WEBVTT - BA Q&A: I'm Worried About My Credit Score! 0:00:06.280 --> 0:00:09.639 It's time for the b a q A. The b 0:00:09.760 --> 0:00:13.400 a q A. Okay, the b a qa. Do you 0:00:13.480 --> 0:00:20.560 have a question about business, entrepreneurship, career, life. Well, not 0:00:20.600 --> 0:00:21.880 so much to life because we still try to live 0:00:21.880 --> 0:00:23.599 it ourselves to out, but you know the other stuff. 0:00:24.079 --> 0:00:28.479 Me and Manjol are here for weekly Brown Ambition Question 0:00:28.640 --> 0:00:29.680 and Answer. 0:00:30.240 --> 0:00:32.560 Yes, ma'am, all right, we have some really good questions. 0:00:32.560 --> 0:00:34.519 If y'all want to drop us a question, just go 0:00:34.560 --> 0:00:37.480 to Brandiebission podcast dot com and you can click ask 0:00:37.640 --> 0:00:41.000 us anything to submit a question. Also, hit us up 0:00:41.040 --> 0:00:44.880 on Instagram. We are at Brandibision podcast. We are checking 0:00:44.920 --> 0:00:47.640 your questions there as well. Today we have a couple 0:00:47.680 --> 0:00:51.560 of home questions, so some interesting juicy ones. Let's start 0:00:51.560 --> 0:00:55.680 with this question from Charlotte. Charlotte said Mandy in all caps. 0:00:55.760 --> 0:00:57.720 Siftany is here too, Charlotte. Okay, so it was media 0:00:57.720 --> 0:01:00.320 and Tiffany. What are the pros and cons of a 0:01:00.400 --> 0:01:03.000 hee lock? For those who don't know, a helock stands 0:01:03.040 --> 0:01:06.200 for a home equity line of credit. Charlotte says, my 0:01:06.360 --> 0:01:09.800 home has about sixty thousand dollars of equity and I 0:01:09.800 --> 0:01:12.640 would like to tap into that to have several projects done. 0:01:13.160 --> 0:01:15.760 I was fortunate to buy a foreclosed home in twenty 0:01:15.840 --> 0:01:19.280 fifteen for only fifty thousand dollars. That doesn't need any 0:01:19.319 --> 0:01:23.080 expensive or large projects. I've been slowly refreshing it. My 0:01:23.160 --> 0:01:25.320 home is currently valued at about one hundred and twenty 0:01:25.400 --> 0:01:28.920 five thousand by my county assessor. Okay, so that's how 0:01:28.959 --> 0:01:30.320 she's getting that equity. 0:01:30.840 --> 0:01:36.600 Yes, first fault. Let's give you a round of applause. Charlotte, yes, card, Yes, 0:01:36.840 --> 0:01:40.360 we stand a queen, Why a smart queen. I'm going 0:01:40.440 --> 0:01:43.720 to assume that you bought the fourth closed home for 0:01:43.800 --> 0:01:47.400 the fifty thousand cash. I'm assuming just because typically foreclosure 0:01:47.400 --> 0:01:49.880 is at that amount. They're not financing. So let's just 0:01:49.960 --> 0:01:53.360 assume that she doesn't have a mortgage, which is important 0:01:53.440 --> 0:01:57.200 to understand. So home atically home equity line of credit 0:01:57.320 --> 0:02:00.480 aka he lock means like you basically hat your home, 0:02:00.520 --> 0:02:03.520 almost like a credit card. I came in like a 0:02:03.640 --> 0:02:04.800 credit card. 0:02:05.480 --> 0:02:11.040 Name that song Mandy, oh shit, Miley Cyrus wrecking Ball record. 0:02:11.480 --> 0:02:13.679 You never know when this song trivia is going to come. 0:02:14.520 --> 0:02:16.919 Didn't think it'd be in a helocked conversation, but I'm down. 0:02:17.600 --> 0:02:21.120 So that just means that Charlotte had Charlotte, I was 0:02:21.160 --> 0:02:23.040 gonna do this too, this whole equery line of credit, 0:02:23.040 --> 0:02:26.440 because I was like, Okay, basically it means that Charlotte, 0:02:26.480 --> 0:02:27.680 I mean, you could do this even if you don't 0:02:27.680 --> 0:02:30.960 own your home straight out. But she can borrow the 0:02:31.040 --> 0:02:33.240 money up to a certain amount. Like let's just say 0:02:34.080 --> 0:02:36.280 she to make the math easy, let's just say, Charlotte, 0:02:36.520 --> 0:02:38.680 you know the house is worth a hundred thousand, and 0:02:39.400 --> 0:02:41.560 she put fifty thousand in it or whatever. They don't 0:02:41.639 --> 0:02:44.320 let you take out the full amount of what all 0:02:44.320 --> 0:02:46.000 of your equity. They don't because they're like, girl, you 0:02:46.000 --> 0:02:48.280 tried it. Instead, they let you take out a percentage. 0:02:48.320 --> 0:02:50.200 Don't quote me. I think it's around no more than 0:02:50.240 --> 0:02:52.600 sixty percent, or saying something like that, but don't quote me. 0:02:52.639 --> 0:02:53.720 Seeing up to eighty five. 0:02:54.120 --> 0:02:56.360 Okay, perhaps yeah, on. 0:02:56.680 --> 0:02:58.160 The bank, yes it does. 0:02:59.360 --> 0:03:03.880 But if the benefits of Helock's because there's certainly cons 0:03:03.880 --> 0:03:06.600 but one of the benefits of Helock is that typically 0:03:06.600 --> 0:03:09.880 the interest rate is more reasonable because the bank actually 0:03:09.919 --> 0:03:14.119 has a tangible thing or tangible things to say, if 0:03:14.200 --> 0:03:16.919 Charlotte don't pay me, guess what we're gonna do. Snatch 0:03:17.000 --> 0:03:19.880 that house child? You know, So typically a helock. The 0:03:19.880 --> 0:03:22.080 interest rates are a little bit better, but some of 0:03:22.080 --> 0:03:26.079 the cons our interest rates are up overall. Charlotte, I'm 0:03:26.080 --> 0:03:28.799 assuming that you don't have a mortgage, and so I 0:03:28.840 --> 0:03:30.440 don't know if you like me, but I'm like not 0:03:30.440 --> 0:03:34.200 having any more rtgage. But some of the benefits also too, 0:03:34.280 --> 0:03:37.640 is that you said several projects done. I'm assuming that 0:03:37.680 --> 0:03:40.800 you're wanting to fix stuff on the house, which would 0:03:40.920 --> 0:03:42.880 if you do so carefully, Charlotte and I will reach 0:03:42.880 --> 0:03:45.080 out to a real term and I would see a contra, 0:03:45.120 --> 0:03:48.360 a knowledgeable contractor that what things can you fix where 0:03:48.400 --> 0:03:50.960 you'll get a return on that investment. So it could 0:03:50.960 --> 0:03:53.960 actually she could take the money out. Say she took out, 0:03:54.200 --> 0:03:57.400 you know, twenty thousand dollars, fixed up some bathrooms and 0:03:57.440 --> 0:04:00.360 got the return of thirty thousand dollars. So there are 0:04:00.400 --> 0:04:02.440 pros and cons that we just share with you. But Mandy, 0:04:02.440 --> 0:04:03.800 do you have some that maybe I'm missing? 0:04:04.240 --> 0:04:06.040 Yeah, I mean you mentioned the biggest con, which is 0:04:06.040 --> 0:04:08.720 that your home is tied to it, so if you default, 0:04:08.760 --> 0:04:14.040 then they can take your whole entire house, which is unfortunately. Yeah, 0:04:14.160 --> 0:04:16.800 that's for collateral, but that's why the rates can be lower. 0:04:17.320 --> 0:04:19.680 You know, and also with a helock, So there's there's 0:04:19.720 --> 0:04:22.159 a couple, you know, without getting like two two technical. 0:04:22.200 --> 0:04:24.200 There's a home equity loan which is like a lump 0:04:24.200 --> 0:04:27.120 sum loan, and a home equity line of credit, which 0:04:27.120 --> 0:04:28.680 is kind of like Tiffany said, it's more like a 0:04:28.680 --> 0:04:30.400 credit card. You don't have to use you. 0:04:30.360 --> 0:04:32.000 Don't they don't give you the full amount. 0:04:32.640 --> 0:04:36.000 You basically you know, you you make draws on that 0:04:36.080 --> 0:04:38.920 line as you need it, so you may not actually 0:04:39.000 --> 0:04:41.120 end up using all of your entire line, depending on 0:04:41.160 --> 0:04:42.560 how much work you need to have done. So it's 0:04:42.560 --> 0:04:45.760 a little bit more flexible in that way. And then 0:04:45.800 --> 0:04:47.800 you but you have to be clear on what your 0:04:47.839 --> 0:04:49.600 draw period is and then when you'd have to start 0:04:49.600 --> 0:04:52.440 making payments on that, so looking at the fine print 0:04:52.560 --> 0:04:56.680 is important. You don't have to use your loan, although 0:04:56.680 --> 0:04:59.200 it sounds like you are for home improvements, which is smart, 0:04:59.240 --> 0:05:01.080 but you don't have to use use it for home improvements. 0:05:01.080 --> 0:05:03.880 You know, you can use home equity loans or helocks 0:05:03.960 --> 0:05:07.560 for other expenses as well, debt consolidation being another one. 0:05:07.920 --> 0:05:11.240 So it's a cool tool. It's also another piece of 0:05:11.279 --> 0:05:14.760 power for home ownership. It gives you that additional leverage. 0:05:15.160 --> 0:05:15.800 I don't know why it. 0:05:15.760 --> 0:05:17.479 Took me so damn long for it to click in 0:05:17.480 --> 0:05:19.520 my mind that when people said, I'm taking out another 0:05:19.520 --> 0:05:22.040 mortgage on my home, this is what they're talking about. 0:05:22.240 --> 0:05:25.120 They're talking about taking out a home equity loan, where 0:05:25.200 --> 0:05:28.440 you are essentially again taking out a loan against the 0:05:28.520 --> 0:05:31.679 value of your home. And second mortgages sound really scary, 0:05:31.839 --> 0:05:34.120 and they can be. It doesn't sound like a good idea, right, 0:05:34.200 --> 0:05:36.440 like why would I take out more debt against my home? 0:05:37.000 --> 0:05:39.520 But if you are in a position, like Tiff said, 0:05:39.520 --> 0:05:41.520 where you can make an investment with that money that 0:05:41.839 --> 0:05:44.720 ends up benefiting you in the long run, then it 0:05:44.720 --> 0:05:48.280 can be a lot smarter than potentially for example, you know, 0:05:48.360 --> 0:05:51.160 going into your cash savings account and taking a bunch 0:05:51.200 --> 0:05:54.200 of cash out. You know, in this way you can 0:05:54.240 --> 0:05:57.640 make the improvement slowly and take advantage of low rates 0:05:57.880 --> 0:06:01.120 and keep your own cash flow like keeping your own 0:06:01.240 --> 0:06:04.640 cash in the bank. Yeah, and keep it yeah flowing, 0:06:04.920 --> 0:06:06.520 keep it flowing and available for you. 0:06:07.040 --> 0:06:08.760 Because I remember, Manny, this is when I got like 0:06:08.839 --> 0:06:13.000 the the the low. Also to Charlotte, if you are 0:06:13.040 --> 0:06:16.839 a sister, you run the risk of having your home 0:06:16.960 --> 0:06:19.839 under praised. I know your tax ascessor said, so remember 0:06:19.880 --> 0:06:22.080 this because remember the reason why I know all this, 0:06:22.360 --> 0:06:25.240 because I too was looking into a heloc last year. 0:06:25.400 --> 0:06:29.040 Was it last year or the year before, if y'all remember, So, 0:06:29.040 --> 0:06:31.960 my husband and I we have two properties. One well 0:06:32.000 --> 0:06:33.520 both of them are paid off, but one was like 0:06:33.520 --> 0:06:37.279 our rental property, and we were considering pulling money out 0:06:37.520 --> 0:06:39.039 to put it into the market because the market was 0:06:39.080 --> 0:06:42.040 going up, up, up, honey. And like the house, although 0:06:42.080 --> 0:06:45.000 it was appreciating in value, meaning becoming more and more valuable, 0:06:45.040 --> 0:06:47.680 it wasn't as going up as fast as the market was. 0:06:47.720 --> 0:06:49.080 So I was like, well, we could take out maybe 0:06:49.240 --> 0:06:52.120 one hundred thousand dollars, put into the market, you know, 0:06:52.279 --> 0:06:54.720 get back whatever the market was gonna yield, and then 0:06:54.839 --> 0:06:57.560 pay off the loan and then have some extra money 0:06:57.560 --> 0:07:00.760 from our pocket. But unfortunately, the actually it was my 0:07:00.760 --> 0:07:05.039 personal private home. The appraiser under appraised us by about 0:07:05.040 --> 0:07:08.279 like forty to fifty thousand dollars. Because black and so 0:07:08.480 --> 0:07:11.360 I can say that like definitively, because I mean they 0:07:11.400 --> 0:07:13.240 have so many articles. I mean, actually the I think 0:07:13.280 --> 0:07:15.240 that it was a Washington Post forte an article about me. 0:07:15.520 --> 0:07:17.680 I think maybe the New York Times had interviewed me 0:07:17.720 --> 0:07:20.760 as well, but yeah, they found that it was definitely 0:07:20.880 --> 0:07:23.920 under appraise because our house was brand new, like some 0:07:23.960 --> 0:07:26.240 of the things that he wrote was like normal wear 0:07:26.280 --> 0:07:28.960 in tear, like every hinge on the door was brand new. 0:07:29.080 --> 0:07:32.600 The house we had finished renovations six months prior what 0:07:32.640 --> 0:07:34.720 we're in Taar. We hadn't even lived here really yet. 0:07:35.080 --> 0:07:37.920 So anyway, so you run the risk of that as well. 0:07:38.160 --> 0:07:41.360 You might want to look for a a appraiser of 0:07:41.440 --> 0:07:44.760 some melanin if you are melanated, or do with My 0:07:44.840 --> 0:07:46.320 husband and I had decided that we were gonna do, 0:07:46.360 --> 0:07:48.880 which was to get our white friend Katherine, hey, Catherine 0:07:49.240 --> 0:07:51.120 to be to be me in the house, which is 0:07:51.160 --> 0:07:53.120 really terrible, but that's what we were gonna do. So 0:07:53.200 --> 0:07:55.000 just keep that in mind that that's the potential too. 0:07:55.640 --> 0:07:58.840 But you sound pretty pretty responsible. So if you brought 0:07:58.840 --> 0:08:04.200 a foreclosure four, you've already seen this increase. Just be 0:08:04.320 --> 0:08:07.280 mindful that you know money costs, so just make the 0:08:07.320 --> 0:08:07.800 most of it. 0:08:08.440 --> 0:08:10.680 Yeah, well, thank you for your question, Charlotte. 0:08:11.400 --> 0:08:12.360 Thank you all right. 0:08:12.920 --> 0:08:18.240 Another one, this one comes from listener cec all Right says, hey, Mandya. 0:08:17.760 --> 0:08:22.240 Wait CC do you love me name? That song isn't 0:08:22.280 --> 0:08:24.080 a kiki it is? 0:08:24.120 --> 0:08:30.320 But like, yeah, that's right, yes, Drake, Shit, what's it called? 0:08:31.480 --> 0:08:34.240 I don't even know if it is. I don't know 0:08:34.320 --> 0:08:35.839 if you're writing it. But at least you knew, Drake. 0:08:35.840 --> 0:08:37.840 That's good at that I could do the song from TikTok. 0:08:37.880 --> 0:08:40.199 I mean the dance from TikTok that's where you had 0:08:40.200 --> 0:08:42.560 to get out of the car while I was still moving. Right, Yes, 0:08:45.480 --> 0:08:50.679 all right, go ahead, okay, CC says Mandy, Thank you, 0:08:50.720 --> 0:08:53.199 oh sending thanks for how you've maintained the show in 0:08:53.240 --> 0:08:55.480 Tiffany's time of healing. I hope Tiffany feels all the 0:08:55.520 --> 0:08:58.400 love being sent her a way I do think I 0:08:58.440 --> 0:09:02.480 thanks CC. CC says I recently bought my first property 0:09:02.520 --> 0:09:05.200 and moved out of my old apartment in February. I'm 0:09:05.200 --> 0:09:07.920 in the same city and have the same utility companies, 0:09:07.960 --> 0:09:11.080 but new accounts. Today, I've received a call from a 0:09:11.120 --> 0:09:14.120 collections agency saying I didn't pay the final gas bill, 0:09:14.160 --> 0:09:17.079 which was due in March. The amount is only thirty 0:09:17.080 --> 0:09:19.360 five dollars, but I don't remember getting that bill or 0:09:19.360 --> 0:09:22.560 any past you notices. It's completely possible that I lost 0:09:22.600 --> 0:09:24.600 track of it during the move. I went ahead and 0:09:24.600 --> 0:09:26.360 paid it, but now I'm worried that my credit score 0:09:26.400 --> 0:09:29.720 will be negatively impacted. I've had a perfect payment history 0:09:29.720 --> 0:09:32.040 on all of my accounts for almost fifteen years, and 0:09:32.080 --> 0:09:34.760 now I'm worried that I've ruined it over thirty five dollars. 0:09:34.800 --> 0:09:38.040 Please tell me what I should do. Oh, CC, It's 0:09:38.080 --> 0:09:38.840 gonna be okay. 0:09:39.520 --> 0:09:41.840 Yes, First of all, CC, let me tell you something 0:09:42.559 --> 0:09:46.840 like I one of my credit cards, I totally forgot 0:09:46.880 --> 0:09:49.960 to make a payment and I thought I had automated, 0:09:50.000 --> 0:09:53.920 but I guess I didn't, and so yo JIWD. My 0:09:53.960 --> 0:09:56.480 credit score went from and this is recently an eight 0:09:56.480 --> 0:09:59.200 oh two Mandy to a six eighty seven. 0:09:59.679 --> 0:09:59.800 No. 0:10:00.559 --> 0:10:03.800 I was like, the audacity, the goal is. 0:10:03.800 --> 0:10:05.839 That like super duper late? How late are we? 0:10:06.040 --> 0:10:08.160 Oh? I mean honestly, probably like a monthly. I didn't 0:10:08.160 --> 0:10:08.920 even know, Like I went in too. 0:10:08.960 --> 0:10:11.920 Look, I was like, wait what because everything credit card 0:10:11.960 --> 0:10:14.240 payments too, because I'm very disorganized sometimes. 0:10:14.400 --> 0:10:16.280 But I couldn't believe, you know, you know what it 0:10:16.320 --> 0:10:18.480 was too. That's why it was like I had made 0:10:18.480 --> 0:10:19.880 it late. And then I was like, okay, I'm gonna 0:10:19.920 --> 0:10:22.160 auto me and then the next month I forgot to automate, 0:10:22.400 --> 0:10:24.120 so I think it was too late payments in a row, 0:10:24.440 --> 0:10:26.800 so I dropped so many points, and at first my 0:10:26.800 --> 0:10:28.760 stomach sank. I mean to go from an AOO two 0:10:29.000 --> 0:10:32.120 to a six eighty seven, But then I remember, I'm 0:10:32.160 --> 0:10:35.760 not trying to buy nothing, like I have two homes already, 0:10:36.080 --> 0:10:39.280 I have a car. I'm not borrowing any money that 0:10:39.400 --> 0:10:43.000 your credit like, that's like my eighty something your dad 0:10:43.440 --> 0:10:46.040 stressing about credit. It doesn't mean you don't want to 0:10:46.040 --> 0:10:48.800 have decent credit, because you should. Credit basically says you 0:10:48.840 --> 0:10:51.680 should know me before you need me. So certainly you 0:10:51.720 --> 0:10:53.760 want to have a strong credit score. But you said 0:10:53.800 --> 0:10:56.240 you just bought a home, so I'm assuming you're not 0:10:56.280 --> 0:10:59.680 looking to borrow money anytime soon, especially not for a property, 0:11:00.160 --> 0:11:03.440 and so even if it does drop you, you have time. 0:11:03.480 --> 0:11:05.240 Like since then, it's been like three or four months, 0:11:05.240 --> 0:11:07.840 and of course I've made my regular payments, I've automated it, 0:11:07.880 --> 0:11:10.680 and now I'm at a instead of a six eighty seven, 0:11:10.720 --> 0:11:13.320 I'm at like a seven to ten now, and so 0:11:13.400 --> 0:11:14.680 I'm sure by the end of the year I'll be 0:11:14.679 --> 0:11:16.440 back in eight hundreds. Because girl, you are gonna hold 0:11:16.440 --> 0:11:18.840 me down. But I say all that to say trying 0:11:18.920 --> 0:11:22.120 not to stress so much. And I wonder CC did 0:11:22.160 --> 0:11:25.240 you pay? Did you call the gas company or did 0:11:25.240 --> 0:11:30.640 you pay the credit tours directly? Because sometimes just so 0:11:30.679 --> 0:11:32.959 you know, in the future, you know, you might be 0:11:33.040 --> 0:11:35.040 able to reach out to the original company that you 0:11:35.120 --> 0:11:37.840 owe to see if if I make this payment, can 0:11:37.880 --> 0:11:41.200 they kind of like pull back reporting that you were late. 0:11:41.200 --> 0:11:42.880 So that's just something to consider too. 0:11:43.920 --> 0:11:47.360 This exact thing happened to me. It's after college when 0:11:47.360 --> 0:11:50.120 I left. I graduated college and my roommates moved out 0:11:50.200 --> 0:11:53.120 and I stayed for an extra month that summer because 0:11:53.160 --> 0:11:55.160 I was saving up to travel and anyway, I got 0:11:55.200 --> 0:11:58.800 stuck with this this I forget which utility it was, 0:11:58.880 --> 0:12:01.840 but same situation, like I moved out and then I 0:12:01.840 --> 0:12:04.240 didn't realize it was still being charged and it was 0:12:04.280 --> 0:12:06.520 like several months, so it was it actually was a 0:12:06.600 --> 0:12:08.760 collections agency at that point, and I was like, oh shit. 0:12:09.920 --> 0:12:12.240 But I wonder too, because it was only a month late. 0:12:12.400 --> 0:12:18.120 Sometimes sometimes businesses have or even utilities or like other agencies, 0:12:18.600 --> 0:12:23.600 municipal agencies will have internal collections teams, and they can 0:12:23.600 --> 0:12:26.679 make it seem like it's some big, bad, scary deck 0:12:26.679 --> 0:12:29.480 collectors from the street, but it could just be, you know, 0:12:29.559 --> 0:12:31.960 someone from their company who wants to scare you enough 0:12:32.000 --> 0:12:34.000 to get you to just make your payment so I 0:12:34.040 --> 0:12:36.360 would get clear on that, you know. And this happens 0:12:36.400 --> 0:12:38.400 to me with doctor's bills so. 0:12:38.440 --> 0:12:42.440 Bad they're notorious. It's a collection a girl. It's down 0:12:42.400 --> 0:12:44.040 the hall. It is Barbara down the hall. 0:12:44.120 --> 0:12:46.760 It's Barbara from downstairs with her thirty dollars copay and 0:12:46.800 --> 0:12:49.200 I'm like, really, Barbara, like why don't I'm like so 0:12:49.320 --> 0:12:52.040 much wasted mail, so many notices about this copey, and 0:12:52.280 --> 0:12:54.160 it is so hard to keep track of which ones 0:12:54.160 --> 0:12:57.920 you paid and didn't pay anyway, So that happens to me. 0:12:58.000 --> 0:13:00.440 It has several times with the doctors bills, and at 0:13:00.480 --> 0:13:02.720 that point, I'm like, listen, I'm gonna call the office directly, 0:13:02.760 --> 0:13:05.560 like Tiffany said, and make a payment and then they'll 0:13:05.559 --> 0:13:07.680 get off your back. But you know, even if it 0:13:07.720 --> 0:13:10.440 did ding your credit score, just like Tiffany said, it 0:13:10.440 --> 0:13:13.080 will bounce back with other good behavior. And it's another 0:13:13.120 --> 0:13:16.720 good reminder to just if that happens, don't ignore it, 0:13:16.880 --> 0:13:20.960 just quickly call because you may have prevented it from 0:13:21.440 --> 0:13:23.800 you know, if it's not how many days delinquent. I 0:13:23.800 --> 0:13:26.559 feel like after forty five days delinquent, sixty days is 0:13:26.600 --> 0:13:30.960 when creditors will report it, you know. But like your 0:13:31.000 --> 0:13:34.199 first cause, I I have not I've not not missed 0:13:34.200 --> 0:13:38.040 several credit card payments because, like I said, a little 0:13:38.080 --> 0:13:39.840 disorganized lately. 0:13:39.880 --> 0:13:40.320 I'm trying to. 0:13:40.280 --> 0:13:42.720 Get better about it, and I usually catch it really quickly, 0:13:42.840 --> 0:13:45.040 get on online chat with them and get it, you know, 0:13:45.160 --> 0:13:48.120 taken care of without having any dings to my credit score. 0:13:48.320 --> 0:13:50.760 Yeah, and honestly too, you have to know that the 0:13:50.800 --> 0:13:53.160 biggest ding is within like the first two months. That's 0:13:53.160 --> 0:13:56.120 when it's like yikes. But then it like it loses 0:13:56.200 --> 0:13:58.800 some power because your credit score is like I want 0:13:58.800 --> 0:14:01.280 you to think about, like your financial It's an average 0:14:01.320 --> 0:14:03.599 of all of your financial choices as it relates to 0:14:03.679 --> 0:14:05.920 paying back. So it sounds like you've been an eight 0:14:06.040 --> 0:14:09.520 plus plus plus plus plus plus plus student. So now 0:14:09.520 --> 0:14:12.800 you've gotten this one D. So that one D does 0:14:12.800 --> 0:14:14.920 not take a plus plus plus student down to a D. 0:14:15.360 --> 0:14:18.280 It just might take you down to a B, A 0:14:18.320 --> 0:14:21.120 low B, you know. And so but what happens is 0:14:21.240 --> 0:14:24.000 you continue to pay on time and in full, and 0:14:24.040 --> 0:14:26.920 you will get other a's to offset this one D 0:14:27.200 --> 0:14:29.240 and before you know it, you will be back in 0:14:29.320 --> 0:14:31.560 a's again. Like I'm already like girl, you know, they 0:14:31.560 --> 0:14:33.200 had me down and C were not we're not fit 0:14:33.280 --> 0:14:36.480 for CCC. So now I'm in a B minus. I'll 0:14:36.480 --> 0:14:38.080 suspect in a couple of months, i'll be a solid 0:14:38.120 --> 0:14:40.520 B and I'll be back in a in fighting form 0:14:40.800 --> 0:14:43.640 not barring any money anyway. So yeah, So I mean 0:14:43.680 --> 0:14:45.680 that's for anybody who like stresses, Like if you're not 0:14:46.120 --> 0:14:49.800 actually borring money, then I wouldn't stress too much. But 0:14:49.880 --> 0:14:51.640 you do want to always, like you know, with your credit, 0:14:51.760 --> 0:14:54.000 you do want to you know, especially if you're young, 0:14:54.240 --> 0:14:57.720 that you have your credit gearing and ready to go ideally. 0:14:57.760 --> 0:15:01.200 Yes, ma'am. All right, CC thank you so much for 0:15:01.240 --> 0:15:04.240 your question and for your beautiful and kind words. Let's 0:15:04.280 --> 0:15:06.400 take a quick break and we'll be right back with 0:15:06.480 --> 0:15:09.080 another question from a listener who has a question about 0:15:09.160 --> 0:15:09.880 her four to one. 0:15:09.840 --> 0:15:11.320 K O no mass. 0:15:14.560 --> 0:15:17.080 All right, y'all, we are back our third and final 0:15:17.160 --> 0:15:19.360 question of the show. First of all, it's so nice 0:15:19.360 --> 0:15:21.240 to have you back, Tiffany. This is our first B 0:15:21.400 --> 0:15:23.840 a Q and a back together. I don't got to 0:15:23.920 --> 0:15:25.720 just talk to myself for half an hour straight. 0:15:27.360 --> 0:15:28.680 You know, I was thinking to sit back together. I 0:15:28.720 --> 0:15:31.640 was like, look at us black together, back together. 0:15:32.800 --> 0:15:34.640 It's so nice to have someone to bounce off of. 0:15:34.800 --> 0:15:39.040 All right, This question comes from listener Stacy. Stacy says, 0:15:39.120 --> 0:15:41.800 I'm over fifty and I've made pretty decent money most 0:15:41.800 --> 0:15:44.120 of my life, but I've never saved in a four 0:15:44.120 --> 0:15:46.600 to one K from my jobs. I started a new 0:15:46.640 --> 0:15:49.640 career in October twenty twenty one, and I'm now contributing 0:15:49.640 --> 0:15:51.720 to my four to one k. What is the best 0:15:51.800 --> 0:15:54.800 bet forever being able to retire? 0:15:56.080 --> 0:16:01.520 Stacy, First of all, congratulations with your new career twenty twenty. Okay, 0:16:03.520 --> 0:16:07.880 so stays, your best bet is going to be to 0:16:08.200 --> 0:16:12.400 max out your four oh one K. So, so I 0:16:12.440 --> 0:16:14.400 don't okay, you're starting a career, you're contributing out good. 0:16:14.400 --> 0:16:18.480 I'm glad you're contributing one. Normally, you know, man and 0:16:18.520 --> 0:16:21.880 I talk about like contributing to at least whatever your 0:16:21.920 --> 0:16:25.040 company's matching. But because you're like, you know, you're starting 0:16:25.080 --> 0:16:27.360 a little later, that's okay. I would want you to 0:16:27.360 --> 0:16:30.120 contribute the max, which is what is the Max Mandra, 0:16:30.200 --> 0:16:32.280 what is it twenty thousand, five hundred if. 0:16:32.200 --> 0:16:34.800 You can't thousand, five hundred dollars for twenty twenty two. 0:16:36.680 --> 0:16:40.920 But the government knows we stay late. They're like, SIS, 0:16:40.960 --> 0:16:42.720 you stay late. So you know what they have. They 0:16:42.800 --> 0:16:46.400 have something called catch up contributions. What that means is 0:16:46.440 --> 0:16:49.200 that if you are fifty year older, which you are, SIS, 0:16:49.960 --> 0:16:53.000 they let you put an additional amount of money in 0:16:53.000 --> 0:16:55.240 because they like, we know y'all be late talking about you. Ready, 0:16:55.280 --> 0:16:57.720 you just got out shower, I'm headed your way. Meanwhile, 0:16:57.880 --> 0:17:00.320 you haven't even earned your clothes yet. They know. So 0:17:00.400 --> 0:17:03.240 for twenty twenty two, you can put an additional sixty 0:17:03.240 --> 0:17:07.679 five hundred into your four to one k so you 0:17:07.720 --> 0:17:10.840 can catch up on some contributions. And so you can 0:17:10.880 --> 0:17:13.280 do that from now until you know, because what is 0:17:13.280 --> 0:17:15.320 your time and age now? Manty sixty four? Sixty five? 0:17:16.119 --> 0:17:18.600 Oh lord, I don't remember six. You can start doing 0:17:18.640 --> 0:17:21.720 withdrawals at sixty two, but full retirement age, like where 0:17:21.720 --> 0:17:24.600 do you get your full Social Security benefit is sixty seven? 0:17:24.640 --> 0:17:26.720 I believe sixty seven. So I mean it's up to 0:17:26.720 --> 0:17:28.439 you when you obviously when you want to stop working. 0:17:28.480 --> 0:17:31.480 But if you are working, you know, you can continue 0:17:31.520 --> 0:17:35.000 to do catch up contributions now until you stop working. 0:17:35.920 --> 0:17:38.280 So just like keep that in mind that like, and 0:17:38.320 --> 0:17:40.400 here's the thing, it's better that you've started than you've 0:17:40.440 --> 0:17:43.720 not started. Try not to beat your self up. The 0:17:43.720 --> 0:17:45.720 fact that you've asked a question is great. But I 0:17:45.760 --> 0:17:50.640 would if you can lower your monthly expenses, max out 0:17:50.640 --> 0:17:54.840 your phone, okay, and max out catch up contributions if possible. 0:17:55.920 --> 0:17:57.840 Yeah, And I mean you're exactly in the same boat 0:17:57.840 --> 0:18:00.320 that my dad is in right now, blow up my 0:18:00.359 --> 0:18:03.760 phone like on Vanguard's customer support. My goodness, Honestly, I'm 0:18:03.800 --> 0:18:05.639 about to take my dad to like Edward Jones or 0:18:05.640 --> 0:18:06.240 something and be. 0:18:06.240 --> 0:18:08.479 Like, take this man, just do it. 0:18:09.720 --> 0:18:12.720 No, But you know, getting an outsider's perspective to help 0:18:12.760 --> 0:18:14.800 you can also, and I would see, you know, sometimes 0:18:14.880 --> 0:18:17.200 your company itself, your for one K plan, may have 0:18:18.080 --> 0:18:20.600 experts who you can contact to get you started. So 0:18:20.680 --> 0:18:22.800 I would not turn down that kind of help. I 0:18:22.840 --> 0:18:26.080 was doing a like a talk at Synchrony. Actually if 0:18:26.080 --> 0:18:29.360 this is a big, you know, financial company, and it 0:18:29.400 --> 0:18:32.359 was all women, like hundreds of women, and the number 0:18:32.359 --> 0:18:35.120 of women who hadn't even like gone to their benefits 0:18:35.119 --> 0:18:38.960 department and enrolled is really staggering. And then after the talk, 0:18:39.040 --> 0:18:41.119 a lot of them were going and I'm like, listen, 0:18:41.119 --> 0:18:43.959 you're the emails usually like benefits at whatever your companies 0:18:44.040 --> 0:18:46.720 name dot com and like make those people do their jobs, 0:18:47.160 --> 0:18:49.080 like help you get started and on the right path. 0:18:49.200 --> 0:18:51.920 So that's that's all I would say. And also if 0:18:51.960 --> 0:18:54.280 you were wondering, I showed my dad how to do 0:18:54.320 --> 0:18:57.760 this too. SSA dot gov is a Social Security Administrative 0:18:58.160 --> 0:19:02.040 Administration's website and you can actually see what your expected 0:19:02.040 --> 0:19:04.959 benefit will be. So if you log on, you can 0:19:05.000 --> 0:19:08.240 see your your statement, your Social Security benefit statement, which 0:19:08.240 --> 0:19:12.080 will pretty much have your entire history of earnings and 0:19:12.119 --> 0:19:14.680 also give you an estimate of how much you can 0:19:14.680 --> 0:19:17.119 expect your benefit to be depending on what age you 0:19:17.320 --> 0:19:20.880 start collecting, so it's like sixty two, sixty five, sixty seven. 0:19:20.920 --> 0:19:22.560