How to raise your credit score

is important. That's what we're talking around today is a very very important topic because you need a credit score really for anything that involves credits, not just credits to do with your daily day to day life, you need credit scoring. So it's that's what we're gonna do. Spend at least an hour or so to talk around today, right, and then we'll just see how we can perhaps take questions.

It's going to be a recorded If you're on YouTube, if you go to do but I just share a YouTube link, we're gonna be on YouTube to that way you can do a lot of you can get a lot of the of the visuals. I also try to share the visuals as well here on Twitter, so that way I want you to follow so you can actually sort of get the feel of what I'm just going to talk about today. Very very simple topic and I think it's going to really really impact most of you

that are listening. Alright, let's just let's start with it, right, So what is Let's kick off with what is a credit score? And what is a credit report? Those are two things I want to physically talk around today. What's a credit score? What a credit report? Right? So, a credit score shows how responsible you have with credit. Simple, So when you have a credit score, that shows how responsible you are with credit. It's just that simple, right, How responsible you are with credit that shows up as

your credit score. It what does responsible mean? If you take a loan and you pay back on time, then according to the lenders, you are a responsible borrower. Responsible mean that if they give you a loan tomorrow you are able to pay back. That's very, very huge for you. Right. So essentially, your credit scoring, your credit score, shows how responsible you are with your credit that the institution has

given to you. Right. So essentially, when we say want to raise your score, we want to make you a bit more responsible, right with the lenders wide because when you are responsible to the lenders, you can get a lower credit scoring. So I'm going to share a group of names both in Nigeria and the US, we have Who's calls your credit's going to be a credits agency, right, and the US will have about four of them. In

Nigeria we have about three of them. I'm going to share those names, so if you're on YouTube you can see it. I'm going to share on Twitter as well. We've got Equifax, We've got Experience, We've got TransUnion. Those are the American ones. We've got Equifax, you've got Experience, You've got TransUnion. In Nigeria, we do have Credit Direct that all the Nigerian firms, they track your credit or they report that response about how responsible we have been

with your credit report that. So we've got Credit Direct from Nigeria. So we've got first Central Credit Bureau, We've got the CRC Credit Bureau. We've also got the first the Credit Registry as well, so trade in Nigeria to think about four in the US. Right, these guys Essentially, when you take a loan, not when you spend. When you take a loan and you pay back, that means you're responsible. We're going to get more into the details of that, and more responsible you are, then the cheaper

that you are able to get credits going forward. That's the whole idea. It's a very y simple concept. Your credit score shows how responsive you've been with credit. It's reported by this agency is the Equifax Experience TransUnion in America, or the Credit Registry, the CRC Credit Bureau or the First Central Credit Bureau. It's reported by them to the

banks or to the lender that's giving your money. Your credit report is now a detailed, detailed history of how you have been or how you have run your credit for a number of years. So if you've got credit for five years, you're going to have a five year credit report that's basically going to show how you have run your credit for those five years. Essentially, what it is very very simple right now, what is your credit score? What is good? What is bad? Essentially again, it's a

very very simple concept. If you have a high credit score, then your credit is good. I e. If your credit score is high in the eight hundred and seven hundreds, then of course you've got a high credit score. That's essentially what it is. Right again. I'm sharing the slides on Twitter and also on YouTube if you can just go straight to my my time I used to the scores and the visuals. It helps you to follow as well.

So on the fical range, credit scoring starts from say three hundred, which is very very poor, starts from about three hundred, it goes all the way to eight hundred and fifty, which is very very exceptional. So if you are three hundred, that's poor. If you're five eighty, or if you say you're below seven hundred, that's still fair. You know you are going to get the credit, but that's still fair, it's not even good. If you are

below seven forty, that's okay. You are average, that's about good. Right, you start to go about seven forty to about seven eighty, that's very good, you're going to get the credit, but at the best rate. And of course once the credit course starts to go above eight hundred, of course that's very very good, very very exceptional. So it's a very very simple way to understand this. The higher you're credit scoring, the better are for you. So what do we mean

by better? Better essentially means what you can borrow at the rate the what we're called the annual percentage rate that you are able to borrow at. So if we now look, I go back to those numbers. Right, if you are borrowing at eight hundred credit score right, Essentially, what that means is that you're going to get the best rates, the best rates. I mean, you're going to get the low west rate possible. So if your score is safe from say seven to fifty to eight hundred

and fifty, you're going to get the loan. Not just get the loan at the lowest score possible. But when your credit score is give or take about say seven hundred to about six hundred, it's likely you might get the loan. But then tend to start to raise your annual percentage rate up and up and up. So from say eight to fifty to about say seven hundred, yeah, you might get the loan. You will get the loan, But what rate? That's the point. What rate do you

get that loan? Which is why this space is very very important because if you understand how cold the scoring works, and how could this scoring affect you as an individual, even as a demographic, then you don't understand how to play the quote unquote American game. In America, they don't operate by you just paying your bills. They operate by how you are running your credit. It's a credit economy when most folks leave the Africa and go to America.

In Africa or very very conservative. If you want to buy a house, we buy the house by saving and then we buy the house. In America is different. They expect you to take a loan. Same thing with your car, they expect you to take a loan to buy the car because if you don't have that credit scoring, it's sort of they can't score you. They can't place you. So you then get the default. Either you get to know or you get a high score because they can't

prize you in as a risk factor. This is very very important I see going forward, there's a direct link with this and ownership of homes. If you don't get a credit score, it's hard to buy a home. If you don't get a home, it's hard to ask a demographic get into the American dream. That's all we do in this space right in Black History months are weekend because we want to explain this is very very important

for you, especially if you are in that demographic. Right, So our next slide is going to talk around the actual impact vascene is going to affect your score. But let's actually do numbers. What does it actually mean? Again, if you're on Twitter, please try to look at the slide I'm sharing right now. It is going to give you the actual numbers of what it would mean if you have a low credit score or if you have

a high credit score. And of course the guys on YouTube just like getting those visuals and I say, yeah, thanks guys for that. So if you look at this war was sharing now on the slide, this is the average mortgage scores based on your ficle. Your fycle is a type of credit scoring. You look at the fical score, that's going to be the first column, say six hundred and twenty. So remember we've talked about if you have a score of six hundred and twenty, that score is

not that good. Right now, if you take a thirty year fixed strate mortgage because you have a score of six hundred and twenty, then that score is going to give you a range. This is just an example. Don't really this. Rates might change, but this is a picture of what's going to happen. Right use as a picture. As I'd say, December sixteen, twenty four, you'd have gotten an interest rate thirty year at seven point seven one percent.

That translates to a monthly payment of two eight hundred and six dollars eleven cents, So your total interest costs over thirty years, it's going to be five hundred and forty nine thousand dollars one hundred and ninety nine. Right, so, if you borrow at seven point seven one percent on a thirty year fixed rate mortgage, you're gonna pay back the lender about five hundred and forty nine thousand dollars

in interest. Because your credit score was six twenty, that meant to your interest you borrow is as seven point seven to one. But the same person right less than the same person had a credit score of eight hundred and forty, which is going to be exceptional. And then you try to buy that same house, the same house, same neighborhood, same credit terms, your ap R, your annual percentage rate, which is the interest that you're gonna pay right is going to fall from seven point seven and

one to about six point sixty nine. That translates to a monthly pay off about two thousand, five hundred and sixty four dollars. Your total interest course you're gonna pay back to your lender is going to be four hundred and sixty two thousand, two hundred and twelve dollars, So you're going to go from five hundred and forty nine thousand dollars to four one hundred and sixty two thousand dollars,

same house, same neighborhood. The difference is just going to be the interest rate that you are paying on the home, and what's driving that interest rate. A big factor driving that interest rate is your credit scoring. It's going to be the same if you want to buy a car, if you want to buy your phone. The higher your credit score, the lower your annual percentage rate your APR or your interest rates. Right, then the lower your monthly

payment and the lower you pay to the vendor. So if you look at this right, it just tells you that how many folks do you think can afford two thousand and eight difference in buying a home. When you go to buy a home from your lender, they're going to ask you what's your income. They put your income in then they ask you they have to take a calculation.

They cannot take money from your income that would make you not to be able to survive, so they would remove your living expenses and then look at the income less those living expenses and it's that expense that they would then take into to pay your mortgage. It's usually

about thirty percent. So if you earn about three thousand dollars, for instance, a month, you can't afford the mortgage if you have a low credit score, because when they take away your living expenses, you can't afford two eight hundred and six dollars a month. So, as you can see, it's not just the interest rate that stops home ownership, especially home ownership for minorities. It's also the lack of knowledge about how to build your score and what a

score even means. If you get into debt, if you have a lot of debts, then your APR, your interest rate is going to go high. Why is it going high because your credit scoring is low? So of course us that means the answer for us is that if we can raise our credits scoring up, we can reduce the interest rate that we're paying to the bank to borrow money. That reduce some monthly payment that then enables many people that have the same income to then qualify

to buy a home. That it seems to buy your home, you have to have your down payment, you have your your debt to income. Yes, we're just focusing on the credit scoring for now. So this is what we want to focus on. That credit scoring. So you want to get that done because this allows you to qualify for more loan to buy that home. Very very important. This. If we just did the whole space today on just

this slide, we're fantastic, right, We've learned. Okay, So now that we know that a high a high credit scoring allows us to get a cheaper loan because our credit scording is high, our APR will go down, which means our monthly pay is going to look better. How then can we then increase our fical score? So I'm gonna do do it in two parts. How can we increase

means you already have a fical score? Correct? And then of course if you don't have a FCO score or you don't have a credit score, how can you get into this, into this whole system to be able to get yourself a credit score. So we'll try to do two of them. If you listen carefully, is they interlap? They interlap because it's gonna be the same thing you're gonna use to get one, and it's gonna be the same thing you're gonna use to increase your score or

the interlap. But let's just take a look at what we need to do and how this is scored, how your credit scording is done. So again, guys, look at the visuals. They help you to visually follow as how adults lend. Adult lend better repetition and visuals. So I want you to look at the visuals and follow. It will make perfect sense to you. And of course, if you have a question, just quest to speak, send me your DM. I'll get your questions and I'm kind of

your dms now as I'm looking at the slides. But once we're done, in about say fifteen minutes, I'll come back to your questions. Right, fantastic. So let's look at how you get how you raise your fical score or how you raise your credit scoring. If you look at this, this is from experience, right, So that's what I'm sharing. The most important thing to do when you have a credit is to first of all, go get credit. So first of all, go and get credit. We're going to

talk about what type of credit. Again, like I said, most Africans that come from Africa to the West, we are conservative, ie in how we spend money. Have we manage your money. We don't look at credit the same way the folks here look at credit. For us, credit is going to be Am I getting to bondage? Am I get into servitude? Or I want to save and more? That's not how to look at it. Credit is an enabler,

not a not a what's the what I'm trying to get? Now, you have to get credits in the West, that's how they operate right when you're in Rome do as Romans. So what type of credits is very very important. I would say the easiest want to get, or the one I would advise to get, is to get a credit card that has zero annual fees. So just holding the card has no annual fees, very very important. And if that card can give you a reward, maybe they give

you cash back, fantastic. So let's say I get a credit card for five hundred dollars, it's got no annual fees and it gives me a cash back. That's a fantastic way to start my credit. Remember, no annual fees, so you don't just pay for getting that credit. Right, So now I have credits. So what do I do? Number two? I use the credit so I go. I want to buy gas. I buy gas fifty dollars gas to fill my tank. When I buy the gas on Monday, I can wait on Sunday and pay down the card.

You buy gas, you pay down the card. You can pay down the card anytime. Credit cards are paid end of the month. But you can pay down the credit card anytime. You buy guys on Monday, you pay on Sunday. You can pay on Tuesday. You can pay on money if you want, just pay the card. If you pay on time, you are getting thirty five percent of your

score towards that credit scoring. Your payment history is extremely influential in how you get a credit scoring very so you can see that if you that's it, there's no financial you're involved. Get a card or get a loan and pay on time. That's it. Get a card, get a loan, pay on time. You get to five percent, extremely influential. What's the next thing. You want to look at? How much you owe on that card? So yeah, we

get it. Life happens. You might have a credit card and your card goes bad and you've got to take an uber, You've got to go buy food, so you put a balance on that card. That you don't pay back in that month. We get it. If you are going to put a balance on your card, do not put more than thirty percent of what the loan approve of that card is. So let's say you've got a card for a thousand dollars and you have to carry over a balance. Don't carry over more than three hundred

dollars to the next month. So you're going to pay interest on that turn dollars, but try not to carry more than turn dollars. That's thirty percent. The more you can keep your score or the what you carry below thirty percent, the more you can you can enjoy that amount owned credit that is about thirty percent. Your total credit usage is highly influential. It's not extremely influential, it's highly influential towards your score. So your payments history is

the most important fact of pain on time. Then how much of the of the amount are you owning. If you have your credit card for a thousand and you only take thirty percent over the next month, you're fine. Try to keep it below as much as possible. Then what else length of credit history? This way it did get you, guys most of the time, because you get into the US, or you're into the West, into UK and you say, I'm going to wait till i'm organized

before I get credit. You see, credit scoring is fifteen The length of your credit history is fifteen percent of your score, so total how long you've had the credits, how long you've had your credit card is very important, So don't wait as long as you have the opportunity, even if it's just going to be a Star card or a secured credit card, get it, get it and start to confirm to getting that fifteen percent of your score. How long you've had the card is very very important.

So that means if you have a card that that was your first card, you've had that card for a long time, try not to close that card because you're going to lose out that fifteen percent. I get it, if you saved. I mean if you've got to card maybe three months earlier, and you prefer that a card, maybe, but the length of time we've had your credit counts, so try not to close out those old The first card that's very very old one is giving you about

fifty percent of your score. Right, so as soon as you can get credit, I've told you how to use it. It's got no annual fees, and it's got to cash back. Use it, pay back, use it, pay back right, Okay, new credit. This is important. One you go to a store, they'll they'll tell you, oh hi, yeah, your grocery is ten is five hundred dollars. But if you apply for the store credit, you can get a credit card and you can give you twenty percent immediate credit to pay

your groceries. Always say no. Every time they do an inquiry. When they tell you do you want to card, they are gonna do an inquiry on you. They're gonna run what we say, they're gonna run your credit. If they run your credit, that's gonna be a hit on your score. The more times you run your credit, the more you lose ten percent of your score. So new accounts opened

are moderately influential, but they affect your credit scoring. So what I mean is if you if you go to the to the banks to get a credit card, you go to the store to get a credit card, you go to another banks get a credit card, you keep on looking for credit. The system tracks you, and the system says he's looking for credit? Why is it looking for credit? It dings you so it takes your score down. So if you don't need credit, don't apply for credit.

If you've got one, that's fine. Build on one credit card, don't go get multiple because the more you apply for credit, the more it brings you. And they might not tell you we're gonna run your credit. They will tell you, do you want to apply for a store card, it's gonna make you pay for taty percent off. Or you want to travel on a holiday and the airline will tell you do you want to get a fifty percent discount on your ticket? That means that's are offering you credit.

They might not say it openly, right, so be very very clear. Try not to apply for credit if you don't need it. Very very important. And then this last one is one that's not doing understood. It's called the credit mix. Credit mix is going to be ten percent of your score. What does credit mix mean? It means if you have three credit cards, that's three credit products. Fine,

you have that, that's fine. But if you have one credit card, one personal loan, one auto loan instead of having three credit cards, it kind of looks better on how you are scored. So the mix of your credit is more important. Than the number of the credit that you have. So you're start having three credit card, have one credit card, have your personal loan, have your auto loan. It you can afford it, right, So one says, I guess you're in this text now. So one says, should

I take a loan to buy a car? I have the money to pay for the car. I always advise folks, this is the question I get all the time. If you want to buy a car, the car is ten thousand dollars and you have ten thousand dollars cash, you know what I'll do. I'll buy the car in cash for nine thousand, and I'll take credit for a thousand, even five hundred. I'll take an auto loan for five hundred dollars for five years, just so it registers on

my credit. I have the money, I'll take the money, put it in the bank, and do an automatic payment every month from that bank to pay down the auto loan. So I'm getting ninety five percent. I paid cash for it. The five hundred dollars I finance just so I get into the credit reports so that it shows that I have an auto loan and I'm paying on time. It's not the amount that you borrow. As important is that you are paining back on time. Pain Back on time

is thirty five percent. Amount you owe is thirty percent. Length of credit history is fifteen percent, new credits, new inquiries. When you go ask for credit, that's the negative ten percent of your score. The mix of your credit is going to be about ten percent. Guys, this is how you build your credit. This is how you do it. There's nothing here you cannot do. There is no magic, there is no complicated formula. It's as simple as taking

the loan and paying alone. You don't wait till you want to buy a house, then you try to build your credit. Doesn't work that way. You've got to start to build your credit when you get into America. You say, Okay, in five years we're going to buy a house, or in three years we're gonna firehouse. Start today, because you're going to have four years of credit pain on time.

What means your score would be the eight hundred. So when you then apply for that loan, you're going to get the prime, the very very beneficial rate that I reserved for the very best borrowers. And how can you do it? Like I've told you, credit credit card paid on time, don't carry over a balance. So they are what we call secured credit cards. Secured credit cards, this

is also what we call secured personal news. I'm going to get to them next in the next slide, but this is what you want to get, and I'll explain to you why they are different from the other credit cards and why you need them. So this this is the slide, guys, the slide about how much you pay, and the slide about what you pay. This is what I don't want to get true to you guys today.

It's very important you understand this, especially especially as a quote unquote is a minority on immigrants and all that. You've got to know how these things work, and this is how they work. This is why folks get cheaper credit than you. It's not racism, it's knowledge. You've got to understand how it works. Then you use that knowledge to your advantage. Right, very very important. They're gonna have

shed a new slide credits called ingredients tentified percent. Just copy this page, stick it somewhere, talk to your partner about it. This is your exam so walk to the answer. This is how they are gonna score. You know, most of us we go get jams scoring metrics, how JAMP marks. This is how they're gonna mark your credit. So walk to the answer. Get a loan, pay on time, don't carry a balance, get to or three types of loans, don't apply for new credit. That's all you have to do, guys,

and you're gonna get to eight hundred. That's it. That's it. There's nothing implicated about this. Let's go be further. So that's what I've said here, right, So this is that I'm sharing how you want to include pre your score and the person I put there and I put it in all caps. Pay on time. Once you pay on time, you are essentially saying that you are a good borer when you say the space I said, your credit, show your credits. Care shows how responsible you are with credit.

The responsibility is if you pay on time. So pay on time, keep your card balances low, expand your credit file. It's not the number but the type of credit. So you don't want to have three credit cards, rather have one credit card, one personal loan, one auto loan. And I've explained to you about this autolon thing. If you can afford to buy the card cash pay nine five percent in cash, take five percent credits. They will, They'll do it for you, right, So expand the type authorized user.

Many of you still cannot be able to afford credit even with all this stuff. Maybe you don't end enough. Maybe you're a nanny, maybe you're a students so you don't have money even to pay for credit card. That's fine. Do you have an uncle? Do you have an auntie? Do you have a sister or brother over there? Can they add you as an authorized user? They don't have to, They don't have to give you the card. They can add you on their own card as an authorized user.

Ask the bank if you then use that card, does it show up on your credit scoring? If they say yes, this is a fantastic way to do it. Many kids that are maybe sixteen, it's not their credit, their parents credit, but they are on the card so it reflects on their scoring. So for you, you're a student, you're going to university, you're not ed any income. You just want to go read. But you have a sister in the US, right, ask her,

I can you add me on your card? You don't have to give them the card, so to add you on the card as an authorized user? If the bank says, yes, that's calling reflecting your credit report. Then fantastic. As she's using her credit, you are also getting that credit because you are also a quote unquote user on that credit. So that's a good way to do it without you getting credit. Right. Don't apply for credit you don't need. Like I've told you, don't go to the store and say, oh,

you're going to get reduced credit. If you buy, you're going to reduce credit. It's a trap, right because the more you applied, the more you get that thing on your credit care it takes you down, not a lot, but it takes you down. Don't apply. It also tells them a story that will ask you why are you looking for credit? Right? Why you looking for credit? Always review your credit report. So we've talked a lot about

the creditscore. The credit report is like yo, they give you a report and they tell you, hey, this is what you've done this month with your credit. It's very important you hear it because of fraud an identity tips. I'm going to get to that why this is important. So I think guys, by now we've got the answer to the whole space. Number one, pay, just pay your bills on time and number two, keep your balance low

number three, expand your call your number of types you have. Right, there are many ways to do this, and I'm going to get into the Let me see if I have a slice specifically for secured credit. If I don't, I'll talk around what secured credit means. I think you guys should go do that as a whole. I don't let me talk about secure credit. If you go to a bank and you want to get a credit card, it's the bank that is giving you the credit card, so

it's bank's money. So you have the bank it's going to say, well, we don't know you, so I'm going to run your credit. We're going to pull your fight ope, and I'm going to see if we should give you a credit card, so you run your credit. If you're just doing a new guy to the United States, of course you won't have any credit, so you're gonna come up as zeros. They might tell you, hey, I'm sorry, we don't know who you are, so we're gonna give you a credit card. End of story. But their cards

called secured credit. So when you go to your bank or your credit union, you are them. Because if you just new an America just ask them, do you guys offer secured credit? If they say yes, what's the secure credit? It means you're going to take cash and give the bank. The bank will give you a credit card. So it's not the bank giving you the money. No, the bank is saying, give us cash. Then will give you a real credit card. Why do you want to do that?

Because you need the credit card to get a credit score and a credit report. If you simply use your debit card, it doesn't give you a credit score. Most times, if you want to rent a card America, you've got to give them a credit card, not a debit card. Very important. So if you don't, if you've tried to get a normal credit card, they don't give it a normal credit card. Go to the bank called credit Credit, you say, can I get a secured card? So you give them money, they give you a credit card. How

much do you do a secure card for? Not a lot, even if it's one hundred dollars. That's all you need because you're not getting that card to go spend. You are getting that card to estabi credit history. What I use that card for? If I have a car, use that card to pay for gas? If you don't have a car, pick a grocery, or pick a utility and pay for that utility. So it's every month your card

is paying your power bill. End of story. Pay you pay your power bill, you pay the card off, you pay your power bill, you pay the cardoff, or you buy gas, you pay your card, you buy gas. The end of story. You don't have to complicate it because the secure credit card does not report as a secure credit card. It reports as a credit card. It's the same credit card that any of what everybody else has. So you're going to see that even without a credit scoring,

that credits profile you then get. That's how you establish that credit profile. If you do that for a year, then the credit company will report that, oh, this person has a credit card and has been paid on time. Then next time you go to the bank they try to pull your credit. Of course they will see your credit file there because you have a secured credit which you have in pain on time. That's how you establish credit.

It's chicken and egg. They will tell you you need a credit card to get a credit score, but you need a credit score to get a credit card, So it's round or round. The way you break through is through a secured credit, and you can get a secured personal loan exactly the same thing. You go to the bank, you say you want a personal loan, They run your credit, they don't see you. They won't give you a personal loan. But if you go to the bank and say do

you offer personal secured personal loans, they say yes. You give the bank money. The bank will take that money giving them and give it back to you as a loan. Why because when you pay back that loan, the bank is going to report to the credit bureau that you are a sicky, that you are a responsible borrower. You are paying back your loans. That's what you need. So don't wait. Don't wait and say after two years or

after I'm in school, I'll go get credit. No, as soon as you enter go apart for credit or secure credit. Get your credit history going, get secure credit, paid on time, keep your balances low. Let me go into a bit more detail. Right about the space says, how can you fix your credit? We've talked a lot a lot about today. How can you establish and that's a small credit. What is bad in you that when if you don't pay

on time, it's bad, but it's not it's not life killing. Right, If you don't pay your own credit card on time, Yeah, maybe one one month, two months is not gonna kill you. Right. It's bad, but not gonna kill you. When you have things like you didn't pay your card for ninety days, or there was a there was a shot sale, which means you own the home, right, you couldn't pay the home. The bank took your home and so to pay it back. Or you were bankrupt, or there was the foreclosure. Those

things are what we call negative issues. They are negative, they're very impactful, and they stay on your credit report. So if you go and borrow money to buy a house and you can no longer pay for that house and the bank has to come in to sell that house, right, they put on your credit report and they leave it there. It can be there for sometimes five years, sometimes seven years. This is where it hurts you because you can't tell

it a normal loan, like a mortgage loan. If you have that sort of thing on your report, it's the negative report and all the lend that's not just your bank, all the lends in America will see it. That's the whole idea. So if you look at the slie of just shared. Now, this guy has a credit scoreing of so let's pick the biggest one. This guy has a credit call of seven hundred and eighty, so he uses care of seven hundred and eighty, and he got to

a mortgage right he didn't pay. So if this guy was bankrupt bankrupt, his credit scode will go from seven hundred eighty to five hundred and sixty, just the range five forty to five sixty, So you lose about two hundred just because it was bankrupt. If it's a foreclosure of it goes from seven eighty to about six twenty short sale seven eighty to six twenty ninety days later on a mortgage seven eighty to six fifty thirty days

later on a mortgage seven eighty to six seventy. So when you are late on paying your mortgage, it affects your credit score. And mortgage is just world ways in here. We can use auto loans, we can use any loan. If you are late, it affects your credit scoring, which is going back to that point, you made pay your bills on time, end of story. Don't even if you just take that as you'll take away from today. Just

pay the bill on time. There's not a beg. Once you pay your bills on time, you're fine, And if you don't, the effects are gonna be really lily devastating for you. Because you've seen it here, you can go from this is just your score from seven eighty to five ondre forty and it stays on your score. Yeah, I just if you want to speak, just requests. We're going to be done in about two slides and then we'll just take questions. Yeah, so it stays on your score,

so you don't want to have dounder your score. But it's not even the bad part. If your score gets affected, you can still recover. Someone there still, Okay, I ave already bought the house, I was laid. My score went down. Who cares after they brought the house? I hear you, But how long does it take you to recover from this event? Again, Let's go to our guy that had

his credit scoring of seven hundred and eighty. Right, let's assume this guy was I was bankrupt, so his score was seven hundred and eighty, and of course it bo it became bankrupt, so we saw the score went down from seven eighty to about what number was that so about five hundred and forty. So it went from seven eighty to five hundred and forty. But what's the real issue with this is that it will stay on your report for seven to ten years. So on your imagine it.

Just imagine that you're in a country where you cannot get significant credit from seven to ten years because you were bankrupt, and it's going to be in your report. That's what this is basically saying. So that's not good, right. What if you were ninety days late on your mortgage, it's still be your report for seven years. Ninety days little in your mortgage, thirty days late, it's still a report for three years. Shot, Still there's a report for

seven years. The point is this, right, this guy's keep records. So if you are late, what you're doing is that you are putting things in a record we will call negative negative impacts on your report. This is what the guys look at to give you a mortgage. So let's say you came to America and you were single, or you came to Canada and you were single, and then you got a car and you are ninety days late on your car. It's not your report, it's going to

be there for seven years. Then you then got married and you want to apply for a mortgage and you and your wife applied together. This is gonna show up and this would affect the total ap are you're gonna get on that marketing because you have a negative. She might not have a negative, but you have a negative. It's gonna show up. They're gonna ask you about it. So again, you can't avoid these things. This is this is record keeping and this is how they operate over there.

So this is just to let you know, apart from how you get the credit scoring, you don't want to be in a situation where you have a bad score because it would affect you, right, it would affect you. Guys. I think it's gonna be our last slide and then it will take those questions. Today's super Bowl weekend, so hey, let's let's go do that. So what I what what should we? Then? Do you know? I like acronyms, so I have an acronym here pram p R A M p R A M patience. You've got to have patients.

So essentially, if you have bad credits, be patient. Don't go apply for you credit because the more you apply, the more they see that bad credit, the more it dings you because you didn't inquire. So if you do something bad, don't go out and apply for a new credit. Just give it time to wash your way. You can see we have the seven years. Just give it time. Let it wash away. Yeah, pay your bills, pay your bills on time, do all that good stuff, but try not to go apply for a new credit. Right. And

number two, reduce your debt to income. We didn't talk a lot about debt to income. What is that debt to income as we'll call that reducing your carry over to next month. Your debt to income is a key thing that you used to also make you lose. See they're going to give you credit. Right, how much income do you have? This is the debt you have. This is where the quote un quote minorities get tripped up because you might have good income, but if you have a lot of debt, then your DEITYI is low. You

don't qualify. When you want to buy a house, they look at not just your income but the income to your debt. So if you make a million dollars, that's fine, but if your debts at eight hundred thousand, it bings you more then that's one that's making just two one hundred thousand a month. You have a very very low DTI debt to income. The person has any lower and you has a higher DTI than yourself. So bring down your debt to income, reduce the debt overhand that you're carrying.

And it's those small personal loans that they don't like. Those small personal loans you take care and they do because they're making that rite you thats all the time. Take this loan, take that loan, Take this loan, All those small loans you take normally impactful, right, absolutely known. New inquiries good. It's the same as patients don't go and say, oh I want to get I want to get a car higher. That offering me a loan. If I take a car higher and apply for that card. No,

you go to say a departmental store. If you get a store card, you can get rosses cheaper. No, all those inquiries are going to show up. You have to be patient number one, because you've got bad stuff going on. If you've got one credit card, fine, so if I put that one credit card, that reaches your DTI as well, because potentially you can get new debt. But you've got to it is slow down what you're doing, and of course then move forward, right. And last one, of course

it's called money. So you've got to move into a credit scoring. Make sure you are not getting any new impact into your report that you're not aware of, because you want to take care of that. Right, Let's go back into the next the next one, montor I doesn't show you, guys, this is going to be the second last slide. Right. The law in America says that you have a credit you are given up your current credit report for free once a year. So if you look

at this, guys, it's called annual credit report. You can copy this copy this name. So every year this is American, about Canada or the UK. Every year in America, by law, you are to get your you can request for your credit report and you get it for free. And like I said, there are four credit report duros and the fourth one name escapes me. So you can go to Experience in January and actual a credit report. You can go to TransUnion also act for a current report. Every

facts also acts to a credit report. Most banks now will give you a credit report on the banking app every month, so you don't have to go to here every month to give you a credit report. Why do you want that report? The report shows what people are reporting about you, the negative effect, the inquiries. It's gonna showpen reports. So what are you looking for in that report? You are looking for anything you did not do or

anything that is there that's gonna harm you. Because when you see someone that's gonna harm you, you have the right to then report to the bureau. And those guys have got they are meditated by lot to removing a certain amount of time. So you want to always look at your report. And I'm giving you an example for reports on the screen right here. So you look at your report. Make sure you look at those negative items. Negative items very important. Look at negative items. That's where

you're going to see the bankruptcies. Look at your credit inquiries. That shows you where you have pulled credit. So what if you just sit at home you say that you are pulling credit to buy a house in Wisconsin. You've never been to Wisconsin. That means someone has got your data and is trying to create a mortgage for you in Wisconsin. You guys know that that song I want to wake up in the Bulghardi that's the real crimes crimes crime story where there was a quote unquote our

our son. Our son was in America and what he was doing was taking people's identity and applying for credit, in this case homeowner's lines of credit. So you have a house, you own your title, but you don't check a credit score. He will basically go online create you. He has your name, he has your date of birth, he has all that and then he creates you. Then he applies for credit in your name to a bank. The bank will look at you. Oh, you've got a house.

Your house is worth a million. You want five hundred thousand, no problem. The bank will give you a loan for five hundred thousand, but the loan goes to him, not to you. You are just there playing golf. Your house has been sold in the market. Then when you don't pay, the bank comes and said, hey, you took a loan. So I didn't take any loan. The bank said this.

You you signed this. I didn't sign it. But if you had looked at your credit report every month, you would have seen the inquiry that the bank had done an inquiry on your credit report, which you didn't do, then you can easily call the bank. Also, if you don't pay and the bank, maybe the banks are trying to reach you should have fake address that the frost I gave. You didn't pay for five years, so the bank wild put your house up for collection. It goes

to your report. It's not a negative report in your credit score. Maybe you are in smaller country nowhere. So imagine you have a negative report. You are you are very reported bankrupt. The bank has declared that you can't pay, so that house is for foreclosure. Because it doesn't look at your credit report. This is not your score, this is your report. You've got to pull that report at least once a month and glance, especially those negative items,

especially the create inquiries. We had to see a crazy inquiry. You didn't you did not do immediately dispute. If you're allowed you to sit, that means you saw it. The last city. They give you a statement after about sixty days you've said this is true, So very very important that you do that. All right, folks, So we will take questions now if you guys have those questions, and then of course we'll just yeah, let me take it back here. So yeah, so if you guys have questions

respect about an hour, I don't mention. I record this so that way I have it on video and on text and almost afecas are going to be busy today because of Super Bowl weekend. So you can go back

in and of course read this if you can. But I'm not going to read a few questions here on the DM because I've read this one about Like I said, if you have a car, if you have money to buy something, see if you can pay ninety five percent even ninety eight percent right on that loan, and they just take that as a loan because that helps your

credit score. If you're at eight fifty, no need, no need, right, if you're at eight fifty, because you're already you're already should we say, at that good level, So no need for that. Someone says, I pay my phone bills every month. Does that go to my credit scoring? No, no, it has to be a loan. There they are now I think it's now legislation or the credit bureaus are trying to get some r tilted bill payments to show up right,

to show up as a as a credit report. But for now, no, if you simply pay your bills, you don't get it doesn't show up as a credit. It's got to be a credit to show up on your credit report. So your phone bills are not going to show up. There's a way, yes, so correct. So so in most of these apps, like the Experience, the most of the credit billers. I mean, there's a way you can report your bills to them and you can build credit with them, but that's a program that they do.

I don't want to talk about their own program on the show because that's a specific to them. But overall, it's got to be alone for you to then have that credit report. The name is credit report, not build report. So if you simply pay your rent on time, you don't get a credit scoring. Okay, So I like this question. I guess always asking just walk me through. I want to buy a house. I'm in Canada. I want to buy a house. So you want to buy a house.

What's credits called? Do I need? And all that? It all depends, right, There is no specific number I will say if you have this credit score, we'll give you a house. It has to do with your financial capacity to pay back that mortgage. So remember when I was going to, like I said, debt to income and your income. They would look at the income you are making, they will remove your living expenses. Whatever income is left over is what they're going to consider to say, can you

pay your mortgage with this? So your credit score, all it does is give you access to lower rates, and we're going the reason why you want lower rates. But your credit scoring does not guarantee that you get that home if your income cannot afford that home. So you see what I'm saying. So it's still going to be a function of your credit scoring and your debt to income. But if you have good income and bad credit, you will get the loan all things been equal, but at

a very very high interest rate. That's the point where when we're trying to make right. So both of them are very very important. If you want to get a home in Canada, start to build your credit score and Ifada, have to build your credit scoring for the same rules. It's the same on all the West. Get your credits cad up, get your debt to income low. You want to have more income with a higher credit score. That's how you essentially creditt Yeah, I added you, Yeah me,

but you keep on for I've added you again. If you want to speak. Just let me see if I've sent you a request again, just request to speak and you can speak on the space. Yeah that's a great question. Yeah yeah, so yes, okay, So let's just explain the issue about the two of you. Right, If you apply for a mortgage together with someone, then both of you are going to be looked at as a borrow. Right, So if you are applying for a loan with somebody, then two of you are going to be looked at

as the borrower. So if you have a negative impact on your score, then of course that negative impact is then going to be looked at. It doesn't mean I can see they're going to tell you yes or no, but they are going to answer you. You're going to ask ask you that question, why did you why when you laid on a mortgage? All that kind of stuff. That's what I'm going to ask you. So there's no no one can sit here and tell you we're going to give you, deny you, or give you credit. But

we're giving you how they mark your script. What we're giving you here is how that credit script will be marked so that you then walk to the answer. I get that. Yeah, okay, fantastic, and I saw one here about the student. I'm trying to find it. Great question from a student. Okay, can you explain authorized credits? Can you explain on the same guy, can you explain authorize credit? So authorized credit means if I have a credit card, right, I can add an authorized user to my credit card.

Most times I say, maybe the kids want to go abroad for a holiday or want to travel for school holiday. The parent will take the kid to the bank, or the parents will say, I want to give this kid my credit card. It's the same credit card, but I want this kid to have this same credit card that's going to come to my account just in case he runs out of money when he's in America, right when he is in Paris or whatever. So what then happens is that they will give you. They will give the

parents a card that's attached to the father's card. Now, if the bank says if the kid, so, every time the kid uses that card, he has his own credit scoring also coming to him because the credit port to show that this song used that credit or the father used the credit, and the son is also getting the credit scoring apply to him. You see, So the authorized card allows the child or whoever the authorized user is to benefit from the credits report of the main use.

So it's not a new card, it's the same card. But because you are using that card, you also get the rewards. I've got. She she got first daughter. How are you? I'm great, good morning, fantastic. I always listen to your space. Interesting. Yeah, I want to answer this question.

in thirty days. You're going to pay that fee and that fee is going to wipe up the profits making Nigeria.

twenty four months. Fantastic. If you have that option, that's like a zero percent personal alone. That might make sense. Okay, thank you.

go to creatins as well. If you get a longer repremand period, that's what you want to do longer. Yeah, thank you for your more champuship. You have a good one. Yeah. So that those are great questions. Yeah, and so this gentleman is asking, let me see yep, So what if I yeah, so went back to this home ownership. There's no score. I would sit at the score you want to get before you start to look for a loon. It's at least seven hundred for your to buy a house,

at least seven hundred. But your credit score is not saying that. Once you get seven hundred and once you get eight hundred, you can get a house. It basically says that you are a very very good borrower. That's what a credit is already means. So it just basically means, hey, if you have a high credit score, you are a good borrower. So we can lend you money and you

pay back. But there's no score to say. What I will say is this, if you have a look at score, you might not get the loan, but if you have a high credit score, you're able to get that loan better. Hey makes it? I don't.

to clean it up after the period. Otherwise you're in big trouble. That credit card can bankrupt you because it's the most expensive form of credit in America. So look at advice if you own your own home. If you own your own home, try and get over call the home equity line of credit. I know the cards in the UK. I get a second mortgage, like a line of you have that in the UK. They should have that right where you can take a second line and they give you the cash, but you don't pay interesting

you use that line. The habit in the UK, ABE makeing, Yeah, I think they do. I don't. I will stay double chest Okay, okay. So now when you have that, yeah, if you have that home excellente of credit, that's going to be your cleanup fund. Then if you have a credit card that pays you zero percent interest, then you can use that credit card to do what you're doing. Because let's say she ships that good from Houston to Legos. It takes about three months or so to get to Legos,

maybe one month to sell. She cleans up, that's within six months. Abe. The loan is for zero percent for twelve months, so she can use that credit card, clean up, pay back your credit card. You don't funny thing, the bank will increase that loan for her. So if she can clean up that transaction, the bank will tell her, hey, we're going to give you a bigger credit card at zero percent. So she's she's onto something, but I caveat again.

She's got to make sure that she can clean that credit card up at the explain of that grace period, otherwise it's going to bankrupt her. Now, while we're doing a home with your line of credit, if you have the credit card necessary, you should do those goods to Niger and then there is aid NLC strike. All the pots are closed, so the card is there, you can't clear it. Then your credit card is due no credit cards.

If you simply pay two percent or let us say five percent of the credit card you've paid for the month, you don't have to pay back the whole hundred percent. So that means you can then take money from your line of credit, your homework line of credit. It has a higher interest rate than your credit card, but you can pay the minimum on that credit card, so you buy yourself thirty more days. So the homework dealer of

credit is going to be your ultimate insurance policy. Use your credit card to do that transaction because it's zero percent. Then you use your home excellent of credit to clean up the credit card if there's any problem, because yes, you pay higher rate than your credit card, but the home equity line is going to be your lowest form of credit, lowest credits rate because it's a secured loan against a very property that can be sold tomorrow. So

that's how I would do it. I'll get my homework to learne of credit, then get the credit card zero percent, use a credit card and run that business, and then I use my home credit as my insurance. That's what I'll do. Thank you very much, Thank you fantastic. Yeah good, great questions again, Yeah, great questions again. Yeah again. Yeah, just just like I explained, I just spent to the make it and lady, you only want to use that card if it is zero percent and if it has

a long repayment period. Three months is not long. If you're doing three months, don't export to Niger with three months. Anything can happen. The ship can get a dog, they can anything can happen. So you want to have if you most bands will give you maybe a year with a year, it's not it's possible. But remember whatever you are buying has got to be able to be put on a credit card, so some vendors will not allow

you put stuff on a credit card. I know a lady in here in the US that bought a car with a credit card that was twenty one months zero percent interest rate. She went to the card company and told them, I want to pay for the car, but I have a card. I don't need you to know about a credit card. And they told her, yeah, yeah, we'll take a card. And she came back and they said, oh,

it's a credit card, we can't take it. But I said, you guys are ned problems that you use a card or something like that, and they allowed her to run the card. So she paid cash and credit card. So the band she put on the credit card is zero percent for like twenty one months. That's what she did. So she's gonna pay her auto loan. But the card she got, the card that she bought them point the credit card is zero percent. It's like a personal illness.

She got for zero percent. Again, she's paying it down every month, but no interest. You only do that when you have the means to pay down. Don't use credit card to do a business. Don't use credit card to start a business. Your credit card is what we call walking capital. So you have a business, and your business maybe you sell, maybe you sell water bottles, and you want to pay for nylon paper. Yes, use your credit card.

You pay for nylon paper, and then your turn around time, the companies pay you and then you clean up your credit card. Yes, so on that great question here, what about a business credit card? Can I use a business credit card for this as well? I need to buy a house. Well, remember that the business is different from you. In America, the business is a person, like a human being,

he said, It's an entity on itself. That's why when you open up a business a business account in America, you sign what's called a beneficial owner, who is the beneficial owner of the business. You sign that that shows you're the human being behind the business. Right, So when you have a business, it's hard to say, this business is buying a personal home. But that's not the same person you. So yeah, that business income. The bank will consider it as income to you. But the business itself

can't buy a house. It can be applying for a mortgage, but the income you get from the business, the bank will take that in as as income to you. Yeah. So okay, okay, so yeah, yeah, so you're not because you're asking you if you can use a business credit card. Of course, of course you can. You can use a

business credit card to do the same business. As a matter of fact, guys, if you have a business, try to get a business credit card several from your personal credit card, and also try to build the business history and the business transactions on that business credit card as separate from your own individual credit card. Very very important if you can build two of them, because the business has its own credit history and you have your own

credit history. The idea is to try to keep on doing transactions so that the credit card allowance is basically up and up and up and up. Right, you want to get that credit card money allowance up and up and up. Yeah. So yeah, great, guys, fantastic question, lot. I can read all of them. So and we have how long do we have? How long do we have to stay here? Yeah? So Nigeria, Nigeria has credit cards, Yes, Nijer has credit cards. Nigeria has got credit bureaus. I

listed three of them. They're still on the screen. Nigeria has got credit Registrar, Credit Registrar, Nijera has got The names are number one Credit Registrar that's a company. Number two c RC Credit Bureau that's a company. Then there's first Central Credit Burea. So we have three as today that I know of Nigeria. Yes, So when you want to take a loan, they also use this same framework

and I've given to you. They track how you are repaying and they're able to then advice vendors where venos want to pull your credit, they'll go to one of these guys and they also pull your credit. So, yes, Nigeria has I'm surprised asking that Nigeria has credit card. I use the niger had. I know Echo Bank two thousand and two thousand and three had a credit card Echo Bank, and I know, I know I had it and I is it for stock trading, which was which was a very bad idea. So you should never do that.

Learn from my mistake. Never do that right because back then Nigeria you could buy the stock. You could buy the stock when they issue a bonus. When they issue a bonus, the stock price goes down, then you buy it. It's like psychology. You buy it right, and the market things that the stock price is cheap. It's not cheap. It simply went down because of a bonus. So you buy the bonus, you sell the bonus. Then you use your bonus shares to cover up long story. But what

then happened? And they start to delay the certificates and if you don't get back then we use certificated. If you don't get your certificates, you can't very fin the certificates you can't sell. So that whole deal now field because you borrow money. It's like a short sealed which you come up with your certificates. But once it's that the delay certificates, the whole deal went off. So don't use stocks, don't use your credit card to to do

stop trading. Please don't, yeah, please don't. Yeah, son has that?

So so essentially, if you have a phone bill it shows in the UK. Fantastic. I didn't know that. That's good for you, guys. I know the US it doesn't. But you can go to the credit bureau. I know Experian has that, and you can't tell the credit that you want them that you want to pay your you want to have some bills show up in your report, and they can try to do that for you. Yeah, I know that, so always find out. I'm just going to give you the broad trops. Hey, that's that names

that name right strategy? Hi? Yes, Tarti, Petty Jesus man, you guys have simple names. Man, Hi, Hi, how you doing. I'm fine, I'm fine. Sorry. The name is Tati Peti. It's just a brand. My name is Prosper. Prosper are doing fine, I'm fine.

banking licensees. They can prove that you are lending for mortgages based on those factors that we used to have red lining before, where black people right the mortgage the banks would put in a location and red lining and saying we're not going to give loans in that red line. Now the banks in the US have got to publish a report to show who applied for loans mortgage loans, and who they give mortgage loans to in that community

where they are doing business. So they have to be very literally when you applied for a loan in America, they will ask you your ethnicity and your race. They would ask you for it because they have to report that so so and so quote unquote black people applied for a loan and we give those loans to suit this quarter. So they they track it. So you can't hide and say, oh, I didn't know he was a black person. No, they want you to know he was

a minority, and they want you to know that. Okay, you are in that community, how much loans have you given to that community very important. So I'm surprised you say Journey doesn't do that. I think Trapp has gone off actually strapped. Thank you very much. I appreciate the comments, and I thank you. I think you live. You pronounced our colone jump very well. That makes you lived here for quite a while. Literally have produced comments. Hey Oxley, how are you doing? Oxley Tech? Also take us whom

We're going to be done about eleven. We're gonna be done in about eight thirty, so we can go watch the Super Bowl? Oxley? What water in your mind? O the tech?

Maybe someone can come up and see that won't use quite in Nigeria for a while. So let someone can come and say that that would help effrects most effect. Are you doing? What's happening? Man? There's no proverb fantastic. I'm doing very well, sir. Oh yeah, And there's this question I want to ask. I don't know if we're talking.

All right, fantastic man, thanks for calling. Appreciate you. All right, folks, thank you so so so much for hanging out with me. Frix. All right, thank you so much, guys for hanging out with us today. We'll spend an hour to teamly just talking around credits. And again I made sure to record this because so many of you are going to be

watching the super Bowl or watching the soccer game. So I'm wanting the guys to have this is a very very important topic, right, I'm trying this this This month in America is the Black History Month in America, and Black history I look look at the economic history. If you look at the demographics in America that are economically viable, you're gonna see the Caucasians, You're gonna see the Latinos, You're gonna see the black population. If you look at

home ownership, you're gonna see the same demographic. Number one is Caucasians, Number two at the Latinos. The last is gonna be the African Americans. And and all that why there's a pathway to home ownership and to economic security in America. That's the pathway. Once you own a home, you have equity. The home is yours. You build equity, and a home is the best way to transfer world from one generation to one generation. If you own a home and you pass away, your kids get that home,

it's theirs. They can live in it, they don't have to pay rent, they can sell it witness, they've got cash they can then use to start a business or to go to school. But that generational transfer of world, it's what has empowered need demographics. So you're not asked the question why don't many Blacks own homes in America even though they build in America for centuries right because of credit. Homes in America are given based on credit.

You've got to have credit to get a home, So why don't they have good credit because they don't understand how credit works. Once you understand how credit works, it is then easier for you to then apply for a market. You don't have to go and get a mansion, even if it's a flat. That equity is yours. In America, once the home value appreciates, the equity is yours. We're not talking about if a market is the loan of

a market is a good investment. The point is, in America, the pathway too wealth is via home ownership, and home ownership comes with getting a good credit score to afford that home. So this is a very important topic that you've got to understand how credit works. And the sad part is that good credit is a very very simple concept. Number One, you get a credit. It can be a credit card, it can be an auto loan, it can be a home loan. That's number one thing you want

to do. Number Two, you pay it on time, so you pay the interest due on time. Once you pay interest you on time, you have met thirty five percent of that obligation. Number Three, you keep your balance is low. So if you have a credit card and it's for one thousand dollars, you don't want to carry over more than three hundred dollars or thirty percent. That gives you thirty percent of your score, so simply pain on time and not kind of a balance. You've already earned sixty

five percent of the available score towards the credit. If you have mixed your credit up, you get afford a ten percent. The length of time gives you a for to ten percent, So it's really not the hard thing to do. Get a credit card, pay on time. End of story. Are you able to build your credit history. With your credit history and with lack of debt, you can then afford a household that you can then use to get onto that equity journey in America and you

can then essentially get yourself into that American dream. That's why this is a very important space, especially in the weekend of the Black History Bond and all that. It's the same with Nigeria. If you own your home in Nigeria, you have the equity, you no longer parents. We might not have the create credit scoring, but this also helps you in if in case you'd like to build up that credit, this also helps you. So I'm going to take is it? Why are you coming late?

not paid. So if you get the good you get the bad in terms of that, So that that answers your friend's question. The second question is to say, what if I have a million dollars and I don't need credit, it wouldn't affect me anyway. No, If you if you have the money to keep on paying cash, then you don't worry about credits. I mean, I'm sure if you pull elon Moskus credit or bill get credits very very bad because maybe they don't borrow. Right. So I'm just

making a point. If you are an average person, a normal person in quotes un quote, you need good credit. So I would say, like I said, if you have money to buy a car, the car is ten thousand dollars, give them nine hundred nine thousand, five hundred dollars finance five hundred. So it goes into your loan, It helps your credit scoring, It doesn't hurt you. Right. But if you think you've got enough money you're not ever going to take a loan, fantastic, Just go and pay the cash.

It wouldn't affect you in any way. But if you think you need a loan down the line, I would say, always have a good credit score and keep it up there. You never know anything can happen to you and you my go friend billionaire to a normal guy, and so you want to make sure that you have good credit. Yeah, because answer a question. Sincere, Yes, thank you so much, Thanks for what you do. Thank you so much for the producer, Thanks so much. How you doing? Yeah, I'm trying.

How are you? What's happening? I just I just want to throw this up since we're we've blat is three.

till today? How many where their grandfather was extremely wealthy, the father was extremely wealthy, and the grands and sectionally wealthy. How many can you find. I don't want to be used to go above my pay grade. But I think you will not find any I know of one or two in my head, but you will not find any generationally compounded weld. In Nigeria, you will find two generations, but three four you struggle. Rockefeller Ford, their foundations are

in Nigeria today. When did they die? Rockefeller Foundation, Ford Foundation there in nineteria today, start curing malaria today. Du Pont, it's a family, DuPont, It's a family generational world. Even Bill Gates he has done its foundation. There's going to be around forever and ever because a foundation. Right, So how many do we have in Nigeria? So that's where you're talking about, is that you could we have to

have in the in African Nigeria generational world. So it goes to your specific question, how do or you both do it? Over there, they set up a structure using the legal systems to say I will pass world from myself to my dependence without paying taxes, so the taxes don't dissipate that income. It goes from myself to my grandson and all that and the laws out there. If you have in America, I think you can give about fifteen.

I think it's teteen to fifty billion as a gift in your lifetime and the government will not tax it. If you pass away, your wife gets all your assets tax free, and your wife can give gifts in her lifetime up to fifteen million or so. Again, that's on the side. Your specification is asking about how can the average person do generational wealth transfer? Credit cards are tricky. I do not add. I don't think you can only give a credit card to a baby. Yes, you can

give a credit card to a teenager. I seem lidicated. I want to go for to Paris for school excursion and their parents to give them a credit card. They are fifteen sixteen year old. That car is the parents own credit card. The kid has a card that he can use and all that. What I would advise you to do is to open up what we call an IRA individual retirement account. Specifically, I will go as fast in open up a roth ira. Rot is spelled roth. Open up in an roth IRA for your child. When

the child is a baby. If you have a business, take a picture of the baby and print calendar. That baby is a model in your business, So you pay the child your own child a paycheck or a contract. You have to write a real contract. Don't just give the money into the child, say it's my son. No, the irs wants the child to do to end what we call end income, not gifts. You can't put a

gift in an IRA and income. So the child will get that baby you took a picture of and use that baby's picture as you as your company logo for that year. Will end modeling contract. So you pay the model ten thousand dollars. You take that tental dollars and you put in his wrought IRA. That money will stay here until that child is to get a job, and that child can after five years, the cash us for the child. He can take that money out tax free

after five years. So imagine kid is a baby. After five years, the tax is the money is owned by the kid one hundred percent the CHAT. You can contribute as long as she wants earned income. The child can inherit that IRA. I can keep on contributing for the rest of his life till he takes the money out

tax free. So if you buy something worth a dollar and the good becomes worth a million dollars, the child can withdraw a million dollars tax free because it's a rot era after that five years, So that's I want to transfer. That's a simple way you can do it, and right now the minute easier for you. Guys, they made easier for you if you live in America. I think I shared that out to Americans. There's something called a four or five four seven account. It's called a

Trump account. Is it won't like this, so you can google it is a Trump account or a four to five four seven account. What they've done is this in America today, you can open up that account if you are filing taxes today. Let me get exactly if you're filing If you live in America and you are filing access today, you can simply tell your accountant that you want them to open up that it is called a four five four seven account. You simply just add it,

just a sht to people. You add that into your account, You put your kids names, your socials into that tax return, and you file it. So what you've opened up is an account for a child, and that account anybody can contribute. So they've taken that IRA concept. They've created this new four five four seven accounts called Trump accounts. The parents can contribute the employer can contribute. Anybody can contribute to

that account, and that account grows for the child. The account is invested in the US stock market ETF that invests in the whole market. So many companies now are even saying if you have that account and you have a child, your company will pay you money directly into account. Many banks are doing it, not mini banks, after they would match it. Mister Dell gave about seven point five billion. It's going to go to the accounts of those children opened up in low income the zip codes in America.

So that's the only thing you want to do. So if you haven't filed taxes today in America, just tell your account on four five four seven account, I want to open one as I file my taxes this year. When you open it up, you put your kidsen in there. The account is open. Then going forward you can contribute to your child's accounts. It doesn't have to be earned income now it can be any income. So it's better than the wrought Arab because it doesn't have to be

end income. Your child is born, you put one hundred dollars in, it reduces your taxes, it increases the child's net worth. So that's how you want to do it. That's how they do it. The Evoka is do it generational skipping taxes, generational skipping transfers, so that you are able to keep that world on in kumbat from taxi. So you hear trust fund babies, that's what they mean. Laugh at it all you want, but that's what you want to do. You want to make your kids to

have a trust fund. You ten today, in fifty years become the trust fund, right, is it? So? I think I've given you moretives. That is it? Yeah, We're good? Is it fantastic? Oh I do Hey, it's the kind of high yes, ma'am.

the greatest investor ever in the history of man kind? Right, Warren Buffett ask him, where should I invest in million dollars today? What will you tell you? He's going to take to go buy the US ETF that buys the entire market. That's what's going to tell you. He's not gonna take to buy in media. It's not gonna take to buy Microsoft. Know that I had to wait. It's going to take to go buy the entire US market

and just stad there. That's what he does. Bombs. I mean an equity ETF or index fond that buys the entire US market, for instance, v o O vt IV. It just means an equity which means stocks, index fond or et F, which means a basket that buys all those stocks in the US. Okay, okay, when you buy vt I, you're buying about forty five hundred US stocks immediately instant diversification. When you buy v O oh, you're buying just five undred of those stocks that is tracking

the S and P five hundred. So if you just do that right, you are getting your Nvidia, you are getting your Microsoft, You are getting everything that is quote unquote good and all that in America. You can go specific. You can say to buy dividend ETFs, it's there. You want to buy a property ets is there, but just buying the whole market. The US market over over time has consistently returned about sixty eight percent whatever from nineteen

twenty eight. You have your crash, you have your ups and downs, but it's always the trend line is up. So over twenty five years and have one returning asset is gonna be stocks, remove a bitcoin for now, it's gonna be stocks, which stocks you as stock. So sometimes you just keep it as simple as that. Just keep it as simple as that. You win. Not trying to be too good. It's because to buy individual stocks you

need advice, and most of us don't have advice. If you don't have anyone holding your hand, you're gonna miss it, right. But if you have someone holding your hand, you're gonna pay for he can give in yourself to buy. If not, just buy the index, go to sleep, reinvest your income. You're fine. You want over a twenty five year period. I don't see you losing money when I'm be losing money, not beating inflation. I don't see that happening.

going to stay back in America? Right? So you go get go get a job first, and first we get a job that would pay you income if you get a job that's going to pay income to you, right, that's one. Then I would advise that you try to do a balanced transfer so the balance transfer would work. That you would get a brand new card. Then you transfer the balance from your existing card to that brand new card. Usually balance transfers give you like a twelve

month You don't pay anything on the card. You can you can decide to pay the principal, but they're not going to charge your interest. That ad buys you twelve months. So if you were able to get a that's why I ask about your credit, but get a new card today. Balance transfer, So go online. They'll say best balance transfer cards in the Uways. Just google it. You get to give you tons of cards. So when you get best balanced transfer cards, pick one that you can apply for.

You can't balance transfer to the same card, so you can't do Discover to Discover. You can't do Chase to Chase. But you can do Discover to Chase and Chase to Discovery. They don't swap those cards out right. If you get a new one, then you do the balance transfer of that existing credit to the new credit card that buys you minimum one year. Then when you get that new job.

That new job, the income then comes. You don't want to pay down those cards if you don't want to have a balance with a credit card, especially if you have a job, because I can kill you, because what's gonna happen. They're not going to arrest you if you don't pay, but I'm going to put a note on your account that you had a charge of. So if you try to get a loan tomorrow, they won't give you a loan. You see what I'm saying. So you want to make sure that you pay those cards out

as you want to pay those cards down. So number one, get a job. Number two trying to do a balance transfer. If you do a balance transfer, that would allow you to buy more time to pay the principal. You're attacking the principal. If you keep on paying your card, you are simply paying the interest the balance transfer. Because not charging your interest, you are paying down the principle, which

is what kills a card off. That's what you want to do from this Just when you drop this phone, just google balance transfer cards, see the ones that you apply. Just go for them. Okay, okay, thank you so much. No, just just want one more question.

Just do a balance transfer. The card are going to get its own You're gonna close because the chase and discover what your first cards, so you get you get your length of time bonus with the old cards. This new balance transfer card when you when you are done, you can close them if you want to. So that means if I have a chase, right and I move it to this new card, this new card says for the next twelve months you have to pay interest. Fine, if I move to this new card twelve months, I'm

able to pay down the card. I can close it. I can do that. I don't advise you do, but you can close the car. It will it will hurt you less than if you close the old cheese cut because the old cheese card is giving you your length of service points. See what I'm saying. Yes, but the job, the new job is very important. I know what depends on the job, right, So you want to get a job that's going to pay you income. That's how you're essentially going to pay down and also qualify for that

new card. Very important. Thank you so much, Thank you. You have a good one here, all right, Paradise real quick? Are you still there to fire? Run down the space, Paradise? Not ready to speak? Why online? Oh okay? What's yeah?

I'm that's worrying me. But if you have an income, fantastic, they're gonna ask you what in what's your income? You can't be saying stipend because it won't really It might even give your card a lower card one thousand or so. So if you get a job, because once you have the job, you can, it's gonna ask you what's your annual income? Then you're just gonna quote what you think

you're gonna make annually from that job. That gives you a more a higher credit limit that you can move the entire card, won't it will make sense to having a new card and just moved into five percent of the new car. We're still thinking some five percent on your car. That's that's too much work. Yeah, so step by step for him? Thanks, Yeah, crazy knows Like you said, CS, go to crays. I think they have they have lower aprs. All things been equal? Yeah, do bay? What's up? Is

that too? Big? Hair fortune? Here for tune? How are you doing? Do it? Do it? Hair fortune? Yeah?

to get a credit card. They have we have consumer loans, Yes we have personal loans. Yes you have badgerator, but credit cards for some mission really gone around. So yes, I agree with you that my space is if you are just Nigerian business difficult to follow. But it's the same principle that the Nigerian credit card companies use. So where I put I put three or them, I'm gonna go back to them. I put three of them up. The Credit Tragistry CRC Credit Bureau, my good friend, is

the first central credit bureau. It's the same principles of pay on time, keep your DT I know, don't have a negative impact on your score. It's the same principle. So what is Nigeria, what I is Canada, what is the UK or the US? Is the same principles they're going to use. It's just differently just going to be how available do we have those these cards in Nigeria when you compare them to other places. But the same thing.

And again remember that many people what I'm talking to literally for the Nigers that have Jackpad that go from Nigeria to Canada and then say think because we have no credit cards in Nigeria, Okay, I'm gonna save money that I go credit card. That's a big miss. It will make you know, like I'm saying here, get a card if possibly your first month, and how I get a secure credit card. It counts ten percent towards your score. That's the point of trying to make across. So again,

the things important you can get a card there. You can. It works in Nigeria. Many people use their credit cards in Nigeria that they got abroad. It works. So it's now a global village. If you can get credits in Canada to do this in Nigeria, that's a hack or that's a hack. I know people in Nigeria that use their US credit cards here in Nigeria not to pay for gas, but to pay for things in niger to buy pay for goods coming and to clear things out,

all that kind of stuff that they're pa internationally. It works. So it's good to know the principles why you want to have a good credits care. Yeah, but your point is valid. I take it into your point is valid. So to your other points you are saying about loans and all that, Yes, I hear you. Maybe we do it bace on how to do personal loan. See, it's the same thing. It's just how do you do it right?

One thing I will just say one thing. I'll just say one thing for it for you is nigs don't understand what APR means and the difference between APR and interest rate. Nigans will say, what's the interest rate should be? Saying what's the APR. APR means the annual percentage rate. Why is it important? Because in Nigeria, most times when you go to the bank, they'll tell you we're going to give you a loan at five percent interest rate.

You should always ask the banker, Okay, what is the APR on this loan, not what is the interest rate? The interest rate just gives you the interest. But the cost of the loan is the APR. Because why in Nia they add management fee, they add legal fee, they add all these things onto the loan. So for Nigeria, APR is very very important, not interest rate. In America, they don't have a lot of fees. So if they tell your interested to four percent, highest APR might be

four point five or four point two. Boy, Nigeria get interest rate for five percent and APR are ten percent. It's possible they will add legal management, they will add all these things. Yeah, life they add a rating and so, and how you compare. You don't compare interest rates with bank A and bank B. You compare APR with bank A and bank B. So that's one thing I will say for lending Nigeria, ask them about the APR, not the interest rate, Always ask them again. Number two, if

you can pay down without penalty. So penalty means if you're borrowing from Nigerian bank and you say four year loan, if you come back with money of two years, would you pay any penalty? Ask them about that too, So that way you are giving yourself a call option to say and want of closest loan down without penalty. Very important. Find out from them if the loans go up, we might not also go up there and I'll tell you it's yes. Is there a cap, is there a barrier?

Find out all those things because Nigerian, London and the US then is very very different, very very America has no recourt loans. So if you go buy a house and you can't pay, you give them the key, you go away. Hire they will mess up your credit report. If you buy a car, you can't pay for the car, you drive the car to their office, pack the car, you go away. Nigeria is different. If you can't pay that loan, they'll go after your farm. They can't go

after your farm, they'll go after your private jet. To just be big. There's no there's always a recost them. So all times are a bit different, but it's the same principle in terms of how those loans work. Defends that's going to be how it is operationalized. But excellent question. Thank you very much. They're welcome, appreciate you. All right, guys, Look we'll call all the questions. You guys have all been welfared today with issues about credits managing debts. Let

me just talk by managing there for less you guys go. So, if you want to manage your debt, very very simple process. Number one, list all your debts. List all your debt number one. Number two, try to attach the cost of that debt. It was the interest rate. Like I said, APR. Get the APR world to debt. So you have three credit cards. List the three credit cards, List the three APR. Start to pay the credit card with the highest APR first, not one with the highest balance. Pay the highest APR first.

If you owe two cards one is ten thousand, one is five thousand, to one has a high APR, pay the higher APR down first. That one costs you more when you pay it down. Take the excess money and started to pay the second one. Then pay the head on. That's how you want to do it. Pay the highest APR first, before you go to the highest amount. The

amount doesn't matter as much as the APR. That's how you wants to manage your debts, right, Don't take debt you don't you can't pay back, and only borrow interest bearing debt to pay income generating activities. Say it again, Only borrow interest bearing debt to pay or to buy income generating opportunities. So that means, don't use your credit card to go for holiday. I know it sounds like that's why it's supposed to be used for No use

your credit card to pay for the holiday. Because you have cash in your debit card, then your account you can clean up immediately. But use your credit card to get the points. You don't use your credit card to go for holiday. That's using an interest bearing debt for a non income generating activity. Don't ever do that. Only use your credit card to do transactions that you can pay back or can generate income for you tomorrow. All right, folks, on that note, we're gonna call it today. Thank you

guys so much to listen to me. Let's go what the super Bowl and be the best team or the team with the Nigerians when that's how I put it right. I see you guys next week.

leader in a stock market and all that. So be here next week when we do when we have him online, and of course you guys be blessed as usual. All right, folks, I'll see you next week. Let's go to the super Bowl. You guys take care of and yeah.

forget about it, man, They're not cars. They're not cars on the road. No cars on the road. I was watching super Bowl, you know, and I just posted an article today the economics of Super Bowl. It's crazy, you know, Like we talked Deity December, but this is the real derty December. This is just one game. An advert is seven to ten million dollars. But just place an ad. You see what the local governments are going to earn. Yeah, I can give it the I can give you the post.

What the local governments in the Bay Area are going to earn from just this Super Bowl commune to them. So what they've done is that they've taken a sports game and they've turned it into economics. You look at the San Francisco is going to end. This is the local government to San Francisco to end one hundred and ten seven million dollars. San Francisco, San Jose twenty nine million, dollars,

Santa Clara seventeen, Oakland nine million. This is just money that the guys are gonna pay the local government you're talking about. The super Bowl generally had one point two five billion last year in Louisiana. Last year in Louisiana, they're gonna see a research on basketball. Start bringing bigs for you like you guys. You guys have you guys have Series seven Worlds season. You don't have Super Bowl.

So let's leave that matter. Arsenal, Come on, Arsenal game versus versus Chelsea will give you guys more than than this. When I'm talking, all right, my life talks. Have a gonna ticket, man, Love you