313: Why Your Credit Score Is the Secret to Business Growth - #GrowYourLife

Hey, everyone. Thanks for listening to the Grow youw Life podcast. My name is Jeremiah Krakowski, and on this podcast, I help coaches, mentors, and trainers scale their businesses to make more money and reach the life they've always wanted. Now, I want to talk today about credit. I've not talked about credit before on this podcast or on this channel. It is not a credit repair channel. This is not a channel about getting credit or funding as far as that goes. But I want to talk about why it's important to get your credit game in order. As a business owner, one of the problems that I noticed, and I meet a lot of people, is that they say, I don't have money, I don't have funds, I don't have access to resources, credit to be able to build my business. And this is a problem because if you want to be successful as a coach or a mentor, you need to have access to capital. You need to be able to pay for different software, marketing, advertising, be able to outsource and hire teams and be able to do stuff like that. And oftentimes you might need to float it a couple of months until the revenue starts to come in. If you follow my channel, I talk about strategies and ways that you can use Evergreen offers to be able to create the kind of income that you want to create for yourself that's going to make you satisfy six and seven figures online. And how have we been able to do that in our businesses over the years? I've been in this industry for the last, oh, gosh, 22 years. 20, I would say is 22 or 23. 22 years. 2003. So when I got into this industry and I've learned everything there there is to know about it, I built multiple coaching businesses over the eight figure a year mark. That's over $10 million a year. And I can tell you unequivocally that if you want to be able to make the kind of money that's possible for you, or you just want to make six figures, but you got to have access to capital. You can hire a coach, you can hire a mentor like me. I can become a mentor to you to show you how to be able to get those clients, how to be able to get your offers out there to get more people buying from you and purchasing from you. And so that's what I love to do with people. Show them exactly what it takes, exactly what to do to be able to get people to become their clients in this marketplace, in this industry. So having access to credit helps with that. We all know what it's like to not have access to capital and credit. So I'm not going to talk about that. Okay. But I want to just paint a scenario for you of what it looks like. If you can start to repair that, if you could start to pay off your credit card debt, that's one of the first things that you could. That you want to do. You want to be able to cut back on your expenses. You're going to need to tighten up the belt quite a bit on those things and then find ways to increase your income to be able to do that. Now, one of the ways that can actually repair your credit, and there's a couple of things that you can do. I actually did this a little bit myself, is you can borrow money. Listen, hear me out. You can borrow money with. With a different debt instrument, whether it be a business loan. I was able to get this off of the revenue that I had in my business. So then it didn't go on my personal credit to pay off my personal credit. That boosted my personal credit scores. I kept everything tight until both were paid off. And then, boom, I shot way up in my. To an 800 credit score. And so because of this, what I was able to do is I was able to borrow over here to pay off over here. And within less than six months, it completely changed my financial trajectory. Allowed me to have multiple six figures in the bank. It allowed me to be able to invest as much as I want to in my business. It allowed me to have access to hundreds of thousands of dollars in capital that I could be able to build everything with and to. Now we're starting to deploy that. We're starting to see the results of that. We're starting to see the. That immediately. Now we've been able to bring in multiple extra six figures that is coming in because of being able to do this. And I've taken a slow and steady approach to it. What I do is I repaired my credit and I didn't go straight out there to try to spend the money or invest or things like that. I just had it as a war chest, an arsenal that I could deploy. When the good ideas start to come up, when I start to have clarity on what to do and my offers and things like that. And it's taken me about nine months to be able to figure exactly what that is out. And immediately I go, boom, let's do this. Let's take action on this. Because I have the capital, because I have access to the resources, because I have access to be able to do that. And then here's the great part about having access to credit that you can do is you can then roll this into other passive investments. And what this allows you to do is that you can actually cash flow your business from other cash flowing assets, such as stocks, bonds, real estate, things like that, depending on what market that you're in. And then you can use those to cash flow what you're doing in your business. So you have other streams of income that are coming in that are funded by your access to credit. And you gotta be careful with this because you can get over leveraged. And if you're spending the money and you're not keeping really good track of what's happening and the amount of profit that's coming in, you can lose your shorts. So be very careful with this. But having access to capital opens up so much opportunity for you that you don't have, because you can outsource when you need to. You can run an ad campaign. And whether it makes money or doesn't, it's not a stretch for you. You can pay for your software, you can pay for all these different types of things by being able to do this. And this is what the wealthy know how to do. The wealthiest people in America, in the world, use credit not to buy things, but to take. So you borrow $50,000, you take that borrowed $50,000 and you turn it into 150,000. And now you have $100,000 more from money that wasn't even your own money by simply getting your credit in alignment. Now how do you build up to those levels where you have hundreds of thousands of dollars that you have access to? Well, you got to show that you're responsible with a smaller amount. Generally, as you repair your credit, you'll only get access to maybe a thousand dollar credit card here or a $5,000 one there. That's okay. Here's what happens, because a lot of the banks make money on you. And this is, this is a real credit hack right here. They make money on you as you spend money. And even if you pay off it, they make money on the amount that you're spending. They make a percentage of that in merchant fees. As you spend on these cards, they will start to increase your limits. And it is an incredibly important thing for you to request credit limit increases, sometimes every 30 to 60 days. Because what will happen is they can increase it two, three, even four times to where you could have a card with a $40,000 limit, $50,000 limit. I got multiple cards like that. And Are you going to use it? No. And now it might make you feel uncomfortable that you have all this unused capital that you have access to. But what if you needed to use it or there was an opportunity that showed up and you could take advantage of it at any time that you wanted to. Now you got to stay responsible. You got to not be just a spender. You got to make sure that you're bringing in more than you're spending. But if you can do this and you do this the right way, you can create wealth for yourself. And so pay off your debt, start spending and then paying it down within your means on those cards, raise your credit limits. This will then increase your credit score even more. And then use the capital to invest, buy ads, create more cash flow for yourself in your business. Hire some people to do the things that you need to do instead of sitting around. Because you can sit around and say, well, I paid off on my debt, so now I don't have to worry about anything. And, you know, everything's great now. But here's the thing, you have the potential to leverage that with the knowledge that you have and the knowledge that I provide instead of my coaching programs and with what I share with people when I'm one on one, coaching them to be able to get better results than you could just on your own with just cash. And so this is why I encourage people, get better financial literacy habits. Don't just buy a bunch of stuff you don't need. My wife and I, we have access to this capital and we do not spend more than our money means. Now as our income goes up, we start to enjoy certain things. We bought a second car. I bought a Tesla Model 3 because it's only 300 bucks a month, cheap. You know, we're going to go on a vacation. First time we go on a vacation on our own in years with the family, as this money starts to come in and okay, if things tighten back up, we know how to do that, we know how to adjust, we know how to ebb and flow. We know how to live below our means and then utilize the access to capital to increase our means overall. And this is where that responsibility comes from. It's not the Dave Ramsey approach. It's not the like, while he's awesome, the Dave Ramsey approach really keeps you kind of operating in a poverty mindset. You got to get out of that poverty mindset and into an abundance mindset and realize that, listen, it is about your habits. It is about making sure that you have good money habits or you can get into a bankruptcy hole that you do not want to get into. But if you can have and develop good habits, you can leverage your income and your credit to make far more money than you ever thought possible. All right, listen, I'd love to mentor you on what to do, what actions to take, how to get more clients, what to build, how to create the kind of offers that generate sales in your business. That's what I help people with every single week inside of my Wealthy Coach Academy program, inside my VIP one on one experience. We'll talk soon. Have a good one. Sa.