💬 Show Notes
In this exciting episode of Credit Boot Camp, we kick off Week 1 with a comprehensive introduction to the foundational principles of credit. Join us as we explore essential topics such as understanding credit scores, payment history, credit utilization, and more. Whether you're a seasoned member or new to the community, this episode is packed with valuable insights to help you navigate the world of credit effectively. Don't miss out on the opportunity to enhance your financial literacy and prepare for more advanced discussions in the weeks to come!
Chapters:
(00:00) Credit Boot Camp is something that every Credit Academy member needs to take
(05:26) All right, so if you guys are ready. Okay, we are. We are getting started, y'all. I'm ready. I
(06:06) Today we are going to discuss the fundamentals of our credit scores
(06:48) It is important for everyone to understand how our credit scores are broken down
(10:10) Payment history is the, the largest factor of our credit score
(16:55) The severity of a late payment affects your credit profile most significantly
(20:18) There is a hierarchy to late payments based on what type of account it is
(21:14) The more on time payments in your payment bank, the more resilient your credit
(23:30) When you think of credit utilization, you are only thinking of active credit cards
(25:05) The amount owed section affects your credit utilization, right?
(27:36) The proportion of loan balances to original amounts is a common credit denial reason
(32:21) Outstanding balances on closed accounts are always wrong, guys
(38:59) If you are applying for anything, reduce your utilization to between 1 and 3%
(44:04) When your utilization reports above 3.9%, you will notice a change in your credit score
(47:15) If any credit card that you have reporting past 48.9%, that card is viewed as maxed out
(52:24) The best thing that you can do to complement a repair process is this
(57:39) Credit academy helps you repair your credit and build your credit
(01:00:16) Credit age is 15 of our scores. Every account on your credit report has a credit age
(01:05:20) When it comes to increase, inquiries are not nearly as important as most people deem
(01:10:25) Last, last category is credit mix, which again, will affect your borrowing power
(01:13:02) You should seek to have the foundational level of a credit profile
(01:17:25) If you have loans on your credit report that have late payments, fix them
(01:24:02) This is the perfect foundation to build on for your credit profile
(01:25:06) If you have bad credit, then you may not qualify for a traditional credit card
(01:27:39) The best thing you can do is to double back with a subprime card
(01:30:54) The next level after starter cards are mid tier cars
(01:35:13) Next week we'll go through your credit reports to discuss different issues
(01:40:14) Credit Academy members are not leaving 2025 with bad credit