Hey guys Sean Mory joining you for another session of LenCred Credit Geek Q&A. Today we are talking specifically about credit monitoring and why this is important. If you are rolling your eyes or about to click that pause button or find a different video, bare with me give me three minutes of your time. This could change your ability to start the company that you are trying to get capital for right now. With that being said, first things first, get credit monitoring today if you do not already have it. Why? If you are even considering borrowing capital and you dont know what your credit is at already, you need to find out. Very simple reason why, you dont know what you dont know, as my good friend Dustin Wietzell would say. On top of that I have a client for instance that came to me about $100,000 in available personal credit card limits, between $60,000 to $70,000 in balances. Now the client needed to be at about 30% utilization for us to get him qualified for capital. The guy pays off his credit cards every single month.
You know what he did not know? That they only report once a month to the credit bureaus, so he would make the payment and start using the credit cards all over again before his balances even had a chance to reflect that he had been making these massive payoffs on $60,000 and $70,000 of debt. With a little bit of advisement from me and looking at his credit monitoring we were able to identify the reporting dates of his cards. Put together a strategic payment plan to have those payments he made to reflect accordingly with the credit bureaus then within 30 days I was able to get him funding. So if you want to be ahead of the curve and wait 30 or 45 days to even start trying to get your capital have credit monitoring setup and be monitoring it constantly. A lot of the paid serves will even offer notifications on your cell phone through text messages, emails, many ways to get that done.
Capital One offers free credit monitoring. Discover if you have a credit card with them, they will give you your FICO Score every single month with your statement. There are a multitude avenues and people are practically begging us to know what our credit looks like. Now on top of that it is also important to know is with credit monitoring it is not just about having it and waiting for alerts to just show up. You need to know which sections of your credit matter and why they matter. Why? Because if you are trying to go borrow money it can be the age of your credit history that could be causing you some issues and you do not know that. You could also be carrying to much personal debt and if you eliminate a little bit of it that will help. Maybe you just need to wait 3 or 4 months before you go to a lender and let some of the credit you have become established prior to making that next move. It is a simple as this, if you do not know why the banks are going to say yes or why they are going to say no. Then how can you prepare your credit to get yourself in the right position before you ever get started.
One final thing this isn’t something where we are telling you to do it this because we are credit nerds and we think it is important for us. My mother never had credit monitoring and I am sorry mom I am going to call you out here. She never had credit monitoring until about 5 years ago and guess what now she know as much about credit as half the bankers she goes and talks to. So she knows how to put herself in the right position for any of her personal borrowing. Think about if you can reflect and have that same empowerment on your ability to borrow for your business. Instead of having to call a banker or call me or call anybody to hope that we are going to be able to guide you, you will already know.
You will know what is going to matter the most and what does that give you guys, that gives you knowledge and knowledge is power. Do not go into this unarmed, make yourself educated on your credit, get credit monitoring, keep it open, and encourage everyone around you to do the same. Your personal credit is the most valuable personal asset you have. Want to know a little bit more about this topic, go to my Linkedin page and look up the blog article I wrote about three years ago on this, it is titled exactly that, and I imagine you will find out some more info. Thanks Guys.