How to build good credit and fix bad credit! This Podcast is a GOLD MINE for credit information.

Building credit:

- Start w a primary (we own it) term loan and a revolving line

- Self Lender or Credit Strong (term loan)

- Kay Jewelers card (revolving line)

- TD Bank (secured credit card min. of $1000 and up to $5000) or CapitalOne Bank “Open Sky” card if no TD Bank local

  - (these cards will release the secured interest after 6 to 8 months and convert to an unsecured card)

- Don’t use “reestablishment cards” - OLLO or Credit One Bank or First Premiere Bank

- Open accounts early and get them reporting for as long as possible

- DON’T max out cards

- Pay off cards every month if possible - penalties at 7%, 30%, & 50% debt utilization

- Never miss a payment for 6 to 8 months (or ever really)

- IF you can’t save $1000

  - Get secured card for a couple hundred dollars then get limit raised after a few months

Dealing With Bad Credit:

- Bankruptcy:  Reestablish credit immediately after bankruptcy (don’t wait)

- Tax Liens:  Pay them off and request for them to be removed

- Collections:  Typically a debt that’s been sold to a “collection company”.  Collections debts can be disputed easily and should NOT be paid until they’ve been disputed!

- Charge offs:  When a financial institution goes beyond 120 days on a debt and chooses to write it off.  Negotiate with banks yourself rather than pay for debt consolidation company.

- Larger charge offs:  You may be sued and get a judgement and will likely have to pay.

- Smaller charge offs:  Dispute first, if no luck settle for no more than 50%.

- Once negative items are dealt with begin building credit based on above…

Research credit repair companies - watch out for slow pace of disputes with a high monthly fee

- Look for real reviews - ask good questions (average length of process? How many disputes per month? What do I need to do to accomplish x?)

- Service must be provided before payment due and cannot provide guarantees (but service warranty is a good thing)

How to get leverage (access to other people’s money) once you have good credit

Credit cards:

- Use your credit card consistently and pay it off monthly (or as close to it as possible)

- Ask your lender to reduce interest rate and increase limit every 6 months (assuming good payment history)

- Credit cards are the easiest way to establish great credit

- Cycle expenses through your credit cards as much as possible

- NEVER miss a payment - ALWAYS set up minimum payments auto drafts

- *Dave Ramsey is great at teaching people how to get out of debt but NOT at teaching people how to make money

Inquiries:

- Hard pulls effect your score by up to 10%

- Not all “hard” credit pulls effect credit equally when lenders underwrite you

- Inquiries in different sectors are better tolerated by lenders

- No more than 3 inquiries within 6 months ideally

- Inquiries can be consolidated by day or often removed by credit repair companies if no document was signed for EACH credit pull

- “Soft pull” does not effect credit score

- Freecreditreport.com is the only way to view soft pulls - commercial lenders cannot view them unless you already have credit with them and they are only visible within like industries

Best site to monitor credit: 

honestcreditmonitoring.com (Curtis’s company yay!)

If you’re going through loan underwriting use Experian (creditchecktotal.com)

- Updates daily

- Uses FICO8 scoring model