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3 Mistakes that Cost me $100k

#Make money
2025-08-11 12:108 min read

Content Introduction

In this video, the speaker shares critical lessons learned from past credit mistakes that impacted entrepreneurs. The speaker emphasizes the importance of understanding credit management and avoiding common pitfalls that can ruin financial prospects, particularly for those seeking business funding. Key mistakes highlighted include overutilizing credit cards, misunderstanding the variations among credit accounts, and applying to multiple banks, which can harm credit scores. By outlining personal experiences, the speaker aims to educate viewers on effective credit management strategies to help them build a strong credit profile and ultimately achieve financial success. The video concludes with an invitation to join a community aimed at sharing insights on credit and entrepreneurship.

Key Information

  • The speaker discusses the impact of ruined credit on their life and the lessons learned from it.
  • They highlight three common financial credit mistakes that can ruin entrepreneurs before applying for business funding.
  • The speaker shares personal anecdotes about past financial decisions, such as overspending on luxury items and how those choices led to significant debt.
  • They emphasize the importance of maintaining a low credit utilization ratio to ensure a good credit score and increase chances of getting approved for loans.
  • The speaker discusses the importance of understanding different tiers of credit products and the significance of applying strategically for credit to improve one’s financial standing.
  • They encourage the audience to learn from their mistakes and build a strong credit profile for future financial opportunities.

Timeline Analysis

Content Keywords

Credit Mistakes

The speaker shares their personal experience on credit mistakes that cost them significantly, totaling over six figures. They discuss three key financial credit mistakes made by entrepreneurs that can ruin their chances before applying for business funding. The speaker emphasizes the importance of understanding credit utilization, the types of credit accounts, and the consequences of applying to too many credit lines.

Utilization Percentage

The speaker explains the significance of keeping credit utilization below 10% for better credit scores. Higher utilization can lead to difficulties in getting approved for credit and indicate financial distress to lenders, emphasizing the need to be strategic in managing and applying for credit.

Types of Credit Accounts

The discussion covers the different tiers of credit cards, ranging from tier one, which includes reputable national banks, to tier four, which consists of credit builder accounts considered the least favorable. Understanding these distinctions is crucial for building a strong credit profile.

Credit Report Management

The speaker shares strategies for applying for credit in a measured way by establishing relationships with various banks and understanding the impact of hard inquiries on creditworthiness. They suggest finding three different banks per bureau to enhance approval chances and build credit.

Financial Literacy Community

The speaker invites viewers to join a free community focused on financial literacy to learn about personal and business credit, with the aim to empower individuals to avoid costly mistakes and effectively manage their credit.

Related questions&answers

What are common credit mistakes that entrepreneurs make?

Many entrepreneurs make mistakes such as overutilizing credit cards, assuming all credit accounts are the same, and applying too broadly to get credit.

How does high credit utilization affect obtaining business funding?

High credit utilization can lead to automatic denial for business funding as banks perceive it as a sign of poor financial management.

What is the best credit utilization percentage for maintaining a good credit score?

The best credit utilization percentage is below 10%; above that, it may negatively impact your credit score.

What types of credit accounts should I prioritize?

Prioritize tier one credit accounts, such as those from national banks, which generally offer the best terms and benefits.

Why is it important to be selective with credit applications?

Being selective prevents multiple hard inquiries, which can negatively affect your credit score and indicate to lenders that you are desperate for credit.

How can I build a strong credit profile?

Build a strong credit profile by maintaining low credit utilization, timely payments, and developing relationships with multiple banks over time.

What are credit builder accounts and how do they affect credit scores?

Credit builder accounts are designed for those with no or low credit scores; however, excessive accounts of this type can indicate to lenders that you are inexperienced and may lead to rejection.

How can I gain access to more personal credit?

You can gain access to more personal credit by improving your credit score and establishing a strong credit profile to demonstrate to lenders your creditworthiness.

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