Avoid These Credit REbuilding Mistakes! Rebuilding Credit in 2022 - YouTube
https://www.youtube.com/watch?v=KD3OF7T8MH4

Transcript:
(00:03) [Music] what's up youtube welcome back to the wallet monkey channel where we give you all the credit intel you need to grow your wallet today what i wanted to discuss and talk about is all the mistakes that i made trying to rebuild my credit right as you guys have been following along i went from a 460 to 760 credit score on the road to 800 right that's one of my personal goals now i don't know if i'll ever get there i don't know if i if i actually care um i like setting goals like that right when
(00:27) we set a goals we tend to achieve it more right we're constantly running polls on this channel and one of the big things that i know a lot of people are still focused on is rebuilding credit now i think i'm a poster boy example of this because i think i did everything wrong in the beginning again i was working off of limited education information and because of that some of the decisions that i made i feel like were very stupid and bad right i wasted time i spun my wheels and instead of getting through this quickly and getting past
(00:54) the pain i just was basking in it and making it longer more drawn out than it needed to be right so let's talk about these things uh just a few and i'd love if you are following along right and you've got something that you've made as a mistake and it's not covered in my list share it in the comments below all right so let's dive in first things first the first thing i did was i focused on crappy credit cards because when you're in a subprime category 460 500s you got derogatories you got
(01:21) baddies what are your options who is really extending credit to you at that point right so this is like uh credit ones this is the indigo cards this is all the borderline predatory offers that you see on credit karma and wallet hub like when you're not getting any offers from like normal legitimate credit card companies that's the crap that shows up at the bottom and those are all subprime cards right now thankfully i didn't fall into that trap i almost pulled the trigger several times you have no idea
(01:48) but when you're looking at a card that's going to have maybe a credit line of 250 500 if you're lucky and it's got a hundred dollar annual fee and there's all these other fees associated with it it's like there's no point in getting it going out and getting crappy cards i went out and i got uh two capital one cards one i think had a 200 limit one had a 300 limit so that was the first mistake second mistake is along a similar vein is that is i went out and got all these online trade lines so a
(02:16) trade line is different than a credit card you get no card and it's used you can only use it at this one domain this one store or shop and a lot of these have overpriced marked up junk that you have to buy in order to open up the account and you know get them to start reporting to the credit bureaus right so this is my jeweler club i went and got new coach direct and a couple others right and i don't even think my jewelry club is around anymore and at this point all of these were reporting to all the major agencies still right so
(02:45) i got lucky on that front and it did help my score right because every time that we add a new credit it does ding us because it takes down our average age of account but at the same time simultaneously it is uh stretching out the amount of available credit we've got so it makes our utilization look better and utilization i'm telling you is the number one credit killer we shot a video on this we'll try and link the card right here and so you need to pay more attention to the utilization and so anyways that
(03:11) brings me into the the third point here which is i was focused on um instead of keeping my utilization down i was focused on just using those cards as if they were free money now this is a huge mistake a lot of people make and i think again this comes with education but when you're treating this like free money you will treat it very poorly you're going to not take the payment dates serious enough if you don't have the money you're just gonna say oh well you're gonna continually use way too much of
(03:36) the utilization and max out the card not pay it down because again this is free money there's no accountability there within you know within what you're doing right so that was a huge problem that i had in the beginning as well next i was very hyper focused on removing baddies derogatories bad things on my account versus just establishing great relationships and transactional history with banks that i i actually liked i spent all this time money thousands of dollars hiring you know credit repair agencies and individual guys and friends
(04:07) of friends of friends all taking me for a different kind of ride and trying to get all those things removed took over a year and we got a lot of them removed but at the end there was still the bankruptcy at the end there were still some of the larger charge offs so what was the point and if i would have dedicated i argue if i would have dedicated that same time to building out relationships with institutions transactional history getting into different a bunch of their different products and you know at minimum a
(04:32) secured credit card and just let that sit for somewhere between two to six months i argue i would have been much better off and now seeing a lot of the personal story shared in the community i know i would have been better off so that was a massive mistake on my part and i know that there's a ton of people right now some of you probably watching this that are going out trying to completely remove and scrub the credit profile clean before they think that by getting rid of all of this now i'm going to get this huge uptick of a credit
(04:57) score and you don't you really don't it makes your approval odds better when you're down in the dumps like sub 600 it does help with that again i would argue that at that time we should not be trying to get new credit we should be building relationships opening up high yield savings account with whether it's amex chase navy fed whatever credit union you want to work with or major banking institution right that would be more worthwhile that money that i took for credit repair if i would have just sunk
(05:23) that into secured credit cards savings accounts relationships at these institutions i would have been better off i know that next i was focused on uh and constantly watching videos trying to learn like hacks and tips on you know people who won't do a hard pull and a way to sneak in here and and so it turned into this thing to where it's like you find yourself spending all this time and acquiring these these cards with the shopping cart trick with all these other tricks and hacks right you don't even first off you don't even want
(05:51) the card but you're filling up your profile with a bunch of junk so you're thinning out your average age of account you're adding too many new accounts too many new inquiries because a lot of times the the soft pull trick hack thing ends up hard pulling you anyways yeah you gotta prove but it was for two five two hundred dollars 500 etc so again i would argue that that's not worthwhile so you see like what we've now been covering on this channel over the last what year is the same stuff and we're just kind of
(06:17) talking about it in different ways and i'm talking about the personal mistakes that i made and the things that slowed me down because i want you to go through this faster than i did i think an 8 to 10 month window is the perfect amount of time that you need to completely change fix reshape your credit profile okay so that's all i got for you so what i'd love to hear from you in the comments section is what did i miss right is there other things that you fell into other traps that you fell into that you
(06:42) think would benefit others comment below and we'll pin that or you know we'll interact with it so that more people will see it and if you like this or just want to help us get higher up in algorithms then take a second click the like button and if you're brand new here and you like this sort of thing stick around hit the subscribe button the bell notification turn it to all be on the lookout more videos coming soon see ya [Music] you