How to Build Business Credit FAST With The Credit Dude | Rants & Gems #54

with a thousand bucks you're starting on your way to being an entrepreneur separating yourself from some mindset from the friends that are like yo let's let's go to the club tonight nah man i'm trying to start a business take that thousand dollars and do something right now how are you gonna buy a half a million dollar home and you owe t mobile 250 yeah sure agreed doesn't make sense let's be my rants and gems to be my ransom gems yeah i could do what we discovered [Music] yo jim droppers we are back with another incredible episode look in this episode well let me rewind we started off the beginning of the year with the building blocks with him 500. absolutely we talked a lot about personal credit yes we did and now kiana we're bringing in our other resident credit expert jose the credit dude what's going on jose how you doing you know we're alive and blessed my brother we're live we are alive and blessed and we are grateful to have you here awesome um you know i i love the information that you share everyone wants you to come on here and talk about business credit and most likely people want to buy homes using business credit right i want you just to jump right into it and talk about how they can build their business credit to purchase a property yep so i think one of the one of the one of the biggest misconceptions though i want to i want to let you know is that you really can't build your business credit up with like nav you know dun and bradstreet experian business or equifax business and then get a bank to in a sense pre-approve you to buy a home so you could build your business credit up all you want you know uh they're still going to use other sources in a sense to you know to to give you the funding needed so usually what i tell people is you could open up an llc today not really build any business credit on it but still get approved for a house on it fax but if you want to go ahead and get a llc today and then let's say you have no cash you can get credit cards which is considered like funding as your down payment for whatever house you want to buy so let's say if i want to open up you know rodriguez con rodriguez management llc you know if my personal credit is good i get a couple credit cards you know pnc bank chase wells fargo whatever the case is and i can get a check from those credit cards to use as my down payment to purchase property and that's where people need to know that that's how you can in a sense buy a house or buy an investment property using business credit well well whoa whoa whoa so let's rewind first and foremost first and foremost for the audience out there you do not need established business credit to purchase real estate the lender is going to look at the cash flow of the property to qualify you we're going to run your personal credit make sure you have 620 640 whatever that lender requires um you will personally guarantee it but the mortgage will not be on your personal credit report so i just wanted to break that down real quick before we move on to this business credit buying real estate yeah absolutely because i put a tweet the other day about a week ago or whatever yeah and i said what happened to all these folks that were talking about using their business credit to buy um real estate for me i think that's a terrible idea yep me personally right because i just feel like you're you're putting yourself in more debt to get more debt yep right now i do know people who have successive successively purchase real estate by taking out you know whatever cash advances to buy real estate but these were seasoned experienced investors exactly who knew what they were doing right and they had an exit strategy to pay back off that debt um but i see a lot of first-timers jam themselves up by putting themselves into that debt matrix um because it's business credit it's not your personal name but it's still your credit yeah that you utilize it so do you recommend a first-timer doing this strategy absolutely not okay i don't i don't ex i don't unless you have some money saved right on the side unless you have another business that kind of has some cash flow unless you have some type of other revenue stream but like if you could barely make ends meet or if you could barely afford the credit cards and your personal credit and you don't have some type of like cushion absolutely not because you know during the time of you let's say you get thirty thousand dollars in credit cards you put thirty thousand dollars down you know on on a property right you still gotta carry some type of cost you still need something you still gotta make those monthly payments even if it's zero percent interest which a lot of these cars do come with zero percent for like 12 18 months you still got to make the payments yeah absolutely so if you don't have something else covering that that's why it's a bad idea it's a very good idea but it's not a good idea if you're not able to manage the payments and if you're not like if you're not one of those people that pays their stuff off every 30 days every 60 days you used to carry in debt you don't know where you're gonna get your next five ten thousand dollars from then absolutely not don't do it because it's not the best strategy if you're not aware of how the debt if you don't have any return on investment coming in right away it's not a good idea it's it's possible to do it i don't suggest it unless your your seasons like you said unless you have some experience doing it or you have some other cash flow coming in somewhere don't don't you know don't don't get messed up in that cause then you now your business credit cards are gonna be maxed out then if you don't pay it's gonna go on your personal credit your personal credit getting maxed out you didn't do the deal you didn't fix the house you didn't do anything and now your flip flop it flipped yeah flip-flop and then now you try to do a strategy that you saw on instagram or youtube somebody try it you tried it and then oh it didn't work no just you just didn't you just weren't ready to do it you mean what a tragedy so what a tragedy yeah well it happens every day yeah it does happen often at least you cleared that up like people want to everybody's talking about business credit business credit it's like the most popular thing yeah like it's almost as if do you feel that business credit and personal credit is so separated that it won't affect the other that one doesn't affect the other because people truly think that it goes hand in hand if you want good business credit you need to have good personal credit why because the same strategies and principles that apply in business credit apply to your personal so if you think that you could just ignore your personal credit i'll have a 580 520 right oh i'm gonna build business credit well guess what man if you didn't pay your personal bills you got to learn how to pay your business bills as well exactly so i say it goes hand in hand and that's why it's together like it if you get your personal credit up to a 720 750 and you want to build business credit you already have the same principles of paying on time doing what you got to do only applying when necessary so you building business credit is going to come a little bit easier you could do it at the same time you don't need a 800 credit score but i i don't like how people say that oh you could leave your personal credit alone and just build business credit or you could just leave your business credit alone it's hand in hand and go i feel like it goes together and when you do it together and you build both of them simultaneously you put yourself in a even better position you double your borrowing power and your mindset is just different yeah you know what i mean you just have a different mindset when it comes to things no that's sick so what about like all right somebody's new they're beginning in their journey of entrepreneurship they want to start building up their business credit what are the steps that they need to take to build up business credit and acquire business credit right so i mean obviously the first thing is is have an llc you know or any type of business for that matter you don't have to have an llc you could have llc corp c corp you know get what you know get with a professional on how to on what the right business is uh because what's crazy is we have a lot of people that come to us and say oh i'm a sole proprietor i have an ein but i'm a sole proprietor you don't really want to build business credit that way and even if you have a tax id or ein if you don't actually have like a a business formation document that's what you need get your tax id with the state i mean with the irs it's free doesn't cost you anything to get it get a business bank account which i think is the biggest thing so those three things have to happen like the same day or the same week like don't get a business get your tax id and then don't open up a business bank account yeah i've made that mistake when i've opened up other llc's and you just don't want to do it because then when you start applying for credit oh what's your business bank account yeah so just just do all those three things like within the same day okay um and then the second the other biggest thing is you know a lot of people are using their home address so have you been seeing like people using their home address for everything um there's places i mean now it's 2022. you have regis you have virtual offices you have i think there's another company called opus like there's a lot of other companies that you can use 50 100 a month get the virtual office stop putting stuff in your personal credit and a lot of people say like oh well i'm a landscaper i'm a photography company i'm this i don't have it doesn't matter if you're using your home address to build business credit the risk factor just went up and credit is all about risk credit score is a risk credit is a risk so if you're using your home address for everything right you could have a 800 credit score you're still at risk because you're using your home address absolutely so just spend the 50 to 100 and people like oh well i don't have the money well that's the thing you can use your personal credit to leverage more credit to pay for the things that you need for your business credit and we're going to talk about that today too i like you know what i mean so it was like oh i don't have i don't have uh uh money to to pay the 50 a month 100 a month well do you have a credit card all right well use that or just get one under the business so you kind of got to do things in reverse a little bit so like let's say you if somebody's starting out like you said and you have no business but you have good business personal credit or you're just starting out building business credit card read yourself first and say hey i want to buy an office address so kind of you got to kind of do it in reverse get the virtual address first then open up the llc then get the tax id then get the bank account because now when you open it up you're doing it with the virtual address that's what i was going to say everything goes to the virtual address yep and it's a little bit easier it keeps every and it keeps it cohesive yep you know what i mean and then now when you got the virtual address now you know what to make my next payment i don't have the money coming in that's when you start using it when we you start applying for business credit which we're going to talk about yeah but g suite you guys heard of gcp with google yeah of course very cheap right you get a domain you go to go daddy you know what i mean if you don't have a business yet just say jose rodriguez.com yeah you know thecreditdude.com whatever the case is get whatever it is domain your name domain something and then when you get your business address your email address you go to g suite you connect it yeah and now you have a professional email address you don't have like yeah even get a business phone number too yep ringcentral yep it's very good i use ringcentral don't use um i think it's google voice yeah and there's a like vonage is good ring central because now you it's it's a dedicated business address one of the biggest misconceptions is people get like a phone number with verizon uh-huh sprint it's still a cell phone number yeah even though you get it under business credit it's still a cell phone it's still a cell phone i don't do it i want to suggest you to do it so this is the thing once again how you were saying like when when people start building uh when they want to invest in real estate there's a lot of costs that come into it absolutely when you start building a business credit there's costs absolutely think about it opening the business bank account sometimes you got to pay it monthly without even having any funds in it ring central virtual office g suite you know next thing you know you're looking at a thousand dollars a month hey let's not forget about hiring your tax preparer oh absolutely the whole team right you know attorney right you know things of that nature so it definitely gets expensive and that's the thing if your personal credit isn't in order how are you going to pay for this stuff if you have no revenue coming in and that's why it does go hand in hand because a lot of these places when you do start applying for business credit they'll be like oh yeah you need a personal guarantee because correct you're under six months you're under four months you're under two years um and and that's the thing is is if you do all that llc uh ein bank account virtual office uh personal uh professional e g uh email business phone number a website you're straight yeah like that's the i believe that's truly the foundation that's your business in a box right i'm starting like yeah and you can do that yourself for like for it's going to cost you a thousand dollars to probably start everything up but where can you like you can with a thousand bucks you're starting on your way to being an entrepreneur separating yourself from some mindset from the friends that are like yo let's let's go to the club tonight nah man i'm trying to start a business take that thousand dollars and do something else absolutely and start separating yourself you know get a google my business page and then once you start becoming credible and with the eyes of the lenders then now when you start building business credit oh wow this guy has a website he has a domain he has google my business this guy has a professional email address they have a professional you know their name is professional and that's just going to be a lot easier when it comes to building business credit and i think a lot of people skip that they just want the ad maxes they just want the products but they're not willing to do the foundation kind of like how marcus was talking about with the building blocks of credit people want to skip that you can't you can't you can't skip that and with business credit you really can't skip that now here's the thing i want to carry my business name okay but everything is on your personal using your home address no bank account gmail address cell phone number but you want a card in your business name and then you expect to the dealership to give you a car in your business name when everything is still in your personal credit so that's a good i'm glad you went to the cause on the credit report especially the personal credit report like i purchased vehicles in my business name right but there's a lot of folks out there especially when trying to qualify for a mortgage oh yeah they're they're getting range rovers they're getting g wagons they're getting everything and these cars cost a lot of freaking money basically lambos you know we talking 1500 to probably four thousand dollars right right and then although they're making money they'll be able to pay for it but now their debt to income ratio might be higher and and it limits their buying power so what are ways that someone can take their personal finance car out of their personal name and into their business name yep so once you have all that what i just explained set up which couldn't take you like a week or two right if you really dedicate yourself to it um if you have a car that's financed not least that's finance with like 60 72 month term and you bought it under your personal credit you can go to uh bank of america okay website and you could just google it bank of america business auto loan um it's like the advantage loan or whatever the case is and when you go on there it's going to say do you want to purchase a car under your business or do you want to refinance oh nice and what a lot of people don't realize is when it says refinance that doesn't mean just refinancing under the business that means you can refinance that car from your personal credit and put it under the business but why can you do that because now you have an actual business set up absolutely one of the biggest misconceptions is that when you do that all you need to have money going through your business you need to have two years in business that ir like listen i'm not an accountant i'm not an attorney i obviously get what dumb you don't mean but the thing is is bank of america is not going to say all you need to be in two years we need a bank statement so we need this you're paying for the car it's not like because when you do this they do check your experian personal credit okay and what's the minimum score they're looking for honestly man it's crazy because i've seen people with like 620 get approved wow but i've seen people with 750 get denied because they got a repo or a current lead payment oh yeah if you've got negatives you never know yeah right and you just try it you know because you already put the car in your personal credit so one inquiry one auto loan inquiry from bank of america is not going to tank your credit score but i always tell people listen you know where your credit is at absolutely if you got maxed out credit cards i don't need to tell you to not do it yeah yeah yeah yeah but the thing is bank of america they're willing to do it and you reap now what happens when you refinance that car on your business now you build business credit because now that auto loan is a is an auto loan reporting to your business credit reports it's off of your personal credit your personal credit might go down because you're closing the car loan obviously whenever you close a car loan yeah your score does go down a little bit but it's okay because the you what's the benefit that to incorporate dti yeah that kind of transfers everything over so now we're buying cars but what about buying houses in the business name right what are some steps for people to want establish their business and to purchase a house everybody and their mom wants to buy their house under a business name now i think it's anonymous i think it's about just exclusivity i think people want to be a little more private they don't want it publicly put everywhere so can they avoid it being on their personal credit by buying a house in their business name and second part of that question is can they finance it matt oh yeah yeah i'll let you go first so when you're buying the house under the business name to my understanding all you really need is the llc right but like i said before is you're not really going to open you're not really going to get approved for a house using your you know using your business credit so they are going to look you know if you're doing hard money they're going to look at the deal right and you just got to come up with a down payment now as far as as far as i could further question you as far as like because i don't have any how like my personal house is on your personal credit yeah but i know there's a way where you guys talked about it on instagram where you can get the house if you're entrepreneur or whatever the case is where it only shows up on your yeah so you can you can do like so if you're like you said hard money right for hard money lenses i can look at your experience first and foremost right your experience is going to determine how much of a down payment if you're an experienced um investor flipper and you have your huds or your closing disclosures to proof prove that you have the experience typically three four transactions in the last 12 18 months is what they're looking at then yes you'll do a 10 down get a hundred percent of the repair costs now if you're looking for a long-term rental it's more about the cash flow now there's a lot of lenders out there that won't give a first-time home buyer this type of loan because they have zero experience but there are some lenders that will but interest rate wise you're going to feel the pain right you're not having no experience but they're not but those those deals are going to require if it's a multi-family 20 to 25 down payment and we're looking strictly at the cash flow of the of the property so basically does the property debt service itself and can i want to make at least a 20 profit after all expenses are are paid right and you can put it in your llc but the same thing is you have to run your personal credit because it's going to be personal guaranteed so for all of those who think you can just go skip out of town and not pay the bank back their mortgage no no no they're going to hit you with that lien if you try to bail out and not pay pay the money so there's ways that you can do it um again you mentioned entrepreneur loans right um kiana's favorite my favorite as well oh yes um i should i definitely feel like i should have trademarked that you definitely shouldn't right you definitely should have so there's different variations but the most popular is using your bank statements um to qualify for the mortgage and we're using those deposits um the lender will use an expense ratio 20 50 basically backing out your expenses and then average that out over 12 or 24 months and then that's your income that they're going to use no tax returns no pay stubs none of that stuff and you can also put that property in your llc even if it's your primary residence too so this is very popular right both of our both of us both um with our celebrity clients our influencers they don't want nobody knowing where they live absolutely right and it's you know people are crazy out here in this internet world right so it's very important that you protect yourself um especially when you open up your llc's and we're gonna i'm gonna throw a question back to you after i finish explaining this but this is a prime way for self-employed business owners to buy properties those are like the three most popular if you're looking for investment property um you do those asset based loans if you're looking for fix and flip you do a hard money and if you're looking for your primary you can do the entrepreneur loan and use your bank statements your business bank statements now your business has to be in business for two years okay i will say this um the business has to be in business for two years um but you can open up a brand new llc for any one of those three that i just mentioned brand new llc you can open it up tomorrow and it will get approved as long as it meets the qualifications of those set programs right right so to record products hit us up you know what i closed multiple entrepreneurs let me just go ahead and plug this tiana watson broker extraordinaire but it does keep you anonymous and it does absolutely protect you especially when the llc is created correctly there are there are some states where the llc is public like any business that i've created if it didn't if i did it in georgia you can go to our secretary of state and you can see that i created that business right but there are certain states in certain areas where it can be anonymous um and you don't have such a way to trace you back like it can get deeper than that like you can go from loc llc can go from actually having a trust create the llc yeah like you can go deeper and deeper and deeper into this to protect your privacy which leads us back to you credit dude um when they're establishing these llcs um how is that what are the best ways for them to establish them and what are you seeing happening affordable ways because there's there's a lot of people affordable ways take advantage of it yeah you mean establishing what do you mean like starting up the llc like how do you how do you start an llc yep right like what are your steps so i mean to start the llc i mean i always tell people you can do it yourself that's my suggestion if if i always feel this is the thing this is what i feel right you could pay somebody to do it but if you're looking to buy a property or you're entrepreneur this ain't going to be the first time you do it it's not right so it ain't going to be the first time you could literally google your state like new jersey create a llc in new jersey right 125 filing fee and you figured out yourself right or you could you could you know have somebody coach you there's youtube videos whatever the case is but i feel like when you do it yourself you're you're that much more vested in it you're that much more you're like yeah i want to form this llc i want this to work but it's like yeah man just have this formula llc and it's like whatever you could do that yeah but what happens in the second third fourth fifth llc next thing you know you get more experience you know which states protect you you know what's going to hide it you know which states and then now you become a little bit not you're really entrepreneur like i feel like when you do it that way when you form the llc yourself you just have that much more like control or not even control but like you're invested in it a little bit more right you know what i mean or you can just pay somebody 950 dollars to let them do it and and you know what i mean but that's like i said that's up to you it's it's your preference if you don't want to deal with it don't deal with it if you want somebody to form of you and give you the package and you still invested in it but i like to i like to like touch exactly like what i'm doing and and that's why i like to create that llc and if you mess up it's part of the process yeah you fail you learn you fail you learn but obviously creating llc's is not something we're told in school but there's a listen new york you google it it's down there wyoming kylie floyd typically i'm the secretary of state like if you look up secretary of state for your city you can normally see how to create a llc i think it gets a little more difficult when you're doing s-corps and c-corps correct and then you have to have you know um what is it like you have a board of directors you got to have all these agreements in place yeah i think that's complex but llc is very it's somewhat simple to do um but i would still say it you know take some advice from other people because it is public so then you have to put layers in because the worst thing you can do and this has happened to someone i know um they bought the llc perfect got it in the state of georgia great purchase the house in the name of the llc okay but you are the registered agent with your own personal address on the llc so it still comes back to you and it so you're trying to be anonymous but actually it's just a house in your business name that traces right back to you so that's that extra layer right there which i'm very familiar with if you would like to work with us and uh however no seriously it's an extra layer you have to put you can't be the registered agent and you don't need to use your personal address and then you also need to figure out do you need an attorney do you need a trust like i said it can get deeper yep depending on what you're like depending on who you are yeah um but at the very least that's what you need like at least getting llc but just figure those out that's why i say you can do it yourself but it's counterproductive right if you're doing it yourself and your name is all over it yeah and that's what getting the virtual office it also does add that layer of protection too because if you get the virtual office and when you register llc you're using the virtual office address that's everything yeah not your personal address look it's spooky out here it's crazy bro internet is a scary place and if you have your business people will straight up go behind the scenes and figure out everything and you have your own address like yeah it's crazy out here like you don't want people popping up back to your credit i had to happen you know what i'm saying when i went back so back in the day when i had my house addressed for everything it was like 2012 2013. that's crazy my house address was listed everywhere oh my apartment i should say and actually had a client knock on my door like eight o'clock at night like hey man i'm just trying to get some dispute results i'm trying to see it's up for my credit i'm like what the heck that's when i started googling stuff that's when i discovered business credit in 2013. wow that's when i discovered virtual office and that's when i discovered was like holy crap like it's a scary world spooky people gonna show up at your door and and that's the thing is people can find a way to find a way to find the stuff yeah you definitely it's up to you people are nice so you got us all you've gotten us this far you know you're telling people how to buy homes and they're in the name of their business um using business credit um can you tell us some of the best credit cards because one thing about it you know you flex amx all over your instagram page like there's different levels of amx's the gold the silver the blue the purple light the green and so i think that i want to at least talk to people about how is it like i feel like you really favor amex and i tell them what's the best starter card from am for amex and why you believe it's such a great card to have oh you have a whole shirt yeah it crosses out cash crosses out debit and just has amex um and the reason why i like american express is because of the amount of credit cards they give you oh yeah to start so if you are a so there's 14 business american express cards right if you have good personal credit or already have a relationship with american express you can typically get six of those 14 credit cards in one day yeah and that's why i like them because if once again if you're looking to start a business grow a business whatever i wish i had one credit card when i started my company back in 2010. you know what i mean so imagine what six or five oh yeah credit cards can do with high limits so when american express they say what's the best credit card to get with them to start as many as you can get and that's my response to that because there's four charge cards that's the platinum the gold the plum and the green card right okay which one is the best i like i like the gold card me too i like the gold card the best um for what reason i just want the way i spend money um you know with business expenses and ads and things like that i like american the platinum for travel because you get five times the reward points i know you're talking about that i have the delta platinum the delta platinum yeah so the thing is so if you get the platinum the gold the uh the plum and the green you get all four of those the first day so how do you do that you go to american express's website if you already have a relationship what i mean by that is if you have a personal credit card with american express you can literally log in through americanexpress.com go to business credit cards start applying for those credit cards and the llc that you just created last week with the virtual office the bank account everything correctly you're using your personal credit as the guarantee but guess what they're not running your credit because you have the relationship already with them so they're not running your credit so even if you don't have a relationship with them you can still do it the same way instead of applying for a personal credit card plan for business i have zero personal mixes i have zero yeah all my money two of mine's a personal one is business my gold is a business and two my two products the one delta one i have is business yeah it's personal that's the only one that's personal everything else is um business i love them all so now you get those four credit cards right i say get the four charge cards if you can the same day then what you're gonna do is get at least two revolving because a lot of the biggest misconception is that american express you got to pay all of them in full there's only four of them four out of the 14 only require you to pay it in full within 30 to 60 days i agree so get the delta one get one of the delta ones get the marriott one um i don't like the amazon right maybe get the hilton one get the blue cash because now what you're doing is you can use those two credit cards for like let's say you know invest fest is coming up absolutely i don't have any money to get your vendor tables your vip tickets i'm a new business i'm a new business i have you know what i want to i want to showcase my new business at invest fest open up the llc now get the business credit cards now use the revolving credit card to buy the sp the sponsor at invest fest use the the platinum card to get your travel now you're separating everything separating expenses now next thing you know you have 10 15 000 to buy product to buy merch to showcase that invest fest to blow your business up so now it's like it doesn't become an excuse anymore right because if you have access to american express absolutely you have access to everything everything because now you just you just paid your way to get in a room yeah that you normally would have just been watching at home oh make it the virtual nah man there's no virtual spend two three four five thousand dollars would come in here showcase your event showcase your business buy the brochures buy this buy that buy the backdrop get in the room and that's why i like american express is because you literally can go from having zero money to having capital within a couple of days and and the other business credit card that i like is the chase um chase income card i have that one yeah i don't have it yeah i filed bankruptcy in 2013. so the one thing with chase if you file bankruptcy with chase don't do it pay them pay them pay them guys yeah because they hold grudges and chase those they're so tight with their money like not bank with them um and they have great benefits like they make it easy as a business owner especially i'm so transactional i'm cutting commission checks money and money out they make it really easy but i do like the ink card like i definitely like it i swear i woke up one day and it just popped up i don't even remember applying for the cards then it just came in it was it just came in you need this i was like what what i called them it was like oh i'm like no okay y'all getting out of control here but i do think it's great to get the credit cards but use them wisely so often if we get access to these funds like we have to give them a fair warning and we're just talking about this offline i'm like okay let's quit with the whole i bought a gucci shirt with the points like you spent the money you spent a hundred thousand dollars to make the points and now you're gonna say oh now you spent a hundred thousand dollars cash that you had to physically pay back right and now i have enough point to buy a gucci shirt well you could just bought the gucci shirt i just think that we need to stop using that mindset as an excuse and kind of make be a little more responsible now you probably would have bought the item anyway but let's also make sure that y'all see the caveat you spent money on the charge card and amex they want their money like they send you three text messages two emails they want their money and they want it early actually on time yeah yeah and then they'll the same way they keep giving you credit you do one mishap they'll take it back yeah they'll snatch it back so what is some advice for people that are out here getting these cards like making sure that they're spending spending responsibly right and then tell them how do you feel about these points yep so it all goes back to the same thing i said before business credit if you don't have the same principles from when your personal credit was established you're going to think oh i got 35 grand i'm good it's not it's not reporting on my personal credit so you're out here thinking you got 35 grand just do whatever you want you got to pay it back absolutely you got to pay it back so definitely i would say even be more careful when you're spending money on the business because you got to be you close in you got to pay that back everybody you know what i mean so if you are going to get a 35 000 chase credit card make sure or any business credit card make sure there's some type of return on investment with that card and that and that's gonna be worth more than a gucci shirt that's gonna be worth more than any points because if i tell you hey matt man i got 35 000 credit card what can i put this on and you're like you know what man i got this opportunity for you where if you for 20 000 you can make 60. whatever that is whatever business opportunity whatever the thing is i tell you what though if you get a sponsored table to invest advance you're going to make your money back maybe not by the merch you sell or by the product you sell but by the relationships you make absolutely so there's a return on investment on what you spend doesn't always have to be physical it could always be long term well absolutely sponsored ticket or something like that and that's responsible spending but like you said if you're spending a hundred grand just spend 100 grand and get these points now with points they're they're good you know what i mean you can get free travel you can get this stuff but once again you're the hundred grand you spent you just gotta pay 100 grand back yeah exactly pay back that's the point you know i love it i don't think we're just kind of getting misconcept like if you're going to spend the money anyway it's a benefit to having the points but don't get so caught up in the point that you forget that you spent the money and i think we've all been there oh i know i i've definitely been warning you i'm trying to i'm really just trying to help you because i've been through this before yeah getting caught up and watching the point yeah but you just gotta remember you're spending the money to get the point yeah the amex is a beautiful card i love all the benefits like especially you check you book your your hotels through amex on the app and stuff like that you'll automatically get upgraded depending on what kind of car you're absolutely like so any hotel like if i know i want a suite and i know they have availability i'll just go buy the room below the suite so i get that price that's a little hack for y'all i'll buy that price all right i'll buy the king room knowing they got the suite available and i know the amex is going to upgrade me automatically to the suite right free.com free.com i love it right then you're going to get breakfast credits and all this other good stuff like sixty dollars eighty dollars a night music's in my ears right thank god for amex the thing is too with the american express card or whether it's the platinum or the delta reserve whatever the case is you get access to these lounges oh yeah yeah yeah yeah yeah if you have a there's a thing if i'm in that lounge or or sitting in first class delta lounge and i'm not talking about credit what are you doing in here exactly you're in different rooms actually right it gives a pharmacist uh a lawyer uh you know you're sitting next to all these people because unfortunately your average person isn't in these rooms because unfortunately people like us don't have the knowledge when we were younger to get in these rooms i didn't know about what the hell is centurion lounge when i was 18 delta delta club none of that right now imagine now you can sit in first class you're sitting next to a pharmacist or a doctor oh what do you do yeah man i do credit yeah credit yeah i'm a mortgage lender i'm a realtor oh well yeah and then it happened like that's why i only fly first class tonight i've become [ __ ] over the past oh yes i'm not going to hold you up credit makes you right yeah it does credit makes you [ __ ] oh i love that credit absolutely it makes you bougie i ain't gonna hold you up once you go first class and [ __ ] it's like it's hard to go back to the back of the bus it isn't they don't give you no mimosas let me digress yeah let me know so now you know we already talked about business credit we talked about establishing credit um and getting those prepared but let's just you know we got a little bougie let's bring it back down let's let's reset the room let's reset the room let's talk about like real quick what are some what are three steps you would give someone that knows that they listen their credit's not the best they want to buy their first home they need to establish credit because we have some people with nothing on their credit or they get it all wiped out and that also like prevents them from purchasing so what is like three trade lines or three things they should get to really help them improve their score that's simple to get so three trade lines or two things you should do three things they should do okay so number one is look at it it's crazy how that sounds but matt should not be the first person that looks at your credit when you're applying for a mortgage one thousand percent unfortunately credit karma should not be the account that you also look at to look at your credit and you go to mac because obviously doesn't show experian so i would say the first thing is you want to buy you want to attach yourself to a credit monitoring service that gives you all three credit reports that gives you alerts and there's a lot out there the identity iq there's experian myfico yeah that's the very very first thing is you want to look at your credit report 100 before you speak to yourself to matt to anybody before you start a business because how can you fix or improve what you don't see correct you know what i mean so definitely look at a try merged credit report that updates every 30 days because the changes when you pay a credit card off or whatever the case is now the second thing is now we're in may time's flying right in july the great thing is is that paid medical collections will be off the credit report talk about that for a second because i see that all the time right so that's the second thing i'm gonna say is that to improve your credit if you have paid medical collections on your credit report you don't really gotta if and at times not the essence in july they're automatically going to come off paid medical collections right paid paid not unpaid not let's because they're going to say jose on ransom jim said i got medical collections i don't need to pay them no hate pay the collection hey let's be clear and the thing is is i think that medical debt is probably the biggest thing that we see on people's credit reports and i'm an advocate of pay it yeah because you never know when you're gonna have a a broken leg again or or or or or root canal you've got to go back to the doctor's office pay the medical bills but the thing is is pay the doctor's office don't pay the collection agency why is that because now you're in a in a settlement or a deal with the doctor's office think about it normally a doctor's office it's a mom-and-pop it's just you know it's a it's not like a a doctor like a huge hospital yeah right normally you mean to tell me that if that doctor you say listen man i owe a thousand dollars i want to pay they ain't going to accept it they're going to accept it so now what does that mean you just paid them so that collection that you see reporting that debt to your credit report is in violation because you don't owe the debt to them anymore because you already paid it oh yeah so that way they have to remove it right and the thing is is it's like now the doctor's office that's why i'm a big advocate of paying medical debt if you have to there's people that say oh it's a hipaa violation is this listen we could that's the fraudulent stuff that i don't like to deal with if you owe the debt you might have to pay it back yeah that's just the way it is well i think that's the best credit repair anyway right you pay yeah you gotta pay it back but this is the thing instead of paying the collection accounts on your credit report call the doctor's office hey man i owe you 200 2 000 can i pay you 50 a month absolutely boom now you don't owe that collection they see anymore and it's off the credit but let's say you did end up paying a collection agency and it's on your credit report as paid in july is coming off nice the best other second thing with that is as of next year in 2023 collection medical collections under 500 are going to come off too oh that's amazing really so if you have medical collections under 500 they're going to come up with your credit and why do i say these things because start preparing if if you're looking to fix your credit right or improve your credit score and all you have is paid stuff on there you don't really got to pay anybody to fix your credit just wait two months they're gonna come off or just call the credit but hey man i know this coming off in july anyway can you take it off now cause listen it's gonna come off in july anyway you'll see that getting those paid medical collections off is gonna raise your credit score up 60 50 70 points because a lot of times people come to listen i have nothing negative but i paid medical collections four or five years ago wow can you fix this for me oh i need a credit sweep somebody's gonna charge me two grand no you didn't need the credit suite for this man you got two paid medical collections on your credit report yeah you know i mean so but you wouldn't know that unless you look at your credit but if you go to a credit repair company without looking at your credit first they're gonna be like oh yeah nah man this is a three thousand dollar package right here and you just have two paid medical collections so three thousand dollars trying to get that money you know what i mean basically that's the second thing is look at the medical collections and this thing it doesn't apply to like t-mobile doesn't apply to everything else i'm a big advocate obviously i'm i own a credit repair company you can still legally dispute your stuff you can still legally dispute everything even if it's not medical even if it's not you know um under 500 still disputed but if it comes back verified and it says it's yours hey i love it you can't evade the debt you can't evade debt that is yours that you took out and you just simply chose not yeah you're gonna have to pay that person someday you know what i mean and a lot of times when you do pay that person they're going to be like hey man since you paid us we're going to give you another credit card yeah we're giving another shot but see that's the thing i look at too right i always say the best credit repair is pay your bills and it blows my mind when i see people they want to buy real estate and then you look at their credit your credit is [ __ ] it's like why are you not paying your [ __ ] cell phone bill bro how do you expect the bank to trust you with 500 000 if you can't repay your verizon bill right like it just it boggles my mind people's mindsets they just want to skip yes i think that you know as people like plan and prepare and they say to buy a home it's like you save this money like oh well i have 3 000 in debt well 3 000 debt and then start again saving i think that and of course increasing your credit and disputing items and working with credit due but at some point if it's you it's your debt and they've proven it pay it so you can prepare yourself to buy it and move on right and move on right to something else look jose you've been giving us a lot of gems um i know you got to go we appreciate you coming on the show but you got to leave us one more gem for the audience before we get out of here yep so i would say one of the one of the biggest things which goes into personal credit and business credit right which a lot of people think like oh you know i have this collection i have this charge off i can't get ahead like you don't need just like how you don't need a 800 credit score to buy a house right you don't need a 800 credit score to borrow money so i think one of the biggest things is is if you know you want to start a business if you know you want to start something if you know that you're looking to take your life to the next level don't pay a credit repair company two three thousand dollars to wipe everything off right it's not gonna fix your problem instead maybe take that two three thousand dollars to settle whatever debt you couldn't take off or apply for a personal loan if you have a charge off if you have a collection if you have this and it doesn't come off your credit apply for a personal loan or borrow money from a friend let them get the loan for you and say listen man i'm trying to pay off my debt i'm trying to start my business listen this is my business plan now that's different than you're going to yo yo man let me buy two thousand dollars i gotta pay this listen man i got this business plan i got this this this i wanna you know there's there's credit unions there's even places that have high interest oh yeah but this is the thing if you could borrow five grand to settle all your debt now your credit score goes up now you can get business credit now you have one installment loan of like maybe 150 a month but all your debt is clean all your debt is paid you're not looking over your shoulder you have no wage garnishments you have no levies you have no nothing now when you start building your business you're using the same principles from your personal credit so now what happens man i got these payroll expenses i got this guess what get a loan pay your expenses make your monthly payment and then now it's the same thing so i think the biggest j what i want to leave people with is if stuff doesn't come off your credit it's okay pay it somehow either borrow from a friend get your credit right to the point where you can maybe get a personal loan from a credit union or something and then start over and then now build your business now with business credit now invest in real estate but just like you said how are you going to buy a half a million dollar home and you got you owe t mobile 250 yeah true agreed doesn't make sense drop some gym droppers certified gym driver jose tell them how to find you yeah man so i appreciate you guys for having me thank you for coming thank you so much on instagram i'm the credit dude and i always tell people check me out see what i do i'm not gonna be one of those guys that tell you to commit fraud i'm always gonna tell you do things the right way and if that means that you can't buy the house in a year and you gotta buy it in three it's okay but this that doesn't mean that you can't start working on your business credit and going after your dreams now because there's too many resources right now that you have in front of you that shouldn't prevent you from opening up your business or following your dreams because you never know is that one person that you speak to that one connection that one relationship that's going to take your life and your mindset to the next level so check me out on instagram the credit dude and i appreciate you guys for having me love it jose we appreciate you for coming by thank you thank you so much for coming thank you all right y'all know what to do like comment share subscribe we love you guys for tapping in with us i'm tapping what i got jose the credit dude he's not a scammer he is one of the legit credit companies out there i recommend him to all of my clients and he's helped hundreds of my clients over the past couple years so i am vouching for jose the credit dude personally all right so this is matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and this is keanu watson license number three one seven five seven six broker extraordinaire thank you so much for tuning in to another incredible episode of the ransom gem show have a great day peace peace out

Channel: Earn Your Leisure

Views: 376,644

Keywords: earn your leisure, business, finance, entertainment, credit dude, business credit cards, business credit, how to get a business loan, buisness loan credit, how to build business credit fast, how to build business credit, building business credit, the credit dude, rants and gems, rants and gems podcast, mg the mortgage guy, quiana watson, how to apply for a business credit card, how to get a business credit card, credit cards, credit

Id: 4NhJsy9JH2I

Length: 46min 43sec (2803 seconds)

Published: Wed Jun 29 2022