Credit Education

Statistics

If You Asked 95% Of The People Why They Aren't Where They Want To Be In Life Or Doing What They Want To Do ? Most Will Say "It Takes Money To Make Money & That They DON'T HAVE THE MONEY"

So They THINK THE MONEY IS THE PROBLEM. I Always Tell People If You Don't Have The Money All You Need Is The Credit And You Can Get APPROVED FOR THE MONEY

Did you know it is possible to be approved for $10,000, $30,000, or even $50,000+ in funding before you are able to earn or save that amount through a traditional 9-to-5 income—while still managing everyday expenses and financial obligations?

Even individuals with challenged credit may qualify. In many cases, the time it takes to dispute negative items, rebuild credit, and establish a stronger profile is shorter than the time it would take to save $10,000 through earned income alone.

For many people, saving large sums is difficult due to ongoing living expenses, which often leads to reliance on tax refunds—only to find that those funds are quickly used to catch up on bills rather than create financial growth.

When funding is approved, the key is to allocate it toward opportunities that generate additional income or long-term returns, rather than short-term expenses.

Examples:

• Properties ( 3 Flats, 4 Flats, Fix & Flips, )
• Airbnb's
• Rental Spaces
• Tow Trucks
• Box Trucks
• 18 Wheeler
• ATM's
• Vending Machine
• Car Wash

These are just a few examples, but moral of the story the real goal is to have your PROFITS paying your Bills instead of you WORKING to pay your bills. Or 9/10 you'll be working until the day you die. Because I realized this I haven't worked a a 9-5 since 2021.

Think You Have Good Or Decent Credit ? Grade Yourself - How Many Categories Did You Check Off ? Example 1/27, 10/27, 27/27

If You Do Not Know The Answers To These Questions, You May Need To Access All 3 Of Your Full Credit Reports & Scores To Take This Quiz

Credit Card Tier Rank

Credit Profile Scorecard - Weak vs Strong

For those who believe their credit situation isn't that bad, I hope this provides helpful clarity and insight. There's no reason for embarrassment—awareness is the first step toward improvement. Now that you know what areas need attention, you can take the right steps forward. If you need assistance with any of these subjects, don't hesitate to book a consultation. I'm here to help you restore and strengthen your credit profile.

1️⃣ Credit Affects Things People Don't Expect

Credit isn't just loans:

• Renting an apartment
• Cell phone deposits
• Utilities (gas, electric, internet)
• Insurance rates
• Some jobs & promotions

Bad credit = more deposits, more scrutiny, fewer options.

2️⃣ Credit Repair Removes What's Holding You Back

Credit repair does NOT erase debt — it removes:

• Inaccurate
• Outdated
• Unverifiable
• Improperly reported items

That's important because lenders don't care why something happened — only what's showing right now.

3️⃣ A High Score ≠ Strong Credit

You can have a 720+ score and still get denied.

Lenders look at:

• Payment history
• Utilization
• Credit age
• Account mix
• Profile strength

Credit repair cleans the report so building actually works

4️⃣ Credit Repair Saves Time

Without cleaning the report first:

• New credit gets denied
• Utilization fixes don't move scores
• Hard inquiries hurt more
• Growth stalls

Repair first → then build → then apply.

1️⃣ Pay Off Of All Of Your Debt.

If you have thousands of dollars available to pay everything off then be my guest. But understand that Paying collections does not Remove the negative item from your credit report. It will just update the payment status to PAID COLLECTION. And that still does not help your credibility. And most importantly it doesn't wipe away the late payments either.

2️⃣ Stay In Debt For 7-10 Years & Wait For Everything To Fall Off ( Holding Yourself Back )

This option is Not as Simple as it sounds, and honestly isn't smart either. Mainly because of how late payments report. YOU'LL BE WAITING FOREVER LIKE YOU BEEN HAVE.

3️⃣ Do It Yourself ( Free But Understand This Takes Time. )

• You Might Research The Right Things. You Might Research The Wrong Things.
• If You Do Research The Right Things You Might Understand It Or You Might Not.
• If You Do Understand It You Might Do It Right Or You Might Do It Wrong.

Bottom Line You Keep Going Until You Get It Right And That Will Take However Long It Needs To Take. Question Is Do You Have That Time To Wait ? Probably Not but That's Your Decision.

4️⃣ Pay Someone To Fix It

Best option if you can find someone like me who's efficient, very informative, trustworthy, has real results, real testimonials, and a proven track record of consistency.

5️⃣ Find someone who will accept you with your situation ( THIS IS THE TRAP ) this is also why bankruptcy wouldn't be a smart option.

I Guarantee if a company ever told you, WE ACCEPT BAD CREDIT. They are legally about to Rob you blind. And I will prove it. Take a look at Interest Rates where I explain to you how much life is costing you with Having Good Credit Vs Bad Credit.

Did You Know That Having Bad Credit Is Costing You WAY MORE Than Credit Repair Ever Will?

• If You're Worried About The Cost Of Getting Started...
• You Should See The Cost Of Staying Exactly Where You Are…
• Credit repair is important because your credit controls the COST OF YOUR LIFE — not just approvals.

Credit Repair Is an Investment, Not a Bill. People hesitate or complain over paying $600–$2,000, then:

• Donate their money regularly to every single business everyday
• Overpay $8k–$30k on a car
• Pay $100k–$300K+ more on a mortgage
• Get stuck in high-interest cycles

Choosing To Stay With Bad Credit Is Costing You THOUSANDS OF DOLLARS MORE & I Will Prove It.

Incase it hasn't dawned on you by now I want to be very REALISTIC. I can charge you $5,000 to fix your credit and you will still come out of more money trying to reach your goals without just paying me the $5K first. Don't worry my prices are nowhere near $5K, but for this example let's say that was how much I charged for my services.

Most people would hear that price and think to themselves "he's crazy I'm not paying that" and they will keep searching until they find a company who "ACCEPTS BAD CREDIT". Or they will consider filing for Bankruptcy.

The Bankruptcy Trap Most People Don't See Coming

Most people have a major misconception about bankruptcy. They believe that once they file, it's a complete "fresh start." But in reality, it often creates a much more expensive problem long-term — one that most people don't realize until years later.

Let's start with a common scenario.

Many people file bankruptcy over what feels like a large amount of debt — often something like a repossessed vehicle or an auto loan balance of $8,000 to $10,000. At the moment, filing can seem like the easiest solution: the debt is discharged, the account is no longer collectible, you no longer have a car note, and it feels like the problem is gone.

But what most people fail to consider is THE COST OF BANKRUPTCY OVER TIME. They're going to spend 10 times whatever the price was of the original debt they were avoiding.

Once bankruptcy is on your credit report, it remains there for 7–10 years. During that time, LENDERS VIEW YOU AS HIGH RISK. That means 10/10 whatever you apply for within that timeframe will automatically cause… higher interest rates, fewer approvals, and stricter terms across the board.

For example, after bankruptcy, many people still need transportation — so they go finance another vehicle. Even if the car costs only $20,000, they may be approved at a 25–30% interest rate, often with a longer loan term (60–72 months) just to keep the monthly payment affordable.

If you get charged that much, especially if you're getting about a six-year term — which most people do because the car note's already high, so in order to get the cheaper car note they get a longer term, not realizing a longer time means more interest — so with a 25% interest rate on a $20,000 car, you're already paying an extra $5,000 a year. That's already $30,000 in interest after the 6-year term is done.

Take This Person For Example:

• The total price of this car was only $15,318
• 78-month term (6 years and 5 months)
• Car note is $401/Month
• $401 X 78 = $31,278.00 Total
• $31,278 - $15,318 = $15,960.00 EXTRA
• They are paying more in interest than for the car itself
• That's 104.20% Interest (Not including down payment, which was likely 10K+ due to bankruptcy)

Hopefully this car doesn't give you any issues because in most cases if the car is in bad shape, it will most likely be in and out the shop costing you thousands. And what do most people do? They figure why pay a car note if I don't have the car? When in reality the car problems has nothing to do with the bank that loaned you the money for the car. YOU STILL OWE THEM. And now your credit is even worse and you're back to square one.

Or let's say the car is in good shape. It's still not worth it because by the time you're ready to trade it in, it won't be worth the amount you owe. So if you still owe $12,000 by the time you trade it in, that $12,000 debt is considered NEGATIVE EQUITY — which means it will get added to the new loan.

So let's say you trade it in for another $25,000 car. You'll be paying $37,000 for a $25,000 car — and that's not even including the extra 25% interest you're about to get charged because you still have a bankruptcy on your report. Once again digging your grave even bigger.

Now a car is just one thing. And if that's how much extra you'll pay for a $20,000 car — how much extra do you think you'll pay to get a house, a building, or a business loan? All of those things cost way more than a car. Which means you're going to be spending so much money in interest every year that you could have already paid the $10,000 or whatever it was for the original debt. But life doesn't stop for you. So for the next 10 years, every approval costs more. Every loan carries heavier interest. Every financial move becomes more expensive.

Take this house as an example:

• Total cost: $112,818
• $1,117/Month, 360-month term (30 Years)
• $1,117 X 360 = $402,120.00
• $402,120 - $112,818 = $289,302.00 EXTRA IN INTEREST
• That's 256% IN INTEREST
• Could have bought 3 Houses For The Same Exact Price & Still Had Over $63,666 Left
• My point is — one way or another, you will pay the money.

SO YOU MEAN TO TELL ME YOU REALLY PREFER TO DONATE ALL THAT MONEY RATHER THAN INVEST IN YOURSELF?

This is one of the main reasons people can't afford to or are scared to invest in themselves because they don't know what they're doing — they're JUST GIVING IT OUT. By choosing to stay with bad credit you are choosing to DONATE YOUR HARD EARNED MONEY.

When you add it all up, many people who filed bankruptcy to avoid paying $8,000–$10,000 end up spending well over six figures in extra interest over the next decade — simply because their credit profile was damaged. That's the part no one explains.

Bankruptcy doesn't erase debt — it reshapes your financial future, and usually not in your favor. In many cases, paying or strategically resolving a smaller debt upfront is far cheaper than carrying the long-term cost of bankruptcy. That's why bankruptcy should always be a last resort, not a quick fix.

Why Good Credit Allows You To Save Over $10,000+

Here Are A Few More Reasons Why Bad Credit Cost More Than Credit Repair Even If You Didn't File For Bankruptcy.

Watch The Video Passcode: wk4Ubt^0

Fun Facts:

• Your Credit Score, Credit Report, & Credit Profile Are 3 Completely Different Things.
• Your #CREDIT Is NOT Your Credit SCORE. Your Credit Is Your Credibility Aka Your Reputation With Banks & Lenders
• When You Have Negative Items & Late Payments On Your Report YOU HAVE NO CREDIBILITY
• Your Credit Score DOES NOT Get You Approved For Anything
• Just Because You Have A Good Credit Score DOES NOT MEAN You Have GOOD CREDIT
• Someone With A 650 Credit Score Can Get Approved Over Someone With A 750 Credit Score due to the report and profile
• Your Credit Report & Credit Profile Is Far More Important Than Your Credit Score.
• You Can Have A 750 Credit Score And STILL NEED A CO-SIGNER
• Credit Is Just Like A Job… You Need The Experience To Get The Job, But You Need The Job To Get The Experience. In This Case You Need The History To Get The Credit & You Need The Credit To Get The History.
• Having No Credit History Is Almost The Same As Having Bad Credit. Either Way You Have NO CREDIBILITY

The Purpose Of Credit Repair Is To Hide The Negative Items From Your Report So That They No Longer Hold You Back. So Now You Can Get Approved For Things But You Do Still Owe The Original Creditor. But It DOES NOT MEAN THE DEBT IS DELETED.

So Why Not Just Pay It?

• 9/10 If You Have A Collection Your Information Has Been Passed On To A 3rd Party Debt Collector That You NEVER Did Business With So Therefore You DO NOT OWE THEM ‼️
• Every State Has A Statue Limitation On When A Creditor Can Collect On A Debt 💸 A lot Of Times Consumers Don't Realize That They Almost Are Scott Free Of Paying A Debt But When They Pay A Small Payment THE CLOCK STARTS OVER
• If You Pay Them It Will Be Harder To Get Removed Because Why Would Anyone Pay A Debt That Doesn't Belong To Them. So You Look Guilty
• Paying Them DOES NOT REMOVE IT FROM YOUR CREDIT REPORT
• If You Pay Them In Full It Will Show Up As A PAID COLLECTION
• If You Fall For That Letter Saying Pay 30-40% Off It Will Say SETTLED FOR LESS THAN FULL BALANCE

The Smart Approach:

• If You're Ever Behind On an OPEN ACCOUNT Yes it is safe to get on a payment plan etc to pay it down
• But if that account has ALREADY BEEN CLOSED & SENT TO COLLECTIONS It's better to get it removed FIRST & Then Settle The Debt
• Because If You Settle First, It Will Still Be On Your Credit Report And That Doesn't Help You

Your Credit Score = Your RESUME

( What Makes You Qualify To Apply )

A Good Resume Does Not Mean You Automatically Got The Job. The Resume Is Only Enough For The Employer To CONSIDER YOU.

For Example: A Trucking Company Is Hiring On The Flyer It Says " MUST HAVE VALID CDL " I Can't Even APPLY Without Having A CDL. But Just Because I Have A CDL That Doesn't Mean I Will Get The Job. I'll Still Have To Complete A Interview & Background Check.

Just Like A Resume Your Credit Score Makes You QUALIFIED TO APPLY. ( Example: You Must Have A 650 Credit Score To Apply For This Apartment )

• What If 12 Other People Also Have A 650? Why Should They Choose You ?
• Just Because You Might Have A 650 Credit Score Doesn't Mean You Will Be Approved.
• You Just QUALIFY TO APPLY.

Credit Card Application = The INTERVIEW

When applying for credit, several factors influence approval, including your income, existing debt, employment history, and overall financial profile. However, what many people don't realize is that even with a 700+ credit score and no collections, your application can still be negatively impacted by inaccurate or inconsistent personal information.

Credit bureaus rely heavily on personal identifiers to verify identity. If your name or details appear differently across reports—for example, Cordell D. Collins on one bureau, Cordell Collins on another, and Cordell Collins Jr. on a third—those discrepancies can cause verification issues. On paper, these variations can appear as separate individuals. The last thing you want to do is be held responsible for someone's else mistakes.

Many consumers have multiple name variations and outdated addresses listed on their credit reports. This can trigger red flags during the application process, leading lenders to question identity verification, suspect potential fraud, or confuse you with another individual who shares the same name. While this is not a common reason for denial, it does happen—and I've seen it occur.

Consistency and accuracy play a critical role in protecting your credit profile and improving approval outcomes.

Credit Report = The BACKGROUND CHECK

( This Is What Gets You Approved Or Denied )

Derogatory Marks Are Like Felonies. You Can Have The Best Resume In The World Along With All The Work Experience. The Chances Of You Becoming Manager At Any Establishment With Armed Robbery On Your Record Is Slim. A lot of times people often downplay their credit reports.

Don't ever think just because you only have a "few negative items" or only owe small debts that your credit report is " NOT THAT BAD " In Most Cases 1 Collection can and will get you denied regardless of the amount owed.

Smaller collections are actually worse. A $10,000 collection makes sense but when you have small collections you just make yourself look very irresponsible. If You couldn't handle a $300 credit card, Why should anyone trust you with a $30,000 auto loan?

You Can Have A 750 Credit Score 1 Collection Can Get You Denied. Having A Bankruptcy On Your Report Is Like Committing Murder. It's The Absolute Worst Thing You Can Have On Your Credit Report.

Good Credit Report Vs Bad Credit Report

Good Credit Report - This Is What You Want To See

• This Person Has 0 Late Payments
• 0 Collections
• 0 Public Records ( Which would also be considered a Derogatory account )
• Less Than 2 Inquiries Per Credit Bureau
• If Your Report Doesn't Look Like This YOU NEED CREDIT REPAIR.

Bad Credit Report - This Is What You Don't Want To See

• This Person Has 2 Delinquent Accounts ( meaning accounts with late payments)
• They Also Have A Total Of 12 Derogatory Accounts ( Meaning Accounts In Negative Standing Such As Repos, Charge-offs, Evictions Etc ) 2 Collections
• They Also Have 3 Public Records ( usually bankruptcies )

That's A Total Of 19 Negative Accounts. That's Not Including The 22 Inquiries.

I Cannot Make Your Scores Go Up Or Down. So If You Want A Higher Credit Score You First Need To Know What Makes Up Your Credit Score? These Are Called #The5Factors

• 2 or more Active Credit Cards
• 1 or more Active short term loan (Self lender, credit builder loan, personal loan etc)
• 1 or more Active long term loan (Car, mortgage, Bank loan etc)

If you cannot go through your report and find any of the following then you NEED to visit my ACTIVE CLIENT TAB & CLICK ON THE "TO DO LIST"

Revolving Credit - Credit Cards 💳

Revolving Accounts that would generally have a different amount due each month depending on the current balance. The full balance is not required to be paid in order to keep the account in good standing. Interest is accumulated each month that a balance is carried over into the following month.

Installment Credit

• Auto Loan
• Mortgage Loan
• Student Loans
• Personal Loans
• Secured Loans

Open Credit

• Utilities
• Phone Bill
• Rent

Primary Account vs Authorized User

Primary Account	Authorized User
You are the owner of the account. You have full responsibility of everything that comes with the account.	A primary account holder has the option to add an authorized user to their account. They can use the card but the responsibility and owner of the account is the primary account owner.

Different Types Of Revolving Accounts

Installment Accounts

• Accounts with a fixed monthly payment for a fixed period of time.

• Interest could be fixed or variable.

Examples: Auto Loans, Mortgage Loans, Student Loans, Credit Builder Loans, Personal Loans

Why Pay A Company You Don't Owe ? Even If It Were The Original Creditor Paying Them DOES NOT REMOVE IT FROM YOUR CREDIT REPORT.

• If You Fall For That Letter Saying Pay 30-40% Off And We Will Say SETTLE This For You. It Will Still Be On Your Credit Report As A Paid Collection, SETTLED FOR LESS THAN FULL BALANCE Which Is Still A Negative Account And That DOES NOT Help You.
• Not Only Were You Already Behind 120-180 Days But When You Finally Decided To Pay Them, They Didn't Even Get All Of Their Money ? It Doesn't Look Good
• If You Pay Them IN FULL It Will Still Show Up As A PAID COLLECTION Which Is Still A Negative Account And That DOES NOT Help You.

The Smart Approach:

Nothing Wrong With Settling A Debt. It's Just WHEN YOU SETTLE IT. Please Allow Me To Explain.

• If You're Ever Behind On an OPEN ACCOUNT Yes it is safe to get on a payment plan etc to pay it down
• But if that account has ALREADY BEEN CLOSED & SENT TO COLLECTIONS It's better to get it removed FIRST & Then Settle The Debt

Fun Fact:

Every state Has a Statute of limitation on when they can collect a debt. Each state sets different time limits for different categories of debt. The clock doesn't run the same for everything.

Common Debt Categories That Matter

Illinois Example (Very Important)

How Statutes of Limitation Actually Work

Each category can have a different statute — even within the same state.

What Starts the Clock?

The statute of limitation clock usually starts at:

• Date of first delinquency (DOFD)
• OR date of last payment (varies by state & debt type)

A lot Of Times consumers don't realize that they almost are scott free of paying a debt, and when creditors & debt collectors convince you to get on a payment plan and you make that first small payment, THE CLOCK STARTS OVER. This is why clients should NEVER casually agree to pay old debt without advice. If You Pay Them It Will Be Harder To Get Removed Because Why Would Anyone Pay A Debt That Doesn't Belong To Them. So You Look Guilty.

A collection account is a negative credit item that appears when a bill goes unpaid for a long period and the original creditor sends or sells the debt to a collection agency.

Common types of collection accounts

• Credit cards
• Medical bills
• Utility bills
• Phone/cable/internet bills
• Auto loan deficiencies
• Apartment or rental balances

Why collections are serious

• They can drop your score 50–150+ points
• They stay on your credit report for 7 years from the first missed payment

Paid vs. unpaid collections

• Unpaid collections obviously will still hurt your score, BUT Paying a collection does NOT guarantee removal
• Paid collection → Settled for less than full balance, A collection is still a collection at the end of the day and needs to be removed from your profile. If you get out of jail for robbery even though you did your time will jobs still look at you sideways?

A student loan is borrowed money used to pay for education that you must repay—with interest—after (and sometimes during) school.

🏦 The 2 Main Types of Student Loans

⏳ When Do You Start Paying Them Back?

• Usually 6 months after leaving school (grace period)
• Interest may build while you're still in school
• Payments can last 10–25+ years if not managed properly

📉 How Student Loans Affect Credit

Student loans:

• Appear as installment loans
• Can help credit if paid on time

An eviction is a legal process where a landlord forces a tenant to move out of a rental property—usually because the tenant violated the lease or failed to pay rent.

🏠 Common Reasons Evictions Happen

• Non-payment of rent (most common)
• Repeated late payments
• Violating lease terms (unauthorized occupants, pets, damage)
• Illegal activity
• Staying after the lease ends (holdover tenant)

⚖️ How the Eviction Process Works (Simple Version)

1. Notice is given (Pay rent, fix the issue, or leave by a certain date)
2. Court filing If the issue isn't resolved, the landlord files an eviction case
3. Court judgment A judge decides whether the tenant must leave
4. Physical removal (if necessary) Law enforcement may remove the tenant if they don't leave voluntarily

📄 Eviction vs Eviction Filing (Important Difference)

• Eviction notice → ⚠️ Warning (not on your record)
• Eviction filing → ⚠️ Court case (can show up in tenant screenings)
• Eviction judgment → ❌ The real damage (harder to remove)

Even dismissed cases can still hurt rental approvals.

⏳ How Long an Eviction Stays on Record

• Tenant screening reports: 7 years
• Court records: varies by state
• Collections tied to eviction: 7 years

That's why evictions hurt housing approvals more than credit cards do.

A medical bill is a charge you receive for healthcare services that were provided to you—but not fully paid for by insurance (or not insured at all).

Medical bills can include charges for:

• Doctor visits
• Emergency room visits
• Hospital stays
• Surgeries
• Ambulance rides
• Lab work & imaging (X-rays, MRIs, blood tests)
• Prescriptions
• Mental health services

What happens if a medical bill isn't paid

• Late fees may apply
• It can be sent to collections
• It can appear on your credit report if:
  • It's over $500, and
  • It's unpaid for 12+ months

A charge-off account is a debt that a lender has decided is unlikely to be collected, so they mark it as a loss in their accounting—but you still owe the money.

How a charge-off happens (simple timeline)

1. You miss payments (usually 120–180 days late)
2. The lender gives up trying to collect
3. They charge off the account as a loss
4. The debt may:
   • Stay with the original lender, or
   • Be sold to a collection agency

Important truths about charge-offs

• Not forgiven – you still legally owe the debt
• Not the same as a collection, but they often come together
• Very negative on your credit
• Can stay on your credit report for 7 years from first delinquency

A repossession (often called a repo) happens when a lender takes back property you're financing—most commonly a car—because payments weren't made as agreed.

How a repossession happens (simple timeline)

1. You finance a vehicle (or other property)
2. You miss payments (often 60–90 days late, varies by state & contract)
3. The lender declares default
4. The vehicle is repossessed (often without warning)
5. The lender may:
   • Sell the vehicle at auction
   • Bill you for the remaining balance (deficiency balance)

Important things to know

• Repossession does NOT erase the debt
• It's a major negative on your credit
• It can stay on your credit report for 7 years from the first missed payment
• You may still owe money after the car is taken

Deficiency balance (very important)

If you owed $18,000 and the car sells for $11,000:

• $7,000 = deficiency balance
• Plus fees (towing, storage, auction costs)
• That balance can be sent to collections or charged off

Voluntary vs involuntary repossession

• Voluntary repo: You turn in the vehicle
• Involuntary repo: The lender takes it

A bankruptcy is a legal process that gives a person or business relief from overwhelming debt when they can no longer afford to pay what they owe.

90%+ of personal bankruptcies are either:

• Chapter 7
• Chapter 13

Everything else is rare and situational.

💳 Debts That DO Get Wiped Out (Usually)

These are called dischargeable debts:

• Credit cards
• Medical bills
• Personal loans
• Payday loans
• Collections & charge-offs
• Old utility bills
• Certain business debts

🚫 Debts That DO NOT Get Wiped Out (Usually)

These survive bankruptcy:

• Child support & alimony
• Most student loans
• Recent income taxes
• Court fines & criminal restitution
• Debts from fraud
• Most government-backed loans

Key things people misunderstand

• Paying a public record like bankruptcy for example does not automatically remove it from your credit report
• It doesn't disappear because it's old (until time limits expire)
• Removing it often requires legal accuracy disputes or completion
• Just because your bankruptcy has been Dismissed or discharged doesn't mean it will not report on your credit report

A public record on a credit report is a negative legal or financial event that comes from court filings or government records and is reported to the credit bureaus because it involves unpaid obligations or legal responsibility.

Historically, these included:

• Bankruptcy (Chapter 7, 11, 13) ✅ still reported
• Judgments (court-ordered debts)
• Tax liens (unpaid federal or state taxes)
• Civil lawsuits
• Evictions

How public records affect your credit

• Considered major derogatory items
• Can cause large score drops (100+ points)
• Signal high risk to lenders
• Stay on your credit report for a long time

How long public records stay on your credit

• Chapter 7 bankruptcy: 10 years
• Chapter 13 bankruptcy: 7 years (sometimes sooner if completed early)
• Other public records: Usually not reported anymore, but still legally valid elsewhere

Key things people misunderstand

• Paying a public record like bankruptcy for example does not automatically remove it
• It doesn't disappear because it's old (until time limits expire)
• Removing it often requires legal accuracy disputes or completion

ChexSystems is a consumer reporting agency that banks and credit unions use to decide whether to approve or deny you for checking and savings accounts.

It's like a credit report—but for bank accounts, not loans or credit cards.

What ChexSystems tracks

ChexSystems collects information about negative banking activity, including:

• Unpaid overdrafts
• Negative balances left unpaid
• Account closures for cause
• Suspected fraud
• Excessive bounced checks
• Abandoned accounts with balances owed

It does NOT track credit cards, loans, or credit scores.

How it affects you

If you have negative info in ChexSystems, banks may:

• Deny you a checking or savings account
• You can NEVER Get a business loan while In chexsystems
• Require a second-chance account
• Limit features (no overdraft, no checks)
• Charge higher fees
• Won't qualify for pay in four options like Afterpay, Klarna, Acima, Zip, Affirm, PayPal Etc

How long ChexSystems stays on your record

• Most negative items stay up to 5 years
• Even small amounts (like $50–$200) can block approvals
• Paying the debt does not automatically remove it

What People Don't Realize

If you are in chexsystems or early warning then that means that you have been violated. Read 15 USC 6802- 15 USC 6805. If you read your terms and conditions and privacy agreements of your credit card accounts banking information it tells you that they do not share your personal information with any 3rd party non affiliate….

What we don't realize it when we open up these accounts we have the option to opt out so they don't share our information but they don't out right tell us that in plain English either. But in there privacy agreements and terms and conditions it states that they don't but yet they do anyway which is a violation.

Early Warning Services (often just called Early Warning or EWS) is a consumer reporting agency used by banks to decide whether to approve you for checking and savings accounts and to monitor for fraud.

It's similar to ChexSystems—but more powerful—and is heavily used by major banks.

What Early Warning tracks

Early Warning Services collects:

• Bank account openings & closures
• Unpaid negative balances
• Overdraft abuse
• Suspected fraud or identity risk
• Transaction behavior patterns
• Zelle-related activity
• Account misuse flags

Unlike ChexSystems, Early Warning is often real-time and behavior-based.

Many top U.S. banks rely on Early Warning, including:

• Chase
• Bank of America
• Wells Fargo
• Capital One
• PNC

If Early Warning flags you:

• You may be denied instantly
• No explanation from the bank
• Even "second-chance" accounts may be blocked
• Zelle can be restricted or shut down

How long Early Warning stays on your record

• Typically up to 5 years
• Fraud-related flags may last longer
• Paying a balance does not guarantee removal

Debt consolidation is a financial strategy where you combine multiple debts into one single payment, usually with the goal of lowering your interest rate, reducing your monthly payment, or simplifying your finances.

Why people do it (what's advertised)

• One payment instead of many
• Lower interest rate (sometimes)
• Easier to stay organized
• Can help cash flow each month

Important downsides to know

• Does NOT erase debt — you still owe it
• Can hurt your credit if mismanaged
• Some options require good credit
• Risky if you rack up new debt afterward
• Secured options (like home equity) put assets at risk

So whenever you apply for debt consolidation essentially all they will do is combine all of your debt into one big debt right? Now tell me what's stopping you from doing this yourself?

Then they will give you a monthly fee. And in most cases, debt consolidation does include interest. So you just made your debt even bigger.

And to make matters worse — when it's all said and done any open accounts you had will be closed. And that doesn't benefit you at all.

Adding a child as an authorized user on your credit card can help them begin building their credit history early. This can lead to better credit offers, lower interest rates, auto loans, mortgages, and more as they get older.

Our parents weren't taught about credit—and that's not their fault. But today, we know better. You are responsible for your children's financial future. Getting a credit card with one of these banks and adding them as an authorized user can give your children the head start you never had.

Credit Age (also called Length of Credit History) makes up 15% of your credit score and is calculated using multiple factors, not just one account.

CREDIT AGE IS BASED ON:

1. Age of Oldest Account

• The very first account ever opened on your credit report
• Older = better
• This is why closing old accounts can hurt

2. Age of Newest Account

• Your most recently opened account
• Opening new accounts lowers your average age

3. Average Age of Accounts - MOST IMPORTANT

This is what most people miss.

Example: Let's Say You Only Have 3 Accounts On Your Credit Report

• Account A: 6 years Old
• Account B: 4 years Old
• Account C: 2 years Old

6+4+2 = A Total Of 12 years
12 ÷ 3 accounts = 4-year average credit age

4. Open AND Closed Accounts Count

• Closed accounts still count toward credit age
• They usually remain on your report for up to 10 years
• Once they fall off, your average age can drop

HOW LENDERS & BUREAUS SEE IT

All three bureaus calculate age slightly differently:

• Experian
• Equifax
• TransUnion

That's why one bureau may show 4.2 years while another may show 3.8 years. This is normal.

Credit Age Calculator (AAoA Estimator)