How to Get a Perfect Credit Score in 2019! -Jay Morrison

[Music] I'm a celebrity realtor kind of a real estate mogul motivational speaker I'm a big philanthropist I run a non-profit I do a lot of speaking throughout the country kind of a comeback story and I'm a entrepreneur I do a lot of businesses I'm five businesses to be exact five companies so I start by I love giving a form of information and what this is about is the blueprint for how you build wealth this is a blueprint for how you come a millionaire's I think the basics other than hitting a lotto or playing a professional sport I'm gonna give you like three core things that you could do immediate your life and that you can share with your loved ones or give back to your family on how you really build wealth the initial foundation for when you want to build wealth you want to become a millionaire one of the main things that you're gonna need is credit right so and our billionaire blueprints we're gonna cover credit and this is not a lecture this is gonna be I learn each your help and your response right because we're gonna learn together so there's anyone under does anyone know you want to tell me what the definition of credit is anybody you guys are in college you gotta know this at least your own version yes sir correct it's it's a easy definition for credit is the ability to make payments over time right so it's your ability to make consistent payment over a time period so if you borrow money from me today is AJ 100 hours and I give you hundred hours and you paid back tomorrow I'm happy you pay me back but you didn't establish any real credit same thing with a bank or debit card or credit card so a lot of times what we do is and we're misinformed miseducated is that we'll charge some things in our card this month and then we'll pay it all off into the month and we think that we did a good thing because we paid it off right we have a zero balance it has to be great but by doing that you form no credit with the bank by paying off your entire your entire loan so you want to make payments over a time period now if you charge something for $300 and give the bank $30 this month 30 to the next month maybe 60 you double up maybe 20 you've now shown the bank you can make payments over a time period so we'll write the differential current I'm gonna tell you why don't go into why that's actually valuable right it's not about definition but it's a foundation so credit is the ability to payments to make payments overtime right so where this starts we're gonna talk about how you establish credit and how credit is viewed so with credit your ability papers over time this is the core of how you start to build wealth because most millionaires most billionaires they don't use majority of their own money for their investments or for buying properties or buying businesses or they do they use their credit they leverage their credit when you see somebody buying a basketball team or buying these big businesses or four hundred million dollars Facebook was sold or Instagram all these kind of things these things aren't typically purchased with cash capital they're purchased by banks because people have made payments over time throughout their lifetime have established real leverage with banks and now can go to a bank and say hey you know what I'm thinking about opening a chick-fil-a in Jersey City and if banks gonna say well what's your ability to make payments over time I love the longer than money it sounds like a good idea very great business plan I went along you this money but he ordered a bank but hey I paid everything off my whole life in cash look they're gonna say well how do I know you're gonna pay me through the life of this loan if you want to purchase a house it took me a 30-year mortgage what's going to show me that you're gonna pay this mortgage back over 30 years that's gonna be your ability to make payments over time so a lot of times especially as youth we think that cash is king and in a real world in the business world cash is not King creditors came because this is gonna allow you to leverage to make big moves in life right so for me I learned this when I was 25 about my first I was 25 then I bought three houses about twenty six and six by 27 then I learned I could leverage making those payments on all those properties over time to get big business loans 1 million our business loans and private investors will invest in you because they've seen that you've made payments over time with other institutions right so this is where it becomes really valuable so is everyone familiar with the fact that we have three credit scores everyone know that you have three credit scores does anyone know what that what that abbreviation is or how that's kind of summed up what are your three credit scores called anybody or must I tell you he knows everything yes we all have there's three credit bureaus and if three scores are typically called your FICO score right your FICO credit score this is very important you'll also hear it was a FICO and then what kind of improvise and say aka your middle score right so your FICO score is what you'll commonly hear referenced as your middle credit score so you're someone what's your credit score right you really have three of them just three credit scores you have there's there's three credit bureaus there's it might be my spelling might be wrong but it's Equifax and it may be a here I'm not sure TransUnion and Experian right so there's three credit bureaus and out of these three credit bureaus you have a middle score a FICO score which when you apply for a car they'll just take one of these any one of these depending on the car dealership but when you apply for a house and the reason why I'm relevant in this conversation why I brought me here is because if you look real estate is the majority real estate is is the majority investment of wealthy people in America there's I think it's 80 point eight percent of the real estate in America is owned by ten percent of the population that means for every eight house or every ten houses you see they're owned eight of them is owned by one out of 100 people so real estate is a foundation for wealth so this is a wealth seminar Who Wants to Be a Millionaire or what I call Familia near blueprint but it's somewhat of a real estate seminar because real estate can be and will be the foundation of you achieving substantial wealth right so when it comes to purchasing homes all banks look at your middle score right so say we have Equifax here and you pull your credit and your Equifax score is 680 then you check your next score your TransUnion you have a 700 credit score but then we check your Experian and for some reason you got a 620 right we have cycles we have three scores so what here is your middle credit score it's not the average what's that 680 700 it's 680 but why is it succeeding do you know why can you tell them why correct very good this is valuable information it's like life-changing stuff right here if you came in here today and you didn't know what your FICO score was we get middle credit score you've been behind the game but you didn't behind like you should know this before you know your favorite rap song this is important what your middle credit score is and how to find it and the way you do that is and I teach it to high school kids college adults you know older adults or whatever but you take your highest credit score your highest credit score is what right so doesn't matter you put your credit report out right doesn't matter what order these numbers come in or these names come in makes no difference when you find your middle you take your highest score here's your highest right 700 and then with your little score 620 what are you left with that's your middle credit score you take your highest score and your lowest score you throw them out or you cross them out so you print out your credit for pay no attention to the order that their print you look for the highest score you look for the lowest score you cross them out this right here is your middle credit score your FICO so if you're applying for a long one day you finally find that girl or a guy of your dreams you said maybe we're gonna buy a house you go to the bank and I said well we need to what your FICO score is you're not kind of like a deer in headlights now you're gonna let your FICO score is your middle credit score which is the one between the highest and the lowest like this is the foundation for building wealth you can't be I don't mind you there's people that get lucky and become rich through luck through inheritance or through the lotto or to other things there's also people that put a gun in their head and pull the trigger in a jams but I don't want to run around putting guns in my head the way that you can ensure that you become wealthy in life is by learning these basic core facts because now that you know what credit is the ability to make payments over time you can stop paying cash for everything and paying all your credit cards off at once or understand that making those timely payments are very important and don't let them go on a default by all means if you can do this make payments over time and build up your credit scores and your FICO you now put yourself in a position to be able to buy homes cars get business loans and be able to leverage this credit for all types of things that can build value in revenue for your life right so this is all the foundation what credit is and your FICO now some people say with Jay how can I build credit though right does anyone know here here know how you can bill credit FastTrack what yes correct so we'll say building credit the hell right so one thing we just said is that you can get small credit cards small limit we'll see see see right you can get small letter let me credit cards even if you're paying get a credit card for $50 a month $100 a month and you make those payments over time you're not establishing a large limit of credit but you're establishing your ability to make payment over time you are establishing credit that will increase your credit scores thus increase your FICO score right by getting small limit credit cards that's one way anyone else know how you can increase your credit credit score who's that correct to small loans same thing credits credit with there's a credit card whether it's alone even it's a $2,000 car new car payment and you're making payments over time you're establishing credit this sets you up for the wind later you got to think about the long haul because one day before you know it I didn't I didn't go to college I wasn't fortunate enough I made wrong decisions in life but I learned some life lessons and I was able to get this information and apply as information and make over a million about for myself by 28 just by doing everything I'm telling you it's not like some stuff I just read in a blow comes for Girja state into this is a key stuff I really applied at 24 25 years old everything I'm telling you is such that I learned hands-on and then I apply these things and became successful so what's another way you can establish credit how can you build your credit anybody cool I'll tell you you go to a bank multiple banks small bank big bank Wells Fargo Bank of America and the Jersey Bank wherever and you can get a secured credit card or secured loan so same thing we just said here right but now you say well what if I apply keeping denied well you can do is you get the secure version of the above I did this it works secure loans and secure credit cards how they work is you go into a bank right you get your refund check or your job check you get a couple hundred hours you go to the bank and say I wanna just guide jamester real estate came in my school and set up an established credit then you go to the bank and say I want to get here's $200 $300 five hundred thousand dollars and say I want to get a secured loan or I want to get a secured credit card right the way it works it is you give the bank your money they're gonna make you fill out some paperwork before you leave the bank that day they're gonna give you your money right back to you you're not gonna lose any money that day you don't lose a dollar by getting a secured loan a secured credit card but what happens is they give you your money back the same one you gave them they write you a check for from the bank as a loan or they give you a credit card with your name on it as a debit card or credit card secure credit card not even devis if you're a credit card so now by going to bank with a few hundred dollars with no credit you can walk out now with the credit limit either by way of loan or credit card so this is the fast track I did this I went to at the time was Commerce Bank turn on TD Bank I went in with $1,000 and I got a secured loan I'm probably 2002 or 3 then I went into Bank of America with 2,600 ollars I remember this like the back ends I did it and I got secured credit card Visa logo my name 2600 limit now what the bank does is they put your money in a CD so not only did you get are you building credit but the money you gave the bank they put it in a CD bearing interest so now that thousand dollars at the bank loan me I paid them back over a year and when I was finished paying them back they gave me my original money back plus interest from the CD so I actually made money on the money that I gave to build my credit I killed two birds in one stone this is the easy way for you not to lose any money we know money's tight these days you don't lose any money but you start to establish credit easy everyone here because our building credits are building their FICO making payments over time so now I'm gonna tell you the trick to using your credit card or the trick the pan back alone the right way there's a very simple rule and we'll just call this how to pay on credit so people will tell you you know debt-to-income ratio 45% 30% you know this that very easy this is a very easy rule high school kids remember it this is how you properly use a credit card or secured loan again this is not me just telling you for the sake of telling you because it's rules this is me showing you the blueprint to become a millionaire it all leads up to something right it's like it's as if there's a peak at the end so your front you're following these these tips and these rules also get to an end result and that's what we're gonna get to is the end result so we'll recap and if so many people just came in and so everybody's hopefully you're taking notes so you're gonna need this this it okay that's not it okay so we talked about in our millionaire blueprint you're gonna have to have credit to be successful in America we've run off credit everything most the government runs off Fred uh Bo China like a freakin trillion dollars literally more all right everything runs off credit soon that you have to have credit in order to work in society credit is the ability to make payments over time it means how you show someone you can make payments over time period and we just talked about how credit is views when it comes to mortgages and homes and land which is the one of the biggest assets of all wealthy Americans and that's having a strong FICO score or middle credit score your middle credit score is a score between your highest and lowest doesn't mean does it matter how it gets printed out when your credit report when you go to annualcreditreport.com or euler your mortgage company makes no difference house print it out you take your highest score which is seven hundred here your lowest score which is 620 you're left with your middle which is 680 or middle score is your FICO score right that matters then we talk about how can you establish credit how can you build credit whose small credit cards go to Macy's go to Best Buy girls go to Victoria's Secret guy who a victorious you could get your girl something whatever you want to do slow limit credit cards small loans or secured credit cards or secure loans guaranteed way to build credit all you guys would be in a game then we go well how do you pay on credit how do you use this properly and it's very simple as my it's my rule what I call divide by three that's it five by three does I use a credit card you take the maximum limit of your credit card you divide it by three right so if you have a 300 max on your credit card and you divide by three what do we got right that's your new maximum don't go over that that's all we have a three thousand dollar credit card limit you divide by three what do you got that's it that's your max limit don't go over that if you divide by three on your credit cards I matter how broke you are how much you need gas maybe use it and pay it all that you pay that off quickly but if you do keep your credit card maximum limit a third to your balance which is basically a dividing by three you divide your max limit right so you take your max credit card limit and divide it by three and make a new maximum for yourself if you do this and make payments over time you have rocking and rolling your FICO is gonna jump your stock is gonna jump your value two banks and lenders is gonna be phenomenal because now you showed them not only could I make payments over time I can keep my balance is steady I'm not all over the place max and everything else I'm stable right you divide by three create new maximum for yourself make payments over time and now you're in a position to start busting moves millionaire moves alright there are any questions at this point yes sir if you don't have a limit America stress car then you don't need any of this information if you don't have a limit that means you're the man yes sir what it is is that you don't want to exceed this maximum limit so I don't care what you pay per month fifty twenty hundred whatever you do per month just don't exceed 1/3 of your maximum limit yes ma'am that's cool you can do that you're flirting with fire though if you don't exceed it you'll have to worry about paying it off right because it what if you max it out you think gonna pay it off to something else happens a car breaks down yeah maxed out credit cards didn't hurt your FICO score if you pay it off you'll be fine but then you want to keep it at a third so if you max out again to pay it off your next out again in Fayette off you haven't maintained a third of your balance cuz now you get back to the point of well I said in the beginning now if you're here is that pewds to the bank you have disposable cash it's not what they're looking for a lot of people have cash right so if you just match something off and to pay it off all you're saying is yeah I got cash laying around daddy got a big checkbook I work at a bartender I get good cash money to pay this off it doesn't make a big feel comfortable what makes me feel comfortable is steady right that's why it's the ability to make payments over time it's over a time period is it is very viewed a profile over a time period and that's something where you get stronger FICO scores not saying you have bad credit if you do that we're talking much trying out the strongest credit possible so that's like it's like slow and steady wins the race I stay at a third of my balances I'm a payments over time yes what do you mean right that's not that's not a down boat student loans is a little different and interview differently by credit bureaus nothing to have deferments and I mean it's just a whole different different animal but we're talking about is its merchant credit right loans and credit cards this is the stuff that people everybody in the world virtually has student loans but they want to see when you're talking about car loan so you're something more credit cohorts when you're talking about private loans how you how you handle those no one expects you to take your sixty thousand school student loan and then just all of a sudden divided by three all right no was inspecting that but all your other credit if you're maintaining that properly you'll maintain strong cycles did I answer your question or mine yeah little bit anybody else before we go on all right cool so yes sir now it really makes no difference if you want to pay a minimal payment every month paid in a minimal payment that's ok as long as you're not over a third of your balance it makes no difference keep this ratio at 1/3 and do whatever you want to do within it whatever you want to do we're gonna be late obviously right guess I'll just divide by 3 and do whatever you want with the net that's their SS playtime and you don't believe you have strong

Channel: Mr Jay Morrison

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Id: OVdt6jzl37k

Length: 25min 41sec (1541 seconds)

Published: Thu Jun 06 2013