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Speaker 1: Welcome to Out of Money. I'm Joel and I am Matt,

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Speaker 1: and today we're discussing the high cost of crappy credit.

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Speaker 1: That's right, buddy. We are going to talk about all

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Speaker 1: of the different ways.

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Speaker 2: That crappy credit is going to cost you if you've

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Speaker 2: got that crappy credit. But obviously we're gonna get to that.

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Speaker 2: But more important than ever is the fact that we're back.

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Speaker 1: Baby.

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Speaker 2: It's back to regularly scheduled programming here. You're back from Florida.

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Speaker 2: You are, to the chagrin of everyone out there, you are.

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Speaker 2: You're not a Florida man any longer.

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Speaker 1: I came close to almost morphed into one. And I

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Speaker 1: was out there for like a three weeks of the summer.

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Speaker 1: My family's out for five hours, kind of back and forth.

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Speaker 1: Cut crazy. Tell you this, Florida has some cool stuff,

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Speaker 1: but it is ragingly hot and like no wonder.

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Speaker 2: Florida man is a thing, right that it's a mean

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Speaker 2: that it exists because you kind of lose your mind

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Speaker 2: while you're down there, because.

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Speaker 1: Your brain does it really Yeah, you feel like it

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Speaker 1: kind of addled your brains a little bit. And I'm

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Speaker 1: trying to get adjusted back to normal life. Like they

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Speaker 1: call it Atlanta Hotlanta, but no, no, Florida is a different

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Speaker 1: kind of heat. And yeah, it's that wet heat. Glad

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Speaker 1: to be back.

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Speaker 2: Well, okay, so while while you were down in Florida,

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Speaker 2: so one of the Kate and I we used some

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Speaker 2: of some of our time off to go up to Ashville. Right.

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Speaker 2: We drooler Spot, Oh my gosh, and honestly, even still

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Speaker 2: it was pretty It's just been so freaking hot lately. Yeah,

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Speaker 2: no matter where it is that you live. But enough

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Speaker 2: about the weather. We're gonna go up there. We had

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Speaker 2: some nice dinners plan of course, we're going to hit

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Speaker 2: up some breweries, but we were also planning to do

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Speaker 2: some hiking. And oh, by the way, we scored a

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Speaker 2: last minute airbnb because like, it didn't matter for us

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Speaker 2: to go up there. We're just thinking, oh, it'd be

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Speaker 2: nice if we do this. It wasn't like a do

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Speaker 2: or die situation, and we were able to. We got

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Speaker 2: a screaming deal on an Airbnb. We hadn't done something

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Speaker 2: like that absolutely last minute. Even yes, it's like either

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Speaker 2: on a book really far in advance or like the

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Speaker 2: absolute last minute. We jumped on the very last minute

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Speaker 2: thing got an awesome deal. We're right there in the

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Speaker 2: middle of downtown, which we've we've never done, but back

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Speaker 2: to ashle like, so we're planning to get to go hiking,

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Speaker 2: and we were we woke up and getting our stuff

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Speaker 2: ready to go, and I realized I didn't bring my

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Speaker 2: sneak in hiking shoes, my trail runners. I was like,

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Speaker 2: dang it, I can't believe I forgot to pack those things.

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Speaker 2: So hopped in the in the van and we went

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Speaker 2: to an RII because I felt compelled, I was like,

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Speaker 2: I gotta get another I gotta get a pair of

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Speaker 2: shoes in order to do some of this intense hiking

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Speaker 2: that we're planning to do. So I bought another pair

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Speaker 2: of hiking shoes. They're like a pair of running like

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Speaker 2: trail runners basically. So I want to ask you what

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Speaker 2: would Joel have done in that situation, Because on one hand,

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Speaker 2: I thought, of course I need to do this, But

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Speaker 2: on the other hand, I was like, who am I this.

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Speaker 2: I don't just like go into a store without doing

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Speaker 2: any research and just buy something.

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Speaker 1: Well, you know, I bet you. I'm guaranteed you bought

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Speaker 1: the same shoes you have, just different color or something

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Speaker 1: like that, right.

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Speaker 2: So I actually got a different kind of a different

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Speaker 2: pair like hokah, you've seen the Hoka whatever. I don't

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Speaker 2: know how you even say, like, got the big old

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Speaker 2: because you're into the Altrias or whatever. Ultras, Yeah, on

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Speaker 2: multiple pairs of those. But I decided to kind of

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Speaker 2: go a different direction. But I think I hear what

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Speaker 2: you're getting at, which is the fact that.

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Speaker 1: If you knew you like them, and you're gonna yes, yeah,

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Speaker 1: they're expensive shoes. But and I will say this.

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Speaker 2: I wasn't being held hostage like at the trailhead where

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Speaker 2: they're like, here's five hundred, they don't have any shoes,

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Speaker 2: here's you gotta buy this pair for two hundred fifty bucks.

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Speaker 1: And it's it just stinks to drive all that way

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Speaker 1: and then to not get the hike or whatever. But

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Speaker 1: did you have another pair of shoes you could have

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Speaker 1: hiked in?

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Speaker 2: I had, I have my my white vans, could use

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Speaker 2: those I could have, But they're white and they're not made.

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Speaker 2: I mean, they're like street shoes. They're made like they're

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Speaker 2: my nicer kind of like I wore them the night

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Speaker 2: before when Kate and I went out to like a

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Speaker 2: nice dinner, and so I thought, Okay, if I just

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Speaker 2: buy another pair of trailer runners, I know at some

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Speaker 2: point I'm gonna like, after a couple hundred and more

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Speaker 2: miles my old trail runners, like, I'm gonna need to

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Speaker 2: buy another pair. So the way I thought about it

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Speaker 2: and justified it is I'm just pulling consumption from like

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Speaker 2: Ford and you know, into the present from the future.

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Speaker 1: Here, like expaining your shoe wardrobe.

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Speaker 2: Yes, yeah, if you think about it linearly, I will

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Speaker 2: get to these shoes at some point, I would have

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Speaker 2: gotten to this in this pair. And did you like them? Yeah,

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Speaker 2: they're actually I mean so I got the They're like

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Speaker 2: it's so huge, huge, and I was like, I want

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Speaker 2: to I see people wearing these are real popular. I

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Speaker 2: want to try them out. And I actually I really

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Speaker 2: dug them.

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Speaker 1: Dude.

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Speaker 2: It took a second to get used to all the.

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Speaker 1: Cush, but uh, I like the cush. I'm all about it.

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Speaker 1: So I've got a friend who I was just talking

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Speaker 1: to the other day and he's into the zero cush

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Speaker 1: like that. They literally have sandals called zero sandles, huh,

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Speaker 1: and he likes to trail run of those. So it's

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Speaker 1: a young man's game, right, everybody's got their thing. So,

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Speaker 1: I mean I was able to get him on salety,

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Speaker 1: that's the other thing. But I'm more willing to spend

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Speaker 1: money on like the proper gear because like younger Matt

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Speaker 1: would have said, I'm just gonna I'm gonna stick it out.

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Speaker 1: I'm gonna wear the shoes that I've got and I'll

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Speaker 1: clean them afterwards. But I thought, you know what, let

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Speaker 1: me just go ahead and get these things. I'll wear

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Speaker 1: them to wear literally wear them into the ground like

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Speaker 1: at some point. But well, I was curious if you

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Speaker 1: would have done the same thing or not, or what

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Speaker 1: path you would have taken. No, I might have done

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Speaker 1: the same thing. Yeah, yeah, I mean, especially if it's

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Speaker 1: if it's something like you're there, it's a free activity

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Speaker 1: to go hiking. Yeah, that's the best thing to do

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Speaker 1: in Ashville, one of the best things besides drink good beer.

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Speaker 1: And so you don't want to miss the same time. Yeah, yeah,

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Speaker 1: but I'm glad we're back together Glaver recording today, I

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Speaker 1: do know, and glad we get to talk about credit

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Speaker 1: a regular Wednesday episode here. Yeah, so let's mention the

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Speaker 1: beer we're having on this episode, though it's called rattler.

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Speaker 1: It's by Halfway Crooks. It's a grapefruit rattler in particular,

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Speaker 1: one of our favorite beer styles, especially during these hot

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Speaker 1: summer days. This is like the perfect thirst quenching beer,

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Speaker 1: and it really does because it's half grapefruit juice. It

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Speaker 1: really does have thirst quenching qualities. We'll talk about this

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Speaker 1: one at the end of the episode.

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Speaker 2: Is it fifty to fifty? Who knows? We will explain share.

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Speaker 1: Our thoughts at the end of the episode, but first

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Speaker 1: let's talk about the high cost of crappy credit and

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Speaker 1: that it made me think about, like when electricity goes

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Speaker 1: out at your house, it sucks, right, all of us

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Speaker 1: we've become so accustomed to just being able to flip

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Speaker 1: a switch, and but how quickly we become annoyed when

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Speaker 1: that modern convenience that we're all accustomed to goes away

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Speaker 1: and like and so it's true that it can be

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Speaker 1: kind of frustrating if you're if your electricity goes out.

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Speaker 1: Let's say it's out for twenty or thirty minutes, so

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Speaker 1: it's not it's like no harm, no foul. It's kind

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Speaker 1: of fun even for a second. We get to get

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Speaker 1: get out your battery powered flashlights or your candles or

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Speaker 1: something like that. But like and make it romantic exactly. Yeah,

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Speaker 1: you can kind of make it make it fun. But

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Speaker 1: an extended outage would be different, right, It would quickly

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Speaker 1: turn from something like a minor inconvenience to something more major.

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Speaker 1: Let's say your your fridge or your freezer now doesn't

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Speaker 1: have electricity for an extended period of time. Your food

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Speaker 1: could spoil. Could Let's say you've got one of your

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Speaker 1: fancy briskets in the freezer, like that could be. I know,

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Speaker 1: you don't want that to spoil. That's an expensive piece

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Speaker 1: of meat. And so yeah, if treacherous weather conditions led

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Speaker 1: to this outage, like people lose their ability to heat

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Speaker 1: and cool their homes, yeah, which can have massive consequences too, right,

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Speaker 1: and for the home itself and to the safety of

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Speaker 1: individuals and family. So I think bad credit can be so. Right,

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Speaker 1: it might seem like this, this minor blip. It might

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Speaker 1: seem like a oh man, it'll be back on in

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Speaker 1: twenty or thirty minutes, sort of electricity funk. But bad

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Speaker 1: credit is not a small chink in your personal finance armor.

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Speaker 1: It's much worse than that. It's akin to your electricity

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Speaker 1: being out for like an entire weekend or something like that.

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Speaker 2: Sure, yeah, yeah, And it's not just that bad credit

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Speaker 2: means that you've got a score that's not quite as

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Speaker 2: high as that you like, that you wish it would be.

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Speaker 2: It's not the score per se, like the number itself,

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Speaker 2: that you should be preoccupied with. It's the fact that

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Speaker 2: that simple score has an impact on virtually every aspect

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Speaker 2: of your personal finances, right Like, just like with the

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Speaker 2: power outage, it's not the quick inconvenience of not being

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Speaker 2: able to flip on a lamp. It's the wide ranging,

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Speaker 2: downstream effect of that power outage that is going to

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Speaker 2: have the most significant impact. And so a bad credit score,

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Speaker 2: it doesn't just result in minor consequences, as some out

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Speaker 2: there might lead you to believe. It's not causing a

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Speaker 2: few bucks to leak out here and there. Bad credit

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Speaker 2: is very expensive in a bunch of different ways that

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Speaker 2: were going to highlight today.

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Speaker 1: Yeah, tons, tons of ways that bad credit messes with you.

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Speaker 1: And so we've got a bunch of different things that

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Speaker 1: we've got to cover and specifically really hope hopefully to

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Speaker 1: drive home just how impactful in a negative way that

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Speaker 1: crappy credit can become. Let's give a quick example here,

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Speaker 1: Matt from the Outset friend of the show Andrew Giancola.

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Speaker 1: He highlighted recently how bad credit can influence how much

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Speaker 1: you lose when it comes to buying a home. This

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Speaker 1: example came with kind of some older statistics, so we

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Speaker 1: know these interest rates don't necessarily apply right now to

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Speaker 1: everyone and so like. But let's say you took out

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Speaker 1: a thirty year mortgage of three hundred grand and you

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Speaker 1: had a credit score of seven to sixty or higher.

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Speaker 1: Maybe you got qualified for a rate of four and

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Speaker 1: a half percent, but a credit score of six twenty,

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Speaker 1: let's say, might get your rate of seven percent. So

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Speaker 1: there's a big gap there, two and a half percent gap,

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Speaker 1: And over the thirty year period, having that higher interest

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Speaker 1: loan would cost you around one hundred and seventy one

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Speaker 1: thousand dollars more than what you would have gotten ahead

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Speaker 1: you had the four and a half percent loan, right,

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Speaker 1: And so that's a big chunk of change, right, But

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Speaker 1: it's more than that. It's more than that. It's it's

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Speaker 1: the monthly payments are going to be higher. Four hundred

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Speaker 1: and seventy five dollars to be exact, when you compare

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Speaker 1: those two loans. But even above and beyond that, Matt,

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Speaker 1: it's it's the opportunity costs that those extra dollars could

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Speaker 1: have done for you, the legwork that could have done,

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Speaker 1: all because you had a bad credit score. So let's

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Speaker 1: say four hundred and seventy five dollars a month, which

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Speaker 1: is the gap in payment, with a return of ten

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Speaker 1: percent over the course of thirty years, that would net

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Speaker 1: you nine hundred and seventy nine thousand dollars, so almost

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Speaker 1: a million dollars less in your net worth because when

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Speaker 1: you bought a home you had a bad credit score.

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Speaker 1: That that really drives home I think, at least partially

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Speaker 1: how expensive, Yeah, bad credit score can be.

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Speaker 2: Yeah, that's the difference between a credit score of seven

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Speaker 2: to sixty or higher, basically if you have excellent credit

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Speaker 2: versus not so great credit of six to twenty or below.

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Speaker 2: But so another reason that we're talking about this today

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Speaker 2: is because this is even more of a problem for

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Speaker 2: the younger generations out there. This probably shouldn't come as

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Speaker 2: a shock, but Gen X, millennials and Gen Z all

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Speaker 2: have significantly lower credit scores than boomers. And anyone older

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Speaker 2: than boomers okay boomer, yeah, like literally. According to data

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Speaker 2: from Fiico, the average credit score for gen Z is

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Speaker 2: six seventy nine. That's what it was I think in

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Speaker 2: twenty twenty one. That's what it was in twenty twenty two.

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Speaker 2: It's kind of flat lined. And while this is higher

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Speaker 2: than the six to twenty example that you just gave,

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Speaker 2: I still wouldn't want to be towards the bottom end

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Speaker 2: of what's just considered good enough. And so this raises

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Speaker 2: the question what is a bad credit score? Well, this

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Speaker 2: obviously goes on a scale, So you know, you could

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Speaker 2: be in the dumps where your score is what's it

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Speaker 2: called fives like deep prime or deep subprime I think

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Speaker 2: is the term, or it could just be mildly bad.

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Speaker 2: Credit score scales also vary between the different bureaus, but

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Speaker 2: of quote unquote very good FICO score is between seven

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Speaker 2: forty and seven ninety nine.

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Speaker 1: Yeah, and so it is important to note that basically

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Speaker 1: that seven forty for us is the line of demarcation one.

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Speaker 1: That's seven forty. Maybe some lenders might say seven to

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Speaker 1: sixty is kind of considered the you're in top tier range.

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Speaker 1: But if you're above seven forty, you're doing great. If

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Speaker 1: you're good, Shae. If you're below that, we want to

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Speaker 1: see improvement. If you're below six eighty, you're in that

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Speaker 1: range where you need to really make some strides because

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Speaker 1: it's going to cost you a lot.

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Speaker 2: You literally are paying more for everything because.

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Speaker 1: Of that rate. Exactly. Yeah. So, and it is important

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Speaker 1: to mention here too, Matt, that we're not looking for perfection.

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Speaker 2: Right.

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Speaker 1: There's on a lot most credit scoring models, they go

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Speaker 1: up to eight fifty. And so you might be like,

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Speaker 1: and I know some how to money listeners who are

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Speaker 1: just really into their finances, they want to get to

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Speaker 1: that apex, that that top of Mount Everest, to eight

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Speaker 1: fifty credit score. But it is possible, but it's also

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Speaker 1: not really worth pursuing. It's kind of a waste of

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Speaker 1: your time. Is it a reasonable goal? No, this really

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Speaker 1: should not be something that you're that you're focused on,

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Speaker 1: exactly yeah. And so experience they found that one point

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Speaker 1: two percent of all credit holders have this elusive eight

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Speaker 1: fifty perus, like literally the one percent the rare, rarefied

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Speaker 1: air right of credit scores. And but you and I

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Speaker 1: were nowhere near that. We're still way above seven forty,

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Speaker 1: which is great, but man, I have a cracked eight

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Speaker 1: hundred in a long time. I'm like fascinating in between that,

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Speaker 1: like seven eighty to eight hundred grand basically.

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Speaker 2: Okay, so of course we had a both, you know.

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Speaker 2: I'm sure you looked up your credit score again.

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Speaker 1: I did. I was shocked.

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Speaker 2: I was actually so literally not to brag my scores

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Speaker 2: eight twelve. Oh look at you, I know, And I

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Speaker 2: was actually kind of disappointed because I truly wanted it

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Speaker 2: to be kind of like in that seven ninety range,

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Speaker 2: which I feel like that's typically where I am, the

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Speaker 2: way I use my credit, the way I utilize my

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Speaker 2: credit for the things that actually do matter. And I

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Speaker 2: almost thought about not sharing it because I wanted to

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Speaker 2: be able to identify more with the common working man

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Speaker 2: and woman out there, because I don't want anyone to

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Speaker 2: think that this is something that I'm like really working on.

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Speaker 2: It truly does not matter. I would be perfectly happy,

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Speaker 2: Like you said, anything above seven to sixty's great territory.

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Speaker 1: We're going to give tips later on about exactly how

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Speaker 1: to get into the solid range that we want you

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Speaker 1: to be in and kind of how you can go

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Speaker 1: about that. But you're Yeah, you're sitting pretty over there

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Speaker 1: at eight twelve. You more pretty than I need to be. Yeah,

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Speaker 1: exactly likely?

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Speaker 2: What am I doing? Like spending all my extra time,

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Speaker 2: like poushing that thing?

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Speaker 1: Right, that's what it's seems the way lenders see you

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Speaker 1: and I would be the exact same, even though you're

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Speaker 1: twenty twenty five points higher than I am. R exactly,

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Speaker 1: and so yeah, basically, it's important to mention that we

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Speaker 1: just don't care about having a perfect credit score. It's

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Speaker 1: a worthless pursuit. But we're also going to speak out

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Speaker 1: of both sides of our mouse here to emphasize that

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Speaker 1: working to boost a bad credit score is a worthwhile goal.

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Speaker 3: Right.

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Speaker 1: We don't love the fact that so much of our

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Speaker 1: personal finances revolve around this singular number. And I guess

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Speaker 1: what I think. The fight Co score was instituted back

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Speaker 1: in nineteen eighty nine, so it's still a relatively modern phenomenon,

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Speaker 1: the credit score, But over those decades it's taken on

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Speaker 1: an increasingly important role in our financial lives, and so

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Speaker 1: I wish that weren't the case, but it is. And

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Speaker 1: it's important to point out that the credit bureaus sometimes

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Speaker 1: they have the wrong information. Some people would say a

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Speaker 1: quarter of the information on credit reports is wrong, which

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Speaker 1: is pathetic and messed up, and it harms a lot

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Speaker 1: of us. And yeah, sometimes they do a crappy job

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Speaker 1: of keeping our personal information secure. So I kind of

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Speaker 1: wish that the whole system was upended in some way,

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Speaker 1: form or fashion. But at the same time, pretending that

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Speaker 1: credit scores don't exist is going to end up harming

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Speaker 1: our finances as individuals, right, And so you can disparage

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Speaker 1: the credit score score, you can call it. And I

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Speaker 1: love debt score like some people do, but it's also

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Speaker 1: while it's frustrating, it's still an unfortunate necessity that we

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Speaker 1: need to take care of, yess right, And actually, well

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Speaker 1: you mentioned you mentioned I love debt score, which makes

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Speaker 1: me think of somebody else because while we're clarifying you

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Speaker 1: know some of these money principles and what it is

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Speaker 1: that we believe in, and we're also not absolutists when

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Speaker 1: it comes to borrowing money and taking out loans because like,

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Speaker 1: on one hand, yes, from a principal standpoint, anytime you

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Speaker 1: are increasing your debt load, anytime you take out a loan,

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Speaker 1: you are paying interest. But an important question to ask

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Speaker 1: is what are the alternatives? So take mortgages for instance,

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Speaker 1: right like rates, they're comparable honestly to where they were

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Speaker 1: in their early two thousands, and relatively speaking, they are

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Speaker 1: much lower the further back you look. So if you

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Speaker 1: look back to the nineties, that the eighties rates, mortgage

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Speaker 1: rates were much much higher. And so instead of paying

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Speaker 1: off a fifteen or a thirty year mortgage as fast

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Speaker 1: as humanly possible, we think that investing that money into

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Speaker 1: the market that's historically returned over seven percent with inflation,

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Speaker 1: mind you.

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Speaker 2: That this is the best path forward. The vast majority

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Speaker 2: of homeowners have low mortgage rates. Nearly I saw that

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Speaker 2: nearly ninety two percent of folks have a rate that's

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Speaker 2: locked in under six percent, and sixty two percent of

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Speaker 2: homeowners are below four percent. So do we love the

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Speaker 2: fundamental principle of paying any interest to a lender, to

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Speaker 2: a bank. No, But the reality is that we don't

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Speaker 2: live in a bubble, right like, everything needs to be considered.

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Speaker 2: You can't make decisions based on principles alone. You got

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Speaker 2: to face the actual reality.

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Speaker 1: And the reality is in the modern age, we all

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Speaker 1: need a credit score, we all need a healthy credit score.

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Speaker 1: But we also all need debt at sometimes or one

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Speaker 1: time or right typically that is to finance the purchase

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Speaker 1: of a home, or is to pursue higher education, get

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Speaker 1: a degree or something like that. And that's not necessarily

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Speaker 1: a bad thing, but it's also something that needs to

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Speaker 1: be done in moderation. Yeah, yeah, we have to take

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Speaker 1: just a whole You gotta look at the entire picture.

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Speaker 2: Basically, you need to fully understand how it is that

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Speaker 2: the decisions you make with your money, how that's going

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Speaker 2: to impact your overall financial picture. But you also need

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Speaker 2: to fully understand the high cost of bad credit. You

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Speaker 2: need to know and understand the different ways that it's

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Speaker 2: going to impact you. And we're going to get into

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Speaker 2: some of those different ways right after the break.

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Speaker 1: All right, man. We mentioned one big example before the break.

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Speaker 1: We talked about how much just two and a half

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Speaker 1: percent increase in interest rate on a mortgage could cost you,

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Speaker 1: And the truth is it can be really expensive, especially

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Speaker 1: when you factor in that opportunity cost. We're gonna get

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Speaker 1: to actually a bunch of different ways people might not

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Speaker 1: be aware of at all, might not even be on

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Speaker 1: their radar, like, hey, yeah, I know my bad credit

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Speaker 1: scores costs me maybe over here, maybe a little bit

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Speaker 1: over here, but you might not realize the full extent.

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Speaker 1: Especially let's say you're saying, well, I don't plan on

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Speaker 1: owning your home, so ha ha, jokes on you. I

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Speaker 1: don't care. Well, there's still a lot even for renters

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Speaker 1: out there pay attention as well. Yeah, a lot of

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Speaker 1: ways it impacts them. Okay, So before we go, I

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Speaker 1: just thought of another example. We kind of you mentioned

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Speaker 1: the electricity example. How that can impact lots of different things.

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Speaker 1: Like we try to avoid like health examples because I

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Speaker 1: oftentimes they're overdone, but I can't get past. I was

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Speaker 1: thinking about how credit score, like a crappy credit score,

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Speaker 1: is like having too much stress in your life, because

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Speaker 1: just this one thing, too much stress, it can impact

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Speaker 1: how much you're able to sleep, which is going to

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Speaker 1: impact your physical health, which is then going to impact

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Speaker 1: your relationships. How is it you treat other people? Because

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Speaker 1: you've got so.

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Speaker 2: Much going on, it can have an impact maybe on

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Speaker 2: like the quality of work that you're doing. So again,

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Speaker 2: think about your credit score in this one small thing

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Speaker 2: that's going to affect just countless things that you probably

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Speaker 2: had no idea that there are all the again, all

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Speaker 2: of these sort of downstream effects that we do need

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Speaker 2: to pay attention to.

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Speaker 1: I'm sure some of our listeners know that how how

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Speaker 1: much anxiety can affect even the yeah, their physical health.

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Speaker 1: We know this in our family from personal experience and

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Speaker 1: just how it seemed like there were a lot of

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Speaker 1: physical issues going on with with Emily back in the

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Speaker 1: day and then well it turns out anxiety was at

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Speaker 1: the root of it. But it's hard to know that

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Speaker 1: in the moment, right, Yeah, and you just you think

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Speaker 1: it must be all these other things, but but no,

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Speaker 1: it's actually anxiety run them up. Yeah, I like how you.

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Speaker 2: Said that, because it's not that stress or anxiety, like

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Speaker 2: I think small amounts of that causes you to do things, right,

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Speaker 2: like it's what gets you up out of bed. But

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Speaker 2: when it's unhealthy, right, just like with your credit score,

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Speaker 2: when it's in an unhealthy place and things turn sour, like,

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Speaker 2: that's when it kind of has those negative downstream effects.

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Speaker 2: Because it's not necessarily that we're trying to eliminate all

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Speaker 2: stress from life.

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Speaker 1: Sure, it's just that having you don't want to be

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Speaker 1: like Peter and office space like you get zero words, right, Well,

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Speaker 1: it makes me. I think we did an episode back

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Speaker 1: in the day about using financial stress to your advantage.

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Speaker 2: How, Yeah, there's there's a way it rings a bell.

432
00:19:01,080 --> 00:19:03,080
Speaker 1: Yeah, where like little bits here and there, it can

433
00:19:03,080 --> 00:19:05,119
Speaker 1: actually be the pressure point that gets us to do

434
00:19:05,200 --> 00:19:07,000
Speaker 1: the thing that needs to be done. And if we're

435
00:19:07,000 --> 00:19:11,000
Speaker 1: feeling yeah, zero stress about it, then we're likely to

436
00:19:11,280 --> 00:19:13,040
Speaker 1: leave it undone. And so I think it is important

437
00:19:13,080 --> 00:19:15,560
Speaker 1: to feel some of that but go overboard with it,

438
00:19:15,680 --> 00:19:18,679
Speaker 1: and man, it can completely upset the apple car absolutely well.

439
00:19:18,760 --> 00:19:20,440
Speaker 2: Yeah, well look that one up linked to that one

440
00:19:20,480 --> 00:19:22,040
Speaker 2: in the show notes, because it's not that stress in

441
00:19:22,040 --> 00:19:23,960
Speaker 2: and of itself is the bad thing that you're trying

442
00:19:23,960 --> 00:19:27,240
Speaker 2: to eliminate. It's the other things. It's the negative consequences

443
00:19:27,400 --> 00:19:30,160
Speaker 2: that are occurring because of that overloads.

444
00:19:30,240 --> 00:19:33,480
Speaker 1: Yeah, exactly. All right, So let's keep talking about credit scores, Matt.

445
00:19:33,480 --> 00:19:34,760
Speaker 1: And the first thing is people got to know where

446
00:19:34,800 --> 00:19:36,359
Speaker 1: they stand, because if you don't know where you're standing,

447
00:19:36,560 --> 00:19:38,239
Speaker 1: you don't really know how you stack up and what

448
00:19:38,280 --> 00:19:41,359
Speaker 1: needs improve it. And so that means the first step

449
00:19:41,400 --> 00:19:43,840
Speaker 1: is to look up your credit score, and there are

450
00:19:44,160 --> 00:19:46,520
Speaker 1: fortunately now freeways to do that. That did not used

451
00:19:46,520 --> 00:19:50,120
Speaker 1: to be the case. I still remember when Washington Mutual existed,

452
00:19:50,320 --> 00:19:51,919
Speaker 1: that was my bank of choice for a while. They

453
00:19:51,920 --> 00:19:53,879
Speaker 1: had the best interest rates. But not only did they

454
00:19:53,880 --> 00:19:55,920
Speaker 1: have the best interest rates, they were the only bank

455
00:19:55,960 --> 00:19:57,919
Speaker 1: that I knew of that allowed you to peek at

456
00:19:57,960 --> 00:20:01,159
Speaker 1: your credit score every single month for free. And so, me,

457
00:20:01,320 --> 00:20:04,600
Speaker 1: being the curious money learned that I was in my

458
00:20:04,680 --> 00:20:08,000
Speaker 1: early twenties, I was stoked to have this bank letting

459
00:20:08,040 --> 00:20:11,040
Speaker 1: me see my credit score every month. But now everybody

460
00:20:11,040 --> 00:20:14,159
Speaker 1: does that. It's pretty much ubiquitous, right. You can go

461
00:20:14,520 --> 00:20:17,720
Speaker 1: whatever credit card you have, they probably offer you access

462
00:20:17,720 --> 00:20:19,880
Speaker 1: to your credit score for free. If not, if you're

463
00:20:19,920 --> 00:20:22,399
Speaker 1: with one of the random issuers that doesn't do this,

464
00:20:22,480 --> 00:20:25,000
Speaker 1: it doesn't have like a back end in their system

465
00:20:25,000 --> 00:20:26,399
Speaker 1: that allows you to kind of take a peek at

466
00:20:26,440 --> 00:20:29,239
Speaker 1: your score. Well. Credit Karma is a great site that

467
00:20:29,320 --> 00:20:31,880
Speaker 1: offers a lot of information, a lot of insight about

468
00:20:31,880 --> 00:20:34,479
Speaker 1: your credit score and your credit standing. We would say

469
00:20:34,520 --> 00:20:36,320
Speaker 1: sign up for an account there so you can not

470
00:20:36,440 --> 00:20:39,480
Speaker 1: only see what your score is currently, but also so

471
00:20:39,520 --> 00:20:40,959
Speaker 1: that you can see what you can do to improve.

472
00:20:41,000 --> 00:20:43,119
Speaker 1: I love in Credit Karma mat in the back end,

473
00:20:43,200 --> 00:20:45,720
Speaker 1: the score detail section is enlightening and it kind of

474
00:20:45,720 --> 00:20:48,760
Speaker 1: gives you a window into what's hurting you and what

475
00:20:48,840 --> 00:20:51,800
Speaker 1: you can improve, which is just really important if we're

476
00:20:51,840 --> 00:20:54,760
Speaker 1: talking about like ditching that crappy credit score and building

477
00:20:54,760 --> 00:20:57,679
Speaker 1: it up so that we can get better terms and

478
00:20:57,680 --> 00:20:59,159
Speaker 1: not get screwed over by the system.

479
00:20:59,240 --> 00:21:01,879
Speaker 2: Totally, yeah, and honestly, like there are more credit scores

480
00:21:01,880 --> 00:21:06,400
Speaker 2: out there, like actual systems and models than you might think.

481
00:21:07,200 --> 00:21:09,560
Speaker 2: So first off, there are the three major credit bureors

482
00:21:09,600 --> 00:21:12,440
Speaker 2: who keep a file on you, but FIKO and Vantage

483
00:21:12,520 --> 00:21:15,160
Speaker 2: three point zero they are the most popular to credit

484
00:21:15,240 --> 00:21:18,679
Speaker 2: score numbers that you'll actually see floating out there. But

485
00:21:18,680 --> 00:21:21,440
Speaker 2: those bureaus they might actually have dozens of different scores

486
00:21:21,440 --> 00:21:24,680
Speaker 2: that they use for different reasons. And we just want

487
00:21:24,680 --> 00:21:26,480
Speaker 2: to mention that so that you know that that exists.

488
00:21:26,520 --> 00:21:28,280
Speaker 2: You don't necessarily need to know all the details or

489
00:21:28,320 --> 00:21:30,520
Speaker 2: even how the sausage is made, but the scores that

490
00:21:30,560 --> 00:21:33,840
Speaker 2: you get from credit Karma or from your credit card company,

491
00:21:34,200 --> 00:21:36,879
Speaker 2: they're going to shed enough light on the situation. You know,

492
00:21:37,080 --> 00:21:39,800
Speaker 2: you might not have access to the same exact score

493
00:21:39,840 --> 00:21:41,720
Speaker 2: that lenders do, but we do think that the free

494
00:21:41,760 --> 00:21:45,280
Speaker 2: scores are you know, good enough. I do wish that

495
00:21:45,320 --> 00:21:48,119
Speaker 2: the credit scored models were a little less muddled, that

496
00:21:48,160 --> 00:21:50,919
Speaker 2: they were a little less confusing. But this is an

497
00:21:50,960 --> 00:21:54,679
Speaker 2: instance where having all the details and knowing exactly what

498
00:21:54,720 --> 00:21:56,720
Speaker 2: it is that you should be going after it's not

499
00:21:56,760 --> 00:22:00,800
Speaker 2: necessarily going to further you along towards the goal of

500
00:22:01,160 --> 00:22:03,439
Speaker 2: financial freedom, right, Like it could get you closer to

501
00:22:03,480 --> 00:22:05,879
Speaker 2: having the perfect credit score, but again that should not

502
00:22:05,960 --> 00:22:07,680
Speaker 2: be the goal. It's the way, just like with a

503
00:22:07,720 --> 00:22:10,960
Speaker 2: stress or the electricity, it's not that well, yeah we

504
00:22:10,960 --> 00:22:13,280
Speaker 2: should have electricity. Well no, it's about what the electricity

505
00:22:13,280 --> 00:22:14,920
Speaker 2: can do for you. It's about what having less stress

506
00:22:14,960 --> 00:22:17,600
Speaker 2: in your life, the downstream impacts of that. Yeah, I

507
00:22:17,600 --> 00:22:20,480
Speaker 2: think you could obsess about this way too much. And

508
00:22:21,320 --> 00:22:24,480
Speaker 2: again it's one of these opaque systems, and I wish

509
00:22:24,520 --> 00:22:26,439
Speaker 2: there was more insight, and I wish there was like

510
00:22:26,520 --> 00:22:29,520
Speaker 2: even federal law probably that required the credit bureaus to

511
00:22:29,520 --> 00:22:32,480
Speaker 2: share more information about how they compile our scores and

512
00:22:32,520 --> 00:22:33,720
Speaker 2: what our scores are for free.

513
00:22:33,760 --> 00:22:39,400
Speaker 1: We have federal required access to our credit reports every

514
00:22:39,400 --> 00:22:41,440
Speaker 1: single year, and in fact they're available every single week

515
00:22:41,440 --> 00:22:43,720
Speaker 1: for free right now at annual credit report dot com.

516
00:22:43,800 --> 00:22:45,480
Speaker 1: If you want to get your credit report, that is

517
00:22:45,520 --> 00:22:47,840
Speaker 1: the best place to go to check up and see

518
00:22:47,880 --> 00:22:49,439
Speaker 1: kind of like, well, what is thinging me on my

519
00:22:49,480 --> 00:22:51,840
Speaker 1: credit You're going to want to go there. That's Annual

520
00:22:51,920 --> 00:22:53,520
Speaker 1: Credit Report dot Com. So we'll link to that in

521
00:22:53,520 --> 00:22:53,800
Speaker 1: the show.

522
00:22:54,000 --> 00:22:55,800
Speaker 2: It's been a minute since we've mentioned that, but that

523
00:22:55,920 --> 00:22:58,800
Speaker 2: was something that they switched to doing free weekly during

524
00:22:58,800 --> 00:23:01,159
Speaker 2: the pandemic a pandemic and we're way past that, so

525
00:23:01,160 --> 00:23:03,800
Speaker 2: I'm actually I wouldn't be surprised if that goes away. Yeah,

526
00:23:03,920 --> 00:23:04,320
Speaker 2: sometimes this.

527
00:23:04,359 --> 00:23:06,040
Speaker 1: Year, take advantage of it now so you can kind

528
00:23:06,080 --> 00:23:08,040
Speaker 1: of get the behind the scenes look at what's happening

529
00:23:08,040 --> 00:23:10,960
Speaker 1: on your credit report. What's on there directly impacts your

530
00:23:10,960 --> 00:23:13,840
Speaker 1: credit score, right, But okay, where is it going to

531
00:23:13,920 --> 00:23:16,320
Speaker 1: cost you? We said that crappy credit is going to

532
00:23:16,359 --> 00:23:18,520
Speaker 1: cost you the high cost of crappy credit, that's right,

533
00:23:18,600 --> 00:23:20,760
Speaker 1: what we're talking about. Let's outline the specific ways in

534
00:23:20,800 --> 00:23:22,639
Speaker 1: which is going to do that. And the first is

535
00:23:22,840 --> 00:23:26,679
Speaker 1: higher interest rates on basically everything. And you might say, no, duh,

536
00:23:26,760 --> 00:23:29,640
Speaker 1: I get it, and this is I would say, common knowledge,

537
00:23:29,800 --> 00:23:31,879
Speaker 1: but just how much it can cost you isn't terribly

538
00:23:31,920 --> 00:23:34,120
Speaker 1: well understood. And it's not just the home loan where

539
00:23:34,160 --> 00:23:36,120
Speaker 1: you might add a few points of interest costing you

540
00:23:36,240 --> 00:23:38,840
Speaker 1: tens of thousands of dollars or more, like we discussed earlier,

541
00:23:39,080 --> 00:23:40,639
Speaker 1: over the life of your loan. Even though I think

542
00:23:40,680 --> 00:23:42,360
Speaker 1: I said that was a three hundred thousand dollars loan,

543
00:23:42,560 --> 00:23:44,840
Speaker 1: which really a lot of people taking out much higher

544
00:23:44,840 --> 00:23:48,919
Speaker 1: loans than that. This could be catastrophic if you for

545
00:23:49,040 --> 00:23:52,080
Speaker 1: over the course of ten, fifteen, twenty thirty years, if

546
00:23:52,119 --> 00:23:55,320
Speaker 1: you have a higher interest rate on that mortgage. But

547
00:23:55,440 --> 00:23:57,119
Speaker 1: in addition to that, right, if you don't pay cash

548
00:23:57,280 --> 00:24:00,480
Speaker 1: for a car and you get financing for that, the

549
00:24:00,600 --> 00:24:02,680
Speaker 1: rate on that loan is going to be sky high.

550
00:24:02,760 --> 00:24:05,760
Speaker 1: If your score sucks as well. We're talking credit card rates,

551
00:24:05,880 --> 00:24:08,800
Speaker 1: credit card level rates on a car loan. You're gonna

552
00:24:08,800 --> 00:24:12,720
Speaker 1: get financing in the low to mid twenties potentially if

553
00:24:12,720 --> 00:24:14,600
Speaker 1: you have got a bad credit score, and that is

554
00:24:14,640 --> 00:24:17,320
Speaker 1: going to impact not only your payment but the overall

555
00:24:17,359 --> 00:24:20,000
Speaker 1: amount that you pay for that car. Thousands and thousands

556
00:24:20,040 --> 00:24:22,480
Speaker 1: and thousands of dollars more you're going to pay for

557
00:24:22,560 --> 00:24:24,880
Speaker 1: that vehicle than if you'd had a good credit score

558
00:24:24,920 --> 00:24:25,400
Speaker 1: to begin with.

559
00:24:25,480 --> 00:24:27,399
Speaker 2: That's right, and so you kind of hinted at this

560
00:24:27,480 --> 00:24:30,080
Speaker 2: at the beginning. But the one example we gave before

561
00:24:30,080 --> 00:24:32,240
Speaker 2: the break had to do with the amount of money

562
00:24:32,280 --> 00:24:35,480
Speaker 2: that you're paying an interest on a mortgage. But if

563
00:24:35,600 --> 00:24:38,280
Speaker 2: you are a renter, this is going to really impact

564
00:24:38,320 --> 00:24:40,280
Speaker 2: you as well, because you could potentially not get the

565
00:24:40,320 --> 00:24:43,080
Speaker 2: home or the apartment that you're trying to rent because

566
00:24:43,119 --> 00:24:46,600
Speaker 2: your credit score is instrumental in a landlord's decision to

567
00:24:46,680 --> 00:24:48,480
Speaker 2: run a place to you or not. You're essentially in

568
00:24:48,520 --> 00:24:50,840
Speaker 2: competition with other potential renters and your credit score is

569
00:24:50,880 --> 00:24:53,600
Speaker 2: one of the major deciding factors. You might even find

570
00:24:53,640 --> 00:24:54,720
Speaker 2: that you're able to rent this.

571
00:24:54,720 --> 00:24:56,960
Speaker 1: Place with a bad credit score, but.

572
00:24:57,040 --> 00:25:00,359
Speaker 2: Only if you put down a larger security positive, something

573
00:25:00,359 --> 00:25:02,920
Speaker 2: I've done personally with with with Tennis before.

574
00:25:03,080 --> 00:25:04,800
Speaker 1: That's the only way the landlord can kind of it's

575
00:25:04,800 --> 00:25:06,359
Speaker 1: how it's how you cover their butndy.

576
00:25:06,400 --> 00:25:09,520
Speaker 2: Yeah, you are able to hedge some of that risk

577
00:25:09,600 --> 00:25:11,879
Speaker 2: by doing that, but this means more of your money

578
00:25:11,960 --> 00:25:14,560
Speaker 2: is tied up just because that three digit number is

579
00:25:14,600 --> 00:25:16,880
Speaker 2: not up to snuff. So it's important to mention that

580
00:25:16,920 --> 00:25:20,679
Speaker 2: renters aren't able to just skate by supporting a crappy

581
00:25:20,680 --> 00:25:23,480
Speaker 2: score without any consequences. You are impacted as well. It's

582
00:25:23,480 --> 00:25:25,399
Speaker 2: not just those out there shopping for mortgages.

583
00:25:25,440 --> 00:25:27,200
Speaker 1: Might you might not get the apartment at all. You

584
00:25:27,280 --> 00:25:29,080
Speaker 1: might be forced to come up with a much bigger,

585
00:25:29,280 --> 00:25:31,119
Speaker 1: you know, security deposit, and you might not have that

586
00:25:31,160 --> 00:25:33,640
Speaker 1: money on hand. There's a lot of downsides for renters

587
00:25:33,680 --> 00:25:36,040
Speaker 1: when it comes to low credit scores as well. So

588
00:25:36,080 --> 00:25:38,040
Speaker 1: I'm glad you mentioned that math. That's really important. But

589
00:25:38,119 --> 00:25:40,840
Speaker 1: let's talk about credit card APR. That's something else that's

590
00:25:40,840 --> 00:25:43,360
Speaker 1: going to happen. The the interest you're going to pay

591
00:25:43,680 --> 00:25:46,440
Speaker 1: on credit cards if you have poor credit. Like, we

592
00:25:46,680 --> 00:25:49,000
Speaker 1: hardly ever talk about this actually, because our approach to

593
00:25:49,080 --> 00:25:51,679
Speaker 1: using credit cards is we want people to pay off

594
00:25:51,720 --> 00:25:53,640
Speaker 1: the balance on time and in full every single month.

595
00:25:53,960 --> 00:25:56,800
Speaker 1: That is how you and I use and handle credit cards.

596
00:25:56,840 --> 00:25:58,879
Speaker 1: That's how we advise how to money listeners. It's like

597
00:25:58,920 --> 00:26:00,520
Speaker 1: credit cards are not the devil. They are a tool

598
00:26:00,760 --> 00:26:02,800
Speaker 1: that you can use and guess what, if you pay

599
00:26:02,800 --> 00:26:04,480
Speaker 1: them off on time and in full every month, it doesn't

600
00:26:04,480 --> 00:26:07,680
Speaker 1: even matter what the credit card APR is in the

601
00:26:07,760 --> 00:26:12,320
Speaker 1: terms and conditions that you signed. It's it's irrelevant, right basically, yeah,

602
00:26:12,359 --> 00:26:13,200
Speaker 1: because it doesn't matter.

603
00:26:13,280 --> 00:26:15,280
Speaker 2: But hardly ever talk about that or think about that

604
00:26:15,359 --> 00:26:18,320
Speaker 2: because like, in our minds, well, that's just a non negotiable,

605
00:26:18,400 --> 00:26:19,399
Speaker 2: like you just don't do that.

606
00:26:20,000 --> 00:26:23,200
Speaker 1: But that's not right, that's not what most folks do. Unfortunately,

607
00:26:23,200 --> 00:26:24,760
Speaker 1: when you look at the numbers, it's something like fifty

608
00:26:24,920 --> 00:26:26,520
Speaker 1: close to fifty percent or maybe a little more than

609
00:26:26,560 --> 00:26:28,440
Speaker 1: fifty percent of people don't pay off their balance on

610
00:26:28,480 --> 00:26:30,600
Speaker 1: time and in full every single month. And so when

611
00:26:30,640 --> 00:26:33,679
Speaker 1: they care fifty two percent, yea of like slightly the majority.

612
00:26:33,720 --> 00:26:35,400
Speaker 1: It makes me shutter to think that there's that many

613
00:26:35,400 --> 00:26:38,240
Speaker 1: people who who don't pay off that balance on time

614
00:26:38,280 --> 00:26:40,600
Speaker 1: and full because of how damaging that can be to

615
00:26:40,640 --> 00:26:43,280
Speaker 1: their finances. And there's a reason that the banks continue

616
00:26:43,280 --> 00:26:45,040
Speaker 1: to offer points and cash back and all the other

617
00:26:45,080 --> 00:26:46,640
Speaker 1: perks that you and I that we like to take

618
00:26:46,640 --> 00:26:48,000
Speaker 1: advantage of, and that a lot of how to money

619
00:26:48,040 --> 00:26:50,240
Speaker 1: listeners like to take advantage of. And that's because the

620
00:26:50,280 --> 00:26:53,159
Speaker 1: banks are still making money, and they're making money, specifically

621
00:26:53,160 --> 00:26:56,000
Speaker 1: on the backs of the people charging them exorbitant interest rates.

622
00:26:56,040 --> 00:26:58,920
Speaker 1: And that's happening when they don't pay their balance off

623
00:26:59,080 --> 00:27:01,040
Speaker 1: on time and in full. And so if you're applying

624
00:27:01,080 --> 00:27:04,280
Speaker 1: for a credit card, you might be denied completely or

625
00:27:04,480 --> 00:27:06,760
Speaker 1: they just might say, hey, listen, your your rate's gonna

626
00:27:06,760 --> 00:27:08,280
Speaker 1: be a little bit higher because you're a bigger risk

627
00:27:08,280 --> 00:27:11,560
Speaker 1: to us. And again, if you're handling credit cards the

628
00:27:11,600 --> 00:27:13,480
Speaker 1: way Matt and I talk about, not that big of

629
00:27:13,480 --> 00:27:15,480
Speaker 1: a deal. But if you're not, and you're forced to

630
00:27:16,480 --> 00:27:18,520
Speaker 1: put money and put money on and charge up those

631
00:27:18,560 --> 00:27:20,480
Speaker 1: credit cards, it is a big deal. Yeah, it is

632
00:27:20,480 --> 00:27:21,040
Speaker 1: a big for you.

633
00:27:21,160 --> 00:27:24,320
Speaker 2: Yeah. I mean the difference between someone who's got crapit credit,

634
00:27:24,400 --> 00:27:27,000
Speaker 2: like it's somewhere like eight to ten percent difference between

635
00:27:27,000 --> 00:27:30,080
Speaker 2: somebody who is carrying a balance that has poor credit

636
00:27:30,200 --> 00:27:33,040
Speaker 2: versus somebody who is that has an excellent credit.

637
00:27:32,880 --> 00:27:34,600
Speaker 1: Score, And you might not be eligible for some of

638
00:27:34,680 --> 00:27:37,520
Speaker 1: those balanced transfer opportunities which will help you pay off

639
00:27:37,520 --> 00:27:39,800
Speaker 1: that credit card debt more quickly and pay less an

640
00:27:39,800 --> 00:27:42,680
Speaker 1: interest as well. So it's it's important when we're talking

641
00:27:42,680 --> 00:27:44,400
Speaker 1: about the credit card side of things.

642
00:27:44,520 --> 00:27:47,080
Speaker 2: Yeah. Well, and not only like the transfer cards, but

643
00:27:47,160 --> 00:27:48,720
Speaker 2: just some of the cards that offer the best benefits,

644
00:27:48,720 --> 00:27:51,240
Speaker 2: because you may not have access to those either. You

645
00:27:51,240 --> 00:27:52,919
Speaker 2: won't even be able to get the best credit card

646
00:27:52,960 --> 00:27:55,159
Speaker 2: offers out there because your score is in the dumps.

647
00:27:55,200 --> 00:27:57,720
Speaker 2: To get the cards that come with the best rewards,

648
00:27:57,720 --> 00:28:00,840
Speaker 2: You're gonna need a solid or even just a very

649
00:28:00,840 --> 00:28:03,920
Speaker 2: good excellent credit score, you're gonna be stuck with far

650
00:28:04,160 --> 00:28:06,800
Speaker 2: less rewarding pieces of plastic. If your score is pathetic

651
00:28:06,960 --> 00:28:10,400
Speaker 2: or honestly, you might even be turned down for credit altogether.

652
00:28:10,520 --> 00:28:12,440
Speaker 2: You won't have access to that card. But if you're

653
00:28:12,440 --> 00:28:14,800
Speaker 2: looking to up your credit card game and some of

654
00:28:14,800 --> 00:28:17,359
Speaker 2: the different rewards and benefits that you're able to score

655
00:28:17,520 --> 00:28:20,760
Speaker 2: from these credit cards and what it is that they're offering,

656
00:28:20,840 --> 00:28:22,360
Speaker 2: you got to turn that credit score around.

657
00:28:22,440 --> 00:28:24,320
Speaker 1: Yeah, Matt, when we talk about some of our favorite

658
00:28:24,440 --> 00:28:27,240
Speaker 1: credit cards on the show, and we've got an article

659
00:28:27,280 --> 00:28:29,040
Speaker 1: about it on the website or whatever, But like when

660
00:28:29,040 --> 00:28:32,280
Speaker 1: we mentioned some of those, many of those, most of

661
00:28:32,320 --> 00:28:35,119
Speaker 1: the great ones are only available to people with great

662
00:28:35,119 --> 00:28:38,360
Speaker 1: credit scores. Okay, how else is that crappy credit score

663
00:28:38,560 --> 00:28:41,080
Speaker 1: going to cost you? Well, it's gonna lead to higher

664
00:28:41,080 --> 00:28:43,760
Speaker 1: insurance rates. This is one more place you're going to

665
00:28:43,800 --> 00:28:46,440
Speaker 1: feel the negative effects of a rough credit score. And

666
00:28:46,800 --> 00:28:49,280
Speaker 1: there are, yes, a handful of states, a very very

667
00:28:49,280 --> 00:28:52,280
Speaker 1: small amount of states that don't let insurance companies factor

668
00:28:52,320 --> 00:28:55,720
Speaker 1: in your credit score to determine rates. California is the

669
00:28:55,720 --> 00:28:58,239
Speaker 1: biggest state. I believe Massachusetts is another one. There might

670
00:28:58,280 --> 00:29:00,120
Speaker 1: be one more, but I think there's only three state

671
00:29:00,200 --> 00:29:03,000
Speaker 1: that really take that approach, but in most states, in

672
00:29:03,120 --> 00:29:05,640
Speaker 1: all the others, your credit score is going to have

673
00:29:05,640 --> 00:29:08,240
Speaker 1: a direct impact on what you're being charged and the

674
00:29:08,320 --> 00:29:11,240
Speaker 1: quotes that you receive when you're shopping around. So depending

675
00:29:11,240 --> 00:29:13,800
Speaker 1: on which stats you trust, bad credit could cost you

676
00:29:13,840 --> 00:29:16,520
Speaker 1: between seventy five and one hundred and ten percent more.

677
00:29:16,800 --> 00:29:19,360
Speaker 1: On the insurance front, that's a lot more yikes. Yes,

678
00:29:19,680 --> 00:29:21,760
Speaker 1: So instead of like, you know, a thousand bucks a

679
00:29:21,800 --> 00:29:24,200
Speaker 1: year to ensure that car, you're forking over two thousand

680
00:29:24,240 --> 00:29:27,560
Speaker 1: dollars a year, and which is a significant jump. That's

681
00:29:27,560 --> 00:29:30,120
Speaker 1: so much more money. In bank Rate found that homeowners

682
00:29:30,160 --> 00:29:32,880
Speaker 1: insurance will cost on average sixty three percent more for

683
00:29:32,920 --> 00:29:35,440
Speaker 1: folks with bad credit as well. That's another big jump.

684
00:29:35,480 --> 00:29:37,360
Speaker 1: So we're talking about let's say you own a home

685
00:29:37,600 --> 00:29:40,520
Speaker 1: and a car and your credit goes from six seventy

686
00:29:40,640 --> 00:29:44,080
Speaker 1: to seven sixty. You're going to be saving, in our likelihood,

687
00:29:44,240 --> 00:29:47,280
Speaker 1: a few thousand dollars every single year just because you

688
00:29:47,360 --> 00:29:49,440
Speaker 1: tweaked your credit score. You bumped it up, and that

689
00:29:49,560 --> 00:29:52,680
Speaker 1: jump is going to be lead to significant savings.

690
00:29:52,240 --> 00:29:54,840
Speaker 2: Right, yeah, just on homeowners and auto insurance. But you

691
00:29:54,960 --> 00:29:58,200
Speaker 2: also might be denied a job. Most folks, they've got

692
00:29:58,240 --> 00:30:00,320
Speaker 2: no idea that an employer can pull your credit and

693
00:30:00,840 --> 00:30:03,600
Speaker 2: to not hire you in most states if you have

694
00:30:03,720 --> 00:30:06,680
Speaker 2: bad credit. Honestly, many employers won't do this, like they

695
00:30:06,680 --> 00:30:09,400
Speaker 2: don't actually care, and many won't even pull credit scores

696
00:30:09,440 --> 00:30:11,960
Speaker 2: at all, but some of them do, especially for more

697
00:30:12,000 --> 00:30:15,240
Speaker 2: senior positions. So you know, well, will you be denied

698
00:30:15,480 --> 00:30:17,640
Speaker 2: you a job because your score is six 't eighty,

699
00:30:17,720 --> 00:30:20,800
Speaker 2: Well probably not, but if you are closer to like

700
00:30:20,920 --> 00:30:24,240
Speaker 2: five hundred, well that I might raise some flags like, Wow,

701
00:30:24,280 --> 00:30:26,680
Speaker 2: this person, like what's going on? Like I feel like

702
00:30:26,720 --> 00:30:28,960
Speaker 2: a subject conversation is gonna be warranted because then you're, like,

703
00:30:29,160 --> 00:30:31,360
Speaker 2: you seem great in all the areas of your life.

704
00:30:31,400 --> 00:30:33,960
Speaker 1: Why is it that your credits so terrible? Because that

705
00:30:34,040 --> 00:30:37,920
Speaker 1: means that you probably didn't follow through on some really

706
00:30:37,920 --> 00:30:39,920
Speaker 1: important things when it come came to payments and stuff

707
00:30:39,920 --> 00:30:41,200
Speaker 1: like that. You might be able to explain it away

708
00:30:41,200 --> 00:30:43,280
Speaker 1: and still get the job. But you're right, Matt, is

709
00:30:43,280 --> 00:30:45,600
Speaker 1: probably gonna raise some big red flags, and yeah, cause

710
00:30:45,640 --> 00:30:47,840
Speaker 1: a conversation if not just now right to a denial

711
00:30:47,880 --> 00:30:51,080
Speaker 1: of getting that opportunity. Yeah, would suck to just.

712
00:30:51,080 --> 00:30:53,480
Speaker 2: Do so well on all the other fronts you interview, Well,

713
00:30:53,480 --> 00:30:55,680
Speaker 2: you've got a great resume, you got great references, but

714
00:30:55,840 --> 00:30:57,760
Speaker 2: in the end you're like, oh, yeah, I didn't get

715
00:30:57,760 --> 00:30:58,920
Speaker 2: that job because of my credit core.

716
00:30:59,000 --> 00:31:00,800
Speaker 1: And again that's like a by state thing. I think

717
00:31:00,840 --> 00:31:04,320
Speaker 1: there's ten or eleven states that don't allow for potential

718
00:31:04,360 --> 00:31:07,480
Speaker 1: employers to pull a credit score, but in a bunch

719
00:31:07,520 --> 00:31:10,080
Speaker 1: of other states this is fair game. And so yeah,

720
00:31:10,120 --> 00:31:12,760
Speaker 1: how widely is it used, how pervasive is it? Well,

721
00:31:12,800 --> 00:31:16,479
Speaker 1: I mean that depends on the specific company typically, but

722
00:31:17,240 --> 00:31:19,600
Speaker 1: it's worth noting that your credit score could impact your

723
00:31:19,600 --> 00:31:22,640
Speaker 1: career and something else. Matt like that the high cost

724
00:31:22,720 --> 00:31:25,480
Speaker 1: of crappy credit well, in all likelihood for a whole

725
00:31:25,520 --> 00:31:28,640
Speaker 1: lot of people, will lead to delayed retirement. And people

726
00:31:28,720 --> 00:31:30,200
Speaker 1: might say, well, how in the world is that, Like,

727
00:31:30,240 --> 00:31:31,680
Speaker 1: how am I not going to get to retire as

728
00:31:31,680 --> 00:31:34,760
Speaker 1: early because my credit sucks? Well, again, going back to

729
00:31:34,840 --> 00:31:36,720
Speaker 1: kind of the numbers and the opportunity cost and how

730
00:31:36,800 --> 00:31:39,360
Speaker 1: much extra you're going to be paying for higher interest

731
00:31:39,400 --> 00:31:41,600
Speaker 1: rates and stuff like that. If all that extra money

732
00:31:41,760 --> 00:31:45,600
Speaker 1: is going to higher rates and bigger insurance premiums, larger

733
00:31:45,640 --> 00:31:48,280
Speaker 1: security deposits, all that kind of stuff, you've got less

734
00:31:48,320 --> 00:31:51,160
Speaker 1: money to throw into those tax advantage retirement accounts, and

735
00:31:51,200 --> 00:31:54,040
Speaker 1: this will in all likelihood delay your ability to quit

736
00:31:54,080 --> 00:31:56,720
Speaker 1: working or like we talked about earlier, this month, you're

737
00:31:56,720 --> 00:31:59,920
Speaker 1: going to move along that financial independent spectrum more slowly.

738
00:32:00,280 --> 00:32:02,040
Speaker 1: And I don't know about you. I just kind of

739
00:32:02,240 --> 00:32:05,080
Speaker 1: hate being inefficient. I hate fees. I hate more money

740
00:32:05,280 --> 00:32:08,200
Speaker 1: leaking out of my account than needs needs to be

741
00:32:08,240 --> 00:32:09,880
Speaker 1: going out of my account. And this is one of

742
00:32:09,920 --> 00:32:12,800
Speaker 1: those things where bad credit, you're just gonna at every

743
00:32:12,800 --> 00:32:15,600
Speaker 1: turn everything is going to cost you more than it

744
00:32:15,640 --> 00:32:18,560
Speaker 1: would for somebody who has a better credit score. And

745
00:32:18,600 --> 00:32:21,600
Speaker 1: so it's a little de moralizing but it's also a

746
00:32:21,600 --> 00:32:23,920
Speaker 1: little self defeating at the same time. And so totally,

747
00:32:23,920 --> 00:32:25,440
Speaker 1: I think a lot of people are gonna find oh wait,

748
00:32:25,720 --> 00:32:27,440
Speaker 1: oh man, I'm paying extra for this, an extra for that,

749
00:32:27,520 --> 00:32:30,400
Speaker 1: and more for this, And because of that, across.

750
00:32:30,040 --> 00:32:31,680
Speaker 2: The board, it's costing you more money.

751
00:32:31,680 --> 00:32:33,640
Speaker 1: You got likes money into and dest less money to

752
00:32:33,680 --> 00:32:35,720
Speaker 1: sock away in the IRA and the foural one K

753
00:32:35,880 --> 00:32:38,959
Speaker 1: and yeah, that's gonna have an impact on your ability

754
00:32:39,000 --> 00:32:39,400
Speaker 1: to retire.

755
00:32:39,440 --> 00:32:41,720
Speaker 2: Totally. Yeah, we are all about you having options. It's

756
00:32:41,760 --> 00:32:43,640
Speaker 2: not that we want you to have that perfect credit score.

757
00:32:43,680 --> 00:32:45,520
Speaker 2: It's that we want you to have options, and we

758
00:32:45,560 --> 00:32:47,640
Speaker 2: want you to have the ability to live life on

759
00:32:47,680 --> 00:32:49,800
Speaker 2: your own terms, to make the decisions that you want

760
00:32:49,840 --> 00:32:51,560
Speaker 2: to in life, because those are things that you desire,

761
00:32:51,600 --> 00:32:55,160
Speaker 2: not because you have to, not because you've subjected yourself

762
00:32:55,160 --> 00:32:59,200
Speaker 2: to additional payments and you haven't eliminated the balance and

763
00:32:59,240 --> 00:33:02,600
Speaker 2: you're making it trust payments. And in order to pursue

764
00:33:02,600 --> 00:33:04,080
Speaker 2: the things that you want to pursue, you need to

765
00:33:04,120 --> 00:33:06,920
Speaker 2: have a degree of freedom, financial freedom, and you're only

766
00:33:06,960 --> 00:33:08,360
Speaker 2: going to be able to do that if you take

767
00:33:08,400 --> 00:33:10,560
Speaker 2: those extra dollars and instead of giving them to the

768
00:33:10,600 --> 00:33:12,560
Speaker 2: bank and the form of interest, you're able to take

769
00:33:12,600 --> 00:33:16,040
Speaker 2: that money and invest it for future you future you

770
00:33:16,080 --> 00:33:17,640
Speaker 2: will definitely appreciate that.

771
00:33:17,720 --> 00:33:20,600
Speaker 1: Yeah, yeah, I mean, rather have that money going to

772
00:33:20,600 --> 00:33:23,680
Speaker 1: you than to the bank's lending institutions. And again, just

773
00:33:23,720 --> 00:33:26,000
Speaker 1: because like we said that, the credit scoring model not

774
00:33:26,040 --> 00:33:28,040
Speaker 1: our favorite. We don't love that it exists in the

775
00:33:28,080 --> 00:33:29,640
Speaker 1: form and fashion that it does. We don't love how

776
00:33:29,680 --> 00:33:31,640
Speaker 1: opake then it is, and how difficult it is to

777
00:33:31,680 --> 00:33:34,000
Speaker 1: ascertain even what your credit score is or you know,

778
00:33:34,040 --> 00:33:36,760
Speaker 1: how many credit scores you have behind the scenes on you.

779
00:33:37,040 --> 00:33:39,480
Speaker 1: But still it's the game. It's important to play if

780
00:33:39,560 --> 00:33:42,360
Speaker 1: you want to be as efficient as optimized with your

781
00:33:42,400 --> 00:33:44,680
Speaker 1: finances as possible, and you don't want to delay big

782
00:33:44,720 --> 00:33:48,440
Speaker 1: milestones along the way along your the financial independence path

783
00:33:48,440 --> 00:33:50,800
Speaker 1: that you're trotting. But Matt, we've got more to get to.

784
00:33:50,960 --> 00:33:54,080
Speaker 1: Let's talk about in a second mitigating the downsides of

785
00:33:54,120 --> 00:33:56,640
Speaker 1: a bad credit score and then how you can actually

786
00:33:57,120 --> 00:33:59,800
Speaker 1: improve your score meaningfully. There's a lot of potential pit

787
00:34:00,160 --> 00:34:02,600
Speaker 1: some people need to avoid when they're doing that. We'll

788
00:34:02,600 --> 00:34:13,880
Speaker 1: discuss We'll get into that right after this. All right,

789
00:34:13,880 --> 00:34:14,520
Speaker 1: we are back.

790
00:34:14,320 --> 00:34:17,800
Speaker 2: And we're talking about the high cost of having crappy credit.

791
00:34:17,960 --> 00:34:20,279
Speaker 2: And you know what we're not gonna do here is

792
00:34:20,600 --> 00:34:23,320
Speaker 2: now talk through what makes up your FICO score.

793
00:34:23,480 --> 00:34:25,160
Speaker 1: Like basically, I think a lot of folks.

794
00:34:25,000 --> 00:34:26,960
Speaker 2: Have seen the pie chart, you know, like you can

795
00:34:27,000 --> 00:34:29,160
Speaker 2: google it what composed or like what makes up a

796
00:34:30,120 --> 00:34:33,080
Speaker 2: great credit score? And you can see the different percentages

797
00:34:33,200 --> 00:34:37,040
Speaker 2: right like on time payments, making sure you don't utilize

798
00:34:37,320 --> 00:34:38,839
Speaker 2: all of the credit that's available to you. I think

799
00:34:38,840 --> 00:34:41,719
Speaker 2: that's like sixty sixty five percent of what consists those

800
00:34:41,719 --> 00:34:44,640
Speaker 2: two factors commind yeah, yeah, what consists of of a

801
00:34:44,640 --> 00:34:47,000
Speaker 2: good credit score? But bottom line, I feel like like

802
00:34:47,080 --> 00:34:50,200
Speaker 2: the basics of having healthy credit and using a credit

803
00:34:50,239 --> 00:34:52,279
Speaker 2: card well can be summed up. And make sure you

804
00:34:52,320 --> 00:34:53,880
Speaker 2: got a credit card, right, So most folks out there

805
00:34:53,920 --> 00:34:55,680
Speaker 2: already have one, but if you don't get one, because

806
00:34:55,719 --> 00:34:58,640
Speaker 2: that's going to ensure a longer length of credit history.

807
00:34:58,680 --> 00:35:01,120
Speaker 2: It'll make sure that you get this ball. Use it

808
00:35:01,160 --> 00:35:03,279
Speaker 2: a little bit, don't over use it, right, so you

809
00:35:03,320 --> 00:35:06,400
Speaker 2: want to keep that utilization right low, but then make

810
00:35:06,440 --> 00:35:09,040
Speaker 2: sure you pay that stupid bill all time and in

811
00:35:09,160 --> 00:35:10,919
Speaker 2: full every single month. Like if you just do those

812
00:35:11,160 --> 00:35:13,719
Speaker 2: like follow those simple steps like that will ensure that

813
00:35:13,800 --> 00:35:17,319
Speaker 2: you are again getting the vast majority of the way

814
00:35:17,360 --> 00:35:19,480
Speaker 2: there without over complicating thinges.

815
00:35:19,560 --> 00:35:21,440
Speaker 1: Yeah, and if you are one of those people out

816
00:35:21,480 --> 00:35:23,279
Speaker 1: there listening and you're like, but my credit stinks, and

817
00:35:23,320 --> 00:35:24,799
Speaker 1: you just said I probably can't get some of those

818
00:35:24,840 --> 00:35:27,680
Speaker 1: credit cards that you say are great, Well, we'll actually

819
00:35:27,719 --> 00:35:29,359
Speaker 1: in just a few minutes to give our thoughts on

820
00:35:29,400 --> 00:35:31,960
Speaker 1: like where you should turn in order to get a

821
00:35:31,960 --> 00:35:34,640
Speaker 1: decent credit card or you know, just basically tools that

822
00:35:34,680 --> 00:35:37,480
Speaker 1: will help you build your credit apart from having to

823
00:35:37,480 --> 00:35:39,560
Speaker 1: get a credit card. We'll kind of talk about both,

824
00:35:39,560 --> 00:35:42,239
Speaker 1: but first let's talk about mitigating the downsides, because you know,

825
00:35:42,320 --> 00:35:44,480
Speaker 1: repairing your credit score, getting it up to stuff. It's

826
00:35:44,480 --> 00:35:46,920
Speaker 1: actually easier than a lot of people think, just because

827
00:35:46,920 --> 00:35:49,600
Speaker 1: the system is shrouded in mystery and it's hard to

828
00:35:49,600 --> 00:35:52,600
Speaker 1: know you're there's so many numbers swirling around out there.

829
00:35:52,640 --> 00:35:55,000
Speaker 1: When it comes to your credit score, well, it's easy

830
00:35:55,040 --> 00:35:57,920
Speaker 1: to think that it must take some professional right to

831
00:35:58,000 --> 00:36:00,560
Speaker 1: help you get your credit score back in shape if

832
00:36:00,560 --> 00:36:04,120
Speaker 1: you're in the five or six hundreds. No, not necessarily.

833
00:36:04,719 --> 00:36:06,359
Speaker 1: Just like it took a while though to get your

834
00:36:06,360 --> 00:36:08,640
Speaker 1: credit into disrepair, it's going to take a little while

835
00:36:08,640 --> 00:36:11,759
Speaker 1: to clean up. There is no easy button, although a

836
00:36:11,760 --> 00:36:13,839
Speaker 1: lot of people will actually try to make it sound

837
00:36:13,880 --> 00:36:16,200
Speaker 1: like there is, specifically people who work for different credit

838
00:36:16,239 --> 00:36:20,840
Speaker 1: repair companies. That is an industry which has attracted billions

839
00:36:20,840 --> 00:36:23,040
Speaker 1: of dollars from Americans every year that they spend on

840
00:36:23,080 --> 00:36:23,640
Speaker 1: credit repair.

841
00:36:23,760 --> 00:36:24,160
Speaker 2: Crazy.

842
00:36:24,239 --> 00:36:26,440
Speaker 1: It's crazy, and it's sad because a lot of that

843
00:36:26,520 --> 00:36:29,800
Speaker 1: money is poorly spent and a lot of those credit

844
00:36:29,840 --> 00:36:34,000
Speaker 1: repair firms are preying on people who have bad credit.

845
00:36:34,320 --> 00:36:37,160
Speaker 2: And yeah, the folks who are in the most vulnerable position. Yeah,

846
00:36:37,320 --> 00:36:39,359
Speaker 2: like I think I saw it. Like the estimates are

847
00:36:39,400 --> 00:36:43,160
Speaker 2: that that industry raked in something like over four billion dollars,

848
00:36:43,680 --> 00:36:46,520
Speaker 2: which is crazy, Like just think if all that money

849
00:36:46,560 --> 00:36:49,760
Speaker 2: and let's just say that that's an estimate that's off

850
00:36:49,960 --> 00:36:52,759
Speaker 2: by two billion. Imagine two billion dollars, which is still

851
00:36:52,760 --> 00:36:55,080
Speaker 2: a ton of money that was instead going to actual

852
00:36:55,160 --> 00:36:59,440
Speaker 2: balances rather than quick fixes, which is essentially what folks are.

853
00:37:00,320 --> 00:37:01,960
Speaker 1: Yeah, and well and a lot of those credit repair

854
00:37:01,960 --> 00:37:03,600
Speaker 1: firms and this is should be a blinking red light

855
00:37:03,840 --> 00:37:06,280
Speaker 1: that'll lasts for payment up front, and they'll say listen, yeah,

856
00:37:06,400 --> 00:37:09,719
Speaker 1: for four hundred dollars or nine hundred dollars, we can

857
00:37:09,760 --> 00:37:12,319
Speaker 1: start to work on fixing your credit score. And the

858
00:37:12,400 --> 00:37:14,440
Speaker 1: lost thing plain that they can get negative stuff removed

859
00:37:14,440 --> 00:37:17,200
Speaker 1: from your credit file, which is not true. And you know,

860
00:37:17,239 --> 00:37:19,799
Speaker 1: if there is inaccurate information on your credit report by

861
00:37:19,840 --> 00:37:21,280
Speaker 1: the way, which we said, you can get an annual

862
00:37:21,280 --> 00:37:24,400
Speaker 1: credit report dot com for free. You can dispute those

863
00:37:24,480 --> 00:37:27,239
Speaker 1: items yourself for free. You do not need to pay

864
00:37:27,280 --> 00:37:30,800
Speaker 1: anyone to do this on your behalf. And so yeah,

865
00:37:30,880 --> 00:37:32,719
Speaker 1: it's also important to mention Matt, you actually have more

866
00:37:32,719 --> 00:37:37,200
Speaker 1: power because debt collectors can ignore letters from companies, but

867
00:37:37,239 --> 00:37:40,200
Speaker 1: they can't ignore a letter written by you. According to

868
00:37:40,239 --> 00:37:42,000
Speaker 1: federal law. And so this is another thing where like

869
00:37:42,120 --> 00:37:44,319
Speaker 1: you have more power in your own hands than these

870
00:37:44,360 --> 00:37:47,360
Speaker 1: credit repair firms have or can wheeld on your behalf.

871
00:37:47,680 --> 00:37:49,560
Speaker 1: But let's kind of discuss some of those next steps

872
00:37:49,640 --> 00:37:53,040
Speaker 1: to mitigate the downsides of erect score and to improve

873
00:37:53,120 --> 00:37:55,680
Speaker 1: your score without getting scammed by one of these companies.

874
00:37:55,719 --> 00:37:57,000
Speaker 1: That sucks a big one.

875
00:37:57,080 --> 00:38:01,080
Speaker 3: Yeah, I mean yeah, basically you've got to see, yeah,

876
00:38:01,080 --> 00:38:02,840
Speaker 3: you're in the position where you have a bad credit score,

877
00:38:02,920 --> 00:38:05,080
Speaker 3: but you're trying to still figure out, like what is

878
00:38:05,120 --> 00:38:08,040
Speaker 3: it that you can do in order to pay the least.

879
00:38:07,840 --> 00:38:10,960
Speaker 2: Amount of money. Well, when you are looking for a loan,

880
00:38:11,080 --> 00:38:15,040
Speaker 2: shopping around really matters. It's not just your credit score

881
00:38:15,040 --> 00:38:17,960
Speaker 2: that determines the different loan terms out there. Where it

882
00:38:18,040 --> 00:38:20,640
Speaker 2: is you borrow from is going to have a huge impact.

883
00:38:20,840 --> 00:38:23,560
Speaker 2: Credit unions are the best place to go for borrowing

884
00:38:23,680 --> 00:38:26,319
Speaker 2: most of the time, and that's especially true if your

885
00:38:26,360 --> 00:38:29,439
Speaker 2: credit score isn't great. I know there are some folks

886
00:38:29,480 --> 00:38:31,840
Speaker 2: might write and be like, oh no, actually I was

887
00:38:31,880 --> 00:38:33,960
Speaker 2: able to get a better rate from a bank or

888
00:38:34,200 --> 00:38:36,960
Speaker 2: actually right straight from the dealership. Then there might be

889
00:38:37,000 --> 00:38:39,319
Speaker 2: some cases of that, but credit unions, because of the

890
00:38:39,320 --> 00:38:41,160
Speaker 2: way that they're set up, they are often the best

891
00:38:41,160 --> 00:38:44,160
Speaker 2: place for borrowers to turn. But on top of including

892
00:38:44,200 --> 00:38:46,600
Speaker 2: credit unions in your search, just make sure that you

893
00:38:46,640 --> 00:38:49,520
Speaker 2: get multiple quotes. Don't just get a quote and be like,

894
00:38:49,560 --> 00:38:52,399
Speaker 2: all right, did my homework. No time to.

895
00:38:53,239 --> 00:38:54,240
Speaker 1: Sign on the dotted line.

896
00:38:54,320 --> 00:38:56,000
Speaker 2: And because that's what I'm excited about it, I'm excited

897
00:38:56,000 --> 00:38:58,799
Speaker 2: about that new ride, or I'm excited about getting this house.

898
00:38:59,160 --> 00:39:02,480
Speaker 2: Get multiple quote. Stats show that specifically on home loans,

899
00:39:02,719 --> 00:39:06,719
Speaker 2: individuals who get at least three quotes save thousands of

900
00:39:06,719 --> 00:39:09,279
Speaker 2: dollars more than the folks who just go directly to

901
00:39:09,320 --> 00:39:11,560
Speaker 2: a single lender. I think this is one of the

902
00:39:11,640 --> 00:39:14,640
Speaker 2: instances where the means to an end. In this case,

903
00:39:14,960 --> 00:39:17,760
Speaker 2: the credit score is the means. The end is life.

904
00:39:17,800 --> 00:39:19,520
Speaker 2: The things that you are able to do in life

905
00:39:20,200 --> 00:39:24,520
Speaker 2: actually supplants the true end and becomes this false end

906
00:39:24,760 --> 00:39:27,600
Speaker 2: in and of itself, right, And folks are just so preoccupied,

907
00:39:27,640 --> 00:39:31,600
Speaker 2: like they've been on this path of rehabilitating their score

908
00:39:31,640 --> 00:39:34,959
Speaker 2: and it's the precious and that was a terrible goalm voice,

909
00:39:34,960 --> 00:39:38,120
Speaker 2: but they're afraid to actually put it to use, and

910
00:39:38,120 --> 00:39:40,040
Speaker 2: they're afraid to get multiple quotes because they're like, well,

911
00:39:40,040 --> 00:39:41,359
Speaker 2: I don't want to every time I get a quote,

912
00:39:41,360 --> 00:39:43,759
Speaker 2: it's going to diging my score, my precious score. Well,

913
00:39:43,760 --> 00:39:44,439
Speaker 2: first of all, that's.

914
00:39:44,360 --> 00:39:46,320
Speaker 1: Not true, because usually there's a two week window.

915
00:39:46,520 --> 00:39:48,279
Speaker 2: Yeah yeah, and if you do it within a short

916
00:39:48,280 --> 00:39:51,800
Speaker 2: period of time, it doesn't count as multiple inquiries. But secondly,

917
00:39:51,840 --> 00:39:53,960
Speaker 2: even if you wait, there's some stats out there too

918
00:39:54,000 --> 00:39:54,920
Speaker 2: that say as long as you do it within a

919
00:39:54,920 --> 00:39:56,919
Speaker 2: thirty day window. Let's say you wait sixty days before

920
00:39:56,920 --> 00:39:59,359
Speaker 2: you get another quote. First of all, that's a long

921
00:39:59,440 --> 00:40:02,520
Speaker 2: time that you you're shopping. You can probably tighten that

922
00:40:02,600 --> 00:40:04,640
Speaker 2: up a little bit. But even if you are waiting

923
00:40:04,640 --> 00:40:06,440
Speaker 2: a really long time and it does ding your score,

924
00:40:06,640 --> 00:40:09,439
Speaker 2: the whole point of getting your credit score to where

925
00:40:09,600 --> 00:40:11,360
Speaker 2: it was was in order to pay less money. And

926
00:40:11,400 --> 00:40:13,879
Speaker 2: so make sure that you are not skipping this really

927
00:40:13,920 --> 00:40:15,880
Speaker 2: important step that is going to actually allow you to

928
00:40:15,880 --> 00:40:18,240
Speaker 2: pay less money, even if it does ding your score

929
00:40:18,320 --> 00:40:20,399
Speaker 2: just a little bit for a short duration. Yeah.

930
00:40:20,400 --> 00:40:21,960
Speaker 1: So, even if your score is not where you want

931
00:40:22,000 --> 00:40:24,120
Speaker 1: it to be, not where it ideally should be, it

932
00:40:24,160 --> 00:40:26,040
Speaker 1: doesn't mean that you just have to take it on

933
00:40:26,080 --> 00:40:29,400
Speaker 1: the chin always in forever, you can shop around and

934
00:40:29,440 --> 00:40:32,760
Speaker 1: get better terms. Even if your credit score isn't above

935
00:40:32,760 --> 00:40:35,319
Speaker 1: that seven and forty level where we'd like to see it.

936
00:40:35,440 --> 00:40:38,000
Speaker 1: The same thing goes with we talked about higher insurance rates, Matt.

937
00:40:38,080 --> 00:40:40,799
Speaker 1: You should shop with multiple different insurance companies no matter

938
00:40:40,800 --> 00:40:43,240
Speaker 1: what your credit score is, and even though on average

939
00:40:43,280 --> 00:40:45,279
Speaker 1: you're going to pay more, you might find that some

940
00:40:45,360 --> 00:40:48,120
Speaker 1: insurance companies are more lenient, don't care at don't factor

941
00:40:48,160 --> 00:40:50,799
Speaker 1: that credit score into their models nearly as much as

942
00:40:50,840 --> 00:40:52,680
Speaker 1: some of the other ones. So it's important to shop

943
00:40:52,680 --> 00:40:55,880
Speaker 1: around on all levels if your credit score is in

944
00:40:55,920 --> 00:40:58,600
Speaker 1: the dumps. But let's talk about something else map that

945
00:40:58,640 --> 00:41:00,560
Speaker 1: people can do with bad credit scores. They save more

946
00:41:00,560 --> 00:41:03,160
Speaker 1: cash for any purchase that they're planning to make, right,

947
00:41:03,280 --> 00:41:05,400
Speaker 1: being able to put down a bigger down payment on

948
00:41:05,400 --> 00:41:07,319
Speaker 1: a home that's going to lead to better terms and

949
00:41:07,400 --> 00:41:09,640
Speaker 1: often a better interest rate as well. Like your credit

950
00:41:09,640 --> 00:41:11,520
Speaker 1: score matters, but it's not the only thing that matters.

951
00:41:11,520 --> 00:41:15,560
Speaker 1: Do you have and it matters even less if you're

952
00:41:15,640 --> 00:41:17,920
Speaker 1: buying a car and you choose to buy a cheaper

953
00:41:17,960 --> 00:41:19,920
Speaker 1: car because you got the cash to cover that payment,

954
00:41:19,960 --> 00:41:21,920
Speaker 1: whereas you'd have to finance the newer one that costs

955
00:41:21,920 --> 00:41:22,520
Speaker 1: more money or.

956
00:41:22,520 --> 00:41:25,600
Speaker 2: Even better, You just have enough cash to actually buy.

957
00:41:25,400 --> 00:41:25,880
Speaker 1: The newer one.

958
00:41:25,960 --> 00:41:28,800
Speaker 2: Yeah, yeah, without having a finance it at all. Right, exactly.

959
00:41:29,160 --> 00:41:32,200
Speaker 1: That is like more cash means that your credit score

960
00:41:32,280 --> 00:41:35,279
Speaker 1: matters less. It's just true. And so if you have

961
00:41:35,320 --> 00:41:38,880
Speaker 1: the combo of bad credit and no cash, that becomes

962
00:41:38,960 --> 00:41:42,839
Speaker 1: an even more precarious situation to begin. And something else

963
00:41:42,920 --> 00:41:46,040
Speaker 1: I think that matters as well is looking towards to

964
00:41:46,040 --> 00:41:48,880
Speaker 1: get shorter term loans, because lenders are going to assume

965
00:41:49,120 --> 00:41:51,440
Speaker 1: that you're less likely to default when you're looking at

966
00:41:51,440 --> 00:41:53,160
Speaker 1: a forty eight month loan versus one that you plan

967
00:41:53,239 --> 00:41:55,600
Speaker 1: to pay off over like ninety six months, right, So

968
00:41:55,840 --> 00:41:58,360
Speaker 1: having more money to put down but also choosing a

969
00:41:58,400 --> 00:42:01,160
Speaker 1: shorter timeline, yeah, it's going to make your payments higher,

970
00:42:01,200 --> 00:42:03,040
Speaker 1: but it'll get you that lower rate, allowing you to

971
00:42:03,040 --> 00:42:05,439
Speaker 1: pay less in interest over the life and a loan,

972
00:42:05,880 --> 00:42:07,560
Speaker 1: and it's going to ensure that you're out of debt

973
00:42:07,600 --> 00:42:09,959
Speaker 1: more quickly. Don't bite off more than you can chew,

974
00:42:10,800 --> 00:42:13,160
Speaker 1: and borrowing less. In general, paying cash for a car,

975
00:42:13,239 --> 00:42:15,319
Speaker 1: like we just said, for instances is the best way

976
00:42:15,360 --> 00:42:18,040
Speaker 1: to go in order to avoid financing altogether. But if

977
00:42:18,080 --> 00:42:20,799
Speaker 1: you do have to finance things, shorter term loans are

978
00:42:20,840 --> 00:42:24,600
Speaker 1: going to be offer you better interest rates, even if

979
00:42:24,880 --> 00:42:27,759
Speaker 1: your credit score is you know, let's say six't eighty

980
00:42:27,760 --> 00:42:30,400
Speaker 1: six ninety seven hundred, it's not where you want it

981
00:42:30,440 --> 00:42:33,520
Speaker 1: to be. But the longer loan you choose, the more

982
00:42:33,560 --> 00:42:35,279
Speaker 1: you're going to pay an interest overall, and the higher

983
00:42:35,320 --> 00:42:36,279
Speaker 1: that interest rate's going to be.

984
00:42:36,360 --> 00:42:39,000
Speaker 2: Totally yeah, this is one of those instances, like everyone

985
00:42:39,160 --> 00:42:41,399
Speaker 2: has heard the term like cash is king, and that's

986
00:42:41,440 --> 00:42:43,960
Speaker 2: totally true when it comes to getting a deal, because

987
00:42:44,280 --> 00:42:49,439
Speaker 2: nothing beats the actual cash, whether it's somebody who's looking

988
00:42:49,480 --> 00:42:52,040
Speaker 2: to sell and they have the slam dunk decision of

989
00:42:52,080 --> 00:42:54,040
Speaker 2: knowing that finance is going to come through because oh,

990
00:42:54,040 --> 00:42:56,279
Speaker 2: there it is. There's the actual cash, or whether it's

991
00:42:56,320 --> 00:42:58,759
Speaker 2: your ability to pay you as a consumer to pay

992
00:42:58,800 --> 00:43:01,319
Speaker 2: less in interest. But again, and don't take this to

993
00:43:01,360 --> 00:43:03,000
Speaker 2: the far extreme and think, Okay, well why don't I

994
00:43:03,000 --> 00:43:05,000
Speaker 2: just pay cash for my house? Again, look at the

995
00:43:05,000 --> 00:43:07,560
Speaker 2: whole picture and what are some of the alternatives. What

996
00:43:07,640 --> 00:43:10,200
Speaker 2: else can you do with that money instead of saving

997
00:43:10,200 --> 00:43:12,600
Speaker 2: it up for I don't know, twenty years or however

998
00:43:12,680 --> 00:43:14,520
Speaker 2: long it would take you to pay cash for an

999
00:43:14,560 --> 00:43:16,719
Speaker 2: actual home. But basically, at the end of the day,

1000
00:43:16,760 --> 00:43:20,120
Speaker 2: we just want you to have a healthy credit score.

1001
00:43:20,160 --> 00:43:21,560
Speaker 2: We want you to be doing the right things. We

1002
00:43:21,600 --> 00:43:23,840
Speaker 2: want you to take a healthy approach to just generally

1003
00:43:23,920 --> 00:43:25,560
Speaker 2: boosting your credit score. We don't want you to have

1004
00:43:25,600 --> 00:43:29,279
Speaker 2: to rely on some of these different strategies constantly, like, yes,

1005
00:43:29,320 --> 00:43:32,600
Speaker 2: they are important to implement, but ultimately just have a good.

1006
00:43:32,560 --> 00:43:33,560
Speaker 1: Healthy credit score.

1007
00:43:33,920 --> 00:43:36,279
Speaker 2: And so we kind of touched on this second ago

1008
00:43:36,280 --> 00:43:37,920
Speaker 2: when we're kind of talking about some of the basics

1009
00:43:37,920 --> 00:43:39,080
Speaker 2: of what go into making.

1010
00:43:38,920 --> 00:43:40,799
Speaker 1: Up a credit score.

1011
00:43:41,120 --> 00:43:43,520
Speaker 2: But by increasing the amounts of credit that you have

1012
00:43:43,600 --> 00:43:46,919
Speaker 2: available to you that and not utilizing it, of course,

1013
00:43:46,960 --> 00:43:51,040
Speaker 2: that's going to drastically increase your credit score. Basically, you

1014
00:43:51,040 --> 00:43:53,520
Speaker 2: want to increase the number of positive tradelines. That's what

1015
00:43:53,719 --> 00:43:56,400
Speaker 2: the different bureaus call it. They want you to have

1016
00:43:56,480 --> 00:43:58,480
Speaker 2: access to a bunch of these different lines of credit

1017
00:43:58,480 --> 00:44:03,080
Speaker 2: while using them and basically minimally, and it reflects well

1018
00:44:03,120 --> 00:44:05,200
Speaker 2: on your score to have a few different credit cards, right,

1019
00:44:05,320 --> 00:44:07,960
Speaker 2: to have a loan or two, and to make sure

1020
00:44:08,000 --> 00:44:09,920
Speaker 2: that you're paying everything on time and in full. But

1021
00:44:10,000 --> 00:44:13,160
Speaker 2: specifically on those revolving lines of credit, we want you

1022
00:44:13,200 --> 00:44:15,600
Speaker 2: to use those sparingly. So, for instance, if you've got

1023
00:44:15,600 --> 00:44:17,600
Speaker 2: a card that's got a limit of twenty thousand dollars

1024
00:44:18,280 --> 00:44:21,000
Speaker 2: only spending up to something like two thousand dollars.

1025
00:44:21,320 --> 00:44:23,520
Speaker 1: That is a great approach where.

1026
00:44:23,400 --> 00:44:26,120
Speaker 2: You're not basically overleveraged, where you don't have too much

1027
00:44:26,120 --> 00:44:27,200
Speaker 2: outstanding debt or.

1028
00:44:27,120 --> 00:44:29,680
Speaker 1: I think typically if you're using less than thirty percent

1029
00:44:29,680 --> 00:44:31,520
Speaker 1: of your available credit, that's the thing you want to

1030
00:44:31,560 --> 00:44:34,120
Speaker 1: shoot for. But even less can less or even better,

1031
00:44:34,160 --> 00:44:36,840
Speaker 1: even more, and you want to pay specific attention to

1032
00:44:37,160 --> 00:44:39,960
Speaker 1: your utilization rate, the number of lines of credit that

1033
00:44:40,000 --> 00:44:43,200
Speaker 1: you have, especially if your credit score is not doing

1034
00:44:43,239 --> 00:44:46,239
Speaker 1: so hot, well, you might need to overtime. And we'll

1035
00:44:46,239 --> 00:44:48,840
Speaker 1: talk about this. How do you increase the number and

1036
00:44:48,880 --> 00:44:51,480
Speaker 1: the variety of debt that you have in order to

1037
00:44:51,480 --> 00:44:54,600
Speaker 1: improve your credit score without taking on more debt than

1038
00:44:54,640 --> 00:44:56,840
Speaker 1: you need to. That can be a difficult proposition, and

1039
00:44:56,880 --> 00:44:59,640
Speaker 1: so one way to do that is through a company

1040
00:44:59,680 --> 00:45:02,600
Speaker 1: called self dot ink. It used to be called self Lender,

1041
00:45:02,800 --> 00:45:06,640
Speaker 1: and they've got this really really cool sort of business

1042
00:45:06,680 --> 00:45:09,319
Speaker 1: model where you're actually making a loan to yourself, but

1043
00:45:09,400 --> 00:45:13,480
Speaker 1: you're doing it through self which is just it's hard

1044
00:45:13,480 --> 00:45:15,040
Speaker 1: to I don't know what their name being that it's

1045
00:45:15,400 --> 00:45:16,040
Speaker 1: even talking about it.

1046
00:45:16,160 --> 00:45:17,120
Speaker 2: Well, like an idiot.

1047
00:45:17,200 --> 00:45:19,719
Speaker 1: Yes, yeah, that's why the name self lender like it

1048
00:45:19,840 --> 00:45:22,399
Speaker 1: made it. It made it easier to talk about it here.

1049
00:45:22,680 --> 00:45:27,960
Speaker 1: But so yeah, basically, you're you're giving self cash and

1050
00:45:28,000 --> 00:45:31,960
Speaker 1: then and then what happens is you're making payments towards

1051
00:45:32,080 --> 00:45:34,920
Speaker 1: this debt that you've taken on that making payments to

1052
00:45:35,000 --> 00:45:39,000
Speaker 1: self right on your behalf. And so it's a bit confusing.

1053
00:45:39,040 --> 00:45:41,800
Speaker 1: But here's the thing with most people who go through

1054
00:45:42,239 --> 00:45:44,480
Speaker 1: self dot ink, you know, and make themselves alone in

1055
00:45:44,480 --> 00:45:47,200
Speaker 1: this way, and then self reports to the credit bureaus

1056
00:45:47,239 --> 00:45:49,640
Speaker 1: on your behalf, they see a credit score bump of

1057
00:45:49,640 --> 00:45:52,239
Speaker 1: something like thirty two points, which is meaningful. If you're

1058
00:45:52,280 --> 00:45:54,879
Speaker 1: at six ninety and you just went up to seven

1059
00:45:55,000 --> 00:45:57,839
Speaker 1: twenty two, that's a big old bump. And so that

1060
00:45:57,960 --> 00:46:00,400
Speaker 1: is one important thing to try. Secure credit cards can

1061
00:46:00,400 --> 00:46:02,680
Speaker 1: be a massive help to and you can typically get

1062
00:46:02,719 --> 00:46:04,279
Speaker 1: them via your credit union. You can get them other

1063
00:46:04,320 --> 00:46:08,439
Speaker 1: places too. Those are basically another type of installment loan,

1064
00:46:08,480 --> 00:46:10,719
Speaker 1: where a secure card is where you say, listen, give

1065
00:46:10,719 --> 00:46:13,080
Speaker 1: me a credit card with an eight hundred dollars limit.

1066
00:46:13,400 --> 00:46:15,160
Speaker 1: I'll give you the bank or the credit union eight

1067
00:46:15,239 --> 00:46:17,799
Speaker 1: hundred bucks, and then after seven or eight months of

1068
00:46:17,800 --> 00:46:20,360
Speaker 1: on time payments, you get a full you get upgraded

1069
00:46:20,400 --> 00:46:23,640
Speaker 1: to a full fledged credit card, and so after using

1070
00:46:23,680 --> 00:46:27,000
Speaker 1: that credit card responsibly, now you've improved your credit score too.

1071
00:46:27,239 --> 00:46:29,680
Speaker 1: There's also something called the pedal card, which will link

1072
00:46:29,719 --> 00:46:31,040
Speaker 1: to in the show notes that can be helpful for

1073
00:46:31,080 --> 00:46:33,759
Speaker 1: people with bad credit to boost their credit score. That

1074
00:46:33,840 --> 00:46:36,560
Speaker 1: doesn't they don't rely on your credit score in order

1075
00:46:36,640 --> 00:46:38,760
Speaker 1: to give you a line of credit. But the rise

1076
00:46:38,920 --> 00:46:41,759
Speaker 1: in secured credit cards and the use of companies like

1077
00:46:42,000 --> 00:46:46,400
Speaker 1: self doing this self generated lending essentially are all in

1078
00:46:46,440 --> 00:46:49,000
Speaker 1: response to the problem of credit repair services that we

1079
00:46:49,000 --> 00:46:51,680
Speaker 1: talked about earlier, just people trying to scam you out

1080
00:46:51,719 --> 00:46:54,959
Speaker 1: of money in order to improve your credit score. Usually

1081
00:46:55,040 --> 00:46:57,239
Speaker 1: they run away with the cash without doing much or

1082
00:46:57,280 --> 00:47:00,400
Speaker 1: anything to help you improve your score. These are legit, jitimate,

1083
00:47:00,560 --> 00:47:03,279
Speaker 1: in expensive ways for you to increase your credit score

1084
00:47:03,600 --> 00:47:05,120
Speaker 1: through tried and true methods.

1085
00:47:05,320 --> 00:47:08,000
Speaker 2: Yeah, they are legit, like they will actually increase your

1086
00:47:08,080 --> 00:47:10,160
Speaker 2: credit score. But the goal is to never have to

1087
00:47:10,239 --> 00:47:12,080
Speaker 2: use these companies to begin with. The goal like the

1088
00:47:12,160 --> 00:47:14,960
Speaker 2: response like, the reason these secured cards exist is because

1089
00:47:15,600 --> 00:47:18,120
Speaker 2: you have someone out there has made poor decisions when

1090
00:47:18,120 --> 00:47:20,200
Speaker 2: it comes to how it is that they handle credit.

1091
00:47:20,200 --> 00:47:22,600
Speaker 2: But especially if you are listening and maybe you don't

1092
00:47:22,600 --> 00:47:25,560
Speaker 2: even have a credit card and it's just sitting there.

1093
00:47:25,760 --> 00:47:28,879
Speaker 2: It's pristine. It's like freshly fallen snow and no one

1094
00:47:28,880 --> 00:47:32,200
Speaker 2: has walked out there, and it's perfect. Not perfect from

1095
00:47:32,440 --> 00:47:34,680
Speaker 2: you've got a perfect score standpoint, but perfect and that it's.

1096
00:47:34,560 --> 00:47:35,840
Speaker 1: Just blank, untrammeled.

1097
00:47:35,880 --> 00:47:39,120
Speaker 2: Well, you have the ability to from day one right now,

1098
00:47:39,160 --> 00:47:41,680
Speaker 2: to start handling credit in a responsible way and to

1099
00:47:41,760 --> 00:47:44,759
Speaker 2: slowly increase the credit that's available to you and to

1100
00:47:44,840 --> 00:47:47,359
Speaker 2: boost that score because it's going to have these long

1101
00:47:47,440 --> 00:47:48,520
Speaker 2: lasting impacts.

1102
00:47:48,560 --> 00:47:51,120
Speaker 1: And let's be honest, you mentioned the average credit score

1103
00:47:51,200 --> 00:47:54,640
Speaker 1: for gen Z millennials is six seventy nine. Those people

1104
00:47:54,719 --> 00:47:57,080
Speaker 1: in our likelihood, if you're right at that point, you're

1105
00:47:57,080 --> 00:47:59,680
Speaker 1: not going to need to turn to a secured credit card.

1106
00:47:59,520 --> 00:48:02,239
Speaker 1: You just need to start doing those basics better. Right.

1107
00:48:02,440 --> 00:48:04,759
Speaker 2: It's very unsexy, Yeah, for most people. What it is

1108
00:48:04,760 --> 00:48:05,319
Speaker 2: that they need to do.

1109
00:48:05,360 --> 00:48:07,440
Speaker 1: These services are really for people who are down in

1110
00:48:07,440 --> 00:48:10,120
Speaker 1: the dumps with credit and they need a big leg

1111
00:48:10,200 --> 00:48:12,799
Speaker 1: up and they need more drastic measures and so these

1112
00:48:13,120 --> 00:48:15,040
Speaker 1: this is one way to do that, right, is to

1113
00:48:15,200 --> 00:48:17,279
Speaker 1: turn to somebody like self or to turn to a

1114
00:48:17,280 --> 00:48:19,640
Speaker 1: secure credit card. But for most people out there, it's

1115
00:48:19,680 --> 00:48:22,200
Speaker 1: just doing those basic things of never not paying anything

1116
00:48:22,520 --> 00:48:25,640
Speaker 1: on time and to reduce your utilization, and to make

1117
00:48:25,680 --> 00:48:27,879
Speaker 1: sure that you're tending to your credit score and you're

1118
00:48:27,920 --> 00:48:30,840
Speaker 1: watching it go up month after month over time, not

1119
00:48:30,880 --> 00:48:33,520
Speaker 1: seeking perfection. Of course, like we said, and basically like

1120
00:48:34,480 --> 00:48:36,839
Speaker 1: your credit as we've discussed on this episode, is going

1121
00:48:36,880 --> 00:48:39,200
Speaker 1: to impact you in a bunch of ways. Good credit

1122
00:48:39,320 --> 00:48:40,719
Speaker 1: is going to give you a leg up in the

1123
00:48:40,760 --> 00:48:44,080
Speaker 1: personal finance world. Bad credit will make life a whole

1124
00:48:44,120 --> 00:48:46,760
Speaker 1: lot harder. And we know it's a little bit confusing,

1125
00:48:46,800 --> 00:48:48,839
Speaker 1: but your credit score matters in a lot of ways

1126
00:48:48,840 --> 00:48:51,239
Speaker 1: in the real world. So tend to it. Tend to

1127
00:48:51,280 --> 00:48:52,759
Speaker 1: it like you would like a garden. You got to

1128
00:48:52,760 --> 00:48:54,319
Speaker 1: pull the weeds and all that kind of stuff right,

1129
00:48:54,960 --> 00:48:57,600
Speaker 1: ensure that your credit score is not hampering your ability

1130
00:48:57,640 --> 00:48:59,560
Speaker 1: to make the financial progress you want to make. And

1131
00:48:59,600 --> 00:49:02,240
Speaker 1: by the way, if you have credit questions about credit scores,

1132
00:49:02,360 --> 00:49:04,279
Speaker 1: feel free to holler at us on we can you

1133
00:49:04,440 --> 00:49:07,120
Speaker 1: take your questions on an upcoming Ask Kind of Money episode.

1134
00:49:07,160 --> 00:49:08,960
Speaker 1: We know there's a lot of confusion, a lot of

1135
00:49:08,960 --> 00:49:11,359
Speaker 1: specific questions that people are probably gonna have in light

1136
00:49:11,400 --> 00:49:13,359
Speaker 1: of this episode, so reach out to us, send us

1137
00:49:13,360 --> 00:49:15,440
Speaker 1: your voice memo, and hopefully we can take it on

1138
00:49:15,480 --> 00:49:15,960
Speaker 1: the show soon.

1139
00:49:16,080 --> 00:49:17,880
Speaker 2: That's right, man, All right, let's get to the beer

1140
00:49:18,000 --> 00:49:20,960
Speaker 2: quickly here that you and I enjoyed today, the refreshing

1141
00:49:21,000 --> 00:49:24,200
Speaker 2: beer that we both enjoyed, which was a great fruit

1142
00:49:24,280 --> 00:49:27,640
Speaker 2: rattler by Halfway Crooks beer. And by the way, I

1143
00:49:27,680 --> 00:49:29,719
Speaker 2: want to mention real quick, We've said this before on

1144
00:49:29,760 --> 00:49:32,640
Speaker 2: the show, but Halfway Crooks they have the absolute best merch.

1145
00:49:33,000 --> 00:49:36,120
Speaker 2: And while I was up in North Carolina at a

1146
00:49:36,120 --> 00:49:38,279
Speaker 2: different brewery, there's a guy there and he had a

1147
00:49:38,280 --> 00:49:41,040
Speaker 2: Halfway Crooks sure on and I was like, oh, which

1148
00:49:41,080 --> 00:49:43,319
Speaker 2: is our I mean, we moved, but that was our

1149
00:49:43,480 --> 00:49:47,719
Speaker 2: local neighborhood brewery. Yeah. And I don't know, they're the best.

1150
00:49:47,920 --> 00:49:50,600
Speaker 2: They're marketing team or I don't know. I think it's

1151
00:49:50,600 --> 00:49:53,640
Speaker 2: just a couple guys, but they do such an awesome job.

1152
00:49:54,120 --> 00:49:55,759
Speaker 2: And I'm glad though that you and I got to

1153
00:49:56,440 --> 00:49:59,080
Speaker 2: enjoy this actual beer. What were your thoughts on it?

1154
00:49:59,200 --> 00:50:02,120
Speaker 1: So it was the delicious and I love me a

1155
00:50:02,120 --> 00:50:05,600
Speaker 1: good rattler, grapefruit rattler in particular, and this one is

1156
00:50:05,960 --> 00:50:08,280
Speaker 1: because it's a craft instead of like a mass produced

1157
00:50:08,280 --> 00:50:11,200
Speaker 1: one it had. It just tastes more like grapefruit. Man's

1158
00:50:11,239 --> 00:50:11,960
Speaker 1: more real.

1159
00:50:12,239 --> 00:50:14,680
Speaker 2: Yeah, as much as we love it, it tastes more

1160
00:50:14,680 --> 00:50:18,440
Speaker 2: real than Stegel, I do, like I love Stegel. It's sweet,

1161
00:50:18,480 --> 00:50:21,920
Speaker 2: but it was way less sweet, more grapefruit tasting. Yes,

1162
00:50:22,000 --> 00:50:24,839
Speaker 2: I got those bitter notes, Yes, exactly, That's what it's

1163
00:50:24,840 --> 00:50:26,600
Speaker 2: got going on with it, whereas the Stegel is just

1164
00:50:27,000 --> 00:50:31,040
Speaker 2: it literally it's like a minute made. It's almost as

1165
00:50:31,080 --> 00:50:33,560
Speaker 2: if you get that beer in a carton. Yeah, in

1166
00:50:33,600 --> 00:50:35,920
Speaker 2: the quart carton where you unscrew the little screw and

1167
00:50:36,120 --> 00:50:38,239
Speaker 2: pour the beer. Like that's how sweet it reminds me

1168
00:50:38,280 --> 00:50:39,840
Speaker 2: like I don't. I don't, by the way, know if

1169
00:50:39,880 --> 00:50:41,680
Speaker 2: I can enjoy that beer because it's so sweet, I

1170
00:50:41,719 --> 00:50:44,279
Speaker 2: would love to compare it side by side with halfway Crooks.

1171
00:50:44,280 --> 00:50:44,799
Speaker 2: That'd be fun.

1172
00:50:44,920 --> 00:50:47,120
Speaker 1: And we've talked about it in the past, but not

1173
00:50:47,200 --> 00:50:49,600
Speaker 1: on this episode. How rattlers are essentially half juice and

1174
00:50:49,640 --> 00:50:53,400
Speaker 1: half are typically right or half beer, and so yeah

1175
00:50:53,440 --> 00:50:56,520
Speaker 1: this I think they were originally created for cyclists in

1176
00:50:56,600 --> 00:50:59,480
Speaker 1: Germany to stop get something like thirst quenching.

1177
00:50:59,520 --> 00:51:01,680
Speaker 2: But also you know, you don't want a little beer

1178
00:51:01,719 --> 00:51:04,279
Speaker 2: to drink too much though, Like if it was full beer,

1179
00:51:04,320 --> 00:51:08,120
Speaker 2: it's like, well, how is that gonna lend cause me

1180
00:51:08,200 --> 00:51:09,840
Speaker 2: to be a better bicyclist?

1181
00:51:10,040 --> 00:51:12,319
Speaker 1: Right? So these are typically somewhere between two and four

1182
00:51:12,360 --> 00:51:17,160
Speaker 1: percent in abb which is which cool and they're just delightful, delightful.

1183
00:51:17,280 --> 00:51:19,319
Speaker 2: We're gonna get some of these before we get to

1184
00:51:19,360 --> 00:51:21,640
Speaker 2: the beach, that's for sure. But this is absolutely the

1185
00:51:21,680 --> 00:51:23,400
Speaker 2: kind of beer that you enjoy on the beach. If

1186
00:51:23,440 --> 00:51:25,600
Speaker 2: you've never tried a Rattler before and you like something

1187
00:51:25,600 --> 00:51:27,600
Speaker 2: that's juicy, but also you're a big fan of beer,

1188
00:51:27,600 --> 00:51:29,120
Speaker 2: make sure to check out a Rattler for sure.

1189
00:51:29,280 --> 00:51:30,960
Speaker 1: All Right, Matt, that's going to do it for this episode.

1190
00:51:31,000 --> 00:51:33,319
Speaker 1: Folks can find show notes links to some of the

1191
00:51:33,320 --> 00:51:35,840
Speaker 1: stuff we mentioned up on the website at howtomoney dot com.

1192
00:51:35,840 --> 00:51:36,279
Speaker 2: That's right.

1193
00:51:36,320 --> 00:51:37,399
Speaker 1: That's gonna be it for this one body.

1194
00:51:37,520 --> 00:51:41,200
Speaker 2: Until next time. Best Friends Out, Best Friends Out.