My Credit Sucks — "Nobody Told Me Why" Ep. 24

My Credit Sucks — "Nobody Told Me Why" Episode 24

Most people know their credit is bad. What they don't know is why — and nobody's ever taken the time to actually explain it. In this first episode of My Credit Sucks, Rolando Castro, founder of Elite Credit Group, breaks down exactly what's on your credit report, what's actually driving your score, and why your situation is almost certainly more fixable than you think. If you've ever felt judged, confused, or hopeless about your credit — this one's for you. Because your score isn't your identity. It's a starting point.

Have any credit questions? Feel free to send me an email to 

Rolando@MyEliteCreditGroup.com

Schedule you FREE credit evaluation here: https://calendly.com/elitecreditgroupinc/discovery-call

Access your full credit report for $1.99 (it won't impact your scores) click here: https://www.smartcredit.com/?PID=12984

Transcript

SPEAKER_00 0:09

Hey, welcome to My Credit Sucks, the podcast where we talk about the thing nobody wants to talk about, but everyone needs to hear. What's up everyone? My name is Rolando Castro. I am the founder of Elite Credit Group. And if you've ever felt judged, confused, or flat out hopeless about your credit, well, you're in the right place. Welcome. And today we have an amazing episode title for you guys. All right, let's get into it. So I want to talk about a woman I worked with a few years back. She came to me after being turned down for a home loan, not once, but twice. She had a great job, steady income, two kids, and a dream of owning her first home. But every time she got close, the credit report, well, it shut the door right in her face. And I'm sure a lot of people know that feeling. When I pulled her credit report, she looked at me and said, Look, Orlando, I don't even understand what any of that means. And I, you know what, I don't blame her. Because she's not alone and most people aren't. You see, we spend our whole lives being told that credit matters. But nobody ever sits us down and actually explains it. Not the school system, not the bank that denied you, not anywhere. You're just supposed to go out into the world and figure it out. And if you don't, guess what? The system penalizes you for it. That is exactly why this podcast exists. Okay. So here's the truth millions of people are walking around right now with damaged or low credit scores, and they have no idea why. They just know things aren't working. They can't get approved for a home, not a credit card, even a car loan. And if they do get approved, they're paying ridiculous interest. They feel like they're stuck, like the financial system wasn't built for them. And honestly, for a lot of people, it wasn't. Nobody handed them a roadmap. But here's what I learned after 15 years in helping over 15,000 clients. Your credit, it's not a life sentence, it's a starting point. And when you understand what's actually going on, guess what? Everything changes. Now, what's actually on your credit report? So let's break it down real quick. Your credit report has five main components that impact your credit score. And I'm going to break down every single one of them, okay? The first one, which is the Mecca, which is the heart of your credit score. It's the payment history. It equates to 35% of your credit score, which is the biggest one. Do you pay your bills on time? That's it. Late payments hurt. And they stay on your credit report for seven years. But here's the good news they don't stay on forever. Now that matters. Number two, credit utilization, 30%. This is how much of your available credit you're using. So for an example, if your credit card limit is $1,000 and you owe 900, it's a big problem. The sweet spot is under 30%. But guess what? Under 10% is even better. Okay, it doesn't mean that you can't use your cards. You just can't, yeah, you shouldn't revolve that debt after the statement closing date because that high utilization affects your credit score 30%. Number three, length of credit history. It's only 15%. How long have you are your how long have your accounts been open? The older the accounts, the more it helps you. And this is what I tell clients. Don't close any old cards unless you have a real reason to. Then number four, fourth one is credit mix, which is 10%. Do you have different types of credit? Car loans, credit cards, installments, mortgage, a mortgage, a personal loan, a student loan. Those are what we call installment loans, where you have a fixed payment for a fixed amount of time. Revolving, which is a credit card, a credit line, is where you only have a payment if you have a balance. And once you pay it off, you have that limit available again. And your payment is, I believe, is three to five percent of whatever your balance is. Number five, new credit, which is 10%. What I mean by new credit is every time you apply for a new credit card, it creates what's called a hard inquiry. Too many in a short period sends a red flag to lenders. Okay. Now don't be confused with you checking your own credit report. You can check your own credit report off of the many websites online. That doesn't hurt your credit score. That's what's called a soft inquiry. A hard pull is when you're waiting for an answer. Am I approved or not? Okay. So I need for you to hear this very clearly. Your credit score is not a reflection of your worth, it's a reflection of information. And information, guess what? It can be corrected. I've seen so many people who come in with a 480 and after a short period of time have a 720, keys in hand, standing in front of the first home. I've seen it more times than I can count. So guess what? There is a lot of hope for you and your credit. The woman I told you about at the top of the episode, she bought her home. Her kids have a backyard now. Now that story is possible for you too, but it starts with understanding where you are without the shame, without judgment, just clarity. Because you can't fix what you don't understand, and you can build with what you're afraid to look at. Okay. So if anything in this episode resonated with you, if you've been putting off looking at your credit because you're unsure of what you'll find, I want to offer you something. I want to offer you a free credit analysis. This is a no-cost, no commitment, no judgment. We'll pull your credit report together. My team and I will walk you through exactly what's on it. We'll give you a real roadmap, not just a sales pitch. You can book it at my website or on the show notes. You'll find the link for you to schedule your free consultation or text the word ready to 323-627-6345 and we'll get you scheduled. So that's a wrap on today's episode of My Credit Sucks. If this helped you, share it. Text it to someone who needs to hear it. Please leave a review if you have a quick minute. It generally helps more people find the show. And again, guys, I'm Orlando Castro, and I'll see you next week. Until then, take one step forward. Because guess what? That's what it takes. Take care of the