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Transcript

Give Your Child a 700 Credit Score · Earn Your Leisure

• 0:00
  Speaker 1: I'm thinking in my mind, right, we got a lot
• 0:02
  Speaker 1: of people and it's like, as soon as you get
• 0:04
  Speaker 1: to college, you know, in the areas they sent you
• 0:06
  Speaker 1: those right before you went off, but in college they're
• 0:08
  Speaker 1: giving you credit cards right off the rip. Is this
• 0:11
  Speaker 1: something that young entrepreneurs could actually take advantage of?
• 0:13
  Speaker 2: No, I would say as soon as you're eighteen, if
• 0:18
  Speaker 2: to let you know, I'm trying to change the way
• 0:20
  Speaker 2: that people think of credit and start applying for credit.
• 0:23
  Speaker 2: So if parents start adding their kids at sixteen, when
• 0:27
  Speaker 2: they're eighteen, they already have a seven fifty eight hundred.
• 0:30
  Speaker 3: Yeah, talk about that. You know, I saw that on Instagram.
• 0:32
  Speaker 3: You just like sixteen. Yeah, can you explain that? Yep?
• 0:35
  Speaker 2: So, because it kind of goes in hand with your question.
• 0:37
  Speaker 2: So it's like, if you have kids that are that
• 0:40
  Speaker 2: are under eighteen and at least sixteen, you can add
• 0:43
  Speaker 2: them to your credit card, just like how I think
• 0:46
  Speaker 2: we say your grandmother, right, my mom, your mom, Your
• 0:48
  Speaker 2: mom added you to your card at eighteen, you got
• 0:50
  Speaker 2: all that history. But if she would have added you
• 0:52
  Speaker 2: at sixteen when you turned eighteen, now you have at
• 0:57
  Speaker 2: least two years of an active credit report. Because this
• 0:59
  Speaker 2: is the thing. Your credit report doesn't exist until something
• 1:02
  Speaker 2: happens on there your credit report. You're eight years old,
• 1:05
  Speaker 2: you don't have a credit report, you know what I mean.
• 1:07
  Speaker 2: So if you're sixteen and your parents add your mom
• 1:09
  Speaker 2: and dad each adds you to a credit card, that
• 1:11
  Speaker 2: should be the birthday. Givet hey, let me add you
• 1:13
  Speaker 2: to a credit card. Give it to you, start learning
• 1:16
  Speaker 2: how to use it, you know what I mean. Now
• 1:18
  Speaker 2: when you become eighteen, now you can get your own
• 1:21
  Speaker 2: American Express, your own thing. Now you don't need these
• 1:24
  Speaker 2: and what else? Don't you need trade lines? Because what
• 1:26
  Speaker 2: a lot of people the reason once again I'm going
• 1:28
  Speaker 2: to talk about tradelines a lot, you know what I mean,
• 1:31
  Speaker 2: Because people use trade lines because they want the history
• 1:34
  Speaker 2: and the limits. So start at a younger age. So
• 1:37
  Speaker 2: now when you're eighteen, you already know not only those
• 1:40
  Speaker 2: trade lines. I already got my own credit cards. And
• 1:42
  Speaker 2: now you're just starting it to where when you're in college.
• 1:45
  Speaker 2: Now your parents are going to open up an LLC
• 1:47
  Speaker 2: for you, open up this, do whatever, and now you
• 1:49
  Speaker 2: can use your own credit. You don't have to have
• 1:51
  Speaker 2: a code signer for a car, for an apartment, for anything.
• 1:55
  Speaker 2: And now we're changing the trajectory of when people apply,
• 1:58
  Speaker 2: by how they apply, and more importantly, why they apply.
• 2:01
  Speaker 1: Their parents be responsible. That's what I want to be
• 2:03
  Speaker 1: responsible with with your credit because, like you said, this
• 2:06
  Speaker 1: could definitely help your children.
• 2:07
  Speaker 3: Yep. So let me ask you this all right, so
• 2:10
  Speaker 3: business credit, let's get into this. What are the steps?
• 2:14
  Speaker 3: I know I wrote down some notes, so you you
• 2:17
  Speaker 3: have to have a legit business obviously tax id, So
• 2:20
  Speaker 3: explain it? Can you explain it different between business credit
• 2:24
  Speaker 3: personal credit? And then I guess there's a hybrid situation.
• 2:28
  Speaker 3: Like you said, amex is technically is not full business
• 2:30
  Speaker 3: credit because they still use your personal guarantee. So what
• 2:34
  Speaker 3: is the difference between like the MX situation where you
• 2:36
  Speaker 3: still got to have a personal guarantee and just full
• 2:39
  Speaker 3: fledged business credit.
• 2:40
  Speaker 2: Yep. So you know your personal credit, you use your
• 2:43
  Speaker 2: social right soci security number. When you start a business,
• 2:48
  Speaker 2: you get you know, whether it's an LLC, a C,
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  Speaker 2: corp escort, whatever the case is. You start a business
• 2:53
  Speaker 2: and you get your tax ID. Now you're actually a business.
• 2:56
  Speaker 2: And I want people to understand that because a lot
• 2:58
  Speaker 2: of people think when they have a sober pridery, but
• 3:00
  Speaker 2: they have a business, they really don't because you're still
• 3:02
  Speaker 2: using your social So you have to get a tax id,
• 3:06
  Speaker 2: and once you start building business credit, depending on what
• 3:11
  Speaker 2: you're going for, you're gonna have to use your personal credit.
• 3:14
  Speaker 2: Right So there's a difference between co signing and personal guarantee,
• 3:17
  Speaker 2: which you guys spoke about before. You know, if you're
• 3:20
  Speaker 2: personally guaranteeing something, you're using that to kind of like
• 3:23
  Speaker 2: get approved for it.
• 3:24
  Speaker 3: Right.
• 3:24
  Speaker 2: So, with a personal guarantee and an American Express credit card,
• 3:27
  Speaker 2: for instance, unless you're like a major corporation like Facebook, Walmart,
• 3:32
  Speaker 2: whatever the case is, you're not getting American Express without
• 3:36
  Speaker 2: using your social even though you have your tax id too.
• 3:39
  Speaker 2: Now you're using your personal credit as leverage to ultimately
• 3:42
  Speaker 2: get that American Express to Chase and everything else. So
• 3:45
  Speaker 2: the reason why I say it's not true business credit,
• 3:48
  Speaker 2: even though it does report to experience business, is that
• 3:52
  Speaker 2: you still got to use your personal credit for it,
• 3:53
  Speaker 2: which is not bad. But in the event that you default,
• 3:57
  Speaker 2: like you don't pay it and it gets charged off,
• 3:59
  Speaker 2: now it gets reported to your personal credit.
• 4:02
  Speaker 1: If the business card, it goes back to.
• 4:03
  Speaker 2: Yeah, So if you have an American Express and you
• 4:05
  Speaker 2: don't pay it first one amount of time and it
• 4:07
  Speaker 2: gets charged off. Now that business credit card is not
• 4:10
  Speaker 2: going to show up as a late payment, it's going
• 4:12
  Speaker 2: to go straight to charge off status. And now you're
• 4:15
  Speaker 2: going to go from having a seven hundred twenty credit
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  Speaker 2: score to now having a twenty thirty thousand dollars charge
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  Speaker 2: off American Express credit card from the business. And to
• 4:24
  Speaker 2: get that off, you gotta you know, you gotta pay it,
• 4:26
  Speaker 2: you know what I mean. You don't want to evade
• 4:27
  Speaker 2: that debt because now it's tied to your business, you
• 4:30
  Speaker 2: know what I mean. To get a true business credit
• 4:32
  Speaker 2: card or anything with business credit is by not having
• 4:35
  Speaker 2: to use your social and just by using your tax
• 4:39
  Speaker 2: id and maybe you're done in Bradstreet, which I know
• 4:42
  Speaker 2: we're going to we're going to cover, you know what
• 4:43
  Speaker 2: I mean. So that's true business credit is not using
• 4:47
  Speaker 2: your your Social Security number, your date of birth, your name, anything,
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  Speaker 2: and all you're using is got credit, your tax id,
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  Speaker 2: your EI in I mean, your your address, business you know,
• 4:56
  Speaker 2: business email, business phone number, and that's it, you know
• 4:59
  Speaker 2: what I mean. That that's the true business credit. But
• 5:01
  Speaker 2: when American Express would chase you know, those credit cards,
• 5:05
  Speaker 2: you're still going to have to use it even though
• 5:07
  Speaker 2: it's still going to report to your business credit.
• 5:09
  Speaker 3: Gotcha.
• 5:10
  Speaker 1: Gotcha. So you spoke about DMB. Can you explain what
• 5:13
  Speaker 1: it is, why it's so important and why people, especially
• 5:16
  Speaker 1: in business to know their number.
• 5:18
  Speaker 3: Yep.
• 5:18
  Speaker 2: So Done in Bradstreet is another like I guess you
• 5:23
  Speaker 2: can say social So notice, for personal credit, all you
• 5:26
  Speaker 2: have is one for business credit. There's like multiple things
• 5:29
  Speaker 2: you got to do to establish business credit. It's not easy.
• 5:32
  Speaker 2: So Dune in Bradstreet is kind of like the biggest
• 5:35
  Speaker 2: business credit reporting agency out there. And if you try
• 5:38
  Speaker 2: to get like a car, if you're trying to get
• 5:40
  Speaker 2: like net thirty accounts, if you're trying to get things
• 5:42
  Speaker 2: like American Express, they all check Done in Bradstreet and
• 5:45
  Speaker 2: they give you what's called a Dune's number. So if
• 5:48
  Speaker 2: you want to just create a Dune number, you just
• 5:51
  Speaker 2: go to dun and Bradstree's website. It's free, doesn't cost
• 5:54
  Speaker 2: you anything. You shouldn't be paying anybody to get you
• 5:57
  Speaker 2: a Done in Bradstreet number. It's free. So now what
• 6:00
  Speaker 2: it is is people will report what you're doing to
• 6:04
  Speaker 2: Done in brass Street because they have to house that
• 6:06
  Speaker 2: information somewhere, So that way, if you want to get
• 6:09
  Speaker 2: a car, if you want to get something in the
• 6:10
  Speaker 2: future and eventually not use a personal guarantee, that's what
• 6:14
  Speaker 2: they're going to check. You're done in Brasstreet credit report,
• 6:17
  Speaker 2: you know what I mean.
• 6:17
  Speaker 1: So they're logging the data, right.
• 6:19
  Speaker 2: They're logging the data. So it's like, now your American
• 6:22
  Speaker 2: Express is not being reported to Done in Brasstreet, though
• 6:25
  Speaker 2: it is being reported to Experience Business. So it's you know,
• 6:28
  Speaker 2: there's Equifax Business, Experience Business, and Done in Bradstreet. Just
• 6:32
  Speaker 2: like how we do three There's Experience, TransUnion and Equifax.
• 6:35
  Speaker 2: So there's three with this one, and there's even more,
• 6:37
  Speaker 2: but those are the main three, you know what I mean.
• 6:39
  Speaker 2: So now with done in Brass Street, now you're also
• 6:41
  Speaker 2: given a number that Now when you apply for something
• 6:44
  Speaker 2: on a business credit report, they're like, what she's Done's number,
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  Speaker 2: And a lot of people don't know that, like what
• 6:48
  Speaker 2: are you even talking about? So now they're going to
• 6:50
  Speaker 2: Dune and brass use number. They got to buy one,
• 6:52
  Speaker 2: and then they try to sell them this crazy software
• 6:54
  Speaker 2: and it's crazy monitoring and they don't need that, you
• 6:56
  Speaker 2: know what I mean. So eventually, once you start building
• 6:58
  Speaker 2: business credit, all you gotta apply for is with your
• 7:01
  Speaker 2: your your your business name, your tax ID, and you're
• 7:05
  Speaker 2: done in Bradstreet and it doesn't get reported anywhere, God
• 7:08
  Speaker 2: forbid you default on it. You're protecting your personal credit.
• 7:12
  Speaker 3: So if I want to get a business credit card
• 7:14
  Speaker 3: without personally guarantee, where would I go to for that?
• 7:17
  Speaker 2: So it depends on what type of business credit card
• 7:19
  Speaker 2: you're trying to get, because a lot of especially if
• 7:23
  Speaker 2: you're in business under two years, you're not going to
• 7:26
  Speaker 2: get it because you haven't built history, so personal guarantee, right,
• 7:29
  Speaker 2: there might be some out you know, there's like you know,
• 7:32
  Speaker 2: once you start building revenue and you start you can
• 7:34
  Speaker 2: show tax returns and you can show why these like
• 7:36
  Speaker 2: there's some local credit unieds that you can get a
• 7:40
  Speaker 2: business credit card without it. And then there's also like
• 7:43
  Speaker 2: some other business like like a gas card. Right, So
• 7:45
  Speaker 2: this is one of the things that we tell people
• 7:47
  Speaker 2: is a gas card actually has a lot of value
• 7:50
  Speaker 2: in it because you can get an American I mean
• 7:52
  Speaker 2: a visa or a MasterCard business credit card that you
• 7:56
  Speaker 2: don't have to put your social on it. Yeah, you
• 7:59
  Speaker 2: know what I mean? And those Visa master Card business
• 8:01
  Speaker 2: credit cards are powerful because, yeah, it's tied to a
• 8:03
  Speaker 2: gas station, but it's a Visa mass card. So now
• 8:05
  Speaker 2: what you're doing is you're building your Visa master Card
• 8:08
  Speaker 2: business credit so that way you could eventually get a
• 8:12
  Speaker 2: credit card without it.
• 8:13
  Speaker 1: A wise woman spoke to us about gas cards is business.
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  Speaker 2: Gas cards are the hidden secret of business credit. My
• 8:23
  Speaker 2: graduates from my school being forced back drop drop my
• 8:29
  Speaker 2: drop back dropp