1 00:00:00,080 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,000 --> 00:00:05,920 Speaker 1: and today we are busting up some credit score myths. 3 00:00:24,960 --> 00:00:29,080 Speaker 1: Credit scores, Baby, everybody's got one. It's kind of like 4 00:00:29,080 --> 00:00:31,159 Speaker 1: a belly button, kind of like, oh, it makes me 5 00:00:31,200 --> 00:00:34,239 Speaker 1: think of everyone poops. Do you know that book? Yes? 6 00:00:34,320 --> 00:00:36,080 Speaker 1: I do. I think that books on my mind because 7 00:00:36,120 --> 00:00:40,559 Speaker 1: we are considering potty training Westy to cut out diapers 8 00:00:40,600 --> 00:00:43,519 Speaker 1: from our our monthly grocery. But wouldn't be nice? Are 9 00:00:43,560 --> 00:00:45,159 Speaker 1: y'all thinking about doing that soon? Yeah? We'd like to. 10 00:00:45,320 --> 00:00:47,680 Speaker 1: It's but the problem is, you know, you have three girls. 11 00:00:47,720 --> 00:00:50,319 Speaker 1: I have two girls, and everybody says it's so much 12 00:00:50,320 --> 00:00:52,839 Speaker 1: easier to potty train girls. So I'm like really nervous 13 00:00:52,840 --> 00:00:55,240 Speaker 1: about potty training a boy. Yeah, we've pulled down the 14 00:00:55,240 --> 00:00:57,880 Speaker 1: little Ikea green, the green and white little Ida potty 15 00:00:58,280 --> 00:01:01,880 Speaker 1: same he Westy is totally interested in it. We just 16 00:01:01,880 --> 00:01:03,640 Speaker 1: haven't pulled the plug yet. But I told Kate the 17 00:01:03,720 --> 00:01:06,080 Speaker 1: last package of diapers that we just got, I was like, 18 00:01:06,160 --> 00:01:08,319 Speaker 1: that is it, Like, let's commit let's do it. We're 19 00:01:08,319 --> 00:01:11,640 Speaker 1: gonna cold turkey do the thing where you know, there's 20 00:01:11,640 --> 00:01:13,200 Speaker 1: this whole approach. I don't want to go into take 21 00:01:13,319 --> 00:01:15,399 Speaker 1: a full weeken inddicate. Yeah, like there's this approach where 22 00:01:15,400 --> 00:01:17,240 Speaker 1: you just go cold turkey and you just let them 23 00:01:17,280 --> 00:01:21,199 Speaker 1: go all eyes on the little dude, and basically they 24 00:01:21,319 --> 00:01:24,080 Speaker 1: don't like that feeling of having just soiled themselves, and 25 00:01:24,120 --> 00:01:26,720 Speaker 1: so they quickly learned like like even at night, no 26 00:01:26,840 --> 00:01:29,160 Speaker 1: pull ups, nothing like that. Just like everyone poops, everyone 27 00:01:29,160 --> 00:01:30,680 Speaker 1: does have a credit score. And that's what we're talking 28 00:01:30,680 --> 00:01:32,520 Speaker 1: about today, right, Yeah, but before we get to that 29 00:01:32,520 --> 00:01:34,440 Speaker 1: real quick, man, I just wanted to mention it is 30 00:01:34,480 --> 00:01:37,680 Speaker 1: the beginning of spring right now, basically like warmer weather 31 00:01:38,160 --> 00:01:41,400 Speaker 1: and what happens when the weather gets warm The flowers 32 00:01:41,400 --> 00:01:43,920 Speaker 1: are bloomin. That's true, but also the bugs come out 33 00:01:44,040 --> 00:01:46,800 Speaker 1: right and so especially in the South. Like I just 34 00:01:46,920 --> 00:01:50,040 Speaker 1: had a tenant emailed me the other day and she's like, hey, 35 00:01:50,120 --> 00:01:51,680 Speaker 1: by the way, I want to let you know, start 36 00:01:51,720 --> 00:01:53,960 Speaker 1: to see some more bug activity at the house, which 37 00:01:54,240 --> 00:01:58,040 Speaker 1: is my reminder that it's time to spray for bugs 38 00:01:58,360 --> 00:02:01,760 Speaker 1: and some dl peskin role exactly. We've talked about this 39 00:02:01,880 --> 00:02:04,320 Speaker 1: a few times over the years, but it's worth revisiting 40 00:02:04,680 --> 00:02:07,200 Speaker 1: because Yeah, I wrote an article up on our site 41 00:02:07,200 --> 00:02:09,239 Speaker 1: at how the Money dot Com just telling people how 42 00:02:09,280 --> 00:02:11,640 Speaker 1: to do it themselves. And it's amazing how much money 43 00:02:11,720 --> 00:02:13,720 Speaker 1: you can save because a lot of our listeners are 44 00:02:13,720 --> 00:02:16,480 Speaker 1: probably paying something like a hundred dollars a quarter to 45 00:02:16,520 --> 00:02:19,160 Speaker 1: a pest control company to come for a quarterly spraying. 46 00:02:19,160 --> 00:02:21,359 Speaker 1: So let's say you're you're spending four dollars a year 47 00:02:21,800 --> 00:02:24,480 Speaker 1: to combat bugs to keep them out of your house. Well, 48 00:02:24,639 --> 00:02:27,359 Speaker 1: you can d I Y it and literally you will 49 00:02:27,360 --> 00:02:30,400 Speaker 1: shell out no, no more than and actually less than 50 00:02:30,440 --> 00:02:32,920 Speaker 1: a hundred dollars uh and in the beginning, and that 51 00:02:33,040 --> 00:02:36,520 Speaker 1: supply the sprayer and the chemicals. And this is not 52 00:02:36,639 --> 00:02:39,120 Speaker 1: the chemical that you can buy at home debo by 53 00:02:39,120 --> 00:02:41,040 Speaker 1: the way, this is the chemicals that the pros use. 54 00:02:41,320 --> 00:02:44,080 Speaker 1: You can get both for for like, you know, roughly 55 00:02:44,120 --> 00:02:46,120 Speaker 1: in the range of seventy bucks. Yeah, and you're not 56 00:02:46,160 --> 00:02:49,760 Speaker 1: just buying like a little spray bottle to like you know, like, 57 00:02:50,080 --> 00:02:53,200 Speaker 1: this is professional grade stuff. And we we crunched the 58 00:02:53,240 --> 00:02:55,520 Speaker 1: numbers on it too. And literally once after you get that, 59 00:02:55,560 --> 00:02:59,359 Speaker 1: you're only using something like two dollars worth of chemicals 60 00:02:59,440 --> 00:03:01,760 Speaker 1: over the course of a year. And so you're looking 61 00:03:01,840 --> 00:03:05,960 Speaker 1: at u versus two dollars a year after that upfront cost, 62 00:03:06,080 --> 00:03:07,960 Speaker 1: and it's easy to see that you are quickly going 63 00:03:08,000 --> 00:03:09,240 Speaker 1: to be able to come out ahead. And I think 64 00:03:09,240 --> 00:03:10,959 Speaker 1: most people might hear that and they're like, well, there's 65 00:03:10,960 --> 00:03:13,720 Speaker 1: gotta be a catch, right, like, uh, something's in fear 66 00:03:13,800 --> 00:03:15,880 Speaker 1: in this process, or you know what, I don't think 67 00:03:15,919 --> 00:03:17,800 Speaker 1: I'm gonna know be able to know how to do this. 68 00:03:17,840 --> 00:03:21,320 Speaker 1: And unfortunately, there are instructional videos on you know, some 69 00:03:21,360 --> 00:03:23,320 Speaker 1: of these websites where they will show you how to 70 00:03:23,360 --> 00:03:26,520 Speaker 1: do it properly and really honestly if any dummy can 71 00:03:26,560 --> 00:03:29,200 Speaker 1: do it, so it's it's not something that takes special 72 00:03:29,200 --> 00:03:31,360 Speaker 1: skills or anything like that. And and just considering how 73 00:03:31,440 --> 00:03:33,520 Speaker 1: much money you can save you in one fell swoop, Um, 74 00:03:33,600 --> 00:03:36,560 Speaker 1: we're all kind of faced with higher rates of inflation, 75 00:03:36,680 --> 00:03:39,120 Speaker 1: higher costs on almost everything. He's right now, if you're 76 00:03:39,120 --> 00:03:41,760 Speaker 1: looking to save money in a big way, and just 77 00:03:41,800 --> 00:03:43,480 Speaker 1: like one fell swoop, this is definitely one thing to 78 00:03:43,480 --> 00:03:46,480 Speaker 1: look at. Absolutely. And something else I gotta tell listeners about. 79 00:03:46,480 --> 00:03:49,280 Speaker 1: Have we have we talked about about my bug assault 80 00:03:49,480 --> 00:03:51,960 Speaker 1: gun on the show before you know talk about the 81 00:03:51,960 --> 00:03:54,680 Speaker 1: one that blows their No, it's this one that shoots salt. Oh, 82 00:03:54,720 --> 00:03:56,640 Speaker 1: that's right, that's right, that's right. That's right. So I 83 00:03:56,640 --> 00:03:59,440 Speaker 1: got this for Christmas and it is the coolest thing. 84 00:03:59,720 --> 00:04:02,600 Speaker 1: It's a little so basically it's like a little pump shotgun, 85 00:04:03,240 --> 00:04:05,440 Speaker 1: but it's a it's made of plastic. It's a toy, 86 00:04:05,640 --> 00:04:08,600 Speaker 1: and it's got a little canister and you pour table 87 00:04:08,640 --> 00:04:10,920 Speaker 1: salt in there, like like a tablespoon or two tablespoon's 88 00:04:10,920 --> 00:04:14,200 Speaker 1: worth of literally table salt. You close it up, you 89 00:04:14,240 --> 00:04:16,839 Speaker 1: pump it, and when you shoot it, it literally shoots 90 00:04:16,880 --> 00:04:19,160 Speaker 1: out like a little blast of a little bit of salt, 91 00:04:19,240 --> 00:04:21,880 Speaker 1: kind of like a shotgun pellet. It's it's literally a 92 00:04:21,920 --> 00:04:25,760 Speaker 1: shotgun for bugs that shoots salt. And so this is 93 00:04:25,800 --> 00:04:28,719 Speaker 1: the most fun I have ever had taken down little 94 00:04:28,720 --> 00:04:30,840 Speaker 1: house flies in my house. I will link to it 95 00:04:31,160 --> 00:04:34,120 Speaker 1: uh in our show notes because literally it is so fun. 96 00:04:34,160 --> 00:04:36,120 Speaker 1: It's it's way more fun than than the old bugs 97 00:04:36,120 --> 00:04:40,440 Speaker 1: apper down the South Georgia, which very few people are 98 00:04:40,480 --> 00:04:43,719 Speaker 1: aware of what I'm talking about here, But aside from 99 00:04:43,880 --> 00:04:45,719 Speaker 1: the d ips control, if you want to get yourself 100 00:04:45,839 --> 00:04:50,200 Speaker 1: a bug of salt gun, I highly recommend it. I mean, 101 00:04:50,240 --> 00:04:51,880 Speaker 1: it does sound like fun. I might have to get one, dude, 102 00:04:51,960 --> 00:04:53,800 Speaker 1: just for the sheer joy. Next time you all are 103 00:04:53,839 --> 00:04:55,880 Speaker 1: over and there's a little house fly or a nat 104 00:04:55,920 --> 00:04:57,160 Speaker 1: or something like that, let me take it. I'll let 105 00:04:57,160 --> 00:04:58,560 Speaker 1: you have a shot with it, because it is a 106 00:04:58,560 --> 00:05:00,520 Speaker 1: ton of fun. Good. I appreciate that it's just salt, 107 00:05:00,600 --> 00:05:02,720 Speaker 1: and so you miss, or even if you don't miss, 108 00:05:02,760 --> 00:05:03,960 Speaker 1: you know, you pick up the five. But then like 109 00:05:04,000 --> 00:05:05,640 Speaker 1: all the salt just kind of disperses a little bit. 110 00:05:05,640 --> 00:05:07,320 Speaker 1: But it's salt. It's like, it's not that big of 111 00:05:07,320 --> 00:05:08,440 Speaker 1: a deal. If there's a little bit of salt on 112 00:05:08,440 --> 00:05:11,000 Speaker 1: the ground. Next time you're sweet or your vacuum, you 113 00:05:11,040 --> 00:05:12,680 Speaker 1: get it up off the floor and you barely notice 114 00:05:12,680 --> 00:05:15,080 Speaker 1: it and tell them I bet exactly. Um. Nice, Okay, Well, 115 00:05:15,080 --> 00:05:16,920 Speaker 1: word to the wise, do your own pest control, save 116 00:05:17,000 --> 00:05:18,720 Speaker 1: you some some some money, and bug a salt gun. 117 00:05:20,160 --> 00:05:22,040 Speaker 1: All right, and let's move on. Let's mention the beer 118 00:05:22,080 --> 00:05:23,920 Speaker 1: that we're having on the show. This one is called 119 00:05:23,920 --> 00:05:27,280 Speaker 1: Hello World, and it's by Spyglass Brewing, and this one 120 00:05:27,279 --> 00:05:29,560 Speaker 1: will sent to us by listener Gary. He sent us 121 00:05:29,600 --> 00:05:33,000 Speaker 1: Monday's beer. Looking forward to having this one today, And 122 00:05:33,360 --> 00:05:34,919 Speaker 1: we'll give our thoughts at the end of the episode, 123 00:05:35,120 --> 00:05:37,600 Speaker 1: but for now, Matt, looking onto the subject at hand, 124 00:05:37,640 --> 00:05:40,760 Speaker 1: we are of course tackling some credit score, miss we're 125 00:05:40,760 --> 00:05:43,360 Speaker 1: busting them up. And you know, it made me think, 126 00:05:43,400 --> 00:05:45,360 Speaker 1: like there are all sorts of myths that have grown 127 00:05:45,400 --> 00:05:49,280 Speaker 1: into legends over the years, over decades. The lock this 128 00:05:49,440 --> 00:05:53,200 Speaker 1: monster is one of those, right, Paul bunyan UFOs, Like 129 00:05:53,240 --> 00:05:56,000 Speaker 1: did they exist? Don't they? All sorts of of these 130 00:05:56,040 --> 00:05:59,720 Speaker 1: like they're they're just drones. You know, all of these 131 00:05:59,760 --> 00:06:04,040 Speaker 1: things have developed outsized tales that make for interesting TV shows, 132 00:06:04,279 --> 00:06:06,400 Speaker 1: and they're fun to talk about maybe on a Friday 133 00:06:06,480 --> 00:06:09,039 Speaker 1: night over a nice craft beer with some of your friends, 134 00:06:09,240 --> 00:06:11,240 Speaker 1: just kind of well, I don't know, is it real 135 00:06:11,360 --> 00:06:13,479 Speaker 1: or isn't it? And the same as maybe like the 136 00:06:13,560 --> 00:06:16,920 Speaker 1: legend with the moon landing being fake, although I don't know, 137 00:06:17,040 --> 00:06:19,960 Speaker 1: that's just kind of less fun to talk about, and uh, 138 00:06:20,080 --> 00:06:23,239 Speaker 1: not so small contingent of Americans they continue to believe 139 00:06:23,320 --> 00:06:26,559 Speaker 1: in the existence of like a sasquatch like creature roaming 140 00:06:26,560 --> 00:06:29,560 Speaker 1: the woods. But yeah, some have lashed onto these tales. 141 00:06:29,800 --> 00:06:33,440 Speaker 1: They've they've taken them as factual. And you know, while 142 00:06:33,560 --> 00:06:37,200 Speaker 1: I don't have definitive proof that Bigfoot doesn't exist, it 143 00:06:37,200 --> 00:06:40,320 Speaker 1: certainly doesn't match up with what my eyes have seen firsthand. 144 00:06:40,560 --> 00:06:42,919 Speaker 1: And part of the reason these myths persist is because 145 00:06:42,920 --> 00:06:46,160 Speaker 1: there isn't documented evidence to the contrary, right, I mean, 146 00:06:46,480 --> 00:06:48,520 Speaker 1: but credit score myths, on the other hand, well, they 147 00:06:48,520 --> 00:06:53,120 Speaker 1: continue to exist despite hard evidence of their inaccuracies. And 148 00:06:53,160 --> 00:06:55,200 Speaker 1: so that's why we're talking about this today. I mean, 149 00:06:55,240 --> 00:06:58,440 Speaker 1: these these myths impact your finances in a real and 150 00:06:58,480 --> 00:07:00,640 Speaker 1: ongoing way. So we've got a scuss some in a 151 00:07:00,640 --> 00:07:03,560 Speaker 1: way that maybe your bigfoot obsession doesn't impact your day 152 00:07:03,600 --> 00:07:05,240 Speaker 1: to day life, it's right, man, so and if it does, 153 00:07:05,279 --> 00:07:07,560 Speaker 1: you've got a real problem. It's time to bust these 154 00:07:07,640 --> 00:07:09,800 Speaker 1: myths up. And part of the reason too, that we're 155 00:07:09,800 --> 00:07:13,120 Speaker 1: tackling this topic now is because of the fact that 156 00:07:13,160 --> 00:07:16,200 Speaker 1: March it's National Credit Education Month. But you didn't know that. 157 00:07:17,000 --> 00:07:21,960 Speaker 1: There's a there everything everything these days. But there are 158 00:07:22,000 --> 00:07:24,680 Speaker 1: also a lot of misconceptions and miss understandings out there 159 00:07:24,680 --> 00:07:28,000 Speaker 1: about credit scores and these myths. They lead folks to 160 00:07:28,040 --> 00:07:31,920 Speaker 1: take just different past like incorrect paths towards their credit. 161 00:07:32,120 --> 00:07:36,120 Speaker 1: It often impacts their score negatively, causing actual real side effects. 162 00:07:36,320 --> 00:07:38,280 Speaker 1: And we want you to have a great credit score 163 00:07:38,360 --> 00:07:41,120 Speaker 1: because it has such a wide ranging impact. Living without 164 00:07:41,120 --> 00:07:43,680 Speaker 1: a credit score would be tough in a modern society, 165 00:07:44,120 --> 00:07:46,560 Speaker 1: and like, is that a good thing that we have 166 00:07:46,720 --> 00:07:49,840 Speaker 1: to function with the credit score? Not necessarily. We're not 167 00:07:50,200 --> 00:07:52,760 Speaker 1: huge fans of the credit bureaus and you know, specifically 168 00:07:52,800 --> 00:07:56,200 Speaker 1: their inability to keep our personal data secure. But it's 169 00:07:56,240 --> 00:07:57,880 Speaker 1: kind of like we've been put down in a game 170 00:07:58,320 --> 00:08:01,119 Speaker 1: that we just can't stop playing. I mean could stop playing, 171 00:08:01,120 --> 00:08:03,320 Speaker 1: but you would have to need a pile of cash 172 00:08:03,560 --> 00:08:06,560 Speaker 1: in order to truly avoid the credit score system altogether, 173 00:08:06,600 --> 00:08:09,920 Speaker 1: in order to completely skirt it. Yeah, it's kind of 174 00:08:09,960 --> 00:08:11,600 Speaker 1: like even if you want to be an entrepreneur at 175 00:08:11,600 --> 00:08:13,480 Speaker 1: age twelve, like, you still got to finish high school. 176 00:08:13,520 --> 00:08:16,320 Speaker 1: I mean it's it's it's part of the process and 177 00:08:16,440 --> 00:08:18,280 Speaker 1: you'll have to your your parents are gonna get in 178 00:08:18,280 --> 00:08:20,680 Speaker 1: big trouble if you don't write. I mean it's um, 179 00:08:20,880 --> 00:08:22,480 Speaker 1: is there some law like do you actually have to 180 00:08:22,480 --> 00:08:25,160 Speaker 1: finish high school? No, I think you're gonna get in 181 00:08:25,160 --> 00:08:27,560 Speaker 1: big trouble if you drop out before before the age 182 00:08:27,600 --> 00:08:30,160 Speaker 1: of sixteen. I didn't know that. Yeah, I think I 183 00:08:30,160 --> 00:08:31,800 Speaker 1: don't know what the actual roles are, but I'm pretty 184 00:08:31,800 --> 00:08:33,240 Speaker 1: sure you gotta go to school, and the kids are 185 00:08:33,240 --> 00:08:35,760 Speaker 1: listening to school, I mean you should, like I agree 186 00:08:35,800 --> 00:08:38,839 Speaker 1: that that's probably it's probably a good, healthy approach to 187 00:08:39,440 --> 00:08:41,640 Speaker 1: becoming a fully formed Adult'm pretty sure the state can 188 00:08:41,640 --> 00:08:44,280 Speaker 1: come after the parents if if the kids come out, Yeah, 189 00:08:44,280 --> 00:08:45,520 Speaker 1: if they take them out of school and there's no 190 00:08:45,559 --> 00:08:47,200 Speaker 1: sign that they're doing any sort of homeschooling. What kind 191 00:08:47,200 --> 00:08:50,760 Speaker 1: of country we're living in. I don't know. We might 192 00:08:51,080 --> 00:08:53,680 Speaker 1: disagree on whether or not that's a reasonable thing, but 193 00:08:53,840 --> 00:08:56,000 Speaker 1: it's reasonable. But I feel like people should have a choice. Whatever. 194 00:08:56,520 --> 00:08:59,040 Speaker 1: Let's go, let's don't take your kids out of school. 195 00:08:59,080 --> 00:09:01,160 Speaker 1: They mean, I'm not they will say it school because 196 00:09:01,160 --> 00:09:03,560 Speaker 1: they're gonna go to college most likely to what other 197 00:09:03,600 --> 00:09:05,360 Speaker 1: people to have the choice if they choose not to, 198 00:09:05,520 --> 00:09:07,760 Speaker 1: if they choose to rip their kids out of school 199 00:09:07,880 --> 00:09:11,120 Speaker 1: and just you know, send them down the Jeff Bezos path, Um, yeah, 200 00:09:12,679 --> 00:09:15,520 Speaker 1: gens kid and they're able to take whatever remedial course 201 00:09:15,640 --> 00:09:18,800 Speaker 1: or class where they're basically able to get the equivalent 202 00:09:18,840 --> 00:09:21,360 Speaker 1: of a high school diploma. Of course they should be 203 00:09:21,400 --> 00:09:23,720 Speaker 1: able to do that, right, Okay, al right, well, let's 204 00:09:23,800 --> 00:09:25,640 Speaker 1: let's move on. Let's talk about what a good score 205 00:09:25,720 --> 00:09:29,040 Speaker 1: is because that kind of sets up this question of like, well, 206 00:09:29,040 --> 00:09:30,960 Speaker 1: what are we aiming to achieve here with with our 207 00:09:31,000 --> 00:09:34,200 Speaker 1: credit score. And you know, Matt, you just mentioned one 208 00:09:34,200 --> 00:09:36,160 Speaker 1: way to avoid the system would be to have just 209 00:09:36,200 --> 00:09:38,760 Speaker 1: a ton of money. You're loaded, right, Like, you don't 210 00:09:38,760 --> 00:09:41,480 Speaker 1: need a lender to approve you to buy a home 211 00:09:41,520 --> 00:09:43,600 Speaker 1: if you've got five million bucks in the bank, and 212 00:09:43,600 --> 00:09:46,040 Speaker 1: you can go buy any home that you desire. But 213 00:09:46,120 --> 00:09:48,400 Speaker 1: since most folks don't have that, most folks don't have 214 00:09:48,440 --> 00:09:52,280 Speaker 1: that much money on hand, especially these days, like to 215 00:09:52,320 --> 00:09:55,040 Speaker 1: buy home, which it gets really expensive. In a car, 216 00:09:55,320 --> 00:09:58,800 Speaker 1: same thing, right, cars are not cheap, so paying attention 217 00:09:58,840 --> 00:10:00,679 Speaker 1: to your credit score is a mo But then the 218 00:10:00,760 --> 00:10:02,600 Speaker 1: question is like what is a good score? And I 219 00:10:02,600 --> 00:10:05,439 Speaker 1: guess you know, we have to tackle that because um, 220 00:10:05,679 --> 00:10:08,680 Speaker 1: and it's actually kind of a difficult question to answer 221 00:10:08,760 --> 00:10:11,640 Speaker 1: because there are different scales, like kind of like how 222 00:10:11,960 --> 00:10:14,800 Speaker 1: we're talking about schools here, how some schools might have 223 00:10:15,160 --> 00:10:17,760 Speaker 1: an A scale an eight eight could be considered an A, 224 00:10:17,880 --> 00:10:19,720 Speaker 1: I guess in some schools or ninety I remember in 225 00:10:19,760 --> 00:10:22,599 Speaker 1: high school when migrating scale changed and it used to 226 00:10:22,640 --> 00:10:24,800 Speaker 1: be a ninety two and up wasn't a and then 227 00:10:24,800 --> 00:10:27,720 Speaker 1: they changed to a ninety Enough was an A Seriously, yeah, 228 00:10:27,880 --> 00:10:29,520 Speaker 1: in the middle of high school and so weird. A 229 00:10:29,559 --> 00:10:33,040 Speaker 1: couple of my my above bees are obviously a D 230 00:10:33,160 --> 00:10:35,720 Speaker 1: C S or no, it's it depends on the school system. 231 00:10:35,760 --> 00:10:38,120 Speaker 1: And so I distinctly remember, like two of my bees 232 00:10:38,160 --> 00:10:40,080 Speaker 1: became a's all of a sudden, My g p A 233 00:10:40,200 --> 00:10:43,600 Speaker 1: got a little bit higher. And so similarly with credit scores, 234 00:10:43,760 --> 00:10:47,040 Speaker 1: some of these bureaus have just a different threshold for 235 00:10:47,120 --> 00:10:51,360 Speaker 1: what's considered good or great and so yeah, so the 236 00:10:51,360 --> 00:10:54,319 Speaker 1: score that your lender sees when you're refinancing an auto loan, 237 00:10:54,400 --> 00:10:56,880 Speaker 1: let's say, it can differ from the one you get 238 00:10:57,080 --> 00:10:59,720 Speaker 1: if you were to get that scored directly from the 239 00:10:59,720 --> 00:11:02,520 Speaker 1: beer row. And each bureau also has quite a few 240 00:11:02,720 --> 00:11:05,640 Speaker 1: credit scores for you behind the scenes, so it's it's 241 00:11:05,640 --> 00:11:08,440 Speaker 1: not even different models. Yeah, like there's this one score 242 00:11:08,520 --> 00:11:10,480 Speaker 1: that you have for each bureau. It's like they might 243 00:11:10,520 --> 00:11:13,400 Speaker 1: have a dozen scores for you based on different factors. 244 00:11:13,640 --> 00:11:16,000 Speaker 1: And so the score your lender sees when you're refinancing 245 00:11:16,000 --> 00:11:18,600 Speaker 1: an auto loan, let's say, can differ from the one 246 00:11:18,640 --> 00:11:20,240 Speaker 1: that you get if you were to get that score 247 00:11:20,480 --> 00:11:23,040 Speaker 1: directly from the bureau. And you know, most of these 248 00:11:23,080 --> 00:11:25,040 Speaker 1: scores are on a scale that goes up to like 249 00:11:25,200 --> 00:11:28,880 Speaker 1: eight fifty or nine hundred, and some folks are striving 250 00:11:28,920 --> 00:11:32,079 Speaker 1: for a perfect credit score under each one of these models, 251 00:11:32,160 --> 00:11:36,200 Speaker 1: and that's just a recipe for in futility. Um, it's 252 00:11:36,240 --> 00:11:39,839 Speaker 1: it's just completely unnecessary to strive for perfection. Basically, if 253 00:11:39,840 --> 00:11:42,040 Speaker 1: your score is in the seven forty plus range on 254 00:11:42,120 --> 00:11:44,800 Speaker 1: any of these scales, that's good enough and it will 255 00:11:44,800 --> 00:11:47,480 Speaker 1: basically qualify you for the best terms for different loans 256 00:11:47,480 --> 00:11:50,439 Speaker 1: you might need access to. Just remember that seven forty 257 00:11:50,600 --> 00:11:54,520 Speaker 1: or above is basically that a range where you're gonna 258 00:11:54,559 --> 00:11:56,840 Speaker 1: want to be in order to, yeah, get the best 259 00:11:56,920 --> 00:12:00,400 Speaker 1: terms on all sorts of different lending products until they 260 00:12:00,480 --> 00:12:02,520 Speaker 1: changed the rules on you. All right, let's go ahead 261 00:12:02,520 --> 00:12:04,959 Speaker 1: and get started busting up some of these credit score myths. 262 00:12:05,120 --> 00:12:07,120 Speaker 1: By the way, you remember the guys from MythBusters back 263 00:12:07,120 --> 00:12:09,320 Speaker 1: in the day, Like, that's one of the inspiration, you know, 264 00:12:09,320 --> 00:12:11,160 Speaker 1: for the title of this episode for the listeners out there. 265 00:12:11,200 --> 00:12:13,720 Speaker 1: That was one of those first hit reality styles SIGN 266 00:12:13,720 --> 00:12:15,760 Speaker 1: and CE TV shows. Yeah, one of my favorite ones 267 00:12:15,760 --> 00:12:19,280 Speaker 1: I remember was they're like blasting cannonballs into a wall. Um. 268 00:12:19,679 --> 00:12:22,480 Speaker 1: And interestingly, this was like one of the episodes where 269 00:12:22,480 --> 00:12:25,920 Speaker 1: they screwed up and like they're out out in the desert, 270 00:12:26,000 --> 00:12:28,200 Speaker 1: like at a firing range or like like a bomb 271 00:12:28,280 --> 00:12:31,720 Speaker 1: range basically, and like the cannon like tipped up and 272 00:12:31,760 --> 00:12:34,839 Speaker 1: so the cannonball missed the wall and it went ricocheting 273 00:12:34,840 --> 00:12:38,120 Speaker 1: off of like one of the hills and into a neighborhood. Gosh, yeah, 274 00:12:38,320 --> 00:12:41,480 Speaker 1: super crazy. Uh, nobody got hurt, but like I do 275 00:12:41,520 --> 00:12:43,439 Speaker 1: remember like crashing into some some dude's house. I think 276 00:12:43,440 --> 00:12:46,240 Speaker 1: it like went through a van, pretty serious, Like, and 277 00:12:46,280 --> 00:12:48,600 Speaker 1: that's the day MythBusters got canceled. No, they did. Like 278 00:12:48,679 --> 00:12:51,880 Speaker 1: that was right in the middle of a run of 279 00:12:51,920 --> 00:12:54,520 Speaker 1: seasons where they were crushing. It probably made for good 280 00:12:54,520 --> 00:12:56,880 Speaker 1: TV ratings, I think it did. Like that's the one 281 00:12:56,920 --> 00:12:59,400 Speaker 1: I remember was the one where there was an errant 282 00:12:59,640 --> 00:13:02,760 Speaker 1: cannon all. I could not imagine seeing that in real life. Anyway, 283 00:13:02,840 --> 00:13:04,920 Speaker 1: let's do some mythbusting of our own. Uh. And the 284 00:13:04,920 --> 00:13:07,520 Speaker 1: first one we wanted to share is that your credit 285 00:13:07,559 --> 00:13:10,040 Speaker 1: score doesn't really matter all that much. And there's a 286 00:13:10,040 --> 00:13:11,599 Speaker 1: good reason that we're starting with this one because we 287 00:13:11,640 --> 00:13:14,240 Speaker 1: want to highlight the fact that your credit score is 288 00:13:14,280 --> 00:13:17,600 Speaker 1: incredibly important. It affects so much more of your life 289 00:13:17,600 --> 00:13:20,240 Speaker 1: than you realize. We just talked about the need for 290 00:13:20,280 --> 00:13:23,040 Speaker 1: a credit score and modern society, but everything is going 291 00:13:23,080 --> 00:13:26,360 Speaker 1: to cost you more if your credit score stinks. Lenders 292 00:13:26,400 --> 00:13:29,440 Speaker 1: they're gonna charge you what's called a risk premium if 293 00:13:29,480 --> 00:13:31,480 Speaker 1: your score isn't great, But they also might decide not 294 00:13:31,559 --> 00:13:33,599 Speaker 1: to lend to you at all if your score is 295 00:13:33,640 --> 00:13:35,720 Speaker 1: in the dumps, and you might see to yourself, all right, 296 00:13:35,720 --> 00:13:38,240 Speaker 1: that's fine, I'm not gonna ever own a home. That's fine. 297 00:13:38,440 --> 00:13:40,480 Speaker 1: Your credit score comes in play when you're renting a 298 00:13:40,520 --> 00:13:43,760 Speaker 1: house to land lords. They're gonna almost always run a 299 00:13:43,760 --> 00:13:46,280 Speaker 1: credit check, and that is going to impact your ability 300 00:13:46,360 --> 00:13:48,440 Speaker 1: to get the place that you want. You know, if 301 00:13:48,440 --> 00:13:51,920 Speaker 1: I'm choosing between two tenants, they both seem great, they 302 00:13:51,960 --> 00:13:54,200 Speaker 1: both make the same amount of money. I've got to 303 00:13:54,240 --> 00:13:56,800 Speaker 1: base my decision on something, and the credit score can 304 00:13:56,800 --> 00:13:59,760 Speaker 1: often tip the scales. A bad or non existing credit 305 00:13:59,760 --> 00:14:02,000 Speaker 1: score could also impact your ability to get home, internet 306 00:14:02,080 --> 00:14:03,640 Speaker 1: or cable, or it might require you to put down 307 00:14:03,679 --> 00:14:06,360 Speaker 1: a deposit. You might even pay more for auto insurance 308 00:14:06,400 --> 00:14:09,320 Speaker 1: if your score is low. Having a good, solid credit 309 00:14:09,360 --> 00:14:12,560 Speaker 1: score is not a trivial thing. Yeah, your credit score 310 00:14:12,679 --> 00:14:15,680 Speaker 1: has an impact in so many areas of your life, 311 00:14:15,760 --> 00:14:18,440 Speaker 1: and not only will a crappy credit score impact your 312 00:14:18,440 --> 00:14:21,800 Speaker 1: ability to spend money, to take out a loan, for 313 00:14:21,920 --> 00:14:25,040 Speaker 1: to take on debt for something that you're looking to buy, which, 314 00:14:25,120 --> 00:14:28,280 Speaker 1: let's be honest, maybe this is actually a blessing in disguise. Um, 315 00:14:28,360 --> 00:14:31,160 Speaker 1: if you potentially keep you from spending more money, yeah, 316 00:14:31,200 --> 00:14:33,400 Speaker 1: then you can afford to well. It can also hamper 317 00:14:33,440 --> 00:14:36,960 Speaker 1: your ability to earn money. And yeah, your credit history 318 00:14:37,080 --> 00:14:39,760 Speaker 1: can have an impact when you apply for some jobs, 319 00:14:39,800 --> 00:14:42,720 Speaker 1: like in particular ones in finance, or let's say you're 320 00:14:42,720 --> 00:14:46,120 Speaker 1: moving up to management level, then um, there's a good 321 00:14:46,200 --> 00:14:49,480 Speaker 1: chance your credit score comes into play here. Credit checks 322 00:14:49,560 --> 00:14:52,440 Speaker 1: happen more often for these types of jobs where the 323 00:14:52,440 --> 00:14:55,080 Speaker 1: stakes are higher, like when a security clearance is involved, 324 00:14:55,160 --> 00:14:57,200 Speaker 1: or if you have access to a lot of money 325 00:14:57,320 --> 00:15:00,160 Speaker 1: or sensitive information of your coworkers. I don't know this 326 00:15:00,240 --> 00:15:01,600 Speaker 1: for a fact, but I got a feel in that, 327 00:15:01,640 --> 00:15:03,680 Speaker 1: like bank tellers, if you've got a really really really 328 00:15:03,680 --> 00:15:05,760 Speaker 1: crappy credit scored, like maybe you don't get that bank 329 00:15:05,800 --> 00:15:08,320 Speaker 1: teller job where you're you know, doing up the hundred. Yeah, 330 00:15:08,400 --> 00:15:10,680 Speaker 1: they might be like, sorry, go apply down the street 331 00:15:10,720 --> 00:15:13,160 Speaker 1: at target. Um, and so yeah, you know. One study 332 00:15:13,200 --> 00:15:17,160 Speaker 1: shows that of HR managers are actually gonna check your 333 00:15:17,200 --> 00:15:20,120 Speaker 1: credit history during the hiring process, even though they won't 334 00:15:20,160 --> 00:15:22,360 Speaker 1: be able to see your actual score in most cases. 335 00:15:22,560 --> 00:15:25,560 Speaker 1: But here's the deal. Your score is influenced by what's 336 00:15:25,560 --> 00:15:27,440 Speaker 1: on your credit report. So if they can take a 337 00:15:27,440 --> 00:15:29,760 Speaker 1: look at your credit report, they kind of, in theory, 338 00:15:29,880 --> 00:15:33,040 Speaker 1: can deduce what your score is. And that crummy credit 339 00:15:33,080 --> 00:15:35,680 Speaker 1: report with lots of errors and issues on it is 340 00:15:35,720 --> 00:15:38,240 Speaker 1: going to potentially affect your ability to get the job 341 00:15:38,280 --> 00:15:40,520 Speaker 1: that you want. That's right. All right, We've got more 342 00:15:40,680 --> 00:15:43,800 Speaker 1: credit myths that need to be shelat and we'll get 343 00:15:43,800 --> 00:15:54,960 Speaker 1: to all of those right after this break. All right, 344 00:15:55,000 --> 00:15:57,480 Speaker 1: we're back and we are busting up some of those 345 00:15:57,520 --> 00:16:01,080 Speaker 1: different credit score myths that may have heard of, some 346 00:16:01,200 --> 00:16:03,080 Speaker 1: you may not have heard of before. Um let's get 347 00:16:03,080 --> 00:16:05,800 Speaker 1: to our next one, which is checking your credit score 348 00:16:06,200 --> 00:16:08,400 Speaker 1: hurts your credit score. I feel like this is one 349 00:16:08,440 --> 00:16:11,120 Speaker 1: that's been around for a long time, and you know, 350 00:16:11,200 --> 00:16:13,440 Speaker 1: like years ago, the credit scords were kind of like 351 00:16:13,880 --> 00:16:17,280 Speaker 1: shrouded in secrecy. Like the bureaus and the banks and 352 00:16:17,400 --> 00:16:19,480 Speaker 1: the lenders they knew what our credit score was, but 353 00:16:19,520 --> 00:16:22,120 Speaker 1: we didn't. Sort of like credit scores, we're kind of 354 00:16:22,160 --> 00:16:25,360 Speaker 1: like fight club, right, like the first rule of Credit 355 00:16:25,400 --> 00:16:28,480 Speaker 1: score club is to not talk about your credit score, 356 00:16:28,520 --> 00:16:30,680 Speaker 1: you know, where you're fearing that just like an utterance 357 00:16:30,720 --> 00:16:33,440 Speaker 1: might punish your score where you would you know, see 358 00:16:33,440 --> 00:16:35,720 Speaker 1: a drop significantly. Yeah, it's like almost like the thought 359 00:16:35,720 --> 00:16:37,280 Speaker 1: police would come after you. Like I thought about my 360 00:16:37,320 --> 00:16:38,880 Speaker 1: credit score and I kind of wondered what what my 361 00:16:38,880 --> 00:16:41,400 Speaker 1: point score was total was And it's like, no, if 362 00:16:41,440 --> 00:16:43,480 Speaker 1: if you can ask that question your brain, they're gonna 363 00:16:43,560 --> 00:16:45,160 Speaker 1: take your score down a notch or two. It's almost 364 00:16:45,160 --> 00:16:47,080 Speaker 1: like you're just better off just hoping for the best. 365 00:16:47,440 --> 00:16:49,520 Speaker 1: But luckily that's that's no longer the case. We all 366 00:16:49,560 --> 00:16:51,720 Speaker 1: have access to our our scores pretty much at every 367 00:16:51,760 --> 00:16:54,280 Speaker 1: turn these days. But I truly remember when that wasn't 368 00:16:54,320 --> 00:16:57,000 Speaker 1: the case, because I distinctly remember one of the first 369 00:16:57,000 --> 00:17:00,400 Speaker 1: credit cards I ever got was at a bank that 370 00:17:00,440 --> 00:17:05,560 Speaker 1: no longer exists called Washington Mutual that went it went down, uh, 371 00:17:05,640 --> 00:17:08,520 Speaker 1: you know, the great recession of the late to early 372 00:17:08,520 --> 00:17:12,520 Speaker 1: two thousands there two eight And basically it was one 373 00:17:12,520 --> 00:17:15,520 Speaker 1: of the first credit cards that made your credit score 374 00:17:15,600 --> 00:17:18,679 Speaker 1: known to you on a monthly basis. They basically started 375 00:17:18,680 --> 00:17:23,240 Speaker 1: the revolution, uh, making credit scores widely accessive discover um No. 376 00:17:23,359 --> 00:17:25,280 Speaker 1: I think they came shortly after, and they've done a 377 00:17:25,320 --> 00:17:28,199 Speaker 1: great job doing that. But WAMU was kind of that 378 00:17:28,400 --> 00:17:31,240 Speaker 1: first bank where it was like listen, no annual fee 379 00:17:31,280 --> 00:17:32,720 Speaker 1: credit card, but you get to know your credit score 380 00:17:32,720 --> 00:17:34,879 Speaker 1: every month. And so for you know, money nerds like 381 00:17:34,960 --> 00:17:37,640 Speaker 1: me who wanted to, Yeah, I wanted to, and there 382 00:17:37,720 --> 00:17:40,399 Speaker 1: was no other place on the internet where where I 383 00:17:40,400 --> 00:17:42,840 Speaker 1: don't think this was before credit carma existed. This is 384 00:17:42,880 --> 00:17:47,480 Speaker 1: before the internet, not quite, but this is before electricity. 385 00:17:48,520 --> 00:17:50,760 Speaker 1: I know I'm definitely aging myself here, but it was 386 00:17:50,800 --> 00:17:52,560 Speaker 1: kind of nice to have a credit score that would 387 00:17:52,600 --> 00:17:55,040 Speaker 1: make that known to you. And and you know, since then, 388 00:17:55,119 --> 00:17:57,600 Speaker 1: obviously it's gotten so much easier to stay on top. 389 00:17:57,600 --> 00:17:59,639 Speaker 1: And we'll talk about that a little bit later, but 390 00:18:00,000 --> 00:18:02,119 Speaker 1: I remember in those days where it was like herring 391 00:18:02,160 --> 00:18:04,040 Speaker 1: to find out what your credit score was, and you 392 00:18:04,119 --> 00:18:06,720 Speaker 1: like either had to find that one brandom credit card 393 00:18:06,760 --> 00:18:09,320 Speaker 1: that would do it or just kind of hope and 394 00:18:09,359 --> 00:18:11,720 Speaker 1: pray when you apply for a loan that your credit 395 00:18:11,840 --> 00:18:13,199 Speaker 1: was in decent shape, where you just had to know 396 00:18:13,240 --> 00:18:15,840 Speaker 1: somebody on the inside. But it is important to know 397 00:18:15,880 --> 00:18:17,560 Speaker 1: that there's a difference between a soft pull and your 398 00:18:17,560 --> 00:18:20,520 Speaker 1: credit and a hard one. Hard polls will hurt your score, 399 00:18:20,520 --> 00:18:22,399 Speaker 1: but soft ones won't. And so if you're getting a 400 00:18:22,440 --> 00:18:25,159 Speaker 1: mortgage on a car loan, the lender is gonna run 401 00:18:25,200 --> 00:18:28,040 Speaker 1: your your credit and that's considered a hard inquiry. That 402 00:18:28,240 --> 00:18:30,960 Speaker 1: hard poll will ding your score just a little bit, 403 00:18:31,000 --> 00:18:34,040 Speaker 1: maybe like ten points. Unfortunately, like that's just the price 404 00:18:34,080 --> 00:18:36,639 Speaker 1: of admission though after all, the you know, the credit beers, 405 00:18:36,640 --> 00:18:38,600 Speaker 1: they don't want to see you applying for new lines 406 00:18:38,600 --> 00:18:42,120 Speaker 1: of credit every chance that you get. Um. But on 407 00:18:42,200 --> 00:18:44,800 Speaker 1: that note, some folks have come to believe that shopping 408 00:18:44,840 --> 00:18:46,840 Speaker 1: around four a loan is going to hurt your score, 409 00:18:47,480 --> 00:18:50,760 Speaker 1: and you know that's true, uh, that you will see 410 00:18:50,760 --> 00:18:53,280 Speaker 1: an initial hit to your score, but that doesn't mean 411 00:18:53,359 --> 00:18:55,600 Speaker 1: that if you shop with multiple lenders that it will 412 00:18:55,720 --> 00:18:58,600 Speaker 1: send your score sinking even lower with every single time 413 00:18:58,600 --> 00:19:00,480 Speaker 1: that you get a quote. The beer have it set 414 00:19:00,560 --> 00:19:03,000 Speaker 1: up to where if you make multiple inquiries inside of 415 00:19:03,040 --> 00:19:06,320 Speaker 1: a specific time window, uh, and typically that's two weeks, 416 00:19:06,359 --> 00:19:08,880 Speaker 1: those like three or four or five credit poles, they're 417 00:19:08,880 --> 00:19:11,000 Speaker 1: just going to count as a single pole. So don't 418 00:19:11,040 --> 00:19:13,520 Speaker 1: freak out, like we still want you to get multiple quotes, 419 00:19:13,600 --> 00:19:16,000 Speaker 1: because it's definitely the best way for you to get 420 00:19:16,040 --> 00:19:19,159 Speaker 1: the lowest rate, but doing that within a timely manner, 421 00:19:19,400 --> 00:19:22,119 Speaker 1: that's really important. Uh, and it's good for you to 422 00:19:22,160 --> 00:19:24,440 Speaker 1: know that that will not hurt your credit score. Yeah, 423 00:19:24,560 --> 00:19:27,040 Speaker 1: and that two week window is kind of the typical 424 00:19:27,160 --> 00:19:30,320 Speaker 1: parameter used by some of the older credit scoring models. 425 00:19:30,920 --> 00:19:34,760 Speaker 1: According to credit Karma, the newer scoring models that they 426 00:19:34,800 --> 00:19:37,520 Speaker 1: treat multiple inquiries as a single pole as long as 427 00:19:37,520 --> 00:19:39,960 Speaker 1: you make them, and they offer a much larger window 428 00:19:39,960 --> 00:19:42,680 Speaker 1: of like forty five days, which is great, there's plenty 429 00:19:42,720 --> 00:19:45,120 Speaker 1: of time to shot. But unfortunately as the end user, 430 00:19:45,160 --> 00:19:48,639 Speaker 1: because some things are still shrouded in secrecy in the 431 00:19:48,680 --> 00:19:52,240 Speaker 1: credit score credit report arena, Um, you don't know what 432 00:19:52,359 --> 00:19:54,880 Speaker 1: scoring model the lender you're getting quotes from is using, 433 00:19:54,880 --> 00:19:56,680 Speaker 1: so you don't know if they're going new school or 434 00:19:56,720 --> 00:19:58,520 Speaker 1: old school, and so it's like are you using the 435 00:19:58,640 --> 00:20:02,400 Speaker 1: vantage seven points six? And they're gonna look at you like, wait, 436 00:20:02,440 --> 00:20:04,600 Speaker 1: what are you are using the five nine point one? 437 00:20:04,640 --> 00:20:07,560 Speaker 1: Like which which model are you using? And yeah, like 438 00:20:07,600 --> 00:20:10,040 Speaker 1: go back to Lamoo Jewel out of here. I'll be 439 00:20:10,040 --> 00:20:12,800 Speaker 1: like I can't. They don't exist anymore. Um. But yeah, 440 00:20:13,080 --> 00:20:15,919 Speaker 1: basically it's best to stick with the fourteen day window 441 00:20:15,960 --> 00:20:18,600 Speaker 1: to be on the safe side. Just keep that as 442 00:20:18,720 --> 00:20:21,639 Speaker 1: your rule of thumb when you're getting let's say, quotes 443 00:20:21,800 --> 00:20:25,200 Speaker 1: for you know, a mortgage through a lender. Um, make 444 00:20:25,200 --> 00:20:27,800 Speaker 1: sure you get all those quotes in that fourteen days 445 00:20:27,920 --> 00:20:29,879 Speaker 1: and you'll be fine. But on the other side of 446 00:20:29,880 --> 00:20:32,760 Speaker 1: the spectrum, you're checking your own score via your credit 447 00:20:32,800 --> 00:20:35,680 Speaker 1: card company or through a site like credit Carma, isn't 448 00:20:35,720 --> 00:20:38,240 Speaker 1: gonna have any impact on your score because that is 449 00:20:38,240 --> 00:20:40,720 Speaker 1: what's known as a soft ball. It's different. And so yeah, 450 00:20:40,800 --> 00:20:42,719 Speaker 1: you can check every single day if you want to, 451 00:20:43,000 --> 00:20:45,080 Speaker 1: although that sounds like overkill and you might be a 452 00:20:45,119 --> 00:20:47,359 Speaker 1: little bit too obsessed, But yeah, I think some people 453 00:20:47,480 --> 00:20:49,600 Speaker 1: have that misunderstanding Matt, that it's like, if I want 454 00:20:49,600 --> 00:20:50,879 Speaker 1: to know what my credit score is, I'm gonna to 455 00:20:50,880 --> 00:20:52,400 Speaker 1: pay the price and it's gonna hurt my credit score. 456 00:20:52,680 --> 00:20:55,600 Speaker 1: And that is just not the case. You can check 457 00:20:55,640 --> 00:20:58,400 Speaker 1: your credit score a whole lot and it's not going 458 00:20:58,480 --> 00:21:01,040 Speaker 1: to mess with you. It's only when those lenders are 459 00:21:01,080 --> 00:21:03,520 Speaker 1: doing a hard pool in order to determine whether you 460 00:21:03,600 --> 00:21:06,120 Speaker 1: have a level of credit worthiness where you can get 461 00:21:06,119 --> 00:21:08,120 Speaker 1: that loan or not, that is when it's gonna ding 462 00:21:08,119 --> 00:21:10,840 Speaker 1: your score just a little bit. That is right next 463 00:21:11,000 --> 00:21:13,720 Speaker 1: credit score. Myth having debt will hurt your credit score. 464 00:21:14,280 --> 00:21:17,160 Speaker 1: And what's really interesting about this one is that the 465 00:21:17,200 --> 00:21:19,600 Speaker 1: opposite of this is kind of true. Some folks like 466 00:21:19,680 --> 00:21:21,320 Speaker 1: they don't even call it a credit score, they call 467 00:21:21,320 --> 00:21:24,200 Speaker 1: it like a debt score, which is actually it's slightly 468 00:21:24,200 --> 00:21:26,320 Speaker 1: more accurate, even though it's kind of been used as 469 00:21:26,359 --> 00:21:29,800 Speaker 1: a pejorative at times. But your score actually goes up 470 00:21:30,160 --> 00:21:34,160 Speaker 1: if you have a variety of different loans and credit cards. Uh, 471 00:21:34,280 --> 00:21:37,359 Speaker 1: as long as you're handling them all well. It pays 472 00:21:37,440 --> 00:21:40,600 Speaker 1: to have a variety of debt, namely revolving debt, So 473 00:21:40,600 --> 00:21:42,159 Speaker 1: that's like a credit card where you borrow money, you 474 00:21:42,200 --> 00:21:43,720 Speaker 1: pay it back, and then you can borrow it again, 475 00:21:44,160 --> 00:21:46,600 Speaker 1: and then installment in debt like a mortgage, where you 476 00:21:46,640 --> 00:21:49,360 Speaker 1: borrow that larger lump sum and then you slowly make 477 00:21:49,400 --> 00:21:52,600 Speaker 1: payments on that over a longer period of time. So 478 00:21:52,720 --> 00:21:54,440 Speaker 1: if you've just got say one credit card, but you 479 00:21:54,440 --> 00:21:56,120 Speaker 1: don't have a student loan, you don't have a mortgage. 480 00:21:56,359 --> 00:21:58,640 Speaker 1: Even if you pay on time and in full every month, 481 00:21:58,840 --> 00:22:00,760 Speaker 1: your score is not gonna be able to go as 482 00:22:00,840 --> 00:22:04,520 Speaker 1: high as someone who has a greater variety of debt. Yeah, 483 00:22:05,000 --> 00:22:06,880 Speaker 1: but at the same time, you shouldn't necessarily go back 484 00:22:06,880 --> 00:22:08,600 Speaker 1: and take out student loans for a degree you don't 485 00:22:08,600 --> 00:22:11,080 Speaker 1: need and just to improve your credit score. That would 486 00:22:11,119 --> 00:22:14,320 Speaker 1: be the wrong waiting. Yes. On that note, By the way, 487 00:22:14,359 --> 00:22:17,560 Speaker 1: paying off one of your debts can actually hurt your 488 00:22:17,560 --> 00:22:20,720 Speaker 1: credit score, which is just kind of interesting. Um. Let's 489 00:22:20,760 --> 00:22:23,400 Speaker 1: say you've had a car loan for a few years 490 00:22:23,480 --> 00:22:26,000 Speaker 1: and you finally make that last payment and you are 491 00:22:26,080 --> 00:22:29,280 Speaker 1: so pumped, right, You're like, I no longer have to 492 00:22:29,320 --> 00:22:32,080 Speaker 1: pay money towards this car. I own it free and clear, 493 00:22:32,359 --> 00:22:34,320 Speaker 1: and what a beautiful feeling that is. And I promised 494 00:22:34,320 --> 00:22:35,879 Speaker 1: Matt Joel that I will never take out a car 495 00:22:35,920 --> 00:22:39,160 Speaker 1: loan again, exactly, which we expect that in writing into 496 00:22:39,200 --> 00:22:42,359 Speaker 1: our email inbox. But you know, the the one downside 497 00:22:42,359 --> 00:22:44,120 Speaker 1: to that, and I don't want to make it sound 498 00:22:44,160 --> 00:22:46,800 Speaker 1: like it's a huge downside, but your credit score might 499 00:22:46,840 --> 00:22:48,720 Speaker 1: take like a tend to twenty point hit in the 500 00:22:48,760 --> 00:22:53,360 Speaker 1: aftermath of that loan no longer being on your credit report. 501 00:22:53,680 --> 00:22:56,760 Speaker 1: It can negatively impact your score. And it sounds crazy, 502 00:22:56,800 --> 00:23:00,000 Speaker 1: but it is actually true. And fortunately that ding typically 503 00:23:00,000 --> 00:23:02,720 Speaker 1: it doesn't last all that long and This is definitely 504 00:23:02,800 --> 00:23:05,399 Speaker 1: and not a reason to keep debt lingering around in 505 00:23:05,440 --> 00:23:07,359 Speaker 1: your life past the point that you need to. Just 506 00:23:07,440 --> 00:23:11,240 Speaker 1: like having a student loan might actually help your credit 507 00:23:11,280 --> 00:23:12,960 Speaker 1: score a little bit, like you don't want to go 508 00:23:12,960 --> 00:23:15,760 Speaker 1: get one just because it's going to help your credit score. Well, 509 00:23:15,800 --> 00:23:19,320 Speaker 1: just because paying off that car loan could negatively impact 510 00:23:19,359 --> 00:23:21,080 Speaker 1: your score for a small period of time doesn't mean 511 00:23:21,119 --> 00:23:23,000 Speaker 1: you don't want to pay it off. But it is 512 00:23:23,000 --> 00:23:25,600 Speaker 1: smart to be aware because you know, especially if you 513 00:23:25,640 --> 00:23:28,320 Speaker 1: need to use that tip top credit score to get 514 00:23:28,320 --> 00:23:30,879 Speaker 1: a loan for a big future purchase in the near future, 515 00:23:31,160 --> 00:23:33,600 Speaker 1: you want to be careful about the timing of when 516 00:23:33,600 --> 00:23:36,280 Speaker 1: you pay off one of those big loans, because, yeah, 517 00:23:36,359 --> 00:23:38,800 Speaker 1: if you're at seven fifty, you pay that car loan 518 00:23:38,840 --> 00:23:41,480 Speaker 1: off your seven thirty and you're applying for a mortgage loan, 519 00:23:41,920 --> 00:23:43,960 Speaker 1: that could impact, yeah, the rate that you get on 520 00:23:44,000 --> 00:23:46,040 Speaker 1: something you're gonna be paying on for thirty years, which 521 00:23:46,720 --> 00:23:48,879 Speaker 1: sounds unlikely, I think maybe to a lot of folks 522 00:23:49,040 --> 00:23:50,840 Speaker 1: as they're sitting there, but like, no, that that's kind 523 00:23:50,840 --> 00:23:52,639 Speaker 1: of how money works, right. You get a big bonus 524 00:23:52,720 --> 00:23:54,400 Speaker 1: at work and you're like, you know what, I'm gonna 525 00:23:54,440 --> 00:23:56,920 Speaker 1: go ahead and pay off my car loan a little 526 00:23:56,920 --> 00:23:59,040 Speaker 1: bit early. I've got six months left. Let's go ahead 527 00:23:59,080 --> 00:24:02,320 Speaker 1: and uh that out completely. And we've got enough money 528 00:24:02,320 --> 00:24:05,199 Speaker 1: now to put a down payment on the house. Like 529 00:24:05,280 --> 00:24:07,560 Speaker 1: we're crushing it. And then you find out that, oh, 530 00:24:07,560 --> 00:24:10,640 Speaker 1: I'm sorry, so you don't qualify for the top tier 531 00:24:10,960 --> 00:24:13,320 Speaker 1: really off a really nice rate, or I'm sorry, ma'am, 532 00:24:13,440 --> 00:24:15,760 Speaker 1: you actually are going to owe a little bit more 533 00:24:16,280 --> 00:24:18,360 Speaker 1: on the fees associated with your loan. It's just something 534 00:24:18,359 --> 00:24:20,119 Speaker 1: to keep in mind. Just like Joel said, Uh, it 535 00:24:20,160 --> 00:24:22,280 Speaker 1: actually has a higher chance of happening than you think. 536 00:24:22,640 --> 00:24:24,920 Speaker 1: And so another credit score myth that we wanted to mention, 537 00:24:25,520 --> 00:24:27,840 Speaker 1: carrying a balance will help boost my score. This one 538 00:24:27,880 --> 00:24:29,440 Speaker 1: is sort of like the flip side of the coin 539 00:24:29,760 --> 00:24:31,840 Speaker 1: from what we were just touching on, and a lot 540 00:24:31,920 --> 00:24:34,200 Speaker 1: of folks have bought it into this myth. You know, 541 00:24:34,320 --> 00:24:36,600 Speaker 1: they're thinking, having a nice mix of debt that's helping 542 00:24:36,600 --> 00:24:39,600 Speaker 1: out your score. Uh so maybe not paying your credit 543 00:24:39,640 --> 00:24:41,760 Speaker 1: card balance off I should do the same thing, right, 544 00:24:42,400 --> 00:24:46,560 Speaker 1: It's like keeping that debt around score, that's dumb. No, 545 00:24:47,200 --> 00:24:49,480 Speaker 1: your monthly statement balance it still gets reported to the 546 00:24:49,480 --> 00:24:52,240 Speaker 1: credit bureau, but that doesn't mean that you should carry 547 00:24:52,280 --> 00:24:54,880 Speaker 1: a balance and pay interest to the credit card companies instead. 548 00:24:55,160 --> 00:24:57,879 Speaker 1: There's no need to neglect to pay it off. It's 549 00:24:57,920 --> 00:24:59,639 Speaker 1: not gonna help you. It's only gonna cost you money 550 00:24:59,680 --> 00:25:03,040 Speaker 1: in interest. Yeah, but people just assume, well, let me, like, 551 00:25:03,520 --> 00:25:05,840 Speaker 1: let that balance linger. I'll pay a little bit of interest, 552 00:25:05,840 --> 00:25:07,680 Speaker 1: but it's going to help my credit score, and that's 553 00:25:07,720 --> 00:25:09,680 Speaker 1: just not true. I think it's just oftentimes to just 554 00:25:09,720 --> 00:25:12,200 Speaker 1: folks just fooling themselves, right because like maybe like deep 555 00:25:12,240 --> 00:25:14,440 Speaker 1: down you know that that's probably not true, but you think, no, 556 00:25:14,520 --> 00:25:16,359 Speaker 1: you know, like there's a chance maybe that might be 557 00:25:16,400 --> 00:25:18,720 Speaker 1: the case, but no, like do what you need to 558 00:25:18,720 --> 00:25:20,320 Speaker 1: do to make sure that you're paying your bills. This 559 00:25:20,359 --> 00:25:23,000 Speaker 1: is definitely one that people like to trick themselves on, 560 00:25:23,160 --> 00:25:26,720 Speaker 1: or at least they get tricked by they assume that, yeah, 561 00:25:26,720 --> 00:25:28,520 Speaker 1: if I just don't pay it off in full, I 562 00:25:28,600 --> 00:25:30,680 Speaker 1: might pay a little interest, but it's going to raise 563 00:25:30,720 --> 00:25:32,639 Speaker 1: my score and so it's all gonna wash out in 564 00:25:32,680 --> 00:25:34,760 Speaker 1: the end. I need to work on my credit score, 565 00:25:34,760 --> 00:25:36,200 Speaker 1: and so this is a way to do it, but 566 00:25:36,560 --> 00:25:39,439 Speaker 1: in reality it has no bearing and actually it just 567 00:25:39,640 --> 00:25:41,800 Speaker 1: hurts your personal finances if you do that, all, right, 568 00:25:41,880 --> 00:25:44,959 Speaker 1: Next credit score. Myth we we need to bust Matt. 569 00:25:45,040 --> 00:25:49,720 Speaker 1: Is your banking affects your credit score. Well, that's definitely 570 00:25:49,760 --> 00:25:51,800 Speaker 1: not true, right because, uh, yeah, how much money you 571 00:25:51,800 --> 00:25:54,520 Speaker 1: have in checkings or savings, it doesn't have any impacts 572 00:25:54,560 --> 00:25:57,199 Speaker 1: whatsoever on your credit score. Doesn't matter if you have 573 00:25:57,560 --> 00:26:01,080 Speaker 1: two grand in your savings account, like, that doesn't matter 574 00:26:01,119 --> 00:26:03,000 Speaker 1: to the credit score people. They don't look at that, 575 00:26:03,160 --> 00:26:05,479 Speaker 1: they don't care, right, So yeah, it's it's very possible 576 00:26:05,520 --> 00:26:07,600 Speaker 1: to have a great caredit score but be completely broke 577 00:26:07,720 --> 00:26:11,280 Speaker 1: with nothing in the bank even. Um, However, that doesn't 578 00:26:11,320 --> 00:26:14,000 Speaker 1: mean right that cash on hand doesn't matter, and lenders 579 00:26:14,040 --> 00:26:16,720 Speaker 1: will look at your total assets to determine if they're 580 00:26:16,720 --> 00:26:19,520 Speaker 1: going to approve you for any new credit, but it 581 00:26:19,760 --> 00:26:23,119 Speaker 1: doesn't have any bearing on your credit score. Right. The 582 00:26:23,119 --> 00:26:26,000 Speaker 1: amount of money that you have just chilling. And so 583 00:26:26,359 --> 00:26:28,320 Speaker 1: it doesn't matter where you do banking either, right. Some 584 00:26:28,359 --> 00:26:30,800 Speaker 1: people assume that the bank they do business with is 585 00:26:30,840 --> 00:26:34,080 Speaker 1: reporting low account balances or or lets the credit bureau 586 00:26:34,119 --> 00:26:36,640 Speaker 1: know about an overdraft fee that gets incurred, and that's 587 00:26:36,680 --> 00:26:40,000 Speaker 1: just not true. Um, that that stuff doesn't matter, doesn't 588 00:26:40,000 --> 00:26:42,800 Speaker 1: factor into your credit score, and it's not getting reported 589 00:26:42,800 --> 00:26:45,720 Speaker 1: in any way to the credit bureaus. So just know that, Yeah, 590 00:26:45,960 --> 00:26:48,239 Speaker 1: the way you do banking, who you bank with, and 591 00:26:48,240 --> 00:26:50,560 Speaker 1: some of those minor infractions that you might run a 592 00:26:50,600 --> 00:26:52,879 Speaker 1: foul of, they're not going to impact your score in 593 00:26:52,920 --> 00:26:55,040 Speaker 1: any way. Yeah, the credit bureaus, they don't care what 594 00:26:55,080 --> 00:26:57,359 Speaker 1: you do with your money. Like, it's not about your money. 595 00:26:57,359 --> 00:26:59,399 Speaker 1: It's it's about other people's money, right, It's about the 596 00:26:59,400 --> 00:27:01,520 Speaker 1: money that you've borrowed and whether or not you're paying 597 00:27:01,560 --> 00:27:04,440 Speaker 1: that back, how you're handling that money. They don't care 598 00:27:04,480 --> 00:27:07,320 Speaker 1: what you do with your money exactly. That's up to you. 599 00:27:07,359 --> 00:27:08,960 Speaker 1: That's you in your business, Like are you a good borrower? 600 00:27:09,000 --> 00:27:11,720 Speaker 1: Not are you a good saber? Exactly. Yeah, another myth 601 00:27:11,760 --> 00:27:14,000 Speaker 1: we wanted to get to. There's this one where you 602 00:27:14,000 --> 00:27:17,080 Speaker 1: should hire someone to help fix your banged up credit score. 603 00:27:17,920 --> 00:27:21,639 Speaker 1: We completely disagree with this one. There's nothing that someone 604 00:27:21,680 --> 00:27:23,800 Speaker 1: on the internet claiming to help your score can do 605 00:27:23,960 --> 00:27:26,760 Speaker 1: that you can't do for yourself. There's so many bold, 606 00:27:26,760 --> 00:27:29,159 Speaker 1: onecious claims on the internet. To Matt, yeah, well you 607 00:27:29,400 --> 00:27:32,719 Speaker 1: got to ignore all the post of all those false headlines. Uh, 608 00:27:32,720 --> 00:27:34,760 Speaker 1: it's this is just a waste of money. Though, and 609 00:27:34,800 --> 00:27:38,520 Speaker 1: oftentimes it's an all out con or a scam. Oftentimes 610 00:27:38,560 --> 00:27:40,920 Speaker 1: they're gonna try to charge you an upfront fee and 611 00:27:40,960 --> 00:27:43,119 Speaker 1: then they end up not being able to deliver on 612 00:27:43,160 --> 00:27:46,159 Speaker 1: the promises, which often includes claiming to be able to 613 00:27:46,200 --> 00:27:49,800 Speaker 1: remove that negative information from your credit report even if 614 00:27:49,840 --> 00:27:52,600 Speaker 1: that information is accurate. They cannot do that. That is 615 00:27:52,600 --> 00:27:55,600 Speaker 1: not true. So avoid anyone who says that they'll fix 616 00:27:55,600 --> 00:27:57,520 Speaker 1: your score if you just pay them some money. And 617 00:27:57,560 --> 00:27:59,439 Speaker 1: I think this is another just too good to be 618 00:27:59,440 --> 00:28:01,800 Speaker 1: true sort of thing right where people are like, oh, yes, 619 00:28:01,880 --> 00:28:03,640 Speaker 1: if I don't pay my credit card balance, my score 620 00:28:03,640 --> 00:28:06,879 Speaker 1: will magically go up. Or wait, if I pay this person, um, 621 00:28:06,920 --> 00:28:09,800 Speaker 1: you know, five bucks, a thousand bucks, my problem of 622 00:28:09,840 --> 00:28:12,359 Speaker 1: a crummy credit score will quickly dissipate. It's going to 623 00:28:12,440 --> 00:28:15,479 Speaker 1: be gone. But it's just like a rich quick scheme. 624 00:28:15,600 --> 00:28:18,960 Speaker 1: Like the promises sound appealing, and when you're in that mind, 625 00:28:19,400 --> 00:28:22,240 Speaker 1: you want things to get fixed quickly and you want 626 00:28:22,280 --> 00:28:25,000 Speaker 1: things to be easy. Yes, but in reality that's not 627 00:28:25,040 --> 00:28:28,080 Speaker 1: how it works. And basically you're always swindled out of 628 00:28:28,320 --> 00:28:31,040 Speaker 1: your money because there is no way to just change 629 00:28:31,040 --> 00:28:33,159 Speaker 1: your credit score overnight. Yeah, that's right, just like you 630 00:28:33,200 --> 00:28:35,840 Speaker 1: can't just take a pill and magically get fit like 631 00:28:36,200 --> 00:28:39,120 Speaker 1: it takes hard work, it takes discipline, and really wish 632 00:28:39,120 --> 00:28:41,840 Speaker 1: you could though personal responsibility. But we'll talk more about 633 00:28:41,880 --> 00:28:44,040 Speaker 1: how to raise your your credit score and how you 634 00:28:44,120 --> 00:28:46,280 Speaker 1: can do it without anyone else's help, and we'll get 635 00:28:46,280 --> 00:28:57,880 Speaker 1: to all of that right after this break. All right, man, 636 00:28:57,920 --> 00:28:59,960 Speaker 1: we we got to talk about how people can heal 637 00:29:00,040 --> 00:29:02,600 Speaker 1: their own credit scores without paying big bucks to scam 638 00:29:02,720 --> 00:29:04,920 Speaker 1: artists on the internet. We'll get to that in just 639 00:29:04,960 --> 00:29:07,240 Speaker 1: a second. I wanted to cover just one more credit 640 00:29:07,280 --> 00:29:10,720 Speaker 1: score myth, and maybe it isn't even a myth anymore, 641 00:29:10,760 --> 00:29:12,880 Speaker 1: but you know, a question we've been asked on the 642 00:29:12,880 --> 00:29:16,640 Speaker 1: show multiple times has to do with the impact on 643 00:29:16,720 --> 00:29:19,520 Speaker 1: your credit score by closing a credit card that you're 644 00:29:19,560 --> 00:29:21,520 Speaker 1: not using. This is something that there's still just a 645 00:29:21,560 --> 00:29:25,240 Speaker 1: ton of confusion in that arena over and this is 646 00:29:25,280 --> 00:29:28,479 Speaker 1: important to cover because your credit score, it's composed of 647 00:29:28,520 --> 00:29:30,680 Speaker 1: a number of factors, and really we should we should 648 00:29:30,720 --> 00:29:33,479 Speaker 1: talk about that because you might be hurting yourself on 649 00:29:33,560 --> 00:29:37,280 Speaker 1: two of the main fronts if you cancel an older card. 650 00:29:37,640 --> 00:29:40,560 Speaker 1: So some people I get the impulse they want to 651 00:29:40,600 --> 00:29:43,080 Speaker 1: cancel a card because they just paid off and then 652 00:29:43,120 --> 00:29:45,440 Speaker 1: balance their credit card debt free, and what they want 653 00:29:45,440 --> 00:29:48,040 Speaker 1: to do is get it out of their life. And 654 00:29:48,400 --> 00:29:50,320 Speaker 1: maybe they're like Marie condoing their life and they're just 655 00:29:50,600 --> 00:29:53,720 Speaker 1: I want just to simplify, simplifying, and that we're cleaning house, close, 656 00:29:53,760 --> 00:29:56,280 Speaker 1: close clothes. And then they find this away. Through this away, 657 00:29:56,320 --> 00:29:59,240 Speaker 1: their credit score takes a beating, right, And that's because, 658 00:29:59,400 --> 00:30:02,000 Speaker 1: first of all, the age of your credit matters. Um 659 00:30:02,080 --> 00:30:04,160 Speaker 1: So the longer you've had the card, the more it's 660 00:30:04,200 --> 00:30:07,680 Speaker 1: helping your score. And yeah, if you cancel it, that's 661 00:30:07,680 --> 00:30:11,560 Speaker 1: gonna that's gonna impact you negatively. Also, credit utilization is 662 00:30:11,640 --> 00:30:15,600 Speaker 1: an important term that you've got to be familiar with. Basically, 663 00:30:15,640 --> 00:30:18,920 Speaker 1: the bureaus want you to have a lot of available 664 00:30:19,080 --> 00:30:22,000 Speaker 1: credit but to be using very very little of it. 665 00:30:22,560 --> 00:30:25,520 Speaker 1: Basically it shows restraint, which makes you look like a 666 00:30:25,520 --> 00:30:27,959 Speaker 1: better borrow. Or it's like, oh, look at look at 667 00:30:28,000 --> 00:30:29,920 Speaker 1: Jack over there, or look at Jill over there. It's 668 00:30:29,920 --> 00:30:33,320 Speaker 1: like they have just so much credit access but they 669 00:30:33,360 --> 00:30:35,320 Speaker 1: used so very little of it. They must be a 670 00:30:35,480 --> 00:30:38,480 Speaker 1: stute borrower who doesn't get in over their head. So yeah, 671 00:30:38,520 --> 00:30:41,360 Speaker 1: instead of canceling a card, we would suggest keeping it 672 00:30:41,400 --> 00:30:44,720 Speaker 1: open even once it's paid off in full, which is 673 00:30:44,760 --> 00:30:46,520 Speaker 1: what we suggest, Like, we don't want you to have 674 00:30:46,560 --> 00:30:49,040 Speaker 1: any credit card debt ever, but um yeah, use it 675 00:30:49,040 --> 00:30:51,200 Speaker 1: every couple of months, continue to pay it off on 676 00:30:51,640 --> 00:30:54,000 Speaker 1: in full and on time, and that card is going 677 00:30:54,080 --> 00:30:57,080 Speaker 1: to keep helping you out, even if you found maybe 678 00:30:57,160 --> 00:31:00,360 Speaker 1: better rewards and parks with another card. Or you're like, listen, 679 00:31:00,400 --> 00:31:02,720 Speaker 1: I'm just add a credit card debt altogether, and I 680 00:31:02,720 --> 00:31:05,480 Speaker 1: don't even want to be bothered by by this thing anymore. Still, 681 00:31:05,600 --> 00:31:07,240 Speaker 1: you can still cut it up, or you can still 682 00:31:07,240 --> 00:31:09,040 Speaker 1: stick it in the freezer, whatever you need to do. 683 00:31:09,440 --> 00:31:11,480 Speaker 1: But what you don't want to do is call the 684 00:31:11,480 --> 00:31:14,840 Speaker 1: credit card company and cancel that card altogether. That's right. 685 00:31:14,880 --> 00:31:17,000 Speaker 1: And you mentioned to using a card like maybe every 686 00:31:17,000 --> 00:31:18,840 Speaker 1: couple of months to kind of keep that line active. 687 00:31:19,240 --> 00:31:21,600 Speaker 1: I'll mention that I've got at least three cards that 688 00:31:21,760 --> 00:31:24,960 Speaker 1: I never used. They are cards that I have laid 689 00:31:24,960 --> 00:31:27,840 Speaker 1: to rest, so to speak. Uh, and I only use 690 00:31:27,920 --> 00:31:29,840 Speaker 1: them one like literally I think once a year now, 691 00:31:30,080 --> 00:31:32,440 Speaker 1: and that at least in my case. You know, your 692 00:31:32,480 --> 00:31:34,560 Speaker 1: mileage may vary, uh, But in my case, I've been 693 00:31:34,600 --> 00:31:36,840 Speaker 1: able to keep those accounts open by literally only using 694 00:31:36,840 --> 00:31:39,520 Speaker 1: those cards once a year, uh. And that is a 695 00:31:39,520 --> 00:31:42,600 Speaker 1: City card, a Discover card, and a Capital One card. Uh. 696 00:31:42,600 --> 00:31:44,440 Speaker 1: And so it may not even take you using it 697 00:31:44,480 --> 00:31:46,239 Speaker 1: every couple of months, but it also too, I mean, 698 00:31:46,280 --> 00:31:48,880 Speaker 1: it kind of depends on how many lines of credit 699 00:31:48,920 --> 00:31:50,640 Speaker 1: you have, right So, if you've got I don't know, 700 00:31:50,680 --> 00:31:53,560 Speaker 1: I mean, if you've got twelve credit cards, if there's 701 00:31:53,640 --> 00:31:56,120 Speaker 1: one that you just really want to get rid of, 702 00:31:56,160 --> 00:31:58,560 Speaker 1: maybe specifically if it has especially if it has an 703 00:31:58,560 --> 00:32:01,600 Speaker 1: annual fee and you're not getting any value from that card, 704 00:32:02,040 --> 00:32:04,280 Speaker 1: that account would be a great candidate to close. First 705 00:32:04,320 --> 00:32:06,560 Speaker 1: of all, you've got multiple lines of credit already, and 706 00:32:06,600 --> 00:32:09,280 Speaker 1: so it's not like you're going to be significantly reducing 707 00:32:09,320 --> 00:32:12,320 Speaker 1: your card utilization. But again, the fact that you're paying 708 00:32:12,840 --> 00:32:15,680 Speaker 1: potentially ninety five bucks a year, whatever the annual fee is, 709 00:32:15,720 --> 00:32:17,600 Speaker 1: you need to make sure that you're actually getting that 710 00:32:17,720 --> 00:32:19,600 Speaker 1: value from that card if you're going to be paying 711 00:32:19,600 --> 00:32:21,240 Speaker 1: that exactly. I think that is one of the only 712 00:32:21,240 --> 00:32:22,640 Speaker 1: reasons I think I have an article up on the 713 00:32:22,680 --> 00:32:25,320 Speaker 1: site about when and how you should go about canceling 714 00:32:25,400 --> 00:32:27,800 Speaker 1: a credit card. It's we'll put that in the show notes. 715 00:32:27,840 --> 00:32:30,680 Speaker 1: But I think, Matt, the one other thing you could 716 00:32:30,680 --> 00:32:32,800 Speaker 1: do if you have a credit card with an annual fee, 717 00:32:32,920 --> 00:32:34,800 Speaker 1: is you can call your credit card company up and say, hey, 718 00:32:34,800 --> 00:32:38,240 Speaker 1: can you actually transfer me to another credit card that 719 00:32:38,360 --> 00:32:41,520 Speaker 1: has no annual fee with the same the same issuer, 720 00:32:41,560 --> 00:32:42,880 Speaker 1: and often times a will to do that, and so 721 00:32:42,920 --> 00:32:45,600 Speaker 1: it retains that credit history. Um, but you still get 722 00:32:45,680 --> 00:32:48,000 Speaker 1: rid of that annual fee. That's kind of pesky. Exactly. Yeah, 723 00:32:48,000 --> 00:32:50,760 Speaker 1: they're happy that you haven't completely lost your allegiance to 724 00:32:50,800 --> 00:32:53,080 Speaker 1: them as a company. Uh. And you are happy because 725 00:32:53,080 --> 00:32:55,600 Speaker 1: you're not having to fork over that money for no 726 00:32:55,800 --> 00:32:58,440 Speaker 1: value in return. And so you know, we also want 727 00:32:58,480 --> 00:33:00,480 Speaker 1: to make sure that you don't feel the need to 728 00:33:00,520 --> 00:33:03,000 Speaker 1: obsess over your credit scored. You touched on this earlier, Joel, 729 00:33:03,040 --> 00:33:06,120 Speaker 1: but like it's it's an important part of your personal finances. 730 00:33:06,400 --> 00:33:09,120 Speaker 1: It's worth keeping tabs on. But it is possible to 731 00:33:09,200 --> 00:33:12,200 Speaker 1: be too attentive to your credit score. Uh. And so 732 00:33:12,320 --> 00:33:14,520 Speaker 1: we want you, if this is you, we want you 733 00:33:14,560 --> 00:33:17,480 Speaker 1: to limit your the amount of time that you're giving it, 734 00:33:17,520 --> 00:33:19,600 Speaker 1: Like maybe just check it once a quarter in order 735 00:33:19,600 --> 00:33:22,120 Speaker 1: to know you know that what your score is looking like. 736 00:33:22,280 --> 00:33:25,640 Speaker 1: You can even just set a calendar reminder for yourself. Uh. 737 00:33:26,040 --> 00:33:28,400 Speaker 1: It is important because it dinged credit score can tip 738 00:33:28,400 --> 00:33:30,920 Speaker 1: you off to something that you might not be aware 739 00:33:30,960 --> 00:33:33,440 Speaker 1: of that might have been added to your credit report, 740 00:33:33,480 --> 00:33:37,240 Speaker 1: maybe even by mistake. Discovers credit scorecard credit Karma they're 741 00:33:37,240 --> 00:33:40,000 Speaker 1: two of our favorite sites for checking your credit. They'll 742 00:33:40,040 --> 00:33:42,000 Speaker 1: even give you a peek under the hood of your 743 00:33:42,000 --> 00:33:44,480 Speaker 1: credit score to see what might be causing the problem 744 00:33:44,800 --> 00:33:47,200 Speaker 1: uh and you'll find some helpful education tools there as well. 745 00:33:47,800 --> 00:33:50,040 Speaker 1: And studies have shown that just knowing your score is 746 00:33:50,080 --> 00:33:53,440 Speaker 1: an important step towards improving it, so that awareness it 747 00:33:53,480 --> 00:33:56,240 Speaker 1: goes a long way towards doing the work to make 748 00:33:56,280 --> 00:33:58,080 Speaker 1: it better. But we don't want it to be something 749 00:33:58,080 --> 00:34:00,000 Speaker 1: that you're checking every single morning, like before you check 750 00:34:00,000 --> 00:34:01,320 Speaker 1: your email, Like it doesn't need to be a part 751 00:34:01,320 --> 00:34:03,720 Speaker 1: of your routine. Yes, no, completely agree. I think that 752 00:34:03,800 --> 00:34:07,240 Speaker 1: the diagnostic feature though of those websites is really helpful 753 00:34:07,280 --> 00:34:09,439 Speaker 1: because if you're saying, Okay, I see what my credit 754 00:34:09,480 --> 00:34:12,120 Speaker 1: score is, it's not in the best spot. I really 755 00:34:12,160 --> 00:34:14,600 Speaker 1: want to raise it to that seven forty plus level 756 00:34:14,640 --> 00:34:16,440 Speaker 1: that Matt and Joel we're talking about. How do I 757 00:34:16,480 --> 00:34:18,520 Speaker 1: get there? Well, you'll see the areas that are holding 758 00:34:18,520 --> 00:34:20,240 Speaker 1: you back, and it might be length of credit history 759 00:34:20,440 --> 00:34:21,719 Speaker 1: that might be one of the biggest things, or it 760 00:34:21,800 --> 00:34:23,719 Speaker 1: might be on time payments, which if you've had a 761 00:34:23,800 --> 00:34:25,399 Speaker 1: few of those, those are going to hurt your credit 762 00:34:25,400 --> 00:34:27,919 Speaker 1: score in a big way. Those will over time fall off. 763 00:34:28,160 --> 00:34:29,719 Speaker 1: But there are all these little things that you can 764 00:34:29,719 --> 00:34:33,799 Speaker 1: see as you're looking at that that diagnostic toolkit on 765 00:34:33,840 --> 00:34:36,440 Speaker 1: those sites where where you can know where to focus 766 00:34:36,440 --> 00:34:38,840 Speaker 1: your efforts on how to make your credit score better. 767 00:34:39,120 --> 00:34:42,200 Speaker 1: And I think, um, yeah, you're not. Don't pay anybody 768 00:34:42,239 --> 00:34:44,480 Speaker 1: money right to do something that they can't actually do. 769 00:34:44,800 --> 00:34:46,480 Speaker 1: But when you look at that and you figure out 770 00:34:46,560 --> 00:34:49,440 Speaker 1: what's holding you back, then you can address it with 771 00:34:49,640 --> 00:34:52,120 Speaker 1: how you handle your credit in the future totally. And 772 00:34:52,160 --> 00:34:53,839 Speaker 1: here's the thing. If you do check your credit score 773 00:34:53,920 --> 00:34:56,040 Speaker 1: and you find out that it's taken a hit, well, 774 00:34:56,080 --> 00:34:58,640 Speaker 1: then make sure to pull your credit report from the 775 00:34:58,680 --> 00:35:01,600 Speaker 1: site Annual Credit report dot com. And I kind of 776 00:35:01,640 --> 00:35:04,120 Speaker 1: alluded to this earlier math that the credit report and 777 00:35:04,120 --> 00:35:06,120 Speaker 1: the score are two different things. The report kind of 778 00:35:06,160 --> 00:35:07,640 Speaker 1: list out all the things that are happening with your 779 00:35:07,640 --> 00:35:10,200 Speaker 1: credit and the score gives you like a numerical reading 780 00:35:10,400 --> 00:35:13,000 Speaker 1: of what you're you know, what's basically on that report. 781 00:35:13,280 --> 00:35:15,480 Speaker 1: And so if there are any errors you're gonna want 782 00:35:15,520 --> 00:35:18,279 Speaker 1: to make sure to file a dispute directly with the 783 00:35:18,360 --> 00:35:21,279 Speaker 1: with the credit bureau where that issue lies. And so yeah, 784 00:35:21,320 --> 00:35:24,640 Speaker 1: something like one in four credit reports contains an error. 785 00:35:24,840 --> 00:35:27,279 Speaker 1: So there's no need to stress if your report has 786 00:35:27,320 --> 00:35:31,640 Speaker 1: something fishy on it. It's not like you are an anomaly. Um. 787 00:35:31,680 --> 00:35:34,399 Speaker 1: A lot of people have have this issue. Sadly. Um, 788 00:35:34,440 --> 00:35:37,000 Speaker 1: the bureaus they don't do an amazing job at responding 789 00:35:37,040 --> 00:35:39,920 Speaker 1: to those disputes. Their track record has only gotten worse 790 00:35:40,000 --> 00:35:43,080 Speaker 1: over the past couple of years. And yeah, here we 791 00:35:43,120 --> 00:35:46,279 Speaker 1: would say that's not right. Um, the credit bureaus need 792 00:35:46,360 --> 00:35:49,520 Speaker 1: to do a better job. And it is borderline infuriating 793 00:35:49,560 --> 00:35:52,200 Speaker 1: that they have the powers that they have to amass 794 00:35:52,280 --> 00:35:54,600 Speaker 1: all the data on us that they do and then 795 00:35:54,640 --> 00:35:58,720 Speaker 1: to package and sell our credit scores um without actually 796 00:35:58,760 --> 00:36:01,480 Speaker 1: having to verify that the information is accurate. But here's 797 00:36:01,480 --> 00:36:03,000 Speaker 1: the thing. You've got to be the squeaky wheel in 798 00:36:03,040 --> 00:36:06,000 Speaker 1: order to get that error fixed, because the credit bureaus 799 00:36:06,040 --> 00:36:08,520 Speaker 1: they're big, behemous, and yeah, you've got to be like 800 00:36:08,800 --> 00:36:11,520 Speaker 1: that little David beating up a goliath in order to 801 00:36:11,600 --> 00:36:14,440 Speaker 1: get um change actually to happen to make sure your 802 00:36:14,480 --> 00:36:17,880 Speaker 1: credit score reflects accurately the truth about what's happening with 803 00:36:17,920 --> 00:36:20,759 Speaker 1: your credit. That's right. And by the way, real quick 804 00:36:20,800 --> 00:36:23,000 Speaker 1: annual credit report dot Com you can still go there, 805 00:36:23,160 --> 00:36:25,120 Speaker 1: Like they should call it weekly credit report dot com 806 00:36:25,680 --> 00:36:28,000 Speaker 1: because like it was the middle of the pandemic when 807 00:36:28,000 --> 00:36:30,279 Speaker 1: they switched to you being able to get all three 808 00:36:30,320 --> 00:36:34,000 Speaker 1: reports for free every single week. Um, but I hope 809 00:36:34,040 --> 00:36:36,560 Speaker 1: that becomes normal forever. Well, things haven't changed yet, but 810 00:36:36,560 --> 00:36:38,920 Speaker 1: it's said to go back in the middle of April 811 00:36:39,120 --> 00:36:42,000 Speaker 1: to reset, and so those free weekly reports are running out. 812 00:36:42,040 --> 00:36:43,920 Speaker 1: So if if that's something you haven't done yet, now 813 00:36:43,920 --> 00:36:45,239 Speaker 1: would be a great time to go ahead and get 814 00:36:45,239 --> 00:36:47,400 Speaker 1: get in there and get all three before the usual 815 00:36:47,560 --> 00:36:49,920 Speaker 1: rules come back to play. But but like you're s angel, like, 816 00:36:49,920 --> 00:36:52,400 Speaker 1: we're not big fans of the credit report the scoring 817 00:36:52,400 --> 00:36:55,719 Speaker 1: system as it stands, largely because of the propensity for 818 00:36:55,800 --> 00:36:58,600 Speaker 1: the errors that you're just talking about and the reality 819 00:36:58,640 --> 00:37:00,840 Speaker 1: that the credit bureaus like they could or less about 820 00:37:00,880 --> 00:37:03,799 Speaker 1: the errors themselves or helping you to resolve them, because again, 821 00:37:03,960 --> 00:37:06,960 Speaker 1: you are not the customer. Uh, they are selling your 822 00:37:07,040 --> 00:37:10,440 Speaker 1: data to their actual customers. You are the data. But 823 00:37:10,480 --> 00:37:13,200 Speaker 1: those errors they can prevent. Folks, from getting loans, you know, 824 00:37:13,239 --> 00:37:17,240 Speaker 1: even sometimes getting jobs. But credit scores are a reality 825 00:37:17,280 --> 00:37:19,719 Speaker 1: that we all have to deal with. Um. Not paying 826 00:37:19,760 --> 00:37:22,320 Speaker 1: attention to your credit score or pretending that it doesn't exist, 827 00:37:22,560 --> 00:37:26,040 Speaker 1: that's going to eventually have a negative impact on your life. 828 00:37:26,239 --> 00:37:27,799 Speaker 1: You're not gonna be able to qualify for a home 829 00:37:27,840 --> 00:37:29,480 Speaker 1: loan that you really want, or you know, maybe you 830 00:37:29,480 --> 00:37:32,080 Speaker 1: won't qualify for the best interest rate at least uh, 831 00:37:32,120 --> 00:37:35,040 Speaker 1: increasing the monthly cost of that mortgage. You can hate 832 00:37:35,080 --> 00:37:37,799 Speaker 1: the game, but it is still smart to play it. Like, 833 00:37:37,840 --> 00:37:39,880 Speaker 1: even when the rules of the game are changing, like 834 00:37:39,960 --> 00:37:42,200 Speaker 1: even by now pay later, that is starting to become 835 00:37:42,200 --> 00:37:45,359 Speaker 1: something that is getting incorporated into credit scores. It's something 836 00:37:45,400 --> 00:37:47,759 Speaker 1: that we all need to be aware of. We need 837 00:37:47,800 --> 00:37:49,440 Speaker 1: to know how to play the games, even if we're 838 00:37:49,480 --> 00:37:51,839 Speaker 1: not the biggest fan of the game. Yeah, so let's 839 00:37:51,840 --> 00:37:55,160 Speaker 1: give a few final tips, just kind of maybe to 840 00:37:55,200 --> 00:37:57,279 Speaker 1: sum it up. Yeah, like, well, how are just a 841 00:37:57,320 --> 00:37:59,680 Speaker 1: few ways if we were going to give you just 842 00:38:00,239 --> 00:38:02,920 Speaker 1: three or four suggestions on how to improve your credit 843 00:38:02,960 --> 00:38:05,800 Speaker 1: score the most quickly, right, what were your big takeaways 844 00:38:05,840 --> 00:38:09,560 Speaker 1: with the effort? Right? Um, I would say that kind 845 00:38:09,560 --> 00:38:11,040 Speaker 1: of thing. One thing, of course, is to pay your 846 00:38:11,040 --> 00:38:14,319 Speaker 1: bills on time, right, Um, and the if you don't 847 00:38:14,360 --> 00:38:16,120 Speaker 1: do that, that is going to doing your credit more 848 00:38:16,120 --> 00:38:19,439 Speaker 1: than anything else. Um, Late pays or not paying are 849 00:38:19,480 --> 00:38:22,720 Speaker 1: going to be the worst reflection on you as a borrower, 850 00:38:22,840 --> 00:38:25,960 Speaker 1: and they're gonna crush your score. And a single missed payment, 851 00:38:26,080 --> 00:38:29,680 Speaker 1: Matt can lop a hundred points off of somebody's credit score. Um, 852 00:38:29,760 --> 00:38:33,000 Speaker 1: So yeah, use that smartly pay off your debts as 853 00:38:33,040 --> 00:38:35,160 Speaker 1: you've agreed to. Basically, you don't want to get in 854 00:38:35,280 --> 00:38:38,440 Speaker 1: over your head. Don't kid yourself into thinking that taking 855 00:38:38,440 --> 00:38:41,320 Speaker 1: on a big car loan is is smart just because 856 00:38:41,360 --> 00:38:44,280 Speaker 1: it's gonna give your score a bump. Um, that's that's 857 00:38:44,680 --> 00:38:47,720 Speaker 1: a bad move. Intelligently using a few different credit cards 858 00:38:47,719 --> 00:38:49,799 Speaker 1: each month to pay for your needs and then paying 859 00:38:49,880 --> 00:38:53,240 Speaker 1: those balances in full is helpful and then don't close 860 00:38:53,280 --> 00:38:56,120 Speaker 1: those accounts. So, yeah, you want access to these varied 861 00:38:56,239 --> 00:38:58,959 Speaker 1: kinds of credit, but only credit that you can handle, 862 00:38:59,000 --> 00:39:02,360 Speaker 1: only credit that you can use wisely. And yeah, credit 863 00:39:02,400 --> 00:39:06,160 Speaker 1: cards are a portion of those. Using them intelligently is 864 00:39:06,160 --> 00:39:09,239 Speaker 1: going to help your score. Having seasoned credit in your 865 00:39:09,239 --> 00:39:11,479 Speaker 1: possession is a good thing to write. Like we said, 866 00:39:11,480 --> 00:39:14,400 Speaker 1: the longer you've had some of those credit products around 867 00:39:14,440 --> 00:39:16,640 Speaker 1: in your life, especially some of those credit cards that 868 00:39:16,680 --> 00:39:19,160 Speaker 1: you've had for a decade plus. It's like, you don't 869 00:39:19,160 --> 00:39:21,920 Speaker 1: want to get rid of that because that is having 870 00:39:22,080 --> 00:39:25,640 Speaker 1: a helpful impact on your credit score. And and and 871 00:39:25,640 --> 00:39:28,359 Speaker 1: then Matt for for somebody out there who says, I've 872 00:39:28,360 --> 00:39:30,799 Speaker 1: got a really bad score and you know, I can't 873 00:39:30,800 --> 00:39:34,319 Speaker 1: even get a credit card right now, Well, um, if 874 00:39:34,360 --> 00:39:36,239 Speaker 1: your credit score is in really poor shape, we would 875 00:39:36,239 --> 00:39:39,520 Speaker 1: recommend a site like self dot ink, and that's our 876 00:39:39,520 --> 00:39:41,920 Speaker 1: favorite place for people to turn. They have these credit 877 00:39:41,960 --> 00:39:44,120 Speaker 1: builder accounts and they're a great way to quickly build 878 00:39:44,200 --> 00:39:47,200 Speaker 1: up your score through a credit builder a loan. So 879 00:39:47,239 --> 00:39:49,560 Speaker 1: that's one of the first things we would recommend. That's 880 00:39:49,560 --> 00:39:51,520 Speaker 1: one of the best places to go to be able 881 00:39:51,560 --> 00:39:54,839 Speaker 1: to quickly start jump starting your score. Um. But yeah, 882 00:39:54,920 --> 00:39:57,800 Speaker 1: I think we actually did an episode specifically for people 883 00:39:57,920 --> 00:40:00,600 Speaker 1: who have a rough or or busted up. It's right 884 00:40:01,040 --> 00:40:03,200 Speaker 1: so one thirteen. If you want to dig back into 885 00:40:03,239 --> 00:40:04,960 Speaker 1: the archives and listen to that one, Okay, yeah, we'll 886 00:40:04,960 --> 00:40:07,040 Speaker 1: link that in the show notes as well. But yeah, 887 00:40:07,040 --> 00:40:08,879 Speaker 1: there are different tactics that you're gonna want to take 888 00:40:09,080 --> 00:40:12,200 Speaker 1: if your credit score is already just completely in the 889 00:40:12,239 --> 00:40:14,279 Speaker 1: dumps um. But again, this is one of those things 890 00:40:14,520 --> 00:40:16,759 Speaker 1: that you can do and you do not need the 891 00:40:16,760 --> 00:40:19,560 Speaker 1: help of some faux internet professional um to get you 892 00:40:19,600 --> 00:40:21,279 Speaker 1: to where you need to be. That's right. And by 893 00:40:21,320 --> 00:40:23,919 Speaker 1: the way, if you have kids and you want them 894 00:40:23,960 --> 00:40:26,879 Speaker 1: to reach adulthood and have a great credit score, it's 895 00:40:26,880 --> 00:40:28,640 Speaker 1: actually pretty easy to get them started off on the 896 00:40:28,719 --> 00:40:31,359 Speaker 1: right foot. One of the best ways to accomplish this 897 00:40:31,480 --> 00:40:34,160 Speaker 1: is to make them an authorized user on one of 898 00:40:34,200 --> 00:40:37,120 Speaker 1: your credit card accounts, but not give them an actual card. 899 00:40:37,120 --> 00:40:40,160 Speaker 1: And that's the trick. You don't want your eight year old, 900 00:40:40,160 --> 00:40:42,239 Speaker 1: I guess, running around with a credit card. But this 901 00:40:42,280 --> 00:40:44,759 Speaker 1: assumes that you have and you continue to have and 902 00:40:44,800 --> 00:40:47,720 Speaker 1: maintain good credit. But the credit bureaus, they're gonna see 903 00:40:47,840 --> 00:40:50,960 Speaker 1: your child with access to that good credit you know themselves, 904 00:40:51,120 --> 00:40:54,600 Speaker 1: and it will, by association, inflate their credit worthiness. It's 905 00:40:54,640 --> 00:40:56,640 Speaker 1: a nice little, nice little tit nice little hack. We've 906 00:40:56,640 --> 00:40:58,680 Speaker 1: talked about this maybe on the show. Was like a 907 00:40:58,719 --> 00:41:01,200 Speaker 1: year ago, maybe year and a half ago, and I 908 00:41:01,239 --> 00:41:03,920 Speaker 1: haven't checked my kids credit. But at that point in time, 909 00:41:04,040 --> 00:41:07,040 Speaker 1: I added my kids to one of my cards. They're 910 00:41:07,040 --> 00:41:09,160 Speaker 1: still on that card. I still use that card. And 911 00:41:09,200 --> 00:41:11,520 Speaker 1: pay it off on time in full. Uh so, I'm 912 00:41:11,560 --> 00:41:13,520 Speaker 1: guessing they've got pretty stellar credit. I think they say 913 00:41:13,520 --> 00:41:15,879 Speaker 1: their prayers every night, like please Lord, lid Daddy pay 914 00:41:15,920 --> 00:41:18,520 Speaker 1: his credit card building well so he doesn't hurt my credit. Now, 915 00:41:18,800 --> 00:41:20,399 Speaker 1: But now you're right, like that is one of those 916 00:41:20,400 --> 00:41:23,279 Speaker 1: things that you can do for your kids, and it 917 00:41:23,280 --> 00:41:25,839 Speaker 1: can be really helpful for it's it's like a nice 918 00:41:25,840 --> 00:41:27,879 Speaker 1: little service UNI starting them off on the right foot 919 00:41:27,880 --> 00:41:29,640 Speaker 1: a little bit of credit. Yeah. Um, all right, I 920 00:41:29,680 --> 00:41:31,680 Speaker 1: want to ask you one one question here at the end, 921 00:41:32,000 --> 00:41:35,520 Speaker 1: because I think, um, right now, credit scores still matter 922 00:41:35,600 --> 00:41:38,120 Speaker 1: a great deal in our society, right and it's one 923 00:41:38,120 --> 00:41:40,120 Speaker 1: of the things that we're saying that you kind of 924 00:41:40,160 --> 00:41:42,040 Speaker 1: can't get around. You have to pay attention to it. 925 00:41:42,040 --> 00:41:44,719 Speaker 1: It's part of the game, the personal finance game that 926 00:41:44,719 --> 00:41:46,640 Speaker 1: we all play, and so you just have to be 927 00:41:46,680 --> 00:41:49,520 Speaker 1: ready to suit up and do your best. But um, yeah, 928 00:41:49,560 --> 00:41:52,240 Speaker 1: do you think that credit scores in their current iteration 929 00:41:52,360 --> 00:41:55,520 Speaker 1: are think okay, like you're diving into the fiction now, Yeah, 930 00:41:55,560 --> 00:41:58,480 Speaker 1: the possibilities I only deal in fact, ten years in 931 00:41:58,520 --> 00:42:00,719 Speaker 1: the future, will credit scores play as big of an 932 00:42:00,719 --> 00:42:03,240 Speaker 1: impact in our personal finance lives as they do today, 933 00:42:03,280 --> 00:42:06,840 Speaker 1: I mean they do now. I think as different apps 934 00:42:07,120 --> 00:42:09,360 Speaker 1: come online, like basically all I feel like all the 935 00:42:09,360 --> 00:42:12,120 Speaker 1: different UH finance apps are in an arms race right 936 00:42:12,120 --> 00:42:15,920 Speaker 1: to get as many customers as possible. Whether that's initially 937 00:42:16,280 --> 00:42:18,160 Speaker 1: UH an app that allows you to transfer money to 938 00:42:18,160 --> 00:42:20,319 Speaker 1: your friends very easily because they have that app as well, 939 00:42:20,640 --> 00:42:22,360 Speaker 1: and then all of a sudden, guess what, Oh, you 940 00:42:22,360 --> 00:42:24,359 Speaker 1: can buy a bitcoin with that app. So you all 941 00:42:24,360 --> 00:42:26,239 Speaker 1: of a sudden, now you can transfer money, you can 942 00:42:26,280 --> 00:42:29,600 Speaker 1: save in that app, and you can also quote unquote invest. UH. 943 00:42:29,800 --> 00:42:32,000 Speaker 1: The next thing that a lot of these apps and 944 00:42:32,160 --> 00:42:34,759 Speaker 1: you know, money management platforms I think are allowing their 945 00:42:34,800 --> 00:42:37,520 Speaker 1: customers to do is then borrow money, which guess what 946 00:42:37,840 --> 00:42:39,839 Speaker 1: if they know all of your transactions and they have 947 00:42:39,920 --> 00:42:43,480 Speaker 1: your history, I could see them not necessarily needing to 948 00:42:43,480 --> 00:42:45,960 Speaker 1: go to the credit bureers and get an actual credit 949 00:42:46,000 --> 00:42:48,680 Speaker 1: report or credit score from them. Uh. So it depends, 950 00:42:48,880 --> 00:42:52,160 Speaker 1: I guess, on what the future of the different finance 951 00:42:52,200 --> 00:42:54,600 Speaker 1: apps look like. That is one path forward, but I'm 952 00:42:54,600 --> 00:42:56,080 Speaker 1: not going to say that that's where we're going. I'm 953 00:42:56,080 --> 00:42:59,040 Speaker 1: just kind of I'm laying out the future like this 954 00:42:59,120 --> 00:43:01,640 Speaker 1: could happen, or this could happen. I'm not going to 955 00:43:01,760 --> 00:43:04,760 Speaker 1: necessarily say that that will happen, but do you disagree 956 00:43:04,840 --> 00:43:07,399 Speaker 1: like you seem less optimistic about the future of credit 957 00:43:07,440 --> 00:43:10,319 Speaker 1: score People are so fed up and frustrated with the 958 00:43:10,320 --> 00:43:12,480 Speaker 1: credit bureaus. Something's going to give at some point, and 959 00:43:12,480 --> 00:43:15,000 Speaker 1: I think we've already seen alternative They fed up? Or 960 00:43:15,040 --> 00:43:17,160 Speaker 1: do people just not care? Right Like, like when there's 961 00:43:17,160 --> 00:43:22,160 Speaker 1: a data breach and fifty million people have have there's 962 00:43:21,960 --> 00:43:24,279 Speaker 1: a security just floating around out there in the dark, 963 00:43:25,640 --> 00:43:29,040 Speaker 1: hundred fifty Like people don't care. Were they still have 964 00:43:29,080 --> 00:43:32,280 Speaker 1: the same passwords that they've used for five years? Uh? 965 00:43:32,920 --> 00:43:36,800 Speaker 1: You included I know some of your passwords, and I'm 966 00:43:36,840 --> 00:43:38,440 Speaker 1: always like, I'm pretty sure I can guess you know, 967 00:43:38,480 --> 00:43:40,000 Speaker 1: I'm trying to break in my accounts? Well your new 968 00:43:40,000 --> 00:43:44,879 Speaker 1: Netflix passwords? Okay, Well, I'll say this. I think that 969 00:43:44,880 --> 00:43:47,640 Speaker 1: that you know, they get the highest complaints of when 970 00:43:47,680 --> 00:43:49,879 Speaker 1: it comes to scam attempts, that is when it comes 971 00:43:50,200 --> 00:43:51,960 Speaker 1: shut down. And I think that some folks in the 972 00:43:51,960 --> 00:43:55,719 Speaker 1: in the government have already floated the idea that maybe, um, 973 00:43:56,120 --> 00:43:58,600 Speaker 1: a centralized control of credit scores can take place, some 974 00:43:58,600 --> 00:44:00,719 Speaker 1: sort of government run system. I don't know if that 975 00:44:00,719 --> 00:44:06,080 Speaker 1: would be better because the somewhat not really privatized system 976 00:44:06,120 --> 00:44:08,680 Speaker 1: we have right now isn't working very well either. Um 977 00:44:08,719 --> 00:44:12,600 Speaker 1: but I could see just companies making decisions based on 978 00:44:12,680 --> 00:44:15,600 Speaker 1: some of your other public profiles, um so how you 979 00:44:15,640 --> 00:44:18,600 Speaker 1: act on social media and maybe oh my gosh it, 980 00:44:18,680 --> 00:44:21,000 Speaker 1: I know, but I think it's already happening to a 981 00:44:21,000 --> 00:44:23,000 Speaker 1: certain extent. I'm curious to see what happens over the 982 00:44:23,000 --> 00:44:25,120 Speaker 1: next ten years. But it's interesting. So you see it 983 00:44:25,120 --> 00:44:29,120 Speaker 1: maybe going towards a more centralized, you know, mechanism, either 984 00:44:29,160 --> 00:44:31,480 Speaker 1: more centralized or completely decentral I see it being more 985 00:44:31,520 --> 00:44:34,799 Speaker 1: decentralized with these independent different companies who are setting up 986 00:44:34,800 --> 00:44:37,160 Speaker 1: shops with either within an app or just with it 987 00:44:37,200 --> 00:44:38,759 Speaker 1: within a site, but I think more likely and they 988 00:44:38,760 --> 00:44:40,799 Speaker 1: start to communicate to each other when they need like 989 00:44:40,840 --> 00:44:43,560 Speaker 1: some respective information to kind of fill out all the 990 00:44:43,600 --> 00:44:45,640 Speaker 1: dots on. I could see that an application that you've 991 00:44:46,400 --> 00:44:49,360 Speaker 1: that you've submitted that definitely feels less big brother, you know, 992 00:44:49,440 --> 00:44:51,440 Speaker 1: I mean, come on, the future is on the blockchain anyway, 993 00:44:51,480 --> 00:44:54,239 Speaker 1: So like that's less direction we're going. But that's gonna 994 00:44:54,239 --> 00:44:55,799 Speaker 1: be it for credit scores, dude. Let's talk about this 995 00:44:55,960 --> 00:45:00,560 Speaker 1: beer for this episode. This was Hello World by Eyeglass 996 00:45:00,600 --> 00:45:03,600 Speaker 1: Brewing Company. Uh, sent to us by Gary. What were 997 00:45:03,600 --> 00:45:05,759 Speaker 1: your thoughts on this beer? All right? So I think 998 00:45:05,760 --> 00:45:08,239 Speaker 1: this was maybe even a touch better than Monday's beer. 999 00:45:08,600 --> 00:45:10,200 Speaker 1: Really it's hard to say that, but I thought you're 1000 00:45:10,200 --> 00:45:12,799 Speaker 1: gonna say that this one wasn't as good because I 1001 00:45:12,800 --> 00:45:14,960 Speaker 1: thought this one was a touch sweeter. Okay, it was 1002 00:45:15,000 --> 00:45:17,160 Speaker 1: a little bit sweeter. It was like a little more juicy, 1003 00:45:17,280 --> 00:45:19,960 Speaker 1: a little more yeah, Like I don't know, just juicy 1004 00:45:20,080 --> 00:45:21,920 Speaker 1: is the I think you're up in my head, but 1005 00:45:21,960 --> 00:45:23,960 Speaker 1: I don't know. Man. I really enjoyed both these beers. 1006 00:45:24,000 --> 00:45:26,680 Speaker 1: They were both really really different examples of hazy I 1007 00:45:26,719 --> 00:45:29,560 Speaker 1: p A s having different hot profiles. It is just 1008 00:45:29,600 --> 00:45:33,680 Speaker 1: amazing the way that different hot varieties mixed together can 1009 00:45:33,719 --> 00:45:36,560 Speaker 1: create just a completely different profile. And it always surprises 1010 00:45:36,560 --> 00:45:38,480 Speaker 1: me where I'm like, wait, no fruits used in this 1011 00:45:38,600 --> 00:45:40,840 Speaker 1: or wait a second, it's just like two different hops 1012 00:45:40,920 --> 00:45:44,160 Speaker 1: and that completely changed like the flavor profile. But hops 1013 00:45:44,160 --> 00:45:47,799 Speaker 1: are just so um versatile, and so this beer just 1014 00:45:47,880 --> 00:45:50,440 Speaker 1: kind of showcased a different kind of hop that had 1015 00:45:50,480 --> 00:45:53,600 Speaker 1: a distinctly different flavor profile. But Gary just sending us 1016 00:45:53,680 --> 00:45:56,640 Speaker 1: some slammer beers this week. Man. Yeah. Absolutely, which, by 1017 00:45:56,640 --> 00:45:58,360 Speaker 1: the way, so you're saying, oh, there's no fruit in 1018 00:45:58,360 --> 00:46:00,600 Speaker 1: this beer makes takes me back to one of the 1019 00:46:00,600 --> 00:46:03,320 Speaker 1: beers that we said that on, which was Woodland Pursuit. 1020 00:46:03,520 --> 00:46:05,799 Speaker 1: That was a Humble Forger beer, And it turns out 1021 00:46:05,920 --> 00:46:08,239 Speaker 1: I did look it up and in fact, it did 1022 00:46:08,280 --> 00:46:10,839 Speaker 1: have fruit in it on the can. They don't want 1023 00:46:10,880 --> 00:46:12,640 Speaker 1: to advertise it. Yeah, on the can, it didn't say 1024 00:46:12,640 --> 00:46:14,800 Speaker 1: anything about fruit anywhere on the can. But when you 1025 00:46:14,880 --> 00:46:16,759 Speaker 1: go and go to the website or you know, go 1026 00:46:16,800 --> 00:46:20,080 Speaker 1: to the brewery, it actually was a fruited I believe 1027 00:46:20,120 --> 00:46:21,800 Speaker 1: it was a fruited I PA because that one was 1028 00:46:22,280 --> 00:46:24,680 Speaker 1: Woodland Pursuit. It was crazy off the chain fruit and 1029 00:46:24,719 --> 00:46:27,839 Speaker 1: you and I were just like racking our brains. Were 1030 00:46:27,880 --> 00:46:29,680 Speaker 1: they able to pull that kind of fruit flavor out 1031 00:46:29,680 --> 00:46:31,440 Speaker 1: of this beer without any actual fruit and only with 1032 00:46:31,480 --> 00:46:33,640 Speaker 1: the hops. I don't think that's what's going on here. 1033 00:46:33,719 --> 00:46:36,160 Speaker 1: This This tastes like a classic hazy double I p 1034 00:46:36,280 --> 00:46:38,760 Speaker 1: A and I wanted to point out to the label 1035 00:46:38,760 --> 00:46:42,720 Speaker 1: for this one. I love it's uh black background green 1036 00:46:43,040 --> 00:46:45,640 Speaker 1: ms DOS print. It reminds me a lot of one 1037 00:46:45,680 --> 00:46:48,799 Speaker 1: of our favorite local brewis here. Halfway Crooks where they're 1038 00:46:48,840 --> 00:46:50,480 Speaker 1: kind of going with like that. I don't know what 1039 00:46:50,480 --> 00:46:52,719 Speaker 1: do you call it, like nerd sheep or something like that, 1040 00:46:53,000 --> 00:46:56,480 Speaker 1: but Halfway Crooks they've combined like the old world with 1041 00:46:56,520 --> 00:47:00,400 Speaker 1: like sheep and the European tradition of pilseners and aggers. 1042 00:47:00,440 --> 00:47:02,400 Speaker 1: Sounds weird, but they do it wet and combined it 1043 00:47:02,840 --> 00:47:06,400 Speaker 1: with the nursery of Ms. Doss in the early computer days, 1044 00:47:06,600 --> 00:47:08,600 Speaker 1: which funny enough. I mean, that's just that's that's the 1045 00:47:08,600 --> 00:47:11,760 Speaker 1: perfect blend of the two dudes that started that brewery 1046 00:47:11,920 --> 00:47:15,280 Speaker 1: because one of them is from Belgium, yod On, and 1047 00:47:15,400 --> 00:47:19,160 Speaker 1: the other owner is Sean He's from Georgia Tech. It's 1048 00:47:19,200 --> 00:47:20,760 Speaker 1: another one of the reasons why we love that brewery 1049 00:47:20,760 --> 00:47:23,239 Speaker 1: so much. So if you haven't, just right now just 1050 00:47:23,239 --> 00:47:25,600 Speaker 1: starch Halfway Crooks and just check out their merch. We 1051 00:47:25,680 --> 00:47:28,239 Speaker 1: think it is just the dopest stuff around. And I 1052 00:47:28,280 --> 00:47:30,440 Speaker 1: feel bad because we should be talking about spyglass, but 1053 00:47:30,640 --> 00:47:33,240 Speaker 1: that we're talking about one of our favorite similar aesthetic 1054 00:47:33,280 --> 00:47:35,480 Speaker 1: and it's similar aesthetics on this beer. You'll see in 1055 00:47:35,480 --> 00:47:38,160 Speaker 1: the picture of this label. Why we're talking about you 1056 00:47:38,160 --> 00:47:41,239 Speaker 1: compare something that you've just experienced to something that you 1057 00:47:41,600 --> 00:47:44,719 Speaker 1: love and consider to be excellent. I feel like that 1058 00:47:44,760 --> 00:47:47,040 Speaker 1: is the highest compliment. It's a good sign. So Spy 1059 00:47:47,080 --> 00:47:49,960 Speaker 1: Glass Rocks, thank you Gary and company for sending this 1060 00:47:50,000 --> 00:47:52,120 Speaker 1: one our way. We appreciate it. And Matt, that's gonna 1061 00:47:52,160 --> 00:47:54,560 Speaker 1: do it for this episode. For folks who want the 1062 00:47:54,560 --> 00:47:56,279 Speaker 1: show notes links to some of the things that we 1063 00:47:56,320 --> 00:47:58,799 Speaker 1: mentioned on this episode, just go to our website at 1064 00:47:58,840 --> 00:48:01,719 Speaker 1: how to money dot com. That's right. So that's gonna 1065 00:48:01,760 --> 00:48:04,759 Speaker 1: be it until next time. Best Friends Out, Best Friends Out.