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How To Boost Your Credit Score FAST: 5 Proven Strategies Revealed with Shonda Martin · Earn Your Leisure

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  Speaker 2: Sure, so we're back another great live ahead. We're gonna
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  Speaker 2: be going or how to improve your credit pretty straightforward
• 2:28
  Speaker 2: as fast as possible. And that's something that obviously is
• 2:32
  Speaker 2: vitally important in life. You know a lot of people
• 2:36
  Speaker 2: might have made a bad decision here and there just
• 2:37
  Speaker 2: got caught up. They didn't realized that they paid a
• 2:39
  Speaker 2: bill too late. And you know, I want to buy
• 2:42
  Speaker 2: a home now, or want to get a car, or
• 2:44
  Speaker 2: do a variety of different things in your credit score
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  Speaker 2: is stopping you or slowing down the process. So improving
• 2:51
  Speaker 2: your credit score is something that's very, very very beneficial help.
• 2:55
  Speaker 2: So we're going to bring our guests on in a minute.
• 2:58
  Speaker 2: John the Martin, somebody that's she's been an investments, she's
• 3:01
  Speaker 2: done episodes, she's done events with us when we was
• 3:05
  Speaker 2: in Oakland Chase, so expert in the field of somebody
• 3:09
  Speaker 2: that's just been like a really good communicator as far
• 3:12
  Speaker 2: as helping people and teaching people like you know, no gimmicks, no,
• 3:16
  Speaker 2: you know, strings attached, just like real information. That's important,
• 3:20
  Speaker 2: especially in this space. A lot of times just you
• 3:22
  Speaker 2: know a lot of strings attached when it comes to
• 3:25
  Speaker 2: the credit situation. But this is straightforward, so we're going
• 3:29
  Speaker 2: to be getting into it. But before we do it.
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  Speaker 1: many as possible. We appreciate the love. But we got
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  Speaker 1: where do I start? Where do I start? My new
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  Speaker 1: ands aer going forward is you Deserve to Be Rich.
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• 4:40
  Speaker 2: Yes, sir, all right, So now we're going to bring
• 4:43
  Speaker 2: our guest up.
• 4:45
  Speaker 1: Let's do it. Let's do it. Let's do it. Hey hey, hey, hey, hey,
• 4:51
  Speaker 1: it's not what's going on. How you feeling.
• 4:53
  Speaker 3: I'm good, I'm excited. I'm excited. Man, Listen. I love
• 4:56
  Speaker 3: talking about credit. I love teaching people how to, you know,
• 5:00
  Speaker 3: improve their credit score. So I'm in seventh heaven right now,
• 5:02
  Speaker 3: like I'm ready.
• 5:04
  Speaker 1: Yeah, our audience loves every time you are on the platform.
• 5:07
  Speaker 1: You notice a pattern here, These numbers go crazy because
• 5:10
  Speaker 1: every credit is something that we don't know a lot
• 5:12
  Speaker 1: of information about, but we definitely need it. If we
• 5:16
  Speaker 1: have it, we definitely need to improve it or find
• 5:18
  Speaker 1: ways to improve it and update ourselves on it because
• 5:20
  Speaker 1: information changes. Information changes from the year the year. So
• 5:25
  Speaker 1: I'm happy we have you.
• 5:27
  Speaker 3: Yes, No, I'm excited and shout out to yah audience
• 5:30
  Speaker 3: because I feel like they just get me.
• 5:32
  Speaker 4: They always show me love.
• 5:33
  Speaker 3: And yeah and and and their action takers like that's
• 5:37
  Speaker 3: my probably my favorite part about them. It's nothing better
• 5:41
  Speaker 3: than like providing information or resources and being able to
• 5:45
  Speaker 3: witness the person actually implementing those changes nothing better. So
• 5:50
  Speaker 3: I'm all for it.
• 5:52
  Speaker 1: That's a fact. That's a fact. So Okay, we're gonna
• 5:55
  Speaker 1: get into it. And we got a lot to talk about.
• 5:58
  Speaker 1: So I'll let you. I'll let you. I let you
• 6:00
  Speaker 1: kick it off.
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  Speaker 4: Okay.
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  Speaker 3: So first, I want to say that I was tasked
• 6:04
  Speaker 3: with probably the hardest, most simplest task ever, and that
• 6:10
  Speaker 3: was accumulate a list or a set.
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  Speaker 4: Of tips to help people boost their credit scores.
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  Speaker 3: Now, as an expert in the field, with all of
• 6:20
  Speaker 3: my experience, it should be like super easy, Like that
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  Speaker 3: question is like, sup, it should be super easy. But
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  Speaker 3: for me, questions like that always pose like the hardest,
• 6:31
  Speaker 3: Like it's always the hardest for me because I always
• 6:33
  Speaker 3: want to make sure that I am giving actionable advice
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  Speaker 3: that is not only practical, but it isn't like they
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  Speaker 3: can start implementing it immediately. And that's usually like that's
• 6:45
  Speaker 3: the lane that I like to take. And I wanted
• 6:48
  Speaker 3: to also approach this with like not not necessarily like
• 6:52
  Speaker 3: surface level information that like people can just go on
• 6:54
  Speaker 3: Google or have been hearing routinely, Like I wanted to
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  Speaker 3: really take take a look back at, like at all
• 7:02
  Speaker 3: of my most consistent strategies that just work and are
• 7:07
  Speaker 3: tried and true and that I'm willing to bet the
• 7:11
  Speaker 3: form on. And uh, I've been able to compile a list,
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  Speaker 3: a pretty extensive list of a very strategic, but actionable
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  Speaker 3: and specific key points that I want to focus on today.
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  Speaker 3: So again I'm excited. But like I said, it was hard, and.
• 7:27
  Speaker 1: That's why we appreciate you because your attention to detail.
• 7:31
  Speaker 1: But more importantly, you care about people and you care
• 7:33
  Speaker 1: about their results. And so again we're happy to have you. Man.
• 7:37
  Speaker 1: So where do we start? Where do you want to start?
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  Speaker 4: Where do we start? Okay, that's a loaded question.
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  Speaker 1: Now.
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  Speaker 3: When when it comes to credit scores, a lot of
• 7:49
  Speaker 3: times people are often only focused on like the numerical
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  Speaker 3: value of their score, like their credit score. I want
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  Speaker 3: to get a seven hundred credit score. I want to
• 7:56
  Speaker 3: get a eight hundred credit score. Is usually like the
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  Speaker 3: request that I that I received daily. But I'm a big, big,
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  Speaker 3: big believer of focusing on your credit profile strengthening that
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  Speaker 3: it does more for not only your credit score, but
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  Speaker 3: your borrowing power overall and your entire credit standing. So
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  Speaker 3: every time that I approach advising someone on how to
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  Speaker 3: repair or improve their credit score. It is never solely
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  Speaker 3: based on points. So I just wanted to say that first.
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  Speaker 3: And also in order for anything that I'm going to
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  Speaker 3: say to make sense, you have to the uh, the
• 8:35
  Speaker 3: audience has to be willing to unlearn certain certain things
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  Speaker 3: that we've been accustomed to when it comes to like
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  Speaker 3: the credit game, that are just flat out wrong, right,
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  Speaker 3: And so yes, I wanted to first give that disclaimer
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  Speaker 3: before we kind of get into these tips.
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  Speaker 4: And uh, if.
• 8:52
  Speaker 3: You guys are ready, I can, I can already, I
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  Speaker 3: can start with with I'll start with the most effective
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  Speaker 3: one or the or the or the one that will
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  Speaker 3: cause the most emailia boost.
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  Speaker 1: Let's get it going. Let's do it all right.
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  Speaker 3: So my first, my number one non conventional tip that
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  Speaker 3: I would recommend for a person seeking to boost their
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  Speaker 3: credit rating is to number one, target the late payments.
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  Speaker 3: The reason why you want to target the late payments
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  Speaker 3: anytime you are trying to improve your credit score is
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  Speaker 3: because of the impact that the payment history has on
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  Speaker 3: our credit scores because it's the largest factor. It's responsible
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  Speaker 3: for thirty five percent of our credit score. Also, it
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  Speaker 3: holds over one hundred and ninety two point five points
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  Speaker 3: so we want to get as many of those points
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  Speaker 3: as possible in order to reach a high credit score.
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  Speaker 3: So with that being said, the first thing that everyone
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  Speaker 3: needs to evaluate on their credit report when they're seeking
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  Speaker 3: immediate change in their credit score is trying to reverse
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  Speaker 3: the impact of the late payments that they have on
• 9:53
  Speaker 3: their credit report.
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  Speaker 4: This happens only one way.
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  Speaker 3: Number So, the way that they will do that is
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  Speaker 3: because late payments are the number one reason people will
• 10:05
  Speaker 3: lose fifty to one hundred points per instant sometimes, and
• 10:08
  Speaker 3: like I said, because it's the largest factor, the only
• 10:11
  Speaker 3: way to undo that impact or neutralize the effects is
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  Speaker 3: to flood their reports with on time payments. How to
• 10:18
  Speaker 3: do that, It's very It's easy if you think of
• 10:22
  Speaker 3: it from this lens. Think of I call it the
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  Speaker 3: eleven to one rule.
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  Speaker 4: Right.
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  Speaker 3: So what that means is for every single late payment
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  Speaker 3: that is reporting on their credit report within the last
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  Speaker 3: three years, they're going to need eleven one time payments
• 10:37
  Speaker 3: to neutralize that negative impact on their score. How do
• 10:41
  Speaker 3: they get that. You can do it by multiple ways.
• 10:44
  Speaker 3: Number One, you can allow time to pass. You know,
• 10:48
  Speaker 3: that's about a year. Eleven months is about a year
• 10:51
  Speaker 3: before most late payments will neutralize. But being super super
• 10:58
  Speaker 3: strategic and intentional about making sure that they are trying
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  Speaker 3: to cancel out the late payments within the last three
• 11:04
  Speaker 3: years by specifically making sure that they have accounts that
• 11:07
  Speaker 3: are currently reporting every single month to every single credit
• 11:10
  Speaker 3: bureaus in on time payment and it has to be
• 11:14
  Speaker 3: within that same category. So what that means is like,
• 11:16
  Speaker 3: if they have two lay payments on a credit card
• 11:18
  Speaker 3: within the last two years, then their goal is for
• 11:22
  Speaker 3: the next eleven months is to get twenty two what
• 11:25
  Speaker 3: is it twenty two on time payments reported within a
• 11:29
  Speaker 3: credit card account? Right, it doesn't have to be the
• 11:32
  Speaker 3: same account, it just has to be the same type.
• 11:33
  Speaker 4: Does that make sense.
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  Speaker 1: I'm with you. I'm with you, Okay.
• 11:39
  Speaker 3: Then the next thing that they would do to target
• 11:41
  Speaker 3: late payments on a credit report is to request a
• 11:43
  Speaker 3: good will adjustment from their lender. Right now, there are
• 11:46
  Speaker 3: going to be some payments that they will struggle with
• 11:50
  Speaker 3: getting removed or some payments that they probably will not
• 11:54
  Speaker 3: be able to amass enough on time payments in a
• 11:58
  Speaker 3: timely fashion, depending on how many that they have. So
• 12:01
  Speaker 3: my rule of thumb is for any accounts that is
• 12:04
  Speaker 3: still open, So it's still reporting. You still have a
• 12:06
  Speaker 3: standing relationship with the creditor, you would you should always
• 12:10
  Speaker 3: request a good will adjustment from them. And that's simply
• 12:14
  Speaker 3: just going to the creditor saying, hey, I made a mistake.
• 12:15
  Speaker 3: You know I was late. I'm not denying it. Things
• 12:19
  Speaker 3: came up, things happened, I learned. Will you are you
• 12:22
  Speaker 3: willing to erase that late payment record from my credit report?
• 12:27
  Speaker 3: And that's called a good will adjustment. Now, a lot
• 12:29
  Speaker 3: of lenders will will will grant this. Capital one is
• 12:34
  Speaker 3: one company. Credit one is one company that that are
• 12:37
  Speaker 3: not that is notorious for accepting and honoring good real recrests. Right,
• 12:42
  Speaker 3: So yes, if you have Capital one, you have Credit Won,
• 12:45
  Speaker 3: or any bank that you have, make sure you are
• 12:47
  Speaker 3: mailing a good will request ladder to the creditor to
• 12:52
  Speaker 3: ask for a good will adjustment for every single late
• 12:54
  Speaker 3: payment within the.
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  Speaker 4: Last three years.
• 12:56
  Speaker 1: Right.
• 12:57
  Speaker 3: So that's that's that's sort of like the first tip
• 13:00
  Speaker 3: all in one was it was two tips all on one,
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  Speaker 3: which is to target your the lay payments within the
• 13:06
  Speaker 3: last three years and trying to erase as many of
• 13:09
  Speaker 3: those as possible.
• 13:10
  Speaker 1: So the good will adjustment, this is a one time
• 13:13
  Speaker 1: letter that can knock out a few payments, right, So
• 13:16
  Speaker 1: this is not like I was late once? Can you
• 13:17
  Speaker 1: forgive me once? I might have been late four times
• 13:21
  Speaker 1: in twenty twenty four. I'm sending this letter on behalf
• 13:23
  Speaker 1: of twenty twenty four for this adjustment? Can you forgive
• 13:26
  Speaker 1: all four exact? Correct?
• 13:29
  Speaker 4: Yeah, you are correct, So you can ask.
• 13:31
  Speaker 3: You can technically ask for any amount right now, Keep
• 13:36
  Speaker 3: in mind, granting a good will letter is up to
• 13:38
  Speaker 3: the company. Is at their you know, they can decide
• 13:41
  Speaker 3: to obviously deny it, and it is based on like
• 13:45
  Speaker 3: the history that you are building with them, so they
• 13:48
  Speaker 3: can say no. However, I want to if you guys
• 13:52
  Speaker 3: on mind, I want to show an example of a
• 13:55
  Speaker 3: template that they can use to send. All they have
• 13:57
  Speaker 3: to do is plug and play their information and send
• 13:59
  Speaker 3: it to their creditor. And so let me share that
• 14:02
  Speaker 3: really quick. And it's just a good letter to have
• 14:06
  Speaker 3: just in in your fiul just in case, you know.
• 14:10
  Speaker 4: So, are you guys able to see that clearly?
• 14:13
  Speaker 1: Yeah? Yeah, we got it?
• 14:14
  Speaker 4: Okay?
• 14:15
  Speaker 1: Good?
• 14:15
  Speaker 3: So yes, So this is an example of a perfect
• 14:18
  Speaker 3: formatted goodwill template.
• 14:22
  Speaker 5: Right.
• 14:22
  Speaker 3: All they would do is obviously the red writing they
• 14:25
  Speaker 3: would replace it with their information and then send it
• 14:27
  Speaker 3: via mail, either send it via mail with only one
• 14:32
  Speaker 3: exception if they have access to the CEO's email address,
• 14:37
  Speaker 3: which is a hugely slept on method of of good
• 14:41
  Speaker 3: will adjustments. That burns me that people don't utilize that method, however, Yeah,
• 14:47
  Speaker 3: so just send a good will letter, send it in
• 14:49
  Speaker 3: a mail, or if you have access to the executive
• 14:52
  Speaker 3: or ceo CEO's email address, then just send it directly
• 14:55
  Speaker 3: to the to the email.
• 14:57
  Speaker 4: And yeah, so you would do that for each like
• 14:59
  Speaker 4: payment you can.
• 15:00
  Speaker 3: You can if you have seven lay payments, you can
• 15:02
  Speaker 3: literally fill out seven of these or if they're with
• 15:05
  Speaker 3: the same if they're on the same account, of course,
• 15:07
  Speaker 3: then you could just list them all out. You want
• 15:11
  Speaker 3: to specifically focus on the lay payments within the last
• 15:14
  Speaker 3: three years because those are the ones that's like weighing
• 15:17
  Speaker 3: the heaviest on your score, affecting your barring power the most,
• 15:22
  Speaker 3: and really are like probably the reason why you're like
• 15:26
  Speaker 3: a person's score is just stagnant or you know, being
• 15:30
  Speaker 3: affected the most. So targeting lay payments within the last
• 15:33
  Speaker 3: three years is rule number one. That's gonna any lay payment,
• 15:38
  Speaker 3: any single instance of a lay payment that is removed,
• 15:41
  Speaker 3: that is forgiven, they stand to see an increase of
• 15:46
  Speaker 3: thirty to sixty points per lay payment. Like it's that
• 15:51
  Speaker 3: big of a deal. And as I stated, like you
• 15:54
  Speaker 3: would be so surprised to see how often the good
• 15:59
  Speaker 3: will request are granted. And also how effective the making
• 16:04
  Speaker 3: sure that you are flooding your credit report with on
• 16:06
  Speaker 3: time payments to neutralize.
• 16:09
  Speaker 4: Previous late payments.
• 16:10
  Speaker 3: How effective that method is in the night and day
• 16:14
  Speaker 3: difference that it makes on you know, within a person's
• 16:16
  Speaker 3: credit profile. So that's like rule number one, target lay
• 16:19
  Speaker 3: payments within the last three years.
• 16:21
  Speaker 1: So I got a second follow up, right, So I
• 16:24
  Speaker 1: got the goodwill adjustment letter right? But sometimes I might
• 16:27
  Speaker 1: have paid it and it registered as a late payment.
• 16:31
  Speaker 1: How do I dispute how do I try to get
• 16:34
  Speaker 1: that error off of the report right? Because sometimes it's
• 16:37
  Speaker 1: not my error, it might be on the lenders era.
• 16:41
  Speaker 3: So was it about way of a mistake, So you
• 16:44
  Speaker 3: were not late, but some somehow, some way they.
• 16:47
  Speaker 1: Reported you late or they reported me late, but it
• 16:49
  Speaker 1: really wasn't.
• 16:50
  Speaker 3: Oh well, if it was their fault, then that's you
• 16:53
  Speaker 3: definitely need to take that up with the company first,
• 16:55
  Speaker 3: like request that they send you a copy of your
• 16:59
  Speaker 3: record to your.
• 17:00
  Speaker 4: Payment record, or if you have proof that you paid this.
• 17:03
  Speaker 3: So like if you pay with your bank account or
• 17:05
  Speaker 3: credit card, and you have a record of you paying
• 17:07
  Speaker 3: off your credit card in a timely fashion, then you
• 17:10
  Speaker 3: can just go ahead and send the proof to the
• 17:11
  Speaker 3: credit bureaus letting them know that you know the company
• 17:15
  Speaker 3: is wrong. But if you don't have proof of it,
• 17:17
  Speaker 3: you are at the you are you're at the mercy
• 17:20
  Speaker 3: of them providing you their records, and you know you
• 17:24
  Speaker 3: are going against them, so they can definitely be like, well, no,
• 17:26
  Speaker 3: we don't have a record of it, you know. So
• 17:27
  Speaker 3: it's always best to obviously keep our own documentation because yeah,
• 17:32
  Speaker 3: they they're never on our side when we're up against them.
• 17:36
  Speaker 3: Document the process, gotch you keep keep everything, keep everything.
• 17:43
  Speaker 1: Okay, all right? So that would be the first step,
• 17:48
  Speaker 1: first step.
• 17:49
  Speaker 3: Yes, and then the next the next thing that I
• 17:55
  Speaker 3: would advise that would, like I said, make the most
• 17:58
  Speaker 3: immediate or biggest impact on one's credit score, it would be.
• 18:04
  Speaker 4: So I want to first frame this one.
• 18:07
  Speaker 3: The next tip is is is relating to credit utilization
• 18:12
  Speaker 3: as well. However it's in a different capacity. So what
• 18:15
  Speaker 3: I mean by that is like my second tip is.
• 18:18
  Speaker 4: To lower your lower.
• 18:22
  Speaker 3: Let me rephrase that lower your credit utilization before their
• 18:27
  Speaker 3: next statement day, right, and what that does? Or just
• 18:31
  Speaker 3: in general, learning how to properly pay your credit card,
• 18:35
  Speaker 3: learning how to pay your credit card in a way
• 18:38
  Speaker 3: that it maximizes your credit score and increases your borrowing
• 18:43
  Speaker 3: worthiness will always be something that, like I always say,
• 18:47
  Speaker 3: everyone that has a credit card needs to know how
• 18:49
  Speaker 3: to properly pay a credit card and needs to know
• 18:52
  Speaker 3: that there is a strategic way of.
• 18:54
  Speaker 4: Paying it that as to increasing your credit score.
• 18:58
  Speaker 3: In the stereo typical or the standard way that we
• 19:01
  Speaker 3: are paying our credit cards actually leaves about eighty points
• 19:05
  Speaker 3: on the table that most people can literally access within
• 19:08
  Speaker 3: thirty to sixty days by just reframing how they are
• 19:13
  Speaker 3: paying their credit cards.
• 19:16
  Speaker 4: And obviously I'll get into exactly how, but.
• 19:21
  Speaker 3: Let me put an example on the screen, give me
• 19:23
  Speaker 3: one moment just to make it make a little more sense.
• 19:25
  Speaker 3: But okay, now when it comes to when it comes
• 19:31
  Speaker 3: to paying off your credit card, the first the first
• 19:34
  Speaker 3: thing that I need everyone to evaluate for every single
• 19:37
  Speaker 3: credit card that they have is to identify these two
• 19:41
  Speaker 3: important dates. The first day is the first date I
• 19:45
  Speaker 3: want them to identify is their du date.
• 19:47
  Speaker 4: That's not.
• 19:49
  Speaker 3: Yeah, the first day I want them to identify as
• 19:51
  Speaker 3: their due date, it's not up yet. And then the
• 19:53
  Speaker 3: second date I want them to identify as their statement date.
• 19:55
  Speaker 3: And understanding the difference, the biggest difference between these two
• 19:59
  Speaker 3: dates makes the biggest difference in your credit score, because
• 20:02
  Speaker 3: your statement date is the dates that will determine how
• 20:07
  Speaker 3: many credit points you are getting as a result of
• 20:10
  Speaker 3: your credit utilization. And then your due date only matters
• 20:14
  Speaker 3: to your bank. It does not affect your credit score,
• 20:16
  Speaker 3: It does not affect how your credit cards are reporting,
• 20:20
  Speaker 3: So that that is not the date that is important.
• 20:25
  Speaker 3: The date that is important is your statement date, right,
• 20:28
  Speaker 3: and that it's so important to the fact that, like,
• 20:31
  Speaker 3: if you are not ensuring that your balance is below
• 20:35
  Speaker 3: ten percent of your credit limit at least two to
• 20:38
  Speaker 3: three days prior to your statement date, then you are
• 20:43
  Speaker 3: leaving a wealth of points on the floor. You are
• 20:45
  Speaker 3: leaving a wealth of points just sitting there, and you
• 20:49
  Speaker 3: are not being credited for really having that credit card. Right,
• 20:56
  Speaker 3: So I can either go through how I typically pay
• 20:59
  Speaker 3: my credit cards or if you guys have like a
• 21:01
  Speaker 3: specific question in regards to like the differences of it.
• 21:05
  Speaker 2: I can you know if you go through how you
• 21:07
  Speaker 2: do it, that would be helpful for sure.
• 21:11
  Speaker 3: Okay, cool, Now what I do is there's two going
• 21:16
  Speaker 3: to rules that I have from my credit cards. Is
• 21:18
  Speaker 3: I have I have a rule that by my due date,
• 21:22
  Speaker 3: I make sure that my balance is zeroed.
• 21:24
  Speaker 4: So I zero out my credit card by my due date.
• 21:29
  Speaker 3: And that's simply because I want to avoid paying interest. Right,
• 21:32
  Speaker 3: So that's just that's a personal form for me. I
• 21:34
  Speaker 3: don't like paying unnecessary fees, right. However, that doesn't help
• 21:39
  Speaker 3: my credit when it specifically comes to my credit report.
• 21:42
  Speaker 3: I also I also make sure that three days prior
• 21:46
  Speaker 3: to my statement date in every billing cycle, so every
• 21:48
  Speaker 3: month that I have reduced my balance down to ten
• 21:52
  Speaker 3: or reduce my balance down to under ten percent. And
• 21:56
  Speaker 3: that way I can ensure that the balance is being
• 21:59
  Speaker 3: reported to the credit bureaus is favorable. And also it
• 22:04
  Speaker 3: is it is it is showing that I am a
• 22:06
  Speaker 3: responsible borrower. I not only use my credit card, but
• 22:09
  Speaker 3: I can be trusted to pay it back, right, That's
• 22:13
  Speaker 3: super important. Most people are usually under the guys that
• 22:16
  Speaker 3: as long as they pay their credit cards by their
• 22:18
  Speaker 3: due date, then they're good, right, And also or or
• 22:22
  Speaker 3: the other thing that I see is a person would
• 22:26
  Speaker 3: zero out their their credit cards on their due date
• 22:29
  Speaker 3: and then not necessarily have any any inclination that how
• 22:35
  Speaker 3: important their statement date is. So they don't they don't
• 22:37
  Speaker 3: even they they don't even care what their balance is
• 22:39
  Speaker 3: on their statement day because they're unaware that that payment
• 22:42
  Speaker 3: that they made on their due date is not being
• 22:44
  Speaker 3: credited for their and used as their utilization, like I think.
• 22:49
  Speaker 3: So that's that's pretty much like the the Golden rule
• 22:53
  Speaker 3: with credit cards. You just have to make sure that
• 22:55
  Speaker 3: your statement date is being priority tized, prioritized, like you
• 23:01
  Speaker 3: have to make sure you are prioritizing the balance that
• 23:05
  Speaker 3: your credit card is reporting on your statement day. And
• 23:07
  Speaker 3: I always say, if you don't, if you don't know
• 23:11
  Speaker 3: or understand this, look at your most recent credit card statement.
• 23:15
  Speaker 3: Right on your credit card statement, you will have what's
• 23:17
  Speaker 3: called a statement balance that's required for every credit card statement,
• 23:21
  Speaker 3: your statement balance, that is your utilization that was reported
• 23:26
  Speaker 3: to the credit bureaus from that bank the month prior. Right,
• 23:29
  Speaker 3: So anytime you ever wonder what your utilization is, all
• 23:33
  Speaker 3: you have to do is look at your most recent
• 23:35
  Speaker 3: credit card statement because your statement balance is your utilization.
• 23:39
  Speaker 3: That statement balance is important because that's the key to
• 23:41
  Speaker 3: unlocking as many points as possible within the credit utilization
• 23:47
  Speaker 3: category right, which lends to one hundred and sixty five points.
• 23:50
  Speaker 3: So we need all of those points, was as many
• 23:53
  Speaker 3: of them as possible, And the only way that you
• 23:55
  Speaker 3: will have access to majority of those points is if
• 23:59
  Speaker 3: you are strategically paying your credit card based on your
• 24:04
  Speaker 3: statement date. And obviously keeping a low utilization low is
• 24:09
  Speaker 3: not thirty percent. Low is not anything other than what's
• 24:14
  Speaker 3: considered good and low to lenders. Is literally between one
• 24:18
  Speaker 3: and nine percent. That is like the prisine range, the
• 24:21
  Speaker 3: most optimal range. That is the range that if you
• 24:25
  Speaker 3: are wanting or seeking to improve.
• 24:27
  Speaker 4: Your credit score.
• 24:28
  Speaker 3: If you if you are reporting anything above nine percent
• 24:31
  Speaker 3: repeatedly on your credit on your as your credit.
• 24:35
  Speaker 4: Utilization, then you.
• 24:37
  Speaker 3: You are not going to increase your credit card like
• 24:39
  Speaker 3: it's just you are.
• 24:40
  Speaker 4: You don't you don't.
• 24:41
  Speaker 3: Want to increase your credit score because it just won't happen.
• 24:45
  Speaker 1: Now.
• 24:45
  Speaker 3: You may get a few points here and there, However,
• 24:47
  Speaker 3: if you want to see a real change in your
• 24:49
  Speaker 3: credit score, making sure that you are reporting between one
• 24:53
  Speaker 3: and nine percent by your statement date for every credit card.
• 24:57
  Speaker 3: That's what's going to unlock like that next level of
• 25:01
  Speaker 3: credit for any any literally any profile.
• 25:06
  Speaker 1: This is that pretty tricky, right because again, and I
• 25:09
  Speaker 1: like what you said there between one to nine percent.
• 25:11
  Speaker 1: You didn't say zero percent, right, So most people that
• 25:15
  Speaker 1: will just say I'm gonna use my credit card, I'm
• 25:16
  Speaker 1: gonna pay it off. Right, I'm gonna use my credit card,
• 25:19
  Speaker 1: I'm gonna pay the whole thing off. Probably not the
• 25:21
  Speaker 1: best method if you're trying to increase your credit score,
• 25:23
  Speaker 1: because it doesn't really show there's a payment history, right.
• 25:26
  Speaker 1: They actually want you to have some leftover right between
• 25:29
  Speaker 1: that one to nine percent, so that you can continuously
• 25:32
  Speaker 1: pay all pay them every month. Right. Paying off the
• 25:36
  Speaker 1: balance every month is not the best solution people, it's
• 25:39
  Speaker 1: like confusing, what's your thoughts around that?
• 25:42
  Speaker 4: Oh, no, you were spot on.
• 25:44
  Speaker 3: You were certainly spot on, because yeah, that is a
• 25:46
  Speaker 3: common misconception that people have when it comes to credit cards.
• 25:49
  Speaker 3: Is like reporting a zero dollar balance is good or
• 25:53
  Speaker 3: Linda would like prefer that, and nothing can be further
• 25:57
  Speaker 3: from the truth. In fact, I'll show you a visual
• 26:01
  Speaker 3: to make it easier for someone to like understand how
• 26:05
  Speaker 3: lenders view credit credit credit utilization ratios like they're super important,
• 26:12
  Speaker 3: and like I said, it's this is probably the number
• 26:15
  Speaker 3: one thing that affects barring power in terms of like
• 26:18
  Speaker 3: credit card limits. Uh, the interest rates that that that
• 26:22
  Speaker 3: one will receive when they're applying for anything. So if
• 26:25
  Speaker 3: you if you're a person that finds yourself only being
• 26:28
  Speaker 3: approved for up to a certain amount or never being
• 26:31
  Speaker 3: able to cross a certain threshold or or or tier
• 26:34
  Speaker 3: when it comes to borrowing, it's usually probably because of
• 26:37
  Speaker 3: your your your utilization. I'm pulling up that chart right.
• 26:43
  Speaker 2: Now, and for the while you're doing that, Like the
• 26:48
  Speaker 2: statement date, Can a statement date just be the same
• 26:51
  Speaker 2: day as your stayment date.
• 26:54
  Speaker 4: As the do date? No, so they they're they're different.
• 26:56
  Speaker 1: Your saming day is can you make it the same day?
• 27:00
  Speaker 4: Oh? Actually some banks will allow you. So it's it's.
• 27:03
  Speaker 3: Up to the bank, and some banks will will refuse it.
• 27:07
  Speaker 3: But like, honestly a lot of banks will allow you
• 27:09
  Speaker 3: because they want your they want your dates to be
• 27:13
  Speaker 3: to make sense for you. They want whatever's best for
• 27:15
  Speaker 3: you to pay them back. They are usually willing to
• 27:18
  Speaker 3: like accommodate that request. So I asks and also that
• 27:22
  Speaker 3: brings me to another point. If your credit card statement
• 27:25
  Speaker 3: date or your due date is during the time of
• 27:28
  Speaker 3: the month where like you don't you don't typically have
• 27:30
  Speaker 3: extra finances. If it's right after you have to pay
• 27:33
  Speaker 3: like a large bill like rent or something like that,
• 27:36
  Speaker 3: you are able to request for your your dates, to
• 27:39
  Speaker 3: change your payment dates to change on your credit cards.
• 27:42
  Speaker 3: Do what is best for you, Do what is do
• 27:44
  Speaker 3: what will help you to actually pay the pay the bill,
• 27:49
  Speaker 3: you know, Like, so, yeah, I'm glad you brought that
• 27:52
  Speaker 3: point up.
• 27:53
  Speaker 1: Yeah, if you ever had an American Express, you you
• 27:55
  Speaker 1: definitely are familiar with that like that, and that takes
• 27:59
  Speaker 1: a while to even figure out. Like what the statement
• 28:01
  Speaker 1: dates are is between the twenty fifth to the twenty fourth,
• 28:04
  Speaker 1: and then the do date. Obviously you know you can
• 28:06
  Speaker 1: change it if it's mid month, Like you said, a
• 28:08
  Speaker 1: lot of people get paid by weekly, some people get
• 28:10
  Speaker 1: paid monthly. Having the fifteenth that offset and day gives
• 28:13
  Speaker 1: you some time, or the sixteenth, it gives you some
• 28:15
  Speaker 1: time to get that money into the account. But yet
• 28:17
  Speaker 1: they are two different things. Man, I'm glad you brought
• 28:20
  Speaker 1: that up.
• 28:20
  Speaker 3: Very important different things they are, and I'm showing a screenshot.
• 28:25
  Speaker 3: Let me know when you guys can see it. Key,
• 28:29
  Speaker 3: are you able to see that?
• 28:31
  Speaker 1: Yep, we got it?
• 28:32
  Speaker 4: Okay, perfect? So this is this is just a quick.
• 28:36
  Speaker 3: Key, a quick reference point that everyone needs to remember
• 28:39
  Speaker 3: when it comes to paying your credit carding and understanding
• 28:42
  Speaker 3: utilization tiers and how they impact our credit scores. Now,
• 28:46
  Speaker 3: your credit utilization will affect both your credit score as
• 28:49
  Speaker 3: well as your bar and power. Like I said, it
• 28:52
  Speaker 3: affects pretty much everything with credit, so it's super important
• 28:56
  Speaker 3: that you understand it. Reporting the wrong utilization can cause
• 29:02
  Speaker 3: forty plus points. And when I say wrong utilization, I
• 29:06
  Speaker 3: want to stress how the wrong utilization is quite literally
• 29:10
  Speaker 3: what we are taught.
• 29:12
  Speaker 4: So it's it's it's the normal advice.
• 29:15
  Speaker 3: So majority of consumers are following the wrong utilization advice.
• 29:21
  Speaker 3: And that's the industry standard of making sure that you
• 29:25
  Speaker 3: report thirty percent of your credit or thirty percent of
• 29:28
  Speaker 3: your credit utilization or making sure that you stay under
• 29:30
  Speaker 3: thirty percent and you are fine.
• 29:33
  Speaker 4: No, if you look.
• 29:34
  Speaker 3: On this list, you would notice that thirty percent is red,
• 29:37
  Speaker 3: thirty percent is considered risky.
• 29:41
  Speaker 4: Right.
• 29:43
  Speaker 3: The next tip will go a little more into detail
• 29:46
  Speaker 3: about utilization specifically, but I cannot stress how important it is. If,
• 29:52
  Speaker 3: like I said, I keep on saying, if you are
• 29:53
  Speaker 3: a person that is.
• 29:54
  Speaker 4: Seeking to improve.
• 29:55
  Speaker 3: Your credit, then do not go do not go past
• 30:00
  Speaker 3: nine percent. Don't go past this second level if you want,
• 30:04
  Speaker 3: if you want to actually see a difference in your
• 30:06
  Speaker 3: credit profile, just just stop right there, because anything above
• 30:12
  Speaker 3: that then you are losing points.
• 30:13
  Speaker 4: You are losing points.
• 30:14
  Speaker 3: You're not maximizing the points that you are receiving for
• 30:18
  Speaker 3: your credit utilization.
• 30:19
  Speaker 4: You're just leaving points on the table.
• 30:21
  Speaker 3: Right, So this is this is just kind of like
• 30:23
  Speaker 3: my standard advice when it comes to.
• 30:28
  Speaker 4: The tiers, right, yeah.
• 30:29
  Speaker 1: Shot, quick question because and there might be some people
• 30:32
  Speaker 1: who are not even familiar with don't know their credit
• 30:34
  Speaker 1: score number one, not knowing that they can access access
• 30:37
  Speaker 1: to it for free. But number two, what is the
• 30:39
  Speaker 1: range now? Right? Because I remember eight hundred was the
• 30:42
  Speaker 1: max score. It's eight fifty out of max score, like
• 30:45
  Speaker 1: that's being the highest. This is really a trust system, right,
• 30:48
  Speaker 1: how much the banks trust you will determine how how
• 30:51
  Speaker 1: your score is. What's the range that that it falls into? Now?
• 30:54
  Speaker 3: Oh yeah, so credit scores range between three hundred, which
• 30:57
  Speaker 3: is the lowest in eight hundred and fifty. The reason
• 31:00
  Speaker 3: why it's eight hundred and fifty is because like the
• 31:02
  Speaker 3: most the most widely accepted version of our fight Goal
• 31:05
  Speaker 3: scores goes off that eight fifty, so we kind of
• 31:09
  Speaker 3: just you know, accept it as like the standard. So yeah,
• 31:12
  Speaker 3: so between three hundred and eight fifty, can't go below
• 31:15
  Speaker 3: three hundred, can't surpass a fifty, So we were giving
• 31:19
  Speaker 3: three hundred points. So it doesn't matter how bad your
• 31:21
  Speaker 3: credit report is or your credit how many collections you have,
• 31:25
  Speaker 3: you cannot go under three hundred credit points, right, So
• 31:30
  Speaker 3: the goal, the entire point and goal of maintaining or
• 31:34
  Speaker 3: obtaining good credit is seeking to get as close to
• 31:37
  Speaker 3: eight fifty as possible, which math wise, that's just the
• 31:43
  Speaker 3: difference between three hundred and eight hundred and fifty is
• 31:45
  Speaker 3: just five hundred and fifty points, right, So, if you
• 31:48
  Speaker 3: think of credit, if you think about if we think
• 31:50
  Speaker 3: of our credit scores in that capacity where you you
• 31:53
  Speaker 3: you realize that there there are five hundred and fifty
• 31:55
  Speaker 3: points that you could potentially get. Right in, those five
• 31:59
  Speaker 3: hundred and fifty points are broken down into five separate categories,
• 32:04
  Speaker 3: which is payment history. Payment history is takes up one
• 32:09
  Speaker 3: hundred and ninety two point five of those. Of those
• 32:12
  Speaker 3: five hundred and fifty points, credit utilization takes up one
• 32:15
  Speaker 3: hundred and sixty five, credit age takes up eighty two
• 32:18
  Speaker 3: point five, and then credit mix and hard increase both take.
• 32:23
  Speaker 4: Up fifty five each.
• 32:24
  Speaker 3: So if you add each of those categories together, it'll
• 32:26
  Speaker 3: equal five hundred and fifty points. Right, And in order
• 32:29
  Speaker 3: to get a perfect credit score, you would have to
• 32:32
  Speaker 3: have a perfect credit report and not have any derogatories
• 32:35
  Speaker 3: or be missing any of those points. There's no reason
• 32:39
  Speaker 3: to aim for a fifty credit score anyway, but that
• 32:43
  Speaker 3: is the highest possibility now. I always, when it comes
• 32:48
  Speaker 3: to boosting credit scores and increasing your credit scores, I
• 32:51
  Speaker 3: mainly focus on the top two categories, which is payment
• 32:54
  Speaker 3: history and credit utilization, because just.
• 32:57
  Speaker 4: Mathematically, if you are doing.
• 33:02
  Speaker 3: Even moderately good, and when I say moderately, I'm I'm
• 33:05
  Speaker 3: talking let's just say, for example, sixty or seventy to
• 33:09
  Speaker 3: seventy five percent doing good in those areas and getting
• 33:14
  Speaker 3: about you know, seventy five percent of those available points,
• 33:17
  Speaker 3: then the lowest that your credit score can even reach
• 33:20
  Speaker 3: is a six's eighty, right, And in case, in case,
• 33:25
  Speaker 3: someone is not familiar with how credit score ranges are graded.
• 33:29
  Speaker 3: A six eighty is the lowest possible score to be
• 33:32
  Speaker 3: considered to have good credit, right, So that's like the
• 33:35
  Speaker 3: floor of what's considered a good credit profile or a
• 33:39
  Speaker 3: good credit score. And I want to stress that. I
• 33:42
  Speaker 3: want to stress that point because I always tell people
• 33:46
  Speaker 3: that if you do not have at least a six
• 33:47
  Speaker 3: to eighty credit score, then there is something very wrong
• 33:51
  Speaker 3: within your payment history or your credit utilization. It needs
• 33:54
  Speaker 3: to be addressed immediately because as long as you fix
• 33:58
  Speaker 3: that or or pay attention to be intention you know
• 34:00
  Speaker 3: about fixing whatever it is within your payment history or
• 34:03
  Speaker 3: your credit utilization, which off the back I'm just goinging
• 34:06
  Speaker 3: from my experience is usually high utilization, utilization above thirty
• 34:10
  Speaker 3: percent or lay payments within the last twenty four months.
• 34:15
  Speaker 3: Those are the top two reasons why somebody usually does
• 34:17
  Speaker 3: not have a six eighty credit score. If those two
• 34:21
  Speaker 3: things are not does not apply to someone and they
• 34:25
  Speaker 3: have below a six eighty credit score, then it's usually
• 34:28
  Speaker 3: like maybe they had like a bankruptcy or something like
• 34:30
  Speaker 3: something like drastic. But if you don't have at least
• 34:34
  Speaker 3: a six's eighty, then there there are very actionable and practical,
• 34:37
  Speaker 3: easy changes and switches that you just need to make
• 34:41
  Speaker 3: like what we're going over today, and you can get
• 34:43
  Speaker 3: a six eighty within I don't want to promise a
• 34:46
  Speaker 3: certain time limit because it depends on a profile, but
• 34:48
  Speaker 3: very quickly, very quickly.
• 34:51
  Speaker 1: Now late payments, student loans count inside of those late payments.
• 34:55
  Speaker 4: Yes, every every account on your credit report.
• 34:57
  Speaker 3: Actually every late payment on your credit report counts towards
• 35:02
  Speaker 3: your payment bank or you know, your late payments.
• 35:04
  Speaker 4: So yeah, no matter how old, by.
• 35:06
  Speaker 1: The way pandemic, we had that pause, make sure you're
• 35:08
  Speaker 1: paying us to the loans. So we got target late
• 35:11
  Speaker 1: payments number one, we got lower utilization number two, what
• 35:15
  Speaker 1: we got at number.
• 35:16
  Speaker 4: Three, number three.
• 35:18
  Speaker 3: So this definitely is going to require a visual because
• 35:22
  Speaker 3: I want to make sure that people are following it,
• 35:25
  Speaker 3: because it's a little more nuanced than the last one.
• 35:29
  Speaker 3: Hold on't give me one. I'm actually I'm a focus
• 35:32
  Speaker 3: on one other one before I hit that one, just
• 35:36
  Speaker 3: for easier explanation. All right, Now, the next tip or
• 35:41
  Speaker 3: credit strategy that I would recommend to a person who
• 35:43
  Speaker 3: is trying to increase their credit score within the next year.
• 35:48
  Speaker 3: This is one of my low key favorite ones because
• 35:50
  Speaker 3: it's one of the ones that is usually never ever
• 35:52
  Speaker 3: ever thought of or mentioned or even talked. This is
• 35:56
  Speaker 3: specifically for people who have charge off charged off accounts.
• 36:00
  Speaker 3: Right now, at the mention of charge offs, there are
• 36:05
  Speaker 3: so many people that probably had a visceral reaction, like
• 36:08
  Speaker 3: I'm not getting the charge off removed, just a reputation
• 36:11
  Speaker 3: of a charge off is usually attributed to that being
• 36:16
  Speaker 3: the hardest account type to remove get removed from your
• 36:20
  Speaker 3: credit report. Right that's one of the worst credit instances
• 36:23
  Speaker 3: or the worst types of derogatory accounts that is on
• 36:27
  Speaker 3: our credit reports, and it causes a lot of damage,
• 36:30
  Speaker 3: right And so most people they either try to dispute
• 36:36
  Speaker 3: that account, but most people don't have luck with getting
• 36:39
  Speaker 3: them deleted. But that's simply because they usually are disputing
• 36:42
  Speaker 3: it incorrectly. Right now, I didn't want to get much
• 36:46
  Speaker 3: into credit repair or credit dispute tactics, however, this one
• 36:50
  Speaker 3: is worth mentioning. If you have a charge off on
• 36:53
  Speaker 3: your credit report, what I need you to do is
• 36:56
  Speaker 3: number one, you need to download your official credit report.
• 36:58
  Speaker 3: You would do so by going to and you will
• 37:00
  Speaker 3: credit report dot com.
• 37:02
  Speaker 4: It is free.
• 37:03
  Speaker 3: You get you get a free copy of all three
• 37:04
  Speaker 3: of your credit reports. You need your official credit report
• 37:07
  Speaker 3: and not like a credit monasoring app specifically because our
• 37:11
  Speaker 3: official credit reports contain so many, so much more information
• 37:15
  Speaker 3: and details about each account, right, and that information.
• 37:19
  Speaker 4: Is what you will use and what you will need.
• 37:21
  Speaker 3: To determine if that charge off is considered a valid
• 37:25
  Speaker 3: right now, the second thing that I want to want
• 37:30
  Speaker 3: them to do is once they get their credit reports,
• 37:33
  Speaker 3: look at their look at their charges off account and
• 37:35
  Speaker 3: look at how it's reporting on their credit report.
• 37:39
  Speaker 1: And.
• 37:41
  Speaker 3: They need to determine. They need to look for two things.
• 37:44
  Speaker 3: The first thing that they need to look for is
• 37:47
  Speaker 3: if that charge off account is stay If that charge
• 37:53
  Speaker 3: off account still is carrying a balance, right, is it
• 37:56
  Speaker 3: reporting a balance? Does it say zero dollars or does
• 37:59
  Speaker 3: it still if it was a repossession that was charged off,
• 38:01
  Speaker 3: for example, does it say you still owe twelve thousand
• 38:04
  Speaker 3: dollars or whatever on that account?
• 38:06
  Speaker 4: Right?
• 38:06
  Speaker 3: So, determine how determined a balance on that charge off account. Okay,
• 38:11
  Speaker 3: if that charge off account has a balance that has
• 38:15
  Speaker 3: been updated after the account was charged off, then you
• 38:19
  Speaker 3: need to challenge that. Most people are most people don't
• 38:24
  Speaker 3: challenge charge charge offs correctly. They usually challenge it the
• 38:26
  Speaker 3: standard way that we challenge our credit report, which is
• 38:29
  Speaker 3: usually like based off either random letter templates that they
• 38:32
  Speaker 3: found online or mainly focus on the fcr A loss
• 38:37
  Speaker 3: which is the Fair Credit Reporting Act. And those are
• 38:40
  Speaker 3: just a host of consumer laws that we usually you know,
• 38:43
  Speaker 3: use to challenge credit reports W charge off specifically, there
• 38:47
  Speaker 3: is a set of statutes that every consumer needs to
• 38:52
  Speaker 3: be aware of, right and without over complicating it or
• 38:56
  Speaker 3: or being too technical with it. I definitely uh know
• 39:02
  Speaker 3: that it's important that they under that that they that
• 39:05
  Speaker 3: they get this. So I want to make sure hold
• 39:08
  Speaker 3: on that. I am showing it just for them to
• 39:11
  Speaker 3: screenshot if anything.
• 39:13
  Speaker 4: Can you see it? Yeah?
• 39:16
  Speaker 1: All right?
• 39:18
  Speaker 4: Now?
• 39:19
  Speaker 3: This is this is This is the four four step
• 39:23
  Speaker 3: process on how to properly challenge a charge off. And
• 39:27
  Speaker 3: the reason why I'm placing so much emphasis on challenging
• 39:30
  Speaker 3: charge offs is because something that that most people don't
• 39:34
  Speaker 3: know is most charge offs that are reporting on our
• 39:37
  Speaker 3: credit report, they are valid charge offs, meaning they are
• 39:40
  Speaker 3: that person's account. The account was charged off. I'm sure
• 39:44
  Speaker 3: they did, oh the lender, right, That's not what we
• 39:48
  Speaker 3: are disputing. However, a part that is often misunderstood or
• 39:53
  Speaker 3: left out is while a charge While most charge offs
• 39:57
  Speaker 3: are valid, most are not accurate, and there is a
• 39:59
  Speaker 3: big difference between a charge off being being valid and accurate.
• 40:02
  Speaker 3: It's the difference of a person getting pulled over with
• 40:06
  Speaker 3: an expired license. They have a license, it's their information,
• 40:09
  Speaker 3: is their address. However, the status of that license make
• 40:14
  Speaker 3: you know, makes it illegal right like it doesn't. It
• 40:17
  Speaker 3: doesn't matter that the information is correct. That's that's sort
• 40:20
  Speaker 3: of the same thing that happens with charge offs. Specifically,
• 40:23
  Speaker 3: getting a charge off removed from your credit report legally,
• 40:26
  Speaker 3: I want to place ins on that leak legally and
• 40:30
  Speaker 3: doing it the proper way can can cause one hundred
• 40:35
  Speaker 3: plus point increase in a person's credit score, and it
• 40:41
  Speaker 3: does wonders for your borrowing power, especially if you are
• 40:45
  Speaker 3: trying to buy a home, specifically trying to buy a home,
• 40:47
  Speaker 3: trying to buy a car, or pursuing any sort of
• 40:50
  Speaker 3: installment based loan. Charge offs affect those drastically. So it's
• 40:55
  Speaker 3: super important that everyone knows how to properly challenge charge
• 40:58
  Speaker 3: offs because those are According to the most recent FYCO report,
• 41:04
  Speaker 3: charge offs, charge offs were actually the second largest quantitative
• 41:09
  Speaker 3: item that was on consumer's credit report that contained derogatory accounts,
• 41:13
  Speaker 3: which was insane. It's insane. This is the first time
• 41:16
  Speaker 3: that's ever happened in the history of since I've been
• 41:19
  Speaker 3: doing it. But there are so many, there are so
• 41:22
  Speaker 3: many illegal charge offs that are affecting our credit reports.
• 41:25
  Speaker 3: So as long as they follow these steps, which is
• 41:27
  Speaker 3: getting getting a copy of their official credit reports and
• 41:31
  Speaker 3: just going through this list. I don't know if you
• 41:33
  Speaker 3: guys want me to read through it, but just going
• 41:36
  Speaker 3: through this list looking for.
• 41:39
  Speaker 2: Two specific things and yeah, yeah, let's let's go through
• 41:44
  Speaker 2: because some people might be listening to audio they might
• 41:45
  Speaker 2: not okay.
• 41:46
  Speaker 4: Yeah, yeah, perfect, Okay, yeah, I can definitely do that. Okay.
• 41:48
  Speaker 3: So the statues that everyone needs to be aware of
• 41:53
  Speaker 3: and that that that they will use in order to
• 41:55
  Speaker 3: properly challenge the charge off is called the uh.
• 41:58
  Speaker 4: It's it's acronym. That's right now.
• 42:02
  Speaker 3: This is the law, the set of statues rather that
• 42:05
  Speaker 3: is the truth in lending acts. So it as an
• 42:09
  Speaker 3: overview it it deals heavily with the acquirement of a
• 42:14
  Speaker 3: debt or how lenders are possessing a debt, more so
• 42:19
  Speaker 3: than like reporting on a credit report. So the process
• 42:23
  Speaker 3: in which a lenders use matters the most. If lenders
• 42:26
  Speaker 3: fail to do prerequisite things before charging off an account,
• 42:31
  Speaker 3: things as simple as giving you sending you a letter
• 42:33
  Speaker 3: in writing a warning, right.
• 42:35
  Speaker 4: Like they legally have to do that.
• 42:36
  Speaker 3: They have to send your warning before they charge off
• 42:39
  Speaker 3: an account. They have to give you a chance uh
• 42:41
  Speaker 3: to to make uh to bring the account current. They
• 42:45
  Speaker 3: have to give you a chance to settle the account.
• 42:49
  Speaker 3: And then they also after after these are three notices,
• 42:52
  Speaker 3: by the way, and also after that, before they report
• 42:54
  Speaker 3: it to the credit bureaus, they have to have tried
• 42:57
  Speaker 3: to contact you at least ten on ten instances, right,
• 43:01
  Speaker 3: And I'm just going to say ninety percent of companies
• 43:05
  Speaker 3: do not ever follow that process to the t and
• 43:10
  Speaker 3: the burden of proof is on them. So I always
• 43:12
  Speaker 3: tell like, don't even try to stretch yourself out, like
• 43:15
  Speaker 3: did they send me No, No, the burden of proof is
• 43:16
  Speaker 3: on them. So what you do is you utilize your
• 43:19
  Speaker 3: consumer rights that are rightly attributed to you, and you
• 43:23
  Speaker 3: request that they provide proof that they have done all
• 43:25
  Speaker 3: of those things. Providing proof is demanding that they send
• 43:30
  Speaker 3: proof of ownership.
• 43:31
  Speaker 4: Right.
• 43:33
  Speaker 3: One of the other biggest instances with charge off accounts
• 43:37
  Speaker 3: is the original creditor selling the account to a collection
• 43:43
  Speaker 3: agency but not properly withdrawing ownership of that account. I
• 43:50
  Speaker 3: want to say, according to two years ago, I think
• 43:52
  Speaker 3: it was somewhere along the line of like sixty three
• 43:55
  Speaker 3: percent of charged off accounts that were in the hands
• 44:00
  Speaker 3: of collection agencies. They didn't even own them properly, Like,
• 44:03
  Speaker 3: they did not legally own them. And although they was
• 44:06
  Speaker 3: collecting on the dead, harassing citizens, they didn't even legally
• 44:10
  Speaker 3: own them. All they would have took is as a
• 44:13
  Speaker 3: consumer for us to demand what's called proof of ownership,
• 44:17
  Speaker 3: and that account would have to legally get removed. Doesn't
• 44:21
  Speaker 3: matter how much you are, like, none of that matters.
• 44:24
  Speaker 3: So the number one thing is demanding that they prove
• 44:28
  Speaker 3: the ownership of the account, demanding that these instances did
• 44:34
  Speaker 3: not happen, which is interest being added after the account
• 44:37
  Speaker 3: was charged off. That is illegal. That happens a lot.
• 44:41
  Speaker 3: Late fees being applied after the charge off. That also
• 44:45
  Speaker 3: happens a lot, because they'll add like attorney fees and
• 44:47
  Speaker 3: things of that nature. They cannot do that incorrect balance calculation,
• 44:52
  Speaker 3: so they're inflating it with interest. And like I said,
• 44:56
  Speaker 3: different sort of fees happens a lot unclear breakdown, So like,
• 45:01
  Speaker 3: if they don't send you an itemized list of every
• 45:03
  Speaker 3: single cent item on that account, they can't legally claim
• 45:07
  Speaker 3: that you owe them that. So yeah, those are the
• 45:11
  Speaker 3: main instances that a company would have to prove that
• 45:15
  Speaker 3: it's accurate. And like I said, over seventy percent of
• 45:17
  Speaker 3: the times it's not. So use that information, use the
• 45:21
  Speaker 3: statues that's presented before you and challenge that by sending
• 45:25
  Speaker 3: a letter to the credit bureaus saying exactly what I said.
• 45:29
  Speaker 6: The more you know, all right, yes, next tip good
• 45:35
  Speaker 6: to know, good to know, And and that happens usually
• 45:40
  Speaker 6: based off of like when does those type of situations
• 45:43
  Speaker 6: even happen?
• 45:43
  Speaker 4: As far as so it takes.
• 45:45
  Speaker 3: It usually takes about six months for an account to
• 45:47
  Speaker 3: be charged off, So six months of failure to pay
• 45:50
  Speaker 3: for an account. If you have a credit card that
• 45:53
  Speaker 3: you have just let go of, did have not made
• 45:56
  Speaker 3: a payment within you know, a few months, a company
• 45:59
  Speaker 3: will usually charge it off at six months. However, they
• 46:02
  Speaker 3: can charge off an account as soon as a ninety
• 46:04
  Speaker 3: days you know, ninety days late, right, but most most
• 46:08
  Speaker 3: companies will wait until at least six months, so they
• 46:11
  Speaker 3: do give you a while to you know, make right
• 46:16
  Speaker 3: on the account. However, even still after they charge, because
• 46:20
  Speaker 3: they didn't properly notify you and follow all of the
• 46:23
  Speaker 3: steps that they are supposed to a lot of them
• 46:26
  Speaker 3: are not legal. And so yes, people, that one is
• 46:31
  Speaker 3: so important because the amount of charge offs that I
• 46:34
  Speaker 3: see get deleted and removed from credit reports on a
• 46:37
  Speaker 3: weekly basis by a simple letter is outstanding. Like it,
• 46:41
  Speaker 3: I will never get over it. So one of the
• 46:45
  Speaker 3: another way that you can increase your credit score is
• 46:47
  Speaker 3: by increasing your credit limits because that impacts like your
• 46:52
  Speaker 3: credit utilization, and it helps you to have. The more
• 46:56
  Speaker 3: credit you have available to you, then the higher your
• 46:59
  Speaker 3: barring power is, and it's just increases, it just improves
• 47:02
  Speaker 3: your credit profile all around.
• 47:04
  Speaker 4: Right. So one of the tips that I.
• 47:06
  Speaker 3: Always recommend, and I love recommending, is increasing your credit
• 47:12
  Speaker 3: limits before applying for new credit So that seems so simple,
• 47:15
  Speaker 3: but the reason why somebody would somebody should do this
• 47:18
  Speaker 3: is before they apply for a new credit card. So
• 47:20
  Speaker 3: if you know that you are applying for a credit card,
• 47:22
  Speaker 3: before you apply for that credit card, look at all
• 47:25
  Speaker 3: of your existing credit cards and see if you qualify
• 47:28
  Speaker 3: for a credit limit increase. That's simply because you have
• 47:32
  Speaker 3: to understand that every single time you apply for a
• 47:35
  Speaker 3: credit card, your lender who you are applying with, they
• 47:38
  Speaker 3: will take a survey of all of your current credit
• 47:41
  Speaker 3: card accounts, and whatever your average limit is or whatever,
• 47:45
  Speaker 3: they will base your approved amount off of what you
• 47:49
  Speaker 3: already have on your credit report.
• 47:50
  Speaker 1: Right.
• 47:51
  Speaker 4: That's one.
• 47:52
  Speaker 3: So you if you only have credit cards under fifteen
• 47:55
  Speaker 3: hundred dollars, it's very rare and unlikely that a new
• 47:59
  Speaker 3: lender would trust you with ten thousand dollars or twenty
• 48:03
  Speaker 3: thousand dollars.
• 48:03
  Speaker 4: Right.
• 48:04
  Speaker 3: It is always best to seek to first increase your
• 48:09
  Speaker 3: current credit limits before you apply for a new credit card.
• 48:12
  Speaker 3: In fact, a huge red flag surlenders is if you
• 48:17
  Speaker 3: are if your credit limit is not increasing, that is
• 48:19
  Speaker 3: a red flag to new lenders and often the reason
• 48:22
  Speaker 3: why they will deny you.
• 48:23
  Speaker 4: For their credit card because that's risky.
• 48:26
  Speaker 3: Why have you had that credit card since for example
• 48:29
  Speaker 3: two thousand whatever, two thousand and nine and the limit
• 48:33
  Speaker 3: is still five hundred dollars or the limit is still
• 48:37
  Speaker 3: one thousand dollars.
• 48:38
  Speaker 4: Right, This is why I tell everyone when you have.
• 48:42
  Speaker 3: A credit card that should there should never be a
• 48:47
  Speaker 3: full year that surpasses that you do not have or
• 48:50
  Speaker 3: have not received at the very least one credit limit increase.
• 48:54
  Speaker 4: But really you you could have.
• 48:56
  Speaker 3: Received two plus at least two a year. That is
• 49:01
  Speaker 3: a standard operation on credit cards. How banking credit limit
• 49:06
  Speaker 3: increases work that is so standard too, is very minimal
• 49:09
  Speaker 3: and the usual the usual method or I'm sorry, the
• 49:15
  Speaker 3: usual frequency of a credit limit increase. So if you
• 49:17
  Speaker 3: are not getting those, then that's that's number one red flag.
• 49:21
  Speaker 3: But also too, you need to request them. Don't just
• 49:25
  Speaker 3: wait until the bank approves you for a credit limit increase. No,
• 49:29
  Speaker 3: you have to actually apply for them.
• 49:32
  Speaker 1: Mostly the credit increase actually helps because it lowers to utilization. Right,
• 49:37
  Speaker 1: So if I had one thousand dollars and now they
• 49:39
  Speaker 1: raise it to two and I was using ten percent,
• 49:42
  Speaker 1: now that ten percent is going down to five, so
• 49:45
  Speaker 1: you gotta we gotta start looking at that standpoint. I'm
• 49:48
  Speaker 1: glad you answered that because my kind of my question
• 49:50
  Speaker 1: was like, how often should you be applying for it?
• 49:52
  Speaker 1: And if you are applying it for it, does that
• 49:56
  Speaker 1: count towards like inquiries or is that not an inquiry
• 49:59
  Speaker 1: at all?
• 50:00
  Speaker 4: It does depend on the bank. So some banks, like Chase,
• 50:05
  Speaker 4: they will they it does cause a hard increy.
• 50:08
  Speaker 3: But American Express City and Apple and a lot of
• 50:14
  Speaker 3: other banks they won't. They they'll do a soft increase
• 50:16
  Speaker 3: so it will not count towards your your heart increase. However,
• 50:20
  Speaker 3: don't I would not be concerned about getting an increy
• 50:24
  Speaker 3: at the but has of like a request for a
• 50:26
  Speaker 3: credit limit increase that is not going to like impact
• 50:29
  Speaker 3: you at all, and I like, certainly don't let it.
• 50:33
  Speaker 3: Let getting an increase stop you from pursuing getting a
• 50:36
  Speaker 3: credit limit increase at the very least twice a year,
• 50:38
  Speaker 3: because not getting a credit limit increase will do more
• 50:41
  Speaker 3: detriment and harm to your barring like barring ability in
• 50:46
  Speaker 3: the future. So it you have to you have to
• 50:49
  Speaker 3: increase your credit limits. You should be seeking to increase
• 50:52
  Speaker 3: your credit limits or honestly, like, what is the point
• 50:55
  Speaker 3: of having a credit card, like you might as well
• 50:57
  Speaker 3: just use your debit card. You need to seek to
• 50:59
  Speaker 3: improve your credit or I'm sorry, increase your credit limits.
• 51:03
  Speaker 4: That is super important.
• 51:04
  Speaker 3: It helps you all across the board, and it helps
• 51:08
  Speaker 3: all of your future credit opportunities, like it helps all
• 51:12
  Speaker 3: of your other applications. If you are if your credit
• 51:14
  Speaker 3: Because by the way, I don't know if people realize this,
• 51:16
  Speaker 3: but when the lender sees our credit reports, they don't
• 51:19
  Speaker 3: see the same report that we see when we are
• 51:21
  Speaker 3: logging in on our credit monitoring app or downloading our
• 51:24
  Speaker 3: credit report. We have a consumer facing report, so we
• 51:26
  Speaker 3: are not privy to a lot of the things that
• 51:29
  Speaker 3: they see. One of the things that they see is
• 51:32
  Speaker 3: the last increase of that credit card.
• 51:34
  Speaker 4: They can see the starting.
• 51:35
  Speaker 3: Limit versus the limit that you have now, so obviously
• 51:40
  Speaker 3: they can tell and will know if you have received
• 51:43
  Speaker 3: an increase. It is actually a red flag. And when
• 51:45
  Speaker 3: I say reflag, I don't just mean like, oh, they
• 51:47
  Speaker 3: don't like that. When I say red flag, I mean
• 51:49
  Speaker 3: like it it works to your detriment, Like it puts
• 51:53
  Speaker 3: you in a lesser category, qualifiable category than you would
• 51:56
  Speaker 3: have been, you know otherwise. So a red flag two
• 52:01
  Speaker 3: lenders is a big deal and it absolutely makes a
• 52:03
  Speaker 3: difference with all of our applications. So again, request your
• 52:08
  Speaker 3: credit limit increase. There's no reason why you should not.
• 52:11
  Speaker 1: Yeah, I can hear it. Now there's going to be
• 52:13
  Speaker 1: somebody that got four credit cards and be like I heard,
• 52:17
  Speaker 1: they said, increase my limits now got full inquiry. But
• 52:20
  Speaker 1: it shouldn't work. Just be mindful like you should. This
• 52:23
  Speaker 1: is actually gonna help you. This is going to help you. Yeah,
• 52:26
  Speaker 1: you know, this is like a random This is like
• 52:28
  Speaker 1: a personal question. Like you have an American Express card. Right,
• 52:31
  Speaker 1: A lot of times they don't really tell you the limit,
• 52:33
  Speaker 1: but they just tell you got spending power. Yeah, how
• 52:36
  Speaker 1: do you gauge like how much spending power you actually have?
• 52:40
  Speaker 1: Like it's like you might try to charge something like, well, not,
• 52:44
  Speaker 1: how do we gauge that?
• 52:45
  Speaker 3: Well, first of all, Troy, you just stunk you starting
• 52:49
  Speaker 3: on a whole artist because you don't have a you
• 52:50
  Speaker 3: don't have a limit. You have a spending power because
• 52:52
  Speaker 3: you you don't have a limit on your credit card.
• 52:54
  Speaker 4: That is not most of most people's reality.
• 52:57
  Speaker 1: No, but.
• 52:59
  Speaker 3: No, but so spend that's a charge. So that American
• 53:01
  Speaker 3: Express has charge cards. In credit cards, a charge card
• 53:05
  Speaker 3: does not have a limit, whereas, like I said, a
• 53:07
  Speaker 3: credit whereas a credit card has an established limit. The
• 53:11
  Speaker 3: difference is your charge card does not report a utilization monthly. Right,
• 53:16
  Speaker 3: which speaking of, if you are a person that has
• 53:20
  Speaker 3: a charge card and your credit score is low, you
• 53:23
  Speaker 3: need to make sure that you have another credit card
• 53:25
  Speaker 3: that has a reported limit, because your charge card doesn't
• 53:28
  Speaker 3: help your utilization at all because it does not report
• 53:31
  Speaker 3: a limit.
• 53:33
  Speaker 4: And make sure you are not carrying a balance on
• 53:35
  Speaker 4: a charge card.
• 53:36
  Speaker 3: That is that is that is a penalty like you
• 53:39
  Speaker 3: you can't carry the point of the difference between the
• 53:42
  Speaker 3: charge card and the credit card is a charge card
• 53:43
  Speaker 3: is for you to consistently recycle the balance like you are.
• 53:47
  Speaker 3: You should seek to pay off that account every month
• 53:51
  Speaker 3: like it should never. It should never be a month
• 53:55
  Speaker 3: that you are carrying that balance over unless it's like
• 53:58
  Speaker 3: an emergency, simply because the interest rate on carried over
• 54:01
  Speaker 3: balances on charged cars are astronomical, like because they're literally
• 54:05
  Speaker 3: made for a person to rent and repeat and recycle
• 54:08
  Speaker 3: their balance constantly. Gotcha, Yeah, and so there there there's
• 54:14
  Speaker 3: no set limits, so they'll you even if they say
• 54:16
  Speaker 3: you're spending bouts like fifteen thousand. You can be like, hey,
• 54:19
  Speaker 3: I want to spend forty K, and usually they'll approve it.
• 54:22
  Speaker 3: So yeah, most people can't relate, though.
• 54:28
  Speaker 1: They deserve it. They deserve to be rich.
• 54:31
  Speaker 4: Hey, yes, that's so.
• 54:32
  Speaker 3: And speaking of the American expressed go card is like
• 54:35
  Speaker 3: one of one of my favorite cars in the world,
• 54:37
  Speaker 3: but also one of the one of the best everyday
• 54:39
  Speaker 3: cars that if you are responsible enough to pay your
• 54:42
  Speaker 3: credit card back, I recommend that car to pretty much everyone,
• 54:45
  Speaker 3: like that's just one of those cars that I probably
• 54:47
  Speaker 3: will never get rid of ever.
• 54:50
  Speaker 4: So this is pretty much.
• 54:54
  Speaker 3: Like an overview of like how getting a higher or
• 54:58
  Speaker 3: pursuing a higher credit limit is, and a great rule
• 55:02
  Speaker 3: of thumb when it comes to requesting a credit limit
• 55:05
  Speaker 3: increase is, in my opinion and my experience, the best
• 55:09
  Speaker 3: banks to request a credit limit increase every ninety days,
• 55:14
  Speaker 3: every ninety days, every ninety days, at least four times
• 55:17
  Speaker 3: a year once a quarter are going to be American Express, Discover,
• 55:25
  Speaker 3: Capital One, Chase in Apple. Those are like the best
• 55:29
  Speaker 3: banks to have a consistently growing credit limit right. Also,
• 55:35
  Speaker 3: there's no hard increase, so it's a soft incury. It
• 55:37
  Speaker 3: will not affect your credit profile. And just as an
• 55:41
  Speaker 3: FYI for people who don't understand how it works and
• 55:43
  Speaker 3: they have one of these cards, when to request for
• 55:48
  Speaker 3: American Express, I request every at least ninety one to
• 55:52
  Speaker 3: ninety five days for a credit limit increase. If you
• 55:54
  Speaker 3: have a Discover, Discover has a annual cycle of doing
• 56:01
  Speaker 3: manual reviews basically like seeking to see if you deserve
• 56:04
  Speaker 3: a credit limit increase at month seven, at month eleven,
• 56:08
  Speaker 3: and at month fourteen of you obtaining that card right
• 56:12
  Speaker 3: Capital One will check every six months. Chase will will
• 56:15
  Speaker 3: only check on request, and that's important to know because
• 56:18
  Speaker 3: Chase is not standy when it comes through credit limit increases. However,
• 56:24
  Speaker 3: if you do not request it, then you know they
• 56:27
  Speaker 3: just they don't give it to you. How So you
• 56:29
  Speaker 3: need to request it for Chase because they do a
• 56:31
  Speaker 3: hard pool. I only usually do them twice a year.
• 56:36
  Speaker 3: And then the Apple Car. You can ask for a
• 56:38
  Speaker 3: credit limit increase with an Apple Car every month, every
• 56:41
  Speaker 3: month and there's no limit to that. So yeah, I
• 56:45
  Speaker 3: just wanted wanted to touch on that because, like I said,
• 56:49
  Speaker 3: increasing that credit limit is very important. Increasing the credit
• 56:53
  Speaker 3: limit is super important, which brings me to my next point,
• 56:57
  Speaker 3: which was the utilization thresholds that I wanted to touch join
• 57:00
  Speaker 3: when it comes to credit cards. Now, this one is
• 57:07
  Speaker 3: I feel like I discussed this topic at nauseum because
• 57:09
  Speaker 3: this is probably one of the biggest misconceptions in our community,
• 57:12
  Speaker 3: and I did touch on it briefly earlier, but I
• 57:15
  Speaker 3: wanted to give a visual to coincide with it. Why
• 57:20
  Speaker 3: why reporting a thirty percent credit utilization is the biggest
• 57:23
  Speaker 3: myth and the biggest lie that we have been fed
• 57:27
  Speaker 3: Simply because, like I said, thirty, reporting a thirty percent
• 57:32
  Speaker 3: utilization leaves so many points on the table and prevents
• 57:36
  Speaker 3: so many opportunities unities for us to increase our credit score. So,
• 57:40
  Speaker 3: if you are a person that does not have at
• 57:41
  Speaker 3: least a seven hundred credit score, you cannot afford to
• 57:44
  Speaker 3: report a thirty percent utilization under any circumstance. Instead, when
• 57:49
  Speaker 3: you to in order to increase your credit score in
• 57:52
  Speaker 3: the most rapid way possible by using the current accounts
• 57:55
  Speaker 3: that you have without having to apply for anything else,
• 57:58
  Speaker 3: a great rule of thumb is to change the way
• 58:01
  Speaker 3: that you are viewing credit utilization. What I mean by that,
• 58:05
  Speaker 3: whenever we are logging into our credit monitoring apps, we
• 58:08
  Speaker 3: are seeing a utilization percentage that encapsulates our overall utilization percentage,
• 58:14
  Speaker 3: meaning like it's it's taken into account every single credit
• 58:17
  Speaker 3: record that every single credit card that we have on
• 58:19
  Speaker 3: our credit report, and it's adding those numbers together to
• 58:22
  Speaker 3: give what's called an aggregate utilization.
• 58:25
  Speaker 4: So it's whatever whatever your.
• 58:27
  Speaker 3: Collective total credit limits are across all of the current
• 58:31
  Speaker 3: credit cards that you have, that's going to determine your utilization.
• 58:36
  Speaker 4: If you are a person.
• 58:38
  Speaker 3: Who needs and wants to increase your credit score and
• 58:41
  Speaker 3: get every single point that you can, every extra point
• 58:43
  Speaker 3: that you can within the next thirty to sixty days,
• 58:45
  Speaker 3: so within the next two billing cycles, if you need
• 58:49
  Speaker 3: to start approaching your credit utilization in an individual aspect,
• 58:53
  Speaker 3: that is the only way that you that we are
• 58:55
  Speaker 3: able to get as many of those one undred and
• 59:00
  Speaker 3: sixty five points alloted for credit utilization as possible, And
• 59:04
  Speaker 3: unless you individualize each credit card, then you will not
• 59:09
  Speaker 3: get all of those points. And I'll explain so most
• 59:13
  Speaker 3: people do not realize that, like I said, not only
• 59:16
  Speaker 3: do we are regraded for aggregate utilization overall, but we
• 59:20
  Speaker 3: are affected in the balances that we report on each
• 59:24
  Speaker 3: individual card.
• 59:25
  Speaker 4: We actually lose points.
• 59:28
  Speaker 3: So here are some guidelines and thresholds that everyone needs
• 59:31
  Speaker 3: to be aware of when it comes to credit cards.
• 59:33
  Speaker 4: This is so important.
• 59:34
  Speaker 3: There are certain thresholds when it comes to credit cards
• 59:37
  Speaker 3: that I warn against, and like I said, everyone needs
• 59:39
  Speaker 3: to be aware of.
• 59:40
  Speaker 4: It's three important tiers. Anything.
• 59:44
  Speaker 3: Any utilization that you report on any credit card above
• 59:47
  Speaker 3: twenty eight point nine percent, right, you automatically will trigger
• 59:52
  Speaker 3: a ten point.
• 59:53
  Speaker 4: Score reduction per card.
• 59:56
  Speaker 3: Right, So, off the bat, any single credit card that
• 59:59
  Speaker 3: you have reported on your credit report over twenty nine percent,
• 1:00:03
  Speaker 3: know that, like, that's a ten point score reduction every
• 1:00:06
  Speaker 3: three months that you leave it like that. Now, this
• 1:00:10
  Speaker 3: does apply to individual cars, So if you have multiple
• 1:00:13
  Speaker 3: cars it's reporting over twenty eight percent.
• 1:00:16
  Speaker 4: You will individually get deemed. So add those up.
• 1:00:18
  Speaker 3: If you got five credit cards and they're fifty percent,
• 1:00:21
  Speaker 3: thirty percent, whatever, and you are individually being deemed about
• 1:00:26
  Speaker 3: ten points each per infraction every three months, right, So
• 1:00:31
  Speaker 3: off the bat, that's sixty point that that's that's like
• 1:00:35
  Speaker 3: ninety points within sixty days that most people aren't even.
• 1:00:38
  Speaker 4: Aren't even aware that they're being deemed.
• 1:00:41
  Speaker 3: Now where it gets dangerous is any credit card that
• 1:00:44
  Speaker 3: you have reporting over a forty eight percent you have,
• 1:00:47
  Speaker 3: you you are that is extreme. You are being deemed
• 1:00:51
  Speaker 3: about twenty five points per card that you are reporting
• 1:00:53
  Speaker 3: over forty eight percent. You are you are being labeled
• 1:00:59
  Speaker 3: as risky. So anything that you apply for you are
• 1:01:03
  Speaker 3: never going to qualify for their premier offers for anything
• 1:01:07
  Speaker 3: that's considered good or or only for responsible borrows. You
• 1:01:11
  Speaker 3: will not qualify if you have any card over forty
• 1:01:14
  Speaker 3: eight percent. To take it a point further, most prestigious banks,
• 1:01:20
  Speaker 3: the most prestigious banks will will consider any card over
• 1:01:26
  Speaker 3: forty eight point nine percent is maxed out, so not
• 1:01:31
  Speaker 3: one hundred percent like most people think. If you are
• 1:01:34
  Speaker 3: reporting your if your utilization that you are reporting is
• 1:01:37
  Speaker 3: over forty eight point nine percent, American Express will deem
• 1:01:39
  Speaker 3: that as a maxed out card, so you are being
• 1:01:42
  Speaker 3: penalized the same as somebody who has maxed out their
• 1:01:45
  Speaker 3: card at forty At anything above forty eight point nine percent,
• 1:01:49
  Speaker 3: that is extremely dangerous level. If you allow any single
• 1:01:52
  Speaker 3: individual credit report or i'm sorry, credit card to report
• 1:01:56
  Speaker 3: over forty eight point nine percent, no, you cannot do that.
• 1:02:01
  Speaker 3: You have to decrease that immediately, like the following the
• 1:02:04
  Speaker 3: next billing cycle, then the next streshold that's like it's wraps.
• 1:02:11
  Speaker 4: Above ninety eight percent is worse.
• 1:02:14
  Speaker 3: Than getting a charge off, and this can be an
• 1:02:16
  Speaker 3: active open credit card account. If you are reporting above
• 1:02:19
  Speaker 3: ninety eight percent, you are in the worst possible signifier
• 1:02:24
  Speaker 3: or risk level. When it comes to borrowing power, it
• 1:02:27
  Speaker 3: doesn't matter how good your credit score is, it doesn't
• 1:02:30
  Speaker 3: matter how great your history is. Utilization refreshes monthly, so
• 1:02:35
  Speaker 3: every month that you report that you allow that to.
• 1:02:38
  Speaker 4: Report, it affects you every month.
• 1:02:40
  Speaker 3: Right, That's why it's so important when you are paying
• 1:02:44
  Speaker 3: down your credit cards to do it strategically. The first
• 1:02:48
  Speaker 3: thing else you need to do is pay down any
• 1:02:50
  Speaker 3: card over ninety eight percent, because the goal is to
• 1:02:52
  Speaker 3: get all of your cards at least first under ninety
• 1:02:57
  Speaker 3: eight percent. Right, Once all of your cars are underney
• 1:03:00
  Speaker 3: eight percent, you need to then seek to bring all
• 1:03:02
  Speaker 3: of your cards under forty eight percent.
• 1:03:05
  Speaker 4: And then the.
• 1:03:06
  Speaker 3: Ultimate goal is obviously to make sure at all times
• 1:03:08
  Speaker 3: all of your cards are below twenty eight point. And
• 1:03:13
  Speaker 3: then doing that, doing just that, most people will see
• 1:03:19
  Speaker 3: you can see like ninety plus point increase within like
• 1:03:22
  Speaker 3: I said, two billain cycles, by just ensuring that you
• 1:03:25
  Speaker 3: are not in fracturing on any of these thresholds when
• 1:03:28
  Speaker 3: it comes to your individual credit cards, so that that's
• 1:03:34
  Speaker 3: super important.
• 1:03:36
  Speaker 4: And then what about collections.
• 1:03:41
  Speaker 3: So collections, collections are are not considered an active account,
• 1:03:46
  Speaker 3: They're considered the part of the account. So a collection
• 1:03:50
  Speaker 3: cannot ever be a positive account, and it will always
• 1:03:53
  Speaker 3: be a collection regardless like if you paid it off.
• 1:03:56
  Speaker 3: The only the only time a collection will stop impacting
• 1:03:59
  Speaker 3: you is if it's removed from your credit report. Right,
• 1:04:01
  Speaker 3: So I tell people all the time, I'm glad you
• 1:04:04
  Speaker 3: brought that up to a collection account. The second that
• 1:04:08
  Speaker 3: it hits your credit report, it is done the most
• 1:04:11
  Speaker 3: damage that it will ever do.
• 1:04:12
  Speaker 4: To your profile.
• 1:04:14
  Speaker 3: The second that it hits it's done all the damage
• 1:04:16
  Speaker 3: that it could ever do. Like, it can't get any worse.
• 1:04:18
  Speaker 3: It can't start affecting your your credit profile more after that,
• 1:04:22
  Speaker 3: when it hits your report, it done. It did all
• 1:04:24
  Speaker 3: the damage that that account could do. And the only
• 1:04:28
  Speaker 3: thing that you could you should focus on is either
• 1:04:31
  Speaker 3: trying to challenge it to get it removed, trying to
• 1:04:35
  Speaker 3: arrange a pay the delete with the lender in order
• 1:04:37
  Speaker 3: to get a deletion as a deletion as a result
• 1:04:40
  Speaker 3: of paying the account off. And if you cannot get
• 1:04:43
  Speaker 3: a collection account removed, I'm sorry. If you cannot get
• 1:04:45
  Speaker 3: a collection account removed, then the best thing to do
• 1:04:48
  Speaker 3: is just focus on building credit. It's already done the damage.
• 1:04:52
  Speaker 3: There are a lot of people who will have collections
• 1:04:54
  Speaker 3: and think that they don't need to build credit, or
• 1:04:58
  Speaker 3: they should wait to build credit, or wait to apply
• 1:05:00
  Speaker 3: for credit until the account falls off, or I don't know,
• 1:05:04
  Speaker 3: they like wait for something to happen. But again, the
• 1:05:07
  Speaker 3: damage has already been done. The only response to a
• 1:05:10
  Speaker 3: negative account is a positive Like, the only response to
• 1:05:14
  Speaker 3: bad credit history is good building good credit. That is
• 1:05:18
  Speaker 3: the only and ultimate response to it. It's the only
• 1:05:21
  Speaker 3: thing you can do. So, Yeah, with a collection's done
• 1:05:25
  Speaker 3: a damage. If you can't get it removed, then build
• 1:05:27
  Speaker 3: around it, build around it.
• 1:05:30
  Speaker 1: Yeah, one of the most important things is staying updated,
• 1:05:32
  Speaker 1: not only with your credit score, but obviously how things
• 1:05:35
  Speaker 1: are being updated inside of credit just the entire the
• 1:05:40
  Speaker 1: information around it, right, and so most people know the bureaus,
• 1:05:43
  Speaker 1: you know, TransUnion eartifacts and experience. It wasn't until like
• 1:05:47
  Speaker 1: I bought a house, like maybe nine years ago, that
• 1:05:51
  Speaker 1: I saw that there was different type of Fycal scores.
• 1:05:53
  Speaker 1: I was like Fyco two, Fyco three, four, or five,
• 1:05:55
  Speaker 1: and each one was something different, right, Like if I
• 1:05:58
  Speaker 1: was trying to get a phone that was for a score,
• 1:06:00
  Speaker 1: if I was trying to get a card that was
• 1:06:02
  Speaker 1: for like Fyco six, and when I try to get
• 1:06:04
  Speaker 1: a home. At the time it was FIGHTO seven and eight,
• 1:06:06
  Speaker 1: I'm like, nobody told me anything about this. But now
• 1:06:09
  Speaker 1: that it's like a FYCOT talk to us about what
• 1:06:13
  Speaker 1: this is? Who?
• 1:06:14
  Speaker 3: Yeah, So FIGHTO ten T. FIGHTO ten T is the
• 1:06:18
  Speaker 3: newest version of our credit scores. Not only is it
• 1:06:22
  Speaker 3: the newest version of our credit scores, but it is
• 1:06:24
  Speaker 3: the most impactful and the most our credit scoring system
• 1:06:29
  Speaker 3: and algorithms has changed since nineteen ninety six, so pretty
• 1:06:34
  Speaker 3: much for the bulk of most of our adulthood and
• 1:06:39
  Speaker 3: all of the time that we have been dealing with credit,
• 1:06:41
  Speaker 3: this has been the most landmark change when it comes
• 1:06:44
  Speaker 3: to our credit report, our our credit scores, and we
• 1:06:49
  Speaker 3: definitely need to Yeah, let's go into that. Let me first,
• 1:06:53
  Speaker 3: let me briefly explain what it is, so FIGHTO ten
• 1:06:56
  Speaker 3: T just a little behind the scenes. Fyco ten T
• 1:06:59
  Speaker 3: was a response to a failed Fyco nine scoring system
• 1:07:04
  Speaker 3: and failed f and Fyco nine failed because most lenders
• 1:07:08
  Speaker 3: considered it too consumer friendly. Because it didn't it was
• 1:07:12
  Speaker 3: less penalizing on things like collections, medical collections, specifically low
• 1:07:18
  Speaker 3: balance collections. It didn't penalize us as heavy as like
• 1:07:22
  Speaker 3: our prior scores did. So basically the lenders was like, no,
• 1:07:27
  Speaker 3: there the scores, the credit scores are being are increasing
• 1:07:31
  Speaker 3: too much. The average credit score as a result of
• 1:07:33
  Speaker 3: FYCO nine on average and within the United States increased
• 1:07:37
  Speaker 3: to about seven twenty two, which required lenders to pay
• 1:07:42
  Speaker 3: up you know, essentially right, you didn't like that, so
• 1:07:45
  Speaker 3: they vehemently rejected fight FYCO nine. That's important to know
• 1:07:50
  Speaker 3: because when you see how FYCO ten T came and
• 1:07:53
  Speaker 3: and see how lender friendly it is, it's.
• 1:07:56
  Speaker 4: Like they just completely flipped the switch. And FICO ten is.
• 1:08:00
  Speaker 3: Completely lender focused, meaning that like it allows lenders to
• 1:08:05
  Speaker 3: have a.
• 1:08:07
  Speaker 4: More detailed view and grade us more harshly.
• 1:08:11
  Speaker 3: On certain things that will cause most of our credit
• 1:08:15
  Speaker 3: score to decrease by the way. But yeah, so FYCO
• 1:08:19
  Speaker 3: ten T is lender friendly, and it's because it includes
• 1:08:22
  Speaker 3: what's called trended data, right, So the T in FYCO
• 1:08:26
  Speaker 3: ten T stands for trended data.
• 1:08:28
  Speaker 4: Trended data is.
• 1:08:29
  Speaker 3: A video screenshot preview of our credit activities, our activity
• 1:08:37
  Speaker 3: on each credit account for the last two years. That
• 1:08:40
  Speaker 3: is so drastically different from how our standard credit scorese
• 1:08:44
  Speaker 3: has ever been made available because The difference is all
• 1:08:48
  Speaker 3: of the credit score models. Prior to Fyco ten T,
• 1:08:51
  Speaker 3: a lender was only able to see like a snapshot
• 1:08:53
  Speaker 3: of our credit profile or our credit reports at the
• 1:08:56
  Speaker 3: time of our application. So if I apply for a
• 1:08:59
  Speaker 3: credit card today using the standard scores, a lender could
• 1:09:02
  Speaker 3: only see a snapchot, a still shot of history. What
• 1:09:07
  Speaker 3: my balances were was on the day that they requested
• 1:09:10
  Speaker 3: my credit report, what the status is of my credit
• 1:09:15
  Speaker 3: card accounts, my utilization. They can only see my current
• 1:09:18
  Speaker 3: my current stats based on my most recent generated credit report.
• 1:09:22
  Speaker 4: Right with Fyco ten.
• 1:09:23
  Speaker 3: T, instead of only just seeing one month's worth pretty
• 1:09:27
  Speaker 3: much of history in detail, they're able to see a
• 1:09:30
  Speaker 3: twenty four months history of each account. Not only that,
• 1:09:35
  Speaker 3: they're able to use that to determine and predict how
• 1:09:39
  Speaker 3: we will behave for the next twenty four months.
• 1:09:43
  Speaker 4: So basically they have a four year span.
• 1:09:47
  Speaker 3: Two years being based off predictability that they can use
• 1:09:53
  Speaker 3: to judge us and to penalize us really for barring credit,
• 1:09:58
  Speaker 3: meaning like it's going to be the justifier for lower
• 1:10:02
  Speaker 3: credit limits, decrease credit scores, refusal of credit limit increases,
• 1:10:11
  Speaker 3: justifying high interest rates, which is all the things that
• 1:10:14
  Speaker 3: lender seeks to do because it makes them more money.
• 1:10:16
  Speaker 3: Anytime that they can use anything to justify higher interest
• 1:10:19
  Speaker 3: rates is what a lender would likes, right, and so
• 1:10:22
  Speaker 3: with Fyco ten T, because it gives them access to
• 1:10:25
  Speaker 3: so much information at once, we have to be so
• 1:10:29
  Speaker 3: careful moving.
• 1:10:30
  Speaker 4: Forward, starting now with.
• 1:10:34
  Speaker 3: The data trends that we are showcasing on our credit
• 1:10:39
  Speaker 3: reports in a way that we never have had to prior.
• 1:10:43
  Speaker 3: And I'm pulling up an example, but yeah, it's have
• 1:10:51
  Speaker 3: you have you seen your Fyco ten T score.
• 1:10:54
  Speaker 1: I'm gonna be looking right after this, but I saw
• 1:10:56
  Speaker 1: like the Fycle ten T then the Vantage score four
• 1:10:59
  Speaker 1: point zero. Those are two different things, correct.
• 1:11:03
  Speaker 3: Yes, So so Vantage four point zero is the fake
• 1:11:08
  Speaker 3: version of Fyco ten So if you notice advantage vantage,
• 1:11:12
  Speaker 3: they always try to emulate Fyco, right like.
• 1:11:16
  Speaker 4: Because Vantage is the scores that we get for free.
• 1:11:19
  Speaker 3: A lot of people refer to it as like the
• 1:11:20
  Speaker 3: fake credit score because no lenders really like Vantage scores
• 1:11:23
  Speaker 3: or pull advantage scores. They prefer Fyco. But Vantage anytime
• 1:11:28
  Speaker 3: comes out with a new version, Advantage for or Advantage
• 1:11:31
  Speaker 3: will respond with their variation of the Fyco The Fyco's
• 1:11:35
  Speaker 3: newest version, right, and so that that that is the
• 1:11:38
  Speaker 3: same with advantage Vantage four point zero is just a
• 1:11:41
  Speaker 3: copy of Fyco ten T but it is important for
• 1:11:46
  Speaker 3: one specific reason. And I'm trying to load the document
• 1:11:51
  Speaker 3: to show, but yeah, it's I is.
• 1:11:57
  Speaker 1: One of my monthly subscriptions.
• 1:11:59
  Speaker 4: Yeah, so you do have you can see your tent score.
• 1:12:02
  Speaker 1: Yeah, yeah, I've been doing that and it's one of
• 1:12:05
  Speaker 1: those things like you just want to know. Like you said,
• 1:12:06
  Speaker 1: it gives you a more detailed look, and it kind
• 1:12:09
  Speaker 1: of lets you go back into history, right, Like I remember,
• 1:12:12
  Speaker 1: I think I had a late car payment from like
• 1:12:14
  Speaker 1: two thousand and sixteen, a couple of years ago, and
• 1:12:18
  Speaker 1: it was still on there. So like every seven years
• 1:12:20
  Speaker 1: obviously you know, those those type of derogatories get away
• 1:12:23
  Speaker 1: from your account, but just watching it knowing that, like damn,
• 1:12:26
  Speaker 1: it's still on there as you're making all these other
• 1:12:28
  Speaker 1: payments and how that can weigh on you. It's tough,
• 1:12:32
  Speaker 1: but it's good to see it because it gives you it,
• 1:12:33
  Speaker 1: like you said, a detailed look, and it kind of
• 1:12:35
  Speaker 1: explains what these other fycal scores and exactly what they
• 1:12:38
  Speaker 1: use for.
• 1:12:39
  Speaker 4: Yeah, no, it definitely does. Do you see are you able.
• 1:12:42
  Speaker 1: To yeah, yeah, I got it right here. Yep, okay perfect.
• 1:12:46
  Speaker 3: So here's an example of the differences between how each
• 1:12:50
  Speaker 3: model will view and grade specific things. So, FYCAO eight
• 1:12:57
  Speaker 3: is our standards score. It's the score that most of
• 1:12:59
  Speaker 3: us are you to dealing with. Is the score that
• 1:13:01
  Speaker 3: we see when we log into most of our credit apps.
• 1:13:03
  Speaker 3: Is literally like the most used versions of our credit
• 1:13:05
  Speaker 3: score for the last twenty plus years. The classic Fyco
• 1:13:09
  Speaker 3: refers to the mortgage score, specifically FYCOS two, four, and
• 1:13:12
  Speaker 3: five now the top So the top two are our
• 1:13:16
  Speaker 3: standard scores that we've been dealing with, and then the
• 1:13:18
  Speaker 3: bottom two, which are Fyco ten T Advantage four point
• 1:13:21
  Speaker 3: zero are the new scores. So for paid collections specifically,
• 1:13:26
  Speaker 3: typically with our standards scores, our FYCO eight considered paid
• 1:13:31
  Speaker 3: collections over one hundred.
• 1:13:33
  Speaker 4: They they they you it affected your credit score.
• 1:13:36
  Speaker 3: So any paid, any any collection account that you have
• 1:13:38
  Speaker 3: on your credit report that has a balance of over
• 1:13:41
  Speaker 3: one hundred dollars, then it does lower your score.
• 1:13:45
  Speaker 4: The only grade.
• 1:13:45
  Speaker 3: One of the only great things about the newest versions
• 1:13:48
  Speaker 3: of our score, which is Fyco ten T, is it
• 1:13:50
  Speaker 3: does ignore paid collections. So if you have collections that
• 1:13:54
  Speaker 3: you have not been able to get removed. If you
• 1:13:57
  Speaker 3: pay those off by way of settlement or or you know,
• 1:14:00
  Speaker 3: if you paid in four, then that account will be
• 1:14:03
  Speaker 3: taken out of the consideration of your Fyco ten T score.
• 1:14:07
  Speaker 3: So that's great news for people who have been affected
• 1:14:10
  Speaker 3: by collections their Fightco tent T score if they pay it,
• 1:14:15
  Speaker 3: you know, it will increase as a result of that.
• 1:14:17
  Speaker 4: Right, and then let me see here.
• 1:14:26
  Speaker 1: Can you go back to that slot for a second,
• 1:14:27
  Speaker 1: because maybe you can clear this up for me. So
• 1:14:30
  Speaker 1: your Fyco eight could be a score. Let's say it's
• 1:14:33
  Speaker 1: a six ninety, right, but that classic Fycle two four
• 1:14:38
  Speaker 1: five that actually could be different. Right. So I'm saying
• 1:14:40
  Speaker 1: that because I actually experienced that, Like I had a score.
• 1:14:43
  Speaker 1: I'm thinking like, oh, I'm going to get approved for
• 1:14:44
  Speaker 1: this mortgage. It was a pretty good score. And then
• 1:14:47
  Speaker 1: they went back and looked at my classic Fycle because
• 1:14:49
  Speaker 1: that was for the mortgage, and it was drastically different.
• 1:14:52
  Speaker 1: It was like, I think it was like five to
• 1:14:54
  Speaker 1: seventy something. I'm like, wait, and I had to get
• 1:14:57
  Speaker 1: an explanation on that. So they don't always have to
• 1:14:59
  Speaker 1: be like the same, right, it definitely could it could
• 1:15:03
  Speaker 1: be different.
• 1:15:04
  Speaker 3: They're hardly ever the same. I tell people all the time, like,
• 1:15:06
  Speaker 3: if they are all the same, there would be more
• 1:15:08
  Speaker 3: so there would be more shocking to me to see
• 1:15:10
  Speaker 3: all of them being the same, simply because each of
• 1:15:12
  Speaker 3: those scores are based on a slightly different algorithm for
• 1:15:16
  Speaker 3: a specific reason. So the classic Fyco is a mortgage score,
• 1:15:19
  Speaker 3: so they will grade installment based accounts more heavily than
• 1:15:25
  Speaker 3: let's say, like a fight on a score, which will
• 1:15:27
  Speaker 3: consider like credit card accounts and your utilization more important
• 1:15:31
  Speaker 3: than your behavior on a loan, so they will priority
• 1:15:35
  Speaker 3: each score model will prioritize different things based on the
• 1:15:38
  Speaker 3: industry that they are selling it to, So it's industry specific.
• 1:15:42
  Speaker 3: If you are seeking a car, most most auto lenders
• 1:15:46
  Speaker 3: will will will will pick Fyco six, which is our
• 1:15:51
  Speaker 3: auto score, and all of it. You know, it's just
• 1:15:53
  Speaker 3: it's just slightly different variations of the Fyco score tailor
• 1:15:57
  Speaker 3: to specific industries. So yeah, it's the classic fight Oh
• 1:16:02
  Speaker 3: which is are the classic? It's the oldest version, it
• 1:16:04
  Speaker 3: is the most antiquated version, and it's the hardest to
• 1:16:08
  Speaker 3: increase like that, that score is the most stubborn score.
• 1:16:12
  Speaker 3: But the great news is the new the new credit
• 1:16:15
  Speaker 3: scores FYO TINT and Advantaged four point zero. It was
• 1:16:18
  Speaker 3: actually approved to be used as the new standard for
• 1:16:22
  Speaker 3: mortgage scores. So after second quarter of this year, the
• 1:16:27
  Speaker 3: Federal Housing Association they like any Fennie made, any Fenny
• 1:16:32
  Speaker 3: made loans, pretty Mac loans, whatever any government backed loans,
• 1:16:36
  Speaker 3: they will only base our approval, our mortgage approval off
• 1:16:40
  Speaker 3: of FYCO ten T and Vantage four point zero. So
• 1:16:42
  Speaker 3: we no longer will have to deal with the classic
• 1:16:45
  Speaker 3: FIGHTO scores. They're being completely just they're going away like
• 1:16:50
  Speaker 3: they're being antiquated.
• 1:16:51
  Speaker 4: Like we no one will be No one will use.
• 1:16:53
  Speaker 3: Those scores anymore after second quarter of this year, which
• 1:16:57
  Speaker 3: is why it's so important that right now people are
• 1:17:00
  Speaker 3: making the changes and are aware of FYCO ten T
• 1:17:05
  Speaker 3: and in how it is going to impact us differently,
• 1:17:08
  Speaker 3: because those are going to be the new standard, like
• 1:17:11
  Speaker 3: it's going to be the new standard across multiple industries,
• 1:17:14
  Speaker 3: not even just mortgage.
• 1:17:16
  Speaker 1: And that that helps a lot of borrowers, right because
• 1:17:18
  Speaker 1: if I'm using a standard, my score is going to
• 1:17:20
  Speaker 1: be high, I get a better indust rate.
• 1:17:23
  Speaker 7: Yeah, it'll help, it'll it'll help. So it'll help if
• 1:17:29
  Speaker 7: you are if you have common if you have been
• 1:17:33
  Speaker 7: responsible with your with building credit and making sure you
• 1:17:35
  Speaker 7: pay your credit card back, making sure you're not getting
• 1:17:38
  Speaker 7: collections and stuff like that, then your facult score will
• 1:17:41
  Speaker 7: likely increase.
• 1:17:44
  Speaker 3: You know, it will likely increase. However, if you have
• 1:17:47
  Speaker 3: not been doing that, then your facultens score is absolutely
• 1:17:52
  Speaker 3: going to be lower than the scores that you're used
• 1:17:55
  Speaker 3: to dealing with because of the trended data. So trended
• 1:17:58
  Speaker 3: data is because, like I said, if your trends are
• 1:18:00
  Speaker 3: showing you sporadically are paying your credit card off, like
• 1:18:05
  Speaker 3: one month you were, you max it out, the next
• 1:18:07
  Speaker 3: month you pay it down to ten percent, the next
• 1:18:09
  Speaker 3: month you pay you report twenty percent, that sporadic utilization
• 1:18:16
  Speaker 3: will cause a drastic increase in your FICO ten T
• 1:18:19
  Speaker 3: because it's based on trends. What what is your trends
• 1:18:22
  Speaker 3: showing if they if it is not, if your utilization
• 1:18:25
  Speaker 3: is not showing a negative incline in terms of the
• 1:18:29
  Speaker 3: balances that you are reporting, then you you will be
• 1:18:33
  Speaker 3: penalized for that under FACO ten T. If oh, another
• 1:18:41
  Speaker 3: big changes if you have a if you are transferring
• 1:18:44
  Speaker 3: debt across your credit profile. For example, like if you
• 1:18:48
  Speaker 3: are using a personal loan to pay off credit card debt,
• 1:18:52
  Speaker 3: a very common strategy that a lot of people use.
• 1:18:55
  Speaker 3: Fyco tant actually will penalize you for that, so it
• 1:19:00
  Speaker 3: is no longer that's no longer going to help us,
• 1:19:02
  Speaker 3: which you know that that that's a little that's a
• 1:19:04
  Speaker 3: little unfortunate because a lot of people will take out
• 1:19:07
  Speaker 3: like a loan in order to to pay down their
• 1:19:09
  Speaker 3: credit card debt or pay off their credit card debt
• 1:19:11
  Speaker 3: because the heavy interest that's associated with credit card debt,
• 1:19:14
  Speaker 3: right or to just stop that interest from mounting. That's
• 1:19:17
  Speaker 3: a very common practice that has been used for ages.
• 1:19:21
  Speaker 3: But unfortunately Fycott views that as not you decreasing your debt.
• 1:19:26
  Speaker 3: They just view it as you migrating the debt, right like,
• 1:19:29
  Speaker 3: so they penalize you for that. There's not a steady
• 1:19:33
  Speaker 3: decline in your debt overall debt to income ratio, then
• 1:19:39
  Speaker 3: you'll you'll be penalized. You'll be penalized. So yeah, it's
• 1:19:43
  Speaker 3: it's a lot tougher on us because, like I said,
• 1:19:45
  Speaker 3: you could have you could have done something or reported
• 1:19:47
  Speaker 3: a high utilization over a year ago, and that that
• 1:19:50
  Speaker 3: one month is still affecting, will still be affecting you
• 1:19:53
  Speaker 3: for the next four years. And in case people don't understand,
• 1:19:58
  Speaker 3: like as of now, are utilization refreshes every month.
• 1:20:01
  Speaker 4: Utilization keeps or holds in a record.
• 1:20:04
  Speaker 3: So if I if I max out my cars last
• 1:20:06
  Speaker 3: month and then this month I get them down to
• 1:20:08
  Speaker 3: under ten percent, I'm going to be accredited back all
• 1:20:10
  Speaker 3: the points that I lost last month. Like it holds
• 1:20:13
  Speaker 3: a record. Utilization is per month right as of now.
• 1:20:17
  Speaker 3: Not if I go to a t now you have
• 1:20:19
  Speaker 3: to worry about every single utilization that you have reported
• 1:20:23
  Speaker 3: for the last twenty four months because that will affect
• 1:20:26
  Speaker 3: you for the next two years.
• 1:20:28
  Speaker 1: So yeah, well that's not that sucks. But one good thing.
• 1:20:34
  Speaker 1: Medical debt no longer part of the credit report.
• 1:20:36
  Speaker 3: Yes, yes, medical debt. Any medical collection on your credit
• 1:20:39
  Speaker 3: report under five hundred dollars automatically has to be deleted
• 1:20:42
  Speaker 3: by law, or if you settle or pay off a
• 1:20:46
  Speaker 3: medical debt that was over five hundred dollars, then it
• 1:20:49
  Speaker 3: has to be removed.
• 1:20:51
  Speaker 4: In addition to that, you're lend your doctor, you're a provider.
• 1:20:54
  Speaker 3: They can't even send your a medical collection to the
• 1:21:00
  Speaker 3: credit uros until they have given you at least eighteen
• 1:21:02
  Speaker 3: months to pay or like whatever you owe from the
• 1:21:05
  Speaker 3: date of from from from your visit. Right, so they
• 1:21:09
  Speaker 3: have to give you eighteen months to to pay it
• 1:21:11
  Speaker 3: if you haven't paid it. If you failed to pay
• 1:21:13
  Speaker 3: it and you owe them more than five hundred dollars,
• 1:21:15
  Speaker 3: that's the only case that they can send it to
• 1:21:16
  Speaker 3: the credit buros. But most medical collections usually fall under
• 1:21:22
  Speaker 3: five hundred dollars because most of them are like copays
• 1:21:24
  Speaker 3: and stuff that people didn't pay. Those don't qualify for
• 1:21:26
  Speaker 3: our credit reports anymore. So that's amazing, Like, yeah, that's awesome.
• 1:21:33
  Speaker 3: So that that's ay, that's a plus for most for
• 1:21:36
  Speaker 3: a lot of people.
• 1:21:39
  Speaker 2: How often should you check your credit score?
• 1:21:43
  Speaker 3: I mean, I believe that you should have credit monitor
• 1:21:46
  Speaker 3: and so you can you are alerted if anything changes. Know,
• 1:21:50
  Speaker 3: you shouldn't expect like your credit reports to change drastically monthly,
• 1:21:54
  Speaker 3: but you should always be aware of what's going on
• 1:21:56
  Speaker 3: because if somebody is stealing your identity, is applying for
• 1:21:59
  Speaker 3: things in your there should you should always have an
• 1:22:01
  Speaker 3: eye on your credit report, even if you are only
• 1:22:04
  Speaker 3: utilizing free credit monitoring apps like credit Corma. Right, don't
• 1:22:08
  Speaker 3: take the score that they're reporting as law. Like the
• 1:22:11
  Speaker 3: score is not your Fyco score, it's going to be off.
• 1:22:14
  Speaker 3: Don't take that at face value. However, the components of
• 1:22:17
  Speaker 3: your credit profile and the accounts and all that those
• 1:22:20
  Speaker 3: are usually accurate. So in order to just keep an
• 1:22:24
  Speaker 3: eye on your credit profile to so you know what's
• 1:22:26
  Speaker 3: going on. If you don't want to pay for a
• 1:22:29
  Speaker 3: credit monitoring like my FICO, get get Credit Carma, get,
• 1:22:34
  Speaker 3: I don't even know credit says to me, it's a
• 1:22:36
  Speaker 3: lot of apps. Most bank apps will give us our
• 1:22:40
  Speaker 3: advantage score for free, but always have a eye on
• 1:22:43
  Speaker 3: what's going on on your credit profile. I will specifically
• 1:22:46
  Speaker 3: recommend that at least twice the year everyone pulls their
• 1:22:48
  Speaker 3: official credit report.
• 1:22:49
  Speaker 4: That is so important.
• 1:22:51
  Speaker 3: Do not think that your credit monitoring replaces your credit report.
• 1:22:56
  Speaker 3: Your credit monitoring app can only go back two years
• 1:22:59
  Speaker 3: and it'll only has I want to say, for the
• 1:23:05
  Speaker 3: of the details of each account. Your real credit report
• 1:23:09
  Speaker 3: is where you will get all the information per account,
• 1:23:13
  Speaker 3: especially if you are challenging your credit report or are
• 1:23:16
  Speaker 3: disputing the accuracy. Never dispute based on credit monitoring. Always
• 1:23:19
  Speaker 3: dispute based on your official credit report, because there again
• 1:23:22
  Speaker 3: is just a lot more information that you're able to
• 1:23:25
  Speaker 3: make sure that it's you know, validated, so at least
• 1:23:28
  Speaker 3: like a year to get your official reports.
• 1:23:30
  Speaker 4: But have credit monitor for sure?
• 1:23:33
  Speaker 1: Think you I have it?
• 1:23:35
  Speaker 2: Any anything else that we need to cover before?
• 1:23:39
  Speaker 1: Cool? Rap?
• 1:23:43
  Speaker 3: I mean I could go out day, but it's just
• 1:23:45
  Speaker 3: like I think that as long as they incorporate whatever. However,
• 1:23:48
  Speaker 3: many tips that we talked about today, each of those
• 1:23:52
  Speaker 3: tips can cause thirty plus points increase in one's credit score.
• 1:23:58
  Speaker 3: So as long as you, as long as the person
• 1:24:02
  Speaker 3: actually put them into action, you know, do the things
• 1:24:05
  Speaker 3: and and and follow the advice, then they should see
• 1:24:09
  Speaker 3: an increase in their credit score. And it's it's one
• 1:24:13
  Speaker 3: of those Like I said, those are tried and true methods.
• 1:24:16
  Speaker 4: They work.
• 1:24:16
  Speaker 3: Doesn't matter what your credit profile look like, it doesn't
• 1:24:18
  Speaker 3: matter how bad your credit score is. Those tips work
• 1:24:22
  Speaker 3: because they are based solely on how our credit scores
• 1:24:25
  Speaker 3: are allocated in the algorithm. And it isn't like there
• 1:24:29
  Speaker 3: are no exceptions. There are no exceptions. There is no
• 1:24:31
  Speaker 3: credit report too bad to repair, no credit score too
• 1:24:34
  Speaker 3: low to increase, that is no such thing. The lower
• 1:24:38
  Speaker 3: your credit score is, the more points you have to obtain,
• 1:24:43
  Speaker 3: Like the more points you can get. So you the
• 1:24:46
  Speaker 3: lower the lawyer your credit score is, the more you
• 1:24:47
  Speaker 3: should be trying to seek you know, in getting as
• 1:24:51
  Speaker 3: many points as possible. And just one last point, the
• 1:24:54
  Speaker 3: only way that you're able to to overcome bad credit
• 1:24:58
  Speaker 3: is by building good credit. There is no substitute, there
• 1:25:01
  Speaker 3: is no workaround. You can't credit repair your way to
• 1:25:05
  Speaker 3: good credit. You can't dispute your way to good credit.
• 1:25:07
  Speaker 3: The only thing that will lead to good credit is building. Yeah,
• 1:25:11
  Speaker 3: the only thing that will lead to good credit is
• 1:25:13
  Speaker 3: building credit. That's the only option. There is no reason
• 1:25:16
  Speaker 3: to pay nobody to fix your credit. You can do
• 1:25:19
  Speaker 3: it yourself because the fixing and what will cause the
• 1:25:22
  Speaker 3: most increases in your credit score, consistent increases, is building,
• 1:25:26
  Speaker 3: and nobody can build for you. You have to build for yourself.
• 1:25:29
  Speaker 3: So I think that's probably like the point that I
• 1:25:30
  Speaker 3: want to drive home. Your credit score is.
• 1:25:33
  Speaker 4: The way it is is at.
• 1:25:35
  Speaker 3: The score that it is because maybe you just were
• 1:25:38
  Speaker 3: not aware of how the credit scores are broken down.
• 1:25:41
  Speaker 4: But there are very easy and.
• 1:25:42
  Speaker 3: Actionable things that you can do to increase your credit
• 1:25:45
  Speaker 3: score and see a media increase within the next few
• 1:25:48
  Speaker 3: building cycles.
• 1:25:49
  Speaker 4: Just do it.
• 1:25:50
  Speaker 3: Stop paying people money to fix it and just build
• 1:25:52
  Speaker 3: your own credit.
• 1:25:54
  Speaker 1: Yeah, and we got time. This is the perfect time
• 1:25:55
  Speaker 1: of the year, right to the top of the year.
• 1:25:58
  Speaker 1: I know people are running coming into some money hopefully
• 1:26:01
  Speaker 1: over the next couple of months that Fyco ten is
• 1:26:04
  Speaker 1: a real thing, and so we have some time before
• 1:26:06
  Speaker 1: that hits, because it's going to get a little bit
• 1:26:07
  Speaker 1: tough on us to clear this up, because this is
• 1:26:10
  Speaker 1: one of those things. If you're trying to get a
• 1:26:11
  Speaker 1: home loan, if you're trying to get a call loan,
• 1:26:13
  Speaker 1: you're trying to get a cell phone.
• 1:26:15
  Speaker 3: Within the next two years, So you don't have to
• 1:26:17
  Speaker 3: be in the market right now. If you know you
• 1:26:19
  Speaker 3: about to buy houses in the next two years, you
• 1:26:21
  Speaker 3: need to absolutely be making sure that you are in
• 1:26:24
  Speaker 3: line with Fyco ten t because that's going to determine
• 1:26:26
  Speaker 3: if you get approved or not two years from now.
• 1:26:29
  Speaker 4: So yeah, I.
• 1:26:32
  Speaker 2: Appreciate all the information. How can the people get in
• 1:26:35
  Speaker 2: contact with you? Follow you on social media, all that
• 1:26:37
  Speaker 2: type stuff.
• 1:26:39
  Speaker 3: Shanda Martin on pretty much every platform. If you want
• 1:26:42
  Speaker 3: more detailed information about the topics that we discussed, I
• 1:26:46
  Speaker 3: typically pick one topic and do a full webinar on
• 1:26:51
  Speaker 3: so and they're all available for free on my YouTube channel,
• 1:26:54
  Speaker 3: and yeah, just searchial on YouTube, like especially for the
• 1:26:56
  Speaker 3: FIGHTO ten T video specifically, everyone should go watch that.
• 1:26:59
  Speaker 3: But I broke it down and told you every single
• 1:27:03
  Speaker 3: thing that's going to change everything that you can expect,
• 1:27:05
  Speaker 3: how to prepare for it. So that's that's super relevant
• 1:27:09
  Speaker 3: and important for for now. But I also address all
• 1:27:12
  Speaker 3: most most other credit topics as well, and I do
• 1:27:15
  Speaker 3: full webinars. They are free. The only thing I want
• 1:27:18
  Speaker 3: in exchange is like you applying the steps. Please don't
• 1:27:22
  Speaker 3: just view and not do. Yeah, so just apply them
• 1:27:26
  Speaker 3: and then that's it and pass it on to a
• 1:27:28
  Speaker 3: friend or a family member.
• 1:27:29
  Speaker 4: That's it.
• 1:27:31
  Speaker 1: And if you're in EU, y l you. Shonda was
• 1:27:36
  Speaker 1: like she extended herself, over extended herself. She said, a
• 1:27:38
  Speaker 1: three part series for us, right, she came back three
• 1:27:41
  Speaker 1: times and it was incredible. So again we think you
• 1:27:44
  Speaker 1: always about the information and again, like you said, the
• 1:27:47
  Speaker 1: information is on us, the applications on y'all. Yep, all right,
• 1:27:50
  Speaker 1: so let's make sure we execute.
• 1:27:52
  Speaker 3: Yeah, all right, Well, thank you guys for having.
• 1:27:54
  Speaker 1: Me follow follow all right, Gus, there you have it.
• 1:27:58
  Speaker 1: Another another great so under the belt.
• 1:28:01
  Speaker 2: So may show you utilize all this information. Finally important, Yes, yes, yes,
• 1:28:07
  Speaker 2: I will see you guys later.
• 1:28:09
  Speaker 5: An illegal alien from Guatemala charged with raping a child
• 1:28:13
  Speaker 5: in Massachusetts. An MS thirteen gang member from Al Salvador
• 1:28:17
  Speaker 5: accused of murdering a Texas. Man of Venezuelan charged with
• 1:28:21
  Speaker 5: filming and selling child pornography in Michigan. These are just
• 1:28:25
  Speaker 5: some of the heinous migrant criminals caught because of President
• 1:28:29
  Speaker 5: Donald J.
• 1:28:29
  Speaker 4: Trump's leadership.
• 1:28:30
  Speaker 5: I'm Christy nom the United States Secretary of Homeland Security.
• 1:28:34
  Speaker 5: Under President Trump, attempted illegal border crossings are at the
• 1:28:38
  Speaker 5: lowest levels ever recorded, and over one hundred thousand illegal
• 1:28:42
  Speaker 5: aliens have been arrested. If you are here illegally, your
• 1:28:46
  Speaker 5: next you will be fine nearly one thousand dollars a day,
• 1:28:49
  Speaker 5: imprisoned and deported, you will never return. But if you
• 1:28:54
  Speaker 5: register using our CBP home app and leave now, you
• 1:28:57
  Speaker 5: could be allowed to return legally. Do what's right, leave now.
• 1:29:02
  Speaker 5: Under President Trump, America's laws, border and families will be protected.
• 1:29:07
  Speaker 1: Sponsored by the United States Department of Homeland Security,