THE EX LOANSHARK’S CREDIT CRASH COURSE

Here’s why I’m qualified to talk about this: I’ve sold close to 1000 loans totaling
near $40M in Revenue. I had a close rate of 68.7% when I left, and was a top 10
revenue generator in a company of 200 people at 23 years old.

Introduction

So you want to buy that $5M house and the fleet of Supercars for yourself when you're a
multi millionaire... but don't want to pay cash up front, because you can get a WAY better return
using Other People's Money (OPM) and investing in Stocks, Crypto and Real Estate.
You need to have a basic understanding of Credit and how it works.

The way we used to approve business loan applications was simple:

- Gross Income (or Revenue)
- Credit Score (Personal & Business)
- Prior Credit History
There's a lot of other factors but those are the main ones.

Let's focus on Credit Cards because they're the most straightforward.

You've got 4 types:

- Business Cards
- Charge Cards (American Express Platinum & Gold)
- Unsecured Personal Cards
- Secured (Don't even bother)
Short note on Business Cards: These require an EIN and Tax information via IRS, if you
can prove income in your business start working on this via a Business card like Chase Ink with
NO ANNUAL FEE.

The more access to credit you have, the lower your total utilization percentage rate will
be, which helps your credit score, and looks good to Lenders when they look to approve you.
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If you've got access to a ton of credit it means you're a reliable lender (think social
proof).
Personal CC's have different benefits.

Charge cards, like the Amex Platinum & Gold don't affect your credit utilization rate, but
charge you a ton of interest if you don't pay on time.

Lesson 1: Put all spending on Amex for points to travel and eventually fly for free
Lesson 2; Make sure you pay your bills in full before the due date when you're trying to build
credit and get access to better cards.

Lesson 3: You want to diversify your credit cards (lines). When lenders look at your Credit
Bureau Report (CBR), there's a list of line items...
That show the Company, type of loan (Revolving Credit in this case) and your balance
compared to the available credit line. This is what they use mainly to make the decision on
approval manually and algorithmically.

Get a starter card if you're younger or a student - Discover IT works well, and was my
first card. Had a $2K limit. Put your Netflix or Spotify/Apple Music subscriptions on there and
pay it off in full if you're building credit.

You want to put all of your spending on credit cards, because you have something called
purchase protection. If someone steals your debit card and spends your entire life savings,
you're not protected by your bank.

CC's allow you to recover stolen funds if this happens.

And you don't get rewarded if you spend directly from your checking account on a debit card,
while you'll get cash back (never pay full price on items) and also are incentivized by travel
rewards.

To start, you want to get 0% Intro APR Credit Cards: These cards are the Discover IT,
Chase Flex, Chase Freedom, Capital One Quicksilver, etc.
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These will allow you to run up a fat balance and not pay ANY INTEREST for over a
YEAR.

(Incredible in a pinch if something happens).

Next, you've got your travel rewards cards like the Chase Sapphire Preferred and
Reserve & Amex Platinum & Gold.

They've got different point bonuses but I'd recommend getting both Amex Cards and a
combo of the Chase Cards.

Just with this combo, your access to available -

Credit should already be over 5 figures ($10K) minimum.

Mainly you want to load up on the 0% No Annual Fee Cards so your CBR shows that
lenders like you and want to give you money.

The beauty of this is you don't actually need to use them besides getting the intro
rewards.
Personally I had to use my Capital One a lot in Europe because no one took Amex, but still
booked ALL travel through Amex online to take advantage of the free points and room upgrades
at 5 star's etc.
Also, spending on CC's allows you to delay whatever bills you just paid in the present by about
1 month (28 Days) usually. Gives you some time to make more money, so it doesn't hurt as bad
when you pay your bills the month later.

Just make sure you pay on time.

Repeat this process of getting a new card every 2-6 months, and obviously make more
money in your business or job to increase your limits.

Also make sure you request limit increases every few months to raise your access to $.
When you apply for cards, the limit they issue you is a percentage of your gross income, and
you can increase this through the company by applying for limit increases online or over the
phone.
 THE EX LOANSHARK’S CREDIT CRASH COURSE

Just be careful so you don't trigger a financial review and you've gotta provide docs.
Can always utilize 0% balance transfers to pay off other cards you spent a shit ton of money on
and churn them on 0% interest for 12-15 months. (Capital One, Discover, Chase Freedom
Unlimited/Flex) etc.

You want to get on this as soon as humanly possible. Credit is one of the things that
compounds over time like your stock account.

So, when you go to buy Real Estate and the bank sees lenders like you, High credit
access, low utilization, multiple LOC's (lines of credit) -
You'll have a higher likelihood of approval.

This goes the same for buying luxury cars and getting loans for your business as well,
since they take Personal Credit into account for Business LOC purposes.
Keep in mind as well - the inflation rate right now is HIGH due to the US Government never
turning the money printer off.

When buying hard assets: Houses, Cars, and Cash Flowing Investments, utilize
leverage (loans).

Put down as little as possible, because if you get a 3% loan, there is a VERY high
chance the inflation rate will outperform that. Meaning the loan is basically free.

Like I said earlier as well... If you buy a $100K car and put $10K down, you can put $90K
into investments,
Which obviously can outperform the loan cost and increase your total profit margins
including inflation.

Thanks for reading, and welcome to the Credit Crash Course.

-David

P.S. Make sure you sign up to my Email List if you’re not signed up already, and give me a
follow on Twitter @youralazyfvck.
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KYC/KYB - KNOW YOUR CUSTOMER & KNOW YOUR BUSINESS

All credit organizations use this, and is literally the most important thing for you to get approved.

When you file your taxes and apply for credit, you start to create a credit profile.

Listed below are the parts of KYC and KYB. You want to have documents that verify the
information just in case you need to submit them to verify your status to be approved for credit
lines.

Make sure you keep all Verification documents on file in person or in a backed up cloud so you
don’t lose them.

By the way, when you’re applying for credit - make sure the information on your application
MATCHES what you have on your verification documents like your Driver’s License, Taxes,
Business License, Sales Tax Certificates, etc.

Parts of KYC - Know Your Customer

● Full Legal Name - Driver’s License, Passport, or Photo ID

● Social Security Number - Social Security Card
● Street Address - Driver’s License or Photo ID, or Utility bill with your name dated within
30 days.
● Phone Number - Phone Bill dated within 30 days.
● OFAC - This is automated, don’t worry about this. As long as you’re not on a No Fly List
or criminal fugitive you should be fine.

Parts of KYB - Know Your Business

● Legal Business Name - Taxes, Business License, Sales Tax Certificate, Vendor’s
License, Reseller's Permit, Operational License from State/County
● Legal Business Address - Business Insurance, Taxes, Business License, Sales Tax
Certificate, Vendor’s License, Reseller's Permit, Operational License from State/County
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● Secretary of State “SOS” - Must be active through the State Department - Secretary of
State filings - this is like $20.
● Proof of Ownership - Verified through Articles of Incorporation, EIN Identification
Papers from IRS (Sole Proprietorships ONLY), Schedule K1 (for corporations/LLC’s with
multiple owners), 1040 Schedule C for Single Member LLCs and Sole Proprietorships.
● EIN (Tax ID Number) - Found through the IRS Website when filling in for a tax number.

IMPORTANT: Make sure whenever you move if you don’t have a permanent address, this
information is correct and matches so everything verifies in the Credit System.
CREDIT CARD CHURNING

I’m sure there’s going to be questions on churning. I’ll cover these in a few paragraphs.
Just apply for a new 0% card or a card with no annual fee and intro bonus, hit the
minimum spend for the bonus and keep it open. Getting as many of these as possible is the
easiest way to increase your total credit limit, lower your utilization, and increase your average
account age.
Since these are major components of your credit score, you’re going to be taking a 4-8
point hit usually whenever you get a new card. Just pay it off and have a 0-10% utilization rate
on your revolving credit lines. This is incredibly important and very straightforward.

A TYPICAL PERSONAL CREDIT CARD STACK PROCESS, STEP BY STEP

IMPORTANT: You want a VISA or MASTERCARD as your second card due to international
travel. Most places overseas don’t accept American Express or Discover Cards. Which is why
getting a Chase Freedom Unlimited is the best option.

If you’re just starting out, and don’t have a ton of credit history established, start with a
Discover Cash Back Card.

1. Discover IT Cash Back, or the Student card if you’re a Student - Limits should be
upwards of anywhere from $500-$2,000
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Your second card should be decided on whether you want to start earning points or not.
There’s a couple routes you can go. My second card was the Gold American Express, but I’d
recommend going a different route at first which I’ll explain.

2. Chase Freedom Unlimited - Allows you to start earning points and is a 0% interest card
with No Annual Fee. Because Chase cards are harder to get, you’ll want to have some
credit history established. You’re also able to earn points on all transactions when you go
overseas.

3. American Express Platinum (or Gold, then upgrade ASAP) - I recommend getting
one of these as soon as possible. Not only do they not affect your utilization rate
because they’re technically classified as Charge Cards, but the Platinum card has
ridiculous benefits and perks when compared to the Gold Card.

Not only are you going to be able to have access for you and a +1 for Amex Centurion
business lounge access, you’re also going to get Priority Pass, which gives you access
to all of the Priority Pass business lounges across the entire world. This access alone for
free drinks, food, shower access, among other things is worth the $595 annual fee
alone.

Also with the platinum card you’re eligible for free room upgrades whenever you book
your hotels via the Amex Website. There’s also perks like $100 in hotel credit for room
service, massages, and food, and you can’t beat getting upgraded to a suite or way
better room in almost every major city in the world.

4. Capital One Quicksilver, Citi Double Cash Rewards, or Chase INK Business -
Another 0% Interest Card with no annual fee and cash-back, I’d recommend getting this
4th after your travel card just to boost your available credit lines and lower your overall
utilization. Great to have in a pinch if you need to transfer a balance. Whichever one you
get here, just grab the other one next at number 6.
 THE EX LOANSHARK’S CREDIT CRASH COURSE

NOTE: The Chase Ink Business is a great no annual fee card to have. Develops your
relationship with Chase along with also being a personal use card. Put your cable and
internet and recurring on this and just set it to autopay.

5. Chase Sapphire Preferred/Reserve - Very similar to the Amex Platinum, can be used
overseas and would recommend having the CSR due to having a higher credit limit, also
gives you access to lounges etc. Great to stack with the Chase Freedom Unlimited card
you got earlier. These have an annual fee but will be worth it due to travel compensation
etc.

The reason this is your 5th card is because Chase has a restriction where you’re only
able to get 5 cards in 24 months or they won’t approve you. This will be your 5th card so
you can take advantage of both American Express Platinum benefits and Chase
Sapphire Preferred/Reserve benefits simultaneously.

6. Refer to Step 4 - If you grabbed the Capital One Quicksilver, get the Citi Double Cash
Rewards or vice versa. Just increase your available credit lines. If you got the Chase Ink,
just get one of the other ones depending on bonuses.

Moving Forward

You’re going to have about 8-9 Cards at this point if you’ve done this almost 2 year
process right. You should be paying off all of your cards to build credit history. At this point, you
should have close to 6 figures in available revolving credit lines, with 2 annual fee cards - those
being the Amex Platinum and Chase Sapphire Preferred (CSP) or Chase Sapphire Reserve
(CSR).

IMPORTANT: All of your spending should be going on the Platinum or CSR/Freedom Unlimited
depending on points bonuses.

If you want to continue down this path, every 2 months you can pick a different card to
do spending on and then request a limit increase to boost your total revolving credit lines even
more.
 THE EX LOANSHARK’S CREDIT CRASH COURSE

Continue to get $0 Annual Fee cards with signup bonuses and just pay your rent or buy
groceries with them and just pay them off in full. There’s a ton of them out there so take
advantage based on availability and whoever you like to shop with. Amazon has one, amongst
others, but it’s going to be incredibly easy for you to get to over $100,000 of available credit for
pretty much $1000 a year, which you’ll be compensated for through travel perks.

Having access to over $100K+ liquid at any time that you’re able to balance transfer (be
careful with this by the way), allows you to quite literally bend reality to your will.

BUSINESS CARDS

These are quite self explanatory:

1. AMERICAN EXPRESS PLATINUM - Points for Ad Spend + All Platinum Card Benefits

2. AMERICAN EXPRESS GOLD - Points for Ad Spend

3. CHASE INK PREFERRED - Just take advantage of Intro Bonus and relatively low $95
Annual Fee

4. LITERALLY ANY OTHER CARD WITH NO ANNUAL FEE

Moral of the story, just stack these cards, Amex Platinum + Ink, then Preferred/Business
Cash/Unlimited.

Business Loans are going to follow this, and are entirely more complex. Refer to the
section on KYC/KYB and include that information when applying for business loans through
Banks, Financing Companies, and the SBA. I’m going to be covering full documentation loans in
the section below.

BUSINESS LOANS - INTRODUCTION

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Standard business loans are classified as “Installment Loans” similar to mortgages.

These differentiate from Revolving Lines of Credit, which you’re able to acquire from your Bank
based on your relationship with them and credit history.

We’ve got two types of Small Business Loans - Merchant Cash Advances (MCA’s) and
Long-Term Loans.

Don’t mess with MCA’s. They’re short term capital loans with EXTREMELY HIGH
INTEREST, along with Daily or Weekly payments. Just be aware once you start acquiring
massive amounts of credit, these goons will reach out to you offering money at obscene interest
rates. I used to sell a form of these with Weekly Payments, up to 52 week payment terms, but
with very competitive lower interest rates compared to the market. It was a great product while it
lasted and I made a ton of money selling it.

Selling a high interest loan to business owners who really didn’t want it is how I
developed a world-class sales ability.

BUSINESS LOANS - DOCUMENTATION & APPLICATIONS

Most business loans (BL’s from here on out), are going to require different types of
documentation depending on if you’re applying through your bank, a financing company, or the
SBA (Small Business Administration). Some banks are authorized to administer SBA loans and
can make the process easier when you have a relationship with them. Keep this in mind moving
forward when you look to apply for financing to scale your business.

Here’s what you’re going to need for most Loan Applications:

1. Proof of Income - Primarily Tax Returns, Bank Statements, Pay Stubs, Stripe/PayPal
Revenue documentation, etc.
2. Tax Returns - Have your last 2-4 years of Tax Returns, mainly your Full Business Tax
Returns and Personal Income Tax Returns with all pages
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3. Income Statement or Profit & Loss - Make sure you have correct documents on this
through a spreadsheet or through things like Quickbooks. Keep the last 2 years on file
and make sure you update these quarterly. Some banks or financial institutions will ask
for one of these updates through the previous quarter of which you’re applying
4. Balance Sheet - Just have the last 2 years of these on file similar through quickbooks.
Balance sheets are updated yearly so if one of these Loan Officers asks you for a
balance sheet updated through the quarter tell them to kick rocks, because they’re only
updated yearly, and send them the previous year.
5. Business Bank Statements (Also Potentially Personal) - Have the last 4-12 months
on file, these are easily downloadable from your online banking accounts - also include
any and all Transfer Accounts you use for yourself and the business.
6. Proof of ID & Social Security Card, KYC/KYB Info - Keep these on hand just in case
they’re requested. Refer to the KYC/KYB section if you have any questions on this.

Getting your documentation right is literally the entire battle when applying for financing.
Do me a favor, and don’t give the loan officer a hard time and have them chase you down for
documents. It’s annoying. Send it to them on the first call. You’re able to get through credit and
receive a Loan Offer and not move forward with it. Also, this goes without saying, but don’t sign
a contract before you’ve passed credit or know that you’re going to move forward.

Make sure to keep a file on your computer with all of your updated documentation and
set a calendar reminder to get your documentation straightened out if you move residences or
business addresses change.

NOTE: Make sure you ask how long the offer is good for when they go over the
numbers with you. If they try to beat around the bush, the offer is usually good for 28-30
days. Don’t let them pressure you into moving forward because it’s the end of the month
and they have to hit their Sales Quota before it resets to 0.

Take it from me, I used to clean house telling people their offer was going to expire and I
needed a decision.
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SIDE NOTE: A good loan officer who knows what they’re doing will ask what your time
frame is. With BL’s specifically, you’re required to put your monthly revenue. An absolute Loan
Shark will systematically ask these questions.
● “Just because it’s our first conversation, could you tell me a little bit about your
business?”
● “Did you have an idea of how much money you were looking to get?” (Let’s use
$100,000 for the example).
● “Because I need it for the application to pull up a potential offer for you, what is
your monthly gross revenue?”
● “Out of curiosity so I can make the best recommendation possible, how much of
that is profit?” (Let’s use 50% profit margins for this example).
● “Now, you guys are doing $XXX,XXX per month (let’s use $100K for this
example), what happens to that number if we get you the extra $100,000 you
were looking for? What would that do to the monthly revenue? Would it get you to
about $150,000 per month?
● “Ok, so with an extra $100,000, you’re going to be able to get to $150,000 per
month revenue, and $75,000 of that is going to be profit… right?”
● “So [First Name], if you’re going to be able to make an extra $25,000 per month,
how quickly do you want us to put the money in your bank account? What type of
time frame are you working with here?
○ Right here is where you’re about to get closed. I used to loop back after
presenting my offers with:

“Well based on the numbers, this is an absolute no brainer to me.”

And then stay silent until they talk. Rarely were there deals where I
gathered all of this information and didn’t close. I left my job as a Loan
Officer with a 68.7% close rate, which was the highest on the entire team.
The only deals that wouldn’t move forward at this stage were ones that
were declined due to credit profile reasons, never sent documentation or
ghosted, or ones that blatantly told me they were going in a different
direction and didn’t need the financing because checks or accounts
receivables came in.
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Also, don’t apply for financing if you’re not going to use it within 30-60 days. This wastes
your time and the Loan Officer’s time because if you’re adamant about not moving forward soon
they’ll get annoyed, and you’re most likely going to need to go through another credit application
in order to receive a new offer.