Credit Masterclass 2.20.22
Big number divided by 2 tech, 2 index. Apple and Microsoft and the 2 index is VOO and VTI.
feed 5 generations. add my kids, future kids
Netflix movie, the 1% movie. Jamie Johnson interviewed by Oprah.
James Houghes, Johnson family is one of his clients. 'Family Wealth' book.
Uses law only advice high net worth people, over 3 million.
Take those big numbers and make it practical. 10x Book.
KIKI
24, from Philly
Moved to Houston, by herself
First person with 700 credit score
First person to use that credit to get an investment property
520 credit score with a car. 16% interest rate on a 2016.
Had car for 6 months and looked at the app, how much you paid towards the car and how much interest.
Car payment was $400, only paid $150 towards the car (horrible deal).
Called Derrick, (DSboone?!)
Paulina
oldest of 4, taking care of them. Credit has changed her life. In so many ways, stepping tools to elevate her life.
Mentorship in Nov 2020and met Kiki.
Herman class by herself. worked hard for that $500, made a friend of a lifetime.
@fruitful.vida Currently doing real estate, if you are a wholesaler DM me
-30% utilization 165 points
-15% credit age 82.5 points
-10% inquiries 55 points%
-10% credit mix 55 points
To get the total 165 points, you have to stay under 10 percent utilization.
no more than 5 inquiries per beauru
* you need primary accounts to build your credit profile
Pauline: Paid 2500 for 80k worth of tradelines. Applied for every card and got denied because I had no primary history.
Primary Lines to add
-Tomo credit
-Grow Credit
-One Finance
-Rent Reporters/Rental Karma
-Self Lender
-Bright
-Kik off
-Fix your personal credit first. When do tradelines work? buy a car when you have 720. if you need a boost, get a tradeline. greater usage, get a tradeline.
Analyzing your credit report
-late payment can drop your score 30 to 60 points
-charge off and collection accounts drop your score 60 point plus
-bankruptcies are public records
-any inquiries that can be removed, remove them (the ones not on open account)
Q: Got an inquiry and got a loan, but then got inquiry
Q: What website to use?
Experian and IdentityIQ
Q: If applying for mortgage, remove the inquiry or wait for process and they will run it again.
My Question:
If late payments on small loans from 7 years ago. Should we remove them? Or keep them?
Doesn't matter, old late payment on small amounts. The new history matters more.
Paulina: keep them due to it helps the credit age.
build history, encourage to use self lender, secured loan from bank, in 6 months
Kiki Monroe- she sells LLCs. She got aged LLCs.
Mentor got link, she's the middle man.
If you buy a Shell Corp, you are buying a aged LLC.
Sample credit: 52 delinquent or derogatory (30 points off every late payment)
104% credit limit.
Q: Approved for navy federal, approved for one, denied for another. Should I take off the inquiry?
Don't remove it. It's same bank for both cards.
Types of Disputes
-direct dispute
-complete and accuracy
-any item that is inaccurate or misleading
Opt out of secondary credit bureaus:
Lexus Nexus (court, if you a jail record)
Sage Stream
Corelogic
-pulling information, background checks,
PERSONAL INFORMATION:
Clean up
-old addresses, take them off, makes it easier to dispute old stuff
-take off old jobs
-inquiries
EXPERIAN: Deletes the inquiry with no problem. 1-855-414-6048. Experian will ask for your social then 1, 2, then 3. ask to speak to fraud.
Equifax: write letters, easier than calling.
Transunion: 1-800-9416-8800. Press 0 then ask to transfer to fraud.
Fraud Dept: Jan 5th 2021, according to credit report act, I gave no consent I have no idea what that is. submit FTC report then call. transunion, call 4 times success once. after submitting FTC report then call, a week after sending the letter then it comes off much easier.
Disputing collections:
1. basic challenging accuracy 15usc 1681 (i) (A)
-you have the right to dispute ANYTHING on your credit report
*you can fix your name, your phone, address, etc
*collection attached to certain addresses can fall off because you are no longer attached to that address
-they ask for information to confirm stuff, and go update your profile. you do not need to respond to that.
-they have 30 days to reply. backdate the letter. I put 2 weeks back (of the day you send them)
What if they do reply? If they say its verified. The only person that can verify any information is you.
-KEY THING: do not admit to it.
-its illegal to sell a debt. what is the paper that said I agreed to this debt?
2. Method of verification 1681 (A) (6)
-what methods did you use to determine the accuracy of that information
-if the agency claims they spoke with someone they must reveal the person within 15 days.
(it has to be in written form)
copy and paste it in Google, write the letter. quote the law and state your claim.
3. Failure to comply 15usc 1681 (A)(6)
-30 day investigation + CRA must provide written results within 5 days after the reinvestigation by mail if authorized by the consumer.
-Labcorp debt is illegal, medical collections that is my private information.
COLLECTION CAME BACK? DO THIS
-Credit Karma updates every single Friday. see if something came off.
-they cant do that. this is how you get it off:
If CRS deletes an account and it reappears on your account due to it being 'verified'
-they must send notice within 5 business days after the reinsertion
(take screen shot of the credit karma showing the account)
Make the letter personable. " I was trying to buy a house, this collection now I can't buy a house. Please remove this, a violation of my rights"
DSBOONE
-coming off another speaking engagement
-change your whole life
-28 born and raised in Philly.
-2016 taking RE serious, fix them and keep them from rental property
-didn't have money or credit. selling a lot of houses for a lot of people. I build other people's wealth. buying good deals off of me.
Get 3 made, LLC. if you get approved for 20k then you can go back and get approved for 60k. 20k each.
plus 680 credit scores
Then lines of credit and credit scores. Anything under 50k, they don't ask for any income paperwork. they are used to businesses needing a lot more.
They will counter. we don't have 40k, but we have 20k. walking out there with something. when you have multiple LLCs with lines of credit.
bank will give you savings account, 20k line of credit. can go and pull out any amount and only make payments on the money you pull out. then you can put it back and savings is still there.
6 months has to be LLC, then apply for line of credit can be approved, its money that is there that is so easily assessable.
If less than 6 months, just apply for credit cards. then pull it off.
LLC, 680 credit score, go apply for business credit.
-if you have a bank, relationship with that bank. can do balance transfer. do that with a credit card. move from credit card to checking account. 10k from cc to checking account. It's called a balance transfer. my bank doesn't charge me for that.
laptop, and pull out 30 grand.
easiest time to become a millionare. You own four 250k houses, you are a millionare.
just go ahead and run it.
- apply for line of credit. with aged LLC, and for personal too. personal can mess up your credit if you play with it wrong.
APPLY:
-So far, Alaka keep those accounts and codes to remove the things.
-my next goal: 680 CS with my LLC to go apply for business credit.
-can buy LLC from one of these girls. $2500 score.
Back to class:
Late Payments
-good will letter, how many late payments are on the account. less than 3 late payments, send a good will letter. Send to the credit card company.
'I'm sorry that I was late. this is holding my life back . This late payment its learning my credit score down. Please remove this.'
2. email CEO
-send same goodwill letter.
I'm trying to have excellent credit, I've made on time payments, please forgive those late ones.
3. validation of debt letter. - ask them to validate that you were late. backdate them for 2 weeks, then send another letter. excuse i sent this letter on 2/1. you are putting the pressure on them. they have to remove the account.
Q: is this by certified mail? when disputing accounts, send certified mail. keep the receipt. you have the documentation. scan it, if they don't respond you have documentation for it. type in red and highlight in yellow. computers are reading it, they cant read red and highlight yellow so it has to be read by a person.
Customizing it and you are sending it certified mail and copying
send me
Q; even if its a long time ago? you might lose the account. they age after 24 months they dont affect you as much. you dont have to bother with the account. when i'm sending letter, it has to be personal, i did this, you dont
609 Letters
609 letter is a credit repair method (look it up) that request credit bureaus to remove erroneous negative entries from your credit report. its named after section 609 of the FCRA a federal law that protects consumers from unfair credit and collection practices.
Filing a FTC report, and how to do it online.
credit sweeps, this is what they are doing. You don't want to throw the silver bullet first.
Do the letters first. keep paper trail through everything. all you are doing is, you dont have anything. Even if it takes 3 rounds.
Q: when do we follow up when we backdate the first letter after 2 weeks. if they dont respond at the 30 day mark (so 2 weeks later) then you respond)
Debt to income calculator in Wells Fargo
85k and below its okay they don't ask for income docs
its okay to up your income
-you gotta be consistent. if you put 45k income for one and 95k for another one, huge difference.
FTC report
-available to everybody
Federal trade commission
identitytheft.gov
According to consumer law, if you do not consent for people to say you can put this on my credit report, its identity theft.
start, click what kind of account
click on credit card
Open fraudulent credit card account,
Do not do 5 at a time.
What company of bank issued the credit card?
When did you notice the problem?
When was account opened?
Estimate the charges, fill it out.
Put account number
If you contacted the company (you can leave this blank)
Your information:
fill it all out
Know who stole your identity? no
the rest, keep them at all no.
personal statement:
Making it as personable as possible.
can say: on (date) I sent method of verification letters I received no response.
I then sent follow up letter and still did not receive a response.
i am trying to get a car and this is really hurting my credit score. attached is the documentation that i sent to the collection agency.
attach doc, click continue. check box at bottom and click submit.
you will get email saying its under investigation.
If you do it too often. your account is going to get flagged.
Manufactured spending
-SAKS PLAY
Great to get points plus gift card.
can ship it or send it back to the store. way too big or too small as reason for return.
Paypal, has to have a business account. ( in order to do a split payment)
-pay $20, rest on CCs. return on debit card
-final sale, keep gift card, got money on debit card.
2) Quickbooks and Payal
Quickbooks, send invoice to yourself and pay the invoice.
send invoice to a different email address.
cash back rewards, 5k if you want more do this twice a month. bank says
invoice for 10k. or 5k. send invoice to yourself. , pay it off.
cash back, i did it 3 times i went to bahamas. flight was 108 from 700 plus.
quickbook has a debit card.
if i send invoice to myself (send invoice to AA@gmail). AA pays with their credit card.
use that card and pay it off. its the same person.
credit
HIDE UTILIZATION
-5k and other card is 7k.
5k change to 14th due date
7k to 30th due date.
take money from one card
if interest free for balance transfer.
navy federal, transfer from one account. when card is due on the 1st have to swap it out.
money goes into the account. and swap it inot the other one.
3) We'll get PDFs, for Rakatan, when you spend money, ideally make money.
Rakatan, Nike is 8% cashback. If you have 2% cashback, that's another none.
Quaterly, they send the money in a check to you when its cashback.
You can order stuff and return it... Dicks golf clubs, ordered returned them and that was credit to cash.
How Experian is supposed to report stuff and how its supposed to go.
Bankruptcies?
you file with the courts, should not be in your credit bureau.
Q/A have to do CFPD, wait for them 30 days, then FTC report.
same thing, go on the website and do it.
Q: for inquiries, Experian just call. others FTC report then call.
Q: for collections, do letters. factual disputes work too.
If account number is off by one number (in 2 different bureaus), highlight and send it in, its not correct. they'll take it off.
Rakaten, 5% cashback for T mobile.
Business credit:
great score, LLC and then apply for Apple, discover, cards. business approves 3 times more than personal.
30 million,
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