From Bad Credit to Perfect Credit (VIDEO)
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| credit score ratings |
Listen to any Black comedian and they'll joke that Black people have bad credit an white people have good credit, to the point that they have to trick family members to cosign to get their lights turned on.
While the jokes are funny, it highlights a real world thing, as comedy usually does. Poor people have a poor understanding of credit. Boom, ok, lesson is over. I'M JOKING. But, it's no joke, poor people have a poor understanding of credit.
In fact, what's really laughable, is how simple credit actually is, and to top it all off, how much it affects you.
Financial advisors will tell you, how perfect you have to be, to get a perfect credit score, but i'm here to tell you, with almost no income, you can have a perfect score. It's just a game, so let's play.
I'm about to tell you something none of the financial advisors will tell you. New creditors, don't care about old creditors. And, they forgive and forget. And, they're quick to do it.
What do creditors care about.
- you pay credit
- you pay on time
- you've paid debt for a long time
That's it.
Can you build credit with a bankruptcy or thousands in debt, bad credit? Yes. How? Make it look like you're a different person. Play the game and new creditors will literally assume, the old you, was just going through hard times.
In fact, they share info so much, they'll start offering you credit, if you switch up your credit habits.
How is the question, right?
Fake it.
What do i mean by fake it? Build credit, small scale, and they'll read into it, like you've done something big. The credit unions will report how wonderful you are with $20.
Let's start from the beginning.
No matter where you are financially right now, start small and build.
Get a secured credit card. You fork over $50 - $200 and they give you a credit card... not debit card, with a limit of how much you gave them. Here's what you do, put your cell phone bill on that credit card, on automatic pay. Something small, that you KNOW you will pay, every month. Then every month, on or before the due date, pay off that credit card.
I had a t-mobile phone, and my bill was $50 monthly. 6 months later, i got my deposit back on the secured card. 6 months after that, i got my credit limit raised. a year after that, it was raised again, to $1,000.
That's not that big of a deal, $1,000, but it made my credit score jump up. Because 2 things happened. I now had credit history, I had proof of payments, and my debt to credit ratio fell off a cliff. I went from owing $50 each month, compared to $100 credit limit, to $200, then $1,000. So at the end the $50 to $1,000 made me look like dadddy warbucks. 10 cool points if you comment who that is.
Here's part 2 of the game, because you just finished all 3 things I said creditors want. After you get your deposit back, now start opening up new credit cards. If someone offers you a card, with no annual fee, TAKE IT. More credit, means that debt to credit ratio will help it fall off a cliff even more.
Then, you can start getting sophisticated.
- open up a bank account and take out a loan, for $1,000. They know you can pay it off with your credit card. This gives you even more credit history.
- work your way up to an american express card, and repeat the putting your cell phone on it, and paying it off. Those you have to pay off each month.
So if we're keeping track at home, a year later, we have about 5 credit cards, a bank loan, we're pay on monthly, an american express card we have our cell phone on, we pay off monthly. In 15 years you'll have a perfect credit score. I'm JOKING, it'll take about a year to 2 years. tops.
Right about now, you might be wondering, what can you do with a perfect credit score
- refinance your house for white people mortgage rates
- refinance your car
- apply for government grants
- open up a business, with a business loan, with your perfect credit score
- get store credit cards
- get big box do it yourself tools and supplies credit cards at a contractor rate
A perfect score pops the cap off a lot of things in life, and you can do this, even if you have bad credit on your record. Now the experts will tell you to pay those off, but if you're at the 4 yr mark, and this what i'm telling you is going to take 2 years, that's 6 years, go ahead and ignore it. BUT if it's relatively brand new, when you get all those credit cards, call up the companies and ask to reduce it, like 10 cents on the dollar, So a $1,000 debt, you ask if they'll take $100. They will. Because by the time you're calling, it's a debt collecting company. They're happy to get anything. They paid probably 50 cents to take your debt. It's all profit for them.
And, that's no joke.
Any questions?
