1 00:00:00,080 --> 00:00:02,960 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:03,279 --> 00:00:06,080 Speaker 1: Today we're asking the question do I need a perfect 3 00:00:06,080 --> 00:00:27,840 Speaker 1: credit score? Joel, I wonder if our answer to that 4 00:00:27,920 --> 00:00:30,440 Speaker 1: question would be any different if you or I had 5 00:00:30,480 --> 00:00:33,320 Speaker 1: a perfect credit score, which we don't. Well, I don't. 6 00:00:33,479 --> 00:00:35,040 Speaker 1: I don't know about you, but I do not have 7 00:00:35,040 --> 00:00:37,400 Speaker 1: a perfect credit score. Now, man, I'm not even close. Alright, good, 8 00:00:38,479 --> 00:00:40,879 Speaker 1: I didn't know, if I know. Previously we had been like, 9 00:00:40,920 --> 00:00:44,440 Speaker 1: all right, on three, tell your credit score? Uh, and 10 00:00:44,520 --> 00:00:46,240 Speaker 1: I think I think our scores were pretty close, But like, 11 00:00:46,280 --> 00:00:47,640 Speaker 1: I don't even know if we're gonna do that this time, 12 00:00:47,680 --> 00:00:50,960 Speaker 1: because honestly, above a certain point, having a credit score 13 00:00:51,000 --> 00:00:53,320 Speaker 1: that's that's higher than that it might matter some, but 14 00:00:53,360 --> 00:00:55,440 Speaker 1: maybe not to the extent that a lot of people 15 00:00:55,560 --> 00:00:58,560 Speaker 1: think it would. It doesn't nearly have the impact on 16 00:00:58,560 --> 00:01:01,760 Speaker 1: our finances. That's a lot of people maybe wish it 17 00:01:01,800 --> 00:01:04,319 Speaker 1: did if you were in that super super upper one 18 00:01:04,360 --> 00:01:06,200 Speaker 1: percent of of folks that you know that have a 19 00:01:06,240 --> 00:01:08,679 Speaker 1: perfect credit score. Yeah. Yeah, So it's an important thing 20 00:01:08,800 --> 00:01:11,160 Speaker 1: to to consider, like how important is my credit score? 21 00:01:11,160 --> 00:01:13,520 Speaker 1: We'll talk about that something today and then how high 22 00:01:13,640 --> 00:01:15,959 Speaker 1: do I need to make sure it gets in order 23 00:01:16,000 --> 00:01:18,640 Speaker 1: to have all the benefits of having solid credit and 24 00:01:18,720 --> 00:01:20,440 Speaker 1: doesn't need to be perfect. You know. Well, we'll answer 25 00:01:20,520 --> 00:01:23,320 Speaker 1: that question as well in today's episode. But Matt, before 26 00:01:23,319 --> 00:01:25,520 Speaker 1: we get there, we recently mentioned that I kind of 27 00:01:25,560 --> 00:01:28,920 Speaker 1: lost our competition that we weren't actually in, the one 28 00:01:28,920 --> 00:01:31,319 Speaker 1: about keeping your phone the longest the cell phone battle. Yes, 29 00:01:31,680 --> 00:01:35,440 Speaker 1: so congratulations again on winning. I recently sold No need 30 00:01:35,480 --> 00:01:38,920 Speaker 1: to rub it in. I'm rubbing assaulted in my own 31 00:01:38,920 --> 00:01:41,000 Speaker 1: wounds right now. But of course I sold my old 32 00:01:41,120 --> 00:01:43,600 Speaker 1: cell phone because I don't want that hunkle junks just 33 00:01:43,600 --> 00:01:46,600 Speaker 1: sitting around cluttering up my house when I can make 34 00:01:46,600 --> 00:01:48,600 Speaker 1: a little bit of money from it. I made a 35 00:01:48,640 --> 00:01:52,320 Speaker 1: whole seventeen dollars, so pretty impressive. And it's from a 36 00:01:52,320 --> 00:01:54,720 Speaker 1: website that we mentioned not too long ago called sell 37 00:01:54,920 --> 00:01:57,080 Speaker 1: sell dot com. Well, we'll post a link to that 38 00:01:57,720 --> 00:01:59,520 Speaker 1: website in the show notes. But it's one of those 39 00:01:59,520 --> 00:02:01,800 Speaker 1: things where if you have an old phone lying around 40 00:02:02,120 --> 00:02:04,840 Speaker 1: that you're not using anymore because you upgraded, don't forget 41 00:02:04,880 --> 00:02:06,720 Speaker 1: to get rid of your old electronics and to make 42 00:02:06,840 --> 00:02:09,440 Speaker 1: money from them. Uh. Cell cell was just super easy 43 00:02:09,440 --> 00:02:12,000 Speaker 1: because actually send you the envelope, you do a hard 44 00:02:12,000 --> 00:02:14,200 Speaker 1: factory reset on your phone. You toss that phone in 45 00:02:14,240 --> 00:02:15,919 Speaker 1: the envelope, you mail it off, and then you get 46 00:02:15,960 --> 00:02:18,200 Speaker 1: a check or you get a PayPal deposit. So super 47 00:02:18,280 --> 00:02:20,440 Speaker 1: chill way to go about, um getting rid of something 48 00:02:20,480 --> 00:02:22,200 Speaker 1: that you don't need anymore and making some money off 49 00:02:22,200 --> 00:02:23,919 Speaker 1: of it. Yeah, exactly, Well, I'm glad to hear you 50 00:02:24,000 --> 00:02:26,120 Speaker 1: got your money. We did the same thing with Kate's 51 00:02:26,320 --> 00:02:29,680 Speaker 1: uh most recent phone that she outgrew too big for, 52 00:02:29,880 --> 00:02:34,000 Speaker 1: get too big for her photos, did get too big 53 00:02:34,040 --> 00:02:37,800 Speaker 1: for Okay, it was only a sixteen gig storage phone 54 00:02:37,880 --> 00:02:40,079 Speaker 1: or whatever. But I feel like for me, like what's 55 00:02:40,080 --> 00:02:42,359 Speaker 1: difficult when it comes to something like this is I 56 00:02:42,440 --> 00:02:44,720 Speaker 1: know that I could get more money by taking a 57 00:02:44,760 --> 00:02:47,440 Speaker 1: little bit more time and selling it on eBay right. Uh. 58 00:02:47,440 --> 00:02:50,080 Speaker 1: And that's where cell cell dot com that they make 59 00:02:50,120 --> 00:02:51,680 Speaker 1: it so easy you hop on there. They've got a 60 00:02:51,680 --> 00:02:54,280 Speaker 1: bunch of different sites listed out in what they're currently paying. 61 00:02:54,600 --> 00:02:56,680 Speaker 1: It's an aggregator, which is nice. It's it's not you're 62 00:02:56,680 --> 00:02:58,359 Speaker 1: selling just at that site. It's like you're seeing all 63 00:02:58,360 --> 00:03:00,240 Speaker 1: the sites that want to buy your cell phone, and 64 00:03:00,080 --> 00:03:02,480 Speaker 1: and they all make it super easy. Like I mean, basically, 65 00:03:02,560 --> 00:03:04,200 Speaker 1: as long as you meet some certain a certain number 66 00:03:04,240 --> 00:03:06,880 Speaker 1: of requirements, you send it off, and as long as 67 00:03:07,320 --> 00:03:09,760 Speaker 1: those things are met, you get the money. And so 68 00:03:09,800 --> 00:03:12,360 Speaker 1: they make it so stink and easy. But for me, 69 00:03:12,400 --> 00:03:13,919 Speaker 1: I get hung up on the fact that I know 70 00:03:14,600 --> 00:03:17,040 Speaker 1: that we could have gotten more money for her phone 71 00:03:17,080 --> 00:03:19,320 Speaker 1: had I sold it on eBay right But after a 72 00:03:19,400 --> 00:03:21,520 Speaker 1: quick search, what I quickly learned though, is that yeah, 73 00:03:21,560 --> 00:03:23,000 Speaker 1: I would make a little bit more money, but not 74 00:03:23,080 --> 00:03:25,880 Speaker 1: a ton more. I think the highest phone I saw 75 00:03:25,960 --> 00:03:28,400 Speaker 1: going was like around fifty bucks, and so there's a 76 00:03:28,520 --> 00:03:30,920 Speaker 1: chance that we could have sold it for something near there. 77 00:03:30,960 --> 00:03:32,880 Speaker 1: Most likely it would have been closer to like thirty bucks. 78 00:03:33,440 --> 00:03:35,160 Speaker 1: But then on top of that, yes, I could have 79 00:03:35,160 --> 00:03:36,640 Speaker 1: gotten a little bit more money, but there would have 80 00:03:36,640 --> 00:03:39,480 Speaker 1: been way more time involved with getting that money. And 81 00:03:39,520 --> 00:03:41,560 Speaker 1: that's an important consideration. You need to know what your 82 00:03:41,560 --> 00:03:44,520 Speaker 1: time is worth, and in my mind, taking the time 83 00:03:44,560 --> 00:03:46,640 Speaker 1: to you know, shine it up, like make sure it's 84 00:03:46,640 --> 00:03:48,520 Speaker 1: all nice and clean, getting a few photos of it, 85 00:03:48,720 --> 00:03:51,560 Speaker 1: getting that listing up, maybe even answering questions, you know, 86 00:03:51,640 --> 00:03:53,280 Speaker 1: like what you post something online. And when it comes 87 00:03:53,280 --> 00:03:55,160 Speaker 1: to electronics, people are like, okay, hey, what's the battery 88 00:03:55,200 --> 00:03:56,760 Speaker 1: life on that? And they're kind of checking in on 89 00:03:56,800 --> 00:03:59,560 Speaker 1: all different sorts of things, even writing the listing, whereas 90 00:03:59,560 --> 00:04:01,960 Speaker 1: you don't have to do that with a website where 91 00:04:01,960 --> 00:04:04,200 Speaker 1: you're selling it. And so you're right, there's all this 92 00:04:04,320 --> 00:04:06,320 Speaker 1: extra time involvement and is something you have to consider 93 00:04:06,400 --> 00:04:09,400 Speaker 1: because is it worth you know, an extra hour to 94 00:04:09,480 --> 00:04:11,920 Speaker 1: list that phone to make an extra ten bucks? Yeah, 95 00:04:11,920 --> 00:04:13,760 Speaker 1: and in this case, no is the answer. And I 96 00:04:13,800 --> 00:04:15,320 Speaker 1: would be willing to do it for something that's a 97 00:04:15,400 --> 00:04:18,160 Speaker 1: higher dollar item. Like we talked recently not too long 98 00:04:18,200 --> 00:04:21,560 Speaker 1: ago about a high end kind of luxury clothing item 99 00:04:21,640 --> 00:04:23,800 Speaker 1: that we that was gifted to Kate that we sold 100 00:04:23,839 --> 00:04:26,000 Speaker 1: on e Bay. You made like bucks on it, totally 101 00:04:26,000 --> 00:04:29,040 Speaker 1: worth it or seven something, Um, but it's your ten bucks. 102 00:04:29,040 --> 00:04:30,960 Speaker 1: I've don't move the needle that much exactly. And so 103 00:04:31,000 --> 00:04:33,360 Speaker 1: in that case, yeah, we weren't gonna just like send 104 00:04:33,360 --> 00:04:34,800 Speaker 1: that off to a site that is just gonna pay 105 00:04:34,880 --> 00:04:37,159 Speaker 1: us pennies on the dollar for what it's actually worth. 106 00:04:37,200 --> 00:04:39,039 Speaker 1: And so yeah, that's definitely something to keep in mind. 107 00:04:39,320 --> 00:04:41,560 Speaker 1: It's better to get some money for for something like 108 00:04:41,600 --> 00:04:43,040 Speaker 1: this and kind of get it out of your house 109 00:04:43,279 --> 00:04:45,120 Speaker 1: than to sit on it thinking that like, well I 110 00:04:45,160 --> 00:04:47,920 Speaker 1: could get more, but what are you actually going to do? 111 00:04:48,160 --> 00:04:50,159 Speaker 1: I think for a lot of people taking the lesser 112 00:04:50,240 --> 00:04:53,760 Speaker 1: amount of money but actually doing the thing, that's totally 113 00:04:53,800 --> 00:04:55,680 Speaker 1: the way to go. Yeah, and especially think about this 114 00:04:55,720 --> 00:04:57,960 Speaker 1: too with a cell phone. Every day it sits there, 115 00:04:58,000 --> 00:05:00,800 Speaker 1: it becomes less valuable, so it is more and more 116 00:05:00,839 --> 00:05:03,560 Speaker 1: obsoletely exactly. So, so if you say you're going to 117 00:05:03,640 --> 00:05:05,320 Speaker 1: do it and you finally get around to it three 118 00:05:05,320 --> 00:05:07,279 Speaker 1: months later, it might be worth just as much on 119 00:05:07,320 --> 00:05:08,960 Speaker 1: eBay now as it would have been if you'd told 120 00:05:09,120 --> 00:05:11,599 Speaker 1: the easy way three months earlier. So yeah, it's one 121 00:05:11,600 --> 00:05:13,400 Speaker 1: of those things where what are you actually going to do? 122 00:05:13,440 --> 00:05:15,039 Speaker 1: And if you're actually going to sell it on eBay 123 00:05:15,040 --> 00:05:16,840 Speaker 1: and it's worth that time to you, then do it. 124 00:05:16,880 --> 00:05:19,520 Speaker 1: By all means, get the highest dollar amount you can 125 00:05:19,640 --> 00:05:21,680 Speaker 1: for your item. But if you're not going to at 126 00:05:21,760 --> 00:05:23,279 Speaker 1: least go the easy route and make some money for 127 00:05:23,279 --> 00:05:25,360 Speaker 1: your item. Yeah, and the thing is too. Three months 128 00:05:25,440 --> 00:05:27,160 Speaker 1: later you look at the prices for it and you're like, 129 00:05:27,200 --> 00:05:29,600 Speaker 1: oh crap, it's worth like absolutely nothing now. And then 130 00:05:29,640 --> 00:05:30,920 Speaker 1: you go to one of the you go to cell 131 00:05:30,960 --> 00:05:33,719 Speaker 1: cell and they're literally paying you like three dollars. So 132 00:05:33,760 --> 00:05:35,760 Speaker 1: it's just like i've've already spent way too much time 133 00:05:35,800 --> 00:05:38,359 Speaker 1: on this already. Yeah, you're overthinking it kind of I 134 00:05:38,400 --> 00:05:41,280 Speaker 1: did recently with my entire inflation, just spending way too 135 00:05:41,400 --> 00:05:44,040 Speaker 1: much time thinking about how much money you're paying, which 136 00:05:44,080 --> 00:05:46,039 Speaker 1: is almost nothing to play your tigers. You're like, oh, 137 00:05:46,040 --> 00:05:47,640 Speaker 1: if I'm not running this area and I can swing 138 00:05:47,680 --> 00:05:49,520 Speaker 1: by the gas station, hit it at the right time. 139 00:05:49,600 --> 00:05:51,200 Speaker 1: You need to have a dollar twenty five and change 140 00:05:51,240 --> 00:05:53,240 Speaker 1: on hand. Yeah, you don't need to overthink it. It's 141 00:05:53,240 --> 00:05:55,799 Speaker 1: amazing though, how somebody with, you know, a frugal mindset 142 00:05:55,839 --> 00:05:58,520 Speaker 1: can obsess about things that really don't matter very much. 143 00:05:58,520 --> 00:06:00,080 Speaker 1: And so yeah, this is one of those things, is 144 00:06:00,080 --> 00:06:02,760 Speaker 1: where you can overthink it when you don't need to. Yeah, 145 00:06:02,800 --> 00:06:05,160 Speaker 1: and that's the perfect segue. It's a credit scores. I mean, 146 00:06:05,360 --> 00:06:07,800 Speaker 1: you know, having the perfect credit score. Do you actually 147 00:06:07,839 --> 00:06:10,279 Speaker 1: need to have a perfect credit score? Are you overthinking it? 148 00:06:10,279 --> 00:06:11,800 Speaker 1: We're gonna get to that here in a little bit. Yeah, 149 00:06:11,880 --> 00:06:13,480 Speaker 1: let's first mention the beer that we're having on the show. 150 00:06:13,560 --> 00:06:16,680 Speaker 1: This one's called Nuclear Sea Horse and it's by Boonshine Brewing. 151 00:06:16,960 --> 00:06:19,719 Speaker 1: Big thanks to listener Christopher for sending this one our way. 152 00:06:19,760 --> 00:06:21,040 Speaker 1: We'll give our thoughts on it at the end of 153 00:06:21,040 --> 00:06:22,880 Speaker 1: the episode. But for now, Matt, let's get to the 154 00:06:22,880 --> 00:06:24,800 Speaker 1: subject at hand. Let's ask the question and then talk 155 00:06:24,839 --> 00:06:27,240 Speaker 1: about it. Do I need the perfect credit score? And 156 00:06:27,320 --> 00:06:30,960 Speaker 1: perfection is something that sometimes we we strive for even 157 00:06:31,000 --> 00:06:34,280 Speaker 1: though we know it's not achievable. Sometimes it just random 158 00:06:34,279 --> 00:06:37,200 Speaker 1: areas of our lives. But it's easy to start to 159 00:06:37,240 --> 00:06:39,479 Speaker 1: think about our finances is wanting to get them in 160 00:06:39,520 --> 00:06:41,760 Speaker 1: a state of perfection as well, at least for Type 161 00:06:41,760 --> 00:06:44,480 Speaker 1: A personalities or indiogram ones, you know, like those are 162 00:06:44,480 --> 00:06:45,960 Speaker 1: the folks that are like, I need to have the 163 00:06:46,000 --> 00:06:48,160 Speaker 1: perfect score for us seven So, like, we don't really 164 00:06:48,200 --> 00:06:51,240 Speaker 1: care about that stuff. I'm not totally sure what I yet. Well, well, 165 00:06:51,240 --> 00:06:52,800 Speaker 1: we'll get to the bottom of that one of these days, 166 00:06:52,839 --> 00:06:56,400 Speaker 1: one of these days. But but honestly, still knowing that 167 00:06:56,440 --> 00:06:59,080 Speaker 1: perfection is impossible doesn't really stop us from trying in 168 00:06:59,120 --> 00:07:01,799 Speaker 1: some cases. And then in the case of our credit score, 169 00:07:02,200 --> 00:07:05,320 Speaker 1: it's important to note that perfection is is almost impossible, 170 00:07:05,560 --> 00:07:07,520 Speaker 1: but at the same time, having a great credit score 171 00:07:07,600 --> 00:07:10,960 Speaker 1: is incredibly important in the modern financial age. So how 172 00:07:11,040 --> 00:07:13,960 Speaker 1: much effort should we put into boosting our credit score 173 00:07:14,200 --> 00:07:17,320 Speaker 1: taking it into the realm of perfection. That's an important 174 00:07:17,360 --> 00:07:19,680 Speaker 1: question for us to ask so that we don't put 175 00:07:19,720 --> 00:07:22,120 Speaker 1: too much effort into something that won't offer enough of 176 00:07:22,160 --> 00:07:24,000 Speaker 1: a payoff for us. Um And that's what we're going 177 00:07:24,040 --> 00:07:26,200 Speaker 1: to discuss in today's episode. We don't want it to 178 00:07:26,280 --> 00:07:28,720 Speaker 1: be like the cell phone, where we put way too 179 00:07:28,800 --> 00:07:32,440 Speaker 1: much effort into something for minimal extra return. Yeah, not 180 00:07:32,640 --> 00:07:35,520 Speaker 1: knowing how high the credit score you actually need, uh, 181 00:07:35,600 --> 00:07:37,720 Speaker 1: and then how much time you should you know, be 182 00:07:37,960 --> 00:07:40,200 Speaker 1: be spending on it and thinking about it working towards 183 00:07:40,200 --> 00:07:42,520 Speaker 1: a healthy score. That's the thing that we're gonna you know, 184 00:07:42,520 --> 00:07:44,920 Speaker 1: really hone in on today. And some of our listeners 185 00:07:44,960 --> 00:07:47,360 Speaker 1: who are digging into their personal finances, you know that 186 00:07:47,400 --> 00:07:50,120 Speaker 1: they could actually be attempted to focus too hard on 187 00:07:50,160 --> 00:07:53,760 Speaker 1: the credit score. Uh, maybe even leading to their overall detriment, 188 00:07:53,800 --> 00:07:56,080 Speaker 1: you know. And so yeah, how do you know when 189 00:07:56,120 --> 00:07:59,840 Speaker 1: your credit score is good enough? Let's dig in. But yeah, 190 00:08:00,040 --> 00:08:03,160 Speaker 1: us though, we've got some thoughts on why you should 191 00:08:03,200 --> 00:08:07,400 Speaker 1: actually be spending less time thinking about your credit score. Yeah. Yeah, 192 00:08:07,440 --> 00:08:10,280 Speaker 1: overall you should actually be spending less of your life, 193 00:08:10,560 --> 00:08:13,640 Speaker 1: less of your energy thinking about your credit score. When 194 00:08:13,760 --> 00:08:15,320 Speaker 1: we spend too much time on our credit score, we 195 00:08:15,360 --> 00:08:18,440 Speaker 1: actually lose sight of the bigger picture right in pursuit 196 00:08:18,480 --> 00:08:22,840 Speaker 1: of the perfect the unattainable or almost unattainable, which is 197 00:08:22,920 --> 00:08:25,720 Speaker 1: the max credit score on the Pico scale. If it 198 00:08:25,720 --> 00:08:28,560 Speaker 1: did sound effects like, that's when the uh kind of 199 00:08:28,600 --> 00:08:31,640 Speaker 1: like the course of Angels would come in right exactly. 200 00:08:31,640 --> 00:08:34,840 Speaker 1: What that's perfection, right, Yeah, that's nirvana. That's the halo 201 00:08:34,840 --> 00:08:37,280 Speaker 1: on top of your credit score right there. But if 202 00:08:37,280 --> 00:08:39,960 Speaker 1: we're seeking that eight fifty, if we're going too hard 203 00:08:40,200 --> 00:08:42,000 Speaker 1: after the perfect score, it could cause us to get 204 00:08:42,080 --> 00:08:46,520 Speaker 1: lax on. Actually, other more important aspects of our personal finances, 205 00:08:46,559 --> 00:08:49,360 Speaker 1: like our larger money goals and ramping up our ability 206 00:08:49,400 --> 00:08:51,640 Speaker 1: to earn more, cutting back on our spending, like those 207 00:08:51,640 --> 00:08:54,480 Speaker 1: are the things that have the biggest impact on our 208 00:08:54,480 --> 00:08:56,960 Speaker 1: personal finances. Really, when it comes down to it, what's 209 00:08:56,960 --> 00:08:59,400 Speaker 1: the point of increasing your score by ten or twenty 210 00:08:59,440 --> 00:09:01,760 Speaker 1: points if it's keeping you from being able to focus 211 00:09:01,800 --> 00:09:04,240 Speaker 1: on excelling at work and getting that huge race, or 212 00:09:04,280 --> 00:09:07,559 Speaker 1: if it's causes you to to go on spending venders 213 00:09:07,679 --> 00:09:09,520 Speaker 1: is a way to treat yourself because you've put in 214 00:09:09,800 --> 00:09:12,440 Speaker 1: so much effort in in this one particular area. I 215 00:09:12,440 --> 00:09:15,559 Speaker 1: don't think we're necessarily defining a huge segment of our 216 00:09:15,559 --> 00:09:17,880 Speaker 1: listeners amount of people who obsess about their score to 217 00:09:17,920 --> 00:09:20,360 Speaker 1: this extent. But I do think it is a problem 218 00:09:20,440 --> 00:09:22,559 Speaker 1: because a credit score can be so tangible and it's 219 00:09:22,559 --> 00:09:24,880 Speaker 1: so easy to track. Now, some people do get a 220 00:09:24,880 --> 00:09:27,480 Speaker 1: little too obsessed about it um and it can cause 221 00:09:27,520 --> 00:09:29,760 Speaker 1: them to put less emphasis on the things that actually 222 00:09:29,800 --> 00:09:32,440 Speaker 1: matter the most. Yeah, I mean, even aside from financial 223 00:09:32,559 --> 00:09:35,000 Speaker 1: like the bigger financial goals, to just like personal life goals, 224 00:09:35,000 --> 00:09:37,000 Speaker 1: you know. Like I think there could be some instances 225 00:09:37,040 --> 00:09:39,920 Speaker 1: of maybe some super nerds out there who are letting, 226 00:09:39,960 --> 00:09:41,800 Speaker 1: like their credit score maybe get in way of like 227 00:09:41,840 --> 00:09:44,480 Speaker 1: their personal life like relationships where they're just like, oh, sorry, 228 00:09:44,480 --> 00:09:46,200 Speaker 1: I need to I don't I can't go on this 229 00:09:46,200 --> 00:09:48,240 Speaker 1: trip because I need to make sure I'm I've got 230 00:09:48,240 --> 00:09:50,160 Speaker 1: to put that charge on this this other credit card, 231 00:09:50,320 --> 00:09:52,440 Speaker 1: you know, like as far as manipulating and making sure 232 00:09:52,480 --> 00:09:54,920 Speaker 1: that your ratios are all right and things like that, that, 233 00:09:55,080 --> 00:09:57,240 Speaker 1: coupled with just the additional stress of having to think 234 00:09:57,280 --> 00:10:00,559 Speaker 1: about it not worth it right, striving after higher scores 235 00:10:00,600 --> 00:10:03,120 Speaker 1: could also just make you vulnerable to scammers. There are 236 00:10:03,160 --> 00:10:06,160 Speaker 1: a lot of services out there touting their ability to 237 00:10:06,360 --> 00:10:09,240 Speaker 1: immediately boost your score. Credit scores were sort of like 238 00:10:09,240 --> 00:10:12,640 Speaker 1: this low hanging fruit that companies are going after to 239 00:10:12,760 --> 00:10:14,600 Speaker 1: get their hands on your money. And so you know, 240 00:10:14,640 --> 00:10:16,800 Speaker 1: while you are working on your score, do you do 241 00:10:16,840 --> 00:10:18,600 Speaker 1: want to make sure that you avoid anyone asking you 242 00:10:18,760 --> 00:10:21,600 Speaker 1: for money to help you with your score. Working to 243 00:10:21,720 --> 00:10:24,440 Speaker 1: raise your credit score, it's a long road, and it's 244 00:10:24,480 --> 00:10:26,679 Speaker 1: not something that you should just throw some money at 245 00:10:26,679 --> 00:10:29,319 Speaker 1: force some immediate results. Yeah, it can be tempting, but 246 00:10:29,360 --> 00:10:31,040 Speaker 1: at the same time, those people usually take your money 247 00:10:31,080 --> 00:10:34,160 Speaker 1: and run and your score stays put um and and 248 00:10:34,200 --> 00:10:35,959 Speaker 1: so to highlight the fact that it takes a while, 249 00:10:36,040 --> 00:10:38,360 Speaker 1: Matt I thought it was actually important for us to 250 00:10:38,480 --> 00:10:41,559 Speaker 1: talk about what's usually involved to get a credit score 251 00:10:41,559 --> 00:10:44,400 Speaker 1: that's over eight hundred. And I think this will highlight 252 00:10:44,720 --> 00:10:48,000 Speaker 1: for our listeners maybe the futility at least in seeking 253 00:10:48,080 --> 00:10:50,839 Speaker 1: a perfect credit score. Typically you need to use less 254 00:10:50,880 --> 00:10:54,160 Speaker 1: than seven percent of your available credit limit, have no 255 00:10:54,400 --> 00:10:56,880 Speaker 1: late payments in the last seven years, and have a 256 00:10:56,960 --> 00:11:00,400 Speaker 1: twenty five year credit history. So for our younger listeners 257 00:11:00,400 --> 00:11:03,080 Speaker 1: in particular, it's really not even possible unless you know, 258 00:11:03,120 --> 00:11:04,560 Speaker 1: when you were a baby, your parents may do an 259 00:11:04,559 --> 00:11:06,440 Speaker 1: authorized user on a couple of credit cards and they've 260 00:11:06,440 --> 00:11:07,960 Speaker 1: been handling it well. I mean, it's just like we've 261 00:11:07,960 --> 00:11:10,400 Speaker 1: done recently with for our kids. We want to set 262 00:11:10,440 --> 00:11:12,840 Speaker 1: them up for having good credit in the future. But 263 00:11:12,880 --> 00:11:16,120 Speaker 1: that's one of those things. Yeah, that, Uh, it's almost unachievable. 264 00:11:16,120 --> 00:11:18,760 Speaker 1: It's essentially impossible for a lot of people unless for 265 00:11:18,800 --> 00:11:21,040 Speaker 1: a couple of decades or longer you've been handling your 266 00:11:21,040 --> 00:11:24,080 Speaker 1: money really, really well and been paying special attention to 267 00:11:24,120 --> 00:11:26,959 Speaker 1: that credit score. Yeah. So while striving after that perfect 268 00:11:27,000 --> 00:11:29,080 Speaker 1: credit scores and something that we would recommend your your 269 00:11:29,080 --> 00:11:31,440 Speaker 1: credit score, like, having a healthy credit score is still 270 00:11:31,840 --> 00:11:34,480 Speaker 1: an important piece of the personal finance puzzle, you know. 271 00:11:34,840 --> 00:11:36,800 Speaker 1: So even though a lot of listeners might be years 272 00:11:36,800 --> 00:11:40,000 Speaker 1: away from maybe even getting into the eight hundreds, Uh, 273 00:11:40,000 --> 00:11:43,360 Speaker 1: it's still really important to start working towards a healthy 274 00:11:43,360 --> 00:11:46,360 Speaker 1: credit score. And so why is it actually really all 275 00:11:46,360 --> 00:11:48,920 Speaker 1: that important? After the break, we will dive into it. 276 00:11:57,880 --> 00:11:59,880 Speaker 1: All right, we're back from the break, and Matt, we 277 00:12:00,080 --> 00:12:01,800 Speaker 1: just kind of made a point for why people should 278 00:12:01,800 --> 00:12:04,880 Speaker 1: be spending less time thinking about their credit score. Now, 279 00:12:05,120 --> 00:12:06,959 Speaker 1: let's quickly make the opposite point. That's what I love 280 00:12:07,000 --> 00:12:10,480 Speaker 1: to do. Point counterpoint, go back and forth, Obviously, there 281 00:12:10,520 --> 00:12:14,000 Speaker 1: are several reasons why you should be working to increase 282 00:12:14,000 --> 00:12:16,840 Speaker 1: your credit score, even while at the same time perfection 283 00:12:17,120 --> 00:12:19,439 Speaker 1: isn't something you should be striving for. First of all, 284 00:12:19,520 --> 00:12:21,720 Speaker 1: a higher score really does show that you're doing a 285 00:12:21,760 --> 00:12:24,360 Speaker 1: decent job managing your money. Your ability to make payments 286 00:12:24,360 --> 00:12:27,440 Speaker 1: on time demonstrates that you're at least avoiding late payments, 287 00:12:27,600 --> 00:12:30,280 Speaker 1: plus those awful penalty a p rs, you're not paying interest. 288 00:12:30,520 --> 00:12:33,920 Speaker 1: So that credit score is essentially a snapshot picture of 289 00:12:34,000 --> 00:12:36,080 Speaker 1: the kind of person you are, how reliable you are 290 00:12:36,120 --> 00:12:39,079 Speaker 1: when it comes to handling your debts and handling your money. Yeah. Yeah, 291 00:12:39,080 --> 00:12:40,920 Speaker 1: it's a good indicator for what you're doing with your 292 00:12:40,920 --> 00:12:45,640 Speaker 1: money now, although it's not like a like a comprehensive report, right, 293 00:12:45,720 --> 00:12:47,280 Speaker 1: and like it makes me think of like maybe a 294 00:12:47,320 --> 00:12:49,440 Speaker 1: good metaphor is like a speed limit, and so if 295 00:12:49,480 --> 00:12:51,640 Speaker 1: you follow the law, you stay within the speed limit. 296 00:12:52,280 --> 00:12:54,800 Speaker 1: That doesn't necessarily mean that you are an excellent driver, 297 00:12:55,080 --> 00:12:57,200 Speaker 1: but at least you're doing this one thing, right, Like, 298 00:12:57,240 --> 00:12:59,480 Speaker 1: there's a good chance, like you're less likely to get 299 00:12:59,520 --> 00:13:01,960 Speaker 1: an accident if you're going to speed limit versus twenty 300 00:13:02,040 --> 00:13:05,320 Speaker 1: or thirty over. But having a good credit score, just 301 00:13:05,360 --> 00:13:06,960 Speaker 1: like in the same way that following the speed limit 302 00:13:07,000 --> 00:13:09,839 Speaker 1: doesn't make you a great driver. Having a great credit 303 00:13:09,880 --> 00:13:11,840 Speaker 1: score doesn't mean that you're doing a really good job 304 00:13:11,880 --> 00:13:15,160 Speaker 1: saving four retirements, that you're achieving your your financial goals. 305 00:13:15,480 --> 00:13:17,320 Speaker 1: But it is kind of a like you said, like 306 00:13:17,320 --> 00:13:19,280 Speaker 1: a snapshot. It's a good indicator for us to kind 307 00:13:19,280 --> 00:13:21,640 Speaker 1: of measure ourselves up against here and there. It can 308 00:13:21,720 --> 00:13:25,679 Speaker 1: mean that you're just not totally screwing things up. Yeah, exactly, 309 00:13:25,720 --> 00:13:27,800 Speaker 1: which which honestly, like, if you're a lender, that's what 310 00:13:27,840 --> 00:13:29,480 Speaker 1: you want to know. Does this person screw things up? 311 00:13:29,679 --> 00:13:32,080 Speaker 1: And the credit score is a good indication of that, 312 00:13:32,120 --> 00:13:34,720 Speaker 1: You're right, it's not always an indication for the positive 313 00:13:34,760 --> 00:13:37,440 Speaker 1: that this person is like doing awesome with their savings investments, 314 00:13:37,440 --> 00:13:39,719 Speaker 1: when it just means, man, this person is not completely 315 00:13:39,920 --> 00:13:42,120 Speaker 1: ruining their life when it comes to Debton credit. Yeah, Yeah, 316 00:13:42,120 --> 00:13:45,000 Speaker 1: they're good enough right now. Yeah. And obviously aside from that, 317 00:13:45,040 --> 00:13:47,080 Speaker 1: you know, one of the most straightforward benefits of having 318 00:13:47,080 --> 00:13:51,400 Speaker 1: a higher score means better interest rates when borrowing. Hopefully 319 00:13:51,480 --> 00:13:53,800 Speaker 1: you aren't borrowing too much money, but when you do 320 00:13:53,920 --> 00:13:56,800 Speaker 1: need a loan, having a top tier credit score will 321 00:13:56,920 --> 00:13:59,400 Speaker 1: ensure that you get the best terms, which means that 322 00:13:59,440 --> 00:14:02,160 Speaker 1: you'll pay less. And so getting a more favorable interest 323 00:14:02,240 --> 00:14:04,600 Speaker 1: rate is actually a big deal here, right, And so 324 00:14:04,640 --> 00:14:07,760 Speaker 1: for example, on a three thousand dollar home, having a 325 00:14:07,840 --> 00:14:10,960 Speaker 1: higher credit score could easily mean scoring an interest rate 326 00:14:11,120 --> 00:14:14,200 Speaker 1: that is maybe a half a percent lower, which means 327 00:14:14,280 --> 00:14:17,760 Speaker 1: paying about twenty five dollars less over the life of 328 00:14:17,760 --> 00:14:20,280 Speaker 1: a thirty year mortgage. Uh. This is maybe just a 329 00:14:20,280 --> 00:14:22,280 Speaker 1: way for folks to see that, Like, no, your credit 330 00:14:22,320 --> 00:14:25,040 Speaker 1: score impacts interest rates that you pay, and the interest 331 00:14:25,120 --> 00:14:27,240 Speaker 1: rate that you have directly correlates with the amount of 332 00:14:27,240 --> 00:14:29,000 Speaker 1: money that you're going to spend for something like this, 333 00:14:29,040 --> 00:14:31,080 Speaker 1: And so this is real money. It has a real 334 00:14:31,120 --> 00:14:33,360 Speaker 1: impact on our finances. Yeah, and when you're talking about 335 00:14:34,040 --> 00:14:37,040 Speaker 1: dollars over thirty years, that's closing in on a thousand 336 00:14:37,080 --> 00:14:39,080 Speaker 1: dollars a year or a hundred dollars a month. Let's 337 00:14:39,120 --> 00:14:41,040 Speaker 1: say it's ninety bucks a month. I mean, who couldn't 338 00:14:41,120 --> 00:14:43,200 Speaker 1: use that back in their back in their life. And 339 00:14:43,280 --> 00:14:45,280 Speaker 1: so much of that comes down to your credit score. 340 00:14:45,880 --> 00:14:48,000 Speaker 1: What you'll pay for insurance is also affected by your 341 00:14:48,000 --> 00:14:50,800 Speaker 1: credit score, to at least in most states. Some states 342 00:14:50,880 --> 00:14:53,640 Speaker 1: don't allow or at least severely limit the usage of 343 00:14:53,720 --> 00:14:56,200 Speaker 1: the credit score and factoring premiums. If you live in 344 00:14:56,200 --> 00:15:00,840 Speaker 1: like California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, in Utah, those 345 00:15:00,880 --> 00:15:03,320 Speaker 1: are the only states where your credit score won't impact 346 00:15:03,320 --> 00:15:05,720 Speaker 1: what you pay for car or homeowners insurance, or is 347 00:15:06,000 --> 00:15:08,760 Speaker 1: at least legally not allowed to impact it. But in 348 00:15:08,760 --> 00:15:11,040 Speaker 1: in most of the other states it is a factor. 349 00:15:11,080 --> 00:15:14,240 Speaker 1: And so your credit score will partially at least determine 350 00:15:14,400 --> 00:15:17,120 Speaker 1: in addition with other factors like your age and driving history, right, 351 00:15:17,160 --> 00:15:19,840 Speaker 1: it will determine the rates that you're paying. And again 352 00:15:20,040 --> 00:15:22,560 Speaker 1: we talked about ninety bucks a month maybe for your 353 00:15:22,600 --> 00:15:25,280 Speaker 1: home mortgage, This could be ninety bucks or more a 354 00:15:25,360 --> 00:15:28,160 Speaker 1: year on your homeowners and car insurance. So it's one 355 00:15:28,160 --> 00:15:30,720 Speaker 1: of those things that having a good credit score will 356 00:15:30,760 --> 00:15:33,480 Speaker 1: save you money in that realm too, right. Yeah. In 357 00:15:33,520 --> 00:15:36,280 Speaker 1: addition to that, your employment can even be subject to 358 00:15:36,440 --> 00:15:40,000 Speaker 1: having a good credit score. Stats show that twenty of 359 00:15:40,080 --> 00:15:43,320 Speaker 1: human resource professionals that they check your credit history when 360 00:15:43,400 --> 00:15:46,320 Speaker 1: hiring for a position. Uh, they won't have access to 361 00:15:46,320 --> 00:15:49,000 Speaker 1: your actual score, but your report is what they have 362 00:15:49,040 --> 00:15:51,800 Speaker 1: access to, and that is what essentially informs your credit score. 363 00:15:52,040 --> 00:15:55,000 Speaker 1: Right and so you're responsible handling of credit or or 364 00:15:55,120 --> 00:15:58,160 Speaker 1: like thereof could have an impact on the job offers 365 00:15:58,160 --> 00:16:01,440 Speaker 1: that you receive, in particular jobs that have security clearances 366 00:16:01,480 --> 00:16:03,040 Speaker 1: attached to them as well. They don't want you to 367 00:16:03,120 --> 00:16:06,360 Speaker 1: be blackmail herble. So all these ways, right, whether it's employments, 368 00:16:06,560 --> 00:16:09,720 Speaker 1: the amount you're paying for your homeowners or car insurance, 369 00:16:10,320 --> 00:16:12,280 Speaker 1: or the rate that you get if you're buying home, 370 00:16:12,560 --> 00:16:14,800 Speaker 1: all these things are are impacted by your credit score 371 00:16:14,800 --> 00:16:16,360 Speaker 1: by this one number. So it makes sense that this 372 00:16:16,440 --> 00:16:18,760 Speaker 1: is something that, yes, we should be paying attention to, 373 00:16:18,920 --> 00:16:21,200 Speaker 1: but doesn't need to be perfect. Joel, No, no, it 374 00:16:21,200 --> 00:16:24,000 Speaker 1: doesn't know, it doesn't need to be perfect, But you're right, 375 00:16:24,000 --> 00:16:25,320 Speaker 1: it is something that that we do need to pay 376 00:16:25,360 --> 00:16:27,800 Speaker 1: attention to. And so I guess it's important now to 377 00:16:27,800 --> 00:16:31,160 Speaker 1: start talking about, well what is a good score? What's 378 00:16:31,160 --> 00:16:34,840 Speaker 1: good enough? If perfection isn't needed, but we do need 379 00:16:34,880 --> 00:16:36,840 Speaker 1: to pay enough attention to make sure our credit score 380 00:16:36,880 --> 00:16:39,280 Speaker 1: is in a good range. Well what is a good range? 381 00:16:39,680 --> 00:16:43,560 Speaker 1: And first it's important to say it can be complicated. 382 00:16:44,960 --> 00:16:47,880 Speaker 1: It's about a nice non answer for you, Well, it's yeah, 383 00:16:47,920 --> 00:16:49,520 Speaker 1: it's not an easy answer. And part of the reason 384 00:16:49,600 --> 00:16:51,280 Speaker 1: it's not an easy answer is because there are so 385 00:16:51,320 --> 00:16:54,440 Speaker 1: many different credit scores out there, right, that there's not 386 00:16:54,720 --> 00:16:57,600 Speaker 1: just one. FICO is the main credit score, and it's 387 00:16:57,600 --> 00:16:59,120 Speaker 1: the one, Matt, you and I talked about the most 388 00:16:59,160 --> 00:17:02,320 Speaker 1: because it's it's the most widely used. But the Vantage 389 00:17:02,320 --> 00:17:04,760 Speaker 1: score is another really popular one put up by another 390 00:17:04,840 --> 00:17:07,800 Speaker 1: credit scoring company, and and there are other well known 391 00:17:07,840 --> 00:17:11,000 Speaker 1: reputable systems as well. But even Fico, Matt, when you're 392 00:17:11,040 --> 00:17:13,840 Speaker 1: boiling that down, they've got different versions of the FICO score. 393 00:17:14,000 --> 00:17:17,119 Speaker 1: And so you think currently we're on PICO eight nine. Yeah, 394 00:17:17,160 --> 00:17:19,760 Speaker 1: it's like it's literally the eighth iteration. I think it is. Yeah, 395 00:17:19,760 --> 00:17:22,360 Speaker 1: They're always launching new ones, and different lenders will use 396 00:17:22,560 --> 00:17:26,480 Speaker 1: either the most recent or maybe one generation older FICO score, 397 00:17:26,600 --> 00:17:28,640 Speaker 1: so we can be confusing. Yeah, I prefer the Legacy 398 00:17:28,680 --> 00:17:32,560 Speaker 1: five edition. That was good. It was like Windows Man 399 00:17:32,760 --> 00:17:35,679 Speaker 1: so great. Uh, but I think you know all that 400 00:17:35,720 --> 00:17:38,080 Speaker 1: meaning said, It can make it kind of crazy for 401 00:17:38,080 --> 00:17:41,200 Speaker 1: people to try to understand what their score is and 402 00:17:41,560 --> 00:17:44,080 Speaker 1: whether it's good or not. Because there are so many scores, 403 00:17:44,359 --> 00:17:46,160 Speaker 1: it's hard to know which one to follow and hard 404 00:17:46,160 --> 00:17:49,280 Speaker 1: to track them accurately. Some people will maybe right in 405 00:17:49,280 --> 00:17:51,520 Speaker 1: occasionally Mautin they'll be like, I've got one credit score 406 00:17:51,520 --> 00:17:53,680 Speaker 1: that's thirty five points lower than the other one. What's 407 00:17:53,680 --> 00:17:55,760 Speaker 1: going on? And that's part of it is that they 408 00:17:55,800 --> 00:17:59,639 Speaker 1: weigh things differently. There's a different algorithms essentially that spit 409 00:17:59,640 --> 00:18:03,040 Speaker 1: out a at score um and they're factoring certain things uniquely. 410 00:18:03,440 --> 00:18:05,600 Speaker 1: But this also is not worth getting hung up on. 411 00:18:06,000 --> 00:18:08,959 Speaker 1: It would mean expending too much energy thinking about your 412 00:18:08,960 --> 00:18:12,360 Speaker 1: credit score to go too deep into all the many 413 00:18:12,440 --> 00:18:14,400 Speaker 1: different credit scores that you have. And so I think 414 00:18:14,440 --> 00:18:17,320 Speaker 1: we can give some good general advice without getting too 415 00:18:17,359 --> 00:18:19,439 Speaker 1: specific as to what it looks like to have a 416 00:18:19,440 --> 00:18:22,240 Speaker 1: good credit score. Yeah, so let's give some solid numbers now, 417 00:18:22,280 --> 00:18:24,080 Speaker 1: but we're not going to give specific numbers, but we 418 00:18:24,119 --> 00:18:27,320 Speaker 1: will give some ranges of credit scores, right, just are better? Yeah, 419 00:18:27,400 --> 00:18:30,000 Speaker 1: So generally speaking, if you're it's kind of like horse shoes, 420 00:18:30,080 --> 00:18:33,560 Speaker 1: you know, like it's close and close. Getting close matters, Yeah, exactly. 421 00:18:34,320 --> 00:18:38,080 Speaker 1: Uh So, Like broadly speaking, right, if your scores below seven, 422 00:18:38,520 --> 00:18:41,200 Speaker 1: that's when it's time to get more focused on getting 423 00:18:41,280 --> 00:18:43,320 Speaker 1: that score higher. You don't want to be in the 424 00:18:43,359 --> 00:18:46,119 Speaker 1: five to six hundred range because it will negatively impact 425 00:18:46,160 --> 00:18:47,960 Speaker 1: you in a lot of different ways, like you know, 426 00:18:48,000 --> 00:18:50,119 Speaker 1: like we just mentioned, however, you know, if you are 427 00:18:50,160 --> 00:18:52,440 Speaker 1: in poor shape, that doesn't mean that you won't be 428 00:18:52,520 --> 00:18:54,960 Speaker 1: able to do things like buy a house. Right. The 429 00:18:55,000 --> 00:18:58,000 Speaker 1: average credit score of first time homebuyers last year was 430 00:18:58,240 --> 00:19:01,359 Speaker 1: six eight four, Joel, I mean, I was surprised to 431 00:19:01,359 --> 00:19:03,439 Speaker 1: see that number. It's actually a good bit lower than 432 00:19:03,480 --> 00:19:05,919 Speaker 1: I was expecting. But know that you you know, you 433 00:19:05,960 --> 00:19:09,720 Speaker 1: might qualify for say alone thirty year loan, but you'll 434 00:19:09,720 --> 00:19:12,760 Speaker 1: be paying a lot more an interest. Uh. This is 435 00:19:12,960 --> 00:19:14,800 Speaker 1: obviously this has to do with risk. If if a 436 00:19:14,800 --> 00:19:17,119 Speaker 1: bank or a lender is gonna lend you money and 437 00:19:17,280 --> 00:19:19,439 Speaker 1: your credit score is a lot lower, well they have 438 00:19:19,560 --> 00:19:22,240 Speaker 1: to account for that risk, right, and like you are 439 00:19:22,320 --> 00:19:24,439 Speaker 1: risk your borrower, and so because of that, they're going 440 00:19:24,520 --> 00:19:27,360 Speaker 1: to charge you higher interest to make sure that it's 441 00:19:27,440 --> 00:19:30,199 Speaker 1: worth their time. Yeah, now that we're getting into the 442 00:19:30,280 --> 00:19:32,240 Speaker 1: ranges here, and I feel like you just gave a 443 00:19:32,240 --> 00:19:34,359 Speaker 1: good line of demarcation there. Though, if your score is 444 00:19:34,400 --> 00:19:37,000 Speaker 1: below seven hundred, it demands more of your time, more 445 00:19:37,000 --> 00:19:38,879 Speaker 1: of your focus in order to to beef that up 446 00:19:38,920 --> 00:19:40,960 Speaker 1: because of the many ways that that lower score is 447 00:19:40,960 --> 00:19:43,199 Speaker 1: going to impact your life. Right, And so let's talk 448 00:19:43,240 --> 00:19:45,560 Speaker 1: about another range your If your scores in the seven 449 00:19:45,600 --> 00:19:48,920 Speaker 1: to eight hundred range, that puts you in pretty good shape. 450 00:19:49,040 --> 00:19:51,560 Speaker 1: I'd say really good shape. Like if you're in that range, 451 00:19:51,640 --> 00:19:55,440 Speaker 1: like you can just end this podcast now specifically, don't 452 00:19:55,560 --> 00:19:58,080 Speaker 1: end the podcast specifically though, If you can get above 453 00:19:58,240 --> 00:20:02,240 Speaker 1: seven forty, that's kind of the really important number um 454 00:20:02,320 --> 00:20:04,760 Speaker 1: in so many circumstances, that's typically going to qualify you 455 00:20:04,800 --> 00:20:07,280 Speaker 1: for the best rates available. That typically seven forty and 456 00:20:07,320 --> 00:20:10,040 Speaker 1: above is top tier. But if you're above seven hundred, 457 00:20:10,160 --> 00:20:11,640 Speaker 1: it just means you don't have to fret as much, 458 00:20:11,680 --> 00:20:14,280 Speaker 1: that's for sure. This tends to be the sweet spots 459 00:20:14,280 --> 00:20:16,399 Speaker 1: seven forty and above when it comes to your credit score. 460 00:20:16,600 --> 00:20:18,879 Speaker 1: If you're in that range, then your credit score should 461 00:20:18,880 --> 00:20:22,640 Speaker 1: be taking up minimal space in your brain. Continue obviously 462 00:20:22,680 --> 00:20:24,600 Speaker 1: to make your payments on time or early, but it 463 00:20:24,640 --> 00:20:26,560 Speaker 1: doesn't necessarily need to be constantly on your mind. You 464 00:20:26,560 --> 00:20:28,680 Speaker 1: don't have to be thinking often about how you can 465 00:20:28,760 --> 00:20:30,880 Speaker 1: improve it and get it better. You're at the point 466 00:20:30,960 --> 00:20:33,320 Speaker 1: where your score is essentially in the good enough range, 467 00:20:33,480 --> 00:20:37,760 Speaker 1: and expending more energy to send it higher is mostly 468 00:20:37,760 --> 00:20:40,680 Speaker 1: wasted energy. And again we're giving ranges because I mean 469 00:20:40,720 --> 00:20:43,280 Speaker 1: it varies from lendard to lender, right, it depends on 470 00:20:43,320 --> 00:20:46,239 Speaker 1: the loan that you're applying for. Uh, it depends on 471 00:20:46,280 --> 00:20:49,320 Speaker 1: how closely an HR manager is looking at your credit report, 472 00:20:49,359 --> 00:20:51,119 Speaker 1: you know, like again that they don't see scores, They 473 00:20:51,119 --> 00:20:53,040 Speaker 1: just see kind of generally speaking, how it is that 474 00:20:53,040 --> 00:20:55,360 Speaker 1: you're handling your money. And so it's difficult to give 475 00:20:55,400 --> 00:20:57,960 Speaker 1: specific numbers to say that this is the exact number 476 00:20:57,960 --> 00:21:00,720 Speaker 1: you need, because really it does vary from person to 477 00:21:00,800 --> 00:21:04,199 Speaker 1: person and from institution to institution. So Joel, you you 478 00:21:04,200 --> 00:21:06,440 Speaker 1: took it from seven to eight hundred. So of course 479 00:21:06,480 --> 00:21:09,760 Speaker 1: if you're above eight hundred, then you're you're pretty much golden, right, 480 00:21:10,280 --> 00:21:12,720 Speaker 1: But remember that the you know, the benefits that you 481 00:21:12,760 --> 00:21:15,640 Speaker 1: receive from being above eight hundred and getting it, say, 482 00:21:15,720 --> 00:21:18,439 Speaker 1: from you know, eight hundred to eight fifty, the benefits 483 00:21:18,480 --> 00:21:21,080 Speaker 1: are going to diminish greatly at this point, Like no 484 00:21:21,119 --> 00:21:23,920 Speaker 1: one really cares except for you. Uh maybe in your 485 00:21:23,960 --> 00:21:25,639 Speaker 1: mind you've kind of got this leader board going and 486 00:21:25,640 --> 00:21:28,080 Speaker 1: you're just kind of competing against yourself, like nobody else 487 00:21:28,160 --> 00:21:30,280 Speaker 1: really cares. Lenders don't care all that much. It's kind 488 00:21:30,280 --> 00:21:32,399 Speaker 1: of like finishing up college and you got an A 489 00:21:32,440 --> 00:21:34,240 Speaker 1: in the class, but you want to tell your future 490 00:21:34,280 --> 00:21:36,719 Speaker 1: employer that you got a ninety nine on the final 491 00:21:36,960 --> 00:21:40,560 Speaker 1: and they don't care. They don't care. I mean I 492 00:21:40,600 --> 00:21:43,439 Speaker 1: remember interviewing four jobs like after college, and like like 493 00:21:43,480 --> 00:21:46,359 Speaker 1: they don't care if you're kum lade or magna um laude, 494 00:21:46,520 --> 00:21:47,879 Speaker 1: Like maybe not for the jobs you and I were 495 00:21:47,880 --> 00:21:51,199 Speaker 1: applying for. At least very true. That is true, but 496 00:21:51,280 --> 00:21:53,440 Speaker 1: it is one of those things where above a certain point, 497 00:21:53,440 --> 00:21:54,920 Speaker 1: it's like, great, I see your g p A, I 498 00:21:54,960 --> 00:21:56,679 Speaker 1: saw what you put in. I see the basics on 499 00:21:56,680 --> 00:21:59,200 Speaker 1: your resume. I don't care about the specifics. And that's 500 00:21:59,240 --> 00:22:01,160 Speaker 1: what That's what you're gonna into when you're between eight 501 00:22:01,200 --> 00:22:04,200 Speaker 1: and eight fifty is the specifics. Nobody cares. Yeah. Yeah, 502 00:22:04,200 --> 00:22:05,960 Speaker 1: there are so many other things to focus on that 503 00:22:05,960 --> 00:22:08,199 Speaker 1: would have a bigger impact on your ability. Like just 504 00:22:08,240 --> 00:22:10,080 Speaker 1: like when you're interviewing, there's a so many other things 505 00:22:10,080 --> 00:22:12,480 Speaker 1: that you can focus on, whether it comes to like 506 00:22:12,520 --> 00:22:14,679 Speaker 1: having good eye contact and making sure that you're listening 507 00:22:14,680 --> 00:22:17,080 Speaker 1: to whoever is interviewing you and that you're asking good questions, 508 00:22:17,119 --> 00:22:19,479 Speaker 1: Like all those things matter so much more than just like, oh, 509 00:22:19,520 --> 00:22:22,600 Speaker 1: yeah I got a ninety nine on that final. Uh. 510 00:22:22,600 --> 00:22:24,639 Speaker 1: There are so many other things that we talked about earlier, 511 00:22:24,640 --> 00:22:26,639 Speaker 1: that when it comes to our personal finances, we need 512 00:22:26,680 --> 00:22:29,560 Speaker 1: to be looking at those things rather than having the 513 00:22:29,600 --> 00:22:32,119 Speaker 1: perfect credit score. But that being said, if you are 514 00:22:32,119 --> 00:22:34,760 Speaker 1: above a hunter, that's great. Continue to work on maintaining 515 00:22:35,119 --> 00:22:38,400 Speaker 1: that great score, but just put the idea of achieving 516 00:22:38,400 --> 00:22:41,159 Speaker 1: perfection just way out of your mind. It really is 517 00:22:41,200 --> 00:22:43,720 Speaker 1: a fool's Errand and so with all that mind, you 518 00:22:43,760 --> 00:22:45,199 Speaker 1: need to ask yourself, like, do you even know what 519 00:22:45,240 --> 00:22:47,639 Speaker 1: your credit score is? You might be listening to this 520 00:22:47,640 --> 00:22:50,119 Speaker 1: conversation that Joel and I are having and you may 521 00:22:50,160 --> 00:22:52,280 Speaker 1: not even know your score at all. And so that's 522 00:22:52,280 --> 00:22:55,399 Speaker 1: an important first step in monitoring that score and knowing 523 00:22:55,440 --> 00:22:58,000 Speaker 1: how to proceed. So we'll get to that and how 524 00:22:58,040 --> 00:23:11,080 Speaker 1: to easily improve your credit score right after the break. Alright, 525 00:23:11,119 --> 00:23:13,560 Speaker 1: go back from the break, and Matt, that is a 526 00:23:13,600 --> 00:23:15,879 Speaker 1: big problem, by the way, if people don't know what 527 00:23:15,920 --> 00:23:18,639 Speaker 1: their credit score is, true, because how do you know 528 00:23:18,680 --> 00:23:20,199 Speaker 1: what ranger and how do you know whether or not 529 00:23:20,480 --> 00:23:22,439 Speaker 1: you have a credit score that either needs to be 530 00:23:22,480 --> 00:23:26,120 Speaker 1: improved upon or you're cool to not think about too much. Well, 531 00:23:26,320 --> 00:23:28,560 Speaker 1: let's talk about where to go to get updated on 532 00:23:28,600 --> 00:23:32,080 Speaker 1: that score. First, three weekly credit reports are still available 533 00:23:32,080 --> 00:23:35,600 Speaker 1: on annual credit report dot Com through April one. That's 534 00:23:35,600 --> 00:23:37,439 Speaker 1: only a site where you can get your credit report 535 00:23:37,520 --> 00:23:40,600 Speaker 1: for free, though as authorized by federal law, those aren't 536 00:23:40,600 --> 00:23:43,160 Speaker 1: gonna help you see your score, although they will give 537 00:23:43,200 --> 00:23:45,919 Speaker 1: you insight into what's dragging your score down. The credit 538 00:23:45,960 --> 00:23:49,439 Speaker 1: score is essentially a translation, a numerical translation of the 539 00:23:49,480 --> 00:23:52,560 Speaker 1: things that are happening on your credit report behind the scenes. Yeah, 540 00:23:52,560 --> 00:23:53,720 Speaker 1: maybe it's sort of like if you go to the 541 00:23:53,760 --> 00:23:55,399 Speaker 1: doctor and you get a physical and they kind of 542 00:23:55,440 --> 00:23:57,720 Speaker 1: like looks you over and really looks into like everything, 543 00:23:57,720 --> 00:23:59,359 Speaker 1: and she's like, yeah, you're a six out of ten. 544 00:24:00,240 --> 00:24:02,720 Speaker 1: You're above average, but but not doing so great, barely 545 00:24:02,720 --> 00:24:04,879 Speaker 1: above average. But but the thing is, what if she 546 00:24:04,920 --> 00:24:06,680 Speaker 1: doesn't give you a score, you know, like what if 547 00:24:06,680 --> 00:24:09,040 Speaker 1: she's just like, hey, like you're you're you're generally speaking, 548 00:24:09,040 --> 00:24:10,960 Speaker 1: you're in you're in pretty good health, but she doesn't 549 00:24:10,960 --> 00:24:13,040 Speaker 1: give you your weight, or she does maybe she doesn't 550 00:24:13,040 --> 00:24:15,560 Speaker 1: give your blood pressure. Like, sometimes it's helpful to have 551 00:24:15,600 --> 00:24:18,800 Speaker 1: these numerical scores and touch points so that we know, 552 00:24:19,000 --> 00:24:21,320 Speaker 1: you know, basically where we are and then where we 553 00:24:21,359 --> 00:24:23,239 Speaker 1: need to go from there. Right, that's kind of how 554 00:24:23,240 --> 00:24:25,280 Speaker 1: I see the report versus the score a little bit. 555 00:24:25,359 --> 00:24:27,800 Speaker 1: The reports like the deep dive and you can see 556 00:24:27,840 --> 00:24:29,960 Speaker 1: what's going on, but the score gives you yeah that 557 00:24:30,040 --> 00:24:33,919 Speaker 1: perfectly easy to understand, um numerical translation. Yeah. Yeah. So 558 00:24:33,920 --> 00:24:37,040 Speaker 1: that's where you can go to get those weekly free reports. 559 00:24:37,040 --> 00:24:39,840 Speaker 1: But then beyond that to credit Karma and Credit score Card, 560 00:24:40,320 --> 00:24:43,080 Speaker 1: which is a product or a site run by discover Card, 561 00:24:43,320 --> 00:24:45,960 Speaker 1: are two of our favorite places to check your actual 562 00:24:46,000 --> 00:24:49,040 Speaker 1: credit score. Most people that have a credit card will 563 00:24:49,080 --> 00:24:51,680 Speaker 1: notice that they are offered a free monthly credit score 564 00:24:51,720 --> 00:24:53,200 Speaker 1: there as well. If you go to your summary page 565 00:24:53,240 --> 00:24:55,560 Speaker 1: oftentimes like where it'll have a link and it'll link 566 00:24:55,600 --> 00:24:57,879 Speaker 1: out and you can, you know, easily see your credit score. 567 00:24:57,960 --> 00:25:00,119 Speaker 1: But one of the coolest things about Credit Karma the 568 00:25:00,200 --> 00:25:03,200 Speaker 1: dashboard feature, which really helps you to to see where 569 00:25:03,200 --> 00:25:06,040 Speaker 1: you're falling short and where to turn your focus in 570 00:25:06,160 --> 00:25:09,359 Speaker 1: order to improve right and so. And this is helpful 571 00:25:09,400 --> 00:25:13,239 Speaker 1: because staying updated, uh, you know, on what your score is, 572 00:25:13,359 --> 00:25:15,680 Speaker 1: maybe every month or so, will help you to stay 573 00:25:15,680 --> 00:25:18,520 Speaker 1: on top of it, you know, hopefully without obsessing over it. 574 00:25:18,520 --> 00:25:20,199 Speaker 1: It's something that you want to be tuned into, but 575 00:25:20,240 --> 00:25:22,840 Speaker 1: you don't want it to be all consuming and so 576 00:25:22,920 --> 00:25:25,760 Speaker 1: that way, if you see uh significant drop that can 577 00:25:25,800 --> 00:25:27,880 Speaker 1: tip you off to something that may not be right, 578 00:25:27,960 --> 00:25:30,080 Speaker 1: it's good to keep tabs on it. Yeah, So if 579 00:25:30,080 --> 00:25:32,160 Speaker 1: you don't know your score, go to one of those 580 00:25:32,160 --> 00:25:34,320 Speaker 1: two sites we mentioned, or check out the score provided 581 00:25:34,359 --> 00:25:36,359 Speaker 1: to you buy your credit card company. That will at 582 00:25:36,400 --> 00:25:38,760 Speaker 1: least help you know where you stand. And then if 583 00:25:38,760 --> 00:25:41,160 Speaker 1: you have a score that's hurting, that's not looking so good, 584 00:25:41,200 --> 00:25:44,399 Speaker 1: that is in that sub seven range. Um, here's what 585 00:25:44,440 --> 00:25:46,040 Speaker 1: you need to do in order to see that score 586 00:25:46,040 --> 00:25:49,560 Speaker 1: go up. First off, you need to be consistent, and 587 00:25:49,640 --> 00:25:53,480 Speaker 1: this means making payments on time, hopefully in full, every 588 00:25:53,520 --> 00:25:56,240 Speaker 1: single month. The more consistent you can be in paying 589 00:25:56,280 --> 00:25:58,800 Speaker 1: your debts in a timely manner, the more your score 590 00:25:58,880 --> 00:26:01,639 Speaker 1: is going to react positibly. For most people, Matt, it's 591 00:26:01,760 --> 00:26:05,240 Speaker 1: late payments that are holding down their credit score. So 592 00:26:05,359 --> 00:26:07,320 Speaker 1: getting on top of that and making sure you're paying 593 00:26:07,680 --> 00:26:11,040 Speaker 1: on time is a huge component in working towards fixing 594 00:26:11,040 --> 00:26:14,280 Speaker 1: that score. Yeah, that's right. It's important because on time 595 00:26:14,320 --> 00:26:17,560 Speaker 1: payments make up of your PHICO score, So this is 596 00:26:17,720 --> 00:26:20,199 Speaker 1: a big category to keep in mind. Um. And then 597 00:26:20,240 --> 00:26:21,880 Speaker 1: something else, you know, if you're looking to improve your 598 00:26:21,880 --> 00:26:25,320 Speaker 1: your credit score. Don't completely avoid debts. You know, sometimes 599 00:26:25,320 --> 00:26:28,639 Speaker 1: the knee jerk reaction might be to to avoid debt altogether, 600 00:26:28,960 --> 00:26:31,359 Speaker 1: maybe to close accounts and credit cards that you've had 601 00:26:31,400 --> 00:26:33,600 Speaker 1: around for years, because uh, you know, you don't want 602 00:26:33,600 --> 00:26:35,520 Speaker 1: to get into maybe some bad habits, that kind of thing. 603 00:26:35,680 --> 00:26:38,399 Speaker 1: But that's actually the exact opposite of what you need 604 00:26:38,440 --> 00:26:41,360 Speaker 1: to do in order to improve your score. You need 605 00:26:41,400 --> 00:26:45,040 Speaker 1: to keep those accounts open, uh and active. Because old 606 00:26:45,040 --> 00:26:47,639 Speaker 1: credit boost your score, it doesn't have nearly the impact 607 00:26:47,760 --> 00:26:50,920 Speaker 1: that on time payments does. But yeah, you're the length 608 00:26:50,960 --> 00:26:53,439 Speaker 1: of your credit history does have a pretty large effect 609 00:26:53,480 --> 00:26:55,719 Speaker 1: on your credit score. But of course you do need 610 00:26:55,760 --> 00:26:59,040 Speaker 1: to ensure that you are using that credit card sparingly, 611 00:26:59,119 --> 00:27:01,280 Speaker 1: that you that you are you ing those accounts in 612 00:27:01,320 --> 00:27:03,679 Speaker 1: a way that that you're being responsible. You know, like 613 00:27:03,720 --> 00:27:06,480 Speaker 1: you don't want again, you don't want to have achieve 614 00:27:06,560 --> 00:27:08,600 Speaker 1: a nice credit score while you know, at the same 615 00:27:08,640 --> 00:27:11,400 Speaker 1: time you are going into debt, while you're maybe overspending. 616 00:27:11,600 --> 00:27:13,080 Speaker 1: You don't want to fall into the trap of of 617 00:27:13,200 --> 00:27:16,119 Speaker 1: not saving money for the sake of improving your credit score. Yeah, 618 00:27:16,240 --> 00:27:19,000 Speaker 1: and I think that's one thing, Matt, that sometimes people do. 619 00:27:19,119 --> 00:27:21,600 Speaker 1: They do close credit cards in order to prevent going 620 00:27:21,640 --> 00:27:23,160 Speaker 1: into more debt because they know that they just can't 621 00:27:23,200 --> 00:27:25,960 Speaker 1: handle credit cards. And I think that's okay, knowing full 622 00:27:25,960 --> 00:27:27,560 Speaker 1: well at the same time, that's going to have a 623 00:27:27,600 --> 00:27:30,280 Speaker 1: negative impact on your score, right, But that's a worthwhile 624 00:27:30,320 --> 00:27:32,560 Speaker 1: trade off to prevent yourself from going into more debt 625 00:27:32,760 --> 00:27:35,159 Speaker 1: to have a lower score. But what we're trying to 626 00:27:35,200 --> 00:27:38,000 Speaker 1: address is people closing their credit cards thinking that it's 627 00:27:38,000 --> 00:27:40,240 Speaker 1: actually gonna help their score, but it has the opposite impact. 628 00:27:40,440 --> 00:27:43,520 Speaker 1: So yes, in a perfect world, keeping those credit cards 629 00:27:43,600 --> 00:27:46,240 Speaker 1: active and continuing to use them in a responsible manner 630 00:27:46,280 --> 00:27:48,159 Speaker 1: that's the way to go. And you also want to 631 00:27:48,200 --> 00:27:51,760 Speaker 1: avoid maxing those credit cards out, even if you can 632 00:27:51,800 --> 00:27:53,760 Speaker 1: pay off that full balance at the end of the month. 633 00:27:54,240 --> 00:27:56,800 Speaker 1: Really you want to go not even close to maxing 634 00:27:56,800 --> 00:27:59,399 Speaker 1: them out. And that's because a huge part of your 635 00:27:59,440 --> 00:28:02,920 Speaker 1: credit score is also the utilization ratio, and the best 636 00:28:02,920 --> 00:28:06,000 Speaker 1: credit scores are gonna mean that you're using essentially less 637 00:28:06,000 --> 00:28:09,280 Speaker 1: than a third of your available credit, and using less 638 00:28:09,280 --> 00:28:11,080 Speaker 1: than ten percent of your available credit is going to 639 00:28:11,160 --> 00:28:13,600 Speaker 1: get you into the best score range. So, for example, 640 00:28:13,800 --> 00:28:15,920 Speaker 1: let's say you have a credit card with a five 641 00:28:15,920 --> 00:28:19,399 Speaker 1: thousand dollar limit. Spending up to fills a month on 642 00:28:19,440 --> 00:28:24,120 Speaker 1: that credit card is that's pretty good. Yeah, that's that's 643 00:28:24,119 --> 00:28:27,920 Speaker 1: in a healthy range. But spending five on that credit 644 00:28:27,960 --> 00:28:30,000 Speaker 1: card every month, that's even better. And that's gonna be 645 00:28:30,080 --> 00:28:32,960 Speaker 1: the best possible usage amount for you when you're looking 646 00:28:33,000 --> 00:28:35,240 Speaker 1: to boost your score. Yeah, or according to Fico, like 647 00:28:35,240 --> 00:28:36,919 Speaker 1: we talked about earlier in the episode, if you want 648 00:28:36,960 --> 00:28:40,200 Speaker 1: to get into those rarefied eight hundred plus waters, it 649 00:28:40,240 --> 00:28:42,240 Speaker 1: takes seven percent or less. You know, if you're trying 650 00:28:42,240 --> 00:28:45,000 Speaker 1: to hone in on a seven percent utilization rate every month, 651 00:28:45,000 --> 00:28:47,600 Speaker 1: though you're you're you're trying too hard, You're putting too 652 00:28:47,640 --> 00:28:51,240 Speaker 1: much effort into It's probably true. Another consideration, too, when 653 00:28:51,280 --> 00:28:53,040 Speaker 1: you're looking to boost your credit score is just to 654 00:28:53,320 --> 00:28:55,560 Speaker 1: remind yourself that it takes time. You need to be patient. 655 00:28:55,800 --> 00:28:58,320 Speaker 1: You know, it takes time for negative items to fall 656 00:28:58,360 --> 00:29:00,280 Speaker 1: off of your credit report. It takes time him to 657 00:29:00,280 --> 00:29:03,080 Speaker 1: build up a meaningful credit history of on time payments 658 00:29:03,080 --> 00:29:05,160 Speaker 1: as well. Some people on the internet that you know, 659 00:29:05,160 --> 00:29:07,280 Speaker 1: they pitched that they can get those items removed for 660 00:29:07,440 --> 00:29:09,760 Speaker 1: you for a fee. But don't fall prey to those 661 00:29:09,800 --> 00:29:14,640 Speaker 1: empty promises. Handling your debt well over time will cause 662 00:29:14,680 --> 00:29:17,320 Speaker 1: that score to rise. Please remember that it takes patience 663 00:29:17,360 --> 00:29:19,479 Speaker 1: because you're not going to see your credit score just 664 00:29:19,600 --> 00:29:22,040 Speaker 1: jolt and jump upwards in a matter of days. You know. 665 00:29:22,080 --> 00:29:25,040 Speaker 1: We had a listener question recently, Matt, where where a 666 00:29:25,080 --> 00:29:28,440 Speaker 1: listener wanted to increase her credit score rapidly, and she 667 00:29:28,520 --> 00:29:30,680 Speaker 1: was asking about different ways to do that. And I 668 00:29:30,680 --> 00:29:32,720 Speaker 1: think it's easy to look for a quick fix when 669 00:29:32,960 --> 00:29:35,640 Speaker 1: you're like, man, I'm just months away from needing a 670 00:29:35,680 --> 00:29:37,120 Speaker 1: loan on a car or on a home. It's like, 671 00:29:37,160 --> 00:29:40,120 Speaker 1: I got thirty days, right, that's not enough time. It's 672 00:29:40,160 --> 00:29:42,240 Speaker 1: it's a it's a long play here, and it's worth 673 00:29:42,280 --> 00:29:44,280 Speaker 1: it to take the time to do this right. So 674 00:29:44,520 --> 00:29:46,280 Speaker 1: kind of back to the theme of the episode, Matt, 675 00:29:46,320 --> 00:29:48,600 Speaker 1: and we need a perfect credit score well, and how 676 00:29:48,680 --> 00:29:51,920 Speaker 1: much time overall should we give to focusing on our 677 00:29:51,960 --> 00:29:54,440 Speaker 1: credit score? Overall? I think it partly depends on what 678 00:29:54,560 --> 00:29:56,760 Speaker 1: shape your score is currently in. Right. If you're in 679 00:29:56,800 --> 00:29:59,600 Speaker 1: a rough spot with your score, we would suggest to 680 00:29:59,680 --> 00:30:02,600 Speaker 1: check out episode one of this podcast. We gave a 681 00:30:02,600 --> 00:30:04,360 Speaker 1: lot of thoughts on how to rebuild your score when 682 00:30:04,360 --> 00:30:06,640 Speaker 1: it's not looking so good. If you're in that position, 683 00:30:06,800 --> 00:30:09,080 Speaker 1: your credit score should be a larger focus for the 684 00:30:09,080 --> 00:30:12,320 Speaker 1: time being. It's similar to if you've taken years off 685 00:30:12,400 --> 00:30:14,920 Speaker 1: from physical activity, it's time to ramp things back up, 686 00:30:14,960 --> 00:30:17,320 Speaker 1: and so your credit score and building it up should 687 00:30:17,360 --> 00:30:20,080 Speaker 1: take a little more focus. If you've taken some time 688 00:30:20,080 --> 00:30:22,240 Speaker 1: off from even thinking about it and you've let it 689 00:30:22,280 --> 00:30:25,320 Speaker 1: fall into a state of disrepair, it's probably not gonna 690 00:30:25,320 --> 00:30:26,880 Speaker 1: feel natural for you to give it all that kind 691 00:30:26,880 --> 00:30:29,040 Speaker 1: of time and energy, But it's likely going to need 692 00:30:29,080 --> 00:30:32,120 Speaker 1: more time and energy then you've been giving it, right. Yeah, Yeah, 693 00:30:32,120 --> 00:30:34,040 Speaker 1: it's like you need one of those thirty day workout 694 00:30:34,320 --> 00:30:36,320 Speaker 1: regimens where you're working out every day for a whole month, 695 00:30:36,480 --> 00:30:39,360 Speaker 1: couched a five K exactly. You've got to get started, 696 00:30:39,560 --> 00:30:41,640 Speaker 1: and you need something a little more stringent to kind 697 00:30:41,640 --> 00:30:43,959 Speaker 1: of get you gone. Yep. And remember too that your 698 00:30:43,960 --> 00:30:46,680 Speaker 1: credit score it's only one part of having a well 699 00:30:46,840 --> 00:30:49,840 Speaker 1: constructed financial life, you know, while it has an impact 700 00:30:49,880 --> 00:30:52,880 Speaker 1: on so many things in our life, Obsessing over a 701 00:30:52,920 --> 00:30:57,600 Speaker 1: credit score and seeking perfection is a quixotic endeavor. Which 702 00:30:57,600 --> 00:30:59,600 Speaker 1: score do you want to even be perfect? You know, 703 00:30:59,600 --> 00:31:01,240 Speaker 1: like we met before, there are so many different scores 704 00:31:01,240 --> 00:31:03,920 Speaker 1: to consider. Uh, there's too many to keep track of. 705 00:31:04,160 --> 00:31:06,480 Speaker 1: And so like we recommended tracking one or maybe two 706 00:31:06,520 --> 00:31:09,640 Speaker 1: regularly via your credit card statement or via a site 707 00:31:09,680 --> 00:31:12,760 Speaker 1: like credit Karma is a great step to take trying 708 00:31:12,760 --> 00:31:15,360 Speaker 1: to keep your score in you know, above seven forty, 709 00:31:15,400 --> 00:31:18,719 Speaker 1: that is awesome, But if you're shooting for perfection with 710 00:31:18,760 --> 00:31:21,800 Speaker 1: your credit score, you'll likely spend way too much time 711 00:31:21,840 --> 00:31:24,200 Speaker 1: on something that really doesn't mean all that much, that's 712 00:31:24,240 --> 00:31:27,120 Speaker 1: not going to have a true impact on your finances. Yeah, 713 00:31:27,160 --> 00:31:29,520 Speaker 1: I feel like we near the beginning of the episode, 714 00:31:29,560 --> 00:31:31,960 Speaker 1: we said, this is how important your score is. It 715 00:31:32,040 --> 00:31:34,719 Speaker 1: influences so much of your financial life. But also at 716 00:31:34,720 --> 00:31:36,440 Speaker 1: the same time we're saying, don't spend too much time 717 00:31:36,480 --> 00:31:38,840 Speaker 1: on it. And yes, those things are both true. That 718 00:31:39,000 --> 00:31:40,720 Speaker 1: it is an important number, but it's something that you 719 00:31:40,760 --> 00:31:43,560 Speaker 1: shouldn't obsess over. And I know some of our listeners 720 00:31:43,560 --> 00:31:46,680 Speaker 1: who are excited about getting their personal finances together and 721 00:31:46,680 --> 00:31:48,400 Speaker 1: they're excited when they hear about their credit score and 722 00:31:48,400 --> 00:31:52,240 Speaker 1: it's something they can do to positively influence their financial life. Well, 723 00:31:52,280 --> 00:31:54,400 Speaker 1: then they want to go all in. Um And it's 724 00:31:54,400 --> 00:31:56,040 Speaker 1: great to be thinking about it, it's great to be 725 00:31:56,080 --> 00:31:58,320 Speaker 1: working on it, but going all in could mean going 726 00:31:58,400 --> 00:32:01,400 Speaker 1: too hard. After working towards is improving your score, and 727 00:32:01,600 --> 00:32:04,240 Speaker 1: there's a limit to the return you're gonna see as 728 00:32:04,280 --> 00:32:06,280 Speaker 1: you as you seek to improve it. Yeah that's right man, 729 00:32:06,600 --> 00:32:08,240 Speaker 1: Well awesome. Let's let's switch it back to the beer. 730 00:32:08,320 --> 00:32:11,280 Speaker 1: This episode, you and I are both enjoying a Nuclear 731 00:32:11,480 --> 00:32:13,680 Speaker 1: Sea Horse, which is a New England style pale ale. 732 00:32:14,120 --> 00:32:17,760 Speaker 1: This is by Boonshine Brewing Company, who is not surprisingly 733 00:32:17,880 --> 00:32:21,520 Speaker 1: based in Boone, North Carolina. There you go, yeah, uh yeah. 734 00:32:21,600 --> 00:32:23,360 Speaker 1: Just also, what were your thoughts on this beer, buddy? 735 00:32:23,560 --> 00:32:27,040 Speaker 1: So on the label it says caution radioactive hops, and 736 00:32:27,200 --> 00:32:30,360 Speaker 1: uh man, the hops were definitely alive. There was a 737 00:32:30,480 --> 00:32:33,400 Speaker 1: dankness to this beer that I really enjoyed. In particular, 738 00:32:33,440 --> 00:32:36,480 Speaker 1: pale ales can sometimes lack the hot presence or the 739 00:32:36,480 --> 00:32:39,120 Speaker 1: hot bite that this one had. So I was impressed 740 00:32:39,360 --> 00:32:41,160 Speaker 1: for a five and a half percent pale ale that 741 00:32:41,240 --> 00:32:42,840 Speaker 1: this one brought so much flavor. So yeah, I thought 742 00:32:42,880 --> 00:32:44,520 Speaker 1: this one was great. Yeah, man, I am a huge 743 00:32:44,560 --> 00:32:46,800 Speaker 1: fan of hoppy pale ales. You know, pale ales, they're 744 00:32:46,800 --> 00:32:48,600 Speaker 1: easy to drink, but they've got all that kind of 745 00:32:48,680 --> 00:32:52,280 Speaker 1: dank hop flavor. But on the label here is describing, 746 00:32:52,400 --> 00:32:53,680 Speaker 1: you know, how this beer is gonna taste, and it 747 00:32:53,720 --> 00:32:57,440 Speaker 1: said that it's radiant bold and electric, and dude, radiant 748 00:32:57,600 --> 00:33:00,000 Speaker 1: and electric are two words that I have never used 749 00:33:00,080 --> 00:33:02,640 Speaker 1: to describe an I p a or or a hoppy 750 00:33:02,640 --> 00:33:05,320 Speaker 1: paleo like that, but I feel like they are perfect words. 751 00:33:05,360 --> 00:33:07,160 Speaker 1: You know, you're talking about how like you feel like 752 00:33:07,200 --> 00:33:09,640 Speaker 1: you can taste the freshness of the hops? Uh they're 753 00:33:09,640 --> 00:33:12,560 Speaker 1: almost tingly a little bit electric is a great way 754 00:33:12,680 --> 00:33:14,520 Speaker 1: of of describing that as well. It makes me think 755 00:33:14,520 --> 00:33:15,840 Speaker 1: back to when when I was a little kid and 756 00:33:15,880 --> 00:33:18,240 Speaker 1: I would take a little nine bolt battery and stick 757 00:33:18,280 --> 00:33:21,320 Speaker 1: it to my tongue. It kind of lie you can, 758 00:33:21,560 --> 00:33:24,200 Speaker 1: it's a little tingly feels radiance on your tongue, it does, 759 00:33:24,480 --> 00:33:26,760 Speaker 1: That's what I hear, and I feel that that this 760 00:33:27,160 --> 00:33:29,200 Speaker 1: sort of what this beer does to a certain extent, 761 00:33:29,240 --> 00:33:32,560 Speaker 1: I would not recommend putting uh your mouth anywhere near 762 00:33:32,640 --> 00:33:36,200 Speaker 1: anything electric. Yeah, just put that disclaimer in there. But 763 00:33:36,240 --> 00:33:37,800 Speaker 1: those are the kind of things that I did as 764 00:33:37,800 --> 00:33:39,880 Speaker 1: a kid at least, and that should be a comfort 765 00:33:39,880 --> 00:33:42,000 Speaker 1: to our listeners that you can still end up as 766 00:33:42,040 --> 00:33:44,880 Speaker 1: a normal, reasonable human being even after doing crazy things 767 00:33:44,880 --> 00:33:48,240 Speaker 1: like that. Maybe sometimes I'm too reasonable, so hey, that true. 768 00:33:48,320 --> 00:33:50,560 Speaker 1: It just depends you know what kind of person you're 769 00:33:50,600 --> 00:33:52,800 Speaker 1: trying to be when you grow up. So but yeah, 770 00:33:52,800 --> 00:33:54,160 Speaker 1: I'm really glad that you and I got to enjoy 771 00:33:54,200 --> 00:33:56,040 Speaker 1: this beer on the show. A big things to Christopher. 772 00:33:56,080 --> 00:33:58,400 Speaker 1: He sent us two really good beers that we were 773 00:33:58,440 --> 00:34:01,040 Speaker 1: able to enjoy. So Christie, ever, thank you. Yeah, no 774 00:34:01,080 --> 00:34:02,840 Speaker 1: doubt this is a good one, all right, Matt. That's 775 00:34:02,880 --> 00:34:05,320 Speaker 1: gonna do it for this episode. For folks who want 776 00:34:05,320 --> 00:34:07,000 Speaker 1: show notes and some of the links to some of 777 00:34:07,000 --> 00:34:09,319 Speaker 1: the sites that we mentioned during today's episode, you can 778 00:34:09,360 --> 00:34:10,560 Speaker 1: go to our show notes and they'll be up on 779 00:34:10,560 --> 00:34:12,799 Speaker 1: our website at how to money dot com. Yeah, and 780 00:34:12,840 --> 00:34:14,920 Speaker 1: if you enjoy the show, if you enjoy How the Money, 781 00:34:15,280 --> 00:34:17,440 Speaker 1: we would be incredibly grateful to you if you went 782 00:34:17,440 --> 00:34:20,560 Speaker 1: over to Apple Podcasts and left us a solid rating 783 00:34:20,719 --> 00:34:23,520 Speaker 1: and review over there. But you know what, even easier 784 00:34:23,520 --> 00:34:25,120 Speaker 1: if you don't want to maybe go through the housle 785 00:34:25,160 --> 00:34:27,360 Speaker 1: of doing that, make sure that you are subscribed to 786 00:34:27,360 --> 00:34:29,440 Speaker 1: the show. Match that subscribe button to make sure that 787 00:34:29,480 --> 00:34:32,440 Speaker 1: you don't miss any new episodes as they are released. So, Joel, 788 00:34:32,480 --> 00:34:35,040 Speaker 1: that's gonna be it for this episode, Buddy. Until next time, 789 00:34:35,239 --> 00:34:37,200 Speaker 1: Best Friends Out, Best Friends Out,