On the show today we have… Protecting & Enhancing Your Credit with Joseph Kidworth!
Show notes for Protecting & Enhancing Your Credit with Joseph Kidworth!
The Vantastic Life is…
– is in Lake Chelan WA!
Keep your credit healthy, which is our topic today with Joseph Kidworth, who’s president and CEO of the Kidworth Group here in the PNW.
The credit FBI! 🙂
We are going to get an update today.
Also, make sure to checkout seattleinvestorsclub.com/98 for a background on Joseph Kidworth and tons of great info.
What states do you work in?
We serve the entire country, and we speak several languages to help all kinds of people. Chinese, Spanish, Russian, German, Italian, and we’d like to add some more. This is because people feel more comfortable speaking their own language.
We want to focus on the US and help people to improve their credit report.
Right now is a great time to partner with someone like Joseph if you’re a real estate professional. Be of service and help people.
What is your assignment of what’s going on?
It’s a temping time to accept financing assistance, but we don’t know how it will effect credit.
I wasn’t expecting anything like this to happen. But we have to have a plan B. In regards to financing… they have a Covid 19 program. Just call the bank and ask for their Covid program.
Some credit cards are reducing the payments for 90 days, or interest only. You just have to call and ask if you qualify for the programs.
It’s on a case by case bases.
You need a roof above your head and food on your table. And you might need to take a credit hit, but we can repair it later.
That’s a question that I had for you. If people cannot pay for everything… taking advantage of the forbearance assistance that’s out there… they say they aren’t going to report it on your credit report, but we don’t think that will be true.
They will get us somewhere else.
I don’t think we want to talk about mortgage forbearance. But is there a strategy right now if you can’t pay it all off. Is there a strategy?
In a normal world you want to maintaining your cards under 25%, or under 7% if you want it to be really good.
If you do have some savings and don’t need to utilize any of these programs… don’t use them. Just do the minimum payment for now. Then when things get back to normal you can to the regular payment.
Use your cards just enough to get by.
You want to be careful to not get yourself into debt that will be hard to get out of.
Eventually things will get back to normal.
If you need to buy a car… and need to pay down your cards to boost your credit score… do that. But right now it’s uncertain what’s down the road.
Something that I’m wondering… if you have mortgages, auto loans, credit cards, and other loans… there probably something you can plug into… but is there a pecking order for paying bills?
The good mortgage lenders out there will tell you to not take the forbearance if you don’t need to.
Your home is the first priority. Then food, so transportation. If you can’t pay your credit cards because of your mortgage, food, and transportation… you might need to not pay it and take a hit.
I have spoken with Capital One and they will reduce the minimum payment to zero, but you have to call each month. Just don’t use the card because you will have a huge monthly bill.
Right. Do we know… are they allowed to do a repo these days?
The banks are functioning like any normal day. But they have these programs for people struggling.
The banks are playing it a little bit smarter to help people and keep them on file. Rather than repossessing the car now and having to resell it.
Are they saying anything about credit reporting as it related to these types of things?
Banks are not reporting as a late payment. For the banks that I’ve spoken to.
You should call your bank to confirm this.
I have spoken with a lot of the bigger banks, and they have said that it will not effect your credit.
If you recently got the car you’d be paying interest only, so that’s a bummer.
I talked with Kia and they said they’re helping people that have lost their jobs by not requiring payments for 6 months.
Is there a way to add paying rent to their credit report?
Yes, you can add your rent and utility bills into your credit report.
If you’re paying your rent and utilities right now would that be a way of building your credit right now?
Really, it’s not much. Because one ding on not paying a credit card bill will not be helped much by paying your utility bills or rent.
You also need to think about the length of the line of credit. How long have you had it.
A lot of real estate investors are maxing out their credit lines to have cash available. What do you think about it?
There are pluses and minuses.
If you max out your credit, you’re going to take a credit hit. Anything over 25% of your total credit limit will have a negative hit on your credit score.
The credit companies can’t tell if you spend your money on a fixer upper or at Best Buy on a TV. So it will be a hit either way.
You could borrow money from your credit card, and add an auto payment back to your credit card. You would take a hit on your credit and have a big interest payment, but you would have cash on hand.
If you want to invest… as soon as you run the credit card through the system and it goes over the 25% you will have a drop in your score.
One more point…
If you do utilize your credit card now, it will not show up next month. It will show up on the following month.
A normal cycle is very 60 days.
How does someone do a rapid rescoring?
You just have to have proof that it’s been repaid, and have your mortgage broker do a rapid rescoring.
What mistakes do you think people will make?
The main key is to inform yourself. Don’t hide from the information.
Watch the news at least once a week to inform yourself.
The biggest mistake is to be completely ignorant.
Maxing out your credit cards hoping that when things get back to normal you can pay them off.
Everyone needs to make those minimum balances on the credit cards.
Let me be clear for the people that we probably have listening that are maxing their credit lines to be ready for opportunities.
And staying up to date with our weekly online meetup/mastermind.
Tell us one more time. Opening up our credit lines larger and not using them is going to take a hit on us?
Yes, they will pull a hard inquiry and it’s going to be a hit on your credit.
What about having the cash available over the credit score?
They just need to be wise about it. It can trigger something really bad.
Is there a way to set it up to where you have cash and you’re using your credit card. Is there a way to automatically pay it down to 25% of the balance?
Each bank is a little different. But you can.
So you can’t say… pay 75% of my balance off.
So shouldn’t you pay or only use the first 25% of our cards?
You should keep a balance on your credit cards because if you’re paying them down every month… they might close them down.
Is there a pecking order as which loans hurt your credit score worse than others?
For those of you that might have savings but their credit is messed up… it is a great time to Enhancing Your Credit your credit. Because you will get great deals once we are done with this.
We have medical collections where HIPPA will protect you. These are easier.
Credit cards. The system is getting overwhelmed at the moment. And this will work in our favor. You just need to call the professionals because they know what they are doing.
If your car breaks down but you’re not a mechanic… would you get a manual and do it yourself? Same thing with fixing your credit. We can do everything ourselves, but what’s the best course of action…
Joseph and the Kidworth Group are here to help us now! This is all good information!
Credit cards have to product multiple documents. Public records… we utilize the loopholes to get these things removed and Enhancing Your Credit.
I have a client that all 3 credit bureaus deleted his chapter 13. It’s on my website.
Don’t wait to do this guys! Manage the process now. Let Joseph and his team help you Enhancing Your Credit now.
Do you have any type of webinar coming up? A lot of us on the call are real estate professionals, and what a great person to work with right now!
We are going to have to wrap it up today. Do you have a webinar coming up?
Tomorrow we do have a webinar that’s Free on Facebook. Enhancing Your Credit by liking The Kidworth Group on Facebook. It’s a weekly thing about how to utilize your credit.
We will connect with Joseph offline and make sure this gets posted to our Facebook page. We invite you all to join us on our Seattle Investors Club Facebook group.
Also, join us on Thursday’s at 11:30am PST for our weekly meetup/mastermind at https://meetup.com/seattleinvestorsclub.
Joseph, thank you so much!!!
Please make sure that you join our Seattle Investors Club Facebook Group.