Doing Your Research: How to Get Approved

Hello, and welcome to this module, doing your research and how to get approved. So this is going to be a pivotal module because I’m going to break down not only what the practical steps you need to follow to get approved. I’m going to give you the actual philosophy thought process in the actual tools to use and show you how to use those tools when researching credit cards specifically. So this week, this module is all about how we can start to continue to build upon the foundation that we’ve already built with establishing credit. So obviously in module, number one, I broke down how to think like the banks. So I’m going to go into more and more detail about what this really looks like, especially as it relates to credit card and getting lines of credit. Okay. So here is what we’re going to cover. So the first thing I’m going to get into is a credit card tier system.

So this is important for you to understand and even get, so that way, as you continue to start down this journey, remember, like I was saying, and we, I want to say that was week six, the road to 800, the whole goal when it comes to credit is to continue to build credit and ultimately use credit as a benefit. So that way we can get more out of it than the system is getting from us using it. So understanding this tier system and really how you go about using it is important. Um, in another module this week, I’m going to go into more detail about the tier system, uh, and really go into the specific types of cards that you can be using, how to use it. But essentially I’m going to cover the tier systems. Then I’m going to get into the credit profile requirements.

So that way, you know, and you know exactly what your profile needs to look like. I’ve already spoken about what you, when you shouldn’t be doing anything in this particular week or module, if you haven’t done the first seven weeks, I even covered that in the first module. So I think you’re good to go, but I’m going to even break down once you’ve done all those things. You are at a good place, what your profile needs to look like, I’m going to get into credit card research tools like I was explaining. So this is very, very important because you need to know exactly how to go out and use the tools, use the tools that are available to you before you apply. Okay, I’m going to repeat this, but you don’t want to go out and waste up applications. And you now know that inquiries, especially inquiries for credit cards kind of hurt the most that inquiry credit card application is going to drop your score three to five points and each time.

So we don’t want to go out and waste inquiries unnecessarily. So research tools are very, very pivotal. So I’m gonna cover how to use those then the credit card or the credit data points, really what you’d be looking for when you’re, once you’ve done your research and you’ve identified those tools, what data points I need to be looking for, then I’m going to break down something called the Chase 5/24, and really how that applies to all this stuff in why you need to know this because this is a, a pivotal thing you need to take advantage of, especially as you’re building your credit foundation. And then last thing I’m going to break down some tier three cards that you can take advantage of, or at least explain the key points of tier three credit cards. So that way you understand. So in the next module, we’ll go into more detail in terms of how and what type of cards are going to be the best fit for tier three.

Okay. So we’re going to go ahead and start off with that tier system. So now that you have done everything up to this point, now we’re at a place where we’re going to start building credit. Now, um, I have another program called credit card mastery, but this is kind of like a precursor of that. So I’m going to go into much more detail, but you still need to get this credit card tier system. So what are tier one cards? So tier one cards are what I call starter cards. 1.0, so with tier one card, you’re going to have an application fee and these cards are specifically designed for building credit. So they don’t necessarily have any type of underwriting requirements at all outside of the fact that you just pay their application fee, they extend credit and they may or may not report to all three bureaus.

So a great example of tier one credit cards are the cards that are recommended or the, or even the accounts I should say that I recommended the revolving accounts that I recommended and some of the cards that I recommended in week six. So all of those cards and accounts are examples of tier one cards. We have to start here to start building up a solid foundation. Then we have those tier two cards. So tier two cards, how did these work? So unlike tier one card. So the thing about tier one cards, I want to go ahead and add this. So like with those tier one cards and accounts, not only do they have an application fee, they force you to purchase something in order to legitimately report that on your file. So again, we use those cards, especially if we’re rebuilding for all the reasons that you already explained.

I mean, already, you already understand, and that I’ve already explained. We need to be able to build that credibility, build that history, show, that track record show that we have credibility. Then we want to move on to tier two cards. So these are what I call starter cards 2.0. So typically these cards are going to have application fees and lots of hidden fees. So, uh, these are cards that I suggested in the 20K blueprint as well. So an example of these cards wouldn’t be the, it would be more specifically the Horizon Gold card. The, the Indigo Card may be a secure card. Those are what we call tier two starter cards. So you can use those cards as cash, but they’re gonna have low limits. Again, you, you still have to get these cards and get these types of accounts to show that credibility.

So those, those are the first two tiers. So if you’re watching this, you already have these tier two cards. If you’re this week, you already understand it, but I need you to get the fact that those are tier one and tier two cards. They’re not, the sexiest the most beneficial they’re just literally designed. So that way we can get the algorithm and get that holy grail credit mix and get, start, start building credibility. Because again, it’s not just about getting the negatives removed. It’s also about establishing history, which you get. Now we have tier three cards. Now these are what I call beginner cards. Now this is, once you already have the first two tiers, or you already have what I call a clean glass and you already get placed, then you can start with these beginner cards. And unlike the first two tiers, typically these cards are not going to have no annual fee at all, which is really phenomenal.

Then once you’ve done the tier two cards or your beginner cards, you now will put yourself in position to where you can qualify for tier four cards, which are intermediate cards. So these cards start to get a little bit more fancy, and typically they are going to have an annual fee and they may, and then they also going to have a little bit more bonuses and perks than your beginner cards. Then again, we just keep on going down. We have our intermediate cards or card, then what we want to do, or what we want to understand is those tier five cards. So these are those premium credit cards. And with premium credit cards, we’re going to have a high annual fee. When you start getting into tier four and tier five, you already have an excellent understanding of credit. You have an excellent understanding of a cashflow control system, you know exactly how to use credit.

And you’re really just playing a game of credit to get the benefits that you can use. You’re not using credit really to go into debt. You’re really using credit to get any benefit that that Carter bank is offering, right? Because they’re betting on the fact that you’re going to go into debt and they charge you interest. But when you get to that tier four and tier five point, you don’t use them in that particular fashion. Okay. Um, and then we have tier six and those tier six cards are the most exclusive cards available. These cards are only invitation that you, you can only get an invitation to these cards and they have the highest annual fee. Okay? So generally speaking, these cards are for like celebrities, for business owners that have high expense loads. So those cards generally speaking, many of us won’t necessarily need because they won’t be relevant, but the, this is the card tier system we want to live.

Once we’ve done the first two tiers, tier three, tier four and tier five. However, I’m breaking this down and I’m explaining this to you because you may have applied for a tier four or tier five card previously, before you’ve even gotten to the 700 Credit Score Academy. Then you’re wondering why you were declined or why you didn’t get approved is because you didn’t follow the order. So in another module, I’m going to go into much more detail about the tiers, but you just need to get the fact that there is a tier system. And with this tier system, this is what you want to follow in terms of being approved now, credit profile requirements. So what are these now, when it comes to tier three cards and above, we already know that the first two tiers are going to give us approvals no matter what.

So during these speaking, those first two tier cards, they’re just guaranteed approval, but they don’t, they’re not the best cards when it comes to everything else and all the perks they’re really designed to build credit and establish credit. Now, when it comes to tier three, though, once you, once you cross that tier and you’re at a place where you’re considering tier three, which in week eight, you will be considering week tier three cards because you’re not completing week eight without completing all the first, um, weeks of this particular program and the fact that you don’t have any negative. So, um, the first thing is you want to have that credit foundation. So you want to have the 20K blueprint and 20K means 20K blueprint. And that’s basically the combination of those tier one and tier two cards. So at this point, you already have that.

You already have that established. Hopefully you’ve had it for two or three months. You’ve shown credibility. You’ve built up some foundation. You look like you’re a good risk when it comes to loaning you in, or at least extending because they’re not going to loan. We’re not going to, they’re not going to loan you anything. They’re just going to extend credit based off what you’ve demonstrated. So that’s why even on the front end with the tier one and two cards, I show you guys how to get approved for those larger limits with those cards, especially at those My Jewelers and New Coastal direct, because it’s going to help you with the tier three card approval. Doesn’t mean you’re going to get approved for that same amount, but it’s going to help you get approved for a larger amount, okay? Now, but the foundation is already in place.

We have this. The other thing you need to understand is we need to have at minimum. And, and this is like the bare, like we’re barely even getting in, like you’re running, you’re running to the airport and they’re about to close the door and you know, sneak yourself in, and you can’t even take your bag on a plane and got to check the bag. Like, I mean, you’re, you’re at the edge. So 690 minimum, and it needs to be on all three bureaus. So A3B means all three bureaus, and you want to have no negative items reporting on your credit file. So anything that’s negatively reporting on your credit file, outside of a missed a few missed payments. We’ll want some open accounts. That’s fine, but any negative we’re not going to apply for these cards. Will you get approved? Possibly. But again, why would you want to waste an inquiry? Right? We don’t want to waste credit inquiries when we’re applying for credit. Because again, that’s another thing that is going to hurt our score. And then unlike loans like credit, like auto loans, student loans, personal loans,

The banks,

And the financial institutions, and the credit bureaus understand the fact that you will be shopping for loans. So they really count. Let’s just say, you go and apply for an auto loan, even though you get your increase multiple times, they’re only going to count within that 45 day period, that one pull that’s going to import on your score, but unlike credit cards, they’re going to pull, they’re going to consider every application as a hard pull, which is going to drop your score every time. So that’s another reason why we don’t want to have any negatives on our credit report, especially when we’re going to apply for these cards, because we want to make sure we will be approved when we apply. Uh, the other thing, the other thing we wanted to make sure is we’re already we’re employed full time, or that we can state that on the application.

So that way we can look like we’re going to be responsible with the card and the credit that’s extended to us. And then, um, you want to make sure you have little to no debt to income ratio. So I said, no, like, no you, but I met in, Oh, so you don’t want to have any debt to income ratio when applying for these cards, because it’s just going to ensure that you get approved. And then I’ve already said this, but again, if you have current cards, you want to make sure that 7% is no more than 7% of those cards are reporting on your credit card when you, when you go to apply for the application. So when you go, when you look at your credit and you look at your utilization, if you just paid down your credit card balance, but it’s not reporting that you pay down your credit card balance.

The credit card company that you’re applying with does not know that you paid down your credit card. So you need to ensure that it is reporting, not paid, but reporting the fact that your utilization is below 7%. So if you have, if you happen to pay your credit card and you miss the reporting deadline, but you still make it on time, but it’s reporting a 40 or 50% utilization because you missed it. Then you need to wait until that balance is reporting 7% utilization. Now, this is a key factor guys, because you’ll say, well, I pay my credit card. Remember the automated underwriting system,

The automated underwriting

System. Isn’t going to know that you paid your credit card unless it’s with that particular bank. But I still suggest you have the utilization reporting at 7% or below when you apply. Okay? So these are the things that you need to be doing on your end before you go ahead and apply. Now, what are some of the research tools that we can use to be effective? Well, the first thing is,

Is going into research.

I’ve already alluded to this when it comes to the hard inquiries that research is more important than applying. So we want to ensure that when we do go to apply that we are not going to waste a hard inquiries. So it looks like I put that image then, but research is more important than applying. So we do not want to waste inquiries. Now there’s a few tools that I’m going to include right below this video. And I’m even to show, I’m going to show you how to use them briefly and how to think about using them and how to, I guess, use the philosophy behind them. So the first one is when you’re using these research tools, we’re going to be using these for the tier three cards, only tier three cards and above only. And you’re starting with tier three cards in this week.

Now the tier one and tier two cards, I’ve already done the heavy lifting for you. Um, but I’m just going to show you how to really use these tools to kind of identify what type of tier three card would be the best fit for you. Uh, the first one is something called US Credit Card Guide and US Credit Card Guide is like a Wikipedia for credit cards. The second one is credit pools and what credit pools. I have two of these credit pool websites. I have one that’s state specific. And the reason why I have one that state-specific is because credit bureaus pull different credit reports based off your state. So if you happen to notice that you have a 740 with Equifax and TransUnion, but you have a 690 with TransUnion. I mean, what, what the other one, well, but they pull Equifax only in Georgia and this, with that bank.

Then you want to know that. So that way you, you increase your chances of being approved. As an example, then there’s a site, there’s a site called Doctor of Credit. This is just an infinite resource of information when it comes to credit card. So this is just a resource you want to have access to. And then the last thing is a Churning spreadsheet. This one’s a little bit more advanced, a little bit more complicated, but again, it is a tool. So I’m going to go ahead and get out of this and show you these tools. So give me one second. And the first one we’re going to cover is US Credit Card Guide. Now US Credit Card Guide is really powerful because as you can see, it’s going to give you the ability to look at credit cards, but it’s not obviously not credit cards, but you can look at the credit cards by the banks.

Then you can look at business credit cards, like the whole list of business credit cards. Then you can do like the American Express business credit cards. So anytime I’m applying or research and cards always come right here. And I look at this just so I can get a feel for what the card is looking like and what the resource, what they, what they want. So, um, give you a case in point. So let’s just say, I want to look up a Chase card. Okay. Well, what it’s going to do is give me all the Chase cards that are available, and these cards are different tiers between tier three, tier four, tier five. And I can really quickly show you like this. I know the Sapphire reserve is like a tier four tier five card, but if we’re looking at this, um, let me find a really good one.

So this one’s clearly going to be a tier one. It’s this says Chase Freedom student. That’s like really, really, um, Nope, no credit history required. Um, so this is a, this one is actually fairly new. So if we were to click on this card, what we’re going to see is really the data points and the information about what this card is offering, the advantages, the disadvantages, the benefits, really everything there is to know about this card. So if we come down here and again, I’m not saying to apply for this card and just showing you how to use this tool. What they’re saying is they have a 5k offer. And really what this means is they’re, they’re saying you can earn $5,000 in ultimate rewards points, and another module I will cover what ultimate rewards points means, but just know that ultimate rewards points is Chase’s point system.

So when you spend your money, you get points. And again, you guys going to understand that point to the name of the game, but this is basically saying if you spend money in the, if you, if you you’ll get 5,000 rewards points, um, on one purchase after three months, which is, which is not bad. So 5,000 is probably equivalent to like 50 bucks, actually not 50 bucks, but that would probably be one and a half percent. So I’d probably be like five, five, 10 bucks. Um, but it’s basically saying, Hey, look, um, although this card is advertised as a cashback card, it actually earns ultimate rewards points. So what this is basically saying is you’re not getting any cash back, you’re getting rewards points. And then it’s also saying that there’s no annual fee. Then it goes into give, you know, give you some of the disadvantages of this card and it’s breaking down, like in real specific, like other, um, cards that may be more effective when and then you’re breaking down where you are points means it’s also breaking now something called the 5 and 24 rule, which I’ll get into, then it’s giving you like the recommended application times.

So it says you can get approved even with no credit history at all. So doesn’t mean bad credit history means no credit history. So, um, this is an example of how to research a card. Um, then if we went in to go over here and we went in to look at a, um, let’s just say a Discover card, then this is going to break us down the Discover cards, and it’s going to get into the weeds of the Discover card. So it has, it only has two Discover cards, a Discover card, um, with miles and then the Discover card that’s going to give you points. And really what we’re looking at. I’m going to pull up an American Express one as well. Um, what we’re looking at with these cards. So we have several different cards here between the tiers. This right here is an example of a tier three card, but what we’re looking for are the benefits, the disadvantages and the application time.

Okay. These are the main things we want to be looking for when we’re looking, when we’re using this, using this tool. Okay? So that’s US Credit Card Guide. This is our first tool. This is what we start when we’re putting together our list of cards that we’re considering applying for. Now, the next one I want to cover with you is Doctor Credit. Okay, now this link is right below the video. So you’ll notice that US Credit Card Guide is right here, you can just click it. It’s going to pull right up. Doctor of Credit is right there, but Doctor Credit is powerful. And what, what I’m, what I’m linking to is a credit card application reference guide. Now what they’re doing, or what he’s done is he’s given you different, specific, you know, cheat sheets and how to things on how to, how to use it.

So we’re saying have it, before you apply, here’s, here’s a list of turnable credit cards, um, questions to ask before applying for your next card, listed credit cards, the instance that issue credit card number or part into an approval. Um, so there’s several different things to consider before applying. Then we have some things about behind the scenes, how credit cards, you know, make money. And then they go into why credit card won’t allow certain things called churning grace periods, bonuses, sign up bonuses, best credit cards that have timed out bonuses. So again, you could get into the weeds of this, the moral of the story that I’m looking to explain to you is it’s just going into it even goes into pre-qualified offers, um, network specifics, Wells Fargo. So Doctor Credit, this, this right here goes into high-level stuff about cards, but it also what it does. And I’m pretty sure when you go over here and see if I can find it credit card knowledge, knowledge-based fraud, alerts, acronym.

Um,

I’m pretty sure there’s a way that you can know, um, pulls.

So Doctor Credit just has a lot of information. Um, I’m not going to spend too much time on here because I included the link, but what, what you’re using this for again, is to get as much information about, uh, much as much information upfront as possible before you,

Um, pulls. See if that pulls up. Okay.

American Express pulls back credit card issue. So this is a good one credit card issuers that combined multiple increase. I’ll cover this in another, another week in another module, but it’s just explaining different, different just information, um, on credit. So again, you can get into the weeds here, but Doctor of Credit is a really, really powerful tool to use, especially when you’re trying to do research. So we’re just starting to say, look, which credit card, which credit card issuers, combined inquiries, you know, it’s explaining how to do that. The warning, how to apply for credit card multiple times. Once again, this is something that I didn’t want to cover, but this is just an example. All right, then the next one we have is credit pulls. Okay. So credit pulls is relevant because against this credit pulls, it’s not like 100%, it’s just empowering you with the information.

So that way you can likely put yourself in the best position to be approved. So what you would do is number one, you’re going to select your state. And then I would just do all three bureaus to keep it simple. I’m going to just select yes. And then the approval period. You want to do a longer approval period. So I would do where I would do January through the current date in which you’re doing this. And then I would just hit update. And then it’s going to give you all the credit pulls in your state. If there are any that that’s shown here. So we’re showing that there’s, these are the there’s only three here, so I’ll, I’ll cover it, but it’s basically going to say, discover it. A consumer was in Georgia, they applied 03 13 2020. Their score was a 550 their credit limit to get approved for zero.

Okay. Um, doesn’t like they was a secure card. Then we have a Chase Southwest Business Premier, it looks like it was Georgia Equifax. The credit Bureau 806 credit score and limit was 15,000. Then we have another one Navy Federal American Express, which that sounded like a charge card, 835 credit score, no limit. And the reason why it says zero limits, because that probably doesn’t have any type of limit. But what I would do is probably go and show you 2019. So let’s do 2019 January 1st, one, 2019 to December 31st. So that way that gives us a longer timeframe to pull from. So I would probably do. Yeah, I would do a whole year stuff. Doesn’t change that often.

So I’m going to hit update and then it is going to give us a larger pull of applications. So once it’s done refreshing, it’s going to show us much more results. So again, this is just saying, Hey, look, this is synchrony. This is Apple. And this has given us a feel for in our specific state. What, what, what happened when that person applied? So again, it’s just a cool tool to use. Um, sometimes information may or may not be as relevant because it’s really dependent upon your state. So that’s credit pulls. There’s another one that’s really powerful as well. It’s not state specific. It’s by card specific. And I’ve included a link right here, and it’s going to give you like a high level overview, actually me go back over and credit cards by state card. All right, here we go. So this one’s going to give it to us, give it to us by card.

So really there’s nothing you need to do once you get to this particular, um, site, it’s going to start giving you not every credit cards, but it’s going to give you some of your tier one, some of your tier three and tier four cards. So most retail cards are going to be more kind of like a tier two, um, because they may have those fees are going to be more like a tier two tier three. I really wouldn’t waste my time on retail cards, but it’s just saying, Hey, look, if you apply for this Walmart card, it’s saying that the approval percentage is 87% average household income is 69,000. The average limit was, was, um, $676. And this showing you the scores between Equifax ranging in experience. So this one’s a little bit more clear to use. It’s just not state specific. Then we can come down here.

We see that there’s a Lowe’s card. Um, the average limit was $1,500. Average household income was 73,000, and this is the average score Macy’s card. Again, stay away from those cards. Again, this Delta card is more of like a tier four card and I’ll cover this, but you can see the average scores and then the average limit. So what this is showing us again, here’s another one. This is an example of a tier three card American Express cash every day, 694, 711, 704. And average limit that they approved for is $2,700 per our approval percentage is 61%. And what you want to do is, again, before you apply, you do what I’m doing right now, you do your research. Then it even has the people who apply. And it has a whole list explaining like what, the amount that they were approved for.

And then if they were denied, um, you know, all that good stuff. So it’s all here, right? So really, really powerful, really, really powerful too. So if I go back, I think you get the picture that every card is on here, but there are several cards that you can look into to see Discover Chase. So again, this is more of like a Chase historically is going to give the lowest limits. This is what I’ve noticed. I meant Chase Capital One. They’re going to get some of the lower limits. So again, here’s another Citi card. Um, Care Credit is a really good one that I highly recommend people get. Um, once you’ve gotten a really strong score because it’s necessarily, it’s not necessarily credit that you can use anywhere else, but credit care credit is going to give you the ability to like use it like at a dentist office or a doctor’s office or anything like that.

So again, you can go through these cards and see, so here’s an American Express card here. This is definitely a tier five card. Um, but you can go through all of these cards. And again, it’s just a resource tool. I think this one’s a little bit more detailed than our previous one, again, that every card is going to be on here, but it’s a tool to definitely use the last thing I want to cover. Um, let me make sure I’ve covered them. So their credit tools. So the last, the last thing I want to cover on this particular research tool is the churning site. Now this is, this is a Google doc, and this is, this is very, very advanced, but it’s really just a makeshift version of the last two things I just showed you. And the only difference between this and the other one is it just kind of goes into the fact that you can sort the applications that were approved that were applied.

You can see the actual results i.e. did they get approved or did they get denied? And then what was the bank? So even if you wanted to just search this, see if I can remember how to do this, you really would just click on the actual cell. And then you can just basically sort from A to Z. So if you wanted to search sort based off, um, Wells Fargo at the top, it’s going to give you all the Wells Fargo cards. Then it’s going to tell you, uh, was it an instant approval? Did you have to go through reconsideration? What was the score? What Bureau did they pull? It looks like it was Experian. Where were they at? Southern California? What’s the average age of the accounts. Again, six years stated income. So again, it’s, it’s the same exact as the last two.

It’s just another tool to use, um, in your, you know, when you’re doing your research. So if we go back here and we want to sort it from A to Z, that means it’s going to start with the American Express cards at the top. Then it’s given us the type of American Express card that was applied for, and then whether they were approved or not approved. So American Express generally is going to approve you, especially if you already have a good relationship with them, but you need to follow the tier system first before going to an American Express card. All right. So all of these are powerful tools to use when doing your research. These are tools that I use still to this day before I go now, go out and apply for credit only because I want to make sure I get approved. So again, you can see even when American Express though, the high, the high limits of scores, okay? So this is how you use those tools. Now let’s go ahead and get back over to this particular PowerPoint. And that is covered all the research tools. Now let me explain the Chase 5 and 24 rules.

Yeah. When you’re, when you’re doing your base,

You almost highly recommend that you start with Chase cards first, because Chase has something called a 5 and 24 rule. Now, Chase historically is going to give you the largest limits. They have the best or one of the best point systems out of all the credit card companies. There are. However, Chase created something called a 5 and 24 rule, which means if you opened up 5 or more credit card accounts, new credit card accounts in the last 24 months, you will automatically get rejected no matter how good your credit score is. So even if you have

Excellent credit, you can have an 850, if you’ve established 5 credit cards and you go to apply at Chase automatic denial. So that’s very, very important that you understand that. Then it’s very, very important that you may be sequenced. The fact that you get approved for the Chase cards on the front end. Now in another module, I’m going to cover like the different application requirements. It’s per bank, but chase specifically, we already know doesn’t matter if you apply for more than 5 accounts, you’re going to be denied. Um, also the thing you need to understand is that close cards, if open within the last 24 months are going to count towards that 5 and 24 rule. And when I say 5 and 24 rule, really to be clear, you have opened up one, two, three, four, five credit card accounts with banks in the last 24 month timeframe.

Um, authorized users count towards this limit as well. So again, like I was saying previously, we want to use, we want to use the authorized user method. When we have our already done all the cleaning of the glass, we’ve got the foundation in place. And now we even we’ve established some chase cards because we don’t want that authorized user to count towards our limit. Can we get the authorized user removed? Yes. Can we call the bank to get reconsideration? Yes. Again, we’re going through the automated underwriting system. So we want to really put ourselves in the best position to get approved. Then we have, um, there’s a Chase credit card, subject to 5 and 24 rule cheat sheet right below this video. So I included this cheat sheet, but basically every single credit card at this point is subject to the 5 and 24 rule.

If it is issued by Chase bank. So it doesn’t matter or what the card is, they’re going to subject it to the 5 and 24 rules. Um, but here’s the good news. And you probably like, man, what about those cards I applied for already. Tier one store or department cards don’t count. So the, My jewelers, New Coastal Direct, The Hutton Chase, the shops simply, Oh, those cards or those accounts don’t count. However that Indigo in that and that, um, the Indigo card and, and or the Horizon card, which is why I said just apply for one, don’t apply for both of them. Those will count towards the 5 and 24 rule. So, so now you still have four additional spots available to apply before you go out and you try to get those, those cards, which is perfect because you’re not going to cause, cause the card is going to recommend they’re going to be tier three cards in, um, a good majority of them are going to be chase cards right below the video.

There’s an article that goes into much more detail about the 5 and 24 rule. This is that article right here. And it just really goes into what I just covered. But this article goes into it. Now here’s the thing you need to you need to know to, even if you go to a Chase bank, the Chase employees, aren’t going to notice. So if you might, you might go in here. So I talk to a Chase employee and say something about 5 and 24 rule. Some of the Chase bankers may know like the business bankers may know, but the majority of the traditional bankers, nothing against them. They’re not going to know because Chase, isn’t going to publicly say this. This is just something that the credit card community happens to understand. So this article, um, if you, if you care to read, it is right below this video goes into much more detail.

But the moral of the story is you get the 5 and 24 rule. All right. So that’s that. Now the next thing I want to go ahead and break down and cover is the credit data points. So you need to understand what tier credit card you’re applying for first off. So we need to know, okay, what kind of card is this? So I’m going to break down in more detail how the tier system works per card, but you need to know that the next thing you need to know is do they have a preference or do they have a preferred Bureau, some credit card companies like Equifax, more than Experian, more than TransUnion. I showed you the data point sheets to kind of identify that from a high level based off your state. And then the reason why that’s relevant. Because if you have a stronger file, for whatever reason, with one of the bureaus, then there’s a stronger chance you’ll be approved.

The other thing you want to know is do they have application requirements like the 5 and 24 rule? So obviously if you have five credit cards, no matter how good your credit card credit is, you still will be denied. If you apply for chase, what state are you located in that thing that goes, without saying that goes into account what Bureau they’re going to be pulling, then what’s the average limit they approved for. So I showed you a tool, a tool, two tools. That’s going to show you how to see what that average limit is. So that way, you know, Hey, look, I’m looking like I’m gonna be able to get a larger limit based off me applying here and based off the foundation I’ve put in place. So maybe if I’m in between two cards, I would highly recommend apply for the card that you’ve done for the research.

That’s going to give you the higher limit. And then last is, you know, what have you found using a research tool? So obviously you will find a card based off the next slide I’m going to break down, which is the tier three cards. Now, when it comes to tier three cards, I’m going to give you a high level because now we’re going to be using our research tools to start using and applying this towards tier three cards. When I get into the tier card system in great detail and how to fill out credit card applications, how to understand the different terms and the tools we’ll get into this. But essentially all tier three cards are going to work this way, no annual fee. So when we’re going to these tier cards or these tier three cards, the reason why I call them that or beginning cards, because they’re not going to have an annual fee, they’re also going to have a 0% introductory offer for six to 18 months. So this means when you apply, you get approved with that card, which is why it’s pivotal, that you apply for these cards. Once you have the clean glass and you have a solid foundation, they’re going to give you 0% interest. So these cards are really typically good for balance as well. But many of you guys aren’t even going to have to do this because I’ve taught you so well about cashflow control.

Then what they’re gonna do is give you cash or cash equivalent bonus offers. When you establish a car with them, meaning if you spend 200 bucks in the first three months or 500 bucks in the first three months, we’ll give you 5,000 or 25,000 points, or we’ll give you a $200 cash back, whatever the case is. But that’s an example of a benefit of a tier three card. The other thing is limits are going to vary typically between 5 to 2,500, I’ve seen people get approved for limits of as high as 5,000, but generally speaking, those limits are going to get approved between that 5,000 to $2,500 range. And that’s totally fine, because again, this is cars that we can use like cash. And we want to make sure on the application that we put down, that we are employed or that we have some type of income source. So that way we can increase our chances of being approved. So that is our tier three cards. This is this module. Now you have a really, really powerful set of tools and you understand the mindset in terms of researching cards. So let’s take action and I will see you in the next module.