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How to Build Credit in Marriage 💍 | Consolidation Tips & Low Credit Score Hacks 🔑 · Earn Your Leisure

• 0:00
  Speaker 1: This is the other part because we talk about the
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  Speaker 1: things that credit could affect, right, obviously your score, but
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  Speaker 1: it could affect loans and sometimes employment. But it also
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  Speaker 1: could affect relationships. This is important, right because you said
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  Speaker 1: you need to have maybe three to four items on
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  Speaker 1: your credit report, and some people when they're in relationships.
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  Speaker 1: We've seen I'm going to get a car, I didn't
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  Speaker 1: get approved. Can you co sign?
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  Speaker 2: I love this, well, yeah, asking a good question. This
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  Speaker 2: is this is why.
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  Speaker 1: Yeah, we've been known to do so talk about that.
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  Speaker 1: I mean, yes, co signing could be less.
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  Speaker 2: So one of the things that I do in my
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  Speaker 2: day to day is I'm a credit specialist specializing in
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  Speaker 2: mortgage scoring. Right, so I deal with a lot of
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  Speaker 2: people who can't see the close on their home, who
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  Speaker 2: need a few more points to get obtain a home loan. Now,
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  Speaker 2: this is one of the things that I see so much,
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  Speaker 2: and we need to change it. So when it comes
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  Speaker 2: to married couple spouses, make sure that the accounts are
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  Speaker 2: evenly distributed, right, So make sure make sure that one
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  Speaker 2: spouse does not have all of the is not the
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  Speaker 2: primary account holder account owner of all of the accounts,
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  Speaker 2: and then the other spouse usually like to stay at home,
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  Speaker 2: spouse is just co signed on all of the accounts.
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  Speaker 2: There is something within the Credit Card Act of two
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  Speaker 2: thousand and nine that says on every credit card application,
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  Speaker 2: legally you can use what's called household income. So if
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  Speaker 2: you're a spouse, if you have a spouse that maybe
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  Speaker 2: does not make a lot of money or you know,
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  Speaker 2: stays at home, as opposed to them just being a
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  Speaker 2: co signer and an authorized user on all of spouse's
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  Speaker 2: one accounts, they can apply using the income. They can
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  Speaker 2: apply using their spouse's income. So make sure that they
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  Speaker 2: still have credit cards, home loan or not home loans,
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  Speaker 2: but loans and installments in their name as owner. Because
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  Speaker 2: when you only have co signed accounts authorized user accounts,
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  Speaker 2: then you're never going to unleash your true borring power
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  Speaker 2: because it's based on someone else, regardless of who it is.
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  Speaker 2: So make sure, yes, I'm glad you asked that question,
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  Speaker 2: because that man that having so often like, it'll just
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  Speaker 2: it'll be one person has great credit and then one
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  Speaker 2: person has subpart credit because they don't have any they
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  Speaker 2: haven't built any credit.
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  Speaker 1: And that's if you're married. Yeah, boyfriend, you broke up,
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  Speaker 1: good luck.
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  Speaker 2: Oh well, yeah, to speak on that co signing, No, no, no, no,
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  Speaker 2: I won't co sign. I'm not sign nobody because that
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  Speaker 2: affects you. Like, if you co sign for someone and
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  Speaker 2: you can have amazing credit, if they choose to not
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  Speaker 2: pay it or you know, run up your card, you
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  Speaker 2: are responsible for that when it comes to co signing.
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  Speaker 2: When it comes to authorized users, authorized users, they don't
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  Speaker 2: have any legal binding to that account, so they can
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  Speaker 2: run it up, they can spend every dollar and it
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  Speaker 2: still is going to be your fault. When you co
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  Speaker 2: sign for someone that if that account goes derogatory, it's
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  Speaker 2: going to affect both persons credit report. You can't do
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  Speaker 2: nothing about it.
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  Speaker 3: So what about credit consolidation? Is that always the most
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  Speaker 3: beneficial way to kind of manage multiple.
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  Speaker 2: No, it's not that chips away at your credit age drastically.
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  Speaker 2: So now it like when it comes to like student
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  Speaker 2: loans and things of that nature, sometimes that it's worth it, right,
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  Speaker 2: But when it comes to just consolidating your everyday credit cards,
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  Speaker 2: I don't always recommend it, unless like you're just trying
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  Speaker 2: to prevent bankruptcy or something like major like that. But consolidation,
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  Speaker 2: I'm not the biggest fan of just because it doesn't
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  Speaker 2: really aid to you improving your borring power.
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  Speaker 3: So if people will have bad credit and they're trying
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  Speaker 3: to improve their credit, what's the steps to actually go
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  Speaker 3: from you know, having issues bad credit to having better credit.
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  Speaker 2: Yes, the good thing about having bad credit is you
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  Speaker 2: have a lot of points that you can obtain. Like
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  Speaker 2: the lower your credit score is, the more points you
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  Speaker 2: can grab. Right, So, my favorite thing when helping some
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  Speaker 2: one with their credit is when they do have a
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  Speaker 2: low credit score, because it's so easy to get those points.
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  Speaker 2: You just have to understand that obtaining those points will
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  Speaker 2: not come from just repairing your credit or disputing your
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  Speaker 2: credit record. It's going to come from building credit. That
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  Speaker 2: is where the points are released from. Right, So making
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  Speaker 2: sure if you have bad credit, if you have collections,
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  Speaker 2: charge offs, whatever, there is no nothing that will help
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  Speaker 2: you other than building credit, making sure that you have
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  Speaker 2: those those four accounts to credit cards to installment's one
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  Speaker 2: short term, one long term. Making sure you do not
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  Speaker 2: pay off that installment early, the short term installment specifically
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  Speaker 2: because you want to build credit. Right. Also, if you
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  Speaker 2: are if you do have collections, challenging those right if
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  Speaker 2: they get removed great, But if they if they do
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  Speaker 2: not get removed, you still can have good credit with
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  Speaker 2: collections because the older a collection gets, the less impact
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  Speaker 2: that it has on your score. The more credit that
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  Speaker 2: you've established since the collection will help you sort of
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  Speaker 2: undo bad credit. Right. I think I had. It was
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  Speaker 2: one account that I could not get removed, and again
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  Speaker 2: that that did not stop me from getting credit cards
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  Speaker 2: or buying a home and things of that nature because
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  Speaker 2: I had established credit that spoke to my financial habits,
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  Speaker 2: my current financial habits more than those old collections.
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  Speaker 1: Right.
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  Speaker 2: But yeah, so making sure you have your building credit,
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  Speaker 2: that's what people. People will say, I have bad credit,
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  Speaker 2: so I'm just not going to touch my credit for
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  Speaker 2: seven years. It's the worst thing you can do, because
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  Speaker 2: that's seven years of wasted time where you can build credit.
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  Speaker 2: You can come back from collections. I've never I've never,
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  Speaker 2: and I have helped thousands, I've looked at thousands of
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  Speaker 2: credit reports. I have never seen a credit report that
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  Speaker 2: is irrepaarable ever, and I didn't seen three hundred credit scords.
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  Speaker 2: That's the you know, that's the lowest credit card you
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  Speaker 2: can get, the lowest score that I've seen, FY go
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  Speaker 2: score was a three to eleven the lords right, No,
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  Speaker 2: it was so the lowest score you can get a
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  Speaker 2: three hundred. Yeah, the lowest you can get three hundred.
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  Speaker 2: The highest you can get this a fifty. I've seen
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  Speaker 2: a three to eleven credit score. People think that because
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  Speaker 2: they have bad credit, they know they're just doomed for
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  Speaker 2: the next seven years. It's not true. Build credit and
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  Speaker 2: you will get credit points when you add your credit card.
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  Speaker 2: And the first month, the first month that you get
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  Speaker 2: a credit card. Please, everybody who's watching this, if this
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  Speaker 2: is your first credit card, do not allow that first
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  Speaker 2: month to be wasted on reporting a zero dollar utilization
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  Speaker 2: because a lot of people get their credit cards and
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  Speaker 2: they're scared to use it, so they'll just like whatever,
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  Speaker 2: like keep it in their pocket or keep it in
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  Speaker 2: their wallet. When you activate that card, you typically are
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  Speaker 2: going to be mid cycle, depending on how long your
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  Speaker 2: bank took to mail it to you. Go get some gas,
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  Speaker 2: go buy some chips, go do something so that you
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  Speaker 2: have at least one to three percent reporting that first time.
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  Speaker 2: The reason why it's important the first time is because
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  Speaker 2: when your credit card hits your credit report for the
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  Speaker 2: first time, you open yourself up to utilization, because if
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  Speaker 2: you don't have any credit cards, you're not getting a
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  Speaker 2: single point out of the one hundred and sixty five
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  Speaker 2: points that are that are allotted for you credit utilization.
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  Speaker 2: So when you first get your credit card, make sure
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  Speaker 2: that you report a very small, a very small balance.
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  Speaker 2: So the second that that credit card hits your credit report,
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  Speaker 2: which is usually like sixty days after you get it,
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  Speaker 2: you'll see you'll see you should see a large increase
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  Speaker 2: in your credit score.