WEBVTT - Your Credit Score Will Jump Like Jordan

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<v Speaker 1>It's time for the b a q a A the

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<v Speaker 1>b a q A which is the Big Q eight

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<v Speaker 1>with Man dead to be a Q with Tiffin aid

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<v Speaker 1>to b a q a A. Hey manager, Oh Many,

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<v Speaker 1>your hair is like really long, you know, it just

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<v Speaker 1>keeps growing. Many has like well I used to call it,

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<v Speaker 1>like back in the day Rudy Huxtable hair because remember

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<v Speaker 1>Rudy had so much hair where it's.

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<v Speaker 2>Like giving like you know, the glamour shots at the mall,

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<v Speaker 2>like I'm almost just put like a nice it wasn't

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<v Speaker 2>attention hazy sen Yes, I'll take it over. What that

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<v Speaker 2>might look like?

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<v Speaker 1>Man is giving glamor hair? All right? Some as you know,

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<v Speaker 1>Brianna bish in question the answers. You have questions, we

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<v Speaker 1>have some answer and so sometimes we talk about business.

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<v Speaker 1>Sometimes we talk about finance. Sometimes you talk about your

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<v Speaker 1>own personal life, whatever it is. You can ask us questions.

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<v Speaker 1>You can go to be a podcast on IG Sliding

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<v Speaker 1>to the DMS. You can email us at brand Ambition

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<v Speaker 1>at gmail dot com. This is a Barandavision podcast Bandavision

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<v Speaker 1>podcast at gmail dot com. But just remember that we're

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<v Speaker 1>not your We're not your brother, not your mother, not

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<v Speaker 1>your sister, but your friend. Anyway, We're not your financial advisor,

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<v Speaker 1>your doctor, your attorney. So you are going to listen

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<v Speaker 1>hardcore to people that you pay and take what we

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<v Speaker 1>say with the tiniest, tiniest grain of salt, which is

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<v Speaker 1>two smart brown girls with something to say. This week,

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<v Speaker 1>we have two credit questions, so you want to you

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<v Speaker 1>wanna store Meandra.

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<v Speaker 2>Hello, ladies, my name is Nicole, and I wanted to

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<v Speaker 2>know ways I can raise my credit score. It's been

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<v Speaker 2>at a complete standstill for some time now. According to

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<v Speaker 2>credit Karma, I have a score of seven fifty four

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<v Speaker 2>with TransUnion and seven forty six with Equifax, and I've

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<v Speaker 2>been trying to increase my score as it's been a

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<v Speaker 2>personal goal of mine for a while. Now. I have

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<v Speaker 2>three credit cards, which two of them I don't use.

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<v Speaker 2>In the last one, which was which has the longest

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<v Speaker 2>line of credit, I use four small things like subscriptions.

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<v Speaker 2>I have no debt, make all my payments on time,

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<v Speaker 2>I have a low utilization rate, but I'm still saying

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<v Speaker 2>no change. I do notice on some sites that my

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<v Speaker 2>credit mix is poor, So it does that mean I

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<v Speaker 2>need to apply for a new credit card or take

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<v Speaker 2>out a personal loan. I hope this message makes it

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<v Speaker 2>on the podcast. I listen to BA all the time.

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<v Speaker 2>Nicole question, Nikki, Tricky Nikki, I'm just no Nikki.

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<v Speaker 1>WHOA one? I will say, congratulations girl, because seven forty

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<v Speaker 1>seven fifty is is the beginning of perfect credit. Meaning

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<v Speaker 1>like whatever you whatever interest rate you're gonna get with

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<v Speaker 1>eight hundred, you would likely get it with seven fifty.

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<v Speaker 1>So I mean, if it's a personal goal, it's a

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<v Speaker 1>personal goal. So I'm not negating that. You to know

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<v Speaker 1>that if it's because oh I want to get a

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<v Speaker 1>really great interest rate because I'm buying a house. So girl,

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<v Speaker 1>you're there. Congratulations. You know the confetti is falling from

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<v Speaker 1>the ceiling already, So I just want to rest assured that.

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<v Speaker 1>So that's one. Two. You said that you have two

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<v Speaker 1>cards that you never use. Girl, that's a misopportunity. You're

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<v Speaker 1>gonna do what I call my jump like a Jordan

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<v Speaker 1>and method. So that is when you said you had

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<v Speaker 1>some subscriptions, spread those subscriptions over the three cards. So

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<v Speaker 1>let's just say Netflix, Spotify, Gym membership. Each one of

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<v Speaker 1>those cards will get one subscription and then you're going

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<v Speaker 1>to pay it off every month. And full. So you're

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<v Speaker 1>going to have the subscription charge the card and then

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<v Speaker 1>you're going to find out your oh is it called

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<v Speaker 1>closing date, Yeah, reporting date, closing dates state no state

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<v Speaker 1>be a statement date, right, So that is the day

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<v Speaker 1>that basically they tell the credit bureas, hey, Nikkia use

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<v Speaker 1>her cards, because you want them to acknowledge you use

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<v Speaker 1>the car and acknowledge you paid it off. So whatever.

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<v Speaker 1>Let's just say the due date is the thirtieth, but

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<v Speaker 1>the statement date is the twenty fourth, so you want

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<v Speaker 1>to find out whatever. The statement date is the date

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<v Speaker 1>that they report card usage, and you want to pay

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<v Speaker 1>it off after that because you want it to be reported.

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<v Speaker 1>This part people get confused with all the time. So

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<v Speaker 1>it's like, don't be late, so pay it off by

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<v Speaker 1>the due date, but paid off after the statement date

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<v Speaker 1>when they've already told you used the card, because you

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<v Speaker 1>want a record of your usage. And if you do

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<v Speaker 1>that automatically, it just looks like your card getting charged,

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<v Speaker 1>your guard getting paid off from whatever checking account. You

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<v Speaker 1>can have it automatically paid off every single month, and

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<v Speaker 1>this will allow your credit score to jump like Jordan

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<v Speaker 1>remember back in the day. Or you can even see

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<v Speaker 1>it on his Sneaker's the jump Man where he's literally

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<v Speaker 1>jumping like Jordan used to get. That's what they call

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<v Speaker 1>him Air Jordan because he used to get so much tight.

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<v Speaker 1>And you're going to see your card score jump because

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<v Speaker 1>here's the thing you started up. Friends. Whenever I say

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<v Speaker 1>here's the thing, I always think about the song. Yeah, yeah,

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<v Speaker 1>what song is that? Mandy Kelly Clark? Oh, come on, manny,

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<v Speaker 1>I just want to hear sack go ahead. I just

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<v Speaker 1>want to.

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<v Speaker 2>No one wants to hear. It's a hard song to sing.

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<v Speaker 2>Haven't you seen pitch perfect? It's a hard song to sing.

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<v Speaker 1>Nobody cares about our tone. Hey, ba fan, we're gonna

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<v Speaker 1>take a quick break and we'll be right back. The

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<v Speaker 1>amount of money doesn't matter as much as paying off

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<v Speaker 1>in full. When you pay off a debt and full,

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<v Speaker 1>you pay off your house in full, credit score jumps.

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<v Speaker 1>You pay off your car in full, credit score jumps.

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<v Speaker 1>When you pay off a credit card in full, five

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<v Speaker 1>dollars five hundred five thousand, five million, credit score jumps.

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<v Speaker 1>So you can get a little jumpy jump by paying

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<v Speaker 1>off small amounts on your credit card every single month.

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<v Speaker 1>Those two you're not using will certainly help. And the

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<v Speaker 1>component about credit mix, So yes, your credit mix. I

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<v Speaker 1>think credit mix is fifteen percent of your score. So

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<v Speaker 1>thirty percent of your score is credit history, No, thirty

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<v Speaker 1>five percent is credit history, thirty percent is usage, which

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<v Speaker 1>you have down fifteen percent. I believe it's a credit mix. Now,

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<v Speaker 1>you don't have to go out and get more of

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<v Speaker 1>a credit mix. But if you insist, I wouldn't just

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<v Speaker 1>go borrow money willy nilly. I would go to a

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<v Speaker 1>credit union and ask if they have something called a

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<v Speaker 1>credit builder loan. Right. So a credit builder loan is

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<v Speaker 1>when they say take the smallest loan now possible. They're

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<v Speaker 1>not actually going to give you the money. Let's just

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<v Speaker 1>say it's five hundred dollars. They'll the credit union will say, hey, Nick,

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<v Speaker 1>here is your five hundred dollars, but we're going to

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<v Speaker 1>keep it in your in a money market or safe's

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<v Speaker 1>account for you. So it's not really borring it. It's

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<v Speaker 1>just a fake loan, right. And then you're going to

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<v Speaker 1>pay off that loan over the year, so like whatever

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<v Speaker 1>thirty forty fifty bucks a month until the loan is

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<v Speaker 1>paid off quote unquote, and they're going to give your

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<v Speaker 1>money back because they never actually gave you the loan

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<v Speaker 1>plus a little interest. And so because the two components

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<v Speaker 1>of the ways you can borrow is revolving debt, which

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<v Speaker 1>is credit card debt, which you have, but it's also

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<v Speaker 1>installment loans, which you don't have because you don't have

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<v Speaker 1>any debt. And so that is a way to kind

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<v Speaker 1>of get a fake installment loan that doesn't put you

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<v Speaker 1>in financial peril is to get a credit builder loan,

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<v Speaker 1>ideally from a credit union. If you do those two

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<v Speaker 1>things that I suggested, I'm sure maybe has some suggestions

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<v Speaker 1>too that can really help.

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<v Speaker 2>My only suggestion is just to be like, chill out

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<v Speaker 2>and enjoy a really high credit score. You're so close

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<v Speaker 2>to like I think it's seven sixty last I look,

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<v Speaker 2>the credit scoring models change a lot, Yeah, and there's

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<v Speaker 2>so many different kinds of scores. And even if you

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<v Speaker 2>get the perfect score on credit karma with these two agencies,

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<v Speaker 2>let's say you go to apply for a mortgage or

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<v Speaker 2>an auto loan. They have their own score. They're going

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<v Speaker 2>to look at it, and you may not have a

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<v Speaker 2>perfect score there. So it's kind of like for me,

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<v Speaker 2>it's you know, hey, we all have our kinks and

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<v Speaker 2>some people are really you know, like my husband loves

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<v Speaker 2>spending a lot of time on the particular kind of

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<v Speaker 2>like car wash like stuff, and it acceens accessories and

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<v Speaker 2>how to get the you know, make sure you use

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<v Speaker 2>like the right shampoo on the tire and don't mix

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<v Speaker 2>the brushes that you use, all the fine details, you

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<v Speaker 2>know what I mean. And like for me, I'm like

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<v Speaker 2>car washes were invented for a reason, you know. But

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<v Speaker 2>like for you, I think that your credit score could

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<v Speaker 2>be your room and that's okay, and you can obsess

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<v Speaker 2>over it all you want. I however, don't identify with

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<v Speaker 2>that because I'm like, hey, seven sixty, according to a

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<v Speaker 2>lot of reports, is like the way to get the

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<v Speaker 2>best rates. And once I get the best Once I

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<v Speaker 2>get the best rates, the credit score to me just

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<v Speaker 2>kind of feels not as important. But this is your room, Nicole,

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<v Speaker 2>and you deserve a room, Okay.

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<v Speaker 1>So good luck.

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<v Speaker 2>I want to hear. I'm excited to hear if you

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<v Speaker 2>jumped like Jordan, and what you end up doing to

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<v Speaker 2>like get your score up higher?

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<v Speaker 1>Yeah kind of yeah, I mean I.

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<v Speaker 2>Wasn't trying to be condescending.

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<v Speaker 1>No, no, because I mean truthfully, you're right that her

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<v Speaker 1>score is more than high enough to get her whatever

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<v Speaker 1>kind of like Loana inches whatever. I mean, borring, how

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<v Speaker 1>what her income is. It's not just your score they

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<v Speaker 1>look at when they're lending. But your score is not

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<v Speaker 1>going to hinder you basically where you are now. If

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<v Speaker 1>it's a goal that you have, great, because girl, you

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<v Speaker 1>are like you out here, power powering through with your

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<v Speaker 1>debt free self y. So you pay your payments on

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<v Speaker 1>top I get it. Nick. It's like, let me tell

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<v Speaker 1>you something. What we do over here is excellence.

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<v Speaker 2>This is what we hope for being listen long enough.

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<v Speaker 2>All rising tides raise all boats. What a rising tide?

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<v Speaker 1>Wait? Ships? No, maybe, David, I hadn't. A rising tide

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<v Speaker 1>lifts all boats. A rising tide lifts off boats. Nady

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<v Speaker 1>am I rubbing off fight you? You you selling an

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<v Speaker 1>old African man.

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<v Speaker 2>Now I'm so tying.

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<v Speaker 1>Top six the ship like, oh my gosh, oh wait,

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<v Speaker 1>before we had to break. I said this in that

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<v Speaker 1>I don't want to forget it. I said this in

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<v Speaker 1>so prior that one of my so Nick's goal is

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<v Speaker 1>to get her credit score, you know, to basically perfect,

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<v Speaker 1>even though she's basically perfect now, and I think it's

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<v Speaker 1>important to set goals beyond just the new year, and

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<v Speaker 1>so I have shared that my major goal this year

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<v Speaker 1>is I'm going to learn how to do the fundamentals

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<v Speaker 1>of investing. Like I have invested in business, I'm invested

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<v Speaker 1>in real estate. I'm talking in the market. Do I

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<v Speaker 1>have money in the market, Yes, but I feel like

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<v Speaker 1>I don't have a good grasp of the fundamentals. And

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<v Speaker 1>so I've committed that that is what I'm going to

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<v Speaker 1>focus on this year. Because I told myself it was

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<v Speaker 1>too hard or I didn't have time, or I didn't

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<v Speaker 1>have the knowledge, I found myself a coach. I'm feeling

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<v Speaker 1>good about it, and I am. I just don't want

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<v Speaker 1>to feel like I don't. Things are not in my

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<v Speaker 1>control and Wielhouse and so as I do that, I

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<v Speaker 1>realize that one of the ways that I that helps

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<v Speaker 1>me stay and stick on track is one saying it

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<v Speaker 1>allow so so you guys can help me hold me

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<v Speaker 1>accountable and check in, but also too taking you on

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<v Speaker 1>my journey if you're wanting to invest too. I'm on

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<v Speaker 1>this journey and I'm trying to figure out why haven't

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<v Speaker 1>so many of us started. I asked a number of

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<v Speaker 1>my friends, doctor's attorneys, whatever, and it's like, there are

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<v Speaker 1>some reasons why. So I'm like, what if I can

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<v Speaker 1>find tools and resources that will help you banish those reasons?

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<v Speaker 1>And so if you want to help me figure out

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<v Speaker 1>why you haven't started, go to you should invest dot

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<v Speaker 1>Com thirty second quiz. It is going to help me

0:11:47.760 --> 0:11:50.959
<v Speaker 1>identify why you haven't started to invest. We'll help you

0:11:51.000 --> 0:11:53.360
<v Speaker 1>identify why you haven't started to invest, but also to

0:11:53.880 --> 0:11:56.640
<v Speaker 1>help me to send tools and resources to you that

0:11:56.720 --> 0:11:59.400
<v Speaker 1>will be a fit based upon where you are. So

0:11:59.520 --> 0:12:02.080
<v Speaker 1>you should invest dot Com. The link will be in

0:12:02.120 --> 0:12:05.200
<v Speaker 1>the show notes. Yeah, because this is my year, you know,

0:12:05.240 --> 0:12:07.640
<v Speaker 1>if you're an invest in girly. Honestly, if you're investing Girly,

0:12:07.679 --> 0:12:10.160
<v Speaker 1>signed to my dag on DMS because like, I don't know,

0:12:10.200 --> 0:12:12.120
<v Speaker 1>I feel like I want to create like an accountability group,

0:12:12.160 --> 0:12:14.520
<v Speaker 1>Like what does that word mean? What about when this happens?

0:12:14.600 --> 0:12:16.679
<v Speaker 1>What are points? What are you know? Like I really

0:12:16.720 --> 0:12:19.120
<v Speaker 1>wanna I really want to buckle down. This is the year.

0:12:19.120 --> 0:12:22.320
<v Speaker 1>I'm like enough already, Tiffany, So you should invest dot

0:12:22.320 --> 0:12:25.160
<v Speaker 1>com because even if I do do like a group

0:12:25.200 --> 0:12:27.520
<v Speaker 1>together whatever, I want to be able to identify the

0:12:27.559 --> 0:12:31.400
<v Speaker 1>girlies who also want to learn to All right, so

0:12:31.440 --> 0:12:33.640
<v Speaker 1>we're gonna take a break and we'll be back and

0:12:33.840 --> 0:12:37.319
<v Speaker 1>black and I never honey.

0:12:40.240 --> 0:12:44.040
<v Speaker 2>Speak for yourself because I'm in my winter pail, so

0:12:44.080 --> 0:12:44.920
<v Speaker 2>this means we're back.

0:12:45.760 --> 0:12:51.000
<v Speaker 1>We come and brown issue. This is my winter pail

0:12:51.040 --> 0:12:51.400
<v Speaker 1>as well.

0:12:52.760 --> 0:12:54.040
<v Speaker 2>We're coming all different shapes.

0:12:56.160 --> 0:13:00.800
<v Speaker 1>Oh my gosh. All right, what's our next question from Shalise? Yes,

0:13:00.880 --> 0:13:02.480
<v Speaker 1>I'm gonna read it, so uk so you can dive

0:13:02.520 --> 0:13:08.679
<v Speaker 1>deep for Schalise. So Schali says question for b a QA,

0:13:09.120 --> 0:13:11.760
<v Speaker 1>long time listener and finally asking a question, we love

0:13:11.800 --> 0:13:15.600
<v Speaker 1>that for you. I recently consolidated my outstanding credit card

0:13:15.679 --> 0:13:19.640
<v Speaker 1>balances into a consolidated personal lung. I did the math

0:13:19.760 --> 0:13:22.440
<v Speaker 1>and it came out better for me to consolidate and

0:13:22.520 --> 0:13:25.400
<v Speaker 1>have one payment to pay off in the next three years,

0:13:25.400 --> 0:13:28.600
<v Speaker 1>but I want to pay it off sooner. Yes, girl Excellence,

0:13:29.480 --> 0:13:32.960
<v Speaker 1>I have paid off the cards, but I'm wondering if

0:13:33.000 --> 0:13:35.840
<v Speaker 1>I should go ahead and close those cards. How would

0:13:35.840 --> 0:13:38.840
<v Speaker 1>this affect my credit score? Thanks Salise?

0:13:39.640 --> 0:13:45.360
<v Speaker 2>What LISPC interesting? Do they still have the credit card

0:13:45.440 --> 0:13:48.600
<v Speaker 2>credit score simulator? Do hickey on credit Karma?

0:13:49.200 --> 0:13:49.640
<v Speaker 1>I don't know.

0:13:50.320 --> 0:13:52.640
<v Speaker 2>Because that was one of my favorite features to use

0:13:52.720 --> 0:13:55.880
<v Speaker 2>back in the day on credit. Let me just google

0:13:56.040 --> 0:13:59.959
<v Speaker 2>that real quick, because the way that I feel doesn't

0:14:00.360 --> 0:14:02.800
<v Speaker 2>Don't you feel like you've aged when you hear that

0:14:03.040 --> 0:14:06.200
<v Speaker 2>apps and services that you feel like you came up

0:14:06.240 --> 0:14:09.080
<v Speaker 2>with are now defunct. Like when they said Mint was

0:14:09.120 --> 0:14:12.920
<v Speaker 2>going away, I was like, that's the beginning of my

0:14:13.000 --> 0:14:16.120
<v Speaker 2>career in personal finance, Mint with everything, And I'm like,

0:14:16.200 --> 0:14:22.120
<v Speaker 2>oh shit, I've outlived Mint. Anyway, Credit Karma credit score

0:14:22.400 --> 0:14:30.760
<v Speaker 2>simulated later. But the reason I'm suggesting this, yes, they

0:14:30.880 --> 0:14:34.440
<v Speaker 2>do because it can like yeah, so if you have

0:14:34.480 --> 0:14:37.480
<v Speaker 2>a credit Karma account, they're free. You can go in there.

0:14:37.640 --> 0:14:39.000
<v Speaker 2>Just know they're going to try to sell you a

0:14:39.040 --> 0:14:41.920
<v Speaker 2>bunch of credit cards. Okay, just ignore that stuff. But

0:14:42.520 --> 0:14:45.520
<v Speaker 2>you can see what will happen for any situation, like

0:14:45.560 --> 0:14:47.200
<v Speaker 2>what if I get denied for this credit, what if

0:14:47.240 --> 0:14:49.000
<v Speaker 2>I apply for a new card, what if I close

0:14:49.080 --> 0:14:52.600
<v Speaker 2>my card? What if I increase my balances? So that's

0:14:52.600 --> 0:14:54.720
<v Speaker 2>a way to kind of like play around. There's no

0:14:54.840 --> 0:14:59.400
<v Speaker 2>exact way to say, like for sure how much it

0:14:59.400 --> 0:15:02.520
<v Speaker 2>could impact your credit, but in general, when you close

0:15:02.560 --> 0:15:04.840
<v Speaker 2>credit cards, it does ding you in a couple of ways.

0:15:04.880 --> 0:15:07.480
<v Speaker 2>The one thing is that if they're older credit cards,

0:15:07.520 --> 0:15:11.920
<v Speaker 2>then it may decrease your age of your credit which

0:15:11.960 --> 0:15:14.200
<v Speaker 2>one of the factors that goes into your credit score

0:15:14.280 --> 0:15:17.000
<v Speaker 2>is how long you have used credit. So if you

0:15:17.040 --> 0:15:20.960
<v Speaker 2>close your oldest accounts or one year older accounts, that

0:15:21.000 --> 0:15:24.440
<v Speaker 2>could decrease your average age of your credit cards. So

0:15:24.480 --> 0:15:26.840
<v Speaker 2>that's one way. It's not the biggest part of your score,

0:15:26.880 --> 0:15:29.120
<v Speaker 2>but it could ding it. And the other way is

0:15:29.160 --> 0:15:33.440
<v Speaker 2>that your available balance your utilization rate rather like, which

0:15:33.480 --> 0:15:36.400
<v Speaker 2>is how much you're using on your balances on your

0:15:36.400 --> 0:15:40.160
<v Speaker 2>accounts versus how much you could be using. That will

0:15:40.160 --> 0:15:45.040
<v Speaker 2>go down because your total available credit limit on those

0:15:45.080 --> 0:15:48.840
<v Speaker 2>two cards would no longer be a factor, right, so

0:15:49.320 --> 0:15:52.640
<v Speaker 2>it could be Yeah, so that could ding you as well.

0:15:52.760 --> 0:15:58.840
<v Speaker 2>Utilization rate is the next best important, next most important

0:15:58.840 --> 0:16:02.320
<v Speaker 2>thing after on time payment history, right to correct me.

0:16:02.400 --> 0:16:04.120
<v Speaker 1>Yeah, it's thirty percent of your score.

0:16:04.840 --> 0:16:07.680
<v Speaker 2>Yeah, so that that could be the way that it

0:16:07.720 --> 0:16:12.960
<v Speaker 2>could ding you ultimately, though, if you're like, it's really

0:16:13.040 --> 0:16:15.960
<v Speaker 2>up to you, sometimes it's worth the hit. If having

0:16:16.000 --> 0:16:18.840
<v Speaker 2>those cards, having the accounts is too tempting, you're worried

0:16:18.840 --> 0:16:21.560
<v Speaker 2>about racking up more debt, you know, it may be

0:16:21.560 --> 0:16:23.760
<v Speaker 2>better for you to close them down and deal with

0:16:23.800 --> 0:16:26.440
<v Speaker 2>the little ding to your score. It also depends like

0:16:26.720 --> 0:16:30.480
<v Speaker 2>are you actively wanting to apply for a mortgage or

0:16:30.520 --> 0:16:33.000
<v Speaker 2>any other kind of loan. Does your credit score really

0:16:33.040 --> 0:16:35.560
<v Speaker 2>matter in the next six to twelve months. If it does,

0:16:35.600 --> 0:16:37.840
<v Speaker 2>maybe you want to leave it. If it doesn't, then

0:16:37.840 --> 0:16:41.240
<v Speaker 2>you have more wiggle room to bounce back, you know.

0:16:42.000 --> 0:16:44.040
<v Speaker 2>So that's what I would say.

0:16:44.920 --> 0:16:47.640
<v Speaker 1>What about you, Tiff, No, I was gonna say, like, honestly,

0:16:47.720 --> 0:16:50.160
<v Speaker 1>you said all the things that like, yeah, then it might.

0:16:50.800 --> 0:16:54.480
<v Speaker 1>It might affect your utilization, which is how much could

0:16:54.560 --> 0:16:58.280
<v Speaker 1>you borrow versus how much you are actually borrowing, So

0:16:58.360 --> 0:17:01.000
<v Speaker 1>the could you borrow a part could go down, you know,

0:17:01.960 --> 0:17:04.919
<v Speaker 1>and so that can significantly affect your score. And so

0:17:05.960 --> 0:17:08.280
<v Speaker 1>you really don't want to have a utilization that's over

0:17:08.440 --> 0:17:11.959
<v Speaker 1>thirty percent, like Mandy mentioned. So let's just say with

0:17:12.080 --> 0:17:15.560
<v Speaker 1>all your cards open, it's you have one thousand dollars

0:17:15.640 --> 0:17:18.280
<v Speaker 1>of I could borrow one thousand dollars. And let's just

0:17:18.280 --> 0:17:22.920
<v Speaker 1>say currently you have you know, what you currently owe

0:17:23.400 --> 0:17:26.359
<v Speaker 1>is three hundred, So three hundred is thirty percent of

0:17:26.359 --> 0:17:28.560
<v Speaker 1>one thousand dollars. Right now, you're right at the cusp

0:17:28.560 --> 0:17:31.359
<v Speaker 1>of utilization. But let's just say you close half those

0:17:31.400 --> 0:17:35.719
<v Speaker 1>cards and now you're down to five hundred dollars. You know,

0:17:35.800 --> 0:17:37.600
<v Speaker 1>that's how much you could borrow. Because those other cards

0:17:37.600 --> 0:17:39.959
<v Speaker 1>are gone, you can't borrow on those cards anymore. So

0:17:40.000 --> 0:17:42.960
<v Speaker 1>now you are from thirty percent utilization to sixty percent.

0:17:43.040 --> 0:17:45.280
<v Speaker 1>That's way too high and you will bring down your score.

0:17:45.640 --> 0:17:47.120
<v Speaker 1>So I would do a little bit of the math

0:17:47.160 --> 0:17:48.800
<v Speaker 1>if i'm you know, like you could do it on

0:17:48.880 --> 0:17:51.320
<v Speaker 1>credit card at the simulator or your own math to say,

0:17:51.520 --> 0:17:54.240
<v Speaker 1>if I close this one, score how much could I borrow?

0:17:54.280 --> 0:17:56.680
<v Speaker 1>How does that change versus how much I'm borrowing or

0:17:56.720 --> 0:17:59.680
<v Speaker 1>percentage of utilization am I at now? So everyone should

0:17:59.680 --> 0:18:02.000
<v Speaker 1>do that. If I close this card, what is my

0:18:02.080 --> 0:18:04.200
<v Speaker 1>utilization rate? If I close this card, what is my

0:18:04.280 --> 0:18:07.320
<v Speaker 1>utilization rate? Because ultimately, as you pay off the debt,

0:18:08.000 --> 0:18:10.280
<v Speaker 1>you can have as little could you borrow cards open

0:18:10.280 --> 0:18:13.000
<v Speaker 1>as you want because you don't owe anything. That's what

0:18:13.040 --> 0:18:14.960
<v Speaker 1>you're headed toward. But that's three years away before you're

0:18:14.960 --> 0:18:17.159
<v Speaker 1>fully like debt free from those cards. One, I just

0:18:17.240 --> 0:18:19.760
<v Speaker 1>want to say kudos to you for doing the math

0:18:20.080 --> 0:18:24.639
<v Speaker 1>consolidating it. But the number one mistake that people make

0:18:24.680 --> 0:18:27.600
<v Speaker 1>after consolidating your card can Mandy's point is they rack

0:18:27.720 --> 0:18:30.800
<v Speaker 1>up the other cards again. So if you think you're

0:18:30.840 --> 0:18:33.760
<v Speaker 1>even slightly in that regard, just close it. We will

0:18:33.760 --> 0:18:37.479
<v Speaker 1>fix utilization later. Just close those cards and focus on

0:18:37.480 --> 0:18:40.040
<v Speaker 1>that debt because will your credit card take a little

0:18:40.040 --> 0:18:41.960
<v Speaker 1>bit of a dang? But if you listen to the

0:18:42.040 --> 0:18:43.960
<v Speaker 1>question before this, you could do that jump like Jordan

0:18:44.240 --> 0:18:46.160
<v Speaker 1>with something else and pay off a card and full

0:18:46.200 --> 0:18:48.240
<v Speaker 1>every single month. Does that make sense? So you know,

0:18:48.320 --> 0:18:50.600
<v Speaker 1>if you know yourself and this too much temptation, close

0:18:50.640 --> 0:18:53.920
<v Speaker 1>those cards, take the hip, and then the next few

0:18:54.000 --> 0:18:55.920
<v Speaker 1>years you're going to be building their credit back up again.

0:18:56.040 --> 0:19:04.119
<v Speaker 1>So all right, well that is QA. Don't expect me

0:19:04.160 --> 0:19:06.439
<v Speaker 1>to remember the song next week or even next moment.

0:19:07.240 --> 0:19:12.040
<v Speaker 1>QA today that is the ba.

0:19:13.160 --> 0:19:20.240
<v Speaker 2>QA Sandy, please forget.

0:19:21.840 --> 0:19:24.879
<v Speaker 1>Don't do that, Manny see mayby trying to play me.

0:19:24.920 --> 0:19:27.280
<v Speaker 1>But then y'all be rallying in the emails of the

0:19:27.320 --> 0:19:30.880
<v Speaker 1>comments like let that girl say, I'm like, thank you'll.

0:19:31.440 --> 0:19:36.000
<v Speaker 2>That's okay, but yet I am the one, And.

0:19:36.000 --> 0:19:38.520
<v Speaker 1>Then many will say that, and then next time I saying,

0:19:38.600 --> 0:19:40.199
<v Speaker 1>Manny will have a shimmy ready, like you know, I

0:19:40.240 --> 0:19:41.840
<v Speaker 1>kind of like this, She'll be like, that is the

0:19:42.080 --> 0:19:46.320
<v Speaker 1>b QA. I know, Manny, she'd be like, you know what,

0:19:46.359 --> 0:19:48.720
<v Speaker 1>it's kind of a vibe. Let me shitty along with

0:19:48.800 --> 0:19:50.840
<v Speaker 1>the Shenani against. She loves to shiit me with my

0:19:50.840 --> 0:19:54.360
<v Speaker 1>Shenani against. I love her fool you do you want

0:19:54.359 --> 0:19:57.159
<v Speaker 1>to do like? Because I mean, we would love some reviews,

0:19:57.280 --> 0:19:58.919
<v Speaker 1>and so do you want to read a review?

0:20:00.280 --> 0:20:03.760
<v Speaker 2>This is from Miss number one, especially for Everyday Situation.

0:20:03.920 --> 0:20:06.960
<v Speaker 2>She loves the episode on life Insurance. She says, who

0:20:07.000 --> 0:20:09.520
<v Speaker 2>knows when we did that one? But I love when

0:20:09.560 --> 0:20:13.320
<v Speaker 2>any listener goes back into our catalog and uh bulld

0:20:13.400 --> 0:20:15.760
<v Speaker 2>up oldie but a goodie. So if you want to

0:20:15.800 --> 0:20:18.760
<v Speaker 2>leave us a review, please do do it on Apple Music.

0:20:20.119 --> 0:20:22.600
<v Speaker 2>That's the main place. And tell a friend to tell

0:20:22.640 --> 0:20:23.000
<v Speaker 2>a friend.

0:20:23.320 --> 0:20:25.480
<v Speaker 1>Yeah, so listen to BAQ. You know you got that

0:20:25.520 --> 0:20:27.320
<v Speaker 1>front with that credit issue for this to her as

0:20:27.359 --> 0:20:31.640
<v Speaker 1>a hint, girl, get it together all right, We'll see

0:20:31.640 --> 0:20:32.439
<v Speaker 1>you next week.