00;00;00;00 - 00;00;27;01UnknownWelcome back to the Seven Figure Flipping Podcast. I'm your host, Adam Whitney, and today we're continuing our funding series helping you build a rock solid foundation for your real estate business. If you've ever been held back by your credit score or wondered how to repair and strengthen it to qualify for better lending rates, this episode is for you.00;00;27;02 - 00;00;56;01UnknownWe brought in Briana from Karem Credit to walk us through what really affects your score, how to fix it, and how to position yourself to qualify for the best funding options. Many of you may know, and some of you may not, but, we had a capital leap, flip funding challenge back in August. And during the flip funding challenge, Bill talks a lot about how to raise money, and raise capital to do your real estate deals.00;00;56;01 - 00;01;18;16UnknownAnd so we thought that it might be helpful to kind of build off of that and do this series where we are sharing some of our lending partners and other strategic partners that we have that can help you qualify for the best lending rates as well as, next week, we're gonna have another one that talks about qualifying for business credit.00;01;18;18 - 00;01;41;17UnknownSo we put this funding series together where each week we're bringing in different partners who can kind of help you leverage access to all the different types of, funding that's out there, not just the private lending that Bill talks about in the challenge. So the first week we had, lending partner from us lending, and she talked about just kind of what is hard money, how does it work?00;01;41;17 - 00;02;14;17UnknownAnd kind of laid that foundation. Then a couple weeks ago, we had Jessica from American Heritage Lending, and she talked about specifically how to access 100% financing on, loans as a member of the seven figure family. And then now, this week, I'm super excited to bring in, Brianna from Kingdom Credit. And she's going to talk about things that we can do to repair our credit so that if it's not where we want it to be to qualify for those best rates, how to fix it and how to get it there.00;02;14;24 - 00;02;33;07UnknownAnd then next week we'll have one more coming in to talk about accessing business credit and so today's presentation kind of goes hand in hand in hand with that one as well. Because as you get your credit score to a certain point, then you can kind of transition into starting to apply for, and get access to business credit.00;02;33;13 - 00;02;58;28UnknownSo with that, Brianna, I will hand it over to you, Dave. Yeah. If I could jump in real quick. Brianna. Yeah. To, and Brandon Brennan, you just went off camera. If you're still there, I'd love to ask you a question to a couple of the magic numbers. You guys. So we just shifted and to where they'll they'll fund 100% financing on 700 credit score or higher.00;02;58;28 - 00;03;17;24UnknownSo it used to be a little bit lower. Now it's at 700. And then American Heritage that was just on with us last week. Their kind of magic credit score number is 680. So just going to ask Brandon where Renovo is. Maybe when it comes back we can we can get that from him as well. So with that, a lot of people are kind of looking in.00;03;17;24 - 00;03;40;12UnknownAnd Brianna, as flippers, we often our credit scores will get knocked down sometimes just with overutilization. Yeah. Right. And so some different kind of things happened to that pushes us under that six 8700 threshold. So that's like a lot of people on here going, okay, how do I bring my credit up just a little bit more? What needs to happen?00;03;40;15 - 00;04;01;20UnknownIf that helps. So with that go ahead. Take it away. Well, thank you very much. Hi, I'm Brianna, I'm from KTM Credit Health. So that's what I'm going to be talking about today is how to really just simplify credit repair and boosting your credit and helping your credit growth. So I did put together a little presentation today.00;04;01;21 - 00;04;25;07UnknownIt's really just understanding repairing and elevating your credit. Your key to financial prosperity. So I'm excited because you're here today. We're dividing into something that affects almost every aspect of our, your financial growth. So I'm just going to be simplifying credit repair so you can focus on growth. But before I get into that, I wanted to go over who we are as a company.00;04;25;09 - 00;04;56;02UnknownWe're a bonded credit restoration service established in 2008. Originally business to business opened up to a consumer services after seeing the lack of reputable options available. So we have time tested, unique multiple channel dispute methods, aggressive and effective approach for optimal results, and basically our biggest goal is not only to, repair your credit, but it's also to empower you and educate you.00;04;56;02 - 00;05;22;18UnknownSo every step of the way from our program is to empower you and educate you on how to help you get to your goal. So that is what we do today. Now why good credit is important. What is the importance of having good credit? There are a lot of different ways that having good credit can help you.00;05;22;20 - 00;05;52;04UnknownIt, you know, gives you the ability to leverage your credit for different types of loans, such as personal loans, mortgages, car loans, higher Fico, highest approval, best rates, increase employment and entrepreneur opportunities, financial stability, more negotiating power, better insurance rates low. No security and utility deposits. Did you know that some employers check credit reports as part of the hiring process?00;05;52;04 - 00;06;18;01UnknownA poor credit history can be a red flag for roles involving financial responsibilities or security clearances. And if you're an entrepreneur, good credit is essential for securing funding, business credit lines and supplier relationships. So that's how cash is king. But credit is queen because that is the biggest part. Now on the flip hand, this is what bad credit can cost you.00;06;18;04 - 00;06;45;15UnknownYou know it can cost you dignity. High interest rates, automatic denials on loans and credit accounts, access to funds, financial stability, confidence, housing opportunities, employment opportunities that could it can cost you so much. And then you have the people that are the ones that are reporting this. So these are the people that are tracking your credit, which is called Experian, Equifax and TransUnion.00;06;45;15 - 00;07;15;22UnknownThese are the three major credit bureaus. They gather information from various sources to generate your credit report. This information is used to determine your credit worthiness so your late payments or your utilization, all of that is tracked using a specific portion to make up your credit score. So you have 30% for accounts owned, 10% for new credit, 15% for length of current history, and then 10% for credit mix.00;07;15;22 - 00;07;38;12UnknownAnd then there's your payment history. Obviously, you can see that your payment history is what makes up the biggest portion other than account load. But this is how the credit score is tracked and how you can actually access your credit report. So accessing your credit report and doing credit monitoring is so beneficial because it helps so many ways.00;07;38;12 - 00;08;02;07UnknownIt helps you for identity theft, to keep up on late payments, or to make sure that everything is reporting accurately, because there are so many times where the credit bureaus are reporting inaccuracies, like for my junior or senior is out there, your credit gets mixed up all the time and sometimes you don't even really know. So here are some credit monitoring things that you know I know that are very accurate.00;08;02;09 - 00;08;36;07UnknownFunding growth credit monitoring service that is about $15.95 per month. And then there's my Fico and Experian. Now, I do want to go into what negatively impacts your credit report and kind of give you a little bit of a breakdown on how bad it can, because even one negative item can take your credit. So some types of derogatory items, there's going to be late payments, collections, charge offs, foreclosures, bankruptcies, state and federal tax liens, judgments, repossessions.00;08;36;14 - 00;08;58;07UnknownThese all hurt your credit. And then on top of that, every single thing in the world has a shelf life. So there is a certain period of time where that stays on your credit report. So derogatory items have a, shelf life, so hard inquiries. That's two years, two years on your credit report that it's going to stay on there and affect you.00;08;58;09 - 00;09;28;24UnknownLate payments is seven years. Charge off accounts seven years, collections accounts seven years. Medical debt, seven years. Bankruptcy. Chapter 13 seven years foreclosure seven years. You can kind of see a little trend here with the seven year mark. So all of these items stay on your credit report unless you do something about it. And even like, again, the smallest thing can take your credit score, you know, a 30 day late payment that depending on your score right now, can go down 60 to 80 points.00;09;28;26 - 00;09;50;03UnknownYou know, even one. And, you know, life gets ahead of you to, you know, sometimes payments gets ahead of you and you just can't keep up. And even that one thing can damage you. And that's where, you know, dispute comes into hand because a 30 day late payment can go down 60 to 80 points. Maxed out credit card.00;09;50;04 - 00;10;15;21UnknownBri, if I could just jump in real quick. So as entrepreneurs and real estate investors, in particular, we deal with all of this stuff, right? It's it's almost part of the business. There's different cycles, especially as people are expanding and growing. So just so you know, in this group, like everybody's been almost everybody's been impacted by at least some if not a couple of these.00;10;15;23 - 00;10;32;11UnknownAnd it's just part of it's a part of business. So go, go ahead. I just wanted you to know that. Yeah. Of course. And even if, you know, that's just it is it is a part of business, especially for the, as you stated a little bit earlier, the credit utilization, that's a big part of, you know, your credit score going down.00;10;32;13 - 00;10;54;16UnknownAnd now to go a little bit more into some education, like there are a bunch of credit myths out there, you know, checking your credit score lowers it, which isn't correct. There's a difference between a hard pull and a soft pull, which again, I'm sure you guys know, income impacts your credit score. This is all false.00;10;54;19 - 00;11;38;05UnknownYou only have one credit score. There are many different credit scores out there. My Fico has eight different credit scores, vintage credit scores as well. The government owns the credit bureaus. The credit bureaus are just like Trans Union, Experian, Equifax. They're just like target and Walmart. They're just companies that report and gather your information. So what we can do about it, how we as a credit repair company can help you while removing negative items is important to add positive history on your credit report, while you're going through disputing these negative items.00;11;38;08 - 00;12;06;17UnknownSo a lot of people think that just removing the negative items or paying down is going to boost your credit score, which is not the case. You have to also build credit on to that as well. So having new positive accounts, you know, having the positive history, that's all going to add into this. Adding in secured credit cards can be a big help for those who cannot get approved for an unsecured credit card.00;12;06;20 - 00;12;28;19UnknownThat can just help your credit utilization and also help your history as well. Making sure that you're making at least the minimum payment to your credit cards. Payment history makes up again 30% of your credit score. So these are what you can do today to help your credit score go up and how we can help you. It's as simple as one, two, three.00;12;28;21 - 00;12;50;23UnknownYou start with a free credit consultation, then complete an onboarding process dispute inaccurate and then underreport information. So we're disputing these negative informations. So inquiries late payments collections charge offs. We're disputing that on your behalf. If you try to go ahead and help you you know get what you're trying to apply for. Debris. You can ask a question about that.00;12;50;23 - 00;13;18;27UnknownYeah. Just gain like real just specific tactical. So if I have late payments, if I have, you know, like, I maxed out my credit cards, I was waiting for this project to be done. I couldn't pay my credit card. I finally had it was able to sell that property. Cash flow came in, paid everything off. And I have some of all of that kind of stuff, like really for especially a real estate business owner, what can you what can Caiden really do?00;13;18;27 - 00;13;43;15UnknownAnd maybe you're going to get into more of this specifically in the future, but what can you do? They're not inaccurate past histories of me not being able to pay, but can we get some of that stuff removed in less than seven years? Yes. That's basically what we do. So we use a multi-channel approach to disputing getting you the best possible outcome, because everybody has the same credit repair laws.00;13;43;15 - 00;14;14;10UnknownEverybody, you know, it depends on how aggressive you are with it and how you're attacking these with them. We're going in with a different dispute tactic, a different credit repair law and a different way of disputing using a multi-channel approach. So we're hitting it from all different sides, using the credit repair laws to help you and go against the credit bureaus, because, you know, they the credit bureaus have to follow certain laws and that's what we do to try to go ahead and dispute these items, to either get it removed and or corrected.00;14;14;13 - 00;14;31;10UnknownI got it. Okay, cool. Like anything, anytime you can give us something real specific in there of what you might be able to go after or things that, just that, specific items that you can get removed, just throw them into the presentation because people are going to be like, yeah, I know I have some of that stuff.00;14;31;13 - 00;14;56;27UnknownHow likely is it that you can actually remove that? And do you have some type of guarantee to maybe I'm jumping to the full end of your presentation. So if you tell me, wait, it's coming, I'm totally okay. No, that's that's perfectly fine. And hey, listen, any questions helps. So credit repair, nobody in credit repair can guarantee removal items, increase in credit score or timeframe.00;14;56;27 - 00;15;19;29UnknownThey just can't. Nobody can. No. No matter what anybody is promising you, they can't. It honestly depends on how aggressive you are. But with that you know our services. You know payment is not debited until the first round of disputes has been submitted. And we do have a refund policy. We're very, very transparent here because we're not only wanting to help you, but we're wanting to get to your goal.00;15;20;01 - 00;15;42;01UnknownYou know, that is our biggest thing is to help you. And we do have a refund policy with all of our memberships. For these items, we do normally see more things start to come off. For our year memberships, we have, you know, our basic credit restoration program. So we dispute late payments, collections, charge off, bankruptcies, inquiries, repossessions.00;15;42;04 - 00;16;07;24UnknownThese are all things that we have had success with. So it depends because sometimes some items are removed faster than others, while sometimes they're removed, you know, later than others. It honestly depends on how aggressive you are, which that's what we do. We so what the multi-channel approach is, is doing the different disputes through Experian, Equifax and TransUnion, through the three different departments of online disputes, letters and then phone disputes.00;16;08;00 - 00;16;32;13UnknownSo we do that to try to target it with the different credit repair laws. So we're targeting like, hey, Experian, Equifax and TransUnion. They're all reporting inaccurately. We target that to try to get to be removed. Now with the month for the basic credit restoration program, this is for the entire year. Most of our memberships are for the entire year because we want to get you the best possible outcome.00;16;32;15 - 00;16;48;21UnknownSo this is for items that are if you have three or less. So let's say you have a Capital One account, right? With four late payments on it that are 30 days, and you have a collection that's $80, and then you have a charge off. These are three accounts. You would be considered a basic credit restoration program.00;16;48;21 - 00;17;10;20UnknownSo what we do is we're disputing as many times as possible for that entire year. And that membership is for 498. Now, if you had four or more accounts, that is our full credit restoration program, which is 798. Then on the complete other aspect, we have inquiries. So we have anything that is reporting negatively on your credit report we can take care of.00;17;10;22 - 00;17;38;14UnknownThe one time inquiry removal program, package is $348. This is best for clients who need to remove, old credit inquiries that are fraudulent or that did not get approved. That time frame is typically 90 to 120 days. Okay, cool. I've got a couple questions coming in. All right. And the first might be just go back to that screen just so I can kind of see the pieces there real quick.00;17;38;14 - 00;17;57;25UnknownSo when you say fairly good credit, if I need to get to 680, that's my threshold that I want to get to. What, like how how far is fairly good credit and maybe just kind of speak to that first. And I got two more questions behind it. So the fairly good credit you don't have a lot of derogatory items.00;17;57;25 - 00;18;15;22UnknownYou don't have a lot of late payments, you don't have a lot of collections. This is like if you strictly have three accounts on your credit report with negative information. So this is not like ten different collections. This is just a certain amount of accounts on your credit report with negative information. So that might relate to this question.00;18;15;22 - 00;18;42;04UnknownThat's in the chat. It said what if you have good payment history. You just have high debt ratio. Can anything be done about that. So not with credit repair. If you have high debt that is something completely different. For credit repair. We're targeting the negative items on your credit report okay. All right. Good to know. And then this one from Alvin, how can you dispute when the derogatory mark is correct?00;18;42;06 - 00;19;06;08UnknownSo we use so again, credit repair and credit bureaus. So Experian, Equifax and TransUnion, they have certain laws that they need to abide by. So that means that they need to report accurately. They need to go ahead and have everything be the same. What we do is find the inaccuracies and target them and also use the multi-channel approach.00;19;06;12 - 00;19;29;01UnknownSo we're targeting it from all different sides. Yeah. So something may have just been logged a little bit incorrectly or yeah, all of that kind of stuff. Not that it's you're not saying it's not true. You're just saying, hey this doesn't comply. We need to have it removed. Exactly. And you would be so surprised at how many differences that there are through credit repair and credit monitoring.00;19;29;07 - 00;19;51;29UnknownThere are so many different Fico scores out there. There's so many different credit repairs out there. And your information, there's so many people out there that gets crossed. And that's how we can also use that to our advantage. Cool. Brennan. Brennan just asked, do the credit reporting platforms typically just not want to take the time and money to dispute?00;19;51;29 - 00;20;21;05UnknownAnd so they just kind of give in. It's because just where you're coming from, sometimes, like, give me the credit bureaus. Right. Yes. So the credit bureaus do sometimes given, you know, and sometimes they are very strict. It honestly depends, on how that they're feeling. They like to go ahead and they'll send what is called a stall letter.00;20;21;07 - 00;20;43;25UnknownThe stall letter during the membership is to get you to be scared and to stop disputing. So they send this out to every single person. Their goal is to get you to give up. So that's why you do have to dispute these things so you can be like, hey, you're not following the law. You need to follow this law because it is mandatory and you need to remove this item.00;20;43;28 - 00;21;13;16UnknownOkay, good. What's the lowest score you can have for a credit repair? I have seen a lot of different things in my time. The lowest I have seen was a 400, it doesn't matter as long as you have those negative items on your credit report, we're going to dispute them for you. Got it. And with the consultation that you first have, that first call, is it reasonable to kind of come in and say, okay, I'm at 580, I need to get to 680.00;21;13;18 - 00;21;28;28UnknownWhat's possible? What do we do? And then what do you how do you handle that. Where do you go from there. Yeah. So for the free credit consultation what's really going to happen is it's going to be with me. So I'm going to be like, hey, let's make a plan. What do you currently have on your credit report?00;21;28;28 - 00;21;49;20UnknownTell me a little bit about what you're dealing with, and let's make a plan together to see what best helps you. You mentioned some tools at the very beginning that show you what's in the in the credit report. Is that is that something that if I just called you, I'm not using any of those tools right now. Is that something that Kingdom does or do they say, okay, great.00;21;49;20 - 00;22;08;25UnknownGo ahead and subscribe to Funding Grow. Let's look at the data and then we're going to attack it. Yeah. So the credit monitoring is not something that Kate provides. But that's why we are we gathered reliable credit monitoring services that you can use. And we'll we're going to give you that information so you can use it.00;22;08;28 - 00;22;31;10UnknownGot it. So you set the game plan. This is how we're going to approach this. Yeah. Okay. This one's from Robert. He's saying is calling the creditor ahead to notify them of upcoming payment trouble to buy more time. Is that a myth or is that actually effective? It's good. It is effective. Yep. And a lot of people use it because, you know, again, everybody we're humans.00;22;31;16 - 00;22;53;29UnknownWe're humans. Like people make mistakes, especially if you're giving them a heads up. A lot of banks and companies will work with you. So that is not there just because you have experience in history of this. Are there certain banks that are better and will work with you better than others? I know Bank of America. I know that they have.00;22;54;01 - 00;23;14;16UnknownAnd Lily, I've noticed that they have agreed to it, but honestly, just give them a call. That's the worst they can do is tell, you know? And then again, you you dispute it. Yeah. Okay. All right. Good. I'll keep jumping in if there's more questions that come up. Keep going, I am done. That was that was it?00;23;14;18 - 00;23;39;03UnknownOkay, okay. All right. Good. All right. What other questions do you guys have? And feel free to come off mute. Brandon Goldstein, are you there? I was just curious on what Renovo, is requiring for from a credit perspective. Yes, I am here. In terms of, like a credit floor. Yeah. Just give me kind of the range.00;23;39;03 - 00;24;03;28UnknownWhat are some of your standards that Renovo requires? Yeah. So we're, six, eight and above. So six eight is the current credit floor. And then the rate in terms like they slightly change on a tiered system every, you know, call it 20 to 40 points of credit. But it's it's not meaningful. You know, it's a couple of basis points.00;24;04;00 - 00;24;31;18UnknownNow the difference between a 680 and a 800, you know, maybe a little bit more meaningful. But you know, we're very typical in terms of a lender and what we look for 688. Got it. Okay. And then the the same rules apply, whether it's your personal credit or it's your business. It's business credit. Yes. And a lot of the times you're the personal guarantor for your business.00;24;31;18 - 00;24;51;04UnknownSo if you're, let's say late on your business, it will likely show up on your personal guide. So flows. But it flows. There's a flow both ways. If you personally have a personal credit card, is that also affect your business? No. Okay. But it does affect if you're applying for something because they're going to check your personal got it.00;24;51;06 - 00;24;56;01UnknownOkay, cool.00;24;56;03 - 00;25;22;16UnknownOkay. Here's a question from Garrett. Well, those three ways to access your credit report allow you to access your business credit report. It does not. It only is for personal okay. So how do you know what your business credit is? What's the kind of the best way? I'm sure there are accounts out there. I honestly don't know, because we really only work with personal.00;25;22;23 - 00;25;49;19UnknownBut I can get that answering. Give that back to you. Cool. All right, well, Caitlin just posted, Duns, do you. And asked to, as just a resource. You guys a way to access business credit? How accurate? How accurate is Credit karma from Robert? Horrible. Do not use it. Horrible. Oh, I tell this every single day because Credit Karma is so inaccurate.00;25;49;19 - 00;26;08;21UnknownAnd I try to stress that so much because they like to put things that aren't there and then take things off that are there. It's just it is very inaccurate. Oh my gosh. Okay. All right. Good. Good to know. So you and you had the three that were on there too that those are legit proven over time.00;26;08;21 - 00;26;32;07UnknownThat's who you guys want all of your clients to use. Yes. Those are the ones that we definitely recommend because we have had so many that are so just so inaccurate. Like I remember this one, that they had 20 different inquiries and they weren't even on the cover on that specific credit report. But these these I have personally worked with and that they're very accurate.00;26;32;09 - 00;26;50;16UnknownCool. All right. Good. And then Sarah said, I checked my business credit through Nav, which is cool. And then Brandon Dunn and Bradstreet business credit. Okay. Cool. Some great, great resources. Tracy, could you are you able to just drop the link for the Kingdom credit help? It was seven figure flipping. So what do we,00;26;50;18 - 00;27;13;13UnknownWhat are we getting here, Bri? We're we're getting. We get a analysis, like a strategy call. Where are you at? What's happening? Here's the game plan. Here's what package would make the most sense for you. Yeah. Here's what. How hard is it to, you know, for me and I guess most everybody will will pay for something that we know we're going to get.00;27;13;13 - 00;27;33;17UnknownAnd this is a little bit it's hard to know what you're going to get from it. How difficult is it to when you first meet with someone? They're at 606 40 and they're saying, I got to jump 40 right now. How quickly can you tell if you can really get them there to 680, barring no other mistakes or issues that happen?00;27;33;20 - 00;27;54;14UnknownYeah, honestly, it's the input that we have together. So credit repair is kind of like going to the gym. It's not a one overnight thing you have to put in the work. So for us using the multi-channel approach we're going to ask you to send us responses. We're going to ask you to, you know, do phone coaching like that is a thing that we are doing.00;27;54;16 - 00;28;22;15UnknownTo get to these different departments to get the best possible outcome to you. So if you're putting in the work and giving us the responses, it's going to go by a lot quicker. Got it. Okay, cool. Let's see what else. Yeah. Go ahead. That. So this is like a series. This is a financial series where, you know, lenders are coming on and talking about, their program, how how to be most competitive, how to get the best loans.00;28;22;15 - 00;28;51;16UnknownBut the reason it's a series is because no two lenders are doing business the exact same way. And it is a whole it is a whole picture. They're looking at your experience as an investor. They're looking at your liquidity. They're looking at your credit score. They're looking at they're looking at the full picture. And they have they do have some ability to get, you know, all things equal.00;28;51;16 - 00;29;08;25UnknownYou got a little more experience. You're going to get a little more favorable thing, all things equal. Like you don't have as much experience, but you're a great leader, great person to lend money to because you got other income, you got liquidity, you got a great credit score. They're going to do a little better than a newbie with no money.00;29;08;25 - 00;29;31;12UnknownSo it it really is important that everybody just understands like even if you have even if you have credit or bad credit and things are challenging for you, like there are lenders who will lend you money, it just won't be favorable. So you're going to need to have the ability to go get really good deals to facilitate that particular project.00;29;31;12 - 00;29;51;14UnknownSo I just want to be very clear that we're doing a whole series with multiple lenders, multiple credit repair people, multiple financial people. So you can think about your personal business or your personal situation, put you in the best position possible. Best position possible. So, it's understand don't don't just come to one of these calls, come to all these calls.00;29;51;14 - 00;30;12;14UnknownCome to come to the this one. And once we just did one before this, that was really good with a and they're, they're all they all do business a little differently. I think it's really important to understand that. Yeah. Yeah. Appreciate that. And, Robbie asked my credit score swings wildly like 100 points based on our credit card we use for flipping.00;30;12;16 - 00;30;38;22UnknownIs that normal? That is normal. It also depends where you're looking. I would automatically go what? Credit monitoring or where you reviewing that your score has jumped that much. Utilization. It is a huge part of your credit score. If you, you know, max it out like my goal is like always 30% or under, like 10% is the best, but 30% utilization or under is always what's going to help you.00;30;38;25 - 00;30;45;21UnknownAll right. Cool. This is for Robert. How much impact does the PPD card give?00;30;45;23 - 00;31;13;00UnknownI am not sure what that is. Yeah. What is that Robert. All right. I heard background noise. The prepaid card that you mentioned. It. Got it, got it. Okay, so the prepaid card that helps a whole lot. Especially because that is on your terms, too. So you're only doing what you can. The prepaid card is so you can boost up your credit score.00;31;13;00 - 00;31;31;02UnknownSo it's giving you more history. It's giving you better utilization. So it's positive that it's adding on to your credit report. So that is going to help a whole lot, especially if you have a lot of negative items or if you have a small a number of like you only have like five accounts opened, but like three of them are negative.00;31;31;02 - 00;31;53;28UnknownHaving that prepaid is going to have that positive impact because you're again helping your credit utilization, providing payment history. It's just going to help. Well, can you give us some kind of pro tips on that. Like, you know, just just some things that you've seen that are successful, how long how much how much does it improve your credit?00;31;54;00 - 00;32;13;08UnknownJust a couple case study kind of data points. Yeah, I've seen I've seen where it has jumped 50 points before. I've also seen where, you know, if they do a little by little, it, you know, goes up little by little. It honestly depends like paying it on time. You know how often you're reporting it. It depends on you as well.00;32;13;10 - 00;32;37;01UnknownOkay. And then, yeah. What else? I mean, if somebody jumps 50 points, that's huge. How much time typically like is this three months. Six months I usually do see more or less like because the longer you have it, the better it's going to be. So the second it goes on, you're performing. That is positive history. So it's going to be a little bit of time because you're constantly doing it.00;32;37;08 - 00;33;03;11UnknownSo I definitely help like later down the line. And then that has a good question about utilization since that's such a big deal. You know with us. So he's saying so the higher the limit the better your score in relation to usage. Is it best to increase your limits for this reason. So yeah, like make your limits massive so that if you need $50,000 that's only 50% that that's what you're saying.00;33;03;11 - 00;33;23;24UnknownIt is a big impact of utilization. Yeah. So especially if it's under that 30%, if you want to go ahead and increase it, that is it to bring under that 30% that's going to help. Yeah. Wait, is that so. Is that kind of a best practice goal is keep your utilization under 30%? Yes okay. 30 oh is the goal.00;33;24;01 - 00;33;48;26Unknown10% is even better. Okay. All right. Good. Good to know if there's if there's short if there's times when it goes up above. Is there a magic time amount? It honestly depends on when the bank reports it on when that gets affected. Okay. Got it. So it's all the banks, right. So it's a reporting thing like you're at 50% now if you use it you tillage.00;33;48;26 - 00;34;09;05UnknownAnd that's an impact. Okay Jeff, before you come off mute and ask your question, this is this is let's see where we got a bunch of questions just dropped in. Don says I go straight to the credit reporting agencies to do the quarterly free reports. Am I correct that those are always accurate? Yes. It's called. Yes, I got a report.00;34;09;05 - 00;34;27;23UnknownThose are accurate. They're really great. And they're a just a free option to, the credit monitoring just a little bit easier. Especially because it gives you one every 30 days where the annual credit report, it does have to do a longer period of time. Okay. All right. Perfect. Jeff, come off mute. What do you got?00;34;27;26 - 00;34;58;26UnknownWell good afternoon. I had a question recommendation. So if I have, if I have, let's say five credit cards and I'm, I'm, I have some things to to charge. Am I better off using all five credit cards up to 10%, or am I better off using one card to the 6,070%? Considering all all limits would be the same, what's a better route having four zero and one at 70% or all five at 10%?00;34;58;26 - 00;35;28;01UnknownLet's say 10% is going to be because again, once you hit that over 30% mark, it's going to hurt your credit score. That's what's going to hurt. And then a huge rule that we also do is if we're going to use your card aggressively, pay it down aggressively too. So if you wanted to do the one card paid down aggressively, so it's not reporting the 30% mark because a lot of banks, they give you this 30 to 60 day window again depends on the banks.00;35;28;05 - 00;35;53;15UnknownBut if you're paying that down before that window, it's going to report that you're under 30%. Understood. Okay. Very good. Thank you. Of course. Thanks, Jeff. All right. Here's from Robert. What would you say is the minimum income to show to get approval for loans? If you have fluctuating income, either personal or business? That is something that fluctuates.00;35;53;17 - 00;36;15;01UnknownI am not too sure. I just know that if you have certain negative items that you can get declined and or are not approved for if you're applying for something. But I'm not sure the lowest income I don't believe it actually matters what income you have. As long as you know you're showing a history of that, you're paying it on time.00;36;15;03 - 00;36;41;17UnknownSome. Okay. And we still have a little bit of time left for a few more questions. Tracy just dropped in there. Tracy, do you want to come on real quick? So we have we have fun to grow. Next we can talk a little bit more about business credit, correct? Yes, that is correct. So, in you know, I talked about the beginning of the call, kind of the series in the way that we're following this, where at the beginning we were talking about some of our lending partners and their criteria.00;36;41;17 - 00;37;05;00UnknownAnd then today's call is to kind of talk about, if you're not at those preferred, you know, limits in terms of where your credit score is, you know, this is a great opportunity to look at how you can proactively kind of take control of your credit score and, and take some steps to move in that direction. Now, next week we're going to have funding grow come or it's the 21st.00;37;05;00 - 00;37;24;06UnknownSorry, it's not next week. It's the 21st. We're going to have funding bro. Come in and they're going to talk about building business credit. And so this goes hand in hand with funding grow in that I believe the the minimum score that they recommend that you have before you start working on building the business. Credit is 700.00;37;24;06 - 00;37;50;14UnknownBri. You can correct me if I'm wrong. I think that's where their their recommended starting point is in that same like 680 to 700 range. And so 680 to 700. Perfect. So they will come in and kind of talk to us about their program and how they actually help establish a totally separate access to business credit, and access to capital that is separate from your personal credit.00;37;50;14 - 00;38;17;14UnknownSo it kind of starts with having a good personal credit score so that you can build that business credit, but it opens a whole new, you know, kind of world of opportunity, of access to capital. I don't know if Adam's still on the call. I know he has a friend who recently, has been using their program, and I don't remember the dollar value, but it was like 80 K or 130 K of business credit that he has access to now just from, leveraging the Fund and Grow program to build this business credit.00;38;17;14 - 00;38;37;05UnknownSo just another another way to access capital to be able to fund your deals, whether that's, you know, I don't know, you can cover a down payment, you could pay for marketing, you could, you know, hire VA, like whatever those kind of operational things are that you need where you need kind of that money to get the flywheel going.00;38;37;05 - 00;38;53;18UnknownAnd then as your deals start coming in and generating cash, then you can pay that off. Leveraging the business credit is a great way to be able to do that. But it all starts with having the baseline personal credit score to be able to build off of. So all of these pieces kind of tie in together and build off of each other.00;38;53;21 - 00;39;10;21UnknownYeah. And having that is going to be like the key, the key for you getting approved, the key for you to get a higher limit. It's going to help you in so many different ways. And you have to start somewhere. David has a question here. He said I get offers. This kind of relates to what you're talking about, Jesse.00;39;10;21 - 00;39;39;18UnknownI get offers for personal loans for debt reduction is a personal loan. Is personal loan debt equal against one's credit as credit card debt? Yes. Yeah. It all affect the debt to income ratio. So it does. Yeah yeah okay. Good. Okay. Well so relationships are big with us at seven five. And also like just that learning curve that we want to pass on to all of our members.00;39;39;18 - 00;40;08;19UnknownSo, you know, it's part of us connecting with Kate. Brie, you're you're you are our person, right? Yes. So. Okay. Good. So when our our community reaches out to them, they're coming to you. And one of the things that I'm kind of excited about, too, is as we help flippers, real estate investors, you know, principally like over and over and over, we're going to start to there's going to be a great learning curve and maybe even more best practices that we can start to share over time.00;40;08;19 - 00;40;30;01UnknownSo we definitely want to make sure we're passing those on to our community of, you know, we learned this and let's take these actions and do these kind of things to be ahead and keep our credit. Good. And then when it does come down, let's get the right help, to get right back up to that 680, you know, or kind of higher Mark.00;40;30;03 - 00;40;52;03UnknownOkay, good. Well, let's see any other Bri, any other final pro tips, words of wisdom? No, just try to pay it on time. And if you don't, hey, you know who to call. All right, guys, I hope you got a ton out of that conversation with Brianna from Chatham credit. Remember, great deals and great financing go hand in hand.00;40;52;03 - 00;41;06;06UnknownThe more you understand how credit works, the more control you have over your investing future. This is part of our ongoing funding series, so if you missed the earlier sessions with US Lending or American Heritage, go back and listen to those. Thanks for listening and I'll see you on the next episode.
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