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GIVE YOUR CHILD A 700 CREDIT SCORE · Earn Your Leisure

• 0:01
  Speaker 1: Earners.
• 0:01
  Speaker 2: What's up. You ever walk into a small business and
• 0:03
  Speaker 2: everything just works like The checkout is fast, the receipts
• 0:07
  Speaker 2: are digital, tipping is a breeze, and you're out the
• 0:10
  Speaker 2: door before the line even builds. Odds are they're using Square.
• 0:15
  Speaker 2: We love supporting businesses that run on Square because it
• 0:18
  Speaker 2: just feels seamless. Whether it's a local coffee shop, a
• 0:21
  Speaker 2: vendor at a pop up market, or even one of
• 0:23
  Speaker 2: our merch partners, Square makes it easy for them to
• 0:26
  Speaker 2: take payments, manage inventory, and run their business with confidence,
• 0:31
  Speaker 2: all from one simple system. If you're a business owner
• 0:34
  Speaker 2: or even just thinking about launching something soon, Square is
• 0:38
  Speaker 2: hands down one of the best tools out there to
• 0:40
  Speaker 2: help you start, run, and grow. It's not just about payments,
• 0:44
  Speaker 2: it's about giving you time back so you can focus
• 0:47
  Speaker 2: on what matters most Ready. To see how Square can
• 0:49
  Speaker 2: transform your business, visit Square dot com backslash go backslash
• 0:54
  Speaker 2: eyl to learn more that Square dot com backslash, go
• 0:59
  Speaker 2: backslash eyl. Don't wait, don't hesitate. Let's Square handle the
• 1:03
  Speaker 2: back end so you can keep pushing your vision forward.
• 1:09
  Speaker 2: This episode is brought to you by P and C Bank,
• 1:12
  Speaker 2: a lot of people think podcasts about work are boring,
• 1:15
  Speaker 2: and sure they definitely can be, but understanding of professionals
• 1:19
  Speaker 2: routine shows us how they achieve their success little by little,
• 1:22
  Speaker 2: day after day. It's like banking with P and C Bank.
• 1:27
  Speaker 2: It might seem boring to save, plan and make calculated
• 1:29
  Speaker 2: decisions with your bank, but keeping your money boring is
• 1:33
  Speaker 2: what helps you live or more happily fulfilled life. P
• 1:36
  Speaker 2: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 1:41
  Speaker 2: Boring since eighteen sixty five is a service mark of
• 1:44
  Speaker 2: the PNC Financial Service Group, Inc. P and C Bank
• 1:47
  Speaker 2: National Association Member FDIC. I'm thinking in my mind, right,
• 1:53
  Speaker 2: we got a lot of people and it's like, as
• 1:55
  Speaker 2: soon as you get to college, you know in the
• 1:57
  Speaker 2: areensate they sent you those right before you went off
• 1:59
  Speaker 2: in college, they giving you credit cards right off the rip.
• 2:02
  Speaker 2: Is this something that young entrepreneurs could actually take advantage of?
• 2:05
  Speaker 1: No, I would say, as soon as you're eighteen, if
• 2:09
  Speaker 1: to let you know, I'm trying to change the way
• 2:12
  Speaker 1: that people think of credit and start applying for credit.
• 2:15
  Speaker 1: So if parents start adding their kids at sixteen, when
• 2:19
  Speaker 1: they're eighteen, they already have a seven fifty eight hundred.
• 2:21
  Speaker 3: Yeah, talk about that. You know, I saw that on Instagram.
• 2:24
  Speaker 3: You're just like sixteen. Yeah, can you explain that?
• 2:26
  Speaker 1: Yep? So, because it kind of goes in hand with
• 2:28
  Speaker 1: your question. So it's like, if you have kids that
• 2:31
  Speaker 1: are that are under eighteen and at least sixteen, you
• 2:34
  Speaker 1: can add them to your credit card, just like how
• 2:37
  Speaker 1: I think we say your grandmother, right, mom, your mom,
• 2:39
  Speaker 1: Your mom added you to your card, you got all
• 2:42
  Speaker 1: that history. But if she would have added you at sixteen,
• 2:45
  Speaker 1: when you turned eighteen, now you have at least two
• 2:49
  Speaker 1: years of an active credit report. Because this is the thing.
• 2:52
  Speaker 1: Your credit report doesn't exist until something happens on there
• 2:55
  Speaker 1: your credit report. You're eight years old, you don't have
• 2:57
  Speaker 1: a credit report, you know what I mean. So if
• 2:59
  Speaker 1: you're sixteen and your parents add your mom and dad
• 3:01
  Speaker 1: each add you to a credit card, that should be
• 3:03
  Speaker 1: the birthday gift. Hey, let me add you to a
• 3:05
  Speaker 1: credit card, give it to you, start learning how to
• 3:08
  Speaker 1: use it, you know what I mean. Now, when you
• 3:10
  Speaker 1: become eighteen, now you can get your own American Express,
• 3:14
  Speaker 1: your own thing. Now you don't need these and what
• 3:16
  Speaker 1: else don't you need trade lines because what a lot
• 3:18
  Speaker 1: of people the reason once again, I'm going to talk
• 3:20
  Speaker 1: about tradelines a lot. You know what I mean, because
• 3:23
  Speaker 1: people use trade lines because they want the history and
• 3:26
  Speaker 1: the limits. So start at a younger age. So now
• 3:29
  Speaker 1: when you're eighteen, you already know not only those trade lines.
• 3:32
  Speaker 1: I already got my own credit cards. And now you're
• 3:34
  Speaker 1: just starting it to where when you're in college. Now
• 3:37
  Speaker 1: your parents are going to open up an LLC for you,
• 3:39
  Speaker 1: open up this do whatever, and now you can do
• 3:41
  Speaker 1: use your own credit. You don't have to have a
• 3:43
  Speaker 1: code signer for a car, for an apartment, for anything.
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  Speaker 1: And now we're changing the trajectory of when people apply,
• 3:50
  Speaker 1: but how they apply and more importantly, why they apply.
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  Speaker 2: Their parents be responsible, that's what I want to be
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  Speaker 2: responsible with your credit because, like you said, this could
• 3:58
  Speaker 2: definitely help your children.
• 3:59
  Speaker 3: Yep. So let me ask you this, all right, So
• 4:01
  Speaker 3: business credit, let's get into this. What are the steps?
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  Speaker 3: I know I wrote down some notes, so you you
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  Speaker 3: have to have a legit business obviously tax ID, so
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  Speaker 3: explain it. Can you explain it different between business credit
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  Speaker 3: personal credit? And then I guess there's a hybrid situation,
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  Speaker 3: like you said, amx is technically is not full business
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  Speaker 3: credit because they still use your personal guarantee. So what
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  Speaker 3: is the difference between like the MX situation where you
• 4:28
  Speaker 3: still got to have a personal guarantee and just full
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  Speaker 3: fledged business credit.
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  Speaker 1: Yep, So you know your personal credit, you use your
• 4:35
  Speaker 1: social right soci security number. When you start a business,
• 4:39
  Speaker 1: you get you know, whether it's an LLC, a C,
• 4:41
  Speaker 1: corp escort, whatever the case is. You start a business
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  Speaker 1: and you get your tax ID, now you're actually a business.
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  Speaker 1: And I want people to understand that because a lot
• 4:50
  Speaker 1: of people think when they have a sober partnership but
• 4:52
  Speaker 1: they have a business, they really don't because you're still
• 4:54
  Speaker 1: using your social So you have to get a tax id.
• 4:57
  Speaker 1: And once you start building business credit, depending on what
• 5:02
  Speaker 1: you're going for, you're gonna have to use your personal credit. Right.
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  Speaker 1: So there's a difference between co signing and personal guarantee,
• 5:09
  Speaker 1: which you guys spoke about before. You know, if you're
• 5:11
  Speaker 1: personally guaranteeing something, you're using that to kind of like
• 5:15
  Speaker 1: get approved for it, right, So with a personal guarantee
• 5:18
  Speaker 1: and an American Express credit card, for instance, unless you're
• 5:22
  Speaker 1: like a major corporation like Facebook, Walmart, whatever the case is,
• 5:25
  Speaker 1: You're not getting American Express without using your social even
• 5:28
  Speaker 1: though you have your tax ID too. Now you're using
• 5:32
  Speaker 1: your personal credit as leverage to ultimately get that American
• 5:35
  Speaker 1: Express to Chase and everything else. So the reason why
• 5:38
  Speaker 1: I say it's not true business credit, even though it
• 5:40
  Speaker 1: does report to Experience business, is that you still got
• 5:44
  Speaker 1: to use your personal credit for it, which is not bad.
• 5:47
  Speaker 1: But in the event that you default, like you don't
• 5:49
  Speaker 1: pay it and it gets charged off, now it gets
• 5:51
  Speaker 1: reported to your personal credit. If the business card, it
• 5:55
  Speaker 1: goes back to Yeah. So if you have an American
• 5:56
  Speaker 1: Express and you don't pay it first one amount of
• 5:58
  Speaker 1: time and it gets charged off, now that business credit
• 6:01
  Speaker 1: card is not going to show up as a late payment.
• 6:04
  Speaker 1: It's gonna go straight to charge off status. And now
• 6:07
  Speaker 1: you're going to go from having a seven hundred twenty
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  Speaker 1: credit score to now having a twenty thirty thousand dollars
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  Speaker 1: charge off American Express credit card from the business. And
• 6:15
  Speaker 1: to get that off, you gotta you know, you gotta
• 6:17
  Speaker 1: pay it, you know what I mean. You don't want
• 6:18
  Speaker 1: to evade that debt because now it's tied to your business.
• 6:22
  Speaker 1: You know what I mean, to get a true business
• 6:24
  Speaker 1: credit card or anything with business credit is by not
• 6:27
  Speaker 1: having to use your social and just by using your
• 6:31
  Speaker 1: tax id. And maybe you're done in Bradstreet, which I know,
• 6:33
  Speaker 1: we're gon we're gonna cover you know what I mean.
• 6:35
  Speaker 1: So that's true business credit is not using your your
• 6:39
  Speaker 1: Social Security number, your date of birth, your name, anything,
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  Speaker 1: and all you're using is got credit, your tax id,
• 6:45
  Speaker 1: your EI in I mean, your your address, business you know,
• 6:48
  Speaker 1: business email, business phone number, and that's it, you know
• 6:51
  Speaker 1: what I mean. That's the true business credit. But when
• 6:53
  Speaker 1: American Express would chase you know, those credit cards, you're
• 6:57
  Speaker 1: still gonna have to use it even though it's still
• 6:59
  Speaker 1: gonna to your business credit.
• 7:01
  Speaker 3: Gotcha?
• 7:01
  Speaker 1: Gotcha? So you spoke about DMB.
• 7:03
  Speaker 2: Can you explain what it is, why it's so important
• 7:07
  Speaker 2: and why people especially in business to know their number?
• 7:09
  Speaker 3: Yep.
• 7:10
  Speaker 1: So Done in Bradstreet is another like I guess you
• 7:15
  Speaker 1: can say social So notice for personal credit, all you
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  Speaker 1: have is one for business credit, there's like multiple things
• 7:21
  Speaker 1: you got to do to establish business credit. It's not easy.
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  Speaker 1: So Done in Bradstreet is kind of like the biggest
• 7:27
  Speaker 1: business credit reporting agency out there. And if you try
• 7:30
  Speaker 1: to get like a car, if you're trying to get
• 7:32
  Speaker 1: like net thirty accounts, if you're trying to get things
• 7:34
  Speaker 1: like American Express, they all check done in Bradstreet and
• 7:37
  Speaker 1: they give you what's called the Dune's number. So if
• 7:39
  Speaker 1: you want to just create a Dune's number, you just
• 7:42
  Speaker 1: go to dun and Bradstree's website. It's free, doesn't cost
• 7:46
  Speaker 1: you anything. You shouldn't be paying anybody to get you
• 7:49
  Speaker 1: a done in Bradstreet number. It's free. So now what
• 7:52
  Speaker 1: it is is people will report what you're doing to
• 7:56
  Speaker 1: Done in Bradstreet because they have to house that information somewhere.
• 7:59
  Speaker 1: So that way, if you want to get a car,
• 8:01
  Speaker 1: if you want to get something in the future and
• 8:03
  Speaker 1: eventually not use a personal guarantee, that's what they're gonna check.
• 8:06
  Speaker 1: You're done in Brasstreet credit report, you know what I mean.
• 8:09
  Speaker 1: So they're logging the data, right, They're logging the data.
• 8:12
  Speaker 1: So it's like, now your American Express is not being
• 8:14
  Speaker 1: reported to done in Brasstreet though it is being reported
• 8:17
  Speaker 1: to Experience Business. So it's you know, there's Equifax Business,
• 8:21
  Speaker 1: Experience Business and done in Bradstreet, just like how we
• 8:24
  Speaker 1: do three. There's experience, TransUnion, and Equifax, So there's three
• 8:28
  Speaker 1: with this one, and there's even more, but those are
• 8:29
  Speaker 1: the main three, you know what I mean. So now
• 8:31
  Speaker 1: with done in Brass Street, now you're also given a
• 8:33
  Speaker 1: number that Now when you apply for something on a
• 8:36
  Speaker 1: business credit report, they're like, what she's done's number? And
• 8:38
  Speaker 1: a lot of people don't know that, like what are
• 8:40
  Speaker 1: you even talking about? So now they're going to Dune
• 8:42
  Speaker 1: and brass use number. They got to buy one, and
• 8:44
  Speaker 1: then they try to sell them this crazy software and
• 8:46
  Speaker 1: it's crazy monitoring and they don't need that, you know
• 8:48
  Speaker 1: what I mean. So eventually, once you start building business credit,
• 8:51
  Speaker 1: all you got to apply for is with your your
• 8:54
  Speaker 1: business name, your tax id, and you're done in Brasstreet
• 8:58
  Speaker 1: and it doesn't get reported anywhere I forbid your default
• 9:00
  Speaker 1: on it. You're protecting your personal credit.
• 9:03
  Speaker 3: So if I want to get a business credit card
• 9:05
  Speaker 3: without personally guarantee, where would I go to for that?
• 9:09
  Speaker 1: So it depends on what type of business credit card
• 9:11
  Speaker 1: you're trying to get, because a lot of especially if
• 9:14
  Speaker 1: you're in business under two years, you're not gonna get
• 9:17
  Speaker 1: it because you haven't built history. So personal guarantee right there,
• 9:21
  Speaker 1: might be some out you know, there's like you know,
• 9:23
  Speaker 1: once you start building revenue and you start you can
• 9:26
  Speaker 1: show tax returns and you can show why these like
• 9:28
  Speaker 1: there's some local credit unieds that you can get a
• 9:31
  Speaker 1: business credit card without it. And then there's also like
• 9:35
  Speaker 1: some other business like like a gas card. Right, So
• 9:37
  Speaker 1: this is one of the things that we tell people
• 9:38
  Speaker 1: is a gas card actually has a lot of value
• 9:41
  Speaker 1: in it because you can get an American I mean
• 9:44
  Speaker 1: a Visa or a MasterCard business credit card that you
• 9:48
  Speaker 1: don't have to put your social on it. Yeah, you
• 9:50
  Speaker 1: know what I mean. And those Visa MasterCard business credit
• 9:53
  Speaker 1: cards are powerful because yeah, it's tied to a gas station,
• 9:56
  Speaker 1: but it's a Visa mass card. So now what you're
• 9:57
  Speaker 1: doing is you're building your Visa mas car business credit
• 10:02
  Speaker 1: so that way you could eventually get a credit card
• 10:04
  Speaker 1: without it.
• 10:05
  Speaker 2: A wise woman spots to us about gas cards. Yeahtham
• 10:08
  Speaker 2: is business.
• 10:09
  Speaker 1: Gas cards are the hidden secret of business credit. My
• 10:14
  Speaker 1: graduates from my school being forced back drop drop drop backdrop.
• 10:33
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