WEBVTT - How To Keep Your Credit Healthy 0:00:01.139 --> 0:00:03.990 So debt can be a really weird thing. People can 0:00:03.990 --> 0:00:06.750 be too credit avoidant or too far the other way 0:00:06.750 --> 0:00:09.389 and have a load of maxed out credit cards. There's 0:00:09.389 --> 0:00:11.879 a middle ground though, that's usually a happy medium. A 0:00:11.880 --> 0:00:14.909 little debt can even be a good thing sometimes. Andy 0:00:14.910 --> 0:00:16.859 Webb is with me and he's going to explain about 0:00:16.859 --> 0:00:19.470 how to use credit to get a little bit richer. Andy 0:00:19.470 --> 0:00:21.989 runs an award- winning blog called Be Clever With Your 0:00:21.989 --> 0:00:24.779 Cash and he's also a fellow podcaster. He hosts a 0:00:24.780 --> 0:00:27.330 weekly show, Cash Chats. So let's see what he's got 0:00:27.330 --> 0:00:32.428 to say. So Andy, we're going to start off with 0:00:32.429 --> 0:00:36.028 credit. So explain to us what exactly is credit? 0:00:36.330 --> 0:00:39.750 Credit is basically when you borrow money for different parts 0:00:39.750 --> 0:00:41.460 of spending. The most common one that we know about 0:00:41.460 --> 0:00:43.350 obviously is the credit card. It's got the word credit 0:00:43.350 --> 0:00:43.711 in it, hasn't it? 0:00:43.711 --> 0:00:43.771 It does. 0:00:44.340 --> 0:00:46.409 Right. That's what people think of as credit a lot 0:00:46.409 --> 0:00:48.388 of the time. And when you use a credit card, 0:00:49.290 --> 0:00:51.900 the spending that you do on that card, you are 0:00:51.900 --> 0:00:55.110 basically borrowing that cash. That money is being paid for 0:00:55.200 --> 0:00:57.210 by the credit card company and you are going to have to 0:00:57.690 --> 0:01:00.270 then pay it back and it's not just credit cards. 0:01:00.630 --> 0:01:03.660 So there's also things like your overdraft, that's also credit 0:01:04.170 --> 0:01:07.619 loans, mortgages, which I'm sure we'll talk about again. Even 0:01:07.620 --> 0:01:10.709 things like your mobile phone contract, sometimes they are things 0:01:10.709 --> 0:01:13.230 where you're going to have to apply for this credit. Doesn't necessarily 0:01:13.230 --> 0:01:16.470 come out of nowhere, got to apply for it, and 0:01:16.650 --> 0:01:18.150 then you're going to have to ultimately then pay it 0:01:18.150 --> 0:01:18.870 this money back. 0:01:19.260 --> 0:01:20.730 I think when it comes to credit, like you said, 0:01:20.910 --> 0:01:22.709 there's a lot of things that people don't realize is 0:01:22.709 --> 0:01:25.139 credit. I think phone contracts is a big one that 0:01:25.139 --> 0:01:27.420 whenever I talk about it with people are like, that's not credit 0:01:28.170 --> 0:01:29.549 I'm paying for my phone line. But it is a 0:01:29.549 --> 0:01:31.260 line of credit that you're applying for. So I think it's 0:01:31.260 --> 0:01:34.830 always good to understand what that looks like. But whenever 0:01:34.830 --> 0:01:38.699 people talk about credit sometimes there can be a negative 0:01:38.700 --> 0:01:41.190 spin on it, right? But I want to switch it the other 0:01:41.340 --> 0:01:43.530 way. So why can it be a positive thing? 0:01:43.679 --> 0:01:45.089 Yeah. Well, I mean I think it's important to sort 0:01:45.089 --> 0:01:46.559 of just touch on why people are a bit scared 0:01:46.559 --> 0:01:47.879 of it as well, aren't they? Why they think of it? Because 0:01:47.879 --> 0:01:49.710 this thing that comes into mind is that the debt 0:01:49.830 --> 0:01:52.530 that comes from it. Some people don't appreciate that it is 0:01:52.530 --> 0:01:54.450 when you borrow money, if you don't pay it back, 0:01:54.510 --> 0:01:57.809 it is a debt. And also the vast majority of 0:01:57.809 --> 0:02:00.150 the time, not always, the vast majority of the time, 0:02:00.690 --> 0:02:03.630 credit isn't free and you are paying for it. So 0:02:03.630 --> 0:02:06.059 not only are you applying for the access to have 0:02:06.059 --> 0:02:08.460 this money that you can spend, but then there'll be 0:02:08.460 --> 0:02:11.280 extra added on most of the time. And so say 0:02:11.280 --> 0:02:12.900 you've got a hundred quid in your credit card with 0:02:12.900 --> 0:02:16.559 a 20% interest rate, then if you leave it as 0:02:16.559 --> 0:02:18.149 it is, you don't touch it, don't pay it off at all 0:02:18.150 --> 0:02:20.849 in that year, then it's going to cost you 20 0:02:20.849 --> 0:02:22.859 quid. And obviously the more you borrow, the higher the 0:02:22.859 --> 0:02:25.530 interest rates, the longer you borrow for, the more expensive 0:02:25.530 --> 0:02:27.900 it gets. So understandably, yeah, people do think, " I just 0:02:27.900 --> 0:02:30.930 don't want to get into that situation." But it does 0:02:30.930 --> 0:02:33.570 assume that you aren't paying it off. And like you say, 0:02:33.960 --> 0:02:36.419 if you do pay off this debt a lot of 0:02:36.419 --> 0:02:38.820 time there are some benefits that can come with that. 0:02:39.240 --> 0:02:41.698 Credit cards, for example, there's a thing called section 75 0:02:41.699 --> 0:02:44.100 of the Consumer Credit Act, and this is a kind 0:02:44.100 --> 0:02:45.870 of a protection we get if you buy something that 0:02:45.870 --> 0:02:48.328 costs more than a hundred pounds but less than 30, 000 0:02:48.330 --> 0:02:50.760 pounds and there are like Grey areas here, but broadly 0:02:50.760 --> 0:02:52.710 speaking, if you pay for that with a credit card 0:02:52.860 --> 0:02:55.469 rather than with a debit card, then if something was 0:02:55.469 --> 0:02:57.660 to go wrong, the credit card company is, this is 0:02:57.660 --> 0:03:01.500 a law, right? They're legally liable to refund you if 0:03:01.500 --> 0:03:03.510 for some reason you can't get that money back from 0:03:03.510 --> 0:03:05.669 the people you originally bought it from. So that's a 0:03:05.669 --> 0:03:08.459 really, really good extra that you only get with credit. 0:03:08.790 --> 0:03:11.880 Another one may well be little perks like rewards or 0:03:11.880 --> 0:03:14.130 cash back that you can get when you spend with a credit card. 0:03:14.669 --> 0:03:15.960 So it might not be a huge amount, maybe like 0:03:15.960 --> 0:03:18.359 1% back, maybe less, maybe a little bit more every time 0:03:18.359 --> 0:03:20.880 you spend. But this is something which again, as long 0:03:20.880 --> 0:03:23.460 as you do clear that balance every single month, don't 0:03:23.460 --> 0:03:25.950 get charged that interest, can earn you a little bit extra 0:03:25.950 --> 0:03:29.010 cash. So sometimes there are benefits for using something like a credit 0:03:29.010 --> 0:03:32.250 card over a debit card. What else? It could be 0:03:32.250 --> 0:03:35.549 that there's something that you can't normally afford, right? Mortgages. 0:03:35.699 --> 0:03:37.980 I know you talk about mortgages all the time. How 0:03:37.980 --> 0:03:40.020 many of us can just go out there and buy 0:03:40.020 --> 0:03:40.530 a house? 0:03:41.010 --> 0:03:43.770 That's a massive amount, isn't it? That's a hefty amount. 0:03:43.950 --> 0:03:46.170 Yeah. So you borrow for that one. Okay, yeah, you are 0:03:46.170 --> 0:03:47.639 going to pay an interest rate on that. You are 0:03:47.639 --> 0:03:50.070 going to pay more than the original value of the 0:03:50.070 --> 0:03:52.049 property, but otherwise you're never going to get on the 0:03:52.049 --> 0:03:55.140 property. So something that can mortgage, it's a credit, allows you to 0:03:55.140 --> 0:03:57.450 buy those expensive things. And even something that's not just 0:03:57.450 --> 0:04:00.780 as massive as a mortgage, something much less expensive but 0:04:00.780 --> 0:04:04.139 still pricey in the short term, a holiday, a TV. 0:04:04.170 --> 0:04:05.849 It's things which could be quite expensive. You don't have 0:04:05.849 --> 0:04:07.769 enough money for right now, but you know will be 0:04:07.770 --> 0:04:10.139 able to afford it if you spread it out over 0:04:10.139 --> 0:04:12.450 time. And sometimes you can do that at 0%. There 0:04:12.450 --> 0:04:16.109 are ways, not overdrafts, not percent credit cards, generally for 0:04:16.110 --> 0:04:18.029 a limited amount of time, but it can help you buy those 0:04:18.029 --> 0:04:21.089 expensive things and spread that cost out. But I would say one of the most 0:04:21.089 --> 0:04:23.610 important things that comes with credit, and this is a bit weird in 0:04:23.610 --> 0:04:26.938 itself, if you have credit, it helps you get credit. 0:04:27.629 --> 0:04:28.199 I know, right? 0:04:28.289 --> 0:04:28.409 Yeah. 0:04:28.439 --> 0:04:31.770 That concept almost feels a bit foreign that that is 0:04:31.770 --> 0:04:33.810 the case, but it is, yeah. If you have credit 0:04:34.290 --> 0:04:36.810 and the reason is obviously because you are borrowing money 0:04:37.170 --> 0:04:39.300 and if you pay it back in a timely manner, 0:04:39.510 --> 0:04:42.690 then you're showing lenders that you're actually a responsible borrower. 0:04:42.928 --> 0:04:44.729 So it's like " Okay, we're actually going to increase your 0:04:44.730 --> 0:04:46.619 limit because you've shown that the money we've given you 0:04:46.619 --> 0:04:49.320 thus far, you can borrow from us and pay back 0:04:49.500 --> 0:04:50.910 and we get our money back so we'll give you 0:04:50.910 --> 0:04:53.520 a bigger limit." But I think people don't really understand 0:04:53.520 --> 0:04:54.900 that concept and it is a bit foreign. 0:04:56.309 --> 0:04:58.200 We'll talk about those risks and people worrying about debt. 0:04:58.230 --> 0:04:59.580 They think, " Oh no, I'm really scared of that. I 0:04:59.580 --> 0:05:00.900 don't want to be in that world." But if you 0:05:00.900 --> 0:05:03.928 don't enter any world of credit at all, when you 0:05:03.928 --> 0:05:06.839 do need to get credit, anything from that mobile phone 0:05:06.839 --> 0:05:09.270 contract through to a mortgage, you're going to find it 0:05:09.450 --> 0:05:11.400 harder to get it in the first place or you 0:05:11.400 --> 0:05:13.800 won't have access maybe to the cheaper deals, the better 0:05:13.800 --> 0:05:18.150 deals. So it is a really weird thing whereby having credit, let's 0:05:18.150 --> 0:05:20.399 say a credit card that you use for your everyday 0:05:20.400 --> 0:05:23.459 spending, you don't get too carried away in but everyday 0:05:23.459 --> 0:05:26.039 spending and you manage it properly, you manage to pay it 0:05:26.040 --> 0:05:28.110 off, don't get charged the interest, you don't miss any 0:05:28.110 --> 0:05:31.919 payments, then that ultimately is a good thing and it'll 0:05:31.920 --> 0:05:33.900 help you longer term. It shouldn't be like this, but 0:05:34.080 --> 0:05:34.830 sadly it is. 0:05:35.219 --> 0:05:37.589 But I love that breakdown. I feel like even you 0:05:37.589 --> 0:05:40.919 saying that it gives people the ability to spread the cost of payments. I 0:05:40.920 --> 0:05:43.620 think we're going to come into that in a second, 0:05:43.620 --> 0:05:45.570 but there's a lot of different things out there that 0:05:45.570 --> 0:05:47.070 allow you to spread the cost. But I think it is 0:05:47.070 --> 0:05:48.928 a good thing if you want to buy something, you say, " 0:05:48.930 --> 0:05:51.299 You know what? Especially you've got 0% interest credit card 0:05:51.300 --> 0:05:53.940 overdraft," like you mentioned. Being able to spread that cost 0:05:54.000 --> 0:05:55.830 can alleviate some of that pressure that you've got financial 0:05:55.830 --> 0:05:57.570 stress and say, " Right, I'm going to plan it out for 0:05:57.570 --> 0:05:59.309 the next six months, plan out my finances and pay 0:05:59.309 --> 0:06:01.650 off this TV, this boiler I had to replace," or 0:06:01.650 --> 0:06:04.020 whatever it is. And now you've got kind of like 0:06:04.230 --> 0:06:06.870 that comfort to fall back on, that comfort cushion. Okay, 0:06:06.870 --> 0:06:09.809 so we've covered how credit can be a very useful 0:06:09.809 --> 0:06:12.539 tool and there's a lot of positives to credit, but 0:06:12.540 --> 0:06:14.789 let's go to the other side. So what are some 0:06:14.790 --> 0:06:16.678 of the things that people need to be wary of 0:06:16.680 --> 0:06:20.010 when it comes to credit? Because we have the standard 0:06:20.010 --> 0:06:22.260 tools that we're used to, we have credit cards, we have 0:06:22.260 --> 0:06:25.230 loans, but then you get to the checkout of things 0:06:25.410 --> 0:06:27.839 and you see other tools there like buy now, pay 0:06:27.839 --> 0:06:30.328 later, which has made credit a lot more accessible. So 0:06:30.330 --> 0:06:31.950 what are the things that people should be wary of 0:06:31.950 --> 0:06:32.549 when it comes to credit? 0:06:32.549 --> 0:06:34.979 Yeah, I think the big one, and this is, which 0:06:35.160 --> 0:06:36.870 I think a lot of young people get caught out on 0:06:36.870 --> 0:06:39.120 when we first get access to credit, we don't necessarily 0:06:39.120 --> 0:06:41.880 understand it. We think it's free money. We don't really 0:06:41.880 --> 0:06:44.700 understand the consequences of paying it back, don't necessarily understand the 0:06:44.700 --> 0:06:48.419 interest charges and then you quickly sort of start racking 0:06:48.420 --> 0:06:50.849 up the spending and you can't afford to pay off 0:06:50.849 --> 0:06:53.459 that spending and then you have to borrow more money 0:06:53.459 --> 0:06:56.160 to cover that the essentials, and meanwhile this debt's getting 0:06:56.160 --> 0:06:59.339 more expensive and it can spiral and it can get 0:06:59.339 --> 0:07:01.529 very problematic. One in that how you just manage on a day- to- 0:07:01.529 --> 0:07:03.809 day basis, but two that knock on for the future 0:07:03.809 --> 0:07:06.570 and what it means for you later on, not just 0:07:06.570 --> 0:07:08.640 in your spending ability, but we talked about credit reports 0:07:08.910 --> 0:07:11.789 and you miss a payment or anything like that, then 0:07:11.789 --> 0:07:15.300 that's going to knock your credit report. I know it's 0:07:15.300 --> 0:07:18.420 often easier said than done, but it's about making sure 0:07:18.420 --> 0:07:21.629 that you just spend within your means, you don't spend 0:07:21.630 --> 0:07:25.349 more than you can properly afford from your actual earnings 0:07:25.349 --> 0:07:27.959 or savings. Just because you've got a credit limit of 0:07:28.020 --> 0:07:30.059 two grand doesn't mean you've got two grand to spend. 0:07:30.240 --> 0:07:31.980 You've only got what's in your bank account that can 0:07:31.980 --> 0:07:33.780 pay off that credit card. So that's one of the 0:07:33.780 --> 0:07:36.840 really big things to be concerned about there. I would 0:07:36.840 --> 0:07:39.210 say that there are times, particularly right now to where 0:07:39.210 --> 0:07:41.429 buy now pay later has made it really, really easy 0:07:41.429 --> 0:07:43.830 for this as well and people don't necessarily really appreciate 0:07:43.889 --> 0:07:45.599 the impact that has because it does work a little 0:07:45.599 --> 0:07:49.260 bit differently. It doesn't necessarily, and this changes and depends 0:07:49.260 --> 0:07:51.450 on who you borrow from or buy now pay later 0:07:51.450 --> 0:07:53.790 impact your credit score in the short term. But that 0:07:53.850 --> 0:07:56.309 ability to have, oh, I've got one thing over three 0:07:56.309 --> 0:07:58.080 months, then you add another thing over three months and 0:07:58.080 --> 0:08:00.330 another thing it looks like small amounts but cumulatively all 0:08:00.330 --> 0:08:02.790 add together and that gets a lot as well. So 0:08:02.790 --> 0:08:05.249 it's about even if you think you can afford something, 0:08:05.250 --> 0:08:07.110 just making sure you're keeping track of it as well. 0:08:07.320 --> 0:08:10.200 Absolutely. I agree with you. I think what I love 0:08:10.200 --> 0:08:14.700 to always highlight is that no credit is bad. Credit 0:08:14.700 --> 0:08:16.920 is at tool, it's never inherently bad and that includes buy now, pay 0:08:16.920 --> 0:08:20.280 later, credit cards overdrafts. It's often the misuse of that 0:08:20.280 --> 0:08:23.129 credit or like you said, not planning, not figuring out 0:08:23.129 --> 0:08:25.740 how you're going to pay it back is where things can 0:08:25.740 --> 0:08:28.620 sometimes go wrong. So as you said, it's just figuring 0:08:28.620 --> 0:08:30.690 out how are you going to do this, can you afford 0:08:30.690 --> 0:08:32.820 this? And if not, maybe you should skip buy now, 0:08:32.820 --> 0:08:34.500 pay later if you haven't figured out how you're going to 0:08:34.500 --> 0:08:37.139 pay it back. Maybe you should not spend on that credit card right 0:08:37.139 --> 0:08:38.819 now if you haven't got a means to pay it back. 0:08:38.820 --> 0:08:42.240 So I agree with you. We've touched on both sides 0:08:42.420 --> 0:08:44.520 of the spectrum. We touched on how credit can be 0:08:44.520 --> 0:08:46.800 a powerful tool, really positive, and we touched on the 0:08:46.800 --> 0:08:50.280 other side and how it could have some complications. So 0:08:50.670 --> 0:08:53.460 when people are preparing to take out credit, how do 0:08:53.460 --> 0:08:57.540 people find that sweet spot between healthy credit that's good 0:08:58.080 --> 0:09:00.929 and can benefit your credit score and gives you opportunities 0:09:00.929 --> 0:09:03.870 such as you mentioned buying a house, buying property and 0:09:04.140 --> 0:09:06.689 unhealthy that that could get out of control? So how 0:09:06.690 --> 0:09:08.189 do we find that sweet spot if you're going to 0:09:08.190 --> 0:09:08.789 take out credit? 0:09:09.389 --> 0:09:12.420 Yeah, I think if you're starting off from scratch, right, 0:09:12.420 --> 0:09:14.670 you don't already have any sort of debts at all 0:09:14.670 --> 0:09:16.679 right now, then hopefully it's going to be an easier 0:09:16.679 --> 0:09:18.900 process for do as you said, just work out what 0:09:18.900 --> 0:09:21.480 you can afford. I think in terms of building up 0:09:21.480 --> 0:09:24.179 your credit report, building up your credit score, just do 0:09:24.179 --> 0:09:27.780 your everyday spending. It could be something like supermarket shopping 0:09:27.780 --> 0:09:29.730 or petrol, whatever. It's things that you are going to spend 0:09:29.730 --> 0:09:33.359 money on anyway just to demonstrate that you can borrow 0:09:33.360 --> 0:09:35.759 money and then paying that off completely to avoid any 0:09:35.760 --> 0:09:37.620 interest charges. It's a great way just to start off 0:09:37.620 --> 0:09:40.110 with it. And just for that, just making sure there's 0:09:40.440 --> 0:09:43.078 maybe some money set aside in your normal current accounts 0:09:43.290 --> 0:09:45.870 that is there to pay off those things. If you're 0:09:45.870 --> 0:09:49.320 already maybe in a bit of a situation where things 0:09:49.320 --> 0:09:51.780 are getting out of hand, it's just not to ignore 0:09:51.780 --> 0:09:53.608 it. I know we say this all the time around any kind 0:09:53.609 --> 0:09:55.920 of debts, but it's so, so vital that the earlier 0:09:55.920 --> 0:09:58.559 you take action, the easier it's going to be for 0:09:58.559 --> 0:10:00.630 you to kind of get out of that mess and 0:10:00.630 --> 0:10:03.899 hopefully the other end start doing things in a way that we're going to be sort positively 0:10:03.900 --> 0:10:07.199 build your finances and your credit report and your wealth 0:10:07.200 --> 0:10:09.569 and all these things. And that is a big part 0:10:09.570 --> 0:10:11.670 there is if you are struggling and it's kind of 0:10:11.670 --> 0:10:13.890 starting to get out of hand is, look, we said 0:10:13.890 --> 0:10:16.890 not all credit costs money. Some of it's free. And 0:10:16.890 --> 0:10:19.439 there are naught percent balance transfer credit cards, naught percent 0:10:19.440 --> 0:10:23.189 money transfer credit cards. These are really good products that 0:10:23.190 --> 0:10:25.889 if you apply for them and you're accepted for them, you can 0:10:25.889 --> 0:10:28.740 transfer that debt over. There's often a fee, not always 0:10:28.740 --> 0:10:30.600 often like a small fee that's within it that you'll 0:10:30.600 --> 0:10:33.570 be charged on the balance you move over, but then 0:10:33.870 --> 0:10:37.080 your balance, that debt that's moved over is not getting 0:10:37.080 --> 0:10:39.150 charged interest for a certain amount of time and that gives 0:10:39.150 --> 0:10:41.849 you that ability to pull it down. You're not paying 0:10:41.849 --> 0:10:44.069 both what you owe and the interest, you're just paying 0:10:44.070 --> 0:10:46.649 what you owe. Hopefully you can clear that a lot 0:10:46.650 --> 0:10:50.250 faster. So that's a really good intermediate action. If things 0:10:50.250 --> 0:10:52.320 have gone even further and you kind of pass that 0:10:52.320 --> 0:10:54.960 and you're applying for these cards and you're getting rejected, 0:10:55.320 --> 0:10:57.510 I would say actually when you do apply for credit, 0:10:57.570 --> 0:11:00.300 often try and do what's called an eligibility search, first 0:11:00.300 --> 0:11:02.699 of all to give you an idea of how likely it is, 0:11:02.700 --> 0:11:04.830 it's never guaranteed, but how likely it's you'll get accepted 0:11:04.889 --> 0:11:07.170 rather than just go straight into a full application. But 0:11:07.170 --> 0:11:09.990 if that's problematic, there are debt charities you can talk 0:11:09.990 --> 0:11:14.370 to, Step Change, Advice Bureau, National Debt Line, and they 0:11:14.370 --> 0:11:16.619 will help you work through how maybe you'll come out 0:11:16.620 --> 0:11:17.250 that other end. 0:11:17.700 --> 0:11:20.218 Amazing. I think like you said, there's a lot of 0:11:20.219 --> 0:11:23.729 things to consider and credit should be seen as a 0:11:23.730 --> 0:11:26.250 tool, a useful tool, but we need to make sure 0:11:26.250 --> 0:11:29.340 that we're planning when it comes to using credit. So 0:11:29.340 --> 0:11:31.170 Andy, we've come to the point, I ask all of 0:11:31.170 --> 0:11:33.750 our guests what are the three tips that you can 0:11:33.750 --> 0:11:35.759 give our listeners to help them get a little bit richer? 0:11:36.150 --> 0:11:37.709 So when it comes to credit, I think the first 0:11:37.710 --> 0:11:39.958 thing to do is to check your credit report and you can 0:11:39.960 --> 0:11:41.250 do this for free. It's not going to cost you 0:11:41.250 --> 0:11:44.220 any money. Actually three different credit reference agencies, which gets 0:11:44.220 --> 0:11:47.220 a bit complicated, but check that credit report. So just 0:11:47.220 --> 0:11:49.468 to have a look at it, check for any mistakes 0:11:49.470 --> 0:11:51.510 or anything there that doesn't look quite right and that's 0:11:51.510 --> 0:11:53.520 a great thing to do. Then as we said, I 0:11:53.520 --> 0:11:55.380 would then get a credit card. I know somebody might find 0:11:55.380 --> 0:11:58.080 that a bit scary, but do that soft search, that 0:11:58.080 --> 0:12:00.389 eligibility search, see what you can get. Doesn't matter about 0:12:00.389 --> 0:12:02.370 any fancy features. You just want any old credit card and 0:12:03.030 --> 0:12:05.040 you put your normal spending on it and you clear 0:12:05.040 --> 0:12:06.868 it every single month. That's the second thing that's going to 0:12:06.870 --> 0:12:08.909 really help you improve that credit score and give you 0:12:08.910 --> 0:12:13.588 that access to things later on. And finally, I would 0:12:13.590 --> 0:12:15.870 say what you want to be doing is making sure, 0:12:15.870 --> 0:12:18.208 this is so vital, that you do pay it every 0:12:18.208 --> 0:12:20.100 single month. And there was a little hack for that very 0:12:20.100 --> 0:12:22.620 simple one. It's just setting up a direct debit for 0:12:22.620 --> 0:12:22.861 the full amount. 0:12:22.861 --> 0:12:26.249 I agree with that Yeah. Absolutely. It's the best way. If you feel 0:12:26.250 --> 0:12:27.838 like you're going to forget or you don't want to 0:12:27.840 --> 0:12:29.850 miss that payment, you set up a direct debit, it's all set up for you. 0:12:30.570 --> 0:12:31.019 So I agree. 0:12:31.110 --> 0:12:33.509 Just make sure you've got enough money in the current account 0:12:33.509 --> 0:12:35.098 to cover it. S 0:12:35.099 --> 0:12:35.549 Make sure. Yeah. 0:12:35.819 --> 0:12:38.040 And those three things, they're really going to help you put in a really 0:12:38.040 --> 0:12:41.400 good position for helping you use credit and get better 0:12:41.400 --> 0:12:42.840 access to credit in a few years time. 0:12:43.110 --> 0:12:46.980 Amazing. Andy, this has been so useful. Packed full of 0:12:46.980 --> 0:12:49.770 gems, as always. So thank you so much for coming 0:12:49.770 --> 0:12:52.380 on and sharing all of that input on this episode. 0:12:53.219 --> 0:12:55.170 Next week, I want to talk about what it means 0:12:55.170 --> 0:12:57.360 to share money when you're living with someone. We'll be 0:12:57.360 --> 0:12:59.880 coming up with ways to manage these conversations and agree 0:12:59.880 --> 0:13:02.670 what works for you both. In the meantime, don't just 0:13:02.670 --> 0:13:05.550 share your cash. Share this podcast too. Tell a mate, 0:13:05.610 --> 0:13:07.979 leave a review and help other people start getting a 0:13:07.980 --> 0:13:09.660 little bit richer. See you next week.