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Why Credit Matters If You're Reading This Book, You Probably Have Some

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Why Credit Matters If You're Reading This Book, You Probably Have Some Cre dit StrategieBs, Sueiclrdetes r& Laws Secrets Why Does Credit M atter? If you’re reading this book, you probably have some idea of how important a strong credit score is. However, it’s worth it to dig a little deeper. Having solid credit allows you to purchase a home at the best interest rates and terms possible. Home ownership isn’t a dream - it quickly becomes a reality. By contrast, poor credit often closes the door on buying a home. If through some luck you’re able to obtain a mortgage, you’ll almost certainly overpay, being charged a higher interest rate, and many more points. As the years go by, this costs you thousands of dollars. Think about all of the other things you (and your family) could have down with that money. Why did you give it away to a bank? The same is true with buying or leasing a car. Strong credit means you can buy or lease the hottest model at a great price. Car dealers crave clients with strong credit. By contrast, poor credit usually means you’ll end up at a “second chance” used car lot, looking at clunkers with outrageous interest rates. 01 SUMCessage frCom the pEresident SS There are some other, less commonly known areas of life where credit has an impact. If you’re looking to purchase a cell phone, your credit will be checked. With subpar credit, you’ll be asked to place a deposit, or pay a0n e3xtra fee. The same is true when signing up for utilities accounts (like gas, watFera ocru plotyw earn). d Staff It gets worse. Poor credit history is grounds to deny you employment. For jobs that involve security clearances, or the handling of money (i.e. financial services), this is particularly true. Bad credit behavior is, af1ter0 all, is seen as a mark of how responsible and trustworthy you are. Year in review As you can see, credit has a massive impact on so many areas of our lives. With good credit, you enjoy a range of financial options, and the peace of mind that comes with knowing many doors are open. This allows you to also save and invest more, leading to long-term wealth growth. 34 The graduates Poor credit, on the other hand, is a weight around your neck - one which, according to analysis from Credit Karma, can cost you over $200,000 over a lifetime. You deserve better. 60 Class photos 66 Autographs Message from the Founders Shi va G. Bhaskar, Co-Founder & Managing Attorney We How ed! Start Shiva Bhaskar, Credit Expert & Lawyer Shiva is the co-founder and managing attorney of Tier One Credit, and responsible for crafting the firm’s law-focused approach to credit restoration. Mr. Bhaskar is a passionate consumer advocate, with extensive experience in navigating the ins and outs of complex federal and state credit and lending laws, including the Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), Truth in Lending Act (TILA), and more. Mr. Bhaskar also serves as a trusted expert resource on credit and debt matters, for realtors, mortgage lenders, financial advisors, and other credit repair companies. Mr. Bhaskar has led credit trainings for several professional real estate organizations, including the Inland Valley Association of Realtors (IVAOR), as well as the South Bay Association of Realtors (SBAOR). Mr. Bhaskar is a proud member of the American Bar Association (ABA). Mr. Bhaskar himself once suffered from poor credit, due to issues surrounding his law school student loans. Having been through the process of credit restoration himself, and experienced the highs and lows of strong and weak credit, he has a unique sense of empathy for those facing credit challenges. Prior to founding Tier One, Mr. Bhaskar litigated a range of complex legal matters. He also served as a pro bono attorney with the CLARO clinic in New York City, helping consumers being sued in debt collection cases, navigate the complexities of the legal process. Earlier in his career, Mr. Bhaskar interned with the United States Attorneys Office, and served as a volunteer lawyer with the Legal Aid Foundation of Los Angeles (LAFLA). Mr. Bhaskar earned his Juris Doctor (J.D.) from the UCLA School of Law, where he served as a staff editor for the Journal of International Law and Foreign Affairs (JILFA), and successfully competed in both mock trial and moot court. Mr. Bhaskar earned his B.A. from UCLA, where he wrote for the Daily Bruin student newspaper, and served as a staff member on the undergraduate student government. Mr. Bhaskar has lived in several major American cities, including New York City, San Francisco and L A l H i i t b t ld t l fit ki iti i ti d l Message from the Founders dri, Tony Bu Co-Founder & NMLS#1394047 We How ed! Start Tony, C0-Founder TierOne Credit, NMLS#1394047 One of America's greatest contribution to creating opportunity, I believe, has been the concept of developing a credit extending system. Many, guided by religious teachings, have traditionally frowned up the concept of usury and interest. Leveraged the correct way, credit can provide access to capital, and allow one to capture very promising opportunities. It has been my experience that leveraging one's credit rating the right way, can produce wonderful results. My door to fortune opened on the day my father was granted political asylum in the U.S. In 1996, at the age of 13, I arrived in Los Angeles, along with my mother and three younger sisters. I experienced culture shock, and didn’t speak English. We lived in a Section 8 (government subsidized) housing apartment in the town of Inglewood. My father weaseled our way into better schools, in the nearby town of Torrance. Although I lived a better life in Inglewood than in Sudan, I couldn’t help but observe the higher standard of living enjoyed by my classmates in Torrance. I aspired for that, and much more. Prior to graduation, I became more curious about the socioeconomic disparities I observed. I had noticed the differences in attitudes, education and lifestyles, between my peers in Torrance, and my neighbors in Inglewood. y desire for social acceptance was paramount. I stayed up late one evening, calculating how long my $2.50/hour after-school job would take to afford a $310 pair of Air Jordans. On television, an infomercial about real estate investing played, urging viewers to learn how to invest in real estate, and something about how real estate was the “collateral” most banks prefer. I learned that 97% of self-made millionaire did it through real estate investing! Wawa! That was the ticket! Why and how? I learned to understand, build and leverage my credit rating. I began familiarizing myself with terms and concepts I’ve never heard nor been exposed to before .Eventually, I found my way to Think And Grow Rich, the timeless classic by the late Napoleon Hill. In 2001, at the age of 18, I began to read and digest the concept of leverage, more specially, using Other People’s Money (OPM). I found it more fascinating than much of what I was learning in college! In 2003, I was ready to put my hard-earned knowledge to test. I was determined to take a shot at capturing the “good life.” As a part of this process, I learned, in painstaking detail, how to build my credit, so that I might access OPM. Shortly after my 20th birthday that same year, along with a friend and investing partner, we leveraged our good credit, and knowledge of the FHA’s First-Time Buyer financing programs, we purchased our first property in Downey, California. Admittedly, we each lacked sufficient individual income and down-payment, but together, “leveraging” our collective finances, we were able to purchase an investment opportunity. Within a year, after minor upgrades and improvements, we were able to increase the value of our property by over $100,000. During that time, we also moved in a tenant, to help us pay the monthly mortgage (having a mortgage helped us further boost our credit). Once the year was completed, we reduced our capital gain from 45% to 10% and net over $87,000 in profit. Thanks to our credit scores that enabled us to leverage the investment and produce a handsome gain. I’ll always be grateful for the life that excellent credit has allowed me to enjoy, and even more privileged that I get to share the power of credit with others. How Credit Scoring Works It is clear that credit scores are very important. Yet, it’s often not clear exactly how credit scoring and credit reports work. Let’s take a The Big 3 Credit Bureaus: closer look. - Experian - Equifax - TransUnion Your credit scores are based on the information contained in your credit reports. While there are numerous credit bureaus, the major three (which you here the most about), are Experian, Equifax and TransUnion. Each of these firms are multibillion dollar corporations, handling countless pieces of sensitive data for hundreds of millions of American consumers. Lenders, debt buyers, debt collectors, and debt collectors, report information to these three credit bureaus. Everyone from the small credit union down the street, to that annoying debt collector who keeps calling you, and of course large banks like Chase and Citibank, report data to credit bureaus. These companies do so on a subscription basis - that is, they pay a fee to report data to credit bureaus. The data is reported through a software known as Metro 2.
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