Personal Finance & Credit Mastery - Get your finances in order & build a top-tier credit file | Juan E. Galvan | Skillshare

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Personal Finance & Credit Mastery - Get your finances in order & build a top-tier credit file

teacher avatar Juan E. Galvan, Digital Entrepreneur | Marketer

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

22 Lessons (2h 13m)
    • 1. Personal Finance & Credit Mastery

      5:07
    • 2. The Game of Credit

      6:57
    • 3. Cashflow Quadrants

      8:50
    • 4. The Power of Compound Interest

      3:54
    • 5. What's Your End Goal?

      5:59
    • 6. Rules of Personal Finance

      6:34
    • 7. Assets vs Liabilities

      5:38
    • 8. The Psychology of Debt

      8:34
    • 9. Good Debt vs Bad Debt

      5:20
    • 10. Analyzing Your Spending Habits

      3:31
    • 11. Understanding FICO Credit Scores

      7:15
    • 12. Why You Need Elite Credit Status

      7:35
    • 13. How Your Score is Calculated

      10:10
    • 14. Tradelines

      3:50
    • 15. Revolving vs Installment Credit

      3:36
    • 16. Secured vs Unsecured Credit

      4:13
    • 17. Credit Card Tiers

      7:47
    • 18. Building Your Credit Foundation

      3:27
    • 19. 10 Credit Laws

      6:18
    • 20. Intro To Business Credit

      10:01
    • 21. Set Up Your Business Credit Correctly

      4:49
    • 22. Business Credit Bureaus

      4:02
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About This Class

Personal Finance & Credit Mastery Masterclass

In this personal finance and credit masterclass, you're going to learn how personal finance works and how to build and maintain top-tier credit status so you can reach your financial goals!

This course is for complete beginners where you're going to learn tips, techniques, and methods to build and maintain top-tier personal credit status. 

Even if you already have some knowledge, or want to learn about the advanced tips and techniques for building a top-tier credit profile, this course is for you!

In this class you’ll learn: 

  • How to build a top-tier credit profile
  • How to create a budget
  • How to analyze your credit profile¬†
  • Understand the different types of loans
  • Learn¬†the differences between good debt vs bad debt
  • Learn the differences between assets vs liabilities
  • Learn how to keep track of your finances
  • Learn how your credit score is calculated
  • Learn the power of compound interest
  • All of this and much more!

No matter what the scenario or how complicated you may think¬†personal finance and credit is, this class gives you the foundational training you need to become proficient¬†with personal finance and personal credit¬†‚Äď and start achieving your personal financial goals!

Meet Your Teacher

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Juan E. Galvan

Digital Entrepreneur | Marketer

Teacher

Hi I'm Juan. I've been an entrepreneur since grade school. My background is in the tech space from Digital Marketing, E-commerce, Web Development to Programming. I believe in continuous education with the best of a University Degree without all the downsides of burdensome costs and inefficient methods. I look forward to helping you expand your skillsets.

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Transcripts

1. Personal Finance & Credit Mastery: Welcome to the personal finance and credit mastery masterclass. My name is 1 and I'm going to be your instructor in this course. This course is broken down into four different sections. We're going to go over each one of those in great detail. I'm going to walk you through what we're going to cover in each section. So you'll know exactly what to expect in this particular course, personal finance and getting my credit in order wasn't something that I learned in school. This is something that I had to learn on my own through doing tons of research. Understanding how personal finance works, understanding how with a credit system works. And so I want to be able to share with you in this course exactly how you can also get your personal finances in order and build a credit score that is going to allow you to be able to benefit by getting credit extended to you at very low percentage rates. This course is for beginners or even some of those that have some experience already with personal finance and maybe understand some of the fundamentals of credit. So by the end of this course, you're going to be able to know exactly how to manage your personal finances and be able to build a credit profile That's going to allow you to get extended credit with very low interest rates. In this master class, you're going to get access to a document that's going to help you analyze your spending habits and layout exactly where your money's going every single month so that you can make decisions based on where your finances are currently in where you want to go. So our project in this course is to be able to go through that document. We are able to analyze your budget, analyze your spending habits, layout exactly where your funds you go on each and every month so that you can understand where everything is being allocated. So you can maybe cut some things out, maybe add on some things that are going to help you improve your financial literacy, but ultimately, be able to understand what is important, what's not important as far as your budget and your spending habits. So let's go ahead and jump into the sections overview. So Section 1, this is going to be the course introduction. In this particular section, we're going to go over the game of credits. I want you to be able to understand why credit is really just a game. And if you understand how to play the game and the rules of the game that you're going to benefit by getting credit extended to you at very low interest rates. And then we're going to go over the cashflow quadrants. We're going to be able to get an understanding of what these are, how they work. Then we're going to cover the power of compound interest. And then finally in Section 1, we're going to go over what is your end goal? What do you ultimately looking to accomplish by increasing your financial literacy, by improving your credit, right? What is your ultimate goal? You're looking to buy a house or you're looking at getting a new vehicle, are you looking to start a business, right? Whatever that may be, we really want you to be able to narrow down exactly what your end goal is. And then in section two, this is where we're going to cover personal finance mastery. We're going to go over the rules of personal finance. We're going to cover the differences between assets and liabilities. We're going to go over the psychology of debt. So you can really get a fundamental understanding of what it actually is. And then we're going to go over good debt versus bad debt. And so this is where you get a fundamental understanding of your credit scores, why you need elite credit status, which is typically going to be a score of 700 plus. And then we're going to cover how your score is calculated. We're going to go over primary versus authorized user trade lines. We're going to cover revolving versus installment credit, secured versus unsecured credit. And then we're going to go over the various types of credit card tiers. What type of credit cards you'd be getting? What type of credit cards are best if you're just starting out and building your credit. What type of credit cards are the best for you to get if you already have some credit under your belt, but you're looking to get additional credit and you're looking to be able to maximize that amount. And then we're going to talk about building your credit foundation. This is going to be for those that are just starting out or maybe don't have a solid credit profile. And then finally, we'll cover the 10 credit loss that you must understand. And then finally in Section 4, we're going to go over the introduction to business credit. So this is something where if you want to start a business, maybe you have an existing business. We're going to be able to walk you through, show you how you can get access to higher credit lines for your business. So we're going to cover an introduction, the differences between personal credit and business credit. How to set up your business correctly so that you're able to get access to business lines of credit. And then we're going to cover the various different types of business credit bureaus, right? With the personal credit, there's different credit bureaus. And then for the business credit, there's other credit bureaus as well. And so what's important for you to understand the differences between those two? So I'm excited for you to join me and let's go ahead and get started and I'll see you in the next lesson. 2. The Game of Credit : In this video, we're going to go over the game of credit. So we talked about in the course introduction, how credit is really just a game, right? So in this lesson, I'm going to walk you through why it's again, why it's really all about being able to take advantage of their different loopholes techniques, right? Tips tricks, right? All those different things that are going to give you the upper hand, the advantage ring. And so just think about like, if you are scouting somebody or you're scouting the other teen and maybe you're a football team, right? You're going to be doing a lot of your due diligence as far as maybe looking at some of their previous opponents, maybe looking at some other individual players, right? And so this is a kind of stuff that we're going to be doing as far as being able to look at what are the loopholes, what are the different things that we could leverage, take advantage of so that we can get ourselves the upper hand in the game of credit, right? So let's go ahead and jump in here. Okay, So as I mentioned, credit is just like a game, just like any other sport or competitive activity out there, right? There's always going to be winners. There's always going to be losers. And so you always want to be on the winner side. You always want to be at the top of the podium, right? Being number one. And so the winners understand the rules of the game and they use them to their advantage, right? They leveraged them. And what ends up happening is that, and so the losers are not aware and don't care to figure them out. Okay? And so here's the thing you'd think about sports in general. And so what I want you to think about is let's say there's a basketball team, okay? And a basketball team may not be as physically gifted, may not be as talented, right? But why is it that an underdog can actually beat a top tier team at any given time. Well, it's because those individuals that may not have the most talent, may not be the most skilled, can develop a game plan, right? And actually beat the top to your talent at their own game, right? So those that are actually putting together a game plan that have done the research that understand how the credit game works, right? How the system works. Those are the ones that are going to be at the top of the game, right? And actually the winners. And so those that don't know the rules of the game typically are lazy. And they don't do their own research. They're not out there investing in themselves that you are, right. And actually taking the time, energy and resources to better themselves and understand why credit is just like a game. And what kind of techniques, tips and tricks, right? Can they use to help them become better and overall be able to leverage the credit system, right? And so here's the thing. Banks want to extend credit to you, but first, they need to know that you'll be responsible with it. That's why it's critically important to not only build up that credit score and get that leed credit status, but be able to maintain that. And it's critically important because again, you can build up that credit score to 700 fairly easily. The biggest thing is can you maintain it? And that's the biggest thing here is we want to make sure that we build habits and that you have a certain process that you can follow step-by-step, which are going to be able to have in this course and learn so that you can have that elite credit status level, right? But also to be able to maintain that so that you are staying in the game, so to speak, right? Because as soon as you miss a payment, as soon as you're late on something or you don't take into account a payment that was supposed to be made or whatever that may be right. Hiccups issues. You don't want to be able to have that reflect on your credit report because remember, this is all perception. We're building this up. We're showcasing that were successful individuals that know how to manage their credit. Which after taking this course, you're going to be one of those individuals and understand things can happen. However, it's really important for you to be on top of your credit. And to understand that this is a game and you have to put your best foot forward and have procedures and processes in place so that you don't miss payments and that you're not forgetting to make a payment here for getting us make a payment there, whatever that may be, right. You want to be on top of the game. And so those who use credit responsibly acquire assets that generate income. That's one of the biggest things that I see a lot of entrepreneurs really leverage and take advantage of is credit, right? Being able to use debt in a way that is conducive to them being able to purchase assets that are income-producing. Okay? And just like I mentioned previously, right? It's not too difficult to be able to reach that 700 and credit score, right? The biggest thing is maintaining it, right? Because it's a lot easier to get that credit score than it is to actually keep it. Because let's say you get a credit card for 10000 or 20000 and you just have a burning hone your pocket. You're like, Man, I want to go out there and just buy this, buy that, and just give myself all these different things. You do not want to be able to take that type of mindset you want to be able to understand credit. Remember, right is, again, it's not something that we do where we are getting these large credit lines and reusing them maliciously or without proper strategy, right? We want to be able to understand that this is all just a game and we're using the credit system so that we can get access to high levels of credit, typically through a business. And that is now reporting on our personal credit so that we can go out there and invest in a new business in different investments and something that is going to produce income ramp. And then developing a strategy and an end goal is vital for your success. So think about what is your ultimate outcome, right? What do you want to actually accomplish here with elite credit status? So you wanted to buy property, are you wanting to maybe get into real estate investing? You want to get into crypto, right? Whatever that is there, you know, you really want to understand and keep that in mind because that's going to be your whole sole reason why you're building the credit obviously is going to be for yourself and for your family so that you can get good rates and you can get access to credit. But are you wanting to do something else? What you want to start a side business, decide house. Alright? So really think about what type of outcome you're looking for with having elite credit status. So that's going to be here for this one, and we'll see you in the next one. 3. Cashflow Quadrants: In this video, we're going to go over the cashflow quadrant. Now, this is something where it's really going to give you an understanding of the four different stages that you're going to go through as you decide to become an entrepreneur. Or if you decide to be no self-employed, or if you're an investor, we're going to go ahead and go into the different stages here and how this cashflow quadrant works, it's very important for you to understand it or give you a better indication of where you're currently at and where you're looking to get to as far as reaching that next level. So let's go ahead and jump in here. So the cashflow quadrant was created by Robert key Lusaka. If you have now read the rich dad, poor dad book, I highly recommend you pick that up. That's a great book on how he walks you through his two different types of data that he had when he was growing up, he had a rich dad and then a poor dad. A poor dad was essentially somebody who was a doctor, I believe was, he made well into the six figures who are successful, quote unquote, by no normal, conventional standards, right? And was often very broke, right? Because he didn't know how to manage his money, he didn't know how to invest. And then he had a rich dad who I believe didn't graduate college, didn't even get a high school diploma, and was able to be very, very successful and be a multimillionaire. So very important. Check out that book, highly recommended. So let's go ahead and walk into the four different quadrants here. So there's four different quadrants here. You can see there is number one, there's the employees, There's number 2, the self-employed, then there's the business owner, and then there's the investor. Okay. So the employees and the self-employed, those are going to be in obviously somebody who has a regular nine to five job or somebody who maybe is self-employed, maybe they have like a, you know, maybe they're like a plumber or there's somebody who runs I can local service business rank, those who are self employed types of individuals. And then on the right-hand side you have your business owners, the ones that actually run a successful business with multiple employees, right? You have the investors which are more like the individuals that invest equity, right? Where they put in some money, they invest into their company or maybe into some stocks or crypto. And then they benefit from the increase in value. And so let's look at the employees and self-employed in more detail here. So as I mentioned, the employees are the 95, right? These guys are typically your regular workers, right? They're the ones that have maybe just a regular nine to five. Maybe they've gone to college, they've gotten a degree, they have a good job that pays him pretty well, right. And then there's those that are self employed, right? These are professionals, these are doctors, these are attorneys, Engineers, Accountants, right? They don't necessarily have a business because in order to really have a sustainable and an actual real business, there needs to be where you're not the only person in the business because if for whatever reason you wanted to give vacation or you or you're not able to work, then that business needs to be able to function on its own. If you're self employed, you literally are the business, right, so to speak. So very important to keep that in mind. And then the business owners, right? These are the ones that have a system, have people in place. They don't necessarily need to be involved in the business as far as the day-to-day operations, they have people processes, systems in place where at any given time, if they want to step away, right, they can do that. And having a business will give you the best chance for creating wealth and financial success, right? Because you want to be able to create something where you're not having to be there all the time and it's not reliant upon yourself because if whatever reason you get sick, you want to take a vacation. You want to be able to have your business still operating, still running, without having to have any type of interference with yourself, right? And then the final stage here, digging a little deeper, the eye quadrant, this is the investors, right? These are people that own some type of stock, own different real estate, you know, small businesses, right? Corporations, et cetera, right? These guys are the ones that typically are your investors that come into, let's say, at the beginning stages of, let's say a tech company or to the company in general. And they are the first level investor. So let's say somebody has an idea for just a simple application or whatever, an app, right? And then these guys have some money and they say, Hey, I want to put down 10 thousand. Your idea. There are going to then get a percentage of the company's far as equity. And then they're just literally participating in the upside where they're not necessarily, you know, oftentimes involved in the day-to-day operations or really in the company in general, they're just more taking a backseat approach and just saying, Hey, here's some money. I believe in you, I believe in your idea. And then go and actually grow the business because I want to see my money grow, right? And so the easiest way for you to be an investor is to invest in various stocks. Cryptocurrency, right? Cryptocurrency right now is hot and it's going to continue to be hot for. Years to come. I think it's obviously going to be the future as far as, you know, the money supply and you know how the actual crypto currencies are used, the technology behind them, right? There are so many use cases for these. And so a lot of times right now, what you're looking at is a lot of speculation, but there are still huge amounts of gains to be made in the cryptocurrency markets, right? In the actual stock market, right? So this is where you're going to kind of take a backseat approach too. Your gains where you're not involved in the day-to-day operations. You're more just researching the companies, researching maybe the cryptocurrency. And then you're placing your money in there and then investing in there, right? So this is a cashflow quadrant here. There's those four different areas. And as you progress through your journey, you're going to notice how at each stage it's completely different, right? And there are certain skills that you need to have in 1-stage versus the other. And maybe right now you're just an employee and you want to become self-employed. Well, in order for you to graduate from this level to the next level, you have to understand that you need some sort of high-income skill, right? Because when you're self employed, you can be self employed and be like a copywriter, be like a marketing consultant, right? You can help somebody with their online business, right? There's a lot of different things that you can do to increase your value to the marketplace and have a high-income skill that will allow you to be self-employed, right? Copywriting is one of those skills where if you know how to write, copying away that is able to convert actual traffic into customers. People will pay you a lot of money for that. And so when you move from those stages of first-year an employee, then you're self employed, then you're a business owner, then you're an investor. Then you're going to be able to notice just how different each one is and the importance of being able to increase your skill set and your value as you move up those different chains, as you move up, as you move up the ladder. Now, you can be an employee and also being an investor by investing in stocks and cryptocurrency, right? And so a lot of times these are going to be overlapping. You can be an employee and still be also self-employed on the side by running like a side hustle, right? Maybe you're doing copywriting on the side for a little bit so that you can earn some extra money before you're able to quit your job, right? And the same thing with the business owner Ray. A business owner can be somebody who runs a business, has several employees, has an actual full-fledged operation running, and then they're also an investor, right? They invest in different companies. They invest in the stock market cryptocurrency. There's gonna be some overlap in these different quadrants. And so it's really important for you to understand where you want to be, what stage you want to be out, right? Which quadrant you want to be. And making sure that you're putting in the work so that you can gain the skills, the insight, right, to be able to move to that next stage. So that's going to be here for this one, and we'll see you on the next one. 4. The Power of Compound Interest: In this video, we're going to talk about the power of compound interest. So compound interest is something that is really, really powerful if you really understand how you can leverage it. Because this is something where you can increase your investments over time, almost exponentially. So let's walk through the power of compound interest. Okay, So the power of compound interest. Now, albert Einstein once said that the most powerful force in the universe was the principle of compounding. And investing in finance, this force manifests itself through the concept of compounding interest. In simple terms, compound interest means that you begin to earn interest on the interest that you receive. So you're multiplying your money at an accelerating rate. So if you have something that is earning one percentage or two percentage or even 10 percentage, that 10 percent is going to increase 10 percent and that's going to increase 10 percent, right? And so it's just massively increasing. And so a good example here is if you have $500 and you earn 10 percent interest on it, you have then $550. Then if you earn 10 percent interest on that, you earn $605. And so this is a great example here, and so, so on and so forth until eventually your original $500 is passed, and until your original 500 dollars is eclipsed by the amount of interest that you've gained, right? Because your interest keeps on multiplying, multiplying, multiplying. The foundation behind compound interests is the concept of the time value of money, which states that the value of money changes depending upon when it's received until having $100 today is better than getting a year's time down the road, right? Because you can invest it right here, right now to generate income, degenerate dividends, right? And compounding interests allows that money to grow. So that's really what the power of compound interests is really all about. You think about people that have like a 401 k. You have somebody that has a Roth IRA array. These are investment accounts where you're putting in a certain amount of money each month and it's increasing and it's compounding because of the interests that is gaining on top of the interests, on top of the interests, right? It keeps on increasing at an accelerating rate. And so opportunity cost here is something that you also want to keep in mind. Opportunity cost is the loss of possible gains. Action is not chosen, are taken right? And in this case, the amount of money you do not receive, if you take no action width there. If you do not invest $500, then you've lost the opportunity to earn $50 that you could have gained in a year. So this is why it's great to just have like a retirement account, to have money on the side where it's growing and you just sit in there because the interest is going to be compounding in gaining massive, massive growth. So this is a power of compound interest. I really wanted to give you a brief introduction here, an overview what this is really all about. And if you want to learn about this further than I highly recommend you check out some YouTube videos. You go on YouTube, and you go on Google, you do some research on your own because this is extremely powerful here when you can have a retirement account a, you know, IRA, Roth, 401 k, right. All of these different types of retirement accounts, you can be able to put money in there and have it increasing year after year, gaining the interests on top of the interests. And so extremely powerful year as far as the power of compound interest. So that's going to be here for this one, and we'll see you on the next one. 5. What's Your End Goal?: In this video, we're going to talk about your end goal. Because you are going to discourse here and you're learning about how to get elite credit status, how to maintain it, right? And then how to be able to leverage it to get access to high credit limit credit cards, right, business credit, credit for yourself. And so we really want to think about an outline. What is your end goal? What do you ultimately want to accomplish? Because if you're just kinda go into this course and, you know, kind of going through the motions and don't really know what you ultimately want to accomplish. It's going to be very hard for you to stay motivated, to be able to make the right decisions right? And be able to maintain your credit after you get that elite credit level of status, right? So let's go ahead and jump into what is your end goal. So what exactly do you want to accomplish would delete credit status, right? Let's say you have above 700, your 700 Club, right? What is the outcome do you want to achieve with having your credit? You want to start a business. You want to start real estate investing. You want to buy a house. You want to invest into the stock market, cryptocurrency. You wanted to start a side hustle, whatever that may be. It's really important for you to write down what exact type of outcome that you want, okay? And so why do you want? It is really, really important here. If you just have an outcome, that's great, that's a start. But if you don't know why you want it, then it's going to be very difficult for you to stay motivated and actually get after it, right? Why is it important to you, right? Why is it important for you to be able to start a business, right? Maybe because you want to start a business or that you can build a legacy for your family so that you can build generational wealth or that you can leave them with the business that they can run after you're gone or whatever they may be, right? It's important for you to understand why you want it and why it's important to you. And then how are you going to get it? What is the plan? What is the action plan strategy that you're going to layout as far as, okay, you have 700 plus credit. You can pretty much get any type of business credit that you want. What am I gonna do once I get that credit right? What's the plan, what's the action plan? And then how will you know if you're succeeding or half succeeded? What is your outcome look like? How specifically going to look? Is it where you're going to have, let's say you start real-estate investing, you're going to have maybe five properties that you have as rentals that you've purchased. Or maybe if you start a business, you're going to be making X number of dollars or income per month. Or maybe you're going to have X number of clients, right? What does that look like and how did you know that you're succeeding, that you're heading in the right direction. Because when you are essentially looking to find if you're succeeding and moving in that right direction, you need to be able to take a micro and macro type of outlook is let me give you an example on there. So let's say you are somebody who is in the wilderness, is in the forest. And you have a machete and you are cutting up the leaves or you're cutting up the branches, you're making a path right through the forest or the wilderness, right? And you're cutting up hat because you want to be able to walk through it and get to the other side, right. And so you're cutting the branches, all the different things that are in your way and you're making a path. But you have to not only be able to make that path, but you also need to be able to go on top of a tree and be able to go up there and look from the very top and make sure that you're heading in the right direction, right? Because if you just are just making a path and you're just going to wherever that takes you, then you're going to be somewhere where you don't want to be versus you're making a pap, okay? Then you take an a step back and you've gone up to the tree and you look in whom? Yep. I'm in the right direction. I am. I am making a path to where I want to be and you're controlling it, right? Versus you just make it versus just making a pat to wherever it takes you, right? You want to be able to know that you are on the right path and you need to be able to balance the doing right being in the moment and actually take an action on what you're doing. And then taking a step back, going up to the tree and taking a big picture view of, hey, this is actually where I need to be at. I'm actually moving in the right direction or I need to adjust what I'm doing, right. And then how will you make sure that you get back on track if you get off course, right? What is something that you can really anchor onto? And know that, hey, this is my y, this is the reason why I'm even doing this, right? Or this is why this is important to me. So I'm going to give back to why I'm doing this. It's a very, very easy for us to get distracted or for us to essentially lose track of what we're doing because maybe we have a pretty decent job or making it pretty decent income. And we would prefer to be in a safe mode and that's not a good place to be. And if you're really looking to build wealth, if you're looking to build income. If you're looking to start a business, you want to be able to make sure that your why and why it's important to you is very, very solidified in your mind so that you can really make sure that you're getting back on track. So remember, your end goal is really, really important here, understanding what is the ultimate outcome that you want. Why is it important to you? How are you going to get it? How will you know that you're succeeding, right, by taking them macro and micro, perspective and view. And then what are you going to do to make sure that you get back on track? So that's gonna be here for this one, and we'll see you on the next one. 6. Rules of Personal Finance: Okay, So in this video, we're going to go over the rules of personal finance, right? Because, because remember you're going through this course, you're understanding how to build a good credit. And then once you reach that 700 level, right, that elite credit status, you want to be able to also maintain that credit. And that's where personal finance comes into play. Because if you don't have different systems, different processes in place, and don't understand the oldies rules. And then it's going to be very difficult for you to maintain your credit worthiness. So let's go ahead and jump into the rules of personal finance. So the number one rule of finance is spend less than what you earn. Very, very simple, right? I mean, it's no rocket science here. You make a certain income. You don't want to spend more than what you're making. That's where typically lot of people fall into the trap of overusing, overspending their credit cards. They're spending thousands of dollars on their credit cards because it's just available which there they want to have the latest technology, the latest gadgets because they can write. And that will negatively affect your credit, right? And your ability to get additional credit. So rule number 2, self accountability for your money and your choices that you make. This is huge. This is something where once I started to take self accountability for every single choice that I made in my life, regardless of whether or not I had a positive outcome or a negative outcome, right? Whatever type of outcome that I had or experience or whatever, maybe I always took self accountability. And when I started to do that, my life changed because I no longer started to look at my life as someone who's playing the victim, who was a victim of my circumstances, I took control and I said, Hey, I'm the creator of my life. I create my reality. And I understand that every single choice that I make, things that I have in my life right now, I attracted and I can push away or I can attract whatever it is I want, right? And so self accountability for your choices and for your money is critical and crucial for every single thing that you're looking to accomplish in life in general. Not only with personal finance, but, but it's really personal finance that we're focusing on here. Because if you don't take control of your payments, if you don't make sure that you're making your payments each month, you don't have it on your calendar. You're not setting reminders. You don't have auto pay. You're missing a payment here and missing a payment there. That is all your fault. Once you're able to understand that it's always you're going to be your fault and that you can control that then that's really where the game is going to change for you because you'll see things as not happening to you, right? Just like out of the blue and that you're, you know, got bad luck. Is that that's what you're attracting, that's what you're letting happen, right? And so once you're able to understand that you have the control, then that's what things will change for you. And then rule number three, use your money to invest in assets versus liabilities. When you have, let's say, $10 thousand credit card, right? And you see something that you like that you don't really need. I mean, is it really worth it to get into debt for something that you don't really need, right? And so you're willing gotta think about it. If it's not producing income, if it's not something that's going to benefit you, it's probably not a good idea to buy it because you're going to put yourself in debt. And you're just going to have something that maybe is a, either a onetime use or maybe you buy and it feels good when you buy a book. And maybe just sits in your closet and you don't really use it, right? Just think about all those different things that you bought. Just haven't really used because it just sitting in your cause it already was exciting as far as the experience of buying a banana, necessarily using it or putting into use, right? And then rule number 4 is, live below your means. Living paycheck to paycheck is not a pleasant way to live. This is where I believe it's about 80 percent of the US lives paycheck to paycheck, right? That is not a great way to live. You want to be able to live below your means, live below what you're actually making, so that you have money left over to invest, to put into different things. And you're not just worrying about going out there and getting payday loans are different things that you need to make it so that you can make it to the next level, right? So that or getting things that you need so that you can make it to the next week, right? Paycheck to paycheck is not a good way to live. Paycheck to paycheck is not a pleasant way to live, so highly recommend, live below your means. So make sure you follow rule number 4, live below your means. And then number 5, avoid useless debt. This is huge, right? We talked about this previously in row number three. Where if you are not just using your money, where, where if you have credit or if you have money to not really spend it on things that you don't really need. I mean, I understand here in there, right. You want to get something for yourself and that's okay. I'm not saying, Hey, it's not good to not get yourself something nice every so often. But if you understand that it's important to not make it a habit, right? And be constantly buying things that you don't really need because of the experience of buying it. Because remember, a lot of times it's not necessarily the item that we're buying, It's the experience of buying something, right? The biggest thing here that I want you to take away from number five is don't buy something on credit unless you can pay it back right away, right? With cash in the bank. Very, very, very important here. I cannot stress this enough. Do not buy something on credit unless you have money in the bank to pay it back right away, okay? Credit should be used wisely and strategically. It's different if you're buying an asset that will produce income, right? If you have, let's say something that you know, it's going to make you more money than your actual monthly payment for that credit, right? Then that makes total sense. But if you're buying something just because you want it and it's not going to be producing anything for you, then I'd highly recommend staying away from that. Okay, So these are the five rules of finance. That's it for this video here, and we'll see you on the next one. 7. Assets vs Liabilities: In this video, we're going to go into assets versus liabilities. So this is a very important video here as well. I want you to be able to understand what are the differences between these two. Why you want to have more assets versus liabilities? What's the differences between? Why are they important for you to understand and what you're ultimately going to be able to do, and how you can leverage assets to increase your net worth. So let's go ahead and jump in here. Okay, So assets very, very simply are the items that you own that can provide future economic benefit. Remember, economic benefit in the future, right? Very important. Something that is either providing value right now or is increasing in value. And so liabilities are what you owe to others in short, acids put money in your pocket while liabilities take money out. So a very simple example here can be acids that are stocks, cash, bonds, retirement accounts, right? Real Estate, personal valuables, cars, right? And cars, and real estate. They're also going to be in the asset section, but they can also be in the liabilities because when you buy a car, right, you have a loan against the car. And so oftentimes when you're buying a car, it tends to depreciate, right? And especially if you're buying a brand new car, once you buy it and you take it off the lot, it depreciates, I think 20, 25 percent. So a car can be also an asset and a liability simultaneously. Same thing with real estate, right? If you own real estate and you have a mortgage on there, but you owe pretty much what the property is worth, then that's pretty much a liability because you're just making the monthly payments, but you owe what the property is worth. So ultimately, real estate and cars and items where they're secured, right? And we'll talk about secured and unsecured later, but items that are secured like real estate where there's an actual physical asset that is secured against the loan, the money that you're borrowing, right? Tend to be sitting on both sides of the balance sheet or the profit and loss, right? Assets and liabilities are going to be on both sides when it comes as something that is secured by a physical asset. Okay. And then liabilities, mortgage, car loans, student loan, personal loans, and credit card debt. Liabilities are essentially everything that you owe, right? So this is where you're balancing your account. This is where you're balancing everything out, right? You have assets that are income-producing or that are valuable, that are increasing in value right in the future, right? Just like with real estate, we talked about that it can sit on both sides of the balance sheet here, what the assets and liabilities with real estate, it can be increasing, Let's say you, oh, you know pretty much what the property is worth. But five years from now, it may be worth 10 percent more, right? So then that's an asset that is increasing in value, but it's also a liability because you owe money on it, right? So It's kind of a double-edged sword there, but really say, oftentimes. But real estate for the most part is going to be an asset because it's always going to be, for the most part, increasing in value year after year. And so rich people acquire assets, right? Those, that understand how the system, how the game works, right? And on the other hand, the reason why the poor and the middle class do not become rich or reach any type of financial independence is because they acquired liabilities that they think are assets, right? A lot of people want to keep up with the Joneses. They want to have the latest gadgets, the latest clothes, or whatever the current trends may be. Write as simply a matter of asking, do you actually need that? Or do you simply want to write? A lot of people will put on this show. They put on this perception that they are rich, that they're successful, right? They'll have the latest close, the latest jewelry brands, shoes, all of this stuff that showcases to the outside world to Hey, I am successful, I have money, you know, whatever it may be. But in reality they may be just living paycheck to paycheck because they're having to spend all this money to look a certain way when in reality, they are actually just make an a by, right. Versus those that can be multimillionaires, can just live a simple life and not have the latest brands, not have the latest gadgets, the latest close or, you know, the latest cars. And you know, be seen as somebody who is normal, right? So it's really about that perception. And it's really about understanding how can you use your money to make more money and buy assets that are going to be producing income for you and having future economic benefit to you versus having liabilities. Typically always going to have liabilities because when you're borrowing money, when you're using credit. But it's about having liabilities that are able to increase in value versus liabilities that are just there because you wanted this, we want it that, and then once you take it home, you don't have any other value that's derived from it. So very important here to understand assets versus liabilities. And that's going to be here for this one. And we'll see you on the next one. 8. The Psychology of Debt: In this video, we're going to go into the psychology of debt. Now this is a very, very important video here as well. I really want you to go into this video here, understanding that debt is not a bad thing, and it's not a good thing. Because oftentimes we're taught that something is either black or white. You see the binary, right? It's either a good or to their bad. It's either black or it's either white. And things are not necessarily either or, okay. It's typically going to be somewhere in the middle is where the answers reside. Okay, and so we're going to walk into the psychology of debt and why. For my perspective, I look at something and where myself and a lot of different entrepreneurs that are successful, that make things happen out there. And they look at debt as something that is a tool that is useful for them to be able to leverage to increase their value as far to increase their net worth, to increase their assets, right? So let's go ahead and jump into the psychology of debt. So most people are in debt because of excess consumption and have no budget in place to track their expenses or their income, right? So remember, most people are going to be in debt and in the bad form of debts because they have no budget in place, they have no strategy, they have no method in place for them to be able to understand. Ok, I'm going to take on this dip because of x, y, and z, which is going to get me a, b, c right there. Just like, Hey, I have this $10 thousand credit card and I want to buy this over here. I want to buy that over there or hey, let's go on to shopping spree. That's the bad kind of debt that you don't want to have, right? And so because that is often easily accessible, the temptation to just bite things and pay for them later creeps up on us. Now, this is a trap because it then becomes a habit, right? Whatever daily actions you take, right? Become habits. And then those habits are essentially what you produce and what you do, right? And then they are essentially getting you a certain outcome. So when you look at credit in a certain way, and so when you look at debt as something that is just about going out there and buying this by Nat and just being a consumer, then those habits are going to be ingrained in you. And you're going to, you know, not necessarily know or understand anything better than that, right? And so what I want for you is to develop new habits as you're going through this course and understand that debt is something to be used as a tool, as leverage, right? And so something that I really want you to understand here, and this is really critically important here when it comes to debt, okay? And using it very strategically to be able to get the outcomes that we're looking for, whether it be buying a property, starting a business, right, getting those high credit limits through either like an LLC or just a business, whatever that may be. The number one rule here that I want you to keep in mind in having a back of your mind always right? Is that do not buy something on credit, that you cannot immediately pay back, right? This comes in to the fact that when we're building up in maintaining our credit on a personal level, we do not ever want to buy something on credit, cannot be immediately paid back, okay? So essentially, very simply put here is do not spend money that you do not have. It's very, very simple, right? Because when you spend more money than you currently have, That's where you're developing habits of getting into debt. And that's the last thing that you want. Because oftentimes you're buying things that you don't really need, right? Versus if you're buying something that is actually going to pay back dividends, right? Payback in future growth or an asset, then it makes sense the buy something that maybe you need to max out your credit card with. But that's going to be when you're using like business credit, right? And we'll talk about that later in this course, how you can actually get upwards of six figures and business credit cards that are not reporting to your personal credit, but you're leveraging your personal credit to get these access, to get these high limit credit cards for your business that are not reporting on your personal credit report. Okay. But as far as for your personal credit and for your personal credit report and you're building a sub strategically to build up a good credit file. Do not ever spend money that you do in a hat. And so if you carry your debt or from month to month at high interest rates. And so one of the things with credit cards is that if you don't use them responsibly, if you don't have a plan of attack is strategy rate, just like you're going to discourse and you learning to develop that strategy where you're building your personal credit so that it can be something that you have as a report card, so to speak, right? Where and when you go into the banks and you're saying, Hey, I want to borrow some money because I want to start a business and that you can get access to these high credit lines without them showing on your personal credit. That's pretty much what you're looking to do here, so that you can have access to more opportunities, right? And so credit cards make it very easy for you to spend money that you don't have. Very tempting. So that's why I'm in there in debt and a very bad way, right? Because they're and they're in debt. And they have bad debt. That's the biggest thing here. It's okay to be in debt and have it be like on your business and where it's now reporting on your personal credit. And you're actually using it to acquire assets that are income-producing or provide future economic growth benefits, right? But when you're just buying stuff and it's not useful to you. There's pretty much as liabilities that are going to be coming with it and there's no value attached to them, then that's where the problem comes. Because like we talked about earlier in this course, credit isn't very difficult to come by, right? It's the fact that once you have it, it's very tempting to go out there and spend it, right? So very, very important to understand that. And so debt should be used strategically, right? Just like I just mentioned here, in new CPUs with an outcome in mind, right? A good example in here is I'm going to go and get these credit cards here and use them and immediately pay them off so that I can build a great credit profile. I can improve my credit rating, which will allow me to get access to business credit cards with extremely high limit. So just to kinda give you a quick understanding of how you can get access to these high limit credit cards here for your business. So what you'll do is you'll have like let's say 700 plus credit score. You have good credit report there for actual banks and financial institutions to look at you and say, Hey, you know what, we can give you X number of dollars. And so what you're ultimately doing is you're leveraging your personal credit. You're going out there and you're getting credit cards in the name of your business, leveraging your personal credit, right? One bank may give you 20000, another pig may give you 10, another bank may give you five. And at a bank may give you 15 or whatever, right? And so all of that adds up. And so you can get anywhere between 50 to up to six figures in business credit. And it's not showing on your personal credit report. This is the beauty of it, right? Because you can have your personal credit report just showing your personal credit cards and maintaining that profile. And then have upwards of six figures in business credit that you have access to that is not reporting to your business, that is not reporting to your personal credit. I mean, it's powerful, right? So that's gonna be here for the psychology of debt, right? I really just wanted you to get an understanding of that. Debt can be a good thing and a bad thing. Debt can be both good and bad. And it's really about how you look at it, right? Using that to acquire assets, to increase the value of your net worth or to increase the value of your portfolio. Or if you want to build a new business or whatever that may be ranked, debt can be used in a strategic way to increase your future economic growth. But then debt can be used in a bad way by buying liabilities, bind things that don't have E, future growth, right? So that's going to be here for the psychology of debt. And we'll see you on the next one. 9. Good Debt vs Bad Debt: In this video, we're going to go into the good debt versus the bad debt. So in the previous lesson, we talked about the psychology of debt, right? Understanding that debt can be good, can be bad. And so here we're going to be talking about the specifics of good debt versus bad debt. So let's go ahead and jump in here. So good debt generally refers to debt that offers a return on your investment, right? Like student loans can be something that is good debt, a mortgage, right? Having real estate. And then on the other hand, bad debt usually means the items that you purchase, like close trips or just gadgets, or just trying to keep up with the Joneses, right? That aren't necessarily investments because they don't appreciate in value. Anything that doesn't appreciate in value is considered bad debt, okay? And so an example here of bad debt is you buy a 60-inch flat-screen TV and see that you got lucky and maybe you found it on sale for only $1200, right? You put that on your visa, on your credit card and you're paying 18.9% on it. And let's say that you pay only $60 a month, which is the minimum rank. It would take you 63 months to pay that off and you would be paying $1676, right? So that's the thing with credit card and that's the thing with debt. And using it in a very bad way, you're paying oftentimes more than you need to four items. And then not only that, if you let say, utilize your entire credit card amount as far as your limit, That's actually going to have a negative effect on your credit score and your credit rating. And we're going to get into the credit rating factors in another section, another video. But this is more of just letting you understand that whenever you're maxing out your credit cards, whenever you're using your credit cards to buy things that are not necessarily going to increase in value. That is bad debt. And so you want to avoid the financial experts that say avoid all debt altogether. You know, good example is Dave Ramsey. I'm sure he's just talking to a certain segment of the population that has problems with debt, where they're buying things like this here, where they're just buying a big screen TVs, the latest gadgets, and have thousands of dollars of debt from department stores, right? Those are the people that want to avoid debts because they're not necessarily looking to buy assets or acquire different things that are going to increase in value. So because remember, debt can be good and it can be bad at the same time. It's all in how you look at it. And it's really about the types of items that you're purchasing. So for example, let's say you've done your research and you found a great property, and you get a mortgage right on that real estate property. And it's an up-and-coming neighborhood, right? So you're buying an asset that's going to be ending up giving you a return on your investment because this type of purchase is going to end up giving you a return through a higher home value over time, right? Because it's going to be increasing in value as time passes. And you're also paying down the principal, right? So you're paying down the principal, it's increasing in value. So that is an asset. So it's really important for you to understand the types of good debt, the types of bad debt. And why did you want to stay away from the bad debt and only use your credit cards to purchase things that you can pay immediately back and buy things that are going to allow you to increase the actual value of them or increase know the actual future economic benefit that you're going to get. And so ultimately, when you use debt responsibly, it can help you start a business, start a side hustle, learn a new skill so that you can create financial freedom, right? One of the biggest investments that I tell people to make when they first are getting access to credit and to capital from their business, right? Because when you're getting your credit profile and your credit started and you're building it up in your maintaining it. You don't want to spend a lot on your credit cards because you want to keep a low credit to balance ratio, okay? And we're gonna talk about the specifics of that in another section, another video. However, when you get the business credit and you get access to very high limits, those are not going to report on your business, those are not going to report on your personal credit file. And so a lot of that, what you want to do. And so what I recommend people do is Spend some of that credit on investing in yourself on developing a new skill, right? Starting a new business, whatever that may be, right? Because ultimately, people that are looking at debt as bad are going to stay in their current situation versus you getting access to this high limit debt is going to allow you to get this credit, is going to allow you to be able to use it wisely, is going to allow you to leverage that debt and invest it into something that's going to produce a gain over time. So that's going to be here for this one, and we'll see you on the next one. 10. Analyzing Your Spending Habits: In this video, we're going to go over analyzing your spending. So one of the first things you wanna do when you're starting out and you're looking at your expenses, your income, you want to analyze where you're spending your money. Okay, So let's go ahead and jump in here to analyzing your spending. Despite relatively high incomes compared to the rest of the world. Most Americans have a hard time saving a good percentage of their income. This is due to not having the right education, not researching, right, not taking matters into their own hands. And it's just a matter of, hey, let's just spend, spend, spend and not really worry about the consequences, right? So they don't really understand how the system works, right? But that's going to change for you because you're actually going into this course. You're getting your credit repair it and you understand the value of looking at your spending and being able to analyze it in a very precise manner. So one of the first things that you wanna do when you're getting on top of your finances is figuring out where you're currently at in terms of your spending habits. Whereas money going whereas money coming in, you know what type of expenses that you have that maybe you can cut back on that you don't really need, right? Maybe ten bucks here by a dollar air, twin bumps there that you don't really need to be going out and that you can eliminate, right? So make a list of your expenses on a monthly basis and you're going to get access to this very nice spreadsheet in this course where you're going to be able to lay out your income, your savings accounts, your expenses, right. As far as your rent or your mortgage, electricity, utilities, cars, all of that stuff there where you can really keep track very specifically, and layout how much money you have coming in, how much money you got going out, and what you can cut, right? So that you can really be on top of your finances there. And so you can use tools such as mint.com or you need a budget.com. And then these tools are really going to help you out because they're going to give you a snapshot of where your money's going, right? So both of these tools are very, very powerful. Mencius going to be free and it gives you more like a snapshot. But the unit of budget is a paid service, but it gives you more capabilities. If you really want to make significant changes to changing your spending behaviors and habits, right? And so the five major expenses are going to be housing, transportation, utilities, food and debt, right? And so this is where you really want to look at how much money is going to each one of these five different areas, right? And so just like I mentioned, you're going to have access to this dark here. You're going to be able to fill out, you know, how much money you have committed as far as your income, worthy expenses going, you have no, let's say Netflix. You have HBO. Do you have all these different things that maybe aren't necessarily the best thing for you. Where you can maybe be investing in yourself, maybe researching or just not learning something that can actually increase your value, right? So that's going to be here for this one. So very, very important here, start to analyze your spending. Use one of these tools here. Start filling out this dark with all of your income, all of your expenses, so that you can know how much you have coming in, how much you have going out, and you can really understand where you're currently at so that you can then map out where you want to be. So that's going to be here for this one, and we'll see you on the next one. 11. Understanding FICO Credit Scores: In this video, we're going to go over the fight go credit scores. Now these scores are going to be the most important scores that you want to pay attention to. Because there's really two different types of scores. There's the fight goal and a vantage. And we're going to go over both of these types of scores in this particular section here. But really, what I want you to get an understanding of this particular lesson is how these fico scores work. The different types of fico scores, because there's actually quite a bit of these. And why these are so important for you to be able to monitor on a daily, weekly basis, even monthly basis, right? Because you want to be on top of your scores. You want to have some type of monitoring service, and most likely you already have that if you're in this course because you want to be on top of your credit and making sure that there's not something that's getting on there that isn't either yours or maybe somebody has used your information to create accounts, right? You want to be monitoring your credit scores on a daily basis. Okay? So let's go ahead and jump into the fight goal credit scores. So 50 stands for the Fair Isaac Corporation, okay? Or fecal, right? And so what does the is, and what this really is here is it creates a variety of credit scores for use by lenders, credit card issuers, and other creditors, okay? And so just like I mentioned in the beginning of this lesson here, there's going to be several different types of fico scores, right? It's not just going to be your fico score, and that's it. It's going to depend on what type of fico score is pulled, depending on what type of loan or a credit you're looking to get, right? So there's nine different versions of the fico score. And the fico score ranges from 300 to 850. And the most widely used fight go version is a fecal eight, okay? And if you're looking to get a car loan or a mortgage loan for your real estate. Or if you're looking to get some credit card or an installment loan, there's going to be different types of fight goes that are going to be pulled. That's why it's really important for you to understand the different variations of these cycles. So if you take a look at the top image there on the right, you have the fico score eight, and that's going to be the most widely used 50. Then you have the auto lending fight goes right, you have the 50 out of score eight, then you have the ones that are mostly used in the credit card space, right? Whenever you are looking to get access to a credit card, maybe through Chase Bank or let's say through any one of these financial institutions. They're going to be more often than not pulling the credit card version of your 50. And so that's going to be the bank card score eight. Sometimes they'll pull the fico score three, and then the 50 bank card score to it all depends, right? But for the most part, it's going to be the version 8. And then we have the versions for the mortgage lending. So if you're looking to get a home loan, if you're looking to buy property, you're going to have the fico score to, or the fico score five or four. So very important to be able to monitor these. And essentially what ends up happening is that your scores will, for the most part B very similar, right? Obviously, you can increase one or the other by making sure you have similar accounts, right. So if you for whatever reason have no home loans or no previous home loans, right, then your mortgage lending fico score may be a little bit lower than your actual fico score, right? But it's just something to keep in mind here. These are going to be fairly similar. There may be off maybe 20 points or so. But it's really just to make sure that you understand that there's going to be variances, there's going to be differences as far as the fight go. Types of scores that are pulled for each unique situation. And if you look at the image right below that where you have the various types of credit scores. You'll see that the two types of credit scores that you want to be in as far as the ranges is going to be the 670 to the 799, right. So the good credit score rating, that's going to be where you're able to get a decent amount of lending institutions come in at you and you're able to give very good rates. Now, if you want to get that elite level status credit, you want to be in that 740 plus, right? That's where you're pretty much the top of your game. And you're able to get pretty much any type of financing that you're looking for for the most part, right? Anything above an 800 is obviously fantastic, but it's more of a vanity thing. It's not necessarily necessary for you to be in a 100 type of credit score because it's just more of like a vanity, like I'm saying, it's not really going to do that much more for you, right? Because you're already and a reach the max of your credit score. So what you really want to begin as you want to be between 1740 to 799. That good credit score there as far as the 677, 39, that's still going to be pretty good. And you're going to be able to get quite a bit of lending through that particular credit range, right? However, if you want to be at the very top, you want to be at that level status. You want to be 740 plus. And then we have the vantage score. So the vantage scores are not the same as the phaco. Okay, Very, very important here. When you go to like let's say Credit Karma.com or you go to like NerdWallet. These places that give you these credit scores there that your vantage credit score, and they're not going to be the same. They're typically going to be higher than your fight goes. And the biggest difference here is that you have places like the Credit Karma and the NerdWallet and whatnot. They'll give you these scores for free, right? There's no costs while 50, those scores are not free. You have to pay for those. And that's what, and that's because 50 actually charges the actual lenders and the institutions right to actually get access to that score. So very important here. So very important here for you to understand that the vantage scores that you get for free off these different resources, different places online. Those are not going to be the ones that are being pulled by the majority of lenders. You want to focus primarily on the fico scores because that is what the lenders are going to be looking at, okay? The vantage score is just something that is there for you for free. You to give you an idea as far as what kind of range your n, because you can have a 700 vantage score but only have like a 6 third year 620 fico score. And that's a pretty big difference there, right? So very important for you to understand the differences between advantage in the fight go. And understand that 50 is going to have varying types of scores based on what type of lending you're looking for. So that's going to be here for this one. And we'll see you on the next one. 12. Why You Need Elite Credit Status: In this video, we're going to go over why you need elite credit status. So when you have a leak credit status, you put yourself in a different position than most people out there because most people have either average credit, Fair Credit, or oftentimes low credit. And then now, especially with this previous pandemic, There's a lot of people actually in that low credit mark, whether miss payments, they've had to, they've actually had to have their loans and they're different credit accounts either go into collections, are either be charged off. So it's an unfortunate situation at this time, but it's also fortunate for others to be able to come in here, let yourself and learn about the elite credit status and what you can do to not only reach that elite credit level of status, but maintain that. So let's go ahead and jump in here to why you need elite credit status. So with bad credit, you're always paying more fees and higher interests is just the rules of the game, right? It's just how the game goes. You're always going to be having to pay very high interest rates. You're most likely not going to get access to high limit credit cards. They're going to be typically secured. Or you're just not really going to be able to get any type of loans. And here's one of the biggest things that I want you to keep in mind is that money is not what separates classes of people. It's the information and resources and your willingness to actually go out there and research the information, right? That's where a lot of people just really lose in the game is because they don't take the time to go out there and research the information. There's so much stuff that can be found on Google, on YouTube, so many books on Amazon. But it's just why is it that most people don't actually do the work in the research? And that's because it's not important to them. Okay? Because if it was important to them, they would do whatever it takes to actually learn the material. And that's why you're here. You're going to this course, you're getting your credit repaired and you understand the importance of having the credit status. And so the higher the credit score the lessor will cost to borrow money. Finance bigger purchases like mortgages and cars, and the more options that you'll have. So a good example of this is when you have, let's say 700 plus credit score, you been able to reach that elite status level. You can go out there and actually gig business credit cards, right? And have them be 0% for up to 24 months. We're going to talk about that in another video. But just think about that. If you are getting access to credit for up to two years, right? Thousands of dollars, up to six figures, right? And you're not paying any interest for up to two years. I mean, that is almost free money for up to two years, right? And you can move those Balanced transfers air from the major banks down to the lower tier banks down to the credit union. So you can actually be paying 0% for, for several years. And so, so when you have that elite credit status level, you're able to go out there and get money, right, get credit at very, very low rates, oftentimes at 0%. So very, very powerful there. And so an example here of a lending institution that charges very high rates for those that have low credit scores, right? Are the payday loan lenders, right? These folks typically will get somebody from one week to the next. This is where people are living paycheck to paycheck, right? Not the most pleasant tablet experience. Believe me, I've gone through this. I've had to take out payday loans years ago on a weekly, bi-weekly basis and it just was not a great place to be and right? Because you're paying these ridiculous rates, right? And also think about those subprime credit card issuers, right? Where were you having to put money on the accounts and then you're able to use them. Or where you have to have a secured credit card, you gotta put money up front first and then you're charged interest on top of that, right, on your own money. And so this is where these particular products are marketed to those individuals that lack the information, right? They don't go out there and do their own research. They don't take time and energy to go out there and actually, and look at the options that are available to them because they just don't know any better. And so obviously, with going through this course, you're going to know better. You're going to have an understanding of how to get that elite credit status, but not only that, maintain that. So very important for you to understand, to stay away from these payday loan lenders, stay away from these subprime card issuers. Now, unless you're doing a strategy in the very beginning with you having low credit or no credit. And you're getting these subprime cards and as long as they're reporting on your credit report, right? That's a different game, right? That's a different ballgame there where you're doing it strategically just to be able to build up your credit. And that's one of the things that I did as well when I was rebuilding my credit is I got these lower to your credit cards that were even secured, that turned into actually unsecured after about six months of payments. But I did it strategically knowing that, hey, you know what, It's all good, I'll pay the secured amount in the beginning, pay these high interest rates, but I'm doing it just so I can build a timeline of online payments, right? A reputation. And so if you're doing it strategically, that's a different story. And so having elite credit status gives you a multitude of options, right? We talked about the 0% cards for several years. We talked about being able to get credit lines at 3%, 4, 5% percent. We talked about There's so many options out there when you have credit scores above 700 now. And so having a leed credit is just like having a gun. You just have to learn to use it correctly. Lee credit status, you can get funds to easily start a business, right? We talked about the 0% loan interests. We talked about the 0% credit cards earlier where you can get access to these credit cards at 0% for several years. I mean, it's extremely powerful, right? And there's a lot of different cards that offer reward programs, that offer free travel, free hotel stays, bright, free upgrades, and all these different things that come with the rewards of you being able to use these credit cards that offer these very low rates. And after you spend a certain amount, you get these rewards added to your cart. And when you have elite credit status, you're just looked at differently, right? You can qualify for jobs that require having decent credit. Because nowadays, a lot of employers will look at your credit report and look at your credit scores because they wanted to see what kind of person am I going to hire here, right? Kind of person are we bringing onto the team either responsible? Because you can tell a lot about a person from their credit score, right? And so it's just critically important for you to have this high level credit score and reach that elite credit status level so that your entire life can change. Because once you have a leak credit status, new doors will open up for you that you never thought possible. So that's going to be here for this one, and we'll see you on the next one. 13. How Your Score is Calculated: In this video, we're going to go over how your scores work. So how your score is actually determined, right? What are the factors? What are the things that come into play in order for you to be able to reach that 700 plus level credit score, right? So let's go ahead and jump into how your scores work. So your scores are calculated through a variety of different methods here, right? Through a variety of different factor. So 35 percent of your credit score is your previous payment history, right? This is the biggest percentage SY, when you have even one late payment, that will drop you down 5060, even up to a 100 points. So very, very important because this is what lenders look at for your credit worthiness. They want to be able to see if we extend credit to this individual here. Are they going to pay us back on the agreed upon terms, right? And so very, very important for you to understand that the majority of your credit score is determined by your payment history, right? So very, very important here for you to understand this. And then the second factor is going to be the amount of debt you carry in relation to how much is available. So the important thing for you to understand here is that you want to be looked at as somebody who uses Credit Wisely, okay? You don't want to be looked at as somebody who's overextended. That's why I recommend. And for the most part, you want to have your credit card limits or your loan lemon, right? Depending on what kind of loan you're getting. If you're getting like a installment loan, right, you're getting the full amount right away and you're just paying off the balance. But if you're getting like a credit card, right, that's, let's say $10 thousand. You don't want to have any more than 10 to 15 percent of the balance of that card in use at any given time. This is critically important here because your scores will actually drop if you have more than that. I would say 25 percent is the max, but I would still look to have it. Ten to 15 percent is the most ideal. Okay? And so this is really about making yourself look like, you know how to use credit and you're not overextending yourself, right? And then when we go into the business credit cards, that's a different ballgame, right? Because you're building up your credit score here. And you're building up your profile. And you're doing it in a way where you're showing banks that you are responsible. And so the first thing that they're going to do when you're looking for more credit is look at your amount that you have, that it's actually being used. The great thing on the business credit side is that you're leveraging your credit scores on your personal side, right? To get these business credit cards. And once you get them, they're not reporting on your personal credit report. So that's the beautiful thing because once you have these business credit cards that are actually going to be higher amounts, right? Let's say you have a twenty-five thousand dollar credit card limit for your business that you got. And you leverage your personal credit. You can use that entire $25 thousand on that credit card. It'll never show on your credit report. That's the beautiful thing, right? Because as a business and business credit, that's looked at differently than from your personal credit report, right? So that's one of the beautiful things about being able to have your credit at that illiquidity status level so that you can get access to these higher limits for, let's say a business and be able to utilize the entire amount of that credit card balance in that habit affect your personal credit score. Okay, but for personal credit cards here, you want to make sure you're never going above ten to 15 percent, 25 being a max, but I recommend ten to 15 percent being the most ideal. And then 15 percent of your score is the average age of your accounts. So this is the longevity, right? You want to be able to see history here as far as how long you been using credit, right? How long it's been established, right, the oldest age of your account. And so one of the biggest things here is that if you have accounts that are old and that are just kinda sitting there, do not close those out. You want to maintain those to be open even if you're not really using them, because that will increase the length of the count history, right? What are the things you're you can do to increase the age of your accounts is by giving an authorized user, right? This is going to be through. Maybe you purchase an account or maybe you have somebody that's, you know, a family member that can get you on to their authorized user where you're not using their card right there, just putting you on there so that you can get the age of that account reflected upon your credit score. And that's going to be good for if you're looking to get funding, right? It all depends on the situation. But that's really just what it's used for their authorized users have not been as useful as a previously were. And the biggest use for them now is not necessarily the amount of the credit line for these authorized users. It's more on the length of the amount that they've been open. So if you have an authorized user account that's 10 plus years old, I mean, that is huge there for adding a credit histories far as the length, right? So very, very important there for you to also understand. And then 10 percent is the mixture of credit. So what type of credit accounts do you have frame. So they really look into, do you have retail accounts? Do you have installment loans? You have credit cards, right? You have mortgage loans, auto loans. That's really what this is referring to here as far as what type of mixing you have on your rapport and elect to see, you know, a good variety of mix. But that's really if you're looking to get the a 100 plus where you're looking to have perfect credit score. And that, like I've said before, is more of like a vanity deal. You don't need that 800 plus credit score because you're not going to get negative 0% credit cards, right? Once you're in that 700 plus range, right? And you are able to showcase the hey, I know what I'm doing, my credit and responsible. You're able to get the 0% credit cards. And if you're in that 800 place, I mean, you're not really going to get any more. It's just a vanity deal. So the thing here is the most important type of credit for your report is going to be the revolving credit card lines, okay? That is what most individual lenders out there are looking at. They want to see how you actually are able to work with money that you have access to. You know, far as credit lines that you're having to pay back, are you paying it each month responsibly on time? Are you keeping a low balance, right? Are you able to use credit wisely? And so that's the most important type of credit account that the lending institutions are really looking at. So very important for you to understand that. And then 10 percent is new credit and inquiry. So overall, if you are looking to get credit and you're looking to get credit, you know, very quickly, and you're getting a bunch of inquiry is rank. That's showing the credit system and the lending institutions that you are somebody who is at high risk because you're seeming needy, right? Just think about a relationship or a personal relationship, romantic relationship where you are coming across and you're just like, Hey, you know, I like you, you're the greatest thing ever. You know what, you'd be my girlfriend. Would you be my boyfriend, right. You're coming across needy and it's kind of, you know, unattractive, right? So same thing here when you're going out there and you're seeking out a bunch of loans, a bunch of credit, you're looking, you're getting looked at as somebody who's needy, who is a bit of a risk because you are looking to get credit because there may be something going on in your life. So you want to be able to stay under the radar and not have too many inquiries and not be applying for a lot of credit, short period of time, okay? So this is how your scores work. These are the different factors you have. The most important being the credit history, right? You have the most important factor being the payment history, right? Remember, it's about paying each month extra agreed upon date, and then making sure that you have a low percentage of debt to credit ratio, right? You want to be in that ten to 15 percent. You don't want to have a $1 thousand credit card and have it be maxed out. You want to be between a 100150, maybe $200 max, right? On that credit card showing at any given time. And remember, one of the rules within the personal finance area is you want to be able to buy something right away, be able to pay it off either within a few days or or really as soon as possible. I would say I wouldn't go a week over buying something and then paying for it. Because you create this habit of just buying something on credit and you're like, yeah, you know, I'll pay for later, right? But make sure that you're obviously you're falling within these percentages. You're never reaching over that 20, 25 percent, ideally ten to 15 percent. You're making your payments on time, right? And that you're getting a good mix of credit and you're not applying for credit all at one time and you're looking desperate. So very, very important there for you to understand. And then also remembering that the most important type of credit that individual lenders are looking at and looking for, for you to have is a revolving credit card. So very, very important here. And so that's going to be here for this one. And we'll see you on the next one. 14. Tradelines: In this video, we're going to go over trade line. So we're gonna go over the differences between the primary and the authorized user trade line. So let's go ahead and jump in here. So primary versus authorized user trade lines. So the primary trade lines is a credit account that is opened in your own name, right? So this is your own credit account that is showing up on your own credit report. And it's showing that you are the primary individual that's using this account, right? You are the actual borrower. And so that means that you are responsible for making sure that you make the monthly payments, that you're keeping your balances at a certain percentage, right? And so this is all going to be shown on your credit report as a primary account, okay. Now with an authorized user trade line, this is something where if you're maybe just starting out or you have low credit or not so much credit, you can use an authorized user accounts, right? And where you are able to get on somebody else's account. Okay. This is not where you're getting another primary or you're getting something in your own name, you're going to like, let's say your mom or your dad or maybe a friend or whatever that may be. And you're getting authorized user account where you're getting added to their particular credit card accounts, okay. And then you get the benefit of the history of the payment history, right? And it's not going to be where you're responsible for it. But also think about this. There is the benefit of you being able to get the actual age of the payment history. But if any given time that individual misses a payment or they are keeping their balance very high, right? That's going to reflect on your credit report as well. So very important for you to understand that. Yes, you are going to get some benefit from being on somebody's authorized user accounts, right? Bead an authorized user on their accounts. But if they're not being responsible at the Missa payments that keep their balance up, your score is going to have that negative effect, okay? And so authorized users are best for adding age to your credit profile. It's not really about the credit account. It's not really about the amount of the AU because lenders are able to see that it's an authorized user. This is one of the biggest things here. When lenders are pulling up your credit report, they can see which ones are primary and which ones are ADUs, right? And so the biggest thing that you're doing with the AUC is it's not about the amount of credit limits or the credit amount. It's really about the age of that particular AU. So if that card is ten plus years old, they have perfect payment history. That's going to be transferred over to your accounts, right? And it's not going to weigh as much as a primary, but the age factor is going to play a factor, right? So if you're going to go the route of actually buying a trade line, you can do that. Add the H, However, most of them, we're only going to stay on your rapport for two or three months and that's going to be enough time for you to just within that two to three month window, go out there and actually get credit utilizing leveraging the AU on your account for those two to three months. So, so that's the difference here between primary trade lines and authorized user trade lines, right? You obviously want to focus and make sure that you're getting primary trade lines that are showing up on your report because you're responsible for them and they're going to have more weight. So that's going to be here for this one. And we'll see you on the next one. 15. Revolving vs Installment Credit: Okay, So in this video, we're going to go over revolving versus installment type of credit. So there's really two different types of credit here. When we think about the revolving, that's going to be something where, you know, just like it sounds like it's going to be a revolving amount where you're getting access to credit, you pay it back, right? Installment is more of, Hey, here's $10 thousand pays back within a given timeline. So let's go ahead and dive into revolving versus installment credit. So credit cards are the most well-known types of revolving debt. With revolving debt, you borrow against the established cradling, right? So if you have a $1000 credit card limits, right? And you use a $1000, you are not able to use anymore credit, and then you've got to pay that back either on monthly payments or or just paying it off in full in an obviously based on the knowledge you've acquired through this course, you're never going to be utilizing your credit cards and these on your personal side to match them out, right? You're going to only use ten to 15 percent within that range and you're going to pay it back as soon as possible, right? Almost right after you buy the actual product because you want to build a habit of paying your debt as quickly as possible on the business. Criticize, remember that's a whole different ballgame. It's a whole different story. And you can actually have your credit cards would be maxed out and just paying the minimum because you're using those to acquire assets and they're not showing up on your credit report, right? So credit cards require a monthly payments. If you pay the balance in full each month, no interest will be charged. And whenever you pay less than the full amount of balance, you're going to be charged interest, right? So revolving credit is the most important. We talked about this as far as the credit factors and you know what your score is determined by credit cards. The revolving credit is going to be the most important factors. Credits, that is on your report, okay? With this dominant that you borrow a fixed amount in one lump sum, unlike a credit card, right? You can't keep borrowing as you pay off your balance. So let's say you go to a financial institution and you get a loan for $10 thousand, right? You get that $10 thousand upfront. However, you're having to pay monthly payments on and you can pay back the minimum, you can pay back more, but it's going to be one lump sum. And installment loans have a predetermined end date. So you need to be able to make sure that you're making at least a minimum, right? And then, and so just think about mortgages, auto loans, student loans, personal loans. These are all examples of installment debt because you're getting everything up front and you're getting the balance. And two, That's the biggest difference here with revolving credit credit cards. You have up to $10 thousand, let's say, to use on that credit card. And you can use that full amount, but you obviously you don't want to because It's going to reflect negativity on your report that you're using pretty much all of your balance. And so you're going to be high risk or score's going to go down, right? Versus an installment loan, you're getting everything upfront and then you're just paying it back through monthly payments. And is typically where you have an end date of when the loan should be paid off. Okay, So that's essentially the differences here between revolving credit versus installment credit, right? That's going to be here for this one, and we'll see you on the next one. 16. Secured vs Unsecured Credit: In this video, we're going to go over secured versus unsecured credit. So let's go ahead and jump in here. The secured versus unsecured credit is really about whether or not you have some type of collateral or not. So a secured credit card requires you to make a minimum deposits, known as a security deposit, right? And so this is required in order for you to receive a credit limit. And the deposit is typically $200. And now this is just for secured credit cards. More often than not, if you're buying any type of physical products, you're going to get secured loans, right? So just think about real estate. So secured credit cards are often marketed towards people that are looking to build or rebuild their credit, right? And as a result, the security deposit acts as collateral if you default on your payments, but it's completely refundable. If you upgrade to an unsecured card, or oftentimes what happens is after six months or so, your card will automatically revert to an unsecured card and then you'll get the actual deposit back. Okay, So oftentimes if you're just starting out, this is a great way to start building up some credits. Or if you have credit where you are needing to get removed a bunch of negative items that on your report writing. And you need to start kind of fresh and you want to get some credit. Goan secured credit is probably one of the best ways for you to get started because it's going to show up on the positive payment history side, right? I remember when I first needed to give my credit backup and running, right. I had to get some of the security credit cards, very high interest on you to put money down, but they were fantastic because they allow you to build that payment history, which is very important, obviously, making sure you're keeping your 10 to 15 percent balanced. But these are marketed towards individuals with low credit. You're obviously using all of these strategically rain so that you're building that positive payment history and credit profile. So after six to 12 months of on-time payments, the cards will typically graduate to an unsecured card and you'll get your deposit back like I mentioned. So this is pretty common. You'll see once you're with a lending institution after six and 12 months, you'll be able to get your actual deposit back and then it'll be an actual unsecured cart. And so unsecured cards do not require any type of deposit or collateral. At this stage, you have some good credit, right? About 650 plus, right? You don't have the best credit, but you have decent credit, right? You're not at the elite credit level status, but you have decent enough credit where you can get extended credit cards and not have to have any type of collateral, not necessarily going to beat the best rates. And they're oftentimes not going to be at very high limits, right? And so some more examples here of secured credit as going to be a home loan or a particular car loan, right? Where you have that physical asset that you're securing against the money that you're borrowing, right? When you're borrowing from the bank and you're only putting down, you know, let's say 10 percent of a home loan of, let's say simple example here of a 100 thousand, you're putting down 10 thousand, right? And so the rest of the 90 thousand you're getting from the bank and the actual property is collateralized. If for whatever reason you defaults, the bank gets the property back right? So That's the biggest thing here. Do you want to understand as far as a secured and unsecured unsecured requires no collateral, no deposit, right? They are extending new credit based on your credit worthiness. That's why it's important to have the elite credit status. And you can take advantage of very high credit limits even at 0%, right? And then the secured credit cards are going to be those that require you to have some sort of collateral, require you to put something down, right? Because you're typically going to be the most at risk. So that's going to be here for secured versus unsecured. And we'll see you on the next one. 17. Credit Card Tiers: In this video, we're going to go over the different credit card tiers. So let's go ahead and jump in here. Okay, So the level one credit card tear, this is going to be if you're just starting out as far as needing to rebuild your credit or if you have little to no credit, this is going to be level one here, $200 to $100. And this is where your score ranges between 300 to 579. And so don't be discouraged if you're here because obviously you're working on your credit report. Now you're working on removing the negative items. And even if you need to restart back again here, at this stage, you're still going to be able to build some credit using these cards. They're going to be able to help you get back on your path. So this is the entry-level credit rank. This is going to be your basic subprime credit cards that you're going to use for building backup your credit. And so if you're needing to build up your credit again, these are the list of cards that are going to be helping you with your query journey. And so all of these report to all three credit bureaus. So that's really important here, right? You don't want to just get credit. That is just reporting to one or two reports, right? You wanna make sure that they're reporting to a3 credit reporting agencies, right? So you have the Capital One platinum credit 1, first premier credit, open sky self lender, Bank of America secure discover in green dot primer. Now, the majority of these are going to be secure. But it's important for you to understand that it's something that you're going to need to do if you're just restarting your credit journey. So make sure that you're doing this. Because ultimately your intention is to get back up with these cards, right, get your credit backup and get some credit history under your belt. But because a lot of these secured credit cards, like we talked about previously, after six months or so, you're going to turn into an unsecured card, right? So regardless, these cards here are still good if you're using them strategically, you're obviously not using them to go out there and buy bunches. You're obviously not using them to go out there and just buy a bunch of stuff. You're using them strategically to rebuild your credit. And so then we have level 2, right? Tier 2 here. And this is going to be four scores ranging between five to 669. And the amount here is going to be between 100 to 4500. And so at this stage, you can consider yourself to have decent credit, right? You're not necessarily having great credit. You're not in that 700 plus level, however, still have a decent amount of credit that you can get access to, right? And so the credit cards here are discover IT, Chase Freedom, J, slate, Capital One, Quicksilver, American Express blue in the city that will cache. Now, at this stage, you should be focused on quality and not quantity. You should only accept an apply for Prime banks and creditors listed above, right? Because these are going to help you build that strong credit profile. So here are some resources that I recommend you go check out because they're going to actually let you know what credit reporting agency these cards are pulling from. Because each one of these different providers are going to be pulling from one or the other. And so you can go on there and see, Okay, this particular discover IT cart is being pulled by experience. The American Express being pulled by TransUnion, right? And you can see which ones are being pulled to that. You can make sure that that particular credit reporting agency, that score that you have on that report is being reported as accurately as possible. And then level 3, right. Tier 3, this is going to be for scores between 670 and 7, 39, anywhere between five to 10 K. And so at this level, you've shown your credit worthiness, solon, you're responsible, and you are getting access to these high credit amounts. But remember, the, remember you're limited to only being able to use about 10 to 15, maybe even 20 percent of the amounts. Because if you use any more than that, then it's going to show that you're using your credit and you're using irresponsibly, right? Because you want to stay between that ten to 15, ten to 20 percentage as far as credit use, right? So here you have the chase Barclays. You have a lot of different Chase cards. You had a Capital One Quicksilver, and then you have the American Express and city double cash. Now, these are all personal credit cards, right? And so $10 thousand, that's decent, but it's not as much as you'll be able to get. But if we're looking at business credit cards, some of business credit cards you can get are upwards of 25, 30, even 50 k, right? So the big thing here is that at this stage, you're going to be able to get access to credit cards and the high dollar amount. So you wanna make sure you're taking care of business right at this stage. And then some of the other credit cards here that you're going to be able to get access to. And again, check out the US credit card guide.com. And suddenly he's cards, you're going to be the chase Barclays, American Express, right? Capital One City cards plus a lot more. So make sure that you're using the resources here, US credit card guide.com. And then the other one here is the credit boards.com. Okay? So then we have the Level 4 here, which is the elite credit status level. This is where you've reached that level. Where were you have 740 plus 2, 799. Okay. And like I've mentioned previously, the 800 credit score is just for vanity. It's not going to help you get negative 0% for Hank. Because once you reach this score here, 750 or so, you're able to get 0% and a lot of different credit cards, right? So you'll get a boatload of different offers come in at you in the mail through your email, right? Shown that you are a top tier credit individual. You've shown lenders that you are credit worthy and that you know how to maintain your finances and you know how to borrow money, pay it back, and also making sure that you're not using more than your extended right. And so just like I mentioned at this stage, you can get those 0% offers. And so the 0% cards here are the American Express, Blue business cash, Americans bank, Citizens Bank, Key Bank, and then the BBVA Compass business rewards credit card. Now, now keep this in mind. Very rarely are you ever going to get 15, 20, 25, K and personal credit. As far as personal credit cards now, you can get those and they are some out there that you can get. However, it's going to be not very useful for you. Because remember, you're only able to use ten to 15% of that arose. If you use more than that, you're going to be seen as higher risk. So there's no reason to get 25, 30 plus k on a card. We can only use a percentage of it, right? That's why these, when you get these cards here that are business, right, you're able to get these and actually use the full amount for business expenses for business growth, right? So this is the most important thing here. You can get these business credit card simply by getting an EIN or filing an LLC, right? And we'll go over that in the next section as far as getting started with business credit and how to set that up. So make sure you do your research at US credit card guide.com plus credit boards.com. So that's going to be here for the credit card tiers. And we'll see you on the next one. 18. Building Your Credit Foundation: In this video, we're going to go over the Credit Foundation. So this is really giving you an overview of how you can rebuild your credit. If you have a lot of negative items there, you're kinda starting from scratch, so to speak, where you have a lot of negative items that are being removed. And you want to be able to get back to that elite credit status level rank. This is where you can rebuild your credit Foundation and have it set up so that you're able to get credit lines, right, different credit. It is going to help you increase your score. So let's go ahead and jump in here to the Credit Foundation. So depending on where you are, you'll need different types of credits and then unique strategy, right? Every, every situation is going to be unique, every situation is going to be different, right? We're going to assume you have little to no credits or have quite a bit of negative marks on your report, such as collections, charge off, late payment, et cetera, right? So at this stage, you want starter credit cards and other primary counts that will report positive payment history, right? I helped the foundation is a minimum of five past or current accounts reporting. Ideally, you want three open revolving credit lines at any given time. These are going to be the credit cards, right? The revolving, remember, these are the most important. And so some of the good starter cards here are the first premier bank, credit one bank, Capital One secured, TD Bank, Bank of America secure. So these are going to be good cards for you to get starting out. And so these are going to require a credit check. However, they're going to be great for you to start building up your credit, right? So here are some that are no credit check that our cards and their loans, okay, So these are going to get you, you know, extended credit. No matter what, you could have 0 score, you can have the 300 credit score and you'll still get these cards. Okay, so the biggest factor with these guys here is that you're putting up some collateral, or you're getting an ostomy alone, or they're actually able to report previous payment history. So the open sky, the green dots, all of those are secured by obviously the same thing here would apply bank. Those are going to require you to put down two hundred, three hundred dollars, right? And then you'll be able to build credit that way. But it's a good thing to do because you're able to build up that payment history. And that is what is most important here, right? So then you have the self lender to self lender is an installment loan where they're extending you credit for as an actual loan and then you're paying it off on monthly payments, right? Same thing here with the credit strong. You're getting extended alone. And it's an installment loan where you're paying it off on a monthly basis. And as the payments come in, the balanced decreases in then that payment history is shown on your report. Remember, Porter's is also great because you're able to get credit for your previous payments for your rent. And this is huge here because this alone can actually improve your credit score. So this is a good credit foundation here. If you are wanting to get credit and your scores are very, very low, you want to get credit with no credit. Check how the recommend these accounts here, right? Obviously, every situation is going to be unique. But if you're just starting out as far as rebuilding your credit backup, highly recommend you check these out. So that's going to be here for this one, and we'll see you on the next one. 19. 10 Credit Laws: In this video, we're going to go over the 10 credit loss. So this is very important year for you to understand because this is something that if you follow these laws, you're going to inevitably always have elite credit status because you are making sure that you're not going above and beyond your means if you want to be able to stay within your means and use credit strategically so that you can get the outcomes that you're looking for. So let's go ahead and jump into 10 credit loss. So long number one, respect your money, okay? A lot of rich people never show off their money. That's a really good book that I recommend you check out. It's the million or next door, which has a lot of different examples of millionaires that are only spending money on essentials and don't really care about buying the latest gadgets, you know, spending money on things that they don't really need or just trying to keep up with the Joneses, right? Respect is earned and it's not given. Gotta keep that in mind. And then Ember to respect your health, you can't afford to miss work or become sick, right? Medications are expensive. Make sure that you're keeping up on your exercise at least a few times a week, right? Because then you'll be able to perform at your best. And that's all connected and correlated with your credit, right? Because if you don't have money, if you're not able to work and you know, it would it pay your bills and that's going to have a negative effect on your credit. And so number 3 here, don't buy a new car. Always buy use very simple, right? Because soon as you buy a car that's brand new off the lot, I think it depreciates about 20 to 25 percent. So always make sure you're buying used cars. Don't spend more than $500 on any vacation, holiday, or spoiling yourself, would, you know, different lavish gifts that you don't really need? I understand. Every so often, maybe once every six months. But remember, we're making sure that you're paying this as soon as possible right after you get it. So, so remember, it's important for you to keep in mind that you're using credit strategically, right? You're no longer using it to just by step You don't need or that you want, you're using it so that you can get a certain outcome. So don't carry balances on credit cards unless it's an emergency. Using credit cards and carrying balances continuously is dangerous, right? Because then you build up the habit of doing that on a regular basis. And that's what you don't want. You wanna make sure you're paying them off as soon as possible right? After you use them, right? For example, for me, I'll go out there and I'll buy some groceries or whatever would my credit cards. And I will pay them off within the next 23 days, right? Because I worked for the payment to post and then boom, I'll make the painting because I don't want to carry balances. I want to use my credit strategically to show the lending institutions that I know what I'm doing and that I should be rewarded with more credit, right? And then law number 6, don't cosine for anybody. Don't do this for your friends, for your family. I know they're going to maybe thing that you're a bad person or whatever. Remember, this is your credits. And it's important for you to understand that nobody's going to care about your credit as much as you are. So do not put yourself in a tough situation and then create a longer number 7, sell any excess possessions that you don't need. A second car, motorcycle, jet ski, shoe collection, whatever happens, right? Because an emergency, you want to be able to have access to capital writes a credit so that you can deploy it as soon as possible. Instead of having to self stuff that you don't really need that you have at any given time when it's an emergency because then it'll be too late, right. So make sure you're being proactive and you're not needing to have to sell things that you don't really need that are just sitting there in a garage, right? And that you're able to have access to credit whenever you need it. And then eight, look for additional income or a side hustle, right? Even if you can find a simple revenue stream that only generates 5, $10 thousand per month. This is still something that you can add onto your income because I remember when I first started my entrepreneurship journey, ICS, LABA, ICIC go to the Swap Meets. I used to go to liquidation stores and buy things at a deeply discounted prices and then resell them on eBay. I would even go to some other thrift stores, right. And I would buy items that were used that still had value in them and I would resell them on eBay just to make, you know, a few $100 a month. It was extra cash, right. So it all adds up. And then number nine, no new electronics in those upgrade isn't too much different than the version that you already have, right? I think the new version of the iPhone comes out every year or so. And it's not that different than the previous one. So don't just buy something because it's the newest version and everybody else has it, right? You're looking at things differently now you're not looking at things as a consumer. You're looking at things from a investor standpoint where you're building your credit strategically on purpose to get a certain outcome. You're not just, you're not spinning your credit on things nonchalantly, right? You have an actual strategy, a process, a method for your madness, so to speak, right? And then finally here, number 10, put away 10% of each paycheck into a savings. This is going to be your emergency fund. And you can even get, let's say, a separate bank account at a different bank. So you don't actually see the balance now would do it where you automatically have it taken out each month. So whenever you get paid, automatically have an automatic withdraw 10 percent goes into that account. And you're able to keep that out of mind because that will go along way and it keeps you from having to look at your account and see, hey, I have $10 thousand and here I have a $1000 in here. Let me go out there and spend it, right? So they're very important here for you to understand these credit loss. I would go to this video once again. So you can really understand this because remember now you have a different perspective on credit. You understand that credit is to be used strategically to get a certain outcome and that it's going to ultimately get you to where you want to go, right? So that's going to be here for this one, and we'll see you on the next one. 20. Intro To Business Credit: In this video, we're going to go over business credit. Business credit is essentially just like it sounds trite. It's where you're getting credit for a particular business. And oftentimes, all you really need to get business credit is getting an EIN from the IRS and being able to get everything set up. And that essentially is the minimum that is required because once you get an EIN from the actual IRS, then you are considered a sole proprietor, right? So you're essentially a business and your business is essentially run through yourself. So in order for you to get more protection, that's where you want to start actual corporations, LLC's S Corp stripe. Obviously it's all going to depend on your current situation. But this video is really just giving you an overview and understanding of why business credit is so powerful. How you can utilize this and leverage this to either grow an existing business, start a new business, or use these funds to invest either in the stock market or crypto or whatever that may be, right? So let's go ahead and jump into business credit. So business credit is just like it sounds right? Just like I mentioned, it's credit for businesses. And with business credit, you're going to be able to get higher credit limits because It's not just going to be for yourself as an individual, right? Because as individual, there's only so much you can do with 25 K, 50 K, right? You're not going to go out there and buy things that are going to, for the most part, increasing value for yourself. And plus, as we talked about in the previous lessons, if you have a twenty-five thousand dollar credit card, let me write, you're not going to be able to spend all of those funds because you want to stay within a certain threshold of that ten to 15, 20 percent, and anything more than that, you're going to be looked at as high risk and your score is going to take a hay, right? So what business credit cards? These are cards that you're getting by leveraging your personal credit, but they're not reporting on your personal credit. So it's absolutely amazing what you can do with these cards because you can essentially utilize the entire limit. Let's say you have 25 K on one card. You can utilize that entire credit card limits and it's not going to show on your personal credit. And that's not what business credit is marked on. And that's not what business credit is graded on, right? They don't really care about the fact that you have a $25 thousand credit card as a business. Because as a business, you're going to most likely use those funds to grow the business. And so percentage as far as how much you owe versus how much you have out there extended isn't really a big deal on the business side. Now in terms of getting access to business credit without having to show any type of documentation, tax returns, right? These are going to be all two credit cards, right. And then it's typically a limit where I believe it's under 25 or 35 K and it's different for different banks, right? 25, 35 K where you can get credit extended to you without having to show documentation and anything above that. That's where you're going to need to show documentation. So that's essentially the hack there where you can go to different banks and get these different cards. And it'll add up to well into the six figures to think about. You're able to get one Carta give you 15 k and other card give you 25 k. Now the card will get you 20 K, right? And so it starts to add up versus going to one bank and getting six figures where you're going to need to show documentation. You're going to need to show tax returns, profit and loss statement, all of that, right? But this is a great hack here for you to be able to get upwards of six figures for an existing business or even just starting a new business. And so with business credit, you're going to need at least a 70. This is the minimum here. It would be preferred to be in the 700s, typically 740, right? Because that way you're able to get 0% cards for between six to 12 months and even some that are 24 months. Okay, So I remember if you want to get these cards, as far as business credit, you're still going to be able to get some of them, but it's going to be a high rates. And if you have that 740 plus, you can get them for that 0% for up to 24 months. And so like I mentioned, all you're going to need is an EIN to get the business credit as a sole proprietor. Or you can register an LOC and get an EIN, which is what I recommend because with an LOC, you're going to have protection. You're going to have liability, right? You go, you're going to have liability protection and a bunch of other things that come with having a corporation. Now, very important here. I'm not a financial advisor, I'm not an accountant. I can't give you any legal advice or anything like that. I'm just saying what I recommend as far as if I were to go out there and want to start a business, first thing I would do is file for an LLC. Okay. So I'll depending on your situation, how you want to go about it. For me, if I was starting out to our registered in LOC, get an EIN and go through that route. I mean, you you can do it very easily on the State's website or you can go to like inFile.com, which I recommend and I use. You can go to ink file.com, put in your state, put in the type of corporation you want, but in your address, your information there. And you should be good to go within a matter of minutes. So very, very easy and simple to do it through a third party such as ink file.com. And then LLCs give you the personal liability protection, right? Just like I mentioned, if you have liability protection and you go out there and you get credit or you get assets that you're out there, you're borrowing and for whatever reason you default on those assets, right? And you default on those payments, nobody can come after your personal assets, right? But if you are a sole proprietor and you just registered EIN and you get business credit, for whatever reason if you default, they can come after your personal assets, right? But if you have a corporation, right, like an LLC, you can actually have the protection of your personal assets. And more often than not, when you're getting this business credit starting out and you're just leveraging your personal credit. Using your personal credit right to guarantee these loans is personally guaranteed. And typically after 24 months, you can go ahead and remove that personal guarantee and have it transferred over to the Business 100%, right? So a lot of business credit cards have a 0% interests offers and come in with very large credit lines. And one of the things that I mentioned in another video is that you can go out there and get 0% cards from top tier banks. And then roll those over to mid tier banks, and then roll those even further down into the credit unions that will offer you also 0%. So you can go at 0% interest rates for several years. So very, very powerful. And remember, at the end of the day, these credit card and lines, these limits are not reported on your personal credit. So you don't have to worry about it affecting your personal credit score. So this is a quick overview here of business credit. If you want to get like business lines of credit for your business and you want to get like a line of credit. Those are going to require documentation. So IRS tax records, profit and loss statements, bank records, right? You're going to really research you in, make sure that you are able to prove your particular income versus if you're doing credit cards here. And you're staying within the threshold, that doesn't require you to have to put in any documentation, then you're going to be just fine. You're not going to need to put in any type of docs, any type of tax returns, right? And so the difference here is that with these credit cards that you're not having to put any documentation down. These are called no doc credit. And the difference here with business credit cards is that you're using stated income, right? They're not going off of your tax returns. They're not going after, they're not going off of your profit and loss. And they're not going off based off your previous cashflow or your sales. It's all stated income. So based off what you believe you're going to do in this given near right. And that's the power of stated income because you're not necessarily line, but you're also not 100% truthful because you don't know. And that's kind of a gray line there. And that's the great area loophole air where you could put down a very ambitious number, right? And no one's going to hold you to that because again, this is stated income. You're stating which you believe you're going to do versus having credit lines where you're having to actually show your documentation. And that's going to put you to a different position because then they're holding you accountable as far as how much you actually made and they're checking out your doc so stated income, right, is what you really want to be focusing on here because you're not having to show any previous results as far as your business. And that's where you're going to get these credit cards here for upwards of six figures. So that's going to be here for business credit. And we'll see you on the next one. 21. Set Up Your Business Credit Correctly: In this video, we're going to go over setting up your business for credit, okay, so business credit here and being able to set up your business in the right way so that actual lenders take you serious. Okay. So let's go ahead and jump in here. You can get access to business credit using your home address. It's not necessarily that you need to go out there and, you know, go and get actual business address. However, there's going to be some things you want to keep in mind here that you're staying consistent with. So for example, make sure that you have the same address with your bank and then your business bank account, and that your business and your bank address match up. So if you're going to have a home address, make sure you have the same whole Madras on your business bank account, okay? And it's recommended to get personal accounts with these lending institutions, right? Especially like Chase Bank of America, Key Bank, right, Wells Fargo, these big lending institutions rank because it really sets up a relationship from the very beginning, right? And it's not 100% necessary. But it definitely shows that you're looking to establish a relationship and that can hold some weight. And so here's a step-by-step for max business credit, okay? So what you wanna do is you want to go to in Cloud.com. This is what I recommend. You can register an entity, LLC, S-corp, Corp, and then get an EIN from the IRS or you can have Inc. Filed do that for you. Open up a business bank account at a local branch, or you can do it online at one of these different online banks. You can literally just go to Google, type in business bank account. And then you want to establish a business address and a phone number. And then you want to apply for business duns number. This is the number 1 business credit agency. You know, pretty much if a lending institution is looking to offer and extend a particular line of credit, they're going to go off the business credits. Okay. You're going to check your duns information. You're going to check your corporate experience and we'll get into the business credit agencies in the next video. But this is pretty much just showing you what you wanted to, to set up a foundation for business credit, okay? And then you want to get a business credit card. So the big thing here is when you're establishing business credit, you're doing this so that your business can hold all the weight versus you having to use your personal credit and have a personal guarantee, right? Because when a business holds all the weight, you are essentially using the businesses credit right background to actually be able to guarantee the loan. So for whatever reason, if the business defaults on the loans, you're not personally liable, right? The businesses. And so there's three different business credit agencies. There's DMB, duns and Bradstreet, corporate experience and then corporate Equifax. And so ideally you want to have between an 8100 paid that score and between a 76 to 100 and telescope from experience, experiences where all your credit cards you're going to be showing. That's where actually, once you get a credit card through leveraging your personal credit, right for your business, That's where your actual card you're going to be reporting. And they're not going to be reporting. As far as the factor of, hey, you have used all of your credit, right? Because remember, the amount that you're using on the business side isn't as important, really important at all when it comes to your business because it's measured differently. You're obviously as a business going to be using your credit that is extended to you to grow your business, right? So big difference there. And then according to Bank of America, a strong business credit profile follows the 53 to rule, where you have five active accounts, three credit accounts, and to paid accounts in full. So you really want to take that into consideration to start building up your business credit. And to make sure that you're able to down the line, be able to get extended credit lines where you're not having to leverage your personal credit because you're going to be personally liable at that point, right? So that's going to be here for setting up your business for business credits, right? If you want to get that corporate credit, you want to get those lines of credit. This is what you really want to do here. You want to set it up to look like an actual real business, right? But this isn't necessarily going to be necessary 100% If you're just looking to get business credit for leveraging your own personal credit report and your credit score. So okay, So that's gonna be here for this one, and we'll see you on the next one. 22. Business Credit Bureaus: In this video, we're going to go over the business credit agencies. Now we went over the top three credit agencies. For the personal side, we went over what are the metrics? What are some of the factors that play into the personal credit, right? And now we're going to go into the main three business credit agency. So let's go ahead and jump in here. So while personal credit score ranges from 300 to 850, business credit scores range from 0 to 100, okay? There's a difference there as far as how the scores are graded, right? What are the metrics? And then the range as far as 0 to 100 versus personal credit being 300 to 850. And so the most important factor by far is payment history, right? And this is similar to the personal credit side, right? Because the lending institutions want to make sure and know that you are responsible, that you are paying back the actual loans, the credit that is extended to you. Because if you're not, then why are they going to extend you more or why somebody else going to extend you credit? If you're not able to pay back on your agreed amount, which as stated in your agreement, right? So these lending institutions want to make sure that, want to know that you're actually paying the loan back, that you're borrowing, right? Because they make money off the interest though. By far the most important factor here, just like with personal credit, is the payment history. And so the number one credit agency is the Dun and Bradstreet. This is the largest and most important agency. You can go ahead and you can get a free duns number and you don't have to pay for this to start getting business credit. And they have what they call a paid IQ score. And you want to have it between, and you want to have a score between 80 and a 100, okay, with the minimum, at least 80. Now as far as for this, they're going to want to sell you some kind of package. I would recommend that you do not purchase that it's not necessary. You can get a free duns number just by going off the website, right? It's not a big deal. And then number two is going to be experienced small business. This is the second most important agency. You can register, however, for the most part, if you already have like let's say a business credit card, they're going to have your business credit profile already on file with them, okay. And they're going to be most likely reporting because they gathered data out there themselves. And typically, you will find that if you put in your company information to their database, you'll be in there and there'll be reporting trade lines that you already have. Okay? And so for this one here, you want to have at least a score of 75 before applying to business credits. And then number three, this is your Equifax small business. There used to be a place where you could add your business. However, it's been removed. And they are somewhat difficult to deal with and have a little information. And you typically will need trade lines from larger banks to actually report to. The main two ones are going to be Dun and Bradstreet and experienced more business Equifax isn't that important, right there, obviously three important, but for the most part, what I would say is that if somebody is looking at your report and you're looking to get like business credit, they're most likely going to be just pulling Dun and Bradstreet and you're experienced small business. Okay, so That's going to be here for this one. Just wanted to give you a quick overview of the business credit agencies. If you want to look into these further, you can go to a great resource and NAB.com, they have great tools, great resources to be able to learn more about the credit reporting agencies. Credit reporting agencies for business, right? But this is just more giving you a foundational understanding of these agencies, how they work and the level of importance up, um, okay, so that's going to be here for this one. And we'll see on the next one.