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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: and sure they definitely can be, but understanding a professionals

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Speaker 1: routine shows us how they achieve their success little by little,

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Speaker 1: day after day. It's like banking with P and C Bank.

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Speaker 1: It might seem boring to safe plan and make calculated

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Speaker 1: decisions with your bank, but keeping your money boring is

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Speaker 1: what helps you live or more happily fulfilled life. P

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Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

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Speaker 1: Boring since eighteen sixty five is a service mark of

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Speaker 1: the PNC Financial Service Group, Inc. P and C Bank

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Speaker 1: National Association Member FDIC erness What's Up? You ever walk

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Speaker 1: into a small business and everything just works like the

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Speaker 1: checkout is fast, the receipts are digital, tipping is a breeze,

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Speaker 1: and you're out the door before the line even builds.

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Speaker 1: Odds are they're using Square? We love supporting business that

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Speaker 1: run on Square because it just feels seamless. Whether it's

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Speaker 1: a local coffee shop, a vendor at a pop up market,

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Speaker 1: or even one of our merch partners. Square makes it

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Speaker 1: easy for them to take payments, manage inventory, and run

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Speaker 1: their business with confidence, all from one simple system. If

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Speaker 1: you're a business owner or even just thinking about launching

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Speaker 1: something soon, Square is hands down one of the best

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Speaker 1: tools out there to help you start, run, and grow.

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Speaker 1: It's not just about payments, it's about giving you time

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Speaker 1: back so you can focus on what matters most ready.

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Speaker 1: To see how Square can transform your business, visit Square

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Speaker 1: dot com backslash go backslash eyl to learn more that

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Speaker 1: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.

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Speaker 1: Let's Square handle the back end so you can keep

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Speaker 1: pushing your vision forward.

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Speaker 2: The greater number of one time payments that you accumulate,

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Speaker 2: the more season your credit profile is considered. Right, and

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Speaker 2: we'll get more specific with that. These timely payments form.

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Speaker 2: What's the basis of your borrowing power? You guys? Throughout

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Speaker 2: this presentation, you guys are hearing me say barring power

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Speaker 2: a lot, right, and barring power just means your ability

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Speaker 2: to borrow and at what terms are you able to

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Speaker 2: borrow at? Right? Lenders utilize this term frequently and it

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Speaker 2: just means how risky do they assume you are based

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Speaker 2: on your credit profile. Right, what what what what history

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Speaker 2: or what what borrowing abilities or debt management skills does

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Speaker 2: your credit profile speak to based on the history of

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Speaker 2: your accounts?

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Speaker 1: Okay?

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Speaker 2: So, in other words, your barring power does not align

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Speaker 2: just with your credit score, does not necessarily align with

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Speaker 2: with your credit score. Right. There are so many individuals

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Speaker 2: who have a high credit score, good credit or or

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Speaker 2: or or vice versa, and they their barring power may

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Speaker 2: not match their credit score. Right because, contrary to popular belief,

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Speaker 2: your your credit score and your credit profile are two

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Speaker 2: totally separate things, right, And then another thing on top

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Speaker 2: of that, lenders are not as concerned with your credit

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Speaker 2: score as we are as consumers, Like we're more concerned

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Speaker 2: with our credit scores. Excuse me, guys, We're more concerned

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Speaker 2: with our credit scores than lenders are. Right. So, when

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Speaker 2: you are filling out a credit application, your credit score

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Speaker 2: is not the determining factor on if you will be

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Speaker 2: approved for said card or car or home. Right, it

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Speaker 2: has a little, it has a little to do with it. However,

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Speaker 2: it's never going to be the deciding factor. It's always

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Speaker 2: going to be your credit profile. Right, And that just

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Speaker 2: means what makes up the last seven years of how

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Speaker 2: you've behaved in your credit, right, what does that speak

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Speaker 2: to the history on all of your accounts and all

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Speaker 2: of that right now, the total number of late payments

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Speaker 2: on each of your accounts, as well as the ratio

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Speaker 2: of accounts with late payments to those without, both influence

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Speaker 2: how many points you're actually getting of those one hundred

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Speaker 2: and ninety two point five. And in other words, to

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Speaker 2: make it very simple, not only are you judged by

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Speaker 2: how many one time payments that you have versus mispayments,

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Speaker 2: but another factor that goes into determining how many of

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Speaker 2: those points that you're getting is how many accounts that

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Speaker 2: you have that has never had a lay payment. So

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Speaker 2: let's just say you have five accounts on your credit report,

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Speaker 2: and then three of them you've been late within the

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Speaker 2: last seven years, you would only have two accounts with

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Speaker 2: one hundred percent positive payment history for seven years, right. So,

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Speaker 2: in other words, if you want to obtain as much

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Speaker 2: of these points as possible, or hopefully every single one

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Speaker 2: of them, you would not only have to have no

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Speaker 2: lay payments for the last seven years, right, but you

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Speaker 2: can't even have like derogatory accounts collections or charge offs

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Speaker 2: in all of that right now, Just to relieve you

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Speaker 2: guys a little bit, you are not expected to have

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Speaker 2: a perfect credit score. In fact, only one percent of

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Speaker 2: the population has a perfect credit score of an eight

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Speaker 2: point fifty, So you don't actually have to strive for

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Speaker 2: a perfect credit score in order to have substantial barring power. Right,

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Speaker 2: And that's what I wanted to talk about today, Just

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Speaker 2: little things that you can do, that you can change

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Speaker 2: starting today that'll impact your barring power in a positive way. Okay. Now,

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Speaker 2: other factors that goes into determining how many points you're

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Speaker 2: getting is the time since your last mispayment, the degree

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Speaker 2: of lateness, So obviously you can be thirty days late,

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Speaker 2: sixty days late, ninety days late, up to one hundred

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Speaker 2: and twenty days late.

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Speaker 1: Right.

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Speaker 2: The type of account that you have a lay payment on,

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Speaker 2: there is a hierarchy to lay payments, right, a hierarchy

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Speaker 2: in the sense that, for example, mortgage accounts, lay payments

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Speaker 2: on mortgage accounts are considered the worst type of lay payments.

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Speaker 2: So if you have a mortgage and you have a

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Speaker 2: lay payment, that's one to wag weigh more heavily in

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Speaker 2: a negative way on your barring power. And your credit

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Speaker 2: score than if you were lay on let's say a

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Speaker 2: credit card. Right, So the hierarchy is mortgage accounts those

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Speaker 2: are the top dog, auto loans, revolving accounts which are

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Speaker 2: credit cards, and then retail accounts. So those are going

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Speaker 2: to be like your furniture accounts. If you have a

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Speaker 2: retail credit card or something like that, those are like

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Speaker 2: considered you know, low level accounts. Therefore their lay payments

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Speaker 2: of course still does affect you, but it does it

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Speaker 2: impacts you less than the other account types. Okay, again,

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Speaker 2: how many one time payments you add to your payment

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Speaker 2: bank will speak more to your barn cards. So the

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Speaker 2: more on time payments that you have, the better, the

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Speaker 2: better your credit profile is. Right, here's the tip. The

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Speaker 2: top one percent of borrowers one percent meaning like obviously

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Speaker 2: they get the top offers. The top one percent of

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Speaker 2: borrowers have successfully made more than five hundred on time

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Speaker 2: payments on their credit profile. Right. Remember that five hundred number,

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Speaker 2: because just the little tipig trick between me and you,

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Speaker 2: the that your credit profile records five hundred at least

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Speaker 2: five hundred payments within the last seven years, you immediately

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Speaker 2: you immediately your your credit profile gets taken up to

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Speaker 2: the top threshold. The contingency, I want to say, the

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Speaker 2: contingency is if you like, this does not work if

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Speaker 2: you've had a collection within the last twenty four months. Okay, now,

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Speaker 2: if you have had a collection within the last twenty

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Speaker 2: four months, your credit profile will still be ranked higher

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Speaker 2: than what it would have before you had five hundred payments.

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Speaker 2: But if you don't have a collection within the last

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Speaker 2: twenty four months, that is a sort of like cheat code, right,

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Speaker 2: it's a cheat code in order to take your credit

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Speaker 2: profile to what's probably a lower level based on whatever

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Speaker 2: your your credit profile looks like, immediately to the top

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Speaker 2: ranked amongst the top borrowers. Right. And there are tiers

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Speaker 2: when it comes to barring power. Right Like, two people

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Speaker 2: can apply for the same application, they can even have

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Speaker 2: the they can even have identical credit scores, but they're

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Speaker 2: not going to have the same barring power. Right Like,

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Speaker 2: one may get approved for one thousand dollars, one may

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Speaker 2: get approved of five hundred dollars. And how much you're

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Speaker 2: approved for is determined off certain things that you have

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Speaker 2: shown on your credit profile. And in this example, the

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Speaker 2: goal should always be at least five hundred payments within

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Speaker 2: the last seven years, right, And that sounds like a lot,

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Speaker 2: but it's not a lot because I've already done. I

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Speaker 2: did a calculation for you. All you have to do

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Speaker 2: is have six accounts which will will record seventy two

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Speaker 2: payments per year towards your payment history for seven years.

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Speaker 2: So if you maintain six, if you maintain at least

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Speaker 2: six accounts, and if you have student loans like this

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Speaker 2: is very easy to do. If you maintain if you

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Speaker 2: maintain at least six accounts for you know, over over

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Speaker 2: the course of seven years, then you'll get your five

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Speaker 2: hundred payments. Now. Obviously, if you have more accounts than that,

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Speaker 2: then you'll you'll reach it faster. Right, But that's one

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Speaker 2: of the for sure ways to ensure that you are getting,

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Speaker 2: depending on the rest of your profile, all it or

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Speaker 2: most if not all, of those one hund ninety two

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Speaker 2: point five points, right. So that's sort of a way

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Speaker 2: to make your credit profile resilient. Right, Like if you

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Speaker 2: do if you are getting most of those points or

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Speaker 2: all of those points, things are not going to impact

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Speaker 2: you as much as they would impact someone else that's

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Speaker 2: not getting all of the payment history points because it

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Speaker 2: is the largest factor of your credit score, and it

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Speaker 2: lends more than more than any other category. Right, So

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Speaker 2: remember that five hundred payments will automatically make your credit

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Speaker 2: profile considered experience automatically. It's not an opinion thing, it's statistically.

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Speaker 2: If you have five hundred one time payments obviously not

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Speaker 2: lay payments. So five hundred one time payments recorded, which

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Speaker 2: again in the last seven years, your credit profile will

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Speaker 2: automatically be considered experienced, okay. And make sure they're on

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Speaker 2: primary accounts. So if it's an authorized user account, they

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Speaker 2: don't they don't. They don't impact your barring power the same,

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Speaker 2: So make sure you are doing these with primary accounts, okay.

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Speaker 3: An illegal alien from Guatemala charged with raping a child

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Speaker 3: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 3: accused of murdering a Texas man of Venezuelan charged with

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Speaker 3: filming and selling child pornography in Michigan. These are just

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Speaker 3: some of the heinous migrant criminals caught because of President

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Speaker 3: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 3: Secretary of Homeland Security. Under President Trump. Attempted illegal border

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Speaker 3: crossings are at the lowest levels ever recorded, and over

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Speaker 3: one hundred thousand illegal aliens have been arrested. If you

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Speaker 3: are here illegally, your next you will be fined nearly

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Speaker 3: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 3: never return. But if you register using our CBP home

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Speaker 3: app and leave now, you could be allowed to return legally.

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Speaker 3: Do what's right. Leave now. Under President Trump America's laws,

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Speaker 3: border and families will be protected. Sponsored by the United

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Speaker 3: States Department of Homeland Security,