Give Your Child a 700 Credit Score

**SPEAKER_1** (0:00)
I'm thinking in my mind, right, we got a lot of people, and it's like, as soon as you get to college, in the Marines, they sent you those right before you went off. But in college, they're giving you credit cards right off the rip. Is this something that young entrepreneurs could actually take advantage of?

**SPEAKER_2** (0:13)
No, I will say, as soon as you're 18, to let you know, I'm trying to change the way that people think of a credit and start applying for credit. So if parents start adding their kids at 16, when they're 18, they already have a $750, $800.

**SPEAKER_3** (0:30)
Yeah, talk about that. I saw that on Instagram. You was like 16 Yeah, can you explain that?

**SPEAKER_2** (0:34)
Yep, because it kind of goes in hand with your question. So it's like, if you have kids that are under 18 and at least 16, you can add them to your credit card, just like how, I think we say your grandmother, right?

**SPEAKER_1** (0:47)
My mom.

**SPEAKER_2** (0:47)
Your mom added you to your card.

**SPEAKER_1** (0:49)
Yeah, at 18

**SPEAKER_2** (0:50)
You got all that history, but if she would have added you at 16, when you turned 18, now you have at least two years of an active credit report. Because this is the thing, your credit report doesn't exist until something happens on there.
Your credit report, you're eight years old, you don't have a credit report. You know what I mean? So if you're 16 and your parents add you, your mom and dad each add you to a credit card, that should be the birthday gift. Hey, let me add you to a credit card, give it to you, start learning how to use it. You know what I mean? Now when you become 18, now you can get your own American Express, your own thing. Now you don't need these, and what else don't you need? Trade lines. Because what a lot of people, the reason, once again, I'm going to talk about trade lines a lot.

**SPEAKER_1** (1:29)
Not a big fan.

**SPEAKER_2** (1:30)
You know what I mean? Because people use trade lines because they want the history and the limits.
So start at a younger age. So now when you're 18, you already know, now I don't need those trade lines. I already got my own credit cards. And now you're just starting it to where when you're in college, now your parents are going to open up an LLC for you, open up this, do whatever. And now you can use your own credit. You don't have to have a co-signer for a car, for an apartment, for anything. And now we're changing the trajectory of when people apply, but how they apply, and more importantly, why they apply.

**SPEAKER_1** (2:01)
Yeah, parents, be responsible. That's number one. Be responsible with your credit, because like you said, this could definitely help your children.

**SPEAKER_3** (2:08)
So let me ask you this. All right, so business credit. Let's get into this. What are the steps? I know I wrote down some notes.
So you have to have a legit business, obviously. Tax ID. So explain this. Can you explain this between business credit, personal credit, and then I guess it's a hybrid situation. Like you said, Amex is technically is not full business credit or they still use your personal guarantee. So what is the difference between like the Amex situation where you still got to have a personal guarantee and just full-fledged business credit? Yep.

**SPEAKER_2** (2:41)
So, you know, your personal credit, you use your social, right? Social security number.
When you start a business, you get, you know, whether it's a LLC, a C Corp, S Corp, whatever the case is, you start a business and you get your tax ID. Now you're actually a business. And I want people to understand that because a lot of people think when they have a sole proprietorship, but they have a business, they really don't, cause you're still using your social. So you have to get a tax ID. And once you start building business credit, depending on what you're going for, you're going to have to use your personal credit, right? So there's a difference between cosigning a personal guarantee, which you guys spoke about before. You know, if you're personally guaranteeing something, you're using that to kind of like get approved for it, right? So what a personal guarantee on an American Express credit card, for instance, unless you're like a major corporation, like Facebook, Walmart, whatever the case is, you're not getting American Express without using your social, even though you have your tax ID too. Now, you're using your personal credit as leverage to ultimately get that American Express, the Chase and everything else. So the reason why I say it's not true business credit, even though it does report to experience business, is that you still got to use your personal credit for it, which is not bad.