't pay the bill because you don't return the box on the final pills and you you have a Sony card report Verizon at the collection for you they're gonna write a letter please validate this debt I never had this debt well what do you have for the last four months because everything has a paper trail behind it mm-hmm right so that's what 11 Everett words not and let it goes to the creditors the credit viewer sends it to do Verizon Verizon sends back a whole statement in a digital file your checks that you made payments later maybe keep phone communication if you spoke to them you spoke to us on this at this day and that's all testify but I have it in my office when you speak to these companies all my clients voted I'm on this way right so anyway back to the whole car Deardon the lettuce thing doesn't work because everything has a paper trail one there's no such thing as fixing credit every consumer has a right to dispute something on a credit if they believe it was reported erroneously and that Eric inaccurately yes you're right so for my understanding it's like it correct me if I'm wrong they write a letter or you could everybody has the ability to write a letter to a company disputing something correct they don't respond to that dispute it has to come all right all right so that's kind of what they do because they know most people don't want to do it themselves all right so they do it for them correct and the reason and the other thing is that in the industry there's something called servicing a debt and owning a debt let me explain that for you I said again servicing a debt and owning a debt only that there's only four companies in the industry to buy steps ok portfolio Recovery Midland Funding MCM and Calgary portfolio those four companies buy debt and they give you 30 days to resolve it if you don't resolve it they get a default judgment against you so it's an attorney the attorney serves you you gotta show up in court blah blah blah the second thing is servicing the debt so let's say Verizon come at the price our GM acquisition is a collection agency they don't own the debt Verizon's sent the debt to our gym - for them to call you ten times a day a lot of the manpower to do that so now when we send these letters the question is you agency was never supposed to be there that's why the question you see would come off your credit that's all a letter does but the debt comes back around ninety days later from him to another agency so that that is never really leaving you so that everything has to be resolved so back to the word of credit repair yeah it doesn't exist anyway everyone has a right to contest something if it's not accurate on your credit report but nine out of ten times all these banks in this crate they're so squeaky clean with a date an hourly it's very minimum room for errors that's important you gotta educate yourself right rather than paying $99 you can just do it yourself reason for about two hours a day right I figured it out yeah it's valuable so like you saving your time and your money not supporting all right okay so now we're gonna go into our new topic our new section yeah a whole new segment that we were calling it ten for ten so we got ten questions hopefully give us ten inches and it's courtesy of Instagram pretty much our followers we've laid it out there that we're gonna have credit as an episode and we got a crazy response yeah there's so much to learn about this credit how it works like how credit is built how you get approved for a credit card like hope based on that yeah we're just touching like this yeah we took we took ten and hopefully we can get ten answers we going on yeah we're gonna jump right into it so um yeah let's do it all right so yes this is a new segment that we gonna do hopefully we do it every show yeah maybe not every show but depending on if it's the education show like it is right now where we're actually bringing somebody in everything shows educational show but if this is a show where we're bringing an expert in yeah we're gonna start a new segment called ten for ten my cousin as I always say it's not our podcast it's your podcast it's the public's podcast the platform is to educate so we're taking ten questions from our listeners and we're gonna answer those questions right and it's all on Instagram so we'll put a post up a few days before and we'll ask you know your questions and then you guys just comment in the comment section and then we'll pick ten questions and then we'll we'll do it so that's the expert yeah sure so we're gonna start out with the first question is from i underscore m underscore asia shout out to her she wants to know how do you establish business credit alright that's a good question and there's actually a big that's a big topic actually so everyone seems to think that all business credit that once you register a company name and you have a website and a bank account you have business credit actually don't have business credit you still PG and everything on the associate business credit runs separately from your social it's established on the tax ID after stand-alone myself has to sit by itself when UPG something that goes on your personal personal guarantee okay excuse me it's when you PG something if sits on your credit on your personal credit one of the facts your DTI because if it's like an American Express charge card you swipe in 30,000 a month mmm remember low debt high score that's affecting your your score and to it makes your credit score drop alright so business credit has to stand alone by its itself on a tax ID how do you establish it for there's a 10-step process one you have to be the tax ID the bank account you have to be registering your newspaper the account a newspaper on the two newspapers showing that you have your illegitimate legitimate business you can't have your home address as the business address because you need to be scores Experian Equifax and dun & bradstreet Experian Equifax has not recognized your home address as your business address and your cell phone as a business number that's why I tell people get a virtual space 199 like Regis but what about pure bucks no can appeal about anybody alive so alright I didn't know that so you had okay so you need a Receptus and a phone number we're taking quantum verify and send mails to okay so you can't give business credit without address you separate from your outside your home address and yeah I need office address that's correct that's why I say get a read your space one night now as a cheapest thing right because it needs to be verifiable by Experian new facts cut his tweet scores not a Brasserie exponential facts you need to be scores and all three boards is how you build business credit so why why strains union left out of it did you don't use it okay it's not heavy enough alright alright so okay so let's stay on that for a little bit so you alright you start a business you got your LLC you got Lucy you got your number Bank you can open your bank account where you see in the courthouse yeah do all that stuff now you are the first so now you have to get an address correct so now but now we're trying to build credit for the business right so you did you get up did you get a Google number yeah you get a number separate from your cell phone or get an address separate from your cell phone now can the address be another word like say can I can I use my sister's address just separate from the one yeah exactly okay so now that so now now how do you extend now you have that you need trade lines so there's come be a total block that works there's companies like quills um there's a ten out of companies out there or off I can't think of it right off the top of my head but here's how it works I have a whole list of my office you reach out to them and yes they give you ten they give you trade lines trade lines are like loans they'll give you like a thousand out of credit limit you have to use fifty dollars for the next six months of pay on top 50 or more yep it's built just like you're building personal credit but it's too dare vendors once so you need three of them three vendors if you want to get cards on like Best Buy Office Depot office max those guys if you want credit cards from the bank you need six vendors six vendors are six trade lines right um and you built from with that for six months from there you applied for your own credit cards now if you want loans out of the bank you have to have a P&L a profit or loss and you have to have a tax return in order for the bank to extend loan on to the business could have to see money coming into the company money going back out a P&L to see it you know you can pay the loans back okay so we got our next question from Baba Lewis III and yes can you establish credit for your children absolutely at seventeen or eighteen years old yeah how you do it is that you add them as an authorized user in one of your credit cards but with that come back to your story yeah it has to be a clean credit you can't have high balances you can't have derogatory score whatever you do it affect that person yeah I got lucky I'll be honest this is like a true story and I think we first noticed it when I'm Michelle told my credit and um I was 26 and he was like wait you have 23 years of creditors yeah and I'm like I don't know and then I realized that my parents that put me on their card that they've had since 1985 or something like that and I was like oh wow and they've been responsible so like yeah there's no effect you yeah that's affected me in a positive way yeah yeah yeah so you can do it but it has to be clean history okay right at age 17 okay perfect okay so this is from Nellie Gibbs she wants to know what the best way to repay student loans and what's the best way to handle student loan debts oh so we're talking about this earlier so depending on the loan if it's a deferred person collection I mean you kind of got to find out that but anyway the point is if you have a bunch of student loans everything is based off for income the payment plan is based off of an income base right so when you call us to don't know you want it I suggest everyone create a payment plan I don't keep the furnace work it's not a good thing to do because affects you from doing big bigger purchases in the future but on what you do is you go to student loan company tell me when you want to income based repayment plan and they send you a form you fill out the trick to that is that make sure when you fill out the forms you put it you have a lot of expenses so the monthly payment is a low payment and they keep you they lock you into that for a couple years and then you recertify again but you want to put like you know you have you know rent cards to take care whatever it is to show that you have a lot of expenses if not they're gonna hit you with a higher monthly payment of some 100 or more yeah we've seen I've seen yeah like I've seen that's how you trick it yeah so our next question is from oh and also next thing yeah if you have student loans on like two different like Sallie Mae now that and all that you can actually have all of those loans we financed into one loan and I suggest everyone do that so it's easy if you detracted payments and I'm making to five different companies the idea is 100% real man like I was again like I have student loans like right the first thing we what I did was like consolidate him all navient is not to do so the our necks question is from at flow underscore Bella underscore and her question is what are some ways I can fix my credit herself like what can she do so first of all you gotta put on the report and pull a real-time report I you know Credit Karma that accurate is not detailed um if you have a mortgage lender those are the best reports that they try emerge and they give you your whole history for when you were 17 or when you got credit the current excuse me once you pull that report you're able to see all the derogatory and the issues that are holding down your credit um if it's stuff that you know that was paid off already uh you can dispute it with the viewers they had like their party collections I have that taken off over but you got to see the negatives on it and what that's the RC you put a plan to address them if there's some desks you can do settlements that you have to settlement so you can call about the car tourism directly and negotiate with them to make a payment plan you could even do one account a month until you get to your you know end result things is a hundred percent accurate like it'll show you that you missed a car payment in 2014 very detailed yeah alright so this is a big one who cares underscore no one so can child support be removed from your credit and can we talk about the effects of child support on your credit so child support it reports is a collection debt all right um yes it can be removed actually we're done one could we move them a letter cannot remove them the problem is if we remove them you cannot miss a payment again because if you miss a payment it'll come back on same thing for late payments on credit card I want to talk about that actually we can remove all your late payments but you cannot miss any late payments moving forward if not it will come back on your credit work or the bank reports in a batch file all right so transport can report and it is a collection also so if you're trying to buy something and um you know your DTI is often your numbers are off it can affect the monthly payment that you're paying in child support can affect your approval how that can get up roofer hmm that make sense all right so our next one is from at done in three two one and he asked when do agencies report debt balances is there a specific time during a month that they do it when is what my nieces agencies would be tall so I'm assuming that he means like when do does like TransUnion or experience experience or Equifax there's a specific one the mothers don't the bureau's update on the first to the fifth of every month but the data comes from the bank okay are the collection is your the creditor does not come from the from the bureau okay they don't want to just house the data you're on the first to the fifth of every monthly update new reports okay your bank reports different day some days they report you know the ten to fifteen whatever your billing cycle is but that's something you can find out yes to make it easy for you if you want to make sure you never late on your payment you can call all your credit card companies and ask them to make it do they the same day every month so you have five cards you can make them all of them the 15th of every month so you know you know you know if you're a person that keeps together to make payments you know under 15 every bit as do if you can afford to do it okay rage against ordinary has a question she wants to know after chapter 7 bankruptcy how long does that stay on your report bankruptcy stay for seven years and here's the crazy no a bankruptcy now one the creditors can contest the bankruptcy brilliant they don't have to like let's say you have bank bank marginal tourists they can contest it they don't have to accept the bankruptcy mmm they can say no I don't you know it's we don't want to they can contest the bankruptcy to the new bankruptcy laws on depending on what chapter you're filing you have to pay a percentage of your debt back in court right percent and that's determined by the the judge the magistrate or whatever is doing in bankruptcy what's your percentages so if you file in bankruptcy the I really think about it if you don't have like fifty $200,000 worth of debt it's not really funny back it's not really worth it in my eyes to file bankruptcy for seven years that was gonna be like my next kind of question off of that is like when would it be I guess appropriate to file for bankruptcy right there's certainly amount of debt that you should I mean there's a couple qualifying scenarios I mean if you're not working you know you can't do anything about you can't pay anything you know but if you are working you have some savings so when you file bankruptcy they go to all you have to disclose all your assets right so you know if you have money in the bank like well why can't you pay this knowing that the banking contested not all banks after and that happened to me actually because I did it many years ago and they contested it then you can't even put you can't open an account for three years a bank account but you can't show if you have any kind of money anybody go any Bandcamp well because they can go back oh well you have money you know it becomes very messy but again with the bankruptcy and it's not as easy as like the way it was in 2010 you file it and you walk away you had a paper son is back so you know I think everyone should really consider depending on the scenario because still filing bankruptcy it's not the best route it is a route but it's not the best route depending on your situation but it stands there for seven years and then you can the other thing about that you burn let's say in the industry is prime and subprime banks so let's say you file bankruptcy would discover American Express Berkeley chase once the fire burns you can't go back to do business with those guys again they're not gonna extend any credit tonight you kind of stuck in a subprime re subprime bang kind of rest your life we've been high interest rates because major banks are not gonna extend any kind of credit card to you our next question is from at young guard I said if if I default on my business credit cards it does it show up on my personal credit if you PG yes/no if you didn't PG it no it does not if you personal guarantor when you open it which I'm be honest with you not and I know presumably 99% of the people that said they have business credit their PG and everything okay then I go into the four steps of registering a company correctly building it correctly they're you know if you so if your social is going on that application your PG and develop so you're personally guarantee some old people I think that they have business credits really just an extension of their own personal absolutely for their business correct but you can actually establish business credit but you have to know the steps of getting an office and having those ten seven okay that's important to understand people especially entrepreneurs because a lot of people don't I didn't know that I didn't realize that so alright alright man so yeah so that that was pretty extensive as far as the ten questions um alright so I hope that you guys listened because I won podcast episode is not gonna be enough to fully grasp but what we try to do here it's never enough for anything but we try to plant a seed right there we try to plant a seed and then hopefully you gain information it's like when we had Quentin or as far as talked about stocks right you can't learn about stocks in an hour but you can you can gain enough information to now you can go on a journey of seeking information for yourself right and then also you have to work with professionals although only say you can try to things yourself and it may not be a bad thing but it's always good to work with professionals if you can right so that's why we brought Andy here and Andy's gonna give all of you guys his information but before we do that I wanted to talk about la briefly yeah yeah so we went to LA as I said this is our first episode back from LA and it was dope we had some some some great interviews met some great people met some great people and we had a networking event and about 50 people came maybe even more and we we fed the people we gave them we gave him drinks it was just don't I don't Bob sells out the dollars we want to come yes we want to come to your city so if you have speaking engagements if you have opportunities if you have anything for us feel free to DM us if we feel free to email us because we have to spread the financial literacy word to the masses and the only way to do that is to travel we can do that via the internet but it's nothing like touching the people so we want to go to Chicago we want to go to Miami we want to go to Toronto Canada we want to go to Philly we want to go all these different places al and of course we gotta go to Atlanta so Houston but um we need you you guys helped so yeah so we'll talk about our patreon later but before we wrap it up Andy can you and I just realized this - is that a DC yeah thing she chases chases say so can you just give me like a 30-second was that home so she has no slow bucks CEO slow years Oh mister rugs and Atlanta coins get the money yeah you know I did some stuff with rugs two years ago three years ago in Atlanta on his credit he was purchasing some cars and you know whatever he was purchasing I hope tomorrow he got introduced to me to UM slow bucks and then so anyway to him I went down to the mr. Roswell white party one year hung out with him prime rest in peace prime prime time meek Mill's I got infused to meek and you know bunch of guys to changed in all of them and then you know we started talking at lunch on a Sunday like this with this guy here I am a brown guy nice guy don't fit in this guy you know anyways the credit guy whatever whatever whatever I did some stuff for Meeks they don't meet the good vibe you know I said yeah like this guy's cool do whatever so you know you can look with the DC you know Jason appreciate that actually you know I'm you know okay well south of me yes it's very rare to have a credit with specialist to have a Meek Mill chain so but I for that alone you you know you you gotta you gotta give him a shot so can you tell the people how to contact you your social media handles and definite so our website is www.crossfitaustin.com phone numbers five one six five six eight four five four one we have our main locations in New York real satellite locations at eight state to in Canada Toronto and Ottawa and you know I mean you know I mean I'm all over my mouth so Choi can you talk about our Patriot man is it's pretty overwhelming you know we see about patreon every episode and we you know the LA was the first time we got to actually reach out and go to see people and a lot of us do because of the support that we get from patreon and other avenues so patreon is a way for you to financially support the podcast we we can't do any of this without you but if you you know if you want us financially support us so that we can go to other cities and spread the word a financial literacy and other things like we in LA we talked about a multitude of topics man we met some great people and to see the messages coming to fruition is just like amazing I think I called I texted off on the plane like I'm completely overwhelmed with joy right now just to see people actually responded to it that we've never met before we had a great conversation the other day with some of our patreon members about how they're applying what we're saying into real date like application it was like amazing right we spoke to somebody who has a quad life right yeah the quad legs right yeah and he was like yo I listened to episode 12 and it inspired me to mad right and it was like oh this is crazy like look at the impact that we're having so if if you're not on patreon from feel free to go and patreon.com backslash and ernie Lygia we have five different tiers that you can join that there's a real basic tier and then we have a more extensive tier where we talk to people you know three times a month or you know we have a video chat about the episode because some people have extended questions after that we air so that's a feel free to check out patreon now continue to support our merch or leader com I tell y'all season two is coming it's on the way it's on the way we're gonna be doing some dough stuff so yeah man yeah now shout out to Kody and yeah we spoke to him and so we uh we have you know a lot of time people want to pick our brain right for like business mentorship or investment mentorship so we built relationships with a lot of good people and real know people we know if you think so yeah patreon is a way to extend the dialogue so and just you know it like I said just to travel like win la me talking out Herenton and he's giving us game and he's giving y'all game just from being on the podcast about I mean this guy's gonna be a billionaire just like it happened this might happen so it's very rare to have an opportunity to have an hour conversation with a future billionaire each is giving game free we wouldn't been able to do that if we didn't go to LA so you know we're gonna go to Atlanta like I said all these places and shout out to Toronto Canada can we just get a minute to talk about Toronto because favorite city somebody had a question two people had questions about credit and you just like what you told me earlier because because we don't want to just we're bigger than just America people we have listeners all over the world we have listeners in Africa we have listeners in Europe and we have listeners in Canada Canada's women are our strongest basis in Toronto specifically so um yeah just a brief because I know the credit over there it works and you work in candidates oh yes all right correct so you know Canada they only use two bureaus Equifax and TransUnion um the thing is can is a little more strict with the credit because they don't have that much mass they don't they're very strict how to extend credit right and it makes sure that you have collateral for everything but what takes us three months to fix in the US would take us six months to fix in Canada it is fixable it's just a longer process um but it is fixable and Canada credit like the economy is much more tighter in the u.s. you know so it's fixable you need us we have an office to office laughs they're actually Drago and one in Toronto Mississauga seven seven one one one syntex Boulevard and Ottawa yeah so if you're in Carroll hidden div where's Canada and we are coming to Toronto so very sure we could sum up for sure yeah um all right so Annie thank you for coming for joining us again before I leave I always have a book tips on my book sip of this episode will be multiple streams of income it's a very very good book and um as we always talked about you know you need multiple streams of income so that it out lies multiple I think it outlines nine different streams of income and it kind of like gives like each chapter is devoted to that different stream of income so highly recommend the book multiple streams of income for anybody is seeking multiple streams of income and thank you for rocking with us we will see you next week peace [Music]

Channel: Earn Your Leisure

Views: 90,141

Rating: 4.9297891 out of 5

Keywords: Credit, Credit cards, Credit repair, Student loans, Child support, Debt, Bankruptcy, Build credit, Credit score, Trade lines, Credit restoration, Perfect credit, Debt consolidation

Id: b9GmLhUiqPA

Length: 52min 50sec (3170 seconds)

Published: Tue May 21 2019