Employment – Why does it matter if I have good credit?

Your Credit Minute Show Notes:

  • 00:00                                   Why do I need good credit when applying for a job? Well, this is becoming more and more common, probably one of the more, um, prominent reasons we’re getting asked to repair someone’s credit for employment, okay? We get a lot of people that call us when they’re applying for a new job, whether it’s a finance company, a government job, or they’re doing an upgraded security clearance and they’re working for a government job. It’s very, very common. We probably get a good, you know, 50 to 100 calls a day for this exact same reason.
  • 00:26                                   So let’s talk about the importance behind this and why the government, why these employers actually care. So for example, the finance industry. So let’s say you were getting licensed to become a mortgage lender. Let’s say you were getting licensed to trade stock. Let’s say you’re getting a license to manage other people’s money. Well, the first thing they want to see is can you manage your own? Can you budget yourself before you’re giving that advice, before you’re becoming a fiduciary, um, and certified to actually help people financially plan? Can you financially plan yourself, okay? So that’s a major component.
  • 00:57                                   The other thing really is fraud. So, when people are under pressure, um, when they’re in debt, when things are falling apart, there’s a higher likelihood that you, or the consumer, um, the applicant, could possibly do something at that job to maybe steal someone’s money. Okay? If you’re handling someone’s money and you’re in debt, the concept, or the way these companies perceive it is you could be a higher risk at maybe stealing from the company or stealing from your clients. Okay?
  • 01:25                                   With government jobs it’s another issue, okay? We’re seeing it a lot. Um, where someone needs to get some sort of security clearance upgrade, they check your credit, and then that upgrade doesn’t happen. In fact, the government announced recently that they’re going to be monitoring credit on an ongoing basis depending on the security clearance levels of their employees, okay? And those security clearances can be effected in real time, um, in a negative way, depending on where someone’s credit is. And that’s kind of a scary thing, okay? This is making credit monitoring more and more important. And again, the perception is there, let’s say you’re under financial hardship, one indication of that is your credit score, at least that’s how it’s perceived, that you can in fact, um … There could be a higher likelihood that you might steal from the government. Maybe you’d be a spy. And this is the perception. Not to say that this is the case. It’s probably not going to happen, but this is where they’re coming from.
  • 02:16                                   That’s why monitoring your credit, um, being on top of your credit right now is more important than it’s ever been. 20 years ago it was a matter of not being able to get approved for a loan, or maybe you’re going to get a higher interest rate for a loan. Now it’s something that could actually effect how you earn. And that could be scary. It could effect, uh, how you keep your job, or if you can continue keeping your job, or the licensing for the business you’re in, okay? Another thing we’re seeing and we’ll touch on is bonding. We have insurance companies that are not issuing bonds to construction companies for that big job, um, because of a credit score. Okay? So credit scores are tying into not just your ability to lend, and the cost of lending, it’s tying into your ability to get a job, the ability to maintain a job, as well.
  • 03:02                                   So, guys, if you have any questions regarding how you should be monitoring your credit, and how you should protect yourself, um, if you’re trying to get some sort of security clearance, or you want to protect yourself ongoing, um, career, uh, career protection, call it, check us out. Give us a call at 617-265-7900. We’re happy to walk you through how you should actively be monitoring your credit and how you should be protecting yourself when it comes to something like this. Thanks, guys, have a great day.
Employment - Why does it matter if I have good credit?
Employment – Why does it matter if I have good credit?

 

Rental History – How can I get it on my report?

Your Credit Minute Show Notes:

  • [00:00] What’s going on guys? Nik Tsoukalas here with Key Credit Repair. Your credit question of the day, I have how can I get my rent payments to show up on my credit report? Big question, great question, and, um, I’m going to show you how to do it with a quick little hack
  • .[00:11] So we have RentTrack.com, a great little website that can assist you in doing this, okay? Keep in mind it is two T’s. What RentTrack is going to do is it’s going to allow you to send your rent payment through RentTrack and have it hit the landlord. So let’s say you pay 1500. You’re going to set up an auto withdrawal from your bank to RentTrack. They will then turn around and mail a check from RentTrack to your landlord in your name, of course, okay, and at the same time, they will then report to Experian, TransUnion, and Equifax that on-time payment. They’ll also give you the option to, uh, backtrack and have them report up to two years of on-time payments to the three credit agencies, which is a fantastic resource. 
  • [00:50] So guys, how to get your rent payments to show up on the credit reports, RentTrack.com, a great resource. Have a great day.
Rental History - How can I get it on my report?
Rental History – How can I get it on my report?

Discharged Bankruptcy – Why did my mortgage stop reporting?

Your Credit Minute Show Notes:

 

  • 00:00                                   Credit repair. So, this is your credit question of the day. So, let’s say someone has just filed a chapter seven bankruptcy. All of your debt has been discharged but you decided to keep your home. Okay? The mortgage hasn’t been discharged, okay, but it’s no longer appearing on your credit report. You’ve been paying your mortgage on time. You got to keep the house, um, but you want the positive credit on the report and you’re wondering you know, what gives? Why is it not there?
  • 00:24                                   Well, here’s why. Okay, when you file a bankruptcy typically what you’re doing is you’re listing all of your assets as well as all of your liabilities. Liabilities being anything that you owe money on. Okay? And although the bankruptcy hasn’t been discharged, the mortgage companies will typically remove that record automatically from the credit report. Okay?
  • 00:45                                   And the reason for that is, you remember that bankruptcy is a protection. It’s to protect you against creditors while you are going through a hardship, okay? So, if the mortgage company decides to report on the credit, it could be perceived as there’s trying to collect on a debt. That’s a major violation, a major violation of all the different bankruptcy laws that are out there.
  • 01:03                                   So, by default, what will happen is the mortgage company zero’s out that record. Okay? They do this um, because it’s a liability. They don’t want to be perceived as a company that’s trying to solicit you for money and violate the bankruptcy court, um, so it’ll get removed.
  • 01:19                                   Now, there is a way to get it back on, okay? And actually, there’s a caveat to this. Keep in mind that because it was listed as a liability, technically you could walk away from that house, okay? So, let’s say you wanted to walk away from the house, um, they can’t come after you for that mortgage. Okay? So, keep that in mind. Because it was listed as a liability you have that protection.
  • 01:38                                   Now, if you continue making the payments on the mortgage, what you wanna do is, you wanna get it reaffirmed. So, the only way to get it back on the credit report is to go through a small process of reaffirming the debt, okay? Your bankruptcy attorney can assist you with this. They’re gonna file some paper with the court. They’re gonna get that reaffirmed. Once that’s done, you can reach out to the mortgage lender, show them the paper work and that’ll give them permission to actually start reporting the debt back on your credit report, and you can start getting the positive reporting from that.
  • 02:07                                   It’s a bit of a process. It’s definitely worth it if you’ve been paying it on time. It’s a great asset. You have tons and tons of on time payments on this account, you want to get the positive reporting of that, okay?
  • 02:18                                   Uh, this could happen with some other debts too. So, let’s say the bankruptcy court asked you um, or allowed you to keep your automobile, so you can get you know, back and forth from work. The same thing could happen with that, okay?
  • 02:29                                   There are a couple of things that won’t get removed from the credit report through a bankruptcy. One of those is student loans, or federally backed student loans, as well as child support. So, those actually won’t come off.
  • 02:40                                   Um, any additional questions regarding this specific topic, and how to get these reaffirmed, guys feel free to reach out to me at nik@keycreditrepair.com. If you have a credit question you’ll like me to answer, I’d be happy to do that.
  • 02:52                                   Thanks guys. Have a great day.

 

Discharged Bankruptcy - Why does my mortgage stop reporting after my bankruptcy was discharged?
Discharged Bankruptcy – Why does my mortgage stop reporting after my bankruptcy was discharged?

Bankruptcy – How long could a bankruptcy stay on my credit?

Your Credit Minute Show Notes:

  • 00:00                                   Guys, Nik Tsoukales with Key Credit Repair. Your credit question of the day. Pretty simple stuff. Um, I’m- I’m asked this constantly right now, especially with kind of a looming future, uh, recession probably at hand, uh, and- and that question is going to be, how long could a bankruptcy stay on my credit report? Okay, and this is a question we get a lot of times pre-filing.
  • 00:20                                   People are scared to do a bankruptcy even though they need it because they’re worried it’s going to destroy their credit for the next unforeseeable future, maybe even a decade, but it doesn’t. Okay. Let’s give you some logistics here, some specifics. Chapter 13. It’s going to appear on your credit report for seven years before it drops off automatically based on the statutes and limitations. That’s an automatic drop off after seven years from the date it was discharged.
  • 00:43                                   Now, keep in mind, a Chapter 13 typically has a three year repayment window. Sometimes longer, sometimes shorter. A Chapter 13, you’re repaying the debts through a trustee, really through the court. They’re just managing the whole thing for you. Very similar to a debt consolidation, but the court’s, uh, administrating the whole thing, um, and it allows you some protection against the creditors while you get back on your feet.
  • 01:06                                   Now, Chapter seven is a different circumstance. Okay. Um, again, we have 10 years for Chapter seven, but with a Chapter seven, when that bankruptcy is filed, it’s typically discharged right away within 30 days and all of your debt is wiped out. Okay. So, that your statutes and limitations on that is 10 years from the discharge date. So, it’s a little further up, but it makes sense because if you’re in a 36 month repayment plan, okay, with a Chapter 13 and you add the seven years, it’s about 10. Okay. So, they- they really each match up.
  • 01:41                                   Um, I would say if you do have the option of one or the other, Chapter seven is always your best bet. You’re not repaying back anything. Everything is getting wiped out and you’re getting a cleaner slate much, much quicker. Okay, but for those of you that are maybe self-employed, you have a lot of things to preserve, you have assets that you need to maintain like the business, some real estate, Chapter 13 is a wonderful alternative and it’s going- it’s going to save those assets where Chapter seven really you’re- you’re forgoing everything, okay, with the exception of some things you can protect- protect like, uh, the owner occupied home that you’re in the state that you’re in.
  • 02:18                                   So, guys, credit question of the day. Again, just a quick recap. How long will a bankruptcy stay and appear on my credit report? You have seven years from the discharge date on the Chapter 13 and you have 10 years on the discharge date for your Chapter seven. Any additional questions regarding your credit you’d love for me to answer, guys email me. Nik … N-I-K … @keycreditrepair.com. I’ll shoot you an email back. Whatever the question is, regardless of how hard you think it might be and how complicated you think it might be, I’ll get a video right back out to you. We’ll post it on YouTube. Keep in mind, if you’re thinking about it, someone else is thinking about it too, and, uh, i think we’ll allow you to help your fellow citizens here. Thanks guys. Have a great day.
Bankruptcy - How long could a bankruptcy stay on my credit?
Bankruptcy – How long could a bankruptcy stay on my credit?

Mortgage – Will applying for a mortgage hurt my credit score?

Your Credit Minute Show Notes:

 

  • 00:00                                   What’s up, guys? Nik Tsoukales here with Key Credit Repair. Listen, I’m going to talk about probably the most asked question my, uh, my loan officer colleagues get, uh, when someone is applying for a home loan, and that question is, does ap- does applying for a home loan create an inquiry that will hurt my credit?
  • 00:18                                   So, we’re not just going to give you some basic credit jargon here. Guys, we’re going straight to FICO. I’m going to read this off to you guys, then I’m going to include the URL in our vlogs. So, definitely click more. I’ll have the link in there, and for you loan officers that are getting asked this, I want you to share this with your customers, okay?
  • 00:34                                   So, um, right on myfico.com/credit-education, we see does the, does the formula treat all inquiries the same? And the answer to that is no. Research has indicated that FICO scores are more predictive when they treat loans that commonly involve rate shopping such as mortgage, auto, and student loans in a different way. For these types of loans, FICO scores ignore inquiries made in the 30 days prior to scoring.
  • 01:03                                   So, if you find a loan within 30 days, the inquiries won’t affect your scores while you’re rate shopping. Guys, that is black and white. It will not affect you. It will not hurt you. Do your rate shopping. Keep everything going within a 30-day timeframe and you will be fine. Guys, this is Nik Tsoukales with Key Credit Repair. This is your Credit Minute. Have a great day.

 

30 Days –  Why can’t I fix my credit inside of 30 days?

Your Credit Minute Show Notes:

  • 00:00                                   … Credit Repair, credit question of the day, “Why can’t I fix my credit inside of 30 days?” Well guys, let’s break it down. You know, I’m going to give you a kind of a generic response, then I’m going to jump into the details.
  • 00:12                                   The generic response is, let’s say you have 10 collections. Let’s say you’ve been um, burdened in debt. Let’s say you have derogatories from the last seven years. This took years and years and years for this bad credit situation to evolve. Um, and for us to get this stuff fixed, for us to budget the money, for us to deal with the finances, and everything, it’s not going to be an overnight thing. Could a small credit issue be fixed within a couple of days by making a phone call? Yeah, of course. Those are the one-off scenarios, but that’s not our typical file, okay?
  • 00:42                                   Also, keep in mind the basic investigation um, cycle is typically going to take about 45 days. This is for you to just challenge something, and I’ll just quickly diagram it for you behind me, okay? So, let’s say we went ahead, and we sent a dispute letter to TransUnion Credit, okay, and we challenged one of the derogatory marks on the credit report. TransUnion’s going to open up that investigation, and they will then, in turn, send that dispute over to the creditor, okay?
  • 01:13                                   We got a 30-day window between when the creditor has to respond back to TransUnion, that investigation cycle, okay? So, we got 30 days, right here. We got 30 days, guys, just in here, okay? So, keep that in mind. And then once that investigation cycle is over, they’re going to go ahead. Um, either, they’re going to delete the mark, they’re going to mark the item as um, fixed. They’re going to confirm the mark. Let’s say it hasn’t been removed, if that’s the case, okay? Then they’re going to prepare and send you a confirmation, again, actually mail it to you. They’re going to send it right to your mailbox, okay?
  • 01:47                                   This is you. Happy as can be, okay, jumping for joy. Just because maybe you just got something deleted, okay? And they’re going to send it to your inbox, or your mailbox, showing you that the item’s been removed. This entire cycle typically takes, from beginning to end, about 45 days. That includes mailing. So, um, you want to allot that, that, that amount of time, just for one cycle of disputes.
  • 02:16                                   And now let’s say you challenge 10 items, okay? Four of them are removed, fantastic, right? That’s a huge net positive, but six are still there that you’re still questioning, and you want to go ahead and submit rebuttals. You have the ability to do so. You want to do a followup. That could take another 45 days.
  • 02:32                                   What I tell clients is this is a longterm process. You’re going to get your quick wins in the credit repair, which is usually the quick, easier items that are going to come off the credit report, the obvious things. You’re going to get your quick wins from the, uh, uh, tips that we give you, whether it’s how to deal with your credit utilization, opening up accounts, closing out accounts, whatever we’re going to advise you on.
  • 02:55                                   But then you’re going to have those longer term ones that are gonna come over 90 days, six months, nine months, a year, and then even items or changes that are gonna happen beyond a year, which are typically not things that we’re working on, things that we’re advising you on.
  • 03:10                                   So again, think sprint, or … think marathon, not sprint when you’re dealing with credit repair. Thanks guys. Nick Tsoukalis, Key Credit Repair. Have a great day.
Why can’t I fix my credit inside of 30 days?
Why can’t I fix my credit inside of 30 days?

Paid Off Credit- How long does it take for paid off credit to report?

Your Credit Minute Show Notes:

 

  • 00:00                                   What’s up, guys? Credit question of the day. How long does it take for a paid off credit card to report to the credit agencies? So, you probably got my video about a client we have that just paid off $27,000 in credit card debt and his follow up question was, how long does this stuff take to report to the credit agencies? Now, the rule of thumb is and what I tell everyone is, wait. Wait about 30 days, and why do I say 30 days? Well, number one, the credit agencies aren’t actively updating these accounts. These accounts are getting updated from the creditors. So, let’s say it’s an open account, okay? It’s an open account with Capital One. Capital One may be updating their, or updating the credit agencies once per week. They may be updating things real-time daily. They may be updating things one time a month for all of their clients. Think about all of those billions of pieces of data that have to update to the three credit agencies each month. Usually what you’re going to find is the way that you’re billed is the way the credit agencies will report that data.
  • 00:58                                   So, if the last bill you received shows the account as a zero balance and you look at your credit a week later, you’re going to see that the credit report is reflecting that specific data. So, you want to correspond your last statement with the credit report and give it a couple of weeks, okay? Now, if you’ve just paid something off the day you got your statement, you might really just want to wait until the next statement cycles through a couple weeks after that before you actually see the item reporting on the credit agencies as a zero balance. So, it’s a great question. Now, for collections and bad debts, bad news for you guys. It may never report as a zero balance. We see this every day. Literally thousands of items per week that we see that have been paid off, open collections and charge-offs, they’ve been paid. Tax liens that’ve been paid, um, derogatory accounts that have never been updated, okay? The collection agencies will get your money but they’re not going to spend their time and resources to fix your credit report, to update it to show a zero balance, okay? That’s where if you haven’t seen it update for at least, or if you haven’t seen an open collection get paid off and then updated as zero a month later, 30 days later, that’s really when you want to reach out to us so we can work on getting that record removed.
  • 02:12                                   Keep in mind, it could be a blessing in disguise now. Now they’re reporting an inaccurate account. That item can’t stay on your credit report. It’s inaccurate reporting that could be deemed as inaccurate by the credit agencies through the dispute process and we can use that as ammunition to get the entire record expunged, okay? We don’t want to have inaccuracies and garbage on your credit report that really shouldn’t be there, okay?
  • 02:34                                   So, you guys, Nik Tsoukales with Key Credit Repair. How long does it take for the, uh, for a paid-off item to show up on my credit report as paid? Again, short summary, um, keep a 30-day window at least. If after the 30-days something hasn’t reported, check your last billing statement. If the last billing statement didn’t report it, hang tight until the next statement and it typically will, and this is for open accounts. If they’re bad debts and they’re not updated in 30 days, that’s really when you want to reach out to us and put in place a proper dispute to get the item fixes. Thanks, guys. Have a great day.

 

Paid Off Credit- How long does it take for paid off credit to report?
Paid Off Credit- How long does it take for paid off credit to report?

Should I use my savings to pay off debt?

Your Credit Minute Show Notes:

  • 00:01                                   Guys, what’s up? I just parked my car at the office, and, um, I just got off a phone call with a client, okay? Uh, a client that I’m absolutely totally stoked for. A client of mine called me last week and said Nick, I’ve got $27,000. I’ve saved 27 grand, $27,000, guys. This is not a small task, okay, but here’s the dilemma. I got $27,000 in credit card debt. What the heck do I do? Do I pay off the debt or do I keep the money in the bank?
  • 00:35                                   Short answer, pay off the debt. Are you insane? Are you nuts? Are you crazy, okay? Get rid of that money. Get rid of that money, pay off that debt, and guys, it’s simple math. The bank’s giving you zero percent. They’re giving you nothing. You stick it in the bank. I get it, it’s nice. You stick it in the bank. You’ve worked hard. You’ve saved. You’ve done the right things to budget, okay, while you’ve been paying the minimum payments on your credit cards. I get it. You hit that number. It’s in the bank, but they’re giving you nothing. But, they’re turning around and they’re charging you 15%, 20%, 25, 30%, okay? These are insane rates. The equation is broken. You’re getting zero percent from the bank and they’re turning around and lending it to you at 29%. There’s something wrong with that, and you’re going to say, well Nick, I’ve been told cash is king. I need to have the cash handy.
  • 01:26                                   Guys, you have to have faith. That’s what you need. You need faith, number one, that’s it’s gonna be okay to not have that $27,000, and for you guys that are used to servicing debt, you service debt, you pay the minimum payments, you got an Excel spreadsheet where you just monitor your debt. It’s not your friend, okay. Don’t get comfortable with it. They’re sucking the money out of your pocket and you don’t even realize it’s happening, okay? You’re going to be fine when you have less money in the bank, okay, you’re left with a few hundred books or a thousand dollars if you follow the Dave Ramsey system, which I love. Um, you’re going to be fine. Why? Because when you have less resources, you become more resourceful.
  • 02:05                                   We’ve all been there. We’ve all been dead broke. None of us had an anxiety attack from being dead broke. But, if you walk into the ER, I guarantee there are plenty of people walking in there every single day that are having panic attacks and anxiety attacks because of the calls they’re getting from their creditors. I promise you, it’s a packed house and I know this, because I get about 100 calls a minute at Key Credit Repair with these exact same scenarios. You gotta have faith. The numbers make sense guys. Take the cash, pay off the debt. Get rid of the rates, okay? And then guess what? You’re going to be able to accelerate your savings pretty substantially, because now all that cash that’s coming in baby, you’re not servicing debt anymore. Okay? You want to spend it? Do whatever you want, okay? But you’re not sending it off to banks and lenders, because they’re going to spend it, okay?
  • 02:51                                   Um, and again, you gotta have faith that it’s going to be okay. You’ve all been at rock bottom before guys, you’ve all been at zero. We’ve all been there. Let’s say we, and we’ve survived. Why? We had faith. See you guys, this is Nik Tsoukales with Key Credit Repair. By the way, to that client that just paid off $27,000 in credit card debts, you are the man. You are the man. I love you for doing that. And if you are having this dilemma or a debt dilemma, call me guys. My direct line is 617-326-3685. We have about 15 consultants on staff that deal with these issues all day long. But I want to hear from you. If you get my voicemail, leave me a message, let me know that you just paid off a debt. Even if it’s a small debt, leave me that message. Email me, Nik@Keycreditrepair.com.
  • 03:40                                   Let me know that you’re having this dilemma. If you feel like you don’t necessarily have the faith, you feel like you’re feeling, you’re feeling a little weak. I’m not sure if I should pay off the debts, hit me up guys. Let me re-encourage you. I’ve been there personally, okay? That’s why I feel so passionate about what I do, okay? So let me re-encourage you, let me show you the way. Let’s get out of debt, let’s use our money to get wealthy. Let’s grow our credit scores. Let’s use credit to build wealth, and let’s absolutely crush it. Later guys.
Should I use my savings to pay off debt?
Should I use my savings to pay off debt?

Utility Bills – do they show up on my credit report?

Your Credit Minute Show Notes:

  • 00:01                                   YouTubers, what’s going on? This is Nik Tsoukales with Key Credit Repair. So I want to talk to you guys today about utility bills. Check this out, actually. I will show you, I got my electric bill today, okay? So, it kind of inspired me to talk about utility bills. So, big question I get all the time is does my electric bill, do my utility bills report to credit? 99% of the time, they don’t.
  • 00:23                                   There are a few markets like Detroit, Michigan, specifically, um, DTE, um, where you will find, uh, your ongoing utility bill’s going to report to the three credit agencies, okay? It’s not very common though, okay? Most of the time, they will not, okay? But what will report to the credit agencies very quickly is a defaulted, uh, utility bill.
  • 00:47                                   So let’s say you don’t pay your electric bill and it falls 90 days behind. The utility companies are super sophisticated with this, their systems will auto batch that data to the credit agencies and all of a sudden you have a 50, a 100, a $500.00 collection that dings your credit report. I’ve seen some people with absolutely perfect credit. They make great money. There’s no financial hardship. There’s no inability to pay.
  • 01:11                                   There really even, there really even isn’t a question of credibility, but they miss a utility bill, they’re on vacation, all of a sudden their credit is pretty much totally destroyed, um, from a credit score perspective, or they’re losing a quick hundred points. Um, that is something that can be remedied by paying off the debt very quickly, reaching out to the utility company and asking them to lift it from your credit report.
  • 01:32                                   If they’re not willing to, which I would say 75% of the time they’re not going to be willing to, that’s a phone call that you definitely want to make to us and we can help you and approach a strategy on how to get the actual record deleted from the credit report. Guys, this is Nik Tsoukales with your quick credit minute. Have an amazing day, and thanks for checking us out every day. Bye.
Utility Bills - do they show up on my credit report?
Utility Bills – do they show up on my credit report?

Build Credit –  So you wanna know how to build credit

Your Credit Minute Show Notes:

  • 00:01                                   YouTubers, what’s goin’ on?
  • 00:03                                   So you wanna know how to build credit. I get it. You’re new. You’re brand new to credit.
  • 00:08                                   Or you’ve taken a credit hit over the years, and you’re just making your financial comeback. You haven’t used credit in a while.
  • 00:15                                   Or you’re just new to the country and you wanna know, “How do I re-establish credit?”
  • 00:18                                   Well let’s show you. I’m gonna jump on the whiteboard real quick, guys. Let’s jump on the white board real quick, and let’s do this together, okay? And let’s show you how to build up some credit.
  • 00:29                                   Okay, remember the rule of three, guys. Most banks and lenders, well, what do they wanna see? They wanna see that you have at least three active trade lines on your credit report. So what’s Nick’s rule of three? Um, or what’s Nick’s strategy, in terms of an actual, and if you’ve ever done a consultation with us, is three active trade lines. That’s mandatory, that’s how many we wanna have on the credit report.
  • 00:48                                   So the first thing you wanna do is make a note. Grab a notebook, grab a piece of paper.
  • 00:53                                   By the way, a credit action plan should only encompass one piece of paper. It does not require a notebook. Don’t waste your money on notebooks. Grab a sheet of paper, okay?
  • 01:01                                   Um, so we want the rule of three, okay? We want a good mix of “Revolving,” “Installment,” okay, and then eventually “Real Estate Credit.”
  • 01:12                                   Why? ‘Cause 15 percent of the credit score is types of credit, having a healthy mix of different types of credit, okay? Um, but in this case, to build credit, obviously, we’re not gonna get real estate credit, okay? My suggest is one credit card, two credit cards, okay, and one secured loan, okay? Let’s talk about this.
  • 01:43                                   Now, the question you’re gonna ask is, “Nick, how do I get a credit card when I don’t have credit?” Okay, it’s pretty simple actually. Something called a secured credit card, okay?
  • 01:52                                   You can go to a website called bankrate.com, I don’t know if you guys can read this. Bankrate.com
  • 02:02                                   So bankrate.com is gonna give you a list, there’s actually a drop-down in the credit card selection section where you can search credit cards, where you can search starter credit cards and secured credit cards.
  • 02:13                                   The concept of a secured credit card is fairly simple, okay? You’re going to take $500, okay, and you are going to put that $500 or give that $500 to the credit card company, okay? They’re gonna hold that $ 500 as collateral, okay? It’s collateral. This is not a prepaid credit card. This is collateral. They’re just holding it, okay?
  • 02:38                                   And what they will then do, in turn, is issue you a credit card with a $500 credit limit, sometimes a little lower as well. Sometimes a little higher.
  • 02:47                                   Why do they do this?
  • 02:48                                   Well, they have no risk. You have no credit, so you’re considered a higher risk for them, especially when you’re re-establishing credit, okay? But when you’re putting up that collateral, there’s no risk. If you don’t pay on that credit card and you go into default, guess what? They’re gonna take your money.
  • 03:02                                   Now, the good thing is, a lot of these secured credit cards, after you’ve established credit, they’ll offer you unsecured credit cards, and you can actually get your security depots released. Some of them will do it, um, right up front, they’ll actually tell you, in six months of on-time payments, they will release, uh, that security, okay?
  • 03:20                                   So we wanna get two of these secured credit cards, okay? And then we want to get a secured loan.
  • 03:27                                   So, remember, we want a good, healthy mix of active accounts. We have revolving accounts, which are credit cards. We have installment accounts, which are personal loans, student loans, or car loans. But again, the dilemma is, we don’t have credit, how are we gonna get these things?

03:41                                   Well, this same concept here, with the secured credit card, where you put $500 into a, um … or you give it to the bank as collateral and they give you a credit line for $500, you can actually do that with an installment loan. Usually they’re a little pricier, okay? Most banks will do it for about a thousand dollars in the form of a CD. So they’re gonna take that thousand dollars, and they’re gonna put it into a certificate of deposit, okay? Don’t get caught up in the fancy talk, it’s a savings account, okay? But the savings account is locked, typically for a 6, 12, 24, 36 month period, okay?

  • 04:20                                   They will then, in turn, give you … we’ll go over here, we need a little space … a loan for a thousand dollars. They will give you … remember what we talked about? Having a mix of different types of trade lines? They will give you an installment loan for a thousand bucks, okay?
  • 04:37                                   So there we go, guys. We got a credit card, our two secured credit cards, then we have a secured loan, okay? We have that healthy mix of three active trade lines. We’ve done it without a credit score, okay? Most of your local banks, lenders, um, credit unions will offer you these two products. Secured credit card, secured installment loan.

04:58                                   If you need any help, or you need some direction on where to access the-these types of products, um, we have full access to all this stuff in our client portal if you sign up with us. Um, aside from that, you can access through our blog. We have a million and one resources. You can actually reach out to one of our consultants, um, call in for a free consultation. We’ll actually direct you on where to go to get these products.

  • 05:18                                   Guys, this is Nick Chucales. This is Rebuilding Your Credit 101, and if you have any questions, give us a call. Bye.
Build Credit-  So you wanna know how to build credit
Build Credit-  So you wanna know how to build credit