Latest / Glovisor Podcast / Bad Credit Isn’t Normal — Here’s What’s Keeping You Broke (Ep 62)

Transcript

Bad Credit Isn’t Normal — Here’s What’s Keeping You Broke (Ep 62) · Glovisor Podcast

• 0:00
  Speaker 1: Understanding how to build, rebuild, and manage credit can be
• 0:03
  Speaker 1: a powerful step towards financial freedom. Welcome to the Glowvisor podcast,
• 0:10
  Speaker 1: where we explore business growth, communication, and personal development through
• 0:14
  Speaker 1: real conversations with people that make an impact. Our guest
• 0:17
  Speaker 1: is the founder of KLN Consulting, a company focused on
• 0:21
  Speaker 1: helping people grow, rebuild, and elevate their credit. She talks
• 0:25
  Speaker 1: about the realities of credit, the mistake that can hold
• 0:28
  Speaker 1: people back, and how understanding your credit can help you
• 0:32
  Speaker 1: make more informed financial decisions and pursue greater opportunities. Glowvisor
• 0:38
  Speaker 1: welcomes Sierra White.
• 0:40
  Speaker 2: Hi, I'm Sierra.
• 0:42
  Speaker 1: I can't wait to hear more about what you do.
• 0:46
  Speaker 1: So please tell us.
• 0:47
  Speaker 3: So I currently own a credit company and I also
• 0:51
  Speaker 3: help with business funding. So I help people be able
• 0:55
  Speaker 3: to understand their credit and help them put them in
• 0:57
  Speaker 3: a better financial position.
• 1:00
  Speaker 1: What inspired you to pursue this path?
• 1:02
  Speaker 3: What inspired me to go ahead and pursue this was
• 1:06
  Speaker 3: honestly my dad. He has been in the credit industry
• 1:09
  Speaker 3: since I was a little girl. He actually started Crystal
• 1:13
  Speaker 3: Clear Credit. And I just I've been working for him
• 1:17
  Speaker 3: since I was 16 years old. So he inspired me
• 1:20
  Speaker 3: to get into the credit industry, which is a funny story.
• 1:24
  Speaker 3: My dad actually from my 18th birthday got me credit
• 1:28
  Speaker 3: for my birthday.
• 1:30
  Speaker 2: So that's what inspired me as my dad.
• 1:33
  Speaker 1: This is a family business when you first started. Have
• 1:37
  Speaker 1: you gone on your own now? Yes.
• 1:39
  Speaker 3: So it was a family business, but then my dad
• 1:42
  Speaker 3: retired and I actually went ahead and I took over
• 1:45
  Speaker 3: his company and I started Kaelin Consulting.
• 1:48
  Speaker 1: You do the two aspects. You said to build, rebuild credit,
• 1:52
  Speaker 1: but you also do the financial side. When you're building
• 1:56
  Speaker 1: and rebuilding the credit, is that just for individuals or
• 1:59
  Speaker 1: is that for businesses as well?
• 2:01
  Speaker 2: It's for individuals and it's for businesses.
• 2:04
  Speaker 1: Are you seeing more people coming in with credit issues
• 2:07
  Speaker 1: because they don't understand the credit process or are they
• 2:11
  Speaker 1: just getting into a tough spot?
• 2:14
  Speaker 2: So we actually see both.
• 2:15
  Speaker 3: So a lot of people don't understand the credit process.
• 2:19
  Speaker 3: And because they don't understand the credit process, they end
• 2:21
  Speaker 3: up making mistakes at a younger age or they end
• 2:24
  Speaker 3: up putting themselves in a hard financial situation that's hard
• 2:28
  Speaker 3: for them to get out of. And regarding to people
• 2:32
  Speaker 3: and then on top of that, people do get put
• 2:35
  Speaker 3: into tough predicaments where it's hard for them to they
• 2:39
  Speaker 3: kind of dig themselves into a hole by getting credit cards,
• 2:43
  Speaker 3: maybe getting, you know, paying late on car payments.
• 2:47
  Speaker 2: Mortgages.
• 2:49
  Speaker 3: They end up paying late on their car payment and
• 2:52
  Speaker 3: eventually it just starts to keep accumulating. So honestly, it's
• 2:56
  Speaker 3: just both not understanding credit and being put in and
• 2:59
  Speaker 3: then getting into a financial situation where it's kind of
• 3:02
  Speaker 3: hard for them to get bailed out of. And that's
• 3:05
  Speaker 3: where I come into place is where so when they do, because,
• 3:08
  Speaker 3: you know, people make mistakes. So I help them give
• 3:10
  Speaker 3: them that fresh start in order to put them in
• 3:12
  Speaker 3: a better financial position.
• 3:14
  Speaker 1: Now on the financial side, are you working with just
• 3:17
  Speaker 1: individuals or businesses as well?
• 3:19
  Speaker 3: So I work with both. So I do work with
• 3:21
  Speaker 3: individuals and I also do work with businesses. Kind of
• 3:25
  Speaker 3: getting into businesses, I also work with people who are
• 3:28
  Speaker 3: already established businesses and also work with people who are
• 3:31
  Speaker 3: trying to build a business from the ground up.
• 3:35
  Speaker 2: So I work with both.
• 3:36
  Speaker 1: Wow, that's a lot. Now, if one of our listeners
• 3:40
  Speaker 1: wanted to work with you today, what does that journey
• 3:42
  Speaker 1: look like?
• 3:43
  Speaker 2: That's actually a really, really good question. Okay.
• 3:46
  Speaker 3: So what that journey looks like is they would go
• 3:48
  Speaker 3: ahead and reach out to me. They would either call
• 3:52
  Speaker 3: my number, which is 302-592-7356. They would either give me
• 3:56
  Speaker 3: a call or go to my social media or my
• 3:58
  Speaker 3: website page at klnconsulting.com. They would reach out to me.
• 4:04
  Speaker 3: And once they reach out to me, they will go
• 4:06
  Speaker 3: ahead and start the onboarding process. They would get portal access,
• 4:11
  Speaker 3: which they can reach out. I'm very available to my clients.
• 4:13
  Speaker 3: They would get portal access. They would go through a consultation.
• 4:18
  Speaker 3: We would create a full blown roadmap for them as
• 4:21
  Speaker 3: they figure out what their goals are, where they, where
• 4:24
  Speaker 3: they want to be in life, what's their timeframe. So
• 4:28
  Speaker 3: we would go ahead and break that full, like fully
• 4:30
  Speaker 3: down into like a really full built out plan. Um, Normally,
• 4:36
  Speaker 3: after that, I will ask them, okay, do you want
• 4:39
  Speaker 3: to buy a home? Do you want to start a business?
• 4:41
  Speaker 3: And that will kind of help me direct them on
• 4:43
  Speaker 3: where they are looking to go. After that, we would
• 4:49
  Speaker 3: go ahead and monitor their credit and go from there
• 4:53
  Speaker 3: to help them put them in a better financial situation.
• 4:56
  Speaker 2: All right.
• 4:57
  Speaker 1: So it's a whole turnkey kind of thing. They come
• 4:59
  Speaker 1: to you from the beginning. And they tell you what
• 5:02
  Speaker 1: their goals are and then you sort of work in
• 5:05
  Speaker 1: that direction to try to get them to their goals.
• 5:08
  Speaker 3: I try to push my customers to open up an
• 5:10
  Speaker 3: LLC because that is so important and regarding just because
• 5:15
  Speaker 3: it's its own entity. And a lot of people will
• 5:18
  Speaker 3: mess up their personal credit or put everything on their
• 5:20
  Speaker 3: personal credit when they can honestly be putting everything on
• 5:23
  Speaker 3: their business credit. So I tried to steer my customers
• 5:26
  Speaker 3: no matter what to get business credit, to get business
• 5:30
  Speaker 3: credit cards, to get lines of credit, because that's very important.
• 5:34
  Speaker 3: I bought my first home when I was 21, bought
• 5:37
  Speaker 3: my dream car when I was 21, because I was
• 5:41
  Speaker 3: put in a financial position on building my business credit,
• 5:45
  Speaker 3: building my, just building my personal credit. My personal credit
• 5:50
  Speaker 3: was already built. My personal credit is sitting at a 796.
• 5:54
  Speaker 3: but building those things, right?
• 5:58
  Speaker 1: Can you tell us a little bit more about what
• 6:00
  Speaker 1: is that score?
• 6:01
  Speaker 3: So a 796, it actually is very good when it
• 6:05
  Speaker 3: comes to like the credit size. So, you know, credit
• 6:07
  Speaker 3: can range from 300 to the 850 range. So because
• 6:11
  Speaker 3: of that range, that puts me at very good and
• 6:14
  Speaker 3: exceptional will put me at about 800 to 850. So,
• 6:18
  Speaker 3: which I'm not to that range because definitely not yet.
• 6:22
  Speaker 3: But in order to kind of get to that range
• 6:24
  Speaker 3: that really honestly comes with credit age and just time.
• 6:28
  Speaker 1: Those are the ranges. Do we all have those scores
• 6:32
  Speaker 1: or do we get those only after we get credit
• 6:35
  Speaker 1: for the very first time?
• 6:37
  Speaker 3: That's actually a very good question, because when my credit
• 6:40
  Speaker 3: score first hit the 700s was 11. when my dad
• 6:44
  Speaker 3: added me on to a trade line. So a trade
• 6:46
  Speaker 3: line for people that don't know, a trade line is
• 6:49
  Speaker 3: where someone else's history becomes your history, right? So my
• 6:52
  Speaker 3: dad added me on to his credit card in order
• 6:55
  Speaker 3: to boost my credit score. And that's how he gave
• 6:58
  Speaker 3: me the gift of credit. So when it comes to,
• 7:02
  Speaker 3: not everybody have that. So not everybody's gonna start at
• 7:09
  Speaker 3: that place. I work with people who start from, a 540,
• 7:15
  Speaker 3: you know, even lower in the 400s. I have people
• 7:17
  Speaker 3: that started at 650 that got their first secured credit
• 7:20
  Speaker 3: card and that hit their credit report and they're at
• 7:23
  Speaker 3: a 680 or 670 or in the sixes. When it
• 7:29
  Speaker 3: comes to your starting, where you're starting at, you're always
• 7:33
  Speaker 3: going to start just because you have a 780, a
• 7:37
  Speaker 3: 790 doesn't mean you're going to get approved. And it
• 7:40
  Speaker 3: doesn't mean you're going to get approved for credit cards.
• 7:42
  Speaker 3: The banks can still deny you. It's about how your
• 7:45
  Speaker 3: profile is set up. And that's what I try to
• 7:50
  Speaker 3: help people with to make sure that they have a
• 7:52
  Speaker 3: really great profile. Because there's so many people, oh, I
• 7:56
  Speaker 3: have a 790 or 800 and are still getting denied
• 8:00
  Speaker 3: for loans or they're trying to get credit cards and
• 8:03
  Speaker 3: they're still getting denied.
• 8:06
  Speaker 2: That's why.
• 8:09
  Speaker 3: I try to make sure that they have, whether it's
• 8:12
  Speaker 3: a strong profile, so they're able to go ahead and
• 8:15
  Speaker 3: get what they want. Especially when it comes to whether
• 8:19
  Speaker 3: it's personal loans, SBA loans, because nine times out of 10,
• 8:25
  Speaker 3: you are going to have to be a personal guarantor,
• 8:27
  Speaker 3: especially if your business has been open less than two years.
• 8:30
  Speaker 2: So that's where it.
• 8:32
  Speaker 3: Comes with me. I try to make sure that people, again,
• 8:36
  Speaker 3: have that stronger profile. So to answer your question, no,
• 8:39
  Speaker 3: nobody just starts out at that 700 range. It really
• 8:44
  Speaker 3: does take work and effort to build up your whole
• 8:46
  Speaker 3: entire profile.
• 8:47
  Speaker 1: Now, I also heard that those FICO scores, the higher
• 8:52
  Speaker 1: they are, the less interest you pay. Is that true?
• 8:56
  Speaker 2: That is true.
• 8:57
  Speaker 3: So the higher your credit score is, the less interest
• 9:02
  Speaker 3: you do pay, whether it's cars. And right now, interest rates, honestly,
• 9:06
  Speaker 3: it's like super high right now.
• 9:10
  Speaker 2: But whether it's cars, whether it's loans, yes, that is true.
• 9:15
  Speaker 2: That is correct.
• 9:16
  Speaker 3: That's why I do try to motivate people to work
• 9:19
  Speaker 3: on their credit. But a lot of people in today's
• 9:23
  Speaker 3: society are They're not taking their credit seriously. The method
• 9:27
  Speaker 3: that a lot of people love is, you know, I
• 9:30
  Speaker 3: don't have the credit score. I'm going to try to
• 9:32
  Speaker 3: make it happen or I'm going to figure it out.
• 9:34
  Speaker 3: I hear that number so much as I'm going to
• 9:36
  Speaker 3: figure it out. But when are you going to be
• 9:39
  Speaker 3: tired of figuring it out? At some point, we talk
• 9:43
  Speaker 3: about generational wealth and we talk about how we want
• 9:45
  Speaker 3: to give generational wealth to our children and how we
• 9:48
  Speaker 3: want our children not to struggle, but we're not taking
• 9:51
  Speaker 3: the necessary steps to invest in ourselves. And that's why
• 9:55
  Speaker 3: with my company, I don't just let people slide by.
• 9:57
  Speaker 3: I you know, I teach you how not only I'll
• 10:01
  Speaker 3: fix your credit for sure, but I want to teach
• 10:04
  Speaker 3: you how to maintain it. And that's why I always
• 10:06
  Speaker 3: make sure like they have to show up at monthly meetings,
• 10:09
  Speaker 3: which these meetings are about an hour long.
• 10:11
  Speaker 2: We're going over budgeting.
• 10:13
  Speaker 3: We're going over, you know, because I always say my
• 10:16
  Speaker 3: motto is if you can't pay your bills, do not
• 10:18
  Speaker 3: pay me. So we're going we're going over what our
• 10:22
  Speaker 3: goals are, where they're at in their lives. I try
• 10:24
  Speaker 3: to just make sure people are held accountable when they
• 10:27
  Speaker 3: work with me. And I just I want to be
• 10:30
  Speaker 3: able to give them the knowledge. And that's why I'm
• 10:32
  Speaker 3: in this field, because I'm just I'm tired of seeing it.
• 10:35
  Speaker 1: Absolutely. And they don't even realize how much more that's
• 10:37
  Speaker 1: going to cost them, because the lower the FICO, the
• 10:40
  Speaker 1: higher the interest rate, they end up paying more money
• 10:43
  Speaker 1: on those loans over the life of it than it
• 10:46
  Speaker 1: would have been to work with you. to increase the
• 10:49
  Speaker 1: FICO and then get better interest rates.
• 10:51
  Speaker 2: Exactly.
• 10:52
  Speaker 3: And they don't, a lot of people don't see it
• 10:54
  Speaker 3: that way. They are more stuck in the now instead
• 10:58
  Speaker 3: of thinking about the future. And again, we go back
• 11:00
  Speaker 3: to that generational wealth. We go back to, it's the
• 11:03
  Speaker 3: same thing with life insurance. People don't want to pay
• 11:07
  Speaker 3: the money for the life insurance, but it can benefit
• 11:09
  Speaker 3: you in the long run. So it's just like, it's,
• 11:12
  Speaker 3: there's so many, you know, things that people really could do.
• 11:16
  Speaker 2: Like you, we, I don't want to take your money, right?
• 11:20
  Speaker 3: So I'd rather, you know, at the end of the day,
• 11:22
  Speaker 3: even if you use ChatDBT or Claude, or there's so
• 11:26
  Speaker 3: many systems out there that people could use to fix
• 11:29
  Speaker 3: their credit, but they just don't do it. And that's
• 11:32
  Speaker 3: where we just have to stop normalizing bad credit. And
• 11:35
  Speaker 3: I think so many people have normalized bad credit, and
• 11:38
  Speaker 3: that's not okay.
• 11:39
  Speaker 1: Yeah, but even if they use those tools, I think
• 11:41
  Speaker 1: the element that's a little different about working with you
• 11:44
  Speaker 1: is having the educational aspect of Because otherwise, you're going
• 11:47
  Speaker 1: to be back to square one again.
• 11:49
  Speaker 2: Yeah.
• 11:50
  Speaker 3: And I let them know, like, because the question I
• 11:52
  Speaker 3: get all the time, because I get almost, I get
• 11:55
  Speaker 3: a lot of people who reach out to me each.
• 11:58
  Speaker 2: And every day.
• 11:58
  Speaker 3: And the question I get is, you know, what do
• 12:02
  Speaker 3: you give? Like, what do you give that I can't
• 12:05
  Speaker 3: do myself? And it's just like, I give you the
• 12:08
  Speaker 3: knowledge piece. I give you the piece where I'm able
• 12:12
  Speaker 3: to sit down with you, walk you through on how
• 12:16
  Speaker 3: to handle your credit, you know, and I try to,
• 12:20
  Speaker 3: a lot of people are lazy too.
• 12:23
  Speaker 2: I don't know.
• 12:26
  Speaker 3: But so they rather, you know, just say, Hey, here,
• 12:29
  Speaker 3: fix my credit.
• 12:30
  Speaker 2: I fix it.
• 12:31
  Speaker 3: But then now they're coming back to me six months later.
• 12:33
  Speaker 3: I was like, Oh, this happened. Now I got to
• 12:36
  Speaker 3: fix it again.
• 12:37
  Speaker 2: So I just, I give that knowledge piece on how
• 12:39
  Speaker 2: to make credit work for you.
• 12:41
  Speaker 1: Now, would you be able to share with us one
• 12:43
  Speaker 1: client success story that shows pretty much the transformation your
• 12:47
  Speaker 1: work has had?
• 12:48
  Speaker 3: I have one client who actually started out with me
• 12:52
  Speaker 3: in May. They started out at a $ 550.
• 12:58
  Speaker 2: I believe.
• 12:59
  Speaker 3: And now he is sitting at a $ 786. When he
• 13:04
  Speaker 3: first came to me, he wanted to buy a home.
• 13:09
  Speaker 3: He worked with so many credit companies. He was just tired.
• 13:12
  Speaker 3: When I tell you this man has spent over $ 3, 000
• 13:15
  Speaker 3: in credit and trying to get help with his credit.
• 13:19
  Speaker 3: And he was just like, you know what? What's one
• 13:21
  Speaker 3: more time? I'm going to give you a shot. And
• 13:23
  Speaker 3: he didn't trust me. He didn't trust me. And a
• 13:25
  Speaker 3: lot of them don't trust you in the first place
• 13:27
  Speaker 3: because they think that you're just trying to scam them.
• 13:29
  Speaker 2: And that's not the case. And he was like, you know,
• 13:31
  Speaker 2: I have a good feeling about you. And I was like,
• 13:33
  Speaker 2: you know what? Thank you. And my motto is don't
• 13:36
  Speaker 2: refer me until after work is done. I'd rather you
• 13:38
  Speaker 2: not refer me.
• 13:40
  Speaker 3: So now we're working on helping him.
• 13:43
  Speaker 2: He didn't want to open up a business. He works
• 13:45
  Speaker 2: in tech.
• 13:46
  Speaker 3: But now we are not only helping him buy his
• 13:49
  Speaker 3: home in Texas because we partner with different mortgage companies
• 13:52
  Speaker 3: as well.
• 13:55
  Speaker 2: And now he's trying to buy his home.
• 13:56
  Speaker 3: And now we're actually working with him with the process
• 13:59
  Speaker 3: of not only that, but securing a $ 50, 000.
• 14:04
  Speaker 2: Business funding for a company that he wants to open.
• 14:08
  Speaker 1: But I can't believe that you had that much of
• 14:10
  Speaker 1: a change in your FICO score from the 500s to
• 14:13
  Speaker 1: 700s that quickly.
• 14:15
  Speaker 3: Yeah, it happened in three months. Three, yeah, three was August,
• 14:20
  Speaker 3: four months. It happened in four months. He started the
• 14:23
  Speaker 3: beginning of May. Now, August, you have four months.
• 14:27
  Speaker 1: If listeners only remember one thing from this conversation, what
• 14:30
  Speaker 1: do you hope that message is?
• 14:32
  Speaker 2: I would say the message that I will hope people
• 14:34
  Speaker 2: remember is to take your credit seriously. It's not a joke.
• 14:38
  Speaker 3: And you want to go ahead and create that generational
• 14:41
  Speaker 3: wealth for your family, for your children. And the start
• 14:45
  Speaker 3: is your credit. You need credit for everything. Jobs, cars, mortgages, apartments.
• 14:53
  Speaker 3: You need it for everything. And not only work on
• 14:56
  Speaker 3: your credit, but encourage your family, your friends to work
• 15:00
  Speaker 3: on theirs, too, because that's very important. And that's something
• 15:04
  Speaker 3: that I was taught at a very young age. And
• 15:05
  Speaker 3: that's something that I want to help you guys with
• 15:08
  Speaker 3: as well.
• 15:09
  Speaker 1: Great advice. Now, where can our audience connect with you
• 15:13
  Speaker 1: to find out more, learn more about your work and
• 15:17
  Speaker 1: continue this conversation?
• 15:18
  Speaker 3: So they can reach me at Cece, the CEO, which
• 15:22
  Speaker 3: is C-E-C-E, the CEO, on Instagram. Or they can honestly,
• 15:28
  Speaker 3: they can reach out to me personally at 302-592-7356 and give.
• 15:34
  Speaker 2: Me a call.
• 15:35
  Speaker 1: Now, Sierra, thank you so much for joining us. And
• 15:37
  Speaker 1: we really appreciate your time and the value you've shared.
• 15:40
  Speaker 2: Thank you so much. Thank you for having me. You're welcome.
• 15:45
  Speaker 1: Thank you, everyone, for listening. If this episode inspired you,
• 15:47
  Speaker 1: make sure you share it with someone who needs it.
• 15:50
  Speaker 1: And don't forget to follow the Globalizer podcast for more
• 15:52
  Speaker 1: conversations that make an impact. Till the next time.