Becoming Entrefied

ENT 59: 1 Highly Effective, Easy Way to Improve Your Credit Score Drastically.

February 08, 2020 Patrick Hughes Episode 59
Becoming Entrefied
ENT 59: 1 Highly Effective, Easy Way to Improve Your Credit Score Drastically.
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Becoming Entrefied
ENT 59: 1 Highly Effective, Easy Way to Improve Your Credit Score Drastically.
Feb 08, 2020 Episode 59
Patrick Hughes

Credit is a powerful double-edged sword. In business and in your personal life, you need to use it wisely. It’s also important to manage the score and we will discuss one massively transformative way to increase it.

Show Notes Transcript

Credit is a powerful double-edged sword. In business and in your personal life, you need to use it wisely. It’s also important to manage the score and we will discuss one massively transformative way to increase it.

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Are you ready to be entre vied? Let's break free of the life we're told to live, create freedom and well, by adding value to others live, challenge traditions, challenge authority and get onto ified. Hey, guys, Happy Saturday. Hope you had a great week. Is Saturday February the eight, right? Yeah. Eight always lose track of the actual dates as far as numbers, but yeah, Daisy Eighth. And I hope you had a great month. Just want to say to all the listeners out there. Thanks for listening. They start subscribing to the show. You know, we're playing in 24 countries now. We added a new country a couple days ago. It's pretty awesome. It maybe 25 haven't checked the metrics, but that's exciting. So anyway, hit that. Like, subscribe, but or not like, it does subscribe and follow button. Make sure you guys follow the show. You know, we get new content every day. Um and so today we're gonna be talking about one highly effective, easy way to improve your credit score drastically. It may be like, Well, there's, you know, I've heard of different methods. You could do it. To be honest, I'm not like super verse on all the methods of credit credit score increasing out there. But I'm sure there's a lot. There's a lot of use to tell you. I know Dave Ramsey is one of those guys, but he does. You just don't use it all. And I can't take a summer approach. But you know, today, before I dive into that, just want to say, if you're new listener, you know, on Friday here's what we're about. We're about getting you that next step in your business. You know, whether your brain knew are a veteran. What is that next step? Marketing, sales. You know what you doing? What do you need help with to get that next step And mindset is one of the biggest things we target here because, really, that before you take any action or any steps, it all comes down to your mindset. You know, because if you don't believe you can do something, what's the point in taking action? If you don't believe you can win a race, you know if if you're gonna go join a race, uh, let's say you're gonna go to a five K a three mile run and if you don't believe you can do it and you give up a mile and 1/2 way through. Does your mindset was just never there in the first place? You know, there's no point doing it. So, Mon said, is probably the most important aspect of your life, and it hinders Maur Well, it affects more than just business affects your life, your health, everything you wealth, self everything. So just digging into credit because that's something here. Recently, I've been, um, facing off with this credit. You know, everybody's got ugly debts. And, man, I'm getting rid of all my ugly deaths this year. I'm gonna be just killed my dad. So I'm gonna be debt free by this year. Projected to be probably August completely different. That's pretty awesome, considering that consumer debt destroyed me. So in the same boat man it is. It is brutal, you know, you always pay in and and the bills like your minimum pains 30 bucks, but your interest is 21 you like. Do what? It's crazy. It's it's it's It's probably one legal way to rob somebody every month and his atrocious. So anyway, enough of my rant there credit is a powerful, double edged sword in business, and in your personal life, you need to use it wisely. That's an understatement. Use credit wisely, and I'm not saying play it safe, saying Use it wisely because I don't believe if you play it safe your whole life, you're never gonna win anything, Those guys who play it safe and sports or anything else, they may win 50 years from now, but I don't want to be a millionaire getting out of my Lamborghini into my will chair. But what's fun about they 80 sitting on the beach, sipping my margarita. Oh, I gotta check my diabetes. My blood pressure may be a little low. Who, What's a retire like that? No. Do this, people? Mark Zuckerberg became a billionaire when he was 20. Like three. It's totally possible he didn't come from wealthy parents and create a Facebook. It's totally, completely possible. So and a lot of you people right now are probably thinking there's no what you know what? No, that's not possible for me. None of my situation, but that's where my mindset comes into play. You're already counting yourself out of the three mile run before we even start before you even start now, you may have some pretty terrible deaths or whatever, but trust me, don't count yourself out. Doesn't matter how bad it gets for you. Your your your brain is designed to adapt and overcome. You just have to fuel it. You gotta feed it, right? You gotta keep it positive. Got to keep it going. So anyway, the grass, um it's also important to manage your credit score. Obviously, that's what you know. Banks give you money free money. Come on. It's not free money. You gotta pay back with interest, um, to manage the score. It's important, man to score, and we'll discuss one way to increase it. It's, in my opinion, the easiest way to fix all your credit issues is one easy solution. And you probably think I was gonna say you don't use it. No, I'm not going to say that. You'll see. You'll see. So just kind of want to give you guys some personal story here. You know, I've had personal loans, business loans, you know, business, credit cards, regular credit cards. I'm gonna tell you guys, here's Here's here is the one highly effective easy way to improve your credit score. Do not under any circumstance, hold up. We say, Do not under any circumstance by consumer items with credit ever. Okay, this is what burned me to death. Maybe, like Wow, you totally made that dramatic. It's because it is guys. I want you to the emphasis of how bad it is to buy consumer items with credit. I could I can't emphasize enough. It's what put me in the hole for years, and it's what can put you in the hole. You don't want to be in the hole. It's not a fun place to be. So what? What is consumerism and what is consumer credit? Okay, here's what it is. Let's say you go to Wal Mart. You bought some groceries. You pay it off in the month. You've been doing that for a while, right? 01 day you have a flat tire. Okay, you go by. You go by tire with your credit card, you buy your groceries and your groceries were already loaded on there. So you go shoes and a critic and your tire loaded on your credit card. You don't make enough in your paycheck to cover both. So you let that laps to the next month? You buy groceries, you buy groceries, you pay. It's, um Oh, guess what? Another problem with your car. Your car has a radiated blowout. Okay, now you're down Groceries in the radiator. Alright, Now you dont groceries, attire, a radiator, and your credit is building. And then and then you start to let that slip a month later to you become okay with all of it. And you just let it ride to the next bill, You'd start paying the minimum a little extra A year later. You have almost maxed out your card. They send you a credit increase, Okay? What do you do with that credit increase? You use it. Use probably every bit of it. Next thing you know it you're $10,000 credit card debt. It's all consumerism crap. It's all stuff that it's not really useful. It's not assets. They're all liabilities. You know, you've you've bought cars, computer screens, laptops, stupid stuff you don't need and your 10,000 in the hole. That's the story of consumerist IQ guarding the sword. Consumer riz um, consumer debt. Geez, consumer debt. I can't even English. Um, that's what happens, guys. That's how it happens. So don't get caught in that. And here's how you don't get caught in that You only use credit to buy assets to buy things that are going to pay Maur than the interest on your credit card. So let's say you take a loan out. Your loan is, I don't know, 10% interest. Okay, The only way you could ever justify taking a 10 person interest loan out is if you're gonna make 15% of profits, 20% of profits. Because if it's anything less than that, you it's it's not worth it. So let's look at real estate. For example. I bought a house about 233 years ago with the 1000 bucks. That was it. It was a $200,000 house in Nashville. Put $1000 that was it. I mean, I haggled like a crazy man. The first asking price was 12 grand. I haggled it down to like six, and I threatened to back out because I had a builder's card in my pocket. Because the house was being built. Brand new had a builder's card, so I could have backed out for free. I didn't. I threatened to back out when we got almost 90% of the way through the process, because I knew I could get some leverage with how far we had gotten. And I knew my credit score was great. It was perfect. I knew my money was there. I knew everything was good, but I threatened him with it and they have those down some more. So next thing you know, I paid $1000 down. They cut off a lot of extra fees, everything, and I walked away with a house that is actually below market value. I could wring it out, make a profit, all because I'm telling you guys, I'm using this as an example, because it is an asset. If I rent it to somebody now, let's say I'm living in it and I'm paying 1000 bucks a month in rent. It is a liability until I rent this house out to someone else and they're paying my bill For me, it is a liability, not an asset. So it's a bad investment until you move out now that saying I'm getting prepared to buy more houses because when I buy those new houses, I'll just move into the other house, rent this one out, make a profit, then it's an asset. And now that a friend you know Jeff, he's very, very good that stuff. I'm not gonna talk about what he does, but that's what he does. You know, I'll let him talk for herself, but that's how I do it. I'm not as big into real saves. Jeff is it's not necessary my cup of tea, cause I don't like really Honestly, I don't I'm scared to do housework like it's like wood and like tearing walls. They'll like it just scares the crap out of me. And, you know, I get that's what contractors before. But like, I don't know, Maybe I'm just like I don't know enough myself to be like Okay, yeah, that's how you rip a wall down. You know, you don't wanna be going investing in something that you are like, Ah, you know, See, my my thing is, I like to use the leverage of loans and and credit all that to buy assets. They go up in value. One example. I'm a big day trader I've done a lot of options trading in my life. Day trading are frustrating. Um, I'd say I'm decent at it, and I use margin a lot of times. So basically, I'll put $25,000 in. I'll get a margin match one, the one and I'll have $50,000 you can just use that. Get 1% of that. That's Ah, 500 bucks, right? I can't math tonight, but yeah, I think it's a $500. You know, you just make $500 here and there, just 1% really easy, especially with earnings plays and, ah, you know, options. I mean, there it's stupid what you can do with leverage of debt. It's It's a tool that can be used, but you have to kind of be really good at knowing what you're doing. Like with real estate or stocks. You don't want to just go and buy something because you have the credit available, you know, and like especially like things that are gonna depreciate. You have appreciating assets and depreciating. I'm gonna make episode on this later, but the depreciating at depreciating assets or stuff like your car, your car is not going to go up in value. I don't care how much you love your car. You put rims on it, you pimp it out, you jack it up, it's gonna go down in value. It's gonna be worth 20 grand today. Five years, probably 10 grand. And it's not a good investment. I don't care what anybody says. It's just not unless you restore older cars and flip him. That's really the only chance you got. So you had to be mindful of that. So when you're signing a six year lease for your car, you've got to know that you probably just screwed yourself for six years and hindered your cash flow considerably. And then you throw on the interest on the pile of payments we're gonna have for the next six years of your life, and then you're really in the hole again. So that's a consumer item. If your car works fine, keep it. If you have the cash to buy a new car, go buy a new car. Well, you could say Well, Patrick, my car, bro, I don't have enough cash to cover it. Okay, be smart. Doo doo diligence. If you absolutely have to get a car and you don't have any money. All you have is credit, but you clearly need a way to get around to your business, to work whatever. Just be smart about it. You know, if you have to go in the hole, don't go in the hole on groceries and stupid stuff that you can pay for out of your pocket. And I know there's reward cars. I'm kind of rambling on here, but I know there's reward cards out there and stuff like that that have points. But you have to look at yourself. Are you disciplined enough to keep the threshold below? I don't know, 2025% or play the card off every single month. Are you really dad disciplined? And if you're not, don't even don't even do it. Don't just cut it up. Throw in the trash because in the end you don't really need credit. You don't. You can get by. I know a lady. She works for Dave Ramsey at Ramsey Solutions. She bought a $400,000 house by herself. She's a single woman with just using a I forgot what she called it, but basically you don't have credit. It's just alone with zero credit. She's never had credit in her life. It's weird, I know. And this lady is just killing. It may see us tons of cash on hand, and it's just like, Wow, Wow, you know, that's it's impressive and it's possible to go the Dave Ramsey route. It's a little slower from a little too slow for me, but you know it's possible, but I think you should use it wisely and responsibly. But I'm gonna repeat it. Do not buy consumerist IQ consumer debt. Just don't do it. Don't do it. Don't use it. Do not use it under any temptation. Do not use it. I don't care about those airline points. I think it's like 70 80% of people never use those airline points. I think it's very high rate of people that never redeem him. But my main point is, and I'm going over today. Guys kind of ranting. But my main point is there's There was this commercial I saw it was, ah, things like credit karma or something, and it would show somebody living in a crappy house with their spouse, and they had the credit score of like 400. And when they looked on their phone and they were like, Man, I wish I could get out of this house And the lady drags the score a ticker to the right toe like 600 their house gets a little better. And then she drags the credit score ticket to the max number like 800 and they live in like a super fancy house. Drive nice cars and look pretty. That is a terrible commercial, because what's at it what's that is inciting is you, Max, your cards basically toe by consumer crap like couches, TV's rugs, houses that's all consumer stuff. Unless you're putting into use and wringing it out, your Airbnb ing it, you're blowing your money out your but you might as well just open your window and just throw it out the window. That, I mean, that's what you're doing. So don't listen to commercials like that. They're so ignorant and stupid just just just to clarify that next time he's that commercial, think out dumb. It is to say, if your credit goes up, you're gonna buy nicer things. Do not ever do that. Okay? Do not ever do that. That's my thoughts. And I believe truly believe there are millions of people, probably billions, that will agree with that advice. Don't be average the average person, a cz, the average person's If Bice will tell you. Oh, man, just get your points. Get your points. I guarantee you they're swimming in debt to don't listen to that. Think of an opportunity you can right now. Real estate buying out of business. Business acquisition. Launching a new business. You know who knows? But text me. All right. Text me. 6154318389 Text me before you make some stupid purchase on a car. You know, I don't know a big flat screen TV. Don't Don't do that. Use that money instead to create assets for you, you know? So text me. 6154318389 And hopefully I can walk you off the ledge of consumer debt. Hope that helps guys know I was a little negative. Rantie today apologized for that. But I hope you enjoyed the show. I hope it helps somebody. I really do hope that's help somebody before they walk into the same trap that I did years ago. Don't do it, all right. I know this has been a little bit longer, but thanks for listening. Thanks for seeing along. Have a great day and get on to five. Are you feeling entre fied yet? We hope so. For more information and news updates, check us out at www dot entre five dot com for contact Patrick directly on facebook dot com slash patrick Hughes 9000