The Difference Between Credit Scores & Credit Reports

When people talk about “fixing credit” you must understand that they’re actually speaking of two different things at once.

Your credit REPORT is not the same as a credit SCORE.

The latter is only useful in struggling. Its what we call a “broke masker”. You may think you’re getting wealthy but you’re just shuffling other people’s money around until you realize you’ve become other people’s property.

Your credit REPORT on the other hand (read: not your score) along with the cash you save because you refuse to pay interest to scam a$$ banks is useful in what youre trying to do.

Trying to get an apartment? A clean credit report with no entries (positive or negative) plus your cash deposit.

Trying to get car insurance? A clean driving record, credit report and if you’re smart, paying the year in advance and in full (its refundable).

Trying to get a car? If you can not afford to pay cash for a car, you can not afford that car. Period. But when you stop playing around with debt, you’d be surprised at how powerful your cash flow becomes allowing you to save for these things.

Trying to get a job? There is no employer in America who A. checks “your credit score” and B. has the legal authority to check or use that credit score in hiring decisions. By law, only your credit REPORT can be used.

How do you get a credit report that will allow you to get hired anywhere? STOP PLAYING AROUND WITH DEBT AND FINDING YOURSELF IN DEBT WITH PAST DUE BALANCES AND DELINQUENCIES.

Its the largest source of misinformation on credit scores and reports there is in America. You are not applying for a loan, no one cares about a credit score in hiring. They’re looking (mistakenly) at whether or not you’re ALREADY in financial trouble which will put you at risk of doing illegal or immoral things at work. (according to some employers)

The cycle is all tied together yet you keep letting these internet credit repair clowns convince you that you need to pay them $500-$5,000 to “fix your credit” (boost your credit score). They do this by temporarily clogged the dispute process  system until one or more of your negative accounts are removed for a small amount of time. Then your credit score will go up temporarily allowing you to sign up for some more debt bullsh*t you shouldn’t have been signing up for in the first place. However, since the method is fraudulent, in about 60 days, those negative items pop back up on your credit report and now you owe twice as much – the old debt and the new debt.

Now if you’re trying to “fix your credit report” more specifically, you need to understand that there is no legal way to do what you are speaking. By law only time (7 years) can remove accurate items that are negative from your credit report. You can not “pay-for-delete” to any company, debt collector or otherwise and think your argument will stand in court once you find they’ve taken your money.


The only thing you can do is change the designation from “unpaid charge off” to “paid charge off”.

Its still delinquent. Its STILL a charge off whether you paid it or not.

Your credit can only repair itself. There is nothing you can physically do to change that. It takes 7 years from the date of initial default for most negative items to fall off your credit report.

If you are not paying these items for mental relief, there is nothing that will come of it for you.

The only thing you can do is change the designation from “unpaid charge off” to “paid charge off”.

Its still delinquent. Its STILL a charge off whether you paid it or not.

Focus on building wealth not credit and you won’t even realize the time passing.

But if you keep playing credit score tricks and signing up for new debt, that 7 year time frame will keep resetting and resetting and…

(all of this is assuming you are already past the statute of limitations to be SUED which is also different from credit reporting negative items – something that doesnt have legal consequence)

Don’t be dumb. Keep cash, investments and a clean credit report and you can do anything on earth.

You only use credit SCOREs to fall further into debt.


Difference between credit report credit score



The 2014 Winner’s Circle Awards

2014 Winners Circle Awards Logo

As the year comes to an end, its time to congratulate those who have gone the hardest at changing/fixing/improving their financial situations.

For those who remember, a while back we would do the Winner’s Circle awards and give honors to aaalll of our top performing members at the end of each year.

Well now (perhaps a good thing) we have far too many members to name and far too many that have done incredibly well this year. So we’re not going to name each of you but know that overall, the team kicked a$$.

So what we’ll do is name the top 5 performers this year and give a peak at how they made it there.

**In at #5 we have: Toya P.

Talk about determined, Toya gets the hustler of the year award for “kicking ass in an employment setting”.

Following her passions on the business side, always receiving top praise from management and clients alike, she’s one of the few people actually using the degree/field she worked to be apart of. Toya did it all while driving a reliable paid off Scion working in an industry known for grand ballerific facades.

And in doing so, it allowed her the cash flow this year to beef up her investment portfolio filled with a diversified array of ETFs.

Then there was that healthcare stock she put in the gambling portion of her portfolio that snagged…wait for it..

..a 35% gain. Don’t remind her of this – her head may get a bit bigger.

**Coming in at #4 we have: Johnell M.

One of our first members to join club “I’m Debt Free!!!” this year.

After doing the process a little backwards a few years ago and sacrificing to pay off $15k of his student loans before he did his credit cards, he was recently able to finally say I’ve had it.

Just last winter you could find him commuting to work without using heat and saving an extra $125 per week on gas in the process. He said he just wore extra layers and stayed bundled up (insane lol)

And now in 2014, he took his tax refund from taxes and kicked Chase and Best buy out of his house once and for all.

For the rest of the year he used that awesome debt free cash flow to go back to school and increase his skill set without adding any new debt.
Welcome to the club Johnell!

**In the #3 & #2 spots, we have: Tiffany & DeVonne 

No car notes, credit cards or any of it! AND no student loans??
They also didnt want to stay long distance landlords anymore so they placed their out of state house on the market and it recently sold! Effectively making them members of “Club – Rent Rich Over 30”
A minority couple with excellent jobs, paid off cars, no mortgage hanging over their backs, 1000% debt free, and a portfolio full of high performing ETF investments.
Congrats to the Johnson household!
#TeamNoCarNote #TeamNoCreditCards #TeamSallieMurdersClub #TeamWTFisaMortgage

**And now…drummroll pleease**

The #1 Winner’s Circle member who kicked serious financial a$$ in 2014 is…
>> Tsehainesh <<

Always ordering BKF books to give out for Christmas gifts to her friends once she had knocked out her credit card debt…

Continuing to go hard over the last year and a half on student loan debt and refusing to upgrade her 10 year old Honda Accord in the process…

One of the newest members of the 20% club for 2014…

Over her 6 Steps to Zero debt journey she began when the original BKF book was released in 2011, she not only paid off $12,600 in credit card debt..

…but freed herself from $31k in student loans, WHILE investing in her 529 plan for her kid.

Did I mention she did this as a single mother making a modest salary in the expensive as ___ bay area?

So lets give her and all other Winner’s Circle rockstars a monster shout out for 2014!

Special 2014 shout outs go to Jasmine G (working on going natural, making huge progress with your finances and driving that same paid off year 2000 honda), Krischa E (starbucks challenge and most reliable paid off new model car award), Isidra (drastically improving income and canceling a Target credit card before it was even sent), Jaaye  (better be the last time I congratulate you for paying off credit card balances)

7 Stages to Financial Wealth

**7 Stages to Financial Wealth** (applicable to even the most stubborn of our recruits)


Stage -1– Can’t nobody tell you NOTHIN. You’re deep in denial and ignorant to the truth about the damage your current mentality has done to your finances. You’re completely trapped in the credit/debt slave matrix and have no idea that you are truly broke underneath all of your monthly financial facade frontin. You react violently

Stage 2– Exploration and Acknowledgement of the truth.

Someone or something has come along and figured out how to give you an extremely rude awakening.

You’ve begun to reluctantly question a lot of things. You know somethings wrong with how you’ve been handling things, something wrong with your immediate surroundings and the way the world works but you just dont know exactly what it is or how to fix it. In this stage you begin to fish around for proper education on personal finance, self esteem and even improving your health if necessary for the upcoming fight.

Whatever that fight may turn out to be.

Stage 3– Absolute anger. At this point you’re gaining momentum in your pursuit of knowledge. Yet the more you learn, the more you feel the walls have closed in due to all of the stupid sht you’ve done financially. The more you’re able to accurately calculate the totality of your financial f*ckery, the harder it seems it will be for you to climb out of it.

You’re feel both completely against the wall and at the same time completely ready to break the cycle…yet you now acknowledge that your previous ignorance was definitely bliss.

Stage 4- Your anger has propelled you into an all out war against debt and financial struggle each month. You’re cutting expenses, selling things on Craigslist, budgeting, setting money aside as a starter emergency fund & aggressively fighting to pay down your credit cards, car loans and medical bills. You see progress, yet due to your intense battle with debt, you have no leftover funds to begin to aggressively save and invest for you and your kids future. However, you have woken up to the fact that by eliminating such harmful liabilities, you are putting yourself into the perfect position to more than catch up on those luxuries in 24 months.

Stage 5- Initial victory! You’ve paid your consumer debts and have a medium sized chunk of change saved up to weather a storm. You do however, still have student loans and maybe even a mortgage left. You start investing lightly and begin to contribute up to the match in your 401k while focusing most of your resources to knocking out your two remaining  debt monsters. (mortgages and student loans)

Stage 6- **Debt Freedom**. It has been a long time coming. You have never seen such a powerful cash flow each month and because you have no interest payments you need to send to ANYONE ever again, you’ve never seen so much money pile up in your bank and investment accounts so quickly. You rejoice.

You spend some of that cash-flow on yourself this month to celebrate your hard work. You make a pact to yourself to never allow you to get in that position again. You also promise that you will go full fledge into wealth generation mode through investing, getting your kids college straightened out and possibly even starting your own business/ income rental property portfolio.

Stage 7- You have been enjoying your financial freedom and new self esteem for sometime while investing properly, buying rental units properly and in general doing whatever the hell you want with your money. But you realize there is still one piece to the wealth puzzle left.

You realize the only way for you to be truly financially wealthy is by uplifting the next person in your family or community. So you seek out someone as unfortunate to be stuck in stage 1, send them a cold glass of water to the face and you completely change their outlook on life and the building of their family tree. A new cycle of wealth begins to combat the previous cycle of poverty.

Welcome to The Winner’s Circle.

BKF Program Recommended Products

BKF Online

**Updated 9/11/16

I’m continually updating a list of items that people constantly ask me whether or not they should purchase.

While getting out of debt, a lot of time in the financial community, we like to pretend like throughout the duration of someone’s debt free journey, that they will purchase absolutely nothing. While this would be great and definitely help that person get out of debt faster, we know in practice that this just isn’t the case.

With that being said, students within BKF university who are trying to get out of debt and build wealth should understand there is a sweet spot for those who find themselves in the market to purchase specific products. We’re not saying you can’t succeed if you venture slightly outside of these suggestions; again this is simply the sweet spot or set of purchase points you want to aim for so you do not find yourself too far off track.

A few good BKF approved purchase points for individual items you may be trying to obtain are as follows:



You should be out of all non student loan debt, have an emergency fund of 6 months expenses, and don’t buy anything unless your total monthly real estate expenses are below 33% of your gross monthly income. (Prop taxes, Home warranty, hazard insurance, maintenance, utilities etc). Avoid 1 level condos.

Learn more here.

And even better than that? Smart people who feel they need houses and want to actually be wealthy, here’s how to buy them in cash here.

**For NEW Cars**

You should not be driving a new anything while you’re in debt. Especially not consumer debt.

For those who refuse to listen and only have student loan debt left, understand that the absolute least expensive form of automobile is leasing the 100% electric car under $28k. Take out a 36 month pre-paid in cash lease which allows you a car pool lane sticker, a $2500 check from the state of CA sent to your house, a car with virtually no maintenance and virtually no fuel costs. Learn more about the leasing portion of this here.

**When purchasing a car if yours has become too expensive to fix**

Over 3 years old, reliable (Honda, Toyota/Scion, Nissan), $12k or under and paid for in CASH. If you do not have $12k to purchase a vehicle and you only have $6k to purchase a vehicle then great, thats even better – you know what you can afford. “I can afford it” means you “have the cash to purchase said item”.


Chevron gas preferred. Second choice is Texaco 91. Third choice is 76. Stay clear away from Arco and Costco gas. Contrary to popular belief all gas is not created equal and a lot of us spend a whole lot more burning through cheap gas. Visit to view our photo album of social media feedback from our 3 month gas challenge.

**For Car Insurance**

Progressive Insurance (,, and (per mile insurance).

**Transportation in General**

(For the smart ones trying to wean themselves off of owning/using cars altogether, the best type of transportation is a creative mix of the below while keeping an old reliable clunker parked on the street for emergencies:)


Most affordable & portable for transportation:

Fastest & most portable for both transportation and leisure:

Not as portable but high quality full sized bikes for transportation and leisure:

Strictly for leisure

Most affordable high quality electric bikes for transportation and lesiure:

Many cities now have bike rental services as well.

Electric longboards (latest technology) coming soon:

Public Transportation:

Metro 30 day pass (or whatever your local bus/train pass is called)

Ride Share & Hourly Car rentals:

Uber, Lyft, Relayrides, Sidecar (, Zimride or Zipcar

Couple two of the alt transportation methods above with the purchase of a $3k-$6k reliable Honda Toyota or Nissan that stays parked at your house the majority of the month and you can’t lose!

**For new laptops needed for work or school**

Between $225-$600 (never pay over $600 for a laptop while in debt) HP, Sony, Toshiba, Asus, Acer or Samsung. The Microsoft Surface is great for many people that want extreme portability and full computing functions. Apple if you’re an art director, graphic designer or special effects editor. Just say no to Chrome Books.

**For inexpensive cell phone external batteries and accessories** (will save your life)

**For banking products/bank accounts**

Checking Accounts- must have “free” checking or the ability to avoid account maintenance fees using direct deposit. No mandatory transferring of money between to avoid fees. Must have ALL overdraft “protection” removed from accounts.

**Checking accounts can be from the following:**

One or more of the following Black owned banks:

Last 24 Black banks in the U.S..png

Bank of America (the free eBanking account has been phased out – use MyAccess checking)

Credit unions/community banks

>>Stay away from Chase!

**Savings Accounts:**

One of the Black owned banks listed previously (must have a clean-ish credit report)

Credit unions/community banks

**Investment Accounts**

**Financial advisors -investment related**

YOURSELF (read a book like and/or joing the investing school program)

You can’t pass down someone else’s app or website that may or may not be in existence, to your kids.

If wanting to discuss a complex estate matter, try Vanguard personal advisor services

**Budgeting/Getting out of Debt Software**

**For Healthy Eats**


Simply Wholesome (black owned – Los Angeles)

Stuff I eat (black owned – Inglewood)

Mo Better Burgers (black owned -check out their veggie burger and veggie tacos – Mid Wilshire)

Derrick’s Jamaican Cuisine (black owned – Ladera)

**For cable TV packages**

AVOID Cable TV – this does not enhance your life. Use Hulu/Netflix or various free tv/free movies services online.

For stand alone digital boxes, use the Roku 3 player, Apple TV, Amazon Fire TV or Chromecast. (Roku is the best option right now for those who do not have Apple laptops. For those who have Apple laptops and use AirPlay to beam all types of content to your TV, the new Apple TV is best)

**For cell phone service**

Cell phone service is a highly subjective field. You have to try a few and settle with the one you like. You also have to go with the one that offers the best package for what you need. Some people only use 500mb of data and aren’t affected by throttling after that for example.

Cricket ( <– bought by AT&T. Offers a prepaid feature phone plan with unlimited talk, text and data  (2.5mb at high speed) for $40.

Ting Wireless ( <–uses Sprint’s network

Straight Talk Wireless ( <– depending on your location, will use AT&T, T-Mobile, Verizon & Sprint’s towers)

Republic Wireless ( <–uses Sprint’s network

Boost Mobile ( <–uses Sprint’s network

Virgin Mobile ( <– uses Sprint’s network

Metro PCS ( <– uses T.Mobile’s network

>>Note: Verizon and others are far too expensive for mediocre benefits!

**For Internet providers**

Stick to Time Warner cable or Comcast over ATT Uverse.  ClearWire sucks (and will be out of busines ssoon). DirecTV if you hate your money.

Stay in School Forever to Avoid Student Loan Payments? You Sure About That?



Just a few of the reasons why the person who thinks they’re so smart they’re going to stay enrolled in school forever to avoid paying student loans, is really the dumbest person you’ve ever met:

1. No private loans. If your situation is that dire but all you have is federal loans, all you have to do is find a public service program and pay the minimum for 10 years (depending on your plan choice) and the entire remaining balance is “forgiven.”

Oh you don’t have enough money to pay the minimum $300/month in the 10 year plan on your $67k balance?

So you’re going to spend 20/hours a week (80 hours a month) in school racking up more debt, to avoid paying $300/month?

20 hours a week you could have been working part time somewhere bringing in at least $500/month after taxes?

$500/month with no additional debt or interest accrued from unpaid/deferred student loans?



2. You have private loans. These things suck to high heavens.  But you gotta pay them. Same as above: if you’re spending 80 hours a month (4hours a day during the week) going to classes, driving to classes, studying for half of them and dealing with books, lines and everything else just so you could avoid actually earning the amount you need to pay your student loans…and you do this for the next 40 years of your life…

you end up paying for those private student loans 7 times over with lost earnings from opportunity cost.


3. Your mortgage. Deferred student loans do not have their payments excluded when applying to many loan programs – you either need to get something from the creditor stating how much the anticipated payment will be, or else lenders hit you with a monthly payment equal to 2% of the balance (which is a ton higher than what your actual payments would be).

So yes, if your 30 year deferred student loan balance has grown to some sort of $400k plus monstrosity, good luck trying to qualify with a $2k income and a proposed $1500 in student loan payments. Genius lol


4. Your relationships. Where do you think this 20 hours a week is going to come from in your life when you already will have to be working while going to school?

From your bible study time? lol Get ready to stay single and never be eligible to ride in the car pool lane…

I could do 4 more but if it takes you more  than even one…

I think you deserve to stay hard headed and try it.

Hey…perhaps the book you write of your in school accounts could wind up a best seller…
Continue reading “Stay in School Forever to Avoid Student Loan Payments? You Sure About That?”

Benefits of Buying a Car in Cash

Car Cash 2

What buying a car in cash does over someone who enslaves themselves to a care note:

1. Affordability: It forces you to ONLY buy what you can afford. Remember, the term “I can afford it” does not mean you can afford the car payment that month. It means that you have the cash in the bank to make the purchase without owing anyone. Otherwise you can’t afford s#%$. You’re just gambling with how long you can make it without a major emergency happening.

2. Discounts: It puts you in place to be highly likely to receive a sizable discount on the overall price of the car. Lenders want to move VOLUME. Making $3k on 5 cars beats $5k on 2 in most businesses across the globe. Your greedy local car dealership is no different. Whipping out cash and buying a car at the end of a sales month will 9 times out of 10 allow you to get the dealer to cover your tax, title and registration.

3. Car insurance: It allows you the CHOICE to pay less in insurance! (Banks and car lease finance companies dictate your insurance coverage)

4. Late fees: The goal for wealthy people is not to be able to make payments on their bills on time. The goal is to have as few as possible in the first place. By reducing the number of payments that go out each month (from canceling cable bills to combining monthly cel phone plans to eliminating credit card payments regardless if you pay in full) you are substantially reducing your potential to pay late fees.

5. No more car than you really want or need: It forces you to think smarter about your purchase! Numerous published studies show that when you spend your own hard earned money you choose better, more reliable, longer lasting products (read: honda, toyota, nissan). When you give a 25 year old a $25k loan they come home with a Giraffe with a motor in its butt.

6. Cha ching! It puts you on path for wealth! If you were to simply reduce your auto expenses by $400 per month and instead you invested that amount over the typical timeframe someone pays a mortgage (30 years), you are $818,435.52 wealthier than the person who doesn’t.

Shout out to driving cars in hopes of impressing people who you’ll be asking to borrow money from in a few years.

Very impressive your plan is my friend.

Continue reading “Benefits of Buying a Car in Cash”

New Slaves

My momma was raised in the era when…

Clean water was only served to the fairer skin..

My parents were focused on civil rights in their era which is understandable. But now, its up to us to awake from being “new slaves”. We have to fight tp stop this cycle of poverty once and for all.

Understand that the *cycle* is the target. Not poverty itself.

Because right now just being born black pretty much guarantees you a life of struggling.That damn-near guarantee is what we’re fighting to tear down.

Some enjoy government handouts, payday loan interest and cash advances. And that is your prerogative to stay in bondage. The rest of us who desire to wake from the Matrix through our own choice will struggle to do so initially, yes, and then prosper for eternity.

A revolution does not require 100% participation.

Continue reading “New Slaves”

You have a low Credit Score? Probably the best thing that’s ever happened to you.


The last time I knew my credit score, in 2007, I was nearly $550k in credit card , student loan and mortgage debt.

I had a 735 consumer Fico score (remember there are multiple scores- consumer score, auto loan score, mortgage score etc).

I was broke, in debt, had no investments and was tied to my job for survival.

As of 2013, I have no idea what my credit score is as I have not been stupid enough to pay some company or apply for some loan so I could find out.

I have lived for 6 years without once needing a credit score, a loan or any other type of societal bondage.

After renting numerous cars, applying for, being approved and deciding not to rent multiple apartments, being hired to work at the top companies in two separate industries (banking/finance and advertising), after starting two businesses, owning multiple investment accounts, having cel and 4g plans at the most credit sensitive companies ( At&t, verizon) having possibly the worlds most fully covered auto insurance policies at amazingly low rates…I have prospered financially far beyond any other point in my 32 year history.

The Dow Jones has hit an all time high. I have the ability to purchase two of the condos I got rid of 100% in cash. I do only what I desire to do each day.

Basically, I have never seen more money in my life.

And guess why.


…I, along with the top tier of the over 1800 minorities I work with have lived life better than most around us, accomplished more than most around us and have given back to the community more than those around us.

Yet you “gotta raise your credit score”.

Now remind me how thats been working out for you, champ?