Hi everyone. It's me Jazzy Mac and welcome back to my channel. Thank you to everyone that has
liked, shared, and subscribed my content i'm so grateful for you and because i'm so grateful
i have a very very special treat in store for you guys. We're going to talk about three very
specific things about credit. First we're going to get into how you actually pull your credit report
and how you actually can predict what your future credit score is going to be that's
a trick nobody knows about next we're going to talk about what happens when you pay a collection
that is a question everybody wants to know that's been asking me so we're going to see exactly what
happens when you pay a collection and why i tell you not to pay collections that are on your credit
report when you're trying to improve your score and lastly as a special bonus i'm going to talk to
you guys about how to build or rebuild credit if your score has been ruined so let's hop right in
all right guys as i've said i'm so excited to talk about this content because i've been getting a ton
of questions on it but for those of you that have put in the work you guys have used my templates
i'm hearing so many good reports about how you sent off your letters your credit scores have been
shooting up so kudos to everybody that used the template and put in the work and now your credit
scores are going from the 400s to 567. some of you guys have snuck into the 800 club so i'm really
excited about that and i'll actually show you my credit scores as well so as i said the first thing
we're going to do is just talk about how to pull your credit and how to predict what your credit is
going to be so first of all i always recommend that you guys use a credible credit reporting
source now a lot of people like to use things like credit karma because you know it's free
and it's kind of like just a familiar name but i like to get my information from the horse's mouth
which means i like to go to the actual credit bureau website in order to pull that information
now there are two sites that i'm going to show you just so you know experian equifax and transunion
all have um a credit website that you can access my personal favorite and what i'm subscribed to
is experience three credit bureau monitoring and so i use experian and my husband uses privacy card
privacy guard is also a very credible source to use when you're wanting to look at your three
credit reports and your scores and thirdly as just kind of an optional way of checking your score
is to go to annualcreditreport.com now the only thing i don't like about them although they are
very very reliable is that they don't show you your scores you only get to see um as far as the
free part of it you only get to see your reports but not your scores so let's check out some scores
and let's talk about different things that you can do to improve your score and to predict what your
score is going to be in the future so let's jump right in oh yeah shout out to everybody that told
me i was ranking like up there with dave ramsey we have different opinions on things but i like dave
ramsey so that was kind of a compliment shout out to youtube and shout out to my family out
there that told me that okay so first and foremost let me just clear up some confusion there are some
people that were trolling my page and this is why i love you guys so much you're my family um there
were people trolling my page saying that i didn't actually have a good credit score and they said
things like i was lying about my credit score and i wasn't in the 800 club but i just want to show
you my actual scores here you can see my current score as of august 22nd it is 8 28 for experian
and for equifax let's just check it out see what equifax is looking like now i'm going to go to
the one from the 11th because i haven't pulled any fresh scores yet but it's 8 15 for equifax
nice and for transunion as of the 11 just a few days ago it's 807 so i just wanted to show you
that i am indeed in the 800 club i don't just blow a bunch of smoke of anybody's bottoms
so now we we've talked about wanting to see what happens when you pay a collection and the reason
why i wanted to show this to you guys is because there's a lot of common misconceptions that
if you pay your collections off it's going to boost your credit now by no way shape or form am i
saying to not pay your debts if your debts haven't made it to collections please pay your debts
so your credit won't be affected however if there is a collection item that you have paid
off on your credit report you want to aim to get that actual collection account removed or if
you're not able to do a paid for delete that's the only other thing that i would recommend
is pay for a delete if you want to get something removed always get it in writing but the free way
is to dispute it and i'm going to show you why that matters so let's say i'm at an 828 right now
and these options say this is how my credit is going to be affected if i forget to pay a bill
don't pay any declare a bankruptcy whatever but what if i have an account that goes into
collections let's say that account is three thousand dollars it's a medical bill do you see
how my score decreases by 100 points is that not crazy so let's see what would happen now that this
is on my credit score on my credit report let's say that i'm under the misconception that if i
pay this amount down it's going to start raising my credit so let's say we go from 3 000
to me paying it down to 1 000. let's see if that improves my credit
oh no it's still a 7 28 i'm still 100 points lower even though i just made 2 000 in payments wow why
did that happen well it happened because once a collection is on your credit report no matter what
the amount is it's like a stain so even as you pay it down it does not increase the score and this is
from experience website guys and i just want to show you here's something else from their website
that says how do collections affect credit now this part is so important while it's natural to
assume that paying or settling a collection account will lead to a higher credit score
that is not always the case as with most questions regarding credit scores the answer to whether
paying a collection is helpful is it depends so if you go on reading will my credit complete if
i pay a collection account basically it tells you that new credit scoring models
ignore collections that have a zero balance that's true for the recent versions of credit scores 509
and the vantage scores however if we scroll on down it says when you pay or settle a
collection it's update to reflect the balance it may improve if you're using fico 9 however however
because older scoring models do not ignore paid collections scores generated by these older models
will not improve people as it goes on it says this is important because lenders especially mortgage
lenders use older versions of the credit scoring models this means despite it being a good idea
to pay or settle a collection a higher credit score may not be the result if you do that and
people if you're trying to buy a house if you're purchasing a car even applying for a credit card
most of those creditors and lenders are going to be using an older model that means they do
not ignore paid collections that means that they count a paid collection as a derogatory item
so going back to what they said it's not something that is going to magically
improve your credit score scores generated by these older models will not improve i want you
to hear that will not improve so let's say we got this thousand dollars on here that's why i
created the template for you guys so that if you say well i got it paid down to a hundred dollars
from 5 000 and it's still not improving well now you see why i've just shown you that the
credit score simulator does not care about how much you paid that down it didn't change your
score and it certainly didn't make it go up and that's why i told you guys to use my templates
to get those items removed from your credit report if you have a zero balance on that collection
account you can certainly dispute it off of there um if there was a collection agency that added
illegal collection few fees please make sure that you do your research and i've done the
work for you i've put it all together a template for what you say in order to get
those negative derogatory items removed especially collections now let's say i never had a collection
now my score is back at 8 28 okay but what happens if i miss a payment by 90 days oh we go from 828
to 693 ouch that hurts what happens if i declare bankruptcy i go from 8 28 to 548 well what happens
if like i just applied for new credit maybe well if i apply for new credit you can kind of play
around with this to kind of see how this is going to change your score so if i had two inquiries
that's telling me that it's going to go from 8 28 to 8 18 people i encourage you to play around with
this tool if you sign up for experience free trial um for three euro monitoring three credit bureau
monitoring it comes as part of the free trial but i i'm subscribed to it i have it every month
so this is how you predict your credit score this is how you predict what happens if you pay down
your credit card balance if you get another credit card if you consolidate your balances you can see
what your current score is and where it ends up so i want you to always think about these scores
when you're thinking about like what kind of payment history plan you're going to set up to
get your bills paid what a collection will do what a new credit card will do this is how you predict
very accurately how your credit score is going to change over time um you know as it gets
older so i want you to all use this and use it as a tool you know if you have let's say
20 000 in student loans you know that could be an 838 and once you pay that down to a thousand
you'll see that kind of changes and sometimes it can be a little iffy with student loans
because you know your interest rates vary and so sometimes this isn't one thousand percent
accurate but it gives you a good guess as to how that can change and because my score is so high me
having student loans it doesn't really like show me what it would look like if my score was lower
but this is just a great tool for you to have to see how your credit gets affected
over time so that's one of the secrets that i wanted to show you guys so that you can help
plan out your actual credit journey and i actually created a tracker for you guys and so that's a way
for you to also track your credit so yeah use that guys i hope that was helpful now the other thing
that we are going to talk about is how you build your credit now first and foremost i just want to
make sure everyone is aware of different ways that you can see your credit report
um of course by going to experian.com you can type in experiment.com and then
like google free trial and it'll take you to this page where you can actually sign up for a free
7-day trial so you want to make sure that you sign up for that trial or you can keep it and
switch to the monthly plan just so you make sure that you get all of these benefits like the credit
scores um you want to have a simulator which is what i just showed you another good website
is privacy guard i like them because they also have the three bureau reports and uh scoring
and they also have um those benefits for like the credit score simulator the calculator suite
credit information hotline so they've both got a lot of great tools they're really great to use
and it's only a dollar for a 14 day trial so hopefully that gives you some insight into
you know ways that you can monitor and plan your credit and then lastly i just wanted to break down
how your credit is calculated 35 of your credit is payment history and that's whether you made
payments on time whether you missed payments um the amount that you owe for all of your loans
your credit mix is going to be the different types of accounts that you have so whether or not you
have credit cards loan accounts mortgage accounts part accounts um that's what that credit means
and then the history how long have you had these accounts the age of the account and then new
credit is basically every time you apply for you know a new loan or you apply for a credit card
those inquiries that also plays a part in your credit score overall so i hope
that was helpful to show you guys um lastly i wanted to talk to you about ways that you can
pretty much um start building your credit and that's through a secured credit card if you just
google secured credit card um you're going to see a lot of sites that pop up but basically
let's just say we clicked on bank of america no they're not sponsoring this video i'm not
affiliated i'm just using them for illustration purposes um but it takes you to a secure credit
card website that talks about establishing strengthening and rebuilding your credit
and the way that works is you do a minimum security deposit of 300. you can pay it in the
branch or submit it online and that becomes your credit limit so whatever your deposit is is your
credit limit and what you also want to remember is it is a deposit so after one year they do give
you the money back right here which says deposit return and it shows you the interest rates um the
transfer fees and things of that nature but it's important because um some companies don't even do
um an actual credit pool so some people say well my credit is so bad i can't get a credit card well
people jazzy to the rescue just showed you that through a secured credit card even people with
horrible paying who don't have credit they can absolutely get a secure credit card make sure
it's secured meaning that a deposit is required um because that is for people that want to rebuild
credit or establish credit so there you go people um i really truly hope that that helped
um you know i've been getting tons and tons of questions about this type of stuff and pretty much
this is this is how you strengthen your credit so let me know if that makes sense please please
so people there you go there you have it that is everything that i know or everything that i can
share with you in little bits and pieces about how to build your credit rebuild your credit
how you predict your credit how you can estimate what it's going to be and why you shouldn't assume
that paying a collection is just going to boost your credit score we talked about that
i got the templates down below i want you guys to use those templates to get those derogatory
collection accounts off of your credit so i hope that helped if you found something
um interesting or like exciting like you learned something new in this video please give me a
like and subscribe please share this content everything that i do is for free and i want to
make sure i should give you this knowledge because i want you all to be better you guys are my family
so i gotta look up look out for you guys and you guys will look out for me so i appreciate you
and hopefully i come back soon because your girl is pregnant i am nine months today
and we're excited to be welcoming a baby boy into our youtube family so any tips that you have for
any new moms any new mom advice please let me know because i need all the advice that i can get
so thank you all for tuning in until the next time later