Completing The Applications

Hello, and welcome to this module, Completing The Application. So here’s what we’re going to cover. So I’m going to break down number one, how to complete our tier 3 applications. I’m going to get into checking your credit report or applying for those tier 3 vendors, purchasing goods and services, and then also what to lookout for. So at this point we already know how they work. I just want to give you a couple of housekeeping things when it comes to completing the application. So you don’t mess it up. So, number one, we’re going to check our credit reports and we can do so by going to nav.com and viewing our Dun & Bradstreet and our Experian report. And ideally, we may or may not have an Equifax report showing up. And if we don’t have to worry, we’re really concerned with Dun & Bradstreet and Experian. All right?

And if you don’t have a Paydex score at this point, what you want to do is call Dun & Bradstreet directly and request to review your file. And if you have a Paydex score less than 80, that means one of the vendors or lenders report its items negatively about you, or you have an entry reporting negatively on Equifax or Experian. So you want to figure out who’s negative the reporting first before moving forward. Which is why it’s important to check your credit report before completing the application is very similar to personal credit. Also, new tradelines could take anywhere between 30 to 90 days to appear on your credit reports. So just like before, if the tradeline doesn’t appear after 2 cycles, 60 days from the first payment, you want to call that vendor slash lender and request that they report that payment to all three bureaus.

And then once you confirm the status and it looks good on all three credit files, then you can move on to the next step. Now, that next step is going to be to apply for the tier 3 vendors that we’ve outlined. And when you find a vendor or a supplier that offers retail credit, read over the requirements to terms and fill out the application. At this point, you want to begin to increase your limits wherever possible, explicitly with the vendors you’ve already been using most. Ideally at this stage, you’ll have at least $1,000 to $2,500 in credit lines or vendor credit. And then also this often can be achieved by placing larger orders with those specific vendors and requesting a line increase after a month or two. So you can request that they do that based off just a phone call and then seeing whatever the special requirements are for a credit line increase, which is what you want to do.

So again, you want to be doing your due diligence on the front end to figure that information out. Also, what we want to do is when we’re purchasing these, these goods and services, we want to make sure we make an immediate purchase on the new account and remember to place a new order with each tier 1, tier 2 and tier 3 vendor, at least one order per month. Each order should be at least $50 plus. So that’s why I was saying, if you did the tier 1, you would have done 3 orders, same thing with tier 2 and same thing with tier 3. Okay? And in order to get some revolving credit at this stage, you need to pay your bills early and every month and then pay your net accounts in full every time, do not pay off the full balance. Don’t pay the full balance and basically you pay your net 30 accounts in full every time, but don’t pay the full balance if you have a revolving

line, right? So essentially if you have a revolving line, pay down to like four bucks, five bucks, but leave a little bit on there. And what you want to do is keep a running balance using this revolving feature to build credit faster, because it’s going to show an average monthly balance with you, having it with you, having an extensive, expensive thing to buy. So let’s just say you have a revolving line for $2,000 and you use a thousand of it. You want to pay it down to like 50 bucks, 25 bucks and just leave something on there and then make sure you pay the minimum due early. Okay? So this is what we want to be thinking about when we’re completing the applications, I’ll see you in the next video.