CURTIS NALLEY | How To Build Good Credit & Fix Bad Credit - Explanation That Will Make You Rich | Millionaire Secrets #16

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