1 00:00:00,160 --> 00:00:04,400 Speaker 1: Well, Merry Christmas buddy, same to you. Yeah, so obviously 2 00:00:04,640 --> 00:00:08,119 Speaker 1: this is Christmas Day. We hope that maybe there's like 3 00:00:08,119 --> 00:00:10,320 Speaker 1: a Christmas Ham going on inside the house, like like 4 00:00:10,880 --> 00:00:13,560 Speaker 1: amazing flavors wafting through the house. Maybe you're outside in 5 00:00:13,600 --> 00:00:16,840 Speaker 1: the cold shoveling some snow. Basically, it's like that's where 6 00:00:16,840 --> 00:00:20,360 Speaker 1: you live. It's like a Norman Rockwell painting, except for earbuds. 7 00:00:20,400 --> 00:00:23,400 Speaker 1: You've got those in your ears. Those did not exist 8 00:00:23,440 --> 00:00:23,760 Speaker 1: back then. 9 00:00:23,840 --> 00:00:25,160 Speaker 2: And you're like, what are Matt and Joel Eve been 10 00:00:25,160 --> 00:00:27,600 Speaker 2: doing working on Christmas Day? Are they like ebenez Or 11 00:00:27,600 --> 00:00:29,440 Speaker 2: screws They don't take of course. 12 00:00:29,520 --> 00:00:31,800 Speaker 1: Yeah, we've recorded this ahead of time, but we did 13 00:00:31,840 --> 00:00:33,559 Speaker 1: want to make sure that you had an episode here 14 00:00:33,680 --> 00:00:36,920 Speaker 1: in case you were stay outside working shoveling snow or 15 00:00:36,960 --> 00:00:39,360 Speaker 1: something like that. Maybe you're on the road to visit family, 16 00:00:39,600 --> 00:00:42,640 Speaker 1: loved ones, some friends. But we've got an episode here 17 00:00:42,680 --> 00:00:44,879 Speaker 1: to line up for you where we are busting up 18 00:00:44,920 --> 00:00:47,760 Speaker 1: some of the different credit myths that exist out there. 19 00:00:47,840 --> 00:00:50,080 Speaker 1: This is one of our besty episodes. 20 00:00:50,159 --> 00:00:52,560 Speaker 2: Yeah, there's a lot, there's a lot of bogus information 21 00:00:52,600 --> 00:00:54,720 Speaker 2: when it comes to getting your credit score right. It's 22 00:00:54,720 --> 00:00:58,080 Speaker 2: such an important part of your personal financial life, and 23 00:00:58,120 --> 00:01:00,160 Speaker 2: so we figured, hey, we're not on a Christmas they 24 00:01:00,200 --> 00:01:02,120 Speaker 2: we'll toss this one out there. So thank you, as 25 00:01:02,120 --> 00:01:04,560 Speaker 2: always for listening to the show. We hope you enjoy this. Besty, 26 00:01:05,000 --> 00:01:07,960 Speaker 2: Welcome to How the Money. I'm Joel and I am Matt, 27 00:01:08,000 --> 00:01:10,880 Speaker 2: and today we are busting up some credit score myths. 28 00:01:29,959 --> 00:01:34,000 Speaker 2: Credit scores, baby, everybody's got one. It's kind of like 29 00:01:34,040 --> 00:01:34,960 Speaker 2: a belly buddy like. 30 00:01:35,280 --> 00:01:37,960 Speaker 1: But oh, it makes me think of everyone poops. Did 31 00:01:38,000 --> 00:01:40,080 Speaker 1: you know that book? Yes? I do. I think that 32 00:01:40,120 --> 00:01:43,200 Speaker 1: book's on my mind because we are considering potty training 33 00:01:43,400 --> 00:01:46,920 Speaker 1: Westy to cut out diapers from our monthly grocery. 34 00:01:46,959 --> 00:01:47,800 Speaker 2: But wouldn't that be nice? 35 00:01:47,920 --> 00:01:48,080 Speaker 1: Girl? 36 00:01:48,360 --> 00:01:50,200 Speaker 2: Are y'all thinking about doing that soon? Yeah, we'd like to. 37 00:01:50,240 --> 00:01:52,640 Speaker 2: It's but the problem is, you know, you have three girls. 38 00:01:52,680 --> 00:01:55,280 Speaker 2: I have two girls, and everybody says it's so much 39 00:01:55,280 --> 00:01:57,440 Speaker 2: easier to potty train girls. So I'm like, we really 40 00:01:57,480 --> 00:01:58,840 Speaker 2: nervous about potty training a boy. 41 00:01:58,960 --> 00:02:01,520 Speaker 1: Yeah, we've pulled down the the little Ikea Green, the 42 00:02:01,520 --> 00:02:03,800 Speaker 1: Green and white little Ikia body got the same heat. 43 00:02:03,840 --> 00:02:07,480 Speaker 1: Westy's totally interested in it. We just haven't pulled the 44 00:02:07,480 --> 00:02:09,840 Speaker 1: plug yet. But I told Kay the last package of 45 00:02:09,880 --> 00:02:11,880 Speaker 1: diapers that we just got. I was like, that is it, Like, 46 00:02:11,960 --> 00:02:15,240 Speaker 1: let's commit, let's do it. We're gonna cold turkey do 47 00:02:15,320 --> 00:02:17,359 Speaker 1: the thing where you know, there's this whole approach I 48 00:02:17,360 --> 00:02:18,800 Speaker 1: don't want to go into, takes like a full weekend 49 00:02:18,800 --> 00:02:20,560 Speaker 1: of dedicated. Yeah, Like there's this approach where you just 50 00:02:20,600 --> 00:02:22,799 Speaker 1: go cold turkey and you just let them go all 51 00:02:23,000 --> 00:02:26,760 Speaker 1: eyes on the little dude, and basically they don't like 52 00:02:26,840 --> 00:02:29,440 Speaker 1: that feeling of having just soiled themselves, and so they 53 00:02:29,480 --> 00:02:32,239 Speaker 1: quickly learn like like even at night, no pull ups, 54 00:02:32,320 --> 00:02:34,360 Speaker 1: nothing like that. Just like everyone poops, everyone does have 55 00:02:34,360 --> 00:02:36,079 Speaker 1: a credit score. And that's what we're talking about today. 56 00:02:36,120 --> 00:02:36,440 Speaker 1: That's right. 57 00:02:36,480 --> 00:02:38,000 Speaker 2: Yeah, But before we get to that real quick, mat, 58 00:02:38,000 --> 00:02:40,160 Speaker 2: I just want to mention it is the beginning of 59 00:02:40,600 --> 00:02:44,120 Speaker 2: spring right now. Basically like warmer weather and what happens 60 00:02:44,240 --> 00:02:45,720 Speaker 2: when the weather gets warm. 61 00:02:45,880 --> 00:02:47,680 Speaker 1: The flowers are blooming, that's true, but. 62 00:02:47,840 --> 00:02:50,920 Speaker 2: Also the bugs come out, right and so especially in 63 00:02:50,960 --> 00:02:53,680 Speaker 2: the South. Like I just had a tenant email me 64 00:02:53,720 --> 00:02:55,480 Speaker 2: the other day and she's like, hey, by the way, 65 00:02:55,520 --> 00:02:57,040 Speaker 2: I want to let you know, start to see some 66 00:02:57,040 --> 00:02:59,960 Speaker 2: more bug activity at the house, which is my reminder 67 00:03:00,240 --> 00:03:03,639 Speaker 2: that it's time to spray for bugs and. 68 00:03:03,919 --> 00:03:05,920 Speaker 1: For some diy pest control exactly. 69 00:03:06,040 --> 00:03:08,000 Speaker 2: We've talked about this a few times over the years, 70 00:03:08,000 --> 00:03:11,400 Speaker 2: but it's worth revisiting because, Yeah, I wrote an article 71 00:03:11,520 --> 00:03:13,120 Speaker 2: up on our site at how to money dot com 72 00:03:13,160 --> 00:03:15,440 Speaker 2: just telling people how to do it themselves. And it's 73 00:03:15,480 --> 00:03:18,000 Speaker 2: amazing how much money you can save because a lot 74 00:03:18,000 --> 00:03:20,160 Speaker 2: of our listeners are probably paying something like one hundred 75 00:03:20,160 --> 00:03:22,799 Speaker 2: dollars a quarter to a pest control company to come 76 00:03:22,840 --> 00:03:25,359 Speaker 2: for a quarterly spraying. So let's say you're spending four 77 00:03:25,400 --> 00:03:28,240 Speaker 2: hundred dollars a year to combat bugs to keep them 78 00:03:28,240 --> 00:03:31,840 Speaker 2: out of your house, Well you can diyatt and literally 79 00:03:32,080 --> 00:03:35,200 Speaker 2: you will shell out no more then and actually less 80 00:03:35,200 --> 00:03:38,000 Speaker 2: than one hundred dollars and in the beginning. And that's 81 00:03:38,040 --> 00:03:41,480 Speaker 2: supply the sprayer and the chemicals. And this is not 82 00:03:41,600 --> 00:03:44,080 Speaker 2: the chemical that you can buy at home depot, by 83 00:03:44,080 --> 00:03:46,040 Speaker 2: the way, this is the chemicals that the pros use. 84 00:03:46,280 --> 00:03:49,120 Speaker 2: You can get both for like, you know, roughly in 85 00:03:49,120 --> 00:03:50,360 Speaker 2: the range of seventy bucks. 86 00:03:50,560 --> 00:03:52,160 Speaker 1: Yeah, and you're not just buying like a little spray 87 00:03:52,160 --> 00:03:54,960 Speaker 1: bottle to like, you know, spray a bug by Like, 88 00:03:55,000 --> 00:03:58,480 Speaker 1: this is professional grade stuff. And we crunched the numbers 89 00:03:58,480 --> 00:04:00,360 Speaker 1: on it too, and literally once after do you get 90 00:04:00,360 --> 00:04:03,400 Speaker 1: that you're only using something like two dollars worth of 91 00:04:03,480 --> 00:04:06,120 Speaker 1: chemicals over the course of a year. Yeah, and so 92 00:04:06,240 --> 00:04:09,400 Speaker 1: you're looking at four hundred dollars versus two dollars a 93 00:04:09,520 --> 00:04:12,000 Speaker 1: year after that upfront cost, and it's easy to see 94 00:04:12,080 --> 00:04:13,480 Speaker 1: that you are quickly going to be able to come 95 00:04:13,480 --> 00:04:13,880 Speaker 1: out ahead. 96 00:04:13,880 --> 00:04:15,680 Speaker 2: And I think most people might hear that and they're like, well, 97 00:04:15,720 --> 00:04:18,640 Speaker 2: there's got to be a catch, right, something's in fear 98 00:04:18,760 --> 00:04:20,839 Speaker 2: in this process, or you know what, I don't think 99 00:04:20,880 --> 00:04:22,479 Speaker 2: I'm going to know be able to know how to 100 00:04:22,520 --> 00:04:26,240 Speaker 2: do this. And fortunately there are instructional videos on some 101 00:04:26,320 --> 00:04:28,279 Speaker 2: of these websites where they will show you how to 102 00:04:28,320 --> 00:04:31,480 Speaker 2: do it properly and really honestly if any dummy can 103 00:04:31,520 --> 00:04:34,440 Speaker 2: do it, so it's not something that takes special skills 104 00:04:34,520 --> 00:04:36,760 Speaker 2: or anything like that. And just considering how much money 105 00:04:36,800 --> 00:04:39,280 Speaker 2: can save you in one fell swoop, we're all kind 106 00:04:39,320 --> 00:04:42,160 Speaker 2: of faced with higher rates of inflation, higher costs on 107 00:04:42,160 --> 00:04:44,920 Speaker 2: almost everything. He's right now, if you're looking to save 108 00:04:45,000 --> 00:04:47,480 Speaker 2: money in a big way in just like one fell swoop, 109 00:04:47,560 --> 00:04:50,240 Speaker 2: this is definitely one thing to look at, absolutely. 110 00:04:49,640 --> 00:04:51,720 Speaker 1: And something else I got to tell listeners about we 111 00:04:51,880 --> 00:04:55,359 Speaker 1: have we talked about about my bug assault gun on 112 00:04:55,400 --> 00:04:56,960 Speaker 1: the show before you know what, I'm not the one 113 00:04:57,000 --> 00:04:59,119 Speaker 1: that blows air, No, is this one that shoots the salt. 114 00:04:59,400 --> 00:05:01,599 Speaker 1: Oh that's right, Sorry, that's right, that's right. So I 115 00:05:01,600 --> 00:05:04,400 Speaker 1: got this for Christmas and it is the coolest thing. 116 00:05:04,640 --> 00:05:07,640 Speaker 1: It's this little so basically it's like a little pump shotgun, 117 00:05:08,200 --> 00:05:11,000 Speaker 1: but it's made of plastic. It's a toy and it's 118 00:05:11,040 --> 00:05:14,159 Speaker 1: got a little canister and you pour table salt in there, 119 00:05:14,160 --> 00:05:17,040 Speaker 1: like like a tablespoon or two tablespoons worth of literally 120 00:05:17,360 --> 00:05:20,000 Speaker 1: table salt. You close it up, you pump it, and 121 00:05:20,080 --> 00:05:22,120 Speaker 1: when you shoot it, it literally shoots out like a 122 00:05:22,120 --> 00:05:23,520 Speaker 1: little blast of. 123 00:05:23,440 --> 00:05:25,320 Speaker 2: A little bit of salt, kind of like a shotgun pellet. 124 00:05:25,600 --> 00:05:29,680 Speaker 1: It's literally a shotgun for bugs that shoots salt. And 125 00:05:29,760 --> 00:05:32,320 Speaker 1: so this is the most fun I have ever had 126 00:05:32,680 --> 00:05:35,240 Speaker 1: taken down little house flies in my house. I will 127 00:05:35,279 --> 00:05:38,599 Speaker 1: link to it in our show notes because literally it 128 00:05:38,680 --> 00:05:40,800 Speaker 1: is so fun. It's way more fun than the old 129 00:05:40,800 --> 00:05:45,239 Speaker 1: bug zapper down to South Georgia, which very few people 130 00:05:45,279 --> 00:05:48,440 Speaker 1: are aware of what I'm talking about here, But aside 131 00:05:48,440 --> 00:05:50,720 Speaker 1: from the doipis control. If you want to get yourself 132 00:05:50,800 --> 00:05:55,120 Speaker 1: a bug assault gun. I highly recommend it. I mean 133 00:05:55,160 --> 00:05:56,880 Speaker 1: it does sound like fun. I might have to get one, dude, 134 00:05:56,960 --> 00:05:58,760 Speaker 1: just for the sheer joy. Next time you all are 135 00:05:58,800 --> 00:06:00,880 Speaker 1: over and there's a little house fly or nat or 136 00:06:00,920 --> 00:06:02,160 Speaker 1: something like that, let me take it. I'll let you 137 00:06:02,200 --> 00:06:03,680 Speaker 1: have a shot with it, because it is a ton 138 00:06:03,680 --> 00:06:05,479 Speaker 1: of fun. Good. I appreciate that. And it's just salt. 139 00:06:05,560 --> 00:06:07,680 Speaker 1: And so you miss, or even if you don't miss, 140 00:06:07,720 --> 00:06:08,920 Speaker 1: you know, you pick up the five but then like 141 00:06:08,960 --> 00:06:10,600 Speaker 1: all the salt, it just kind of disperses a little bit. 142 00:06:10,600 --> 00:06:12,279 Speaker 1: But it's salt. It's like it's not that big of 143 00:06:12,279 --> 00:06:13,400 Speaker 1: a deal. If there's a little bit of salt on 144 00:06:13,440 --> 00:06:15,640 Speaker 1: the ground. Next time you're sweet or you a vacuum, 145 00:06:15,839 --> 00:06:16,320 Speaker 1: you get it. 146 00:06:16,320 --> 00:06:18,120 Speaker 2: Up off the floor and you barely notice it until then. 147 00:06:18,120 --> 00:06:20,680 Speaker 2: I bet exactly nice. Okay, Well, word to the wise, 148 00:06:20,800 --> 00:06:22,960 Speaker 2: do your own pest control, save you some money, and 149 00:06:22,960 --> 00:06:26,320 Speaker 2: bug a salt gun. All right, and let's move on. 150 00:06:26,360 --> 00:06:27,840 Speaker 2: Let's mention the beer that we're having on the show. 151 00:06:27,880 --> 00:06:31,480 Speaker 2: This one is called Hello World, and it's by Spyglass Brewing. 152 00:06:31,560 --> 00:06:33,679 Speaker 2: And this one will send to us by listener Gary. 153 00:06:33,839 --> 00:06:36,720 Speaker 2: He sent us Monday's beer. Looking forward to having this 154 00:06:36,760 --> 00:06:39,320 Speaker 2: one today and we'll give our thoughts at the end 155 00:06:39,320 --> 00:06:41,400 Speaker 2: of the episode, but for now, Matt looking get onto 156 00:06:41,440 --> 00:06:44,560 Speaker 2: the subject at hand. We are, of course tackling some 157 00:06:44,600 --> 00:06:47,479 Speaker 2: credit score miss We're busting them up. And you know, 158 00:06:47,720 --> 00:06:49,200 Speaker 2: it made me think, like there are all sorts of 159 00:06:49,279 --> 00:06:53,080 Speaker 2: myths that have grown into legends over the years, over decades. 160 00:06:53,320 --> 00:06:55,880 Speaker 2: H the lock disc monster is one of those, right, 161 00:06:56,120 --> 00:06:59,160 Speaker 2: Paul bunyan UFOs, Like did they exist? Don't they? 162 00:06:59,560 --> 00:07:02,480 Speaker 1: All sorts of these like they're just drones. 163 00:07:02,720 --> 00:07:07,000 Speaker 2: You know, all of these things have developed outsized tales 164 00:07:07,040 --> 00:07:10,040 Speaker 2: that make for interesting TV shows, and they're fun to 165 00:07:10,080 --> 00:07:12,800 Speaker 2: talk about maybe on a Friday night over a nice 166 00:07:12,840 --> 00:07:15,240 Speaker 2: craft beer with some of your friends, just kind of well, 167 00:07:15,320 --> 00:07:17,200 Speaker 2: I don't know, is it real or isn't it? And 168 00:07:17,320 --> 00:07:19,240 Speaker 2: it's the same as maybe like the legend with the 169 00:07:19,240 --> 00:07:22,400 Speaker 2: moon landing being fake, although I don't know, that's just 170 00:07:22,480 --> 00:07:25,440 Speaker 2: kind of less fun to talk about and not so 171 00:07:25,480 --> 00:07:28,480 Speaker 2: small contingent of Americans, they continue to believe in the 172 00:07:28,520 --> 00:07:31,960 Speaker 2: existence of like a sasquatch like creature roaming the woods. 173 00:07:32,280 --> 00:07:35,480 Speaker 2: But yeah, some have latched onto these tales. They've taken 174 00:07:35,520 --> 00:07:38,480 Speaker 2: them as one hundred percent factual. And you know, while 175 00:07:38,520 --> 00:07:42,160 Speaker 2: I don't have definitive proof that Bigfoot doesn't exist, it 176 00:07:42,160 --> 00:07:45,280 Speaker 2: certainly doesn't match up with what my eyes have seen firsthand. 177 00:07:45,520 --> 00:07:47,880 Speaker 2: And part of the reason these myths persist is because 178 00:07:47,920 --> 00:07:51,160 Speaker 2: there isn't documented evidence to the contrary, right, I mean, 179 00:07:51,440 --> 00:07:53,480 Speaker 2: but credit score myths, on the other hand, well, they 180 00:07:53,480 --> 00:07:58,080 Speaker 2: continue to exist despite hard evidence of their inaccuracies. And 181 00:07:58,120 --> 00:08:00,200 Speaker 2: so that's why we're talking about this today. I mean, 182 00:08:00,240 --> 00:08:03,400 Speaker 2: these these myths impact your finances in a real and 183 00:08:03,440 --> 00:08:05,560 Speaker 2: ongoing way, So we've got to discuss them in a 184 00:08:05,600 --> 00:08:08,520 Speaker 2: way that maybe your bigfoot obsession doesn't impact your day 185 00:08:08,520 --> 00:08:10,160 Speaker 2: to day life, it's right, man, So and if it does, 186 00:08:10,240 --> 00:08:11,120 Speaker 2: you've got a real problem. 187 00:08:11,520 --> 00:08:14,080 Speaker 1: It's time to bust these myths up. And part of 188 00:08:14,080 --> 00:08:16,440 Speaker 1: the reason too, that we're tackling this topic now is 189 00:08:16,520 --> 00:08:20,160 Speaker 1: because of the fact that March it's National Credit Education Month. 190 00:08:20,280 --> 00:08:21,120 Speaker 1: I bet you didn't know that. 191 00:08:21,280 --> 00:08:24,760 Speaker 2: Oh yeah, there's a thing everything. There really is a 192 00:08:24,760 --> 00:08:26,120 Speaker 2: love for everything these days. 193 00:08:26,360 --> 00:08:29,320 Speaker 1: But there are also a lot of misconceptions and misunderstandings 194 00:08:29,320 --> 00:08:32,559 Speaker 1: out there about credit scores and these myths. They lead 195 00:08:32,600 --> 00:08:36,360 Speaker 1: folks to take just different paths like incorrect paths toward 196 00:08:36,440 --> 00:08:40,040 Speaker 1: their credit It often impacts their score negatively, causing actual 197 00:08:40,120 --> 00:08:42,320 Speaker 1: real side effects. And we want you to have a 198 00:08:42,360 --> 00:08:45,360 Speaker 1: great credit score because it has such a wide ranging impact. 199 00:08:45,600 --> 00:08:47,760 Speaker 1: Living without a credit score would be tough in a 200 00:08:47,800 --> 00:08:51,040 Speaker 1: modern society, And like, is that a good thing that 201 00:08:51,240 --> 00:08:54,000 Speaker 1: we have to function with a credit score? Not necessarily. 202 00:08:54,520 --> 00:08:57,160 Speaker 1: We're not huge fans of the credit bureaus and you know, 203 00:08:57,240 --> 00:09:00,640 Speaker 1: specifically their inability to keep our personal day a secure. 204 00:09:00,920 --> 00:09:02,440 Speaker 1: But it's kind of like we've been put down in 205 00:09:02,480 --> 00:09:04,880 Speaker 1: a game that we just can't stop playing. I mean, 206 00:09:04,920 --> 00:09:06,960 Speaker 1: you could stop playing, but you would have to need 207 00:09:07,000 --> 00:09:09,760 Speaker 1: a pile of cash in order to truly avoid the 208 00:09:09,760 --> 00:09:13,280 Speaker 1: credit score system altogether, in order to completely skirt it. 209 00:09:13,480 --> 00:09:15,599 Speaker 2: Yeah, it's kind of like even if you want to 210 00:09:15,600 --> 00:09:17,679 Speaker 2: be an entrepreneur at age twelve, like you still got 211 00:09:17,679 --> 00:09:19,920 Speaker 2: to finish high school. I mean it's it's it's part 212 00:09:19,960 --> 00:09:21,360 Speaker 2: of the process, and. 213 00:09:21,400 --> 00:09:22,000 Speaker 1: You don't have to. 214 00:09:22,360 --> 00:09:23,680 Speaker 2: Your parents are going to get in big trouble if 215 00:09:23,679 --> 00:09:25,199 Speaker 2: you don't, right, I mean it's. 216 00:09:25,840 --> 00:09:27,439 Speaker 1: Is there some law like do you actually have to 217 00:09:27,440 --> 00:09:28,760 Speaker 1: finish high school? No? 218 00:09:29,080 --> 00:09:30,640 Speaker 2: I think you're going to get in big trouble if 219 00:09:30,640 --> 00:09:33,040 Speaker 2: you drop out before before the age of sixteen. 220 00:09:33,400 --> 00:09:33,960 Speaker 1: I didn't know that. 221 00:09:34,040 --> 00:09:36,320 Speaker 2: Yeah, I think I don't know what the actual rules are, 222 00:09:36,320 --> 00:09:37,560 Speaker 2: but I'm pretty sure you got to go to school, 223 00:09:37,559 --> 00:09:40,720 Speaker 2: and to school, I mean you should, like I agree 224 00:09:40,720 --> 00:09:43,880 Speaker 2: that that's probably it's probably a good, healthy approach to 225 00:09:44,400 --> 00:09:46,480 Speaker 2: becoming a fully formed adult. I'm pretty sure the state 226 00:09:46,480 --> 00:09:49,280 Speaker 2: can come after the parents if the kids come out. Yeah, 227 00:09:49,280 --> 00:09:50,480 Speaker 2: if they take them out of school and there's no 228 00:09:50,480 --> 00:09:52,040 Speaker 2: sign that they're doing any sort of homeschooling, what. 229 00:09:52,040 --> 00:09:54,839 Speaker 1: Kind of country are we living in. I don't know. 230 00:09:55,360 --> 00:09:58,160 Speaker 2: We might disagree on whether or not that's a reasonable thing, 231 00:09:58,440 --> 00:09:59,360 Speaker 2: but it's reasonable. 232 00:09:59,400 --> 00:10:00,679 Speaker 1: But I feel like people have a choice. 233 00:10:00,679 --> 00:10:04,040 Speaker 2: Whatever, let's go, let's don't take your kids out of school. 234 00:10:04,040 --> 00:10:06,160 Speaker 1: They need it. I'm not aid school, like my kids 235 00:10:06,160 --> 00:10:07,880 Speaker 1: are going to go to college most likely to worry. 236 00:10:08,160 --> 00:10:09,040 Speaker 1: I want other people to have. 237 00:10:09,000 --> 00:10:11,559 Speaker 2: The choice if they choose not to, they choose to 238 00:10:11,640 --> 00:10:13,400 Speaker 2: rip their kids out of school and just you know, 239 00:10:13,480 --> 00:10:15,240 Speaker 2: send them down the Jeff Bezos path. 240 00:10:15,880 --> 00:10:19,319 Speaker 1: Yea, the genius kid and they're able to take whatever 241 00:10:19,360 --> 00:10:23,280 Speaker 1: remedial course or class where they're basically able to get 242 00:10:23,280 --> 00:10:26,040 Speaker 1: the equivalent of a high school diploma. Of course, they 243 00:10:26,040 --> 00:10:26,920 Speaker 1: should be able to do that. 244 00:10:26,960 --> 00:10:29,560 Speaker 2: Right, Okay, all right, well, let's let's move on. Let's 245 00:10:29,559 --> 00:10:32,120 Speaker 2: talk about what a good score is, because that kind 246 00:10:32,120 --> 00:10:34,400 Speaker 2: of sets up this question of like, well, what are 247 00:10:34,440 --> 00:10:37,000 Speaker 2: we aiming to achieve here with our credit score? And 248 00:10:37,800 --> 00:10:39,720 Speaker 2: you know, Matt, you just mentioned one way to avoid 249 00:10:39,720 --> 00:10:41,520 Speaker 2: the system would be to have just a ton of 250 00:10:41,520 --> 00:10:44,679 Speaker 2: money ever loaded, right, Like you don't need a lender 251 00:10:44,720 --> 00:10:47,080 Speaker 2: to approve you to buy a home if you've got 252 00:10:47,320 --> 00:10:48,880 Speaker 2: five million bucks in the bank, and you can go 253 00:10:48,960 --> 00:10:51,800 Speaker 2: buy any home that you desire. But since most folks 254 00:10:51,880 --> 00:10:54,120 Speaker 2: don't have that, most folks don't have that much money 255 00:10:54,640 --> 00:10:57,680 Speaker 2: on hand, especially these days, like to buy a home, 256 00:10:57,920 --> 00:11:01,040 Speaker 2: it gets really expensive. In a car, same thing, right, 257 00:11:01,280 --> 00:11:04,280 Speaker 2: cars are not cheap, so paying attention to your credit 258 00:11:04,280 --> 00:11:06,280 Speaker 2: score is a must. But then the question is like 259 00:11:06,320 --> 00:11:08,440 Speaker 2: what is a good score? And I guess you know, 260 00:11:08,480 --> 00:11:12,120 Speaker 2: we have to tackle that because and it's actually kind 261 00:11:12,160 --> 00:11:15,920 Speaker 2: of a difficult question to answer because there are different scales, 262 00:11:15,960 --> 00:11:18,080 Speaker 2: like kind of like how we're talking about schools here, 263 00:11:18,360 --> 00:11:21,680 Speaker 2: how some schools might have an a scale. An eighty 264 00:11:21,679 --> 00:11:23,760 Speaker 2: eight could be considered an a I guess in some schools, 265 00:11:23,800 --> 00:11:25,800 Speaker 2: or a ninety I remember in high school when migrating 266 00:11:25,800 --> 00:11:28,440 Speaker 2: scale changed and it used to be a ninety two 267 00:11:28,480 --> 00:11:30,280 Speaker 2: and up was an A, and then they changed it 268 00:11:30,320 --> 00:11:32,920 Speaker 2: to a ninety enough was an A. Seriously, yeah, in 269 00:11:32,960 --> 00:11:34,720 Speaker 2: the middle of high school, it's so weird. A couple 270 00:11:34,760 --> 00:11:36,839 Speaker 2: of my my as I've always been ninety and above 271 00:11:36,880 --> 00:11:39,920 Speaker 2: bs are obviously eighty c's or no, it's it depends 272 00:11:39,920 --> 00:11:42,320 Speaker 2: on the school system. And so I distinctly remember, like 273 00:11:42,360 --> 00:11:44,480 Speaker 2: two of my bees became a's all of a sudden, 274 00:11:44,520 --> 00:11:45,880 Speaker 2: my GPA got a little. 275 00:11:45,640 --> 00:11:47,360 Speaker 1: Bit higher, and so it's funny. 276 00:11:47,360 --> 00:11:50,640 Speaker 2: Similarly, with credit scores, some of these bureaus have just 277 00:11:50,760 --> 00:11:54,280 Speaker 2: a different threshold for what's considered good or great and 278 00:11:54,360 --> 00:11:57,880 Speaker 2: so yeah, so the school that your lender sees when 279 00:11:57,880 --> 00:12:00,520 Speaker 2: you're refinancing an auto loan, let's say, it can differ 280 00:12:00,600 --> 00:12:02,560 Speaker 2: from the one that you get if you were to 281 00:12:02,559 --> 00:12:06,320 Speaker 2: get that score directly from the bureau. And each bureau 282 00:12:06,360 --> 00:12:09,280 Speaker 2: also has quite a few credit scores for you behind 283 00:12:09,320 --> 00:12:12,200 Speaker 2: the scenes, so it's not even different models. Yeah, like 284 00:12:12,240 --> 00:12:14,480 Speaker 2: there's this one score that you have for each bureau. 285 00:12:14,559 --> 00:12:17,080 Speaker 2: It's like they might have a dozen scores for you 286 00:12:17,120 --> 00:12:19,640 Speaker 2: based on different factors, and so the score your lender 287 00:12:19,679 --> 00:12:22,520 Speaker 2: sees when you're refinancing an auto loan, let's say, can 288 00:12:22,559 --> 00:12:24,440 Speaker 2: differ from the one that you get if you were 289 00:12:24,480 --> 00:12:27,360 Speaker 2: to get that score directly from the bureau. And you know, 290 00:12:27,400 --> 00:12:29,480 Speaker 2: most of these scores are on a scale that goes 291 00:12:29,559 --> 00:12:32,439 Speaker 2: up to like eight fifty or nine hundred, and some 292 00:12:32,520 --> 00:12:36,319 Speaker 2: folks are striving for a perfect credit score under each 293 00:12:36,360 --> 00:12:39,040 Speaker 2: one of these models, and that's just a recipe for 294 00:12:39,320 --> 00:12:44,600 Speaker 2: in futility, it's just completely unnecessary to strive for perfection. Basically, 295 00:12:44,640 --> 00:12:46,520 Speaker 2: if your score is in the seven to forty plus 296 00:12:46,640 --> 00:12:49,480 Speaker 2: range on any of these scales, that's good enough and 297 00:12:49,520 --> 00:12:51,760 Speaker 2: it will basically qualify you for the best terms for 298 00:12:51,840 --> 00:12:54,720 Speaker 2: different loans you might need access to. Just remember that 299 00:12:54,760 --> 00:12:59,080 Speaker 2: seven forty or above is basically that a range where 300 00:12:59,120 --> 00:13:01,199 Speaker 2: you're going to want to be in order to, yeah, 301 00:13:01,320 --> 00:13:04,320 Speaker 2: get the best terms on all sorts of different lending 302 00:13:04,480 --> 00:13:05,480 Speaker 2: products until they. 303 00:13:05,440 --> 00:13:07,480 Speaker 1: Changed the rules on you. All right, let's go ahead 304 00:13:07,480 --> 00:13:09,960 Speaker 1: and get started busting up some of these credit score myths. 305 00:13:10,080 --> 00:13:12,079 Speaker 1: By the way, you remember the guys from MythBusters back 306 00:13:12,080 --> 00:13:13,959 Speaker 1: in the day, Like that's sort of the inspiration for 307 00:13:14,080 --> 00:13:15,480 Speaker 1: you know, for the title of this episode for the 308 00:13:15,520 --> 00:13:16,120 Speaker 1: listeners out there. 309 00:13:16,160 --> 00:13:18,760 Speaker 2: That was one of those first hit reality styles and 310 00:13:18,800 --> 00:13:19,440 Speaker 2: TV shows. 311 00:13:19,520 --> 00:13:22,040 Speaker 1: Yeah, one of my favorite ones I remember was they 312 00:13:22,040 --> 00:13:26,280 Speaker 1: were like blasting cannonballs into a wall. And interestingly, this 313 00:13:26,360 --> 00:13:28,040 Speaker 1: was like one of the episodes where they screwed up 314 00:13:28,360 --> 00:13:31,400 Speaker 1: and like they're out out in the desert, like at 315 00:13:31,400 --> 00:13:34,000 Speaker 1: a firing range or like like a bomb range basically, 316 00:13:34,320 --> 00:13:37,120 Speaker 1: and like the cannon like tipped up, and so the 317 00:13:37,160 --> 00:13:39,959 Speaker 1: cannon ball missed the wall and it went ricocheting off 318 00:13:40,000 --> 00:13:41,760 Speaker 1: of like one of the hills and into a neighborhood. 319 00:13:41,840 --> 00:13:45,959 Speaker 1: Oh my gosh, Yeah, super crazy. Nobody got hurt, but 320 00:13:46,080 --> 00:13:47,640 Speaker 1: like I do remember like crashing into some of some 321 00:13:47,679 --> 00:13:49,440 Speaker 1: dud's howls. I think it like went through a van, 322 00:13:49,840 --> 00:13:52,960 Speaker 1: pretty serious, like and that's the day MythBusters got canceled, No, 323 00:13:53,080 --> 00:13:55,520 Speaker 1: they did, Like that was right in the middle of 324 00:13:56,040 --> 00:13:59,040 Speaker 1: a run of seasons where they were crushing It probably 325 00:13:59,080 --> 00:14:01,400 Speaker 1: made for good TV rating, I think it did. Like 326 00:14:01,440 --> 00:14:03,559 Speaker 1: that's the one I remember was the one where there 327 00:14:03,600 --> 00:14:06,679 Speaker 1: was an errant cannonball. I could not imagine seeing that 328 00:14:06,720 --> 00:14:08,880 Speaker 1: in real life. Anyway, Let's do some myth busting of 329 00:14:08,880 --> 00:14:11,160 Speaker 1: our own, and the first one we wanted to share 330 00:14:11,520 --> 00:14:14,280 Speaker 1: is that your credit score doesn't really matter all that much. 331 00:14:14,640 --> 00:14:16,080 Speaker 1: And there's a good reason that we're starting with this 332 00:14:16,120 --> 00:14:18,559 Speaker 1: one because we want to highlight the fact that your 333 00:14:18,600 --> 00:14:22,080 Speaker 1: credit score is incredibly important. It affects so much more 334 00:14:22,080 --> 00:14:24,440 Speaker 1: of your life than you realize. We just talked about 335 00:14:24,440 --> 00:14:27,000 Speaker 1: the need for a credit score in modern society, but 336 00:14:27,240 --> 00:14:29,800 Speaker 1: everything is going to cost you more if your credit 337 00:14:29,800 --> 00:14:33,200 Speaker 1: score stinks. Lenders they're going to charge you what's called 338 00:14:33,200 --> 00:14:35,480 Speaker 1: a risk premium if your score isn't great, but they 339 00:14:35,520 --> 00:14:37,520 Speaker 1: also might decide not to lend to you at all 340 00:14:37,720 --> 00:14:39,840 Speaker 1: if your score is in the dumps, and you might 341 00:14:39,880 --> 00:14:41,320 Speaker 1: see to yourself, all right, that's fine, I'm not going 342 00:14:41,400 --> 00:14:44,080 Speaker 1: to ever own a home. That's fine. Your credit score 343 00:14:44,080 --> 00:14:47,239 Speaker 1: comes in play when you're renting a house too. Landlords 344 00:14:47,320 --> 00:14:49,480 Speaker 1: they're gonna almost always run a credit check, and that 345 00:14:49,880 --> 00:14:52,200 Speaker 1: is going to impact your ability to get the place 346 00:14:52,240 --> 00:14:55,560 Speaker 1: that you want. You know, if I'm choosing between two tenants, 347 00:14:55,760 --> 00:14:58,000 Speaker 1: they both seem great, they both make the same amount 348 00:14:58,000 --> 00:15:00,600 Speaker 1: of money. I've got to base my decision on something, 349 00:15:00,640 --> 00:15:03,800 Speaker 1: and the credit score can often the scales. A bad 350 00:15:03,920 --> 00:15:06,040 Speaker 1: or non existent credit score could also impact your ability 351 00:15:06,080 --> 00:15:08,080 Speaker 1: to get home internet or cable, or it might require 352 00:15:08,120 --> 00:15:10,320 Speaker 1: you to put down a deposit. You might even pay 353 00:15:10,360 --> 00:15:13,120 Speaker 1: more for auto insurance if your score is low. Having 354 00:15:13,200 --> 00:15:15,960 Speaker 1: a good, solid credit score is not a trivial thing. 355 00:15:16,360 --> 00:15:19,280 Speaker 2: Yeah, your credit score has an impact in so many 356 00:15:19,360 --> 00:15:22,400 Speaker 2: areas of your life. And not only will a crappy 357 00:15:22,400 --> 00:15:25,600 Speaker 2: credit score impact your ability to spend money, to take 358 00:15:25,640 --> 00:15:28,160 Speaker 2: out a loan, to take on debt for something that 359 00:15:28,160 --> 00:15:30,960 Speaker 2: you're looking to buy, which, let's be honest, maybe this 360 00:15:31,040 --> 00:15:32,760 Speaker 2: is actually a blessing in disguise. 361 00:15:33,280 --> 00:15:36,120 Speaker 1: If you potentially keep you from spending more money, yeah, 362 00:15:36,160 --> 00:15:38,360 Speaker 1: then you can afford to well. It can also hamper 363 00:15:38,400 --> 00:15:41,440 Speaker 1: your ability to earn money. And yeah, your. 364 00:15:41,280 --> 00:15:44,000 Speaker 2: Credit history can have an impact when you apply for 365 00:15:44,120 --> 00:15:47,320 Speaker 2: some jobs, like in particular ones in finance, or let's 366 00:15:47,320 --> 00:15:50,880 Speaker 2: say you're moving up to management level, then there's a 367 00:15:50,920 --> 00:15:54,120 Speaker 2: good chance your credit score comes into play here. Credit 368 00:15:54,160 --> 00:15:57,280 Speaker 2: checks happen more often for these types of jobs where 369 00:15:57,320 --> 00:15:59,960 Speaker 2: the stakes are higher, like when a security clearance is involved, 370 00:16:00,120 --> 00:16:02,160 Speaker 2: or if you have access to a lot of money 371 00:16:02,280 --> 00:16:04,440 Speaker 2: or sensitive information of your coworkers. 372 00:16:04,720 --> 00:16:06,040 Speaker 1: I don't know this for a fact, but I got 373 00:16:06,040 --> 00:16:07,920 Speaker 1: to feel in that, like bank tellers, if you've got 374 00:16:07,920 --> 00:16:10,200 Speaker 1: a really, really really crappy credit score, like maybe you 375 00:16:10,200 --> 00:16:11,800 Speaker 1: don't get that bank teller job where you're you know, 376 00:16:11,840 --> 00:16:13,120 Speaker 1: dolling out the hundreds, right. 377 00:16:13,040 --> 00:16:15,320 Speaker 2: Yeah, they might be like, sorry, go apply down the 378 00:16:15,320 --> 00:16:18,160 Speaker 2: street at Target, and so yeah, you know, one study 379 00:16:18,160 --> 00:16:21,480 Speaker 2: shows that twenty five percent of HR managers are actually 380 00:16:21,480 --> 00:16:24,320 Speaker 2: going to check your credit history during the hiring process, 381 00:16:24,440 --> 00:16:26,080 Speaker 2: even though they won't be able to see your actual 382 00:16:26,200 --> 00:16:29,320 Speaker 2: score in most cases. But here's the deal. Your score 383 00:16:29,480 --> 00:16:31,840 Speaker 2: is influenced by what's on your credit report. So if 384 00:16:31,880 --> 00:16:33,760 Speaker 2: they can take a look at your credit report, they 385 00:16:33,840 --> 00:16:36,080 Speaker 2: kind of, in theory, can deduce what your score is. 386 00:16:36,440 --> 00:16:39,440 Speaker 2: And that crummy credit report with lots of errors and 387 00:16:39,520 --> 00:16:42,440 Speaker 2: issues on it is going to potentially affect your ability 388 00:16:42,480 --> 00:16:43,760 Speaker 2: to get the job that you want. 389 00:16:44,080 --> 00:16:46,440 Speaker 1: That's a right, all right, We've got more credit myths 390 00:16:46,480 --> 00:16:49,000 Speaker 1: that need to be shalat, and we'll get to all 391 00:16:49,000 --> 00:17:01,360 Speaker 1: of those right after this break are back and we 392 00:17:01,400 --> 00:17:04,320 Speaker 1: are busting up some of those different credit score myths. Yea, 393 00:17:04,760 --> 00:17:06,480 Speaker 1: that you may have heard of, some you may not 394 00:17:06,520 --> 00:17:08,640 Speaker 1: have heard of before. Let's get to our next one, 395 00:17:08,680 --> 00:17:12,320 Speaker 1: which is checking your credit score hurts your credit score. 396 00:17:12,600 --> 00:17:14,160 Speaker 1: I feel like this is one that's been around for 397 00:17:14,200 --> 00:17:17,199 Speaker 1: a long time, and you know, like years ago, the 398 00:17:17,240 --> 00:17:20,359 Speaker 1: credit scords were kind of like shrouded in secrecy. Like 399 00:17:20,400 --> 00:17:23,359 Speaker 1: the bureaus and the banks and the lenders they knew 400 00:17:23,440 --> 00:17:25,480 Speaker 1: what our credit score was, but we didn't. Sort of 401 00:17:25,520 --> 00:17:28,240 Speaker 1: like credit scores, we're kind of like fight club, right, 402 00:17:28,320 --> 00:17:31,119 Speaker 1: Like the first rule of credit score club is to 403 00:17:31,480 --> 00:17:34,400 Speaker 1: not talk about your credit score, you know where you're 404 00:17:34,400 --> 00:17:37,119 Speaker 1: fearing that just like an utterance might punish your score 405 00:17:37,440 --> 00:17:39,439 Speaker 1: where you would you know, see it drop significantly. 406 00:17:39,480 --> 00:17:41,280 Speaker 2: Yeah, it's like almost like the thought police would come 407 00:17:41,280 --> 00:17:42,760 Speaker 2: after you. Like I thought about my credit card and 408 00:17:42,800 --> 00:17:44,960 Speaker 2: I kind of wondered what my points score was total 409 00:17:45,080 --> 00:17:47,080 Speaker 2: was And it's like, no, if you even asked that 410 00:17:47,160 --> 00:17:49,280 Speaker 2: question your brain, they're gonna take your score down a 411 00:17:49,280 --> 00:17:49,680 Speaker 2: not or two. 412 00:17:49,720 --> 00:17:51,600 Speaker 1: It's almost like you're just better off just hoping for 413 00:17:51,680 --> 00:17:54,320 Speaker 1: the best. But luckily that's no longer the case. We 414 00:17:54,359 --> 00:17:56,679 Speaker 1: all have access to our scores pretty much at every 415 00:17:56,720 --> 00:17:57,240 Speaker 1: turn these days. 416 00:17:57,280 --> 00:17:59,840 Speaker 2: But I truly remember when that wasn't the case, because 417 00:17:59,880 --> 00:18:02,520 Speaker 2: I I distinctly remember one of the first credit cards 418 00:18:02,600 --> 00:18:05,840 Speaker 2: I ever got was at a bank that no longer 419 00:18:05,880 --> 00:18:08,120 Speaker 2: exists called Washington Mutual that went. 420 00:18:08,280 --> 00:18:09,760 Speaker 1: Wahmoo, it went down. 421 00:18:10,600 --> 00:18:13,480 Speaker 2: You know, the great recession of the late to early 422 00:18:13,480 --> 00:18:17,160 Speaker 2: two thousands. There two thousand and eight, and basically it 423 00:18:17,200 --> 00:18:19,720 Speaker 2: was one of the first credit cards that made your 424 00:18:19,800 --> 00:18:22,359 Speaker 2: credit score known to you on a monthly basis. They 425 00:18:22,400 --> 00:18:28,240 Speaker 2: basically started the revolution of making credit scores widely accessive discovered. No, 426 00:18:28,280 --> 00:18:30,200 Speaker 2: I think they came shortly after, and they've done a 427 00:18:30,280 --> 00:18:33,240 Speaker 2: great job doing that. But WAMO was kind of that 428 00:18:33,400 --> 00:18:36,200 Speaker 2: first bank where it was like listen, no annual fee 429 00:18:36,240 --> 00:18:37,680 Speaker 2: credit card, but you get to know your credit scred 430 00:18:37,680 --> 00:18:40,000 Speaker 2: every month. So for you know, money nerds like me 431 00:18:40,400 --> 00:18:42,760 Speaker 2: who wanted to, Yeah, I wanted to, and there was 432 00:18:42,840 --> 00:18:45,520 Speaker 2: no other place on the internet where where I don't 433 00:18:45,560 --> 00:18:48,119 Speaker 2: think this was before credit karma existed. This is before 434 00:18:48,119 --> 00:18:53,760 Speaker 2: the internet, not quite, but this is before electricity. I know, 435 00:18:53,920 --> 00:18:55,960 Speaker 2: I'm definitely aging myself here, but it was kind of 436 00:18:56,040 --> 00:18:57,760 Speaker 2: nice to have a credit score that would make that 437 00:18:57,800 --> 00:19:00,920 Speaker 2: known to you. And you know, since then, obviously it's 438 00:19:00,960 --> 00:19:02,840 Speaker 2: gotten so much easier to stay on top, and we'll 439 00:19:02,840 --> 00:19:05,399 Speaker 2: talk about that a little bit later. But I remember 440 00:19:05,440 --> 00:19:07,520 Speaker 2: in those days where it was like haring to find 441 00:19:07,520 --> 00:19:09,600 Speaker 2: out what your credit score was, and you like you 442 00:19:09,600 --> 00:19:11,800 Speaker 2: either had to find that one random credit card that 443 00:19:11,840 --> 00:19:14,560 Speaker 2: would do it or just kind of hope and pray 444 00:19:14,880 --> 00:19:16,879 Speaker 2: when you applied for a loan that your credit was 445 00:19:16,880 --> 00:19:17,720 Speaker 2: in decent shape. 446 00:19:17,480 --> 00:19:19,360 Speaker 1: Where you just had to know somebody on the inside. 447 00:19:19,840 --> 00:19:21,479 Speaker 1: But it is important to know that there's a difference 448 00:19:21,480 --> 00:19:23,440 Speaker 1: between a soft pole and your credit and a hard one. 449 00:19:23,840 --> 00:19:26,320 Speaker 1: Hard polls will hurt your score, but soft ones won't. 450 00:19:26,560 --> 00:19:28,880 Speaker 1: And so if you're getting a mortgage on a car loan, 451 00:19:29,160 --> 00:19:30,919 Speaker 1: the lender is going to run your credit and that's 452 00:19:30,960 --> 00:19:34,840 Speaker 1: considered a hard inquiry. That hard poll will ding your 453 00:19:34,840 --> 00:19:37,920 Speaker 1: score just a little bit, maybe like ten points. Unfortunately, 454 00:19:38,240 --> 00:19:40,479 Speaker 1: like that's just the price of admission. Though after all, 455 00:19:40,720 --> 00:19:42,560 Speaker 1: you know the credit viureors they don't want to see 456 00:19:42,560 --> 00:19:45,359 Speaker 1: you applying for new lines of credit every chance that 457 00:19:45,440 --> 00:19:48,880 Speaker 1: you get. But on that note, some folks have come 458 00:19:48,880 --> 00:19:51,000 Speaker 1: to believe that shopping around for a loan is going 459 00:19:51,080 --> 00:19:55,119 Speaker 1: to hurt your score. And you know that's true, that 460 00:19:55,160 --> 00:19:57,560 Speaker 1: you will see an initial hit to your score, but 461 00:19:57,600 --> 00:20:00,000 Speaker 1: that doesn't mean that if you shop with multiple lenders 462 00:20:00,119 --> 00:20:02,639 Speaker 1: that it will send your score sinking even lower with 463 00:20:02,720 --> 00:20:05,040 Speaker 1: every single time that you get a quote. The beerers 464 00:20:05,080 --> 00:20:07,000 Speaker 1: have it set up to where if you make multiple 465 00:20:07,000 --> 00:20:10,360 Speaker 1: inquiries inside of a specific time window, and typically that's 466 00:20:10,480 --> 00:20:13,160 Speaker 1: two weeks. Those like three or four or five credit 467 00:20:13,160 --> 00:20:15,480 Speaker 1: polls they're just going to count as a single pole. 468 00:20:15,680 --> 00:20:17,600 Speaker 1: So don't freak out, like, we still want you to 469 00:20:17,600 --> 00:20:20,639 Speaker 1: get multiple quotes, because it's definitely the best way for 470 00:20:20,680 --> 00:20:22,600 Speaker 1: you to get the lowest rate, but doing that within 471 00:20:22,800 --> 00:20:26,879 Speaker 1: a timely manner that's really important and it's good for 472 00:20:26,880 --> 00:20:29,080 Speaker 1: you to know that that will not hurt your credit score. 473 00:20:29,160 --> 00:20:31,440 Speaker 2: Yeah, and that two week window is kind of the 474 00:20:31,680 --> 00:20:35,280 Speaker 2: typical parameter used by some of the older credit scoring models. 475 00:20:35,920 --> 00:20:39,760 Speaker 2: According to credit Karma, the newer scoring models that they 476 00:20:39,760 --> 00:20:42,480 Speaker 2: treat multiple inquiries as a single poll as long as 477 00:20:42,480 --> 00:20:44,920 Speaker 2: you make them, and they offer a much larger window 478 00:20:44,920 --> 00:20:47,640 Speaker 2: of like forty five days, which is great, there's plenty 479 00:20:47,680 --> 00:20:50,120 Speaker 2: of time to shot. But unfortunately, as the end user, 480 00:20:50,160 --> 00:20:53,639 Speaker 2: because some things are still shrouded in secrecy in the 481 00:20:53,640 --> 00:20:57,639 Speaker 2: credit score credit report arena, you don't know what scoring 482 00:20:57,680 --> 00:20:59,720 Speaker 2: model the lender you're getting quotes t FRUM is using. 483 00:21:00,040 --> 00:21:01,639 Speaker 2: You don't know if they're going to new school or 484 00:21:01,680 --> 00:21:02,560 Speaker 2: old school, and so. 485 00:21:02,600 --> 00:21:05,959 Speaker 1: It's like, are you using the vantage seven point six model? 486 00:21:06,119 --> 00:21:07,520 Speaker 1: And they're going to look at you like, wait, what 487 00:21:07,640 --> 00:21:08,200 Speaker 1: are you are? 488 00:21:08,240 --> 00:21:11,159 Speaker 2: Using the Fiico nine point one, Like, which model are 489 00:21:11,200 --> 00:21:13,160 Speaker 2: you using? And yeah, they're like, go back to law 490 00:21:13,200 --> 00:21:15,400 Speaker 2: moogeel out of here, mane. I'll be like, I can't. 491 00:21:15,440 --> 00:21:19,359 Speaker 2: They don't exist anymore. But yeah, basically, it's best to 492 00:21:19,400 --> 00:21:21,320 Speaker 2: stick with the fourteen day window to be on the 493 00:21:21,320 --> 00:21:24,760 Speaker 2: safe side. Just keep that as your rule of thumb 494 00:21:24,920 --> 00:21:27,800 Speaker 2: when you're getting let's say, quotes for you know, a 495 00:21:27,840 --> 00:21:31,080 Speaker 2: mortgage through a lender, make sure you get all those 496 00:21:31,160 --> 00:21:34,000 Speaker 2: quotes in that fourteen days and you'll be fine. But 497 00:21:34,160 --> 00:21:36,239 Speaker 2: on the other side of the spectrum, you're checking your 498 00:21:36,240 --> 00:21:38,919 Speaker 2: own score via your credit card company or through a 499 00:21:38,960 --> 00:21:41,639 Speaker 2: site like credit Karma, isn't going to have any impact 500 00:21:41,760 --> 00:21:44,440 Speaker 2: on your score because that is what's known as a softball. 501 00:21:44,480 --> 00:21:45,040 Speaker 1: It's different. 502 00:21:45,240 --> 00:21:47,199 Speaker 2: And so yeah, you can check every single day if 503 00:21:47,240 --> 00:21:49,679 Speaker 2: you want to, although that sounds like overkill and you 504 00:21:49,720 --> 00:21:51,720 Speaker 2: might be a little bit too obsessed, But yeah, I 505 00:21:51,760 --> 00:21:54,200 Speaker 2: think some people have that misunderstanding, Matt, that it's like, 506 00:21:54,240 --> 00:21:55,399 Speaker 2: if I want to know what my credit score is, 507 00:21:55,440 --> 00:21:56,520 Speaker 2: I'm gonna have to pay the price and it's going 508 00:21:56,560 --> 00:21:59,040 Speaker 2: to hurt my credit score. And that is just not 509 00:21:59,160 --> 00:22:02,320 Speaker 2: the case. You can check your credit score a whole lot, 510 00:22:02,359 --> 00:22:04,959 Speaker 2: and it's not going to mess with you. It's only 511 00:22:05,000 --> 00:22:07,400 Speaker 2: when those lenders are doing a hard pull in order 512 00:22:07,400 --> 00:22:10,080 Speaker 2: to determine whether you have a level of credit worthiness 513 00:22:10,080 --> 00:22:12,359 Speaker 2: where you can get that loan or not. That is 514 00:22:12,359 --> 00:22:14,080 Speaker 2: when it's going to ding your score just a little bit. 515 00:22:14,200 --> 00:22:17,760 Speaker 1: That is right next credit score, myth having debt will 516 00:22:17,800 --> 00:22:20,560 Speaker 1: hurt your credit score. And what's really interesting about this 517 00:22:20,600 --> 00:22:23,639 Speaker 1: one is that the opposite of this is kind of true. 518 00:22:23,840 --> 00:22:26,000 Speaker 1: Some folks like they don't even call it a credit score, 519 00:22:26,040 --> 00:22:28,600 Speaker 1: they call it like a debt score, which is actually 520 00:22:28,720 --> 00:22:30,639 Speaker 1: it's slightly more accurate, even though it's kind of been 521 00:22:30,720 --> 00:22:34,200 Speaker 1: used as a pejorative at times. But your score actually 522 00:22:34,280 --> 00:22:37,880 Speaker 1: goes up if you have a variety of different loans 523 00:22:37,920 --> 00:22:41,399 Speaker 1: and credit cards, as long as you're handling them all well. 524 00:22:41,800 --> 00:22:45,400 Speaker 1: It pays to have a variety of debt, namely revolving debt, 525 00:22:45,440 --> 00:22:47,040 Speaker 1: so that's like a credit card where you borrow money, 526 00:22:47,080 --> 00:22:48,680 Speaker 1: you pay it back, and then you can borrow it again, 527 00:22:49,119 --> 00:22:51,919 Speaker 1: and then installment debt like a mortgage, where you borrow 528 00:22:51,960 --> 00:22:54,800 Speaker 1: that larger lump sum and then you slowly make payments 529 00:22:54,880 --> 00:22:57,840 Speaker 1: on that over a longer period of time. So if 530 00:22:57,880 --> 00:22:59,560 Speaker 1: You've just got say one credit card, but you don't 531 00:22:59,560 --> 00:23:01,639 Speaker 1: have a student you don't have a mortgage. Even if 532 00:23:01,640 --> 00:23:03,960 Speaker 1: you pay on time and in full every month, your 533 00:23:04,000 --> 00:23:05,720 Speaker 1: score is not going to be able to go as 534 00:23:05,840 --> 00:23:09,040 Speaker 1: high as someone who has a greater variety of debts. 535 00:23:09,200 --> 00:23:11,679 Speaker 2: Yeah, but at the same time, you shouldn't necessarily go 536 00:23:11,720 --> 00:23:13,320 Speaker 2: back and take out student loans for a degree you 537 00:23:13,320 --> 00:23:15,800 Speaker 2: don't need and just to improve your credit score. That 538 00:23:15,800 --> 00:23:17,679 Speaker 2: would be the wrong waiting to out be foolish. 539 00:23:17,760 --> 00:23:18,800 Speaker 1: Yes. On that note. 540 00:23:18,840 --> 00:23:21,600 Speaker 2: By the way, paying off one of your debts can 541 00:23:21,640 --> 00:23:24,640 Speaker 2: actually hurt your credit score, which is just kind of interesting. 542 00:23:25,480 --> 00:23:28,040 Speaker 2: Let's say you've had a car loan for a few 543 00:23:28,080 --> 00:23:30,800 Speaker 2: years and you finally make that last payment and you 544 00:23:30,840 --> 00:23:34,080 Speaker 2: are so pumped, right, You're like, I no longer have 545 00:23:34,160 --> 00:23:36,600 Speaker 2: to pay money towards this car. I own it free 546 00:23:36,640 --> 00:23:38,679 Speaker 2: and clear, and what a beautiful feeling that is. 547 00:23:38,720 --> 00:23:40,520 Speaker 1: And I promise man Joel that I will never take 548 00:23:40,520 --> 00:23:43,520 Speaker 1: out a car load again exactly, which we expect that 549 00:23:43,560 --> 00:23:44,960 Speaker 1: in writing into our email inbox. 550 00:23:45,320 --> 00:23:48,280 Speaker 2: But you know the one downside to that, and I 551 00:23:48,320 --> 00:23:50,040 Speaker 2: don't want to make it sound like it's a huge downside, 552 00:23:50,080 --> 00:23:52,560 Speaker 2: but your credit score might take like a ten to 553 00:23:52,600 --> 00:23:56,080 Speaker 2: twenty point hit in the aftermath of that loan no 554 00:23:56,160 --> 00:23:59,879 Speaker 2: longer being on your credit report, it could negatively impact 555 00:23:59,880 --> 00:24:03,040 Speaker 2: your score. And it sounds crazy, but it is actually true. 556 00:24:03,200 --> 00:24:06,320 Speaker 2: And fortunately that ding typically doesn't last all that long. 557 00:24:06,720 --> 00:24:09,400 Speaker 2: And this is definitely not a reason to keep debt 558 00:24:09,480 --> 00:24:11,560 Speaker 2: lingering around in your life past the point that you 559 00:24:11,600 --> 00:24:15,400 Speaker 2: need to. Just like having a student loan might actually 560 00:24:15,640 --> 00:24:17,640 Speaker 2: help your credit score a little bit, like you don't 561 00:24:17,640 --> 00:24:19,639 Speaker 2: want to go get one just because it's going to 562 00:24:19,680 --> 00:24:22,160 Speaker 2: help your credit score. Well, just because paying off that 563 00:24:22,200 --> 00:24:25,040 Speaker 2: car loan could negatively impact your score for a small 564 00:24:25,040 --> 00:24:26,760 Speaker 2: period of time doesn't mean you don't want to pay 565 00:24:26,760 --> 00:24:29,400 Speaker 2: it off. But it is smart to be aware because 566 00:24:29,600 --> 00:24:31,920 Speaker 2: you know, especially if you need to use that tip 567 00:24:31,920 --> 00:24:34,280 Speaker 2: top credit score to get a loan for a big 568 00:24:34,320 --> 00:24:36,560 Speaker 2: future purchase in the near future, you want to be 569 00:24:36,600 --> 00:24:39,280 Speaker 2: careful about the timing of when you pay off, yeah, 570 00:24:39,280 --> 00:24:41,800 Speaker 2: one of those big loans, because yeah, if you're at 571 00:24:41,960 --> 00:24:44,160 Speaker 2: seven point fifty you pay that car loan off, you're 572 00:24:44,160 --> 00:24:46,240 Speaker 2: at seven thirty and you're applying for a mortgage loan, 573 00:24:46,840 --> 00:24:48,959 Speaker 2: that could impact, yeah, the rate that you get on 574 00:24:48,960 --> 00:24:51,240 Speaker 2: something you're going to be paying on for thirty years, which. 575 00:24:51,680 --> 00:24:53,720 Speaker 1: Sounds unlikely, I think, maybe to a lot of folks 576 00:24:54,000 --> 00:24:55,879 Speaker 1: as they're sitting there, but like, no, that's kind of 577 00:24:55,880 --> 00:24:58,160 Speaker 1: how money works, right. You get a big bonus at work, 578 00:24:58,240 --> 00:24:59,720 Speaker 1: and you're like, you know what, I'm gonna go ahead 579 00:24:59,720 --> 00:25:02,280 Speaker 1: and pay off my car loan a little bit early. 580 00:25:02,359 --> 00:25:04,960 Speaker 1: I've got six months left. Let's go ahead and knock 581 00:25:05,040 --> 00:25:07,560 Speaker 1: that out completely. And we've got enough money now to 582 00:25:07,600 --> 00:25:10,440 Speaker 1: put a down payment on the house. Boomshot, Like we're 583 00:25:10,480 --> 00:25:12,920 Speaker 1: crushing it. And then you find out that, oh, I'm sorry, 584 00:25:12,960 --> 00:25:16,359 Speaker 1: so you don't qualify for the top tier rates a 585 00:25:16,440 --> 00:25:19,280 Speaker 1: really nice rate, or I'm sorry, mam, you actually are 586 00:25:19,320 --> 00:25:21,960 Speaker 1: going to oh a little bit more on the fees 587 00:25:21,960 --> 00:25:23,880 Speaker 1: associated with your loan. It's just something to keep in mind. 588 00:25:23,920 --> 00:25:26,320 Speaker 1: Just like Joel said, it actually has a higher chance 589 00:25:26,359 --> 00:25:28,800 Speaker 1: of happening than you think. And so another credit score 590 00:25:28,840 --> 00:25:31,320 Speaker 1: myth that we wanted to mention carrying a balance will 591 00:25:31,359 --> 00:25:33,359 Speaker 1: help boost my score. This one is sort of like 592 00:25:33,400 --> 00:25:35,399 Speaker 1: the flip side of the coin from what we were 593 00:25:35,440 --> 00:25:37,760 Speaker 1: just touching on, and a lot of folks have bought 594 00:25:37,840 --> 00:25:40,640 Speaker 1: into this myth. You know, they're thinking having a nice 595 00:25:40,640 --> 00:25:43,520 Speaker 1: mix of debt, that's helping out your score. So maybe 596 00:25:43,600 --> 00:25:46,040 Speaker 1: not paying your credit card balance off, I should did 597 00:25:46,040 --> 00:25:46,960 Speaker 1: the same thing, right. 598 00:25:47,359 --> 00:25:49,800 Speaker 2: It's like keeping that debt around to enhance your score. 599 00:25:49,880 --> 00:25:53,720 Speaker 1: Yeah, that's dumb. No, your monthly statement balance, it still 600 00:25:53,720 --> 00:25:56,080 Speaker 1: gets reported to the credit bureau. But that doesn't mean 601 00:25:56,119 --> 00:25:58,520 Speaker 1: that you should carry a balance and pay interest to 602 00:25:58,560 --> 00:26:01,680 Speaker 1: the credit card companies instead. There's no need to neglect 603 00:26:01,800 --> 00:26:03,440 Speaker 1: to pay it off. It's not going to help you. 604 00:26:03,480 --> 00:26:05,240 Speaker 1: It's only going to cost you money in interest. 605 00:26:05,400 --> 00:26:08,760 Speaker 2: Yeah, but people just assume, well, let me let that 606 00:26:08,800 --> 00:26:10,879 Speaker 2: balance linger, I'll pay a little bit of interest, but 607 00:26:10,920 --> 00:26:12,840 Speaker 2: it's going to help my credit score, And that's just 608 00:26:12,880 --> 00:26:13,240 Speaker 2: not true. 609 00:26:13,280 --> 00:26:16,040 Speaker 1: I think it's just oftentimes too just folks just fooling themselves. Yeah, right, 610 00:26:16,040 --> 00:26:18,239 Speaker 1: because like maybe, like deep down you know that that's 611 00:26:18,280 --> 00:26:19,840 Speaker 1: probably not true, but you thinking, no, you know, like 612 00:26:19,840 --> 00:26:22,399 Speaker 1: there's a chance maybe that might be the case, but no, 613 00:26:22,760 --> 00:26:24,240 Speaker 1: like do what you need to do to make sure 614 00:26:24,280 --> 00:26:25,040 Speaker 1: that you're paying your bills. 615 00:26:25,200 --> 00:26:27,879 Speaker 2: This is definitely one that people like to trick themselves on, 616 00:26:28,119 --> 00:26:31,640 Speaker 2: or at least they get tricked by. They assume that, yeah, 617 00:26:31,680 --> 00:26:33,520 Speaker 2: if I just don't pay it off in full, I 618 00:26:33,560 --> 00:26:35,640 Speaker 2: might pay a little interest, But it's going to raise 619 00:26:35,680 --> 00:26:37,560 Speaker 2: my score, and so it's all going to wash out 620 00:26:37,560 --> 00:26:39,680 Speaker 2: in the end. I need to work on my credit score, 621 00:26:39,720 --> 00:26:41,119 Speaker 2: and so this is a way to do it, but 622 00:26:41,760 --> 00:26:44,439 Speaker 2: in reality it has no bearing and actually it just 623 00:26:44,600 --> 00:26:46,760 Speaker 2: hurts your personal finances if you do that. All, Right, 624 00:26:46,840 --> 00:26:50,119 Speaker 2: next credit score. Myth we need to bust, Matt. Is 625 00:26:50,560 --> 00:26:56,040 Speaker 2: your banking effects your credit score. Well that's definitely not true, right, because, yeah, 626 00:26:56,080 --> 00:26:58,280 Speaker 2: how much money you have in checkings or savings, it 627 00:26:58,280 --> 00:27:01,240 Speaker 2: doesn't have any impact whatsoever on your credit score. Doesn't 628 00:27:01,280 --> 00:27:04,959 Speaker 2: matter if you have two hundred grand in your savings account, like, 629 00:27:05,400 --> 00:27:07,520 Speaker 2: that doesn't matter to the credit score people. They don't 630 00:27:07,520 --> 00:27:09,520 Speaker 2: look at that. They don't care, it's right. So, yeah, 631 00:27:09,560 --> 00:27:11,679 Speaker 2: it's very possible to have a great credit score but 632 00:27:11,680 --> 00:27:15,720 Speaker 2: be completely broke with nothing in the bank. Even however, 633 00:27:15,840 --> 00:27:18,160 Speaker 2: that doesn't mean, right, the cash on hand doesn't matter, 634 00:27:18,359 --> 00:27:21,360 Speaker 2: and lenders will look at your total assets to determine 635 00:27:21,400 --> 00:27:23,560 Speaker 2: if they're going to approve you for any new credit, 636 00:27:24,000 --> 00:27:27,800 Speaker 2: But it doesn't have any bearing on your credit score. 637 00:27:27,880 --> 00:27:28,000 Speaker 1: Right. 638 00:27:28,000 --> 00:27:30,720 Speaker 2: The amount of money that you have just chilling, And 639 00:27:30,800 --> 00:27:33,160 Speaker 2: so it doesn't matter where you do banking either, right. 640 00:27:33,200 --> 00:27:35,560 Speaker 2: Some people assume that the bank they do business with 641 00:27:35,720 --> 00:27:39,000 Speaker 2: is reporting low account balances or lets the credit bureau 642 00:27:39,119 --> 00:27:41,640 Speaker 2: know about an overdraft fee that gets incurred, And that's 643 00:27:41,680 --> 00:27:45,440 Speaker 2: just not true. That stuff doesn't matter, doesn't factor into 644 00:27:45,440 --> 00:27:48,120 Speaker 2: your credit score, and it's not getting reported in any 645 00:27:48,119 --> 00:27:49,400 Speaker 2: way to the credit bureaus. 646 00:27:49,480 --> 00:27:50,280 Speaker 1: So just know that. 647 00:27:50,440 --> 00:27:52,800 Speaker 2: Yeah, the way you do banking, who you bank with, 648 00:27:53,080 --> 00:27:55,480 Speaker 2: and some of those minor infractions that you might run 649 00:27:55,480 --> 00:27:57,760 Speaker 2: a fout of, they're not going to impact your score 650 00:27:57,800 --> 00:27:58,280 Speaker 2: in any way. 651 00:27:58,400 --> 00:28:00,240 Speaker 1: Yeah, the credit bureaus, they don't care what you do 652 00:28:00,320 --> 00:28:02,640 Speaker 1: with your money. Like, it's not about your money. It's 653 00:28:02,640 --> 00:28:04,919 Speaker 1: about other people's money, right, It's about the money that 654 00:28:05,000 --> 00:28:07,000 Speaker 1: you've borrowed and whether or not you're paying that back, 655 00:28:07,200 --> 00:28:09,760 Speaker 1: how you're handling that money. They don't care what you 656 00:28:09,840 --> 00:28:12,280 Speaker 1: do with your money. Yeah, exactly, that's up to you. 657 00:28:12,320 --> 00:28:13,879 Speaker 1: That's you and your business, Like are you a good borrower? 658 00:28:14,000 --> 00:28:16,680 Speaker 1: Not are you a good saber? Exactly. Yeah. Another myth 659 00:28:16,720 --> 00:28:19,000 Speaker 1: we wanted to get to. There's this one where you 660 00:28:19,000 --> 00:28:22,040 Speaker 1: should hire someone to help fix your banged up credit score. 661 00:28:22,880 --> 00:28:26,639 Speaker 1: We completely disagree with this one. There's nothing that someone 662 00:28:26,640 --> 00:28:28,760 Speaker 1: on the internet claiming to help your score can do 663 00:28:28,920 --> 00:28:30,600 Speaker 1: that you can't do for yourself. 664 00:28:30,640 --> 00:28:32,480 Speaker 2: Oh man, there's so many bold on anxious claims on 665 00:28:32,480 --> 00:28:33,440 Speaker 2: the internet too, Matt. 666 00:28:33,320 --> 00:28:36,000 Speaker 1: Yeah, well yeah, you got to ignore all the most 667 00:28:36,000 --> 00:28:38,520 Speaker 1: of all those false head lines. This is just a 668 00:28:38,520 --> 00:28:40,920 Speaker 1: waste of money, though, and oftentimes it's an all out 669 00:28:41,560 --> 00:28:44,160 Speaker 1: con or a scam. Oftentimes they're going to try to 670 00:28:44,200 --> 00:28:46,719 Speaker 1: charge you an upfront fee and then they end up 671 00:28:46,760 --> 00:28:49,680 Speaker 1: not being able to deliver on the promises, which often 672 00:28:49,720 --> 00:28:52,920 Speaker 1: includes claiming to be able to remove that negative information 673 00:28:53,000 --> 00:28:56,160 Speaker 1: from your credit report, even if that information is accurate. 674 00:28:56,480 --> 00:28:58,760 Speaker 1: They cannot do that. That is not true. So avoid 675 00:28:58,760 --> 00:29:01,400 Speaker 1: anyone who says that they'll fix your score if you 676 00:29:01,480 --> 00:29:02,360 Speaker 1: just pay them some money. 677 00:29:02,440 --> 00:29:04,320 Speaker 2: And I think this is another just too good to 678 00:29:04,360 --> 00:29:06,800 Speaker 2: be true sort of thing right where people are like, oh, yes, 679 00:29:06,840 --> 00:29:08,600 Speaker 2: if I don't pay my credit card balance, my score 680 00:29:08,600 --> 00:29:11,080 Speaker 2: will magically go up. Or wait, if I pay this person, 681 00:29:11,880 --> 00:29:14,480 Speaker 2: you know, five hundred bucks a thousand bucks, my problem 682 00:29:14,560 --> 00:29:17,280 Speaker 2: of a crummy credit score will quickly dissipate. It's going 683 00:29:17,320 --> 00:29:19,680 Speaker 2: to be gone. But it's just like a good rich 684 00:29:19,760 --> 00:29:23,280 Speaker 2: quick scheme. Like the promises sound appealing, and when you're 685 00:29:23,320 --> 00:29:26,880 Speaker 2: in that mind, you want things to get fixed quickly. 686 00:29:26,880 --> 00:29:29,880 Speaker 2: Anyone things will be easy, yes, but in reality that's 687 00:29:29,880 --> 00:29:32,680 Speaker 2: not how it works. And basically you're always swindled out 688 00:29:32,760 --> 00:29:35,560 Speaker 2: of your money because there is no way to just 689 00:29:35,760 --> 00:29:37,040 Speaker 2: change your credit score overnight. 690 00:29:37,160 --> 00:29:38,760 Speaker 1: Yeah that's right, just like you can't just take a 691 00:29:38,800 --> 00:29:42,520 Speaker 1: pill and magically get fit. Like it takes hard work, 692 00:29:42,520 --> 00:29:45,600 Speaker 1: it takes discipline, and really wish you could though personal responsibility. 693 00:29:45,920 --> 00:29:47,840 Speaker 1: But we'll talk more about how to raise your credit 694 00:29:47,920 --> 00:29:50,800 Speaker 1: score and how you can do it without anyone else's help, 695 00:29:50,840 --> 00:30:02,840 Speaker 1: and we'll get to all of that right after this break, Right, Matt, 696 00:30:03,080 --> 00:30:03,480 Speaker 1: you got to. 697 00:30:03,480 --> 00:30:05,920 Speaker 2: Talk about how people can heal their own credit scores 698 00:30:06,000 --> 00:30:08,720 Speaker 2: without paying big bucks to scam artists on the internet. 699 00:30:08,920 --> 00:30:10,560 Speaker 2: We'll get to that in just a second. I wanted 700 00:30:10,560 --> 00:30:14,200 Speaker 2: to cover just one more credit score myth, and maybe 701 00:30:14,200 --> 00:30:16,560 Speaker 2: it isn't even a myth anymore, but you know, a 702 00:30:16,640 --> 00:30:19,840 Speaker 2: question we've been asked on the show multiple times has 703 00:30:19,920 --> 00:30:23,040 Speaker 2: to do with the impact on your credit score by 704 00:30:23,040 --> 00:30:25,320 Speaker 2: closing a credit card that you're not using. This is 705 00:30:25,320 --> 00:30:28,000 Speaker 2: something that there's still just a ton of confusion in 706 00:30:28,040 --> 00:30:31,360 Speaker 2: that arena over and this is important to cover because 707 00:30:31,520 --> 00:30:34,400 Speaker 2: your credit score, it's composed of a number of factors, 708 00:30:34,400 --> 00:30:36,680 Speaker 2: and really we should we should talk about that because 709 00:30:37,200 --> 00:30:39,320 Speaker 2: you might be hurting yourself on two of the main 710 00:30:39,400 --> 00:30:43,280 Speaker 2: fronts if you cancel an older card. So some people 711 00:30:43,840 --> 00:30:46,160 Speaker 2: I get the impulse they want to cancel a card 712 00:30:46,200 --> 00:30:48,920 Speaker 2: because they just paid off and then balance their credit 713 00:30:48,920 --> 00:30:51,239 Speaker 2: card debt free. And what they want to do is 714 00:30:51,440 --> 00:30:52,600 Speaker 2: get it out of their life. 715 00:30:53,320 --> 00:30:55,560 Speaker 1: Or maybe they're like Marie condoing their life and they're just, yeah, 716 00:30:55,600 --> 00:30:59,680 Speaker 1: I want just to simplify, simplify, and we're cleaning house, close, close, close. 717 00:30:59,480 --> 00:31:03,320 Speaker 2: And then find their credit score takes a beating, right, 718 00:31:03,520 --> 00:31:05,560 Speaker 2: And that's because, first of all, the age of your 719 00:31:05,560 --> 00:31:08,719 Speaker 2: credit matters, So the longer you've had the card, the 720 00:31:08,720 --> 00:31:12,120 Speaker 2: more it's helping your score. And yeah, if you cancel it, 721 00:31:12,480 --> 00:31:16,080 Speaker 2: that's gonna that's gonna impact you negatively. Also, credit utilization 722 00:31:16,360 --> 00:31:20,560 Speaker 2: is an important term that you've got to be familiar with. Basically, 723 00:31:20,600 --> 00:31:23,920 Speaker 2: the bureaus want you to have a lot of available 724 00:31:24,040 --> 00:31:27,480 Speaker 2: credit but to be using very very little of it. 725 00:31:27,520 --> 00:31:30,480 Speaker 2: Basically it shows restraint, which makes you look like a 726 00:31:30,480 --> 00:31:33,560 Speaker 2: better borrower. It's like, oh, look at Jack over there, 727 00:31:33,640 --> 00:31:35,720 Speaker 2: or look at Jill over there. It's like they have 728 00:31:36,000 --> 00:31:38,800 Speaker 2: just so much credit access but they use so very 729 00:31:38,800 --> 00:31:41,400 Speaker 2: little of it, they must be a stupe borrower who 730 00:31:41,480 --> 00:31:43,920 Speaker 2: doesn't get in over their head. So yeah, instead of 731 00:31:43,960 --> 00:31:47,400 Speaker 2: canceling a card, we would suggest keeping it open even 732 00:31:47,440 --> 00:31:50,560 Speaker 2: once it's paid off in full, which is what we suggest, 733 00:31:50,600 --> 00:31:52,200 Speaker 2: Like we don't want you to have any credit card 734 00:31:52,200 --> 00:31:54,800 Speaker 2: debt ever, but yeah, use it every couple of months, 735 00:31:54,800 --> 00:31:57,640 Speaker 2: continue to pay it off in full and on time, 736 00:31:58,080 --> 00:32:00,240 Speaker 2: and that card is going to keep helping you out 737 00:32:00,680 --> 00:32:03,560 Speaker 2: even if you found maybe better rewards and perks with 738 00:32:03,600 --> 00:32:05,800 Speaker 2: another card. Or you're like, listen, I'm just out of 739 00:32:05,800 --> 00:32:08,280 Speaker 2: credit card debt altogether, and I don't even want to 740 00:32:08,280 --> 00:32:10,800 Speaker 2: be bothered by by this thing anymore. Still, you can 741 00:32:10,800 --> 00:32:12,520 Speaker 2: still cut it up, or you can still stick it 742 00:32:12,560 --> 00:32:14,800 Speaker 2: in the freezer, whatever you need to do. But what 743 00:32:14,920 --> 00:32:16,920 Speaker 2: you don't want to do is call the credit card 744 00:32:16,960 --> 00:32:19,040 Speaker 2: company and cancel that card altogether. 745 00:32:19,360 --> 00:32:21,480 Speaker 1: That's right. And you mentioned too, using a card like 746 00:32:21,520 --> 00:32:23,800 Speaker 1: maybe every couple months to kind of keep that line active. 747 00:32:24,200 --> 00:32:26,600 Speaker 1: I'll mention that I've got at least three cards that 748 00:32:26,720 --> 00:32:29,880 Speaker 1: I never use. They are cards that I have laid 749 00:32:29,920 --> 00:32:33,000 Speaker 1: to rest, so to speak, and I only use them 750 00:32:33,000 --> 00:32:35,160 Speaker 1: one like literally I think once a year now, and 751 00:32:35,320 --> 00:32:37,800 Speaker 1: that at least in my case, you know, your mileage 752 00:32:37,840 --> 00:32:39,960 Speaker 1: may vary. In my case, I've been able to keep 753 00:32:39,960 --> 00:32:42,880 Speaker 1: those accounts open by literally only using those cards once 754 00:32:42,960 --> 00:32:45,760 Speaker 1: a year. And that is a City card, a Discover card, 755 00:32:45,880 --> 00:32:48,160 Speaker 1: and a Capital One card. H and so it may 756 00:32:48,160 --> 00:32:50,240 Speaker 1: not even take you using it every couple of months. 757 00:32:50,360 --> 00:32:51,800 Speaker 1: But it also too, I mean, it kind of depends 758 00:32:51,840 --> 00:32:54,480 Speaker 1: on how many lines of credit you have, right So 759 00:32:54,520 --> 00:32:56,160 Speaker 1: if you've got I don't know, I mean, if you've 760 00:32:56,160 --> 00:33:00,280 Speaker 1: got twelve credit cards, if there's one that's you just 761 00:33:00,280 --> 00:33:02,040 Speaker 1: really want to get rid of, maybe specifically if it 762 00:33:02,120 --> 00:33:04,520 Speaker 1: has especially if it has an annual fee and you're 763 00:33:04,560 --> 00:33:07,680 Speaker 1: not getting any value from that card, that account would 764 00:33:07,680 --> 00:33:09,640 Speaker 1: be a great candidate to close. First of all, you've 765 00:33:09,680 --> 00:33:12,400 Speaker 1: got multiple lines of credit already, and so it's not 766 00:33:12,440 --> 00:33:15,400 Speaker 1: like you're going to be significantly reducing your card utilization. 767 00:33:15,640 --> 00:33:18,640 Speaker 1: But again, the fact that you're paying ninety potentially ninety 768 00:33:18,640 --> 00:33:20,760 Speaker 1: five bucks a year, whatever the annual fee is, you 769 00:33:20,800 --> 00:33:22,960 Speaker 1: need to make sure that you're actually getting that value 770 00:33:22,960 --> 00:33:25,200 Speaker 1: from that card if you're going to be paying that exactly. 771 00:33:25,200 --> 00:33:26,520 Speaker 2: I think that is one of the only reasons I 772 00:33:26,560 --> 00:33:28,200 Speaker 2: think I have an article up on the site about 773 00:33:28,440 --> 00:33:31,040 Speaker 2: when and how you should go about canceling a credit card. 774 00:33:31,600 --> 00:33:34,200 Speaker 2: Where we'll put that in the show notes. But I think, Matt, 775 00:33:34,240 --> 00:33:36,239 Speaker 2: the one other thing you could do if you have 776 00:33:36,280 --> 00:33:38,160 Speaker 2: a credit card with an annual fee is you can 777 00:33:38,200 --> 00:33:39,920 Speaker 2: call your credit card company up and say, hey, can 778 00:33:39,920 --> 00:33:43,160 Speaker 2: you actually transfer me to another credit card yeah, that 779 00:33:43,360 --> 00:33:47,040 Speaker 2: has no annual fee with the same issuer. And oftentimes 780 00:33:47,080 --> 00:33:49,600 Speaker 2: they'll do that, and so it retains that credit history, 781 00:33:50,040 --> 00:33:51,560 Speaker 2: but you still get rid of that annual fee. That's 782 00:33:51,600 --> 00:33:52,720 Speaker 2: kind of pesky, exactly. 783 00:33:52,800 --> 00:33:55,600 Speaker 1: Yeah, they're happy that you haven't completely lost your allegiance 784 00:33:55,640 --> 00:33:58,040 Speaker 1: to them as a company, and you are happy because 785 00:33:58,040 --> 00:34:00,240 Speaker 1: you're not having to fork over that money for or 786 00:34:00,440 --> 00:34:03,240 Speaker 1: no value in return. And so you know, we also 787 00:34:03,240 --> 00:34:05,360 Speaker 1: want to make sure that you don't feel the need 788 00:34:05,400 --> 00:34:07,960 Speaker 1: to obsess over your credit score. You touched on this earlier, Joel, 789 00:34:08,000 --> 00:34:11,120 Speaker 1: but like it's an important part of your personal finances. 790 00:34:11,360 --> 00:34:14,160 Speaker 1: It's worth keeping tabs on. But it is possible to 791 00:34:14,200 --> 00:34:17,360 Speaker 1: be too attentive to your credit score, and so we 792 00:34:17,400 --> 00:34:19,640 Speaker 1: want you, if this is you, we want you to 793 00:34:19,719 --> 00:34:22,560 Speaker 1: limit the amount of time that you're giving it, like 794 00:34:22,560 --> 00:34:24,880 Speaker 1: maybe just check it once a quarter in order to know, 795 00:34:25,320 --> 00:34:27,440 Speaker 1: you know, what your score is looking like. You can 796 00:34:27,480 --> 00:34:31,200 Speaker 1: even just set a calendar reminder for yourself. It is 797 00:34:31,239 --> 00:34:33,680 Speaker 1: important because a dinged credit score can tip you off 798 00:34:33,680 --> 00:34:36,640 Speaker 1: to something that you might not be aware of, that 799 00:34:36,719 --> 00:34:38,799 Speaker 1: might have been added to your credit report, maybe even 800 00:34:38,840 --> 00:34:42,360 Speaker 1: by mistake. Discovers credit scorecard credit Karma, they're two of 801 00:34:42,400 --> 00:34:45,319 Speaker 1: our favorite sites for checking your credit. They'll even give 802 00:34:45,360 --> 00:34:47,520 Speaker 1: you a peek under the hood of your credit score 803 00:34:47,600 --> 00:34:50,359 Speaker 1: to see what might be causing the problem. You'll find 804 00:34:50,400 --> 00:34:53,440 Speaker 1: some helpful education tools there as well, and studies have 805 00:34:53,440 --> 00:34:55,840 Speaker 1: shown that just knowing your score is an important step 806 00:34:55,880 --> 00:34:59,080 Speaker 1: towards improving it, so that awareness it goes a long 807 00:34:59,120 --> 00:35:02,000 Speaker 1: way towards doing the work to make it better. But 808 00:35:02,040 --> 00:35:03,560 Speaker 1: we don't want it to be something that you're checking 809 00:35:03,560 --> 00:35:05,480 Speaker 1: every single morning, like before you check your email. Like 810 00:35:05,520 --> 00:35:07,360 Speaker 1: it doesn't need to be a part of your routine. Yes, no, 811 00:35:07,400 --> 00:35:08,240 Speaker 1: I'll completely agree. 812 00:35:08,320 --> 00:35:11,320 Speaker 2: I think that the diagnostic feature though of those websites 813 00:35:11,480 --> 00:35:13,960 Speaker 2: is really helpful because if you're saying, Okay, I see 814 00:35:14,000 --> 00:35:16,640 Speaker 2: what my credit score is, it's not in the best spot. 815 00:35:16,719 --> 00:35:18,840 Speaker 2: I really want to raise it to that seven forty 816 00:35:18,840 --> 00:35:21,200 Speaker 2: plus level that Matt and Joel we're talking about how 817 00:35:21,200 --> 00:35:23,080 Speaker 2: do I get there, Well, you'll see the areas that 818 00:35:23,120 --> 00:35:24,520 Speaker 2: are holding you back. And it might be length of 819 00:35:24,560 --> 00:35:26,520 Speaker 2: credit history that might be one of the biggest things. 820 00:35:26,560 --> 00:35:28,440 Speaker 2: Or it might be on time payments, which if you've 821 00:35:28,480 --> 00:35:30,000 Speaker 2: had a few of those, those are going to hurt 822 00:35:30,000 --> 00:35:32,279 Speaker 2: your creditscore in a big way. Those will over time 823 00:35:32,360 --> 00:35:34,440 Speaker 2: fall off. But there are all these little things that 824 00:35:34,440 --> 00:35:38,320 Speaker 2: you can see as you're looking at that diagnostic toolkit 825 00:35:38,640 --> 00:35:41,400 Speaker 2: on those sites where you can know where to focus 826 00:35:41,440 --> 00:35:43,800 Speaker 2: your efforts on how to make your credit score better. 827 00:35:44,080 --> 00:35:47,799 Speaker 2: And I think, yeah, you don't pay anybody money right 828 00:35:47,840 --> 00:35:50,040 Speaker 2: to do something that they can't actually do. But when 829 00:35:50,080 --> 00:35:52,160 Speaker 2: you look at that and you figure out what's holding 830 00:35:52,200 --> 00:35:54,880 Speaker 2: you back, then you can address it with how you 831 00:35:54,920 --> 00:35:56,920 Speaker 2: handle your credit in the future totally. 832 00:35:57,000 --> 00:35:57,520 Speaker 1: And here's the thing. 833 00:35:57,560 --> 00:35:59,319 Speaker 2: If you do check your credit score and you find 834 00:35:59,320 --> 00:36:01,520 Speaker 2: out that it's taken a hit, well, then make sure 835 00:36:01,560 --> 00:36:04,520 Speaker 2: to pull your credit report from the site Annual Credit 836 00:36:04,600 --> 00:36:07,319 Speaker 2: report dot com. And I kind of alluded to this 837 00:36:07,400 --> 00:36:09,560 Speaker 2: earlier math that the credit report and the score are 838 00:36:09,560 --> 00:36:11,560 Speaker 2: two different things. The report kind of list out all 839 00:36:11,600 --> 00:36:13,000 Speaker 2: the things that are happening with your credit and the 840 00:36:13,000 --> 00:36:16,400 Speaker 2: score gives you a numerical reading of what you're you know, 841 00:36:16,400 --> 00:36:19,000 Speaker 2: what's basically on that report, and so if there are 842 00:36:19,040 --> 00:36:20,880 Speaker 2: any errors, you're going to want to make sure to 843 00:36:20,960 --> 00:36:24,200 Speaker 2: file a dispute directly with the with the credit bureau 844 00:36:24,320 --> 00:36:27,040 Speaker 2: where that issue lies. And so, yeah, something like one 845 00:36:27,160 --> 00:36:30,440 Speaker 2: in four credit reports contains an error. So there's no 846 00:36:30,520 --> 00:36:33,439 Speaker 2: need to stress if your report has something fishy on it. 847 00:36:33,440 --> 00:36:35,880 Speaker 2: It's not like you are an anomaly. 848 00:36:36,680 --> 00:36:37,080 Speaker 1: A lot of. 849 00:36:37,080 --> 00:36:40,560 Speaker 2: People have this issue. Sadly, the bureaus they don't do 850 00:36:40,600 --> 00:36:43,600 Speaker 2: an amazing job at responding to those disputes. Their track 851 00:36:43,600 --> 00:36:46,160 Speaker 2: record has only gotten worse over the past couple of years. 852 00:36:46,560 --> 00:36:50,120 Speaker 2: And yeah, here we would say that's not right. The 853 00:36:50,160 --> 00:36:52,399 Speaker 2: credit bureaus need to do a better job. And it 854 00:36:52,440 --> 00:36:56,000 Speaker 2: is borderline infuriating that they have the powers that they 855 00:36:56,000 --> 00:36:58,719 Speaker 2: have to amass all the data on us that they 856 00:36:58,760 --> 00:37:01,880 Speaker 2: do and then to pack and sell our credit scores 857 00:37:02,719 --> 00:37:05,800 Speaker 2: without actually having to verify that the information is accurate. 858 00:37:06,080 --> 00:37:07,560 Speaker 2: But here's the thing, you've got to beat the squeaky 859 00:37:07,600 --> 00:37:10,239 Speaker 2: wheel in order to get that error fixed, because the 860 00:37:10,280 --> 00:37:13,160 Speaker 2: credit bureaus they're big behemoths. And yeah, you've got to 861 00:37:13,200 --> 00:37:16,279 Speaker 2: be like that little David beating up Egliath in order 862 00:37:16,440 --> 00:37:19,400 Speaker 2: to get change actually to happen to make sure your 863 00:37:19,440 --> 00:37:22,840 Speaker 2: credit score reflects accurately the truth about what's happening with 864 00:37:22,880 --> 00:37:23,280 Speaker 2: your credit. 865 00:37:23,480 --> 00:37:26,400 Speaker 1: That's right, And by the way, real quick Annual Credit 866 00:37:26,440 --> 00:37:28,319 Speaker 1: Report dot Com you can still go there, Like they 867 00:37:28,320 --> 00:37:31,560 Speaker 1: should call it weekly credit report dot Com because like 868 00:37:31,680 --> 00:37:33,480 Speaker 1: it was the middle of the pandemic when they switched 869 00:37:33,520 --> 00:37:36,239 Speaker 1: to you being able to get all three reports for 870 00:37:36,239 --> 00:37:37,520 Speaker 1: free every single week. 871 00:37:38,440 --> 00:37:40,280 Speaker 2: But I hope that becomes normal forever. 872 00:37:40,400 --> 00:37:42,040 Speaker 1: Well, things haven't changed yet, but it's set to go 873 00:37:42,120 --> 00:37:45,040 Speaker 1: back in the middle of April to reset, and so 874 00:37:45,040 --> 00:37:47,560 Speaker 1: those free weekly reports are running out. So if that's 875 00:37:47,560 --> 00:37:49,439 Speaker 1: something you haven't done yet, now would be a great 876 00:37:49,440 --> 00:37:50,799 Speaker 1: time to go ahead and get get in there, get 877 00:37:50,800 --> 00:37:53,600 Speaker 1: all three before the usual rules come back to play. 878 00:37:53,840 --> 00:37:55,319 Speaker 1: But but, like you're saying, jel, like we're not big 879 00:37:55,320 --> 00:37:58,320 Speaker 1: fans of the credit report the scoring system as it stands, 880 00:37:58,440 --> 00:38:01,560 Speaker 1: largely because of the depensity for the errors that you're 881 00:38:01,560 --> 00:38:04,239 Speaker 1: just talking about, and the reality that the credit Burea 882 00:38:04,320 --> 00:38:06,239 Speaker 1: is that like they could care less about the errors 883 00:38:06,239 --> 00:38:09,080 Speaker 1: themselves or helping you to resolve them, because again, you 884 00:38:09,120 --> 00:38:12,560 Speaker 1: are not the customer. They are selling your data to 885 00:38:12,680 --> 00:38:15,680 Speaker 1: their actual customers. You are the data, yep. But those 886 00:38:15,800 --> 00:38:18,160 Speaker 1: errors they can prevent folks from getting loans, you know, 887 00:38:18,200 --> 00:38:22,239 Speaker 1: even sometimes getting jobs. But credit scores are a reality 888 00:38:22,239 --> 00:38:25,040 Speaker 1: that we all have to deal with. Not paying attention 889 00:38:25,120 --> 00:38:27,320 Speaker 1: to your credit score or pretending that it doesn't exist, 890 00:38:27,480 --> 00:38:31,080 Speaker 1: that's going to eventually have a negative impact on your life. 891 00:38:31,200 --> 00:38:32,560 Speaker 1: You're not going to be able to qualify for a 892 00:38:32,600 --> 00:38:34,359 Speaker 1: home loan that you really want, or you know, maybe 893 00:38:34,400 --> 00:38:36,560 Speaker 1: you won't qualify for the best interest rate at least 894 00:38:37,120 --> 00:38:40,000 Speaker 1: increasing the monthly cost of that mortgage. You can hate 895 00:38:40,000 --> 00:38:42,759 Speaker 1: the game, but it is still smart to play it, Like, 896 00:38:42,800 --> 00:38:44,880 Speaker 1: even when the rules of the game are changing, like 897 00:38:44,920 --> 00:38:47,120 Speaker 1: even by now pay later, that is starting to become 898 00:38:47,160 --> 00:38:50,279 Speaker 1: something that is getting incorporated into credit scores. It's something 899 00:38:50,360 --> 00:38:52,759 Speaker 1: that we all need to be aware of. We need 900 00:38:52,800 --> 00:38:54,399 Speaker 1: to know how to play the games, even if we're 901 00:38:54,440 --> 00:38:55,919 Speaker 1: not the biggest fan of the game. 902 00:38:56,280 --> 00:38:58,840 Speaker 2: Yeah, so let's give a few final tips, just kind of. 903 00:38:58,840 --> 00:39:00,719 Speaker 1: Maybe to sum it up. 904 00:39:00,800 --> 00:39:03,440 Speaker 2: Yeah, Like, well, how are just a few ways if 905 00:39:03,440 --> 00:39:05,759 Speaker 2: we were going to give you just three or four 906 00:39:05,800 --> 00:39:09,560 Speaker 2: suggestions on how to improve your credit score the most quickly, right, 907 00:39:09,800 --> 00:39:12,919 Speaker 2: what are your big takeaways for this st effort? Right, 908 00:39:13,640 --> 00:39:15,480 Speaker 2: I would say that kind of thing. One thing, of course, 909 00:39:15,600 --> 00:39:19,000 Speaker 2: is to pay your bills on time, right, And if 910 00:39:19,000 --> 00:39:20,600 Speaker 2: you don't do that, that is going to dig your 911 00:39:20,640 --> 00:39:23,920 Speaker 2: credit more than anything else. Late pays or not paying 912 00:39:24,239 --> 00:39:27,120 Speaker 2: are going to be the worst reflection on you as 913 00:39:27,160 --> 00:39:29,400 Speaker 2: a borrower, and they're going to crush your score. And 914 00:39:29,880 --> 00:39:33,000 Speaker 2: a single missed payment, Matt can lop one hundred points 915 00:39:33,080 --> 00:39:36,120 Speaker 2: off of somebody's credit score. So yeah, use debt smartly, 916 00:39:36,440 --> 00:39:39,480 Speaker 2: pay off your debts as you've agreed to. Basically, you 917 00:39:39,480 --> 00:39:41,480 Speaker 2: don't want to get in over your head. Don't kid 918 00:39:41,520 --> 00:39:44,239 Speaker 2: yourself into thinking that taking on a big car loan 919 00:39:44,880 --> 00:39:47,240 Speaker 2: is smart just because it's going to give your score 920 00:39:47,280 --> 00:39:51,839 Speaker 2: a bump. That's a bad move. Intelligently using a few 921 00:39:51,840 --> 00:39:54,040 Speaker 2: different credit cards each month to pay for your needs 922 00:39:54,040 --> 00:39:57,440 Speaker 2: and then paying those balances in full is helpful, and 923 00:39:57,480 --> 00:40:00,400 Speaker 2: then don't close those accounts. So, yeah, you want access 924 00:40:00,440 --> 00:40:03,360 Speaker 2: to these varied kinds of credit, but only credit that 925 00:40:03,400 --> 00:40:05,640 Speaker 2: you can handle, only credit that you can use wisely, 926 00:40:06,040 --> 00:40:09,759 Speaker 2: And yeah, credit cards are a portion of those. Using 927 00:40:09,840 --> 00:40:13,480 Speaker 2: them intelligently is going to help your score. Having seasoned 928 00:40:13,560 --> 00:40:15,680 Speaker 2: credit in your possession is a good thing too, right, 929 00:40:16,000 --> 00:40:17,960 Speaker 2: Like we said, the longer you've had some of those 930 00:40:18,080 --> 00:40:21,040 Speaker 2: credit products around in your life, especially some of those 931 00:40:21,080 --> 00:40:23,440 Speaker 2: credit cards that you've had for a decade plus, it's 932 00:40:23,480 --> 00:40:25,560 Speaker 2: like you don't want to get rid of that because 933 00:40:25,640 --> 00:40:29,400 Speaker 2: that is having a helpful impact on your credit score. 934 00:40:29,760 --> 00:40:33,319 Speaker 2: And then Matt, for somebody out there who says, I've 935 00:40:33,320 --> 00:40:35,759 Speaker 2: got a really bad score and you know, I can't 936 00:40:35,800 --> 00:40:39,440 Speaker 2: even get a credit card right now, Well, if your 937 00:40:39,440 --> 00:40:41,719 Speaker 2: credit score is in really poor shape, we would recommend 938 00:40:41,800 --> 00:40:44,800 Speaker 2: a site like self dot, Inc. And that's our favorite 939 00:40:44,800 --> 00:40:47,240 Speaker 2: place for people to turn. They have these credit builder 940 00:40:47,280 --> 00:40:49,239 Speaker 2: accounts and they're a great way to quickly build up 941 00:40:49,280 --> 00:40:52,560 Speaker 2: your score through a credit builder alone. So that's one 942 00:40:52,560 --> 00:40:54,680 Speaker 2: of the first things we would recommend. That's one of 943 00:40:54,719 --> 00:40:57,000 Speaker 2: the best places to go to be able to quickly 944 00:40:57,000 --> 00:41:00,680 Speaker 2: start jumpstarting your score. But yeah, I think we actually 945 00:41:00,680 --> 00:41:04,000 Speaker 2: did an episode specifically for people who have a rough 946 00:41:04,320 --> 00:41:07,080 Speaker 2: or busted up credit score, right episode one thirteen. 947 00:41:07,120 --> 00:41:09,160 Speaker 1: If you want to dig back into the archives and listen. 948 00:41:09,000 --> 00:41:10,400 Speaker 2: To that one, Okay, yeah, we'll link that in the 949 00:41:10,400 --> 00:41:12,880 Speaker 2: show notes as well. But yeah, there are different tactics 950 00:41:12,920 --> 00:41:14,720 Speaker 2: that you're going to want to take if your credit 951 00:41:14,760 --> 00:41:18,280 Speaker 2: score is already just completely in the dumps. But again, 952 00:41:18,320 --> 00:41:20,279 Speaker 2: this is one of those things that you can do 953 00:41:20,480 --> 00:41:22,640 Speaker 2: and you do not need the help of some faux 954 00:41:22,640 --> 00:41:25,440 Speaker 2: Internet professional to get you to where you need to be. 955 00:41:25,600 --> 00:41:27,360 Speaker 1: That's right. And by the way, if you have kids 956 00:41:27,600 --> 00:41:30,600 Speaker 1: and you want them to reach adulthood and have a 957 00:41:30,600 --> 00:41:33,000 Speaker 1: great credit score, it's actually pretty easy to get them 958 00:41:33,000 --> 00:41:35,160 Speaker 1: started off on the right foot. One of the best 959 00:41:35,160 --> 00:41:38,080 Speaker 1: ways to accomplish this is to make them an authorized 960 00:41:38,239 --> 00:41:40,560 Speaker 1: user on one of your credit card accounts, but not 961 00:41:40,840 --> 00:41:42,960 Speaker 1: give them an actual card. And that's the trick. You 962 00:41:42,960 --> 00:41:45,879 Speaker 1: don't want your eight year older I guys running around 963 00:41:45,880 --> 00:41:48,279 Speaker 1: with a credit card. But this assumes that you have 964 00:41:48,400 --> 00:41:51,120 Speaker 1: and you continue to have and maintain good credit. But 965 00:41:51,200 --> 00:41:53,560 Speaker 1: the credit bureaus, they're going to see your child with 966 00:41:53,640 --> 00:41:56,600 Speaker 1: access to that good credit you know themselves, and it will, 967 00:41:56,640 --> 00:42:00,000 Speaker 1: by association, inflate their credit worthiness. It's a nice little, 968 00:42:00,320 --> 00:42:02,080 Speaker 1: nice little tit nice little hack. We've talked about this 969 00:42:02,560 --> 00:42:04,040 Speaker 1: maybe on the show. Was it like a year ago, 970 00:42:04,080 --> 00:42:06,719 Speaker 1: maybe year and a half ago, And I haven't checked 971 00:42:06,719 --> 00:42:09,400 Speaker 1: my kid's credit But at that point in time, I 972 00:42:09,440 --> 00:42:12,239 Speaker 1: added my kids to one of my cards. They're still 973 00:42:12,239 --> 00:42:14,319 Speaker 1: on that card. I still use that card. And pay 974 00:42:14,360 --> 00:42:17,080 Speaker 1: it off on time in full. Some guessing they've got 975 00:42:17,160 --> 00:42:18,000 Speaker 1: pretty stellar credit. 976 00:42:18,000 --> 00:42:20,120 Speaker 2: I think they say their prayers every night, like please Lord, 977 00:42:20,160 --> 00:42:22,600 Speaker 2: lynd Daddy pay his credit card bill so he doesn't 978 00:42:22,640 --> 00:42:24,759 Speaker 2: hurt my credit now. But no, you're right, like that 979 00:42:24,840 --> 00:42:27,520 Speaker 2: is one of those things that you can do for 980 00:42:27,560 --> 00:42:30,400 Speaker 2: your kids, and it can be really helpful for It's 981 00:42:30,440 --> 00:42:32,200 Speaker 2: like a nice little service you can starting them off 982 00:42:32,239 --> 00:42:34,239 Speaker 2: on the right foot a little bit of credit. Yeah, 983 00:42:34,280 --> 00:42:36,120 Speaker 2: all right, I want to ask you one question here 984 00:42:36,160 --> 00:42:39,880 Speaker 2: at the end, because I think right now credit scores 985 00:42:39,960 --> 00:42:42,640 Speaker 2: still matter a great deal in our society, right and 986 00:42:42,800 --> 00:42:44,759 Speaker 2: it's one of the things that we're saying that you 987 00:42:44,840 --> 00:42:46,720 Speaker 2: kind of can't get around. You have to pay attention 988 00:42:46,760 --> 00:42:49,400 Speaker 2: to it. It's part of the game, the personal finance 989 00:42:49,440 --> 00:42:51,440 Speaker 2: game that we all play, and so you just have 990 00:42:51,480 --> 00:42:53,400 Speaker 2: to be ready to suit up and do your best. 991 00:42:53,440 --> 00:42:56,480 Speaker 2: But yeah, do you think that credit scores in their 992 00:42:56,480 --> 00:42:57,799 Speaker 2: current iteration are think? 993 00:42:58,040 --> 00:43:00,480 Speaker 1: Okay, yeah, like you're diving into the fiction now, Yeah, 994 00:43:00,520 --> 00:43:03,440 Speaker 1: the possibility, I only deal in fact, ten years in 995 00:43:03,480 --> 00:43:05,680 Speaker 1: the future, will credit scores play as big of an 996 00:43:05,680 --> 00:43:08,200 Speaker 1: impact in our personal finance lives as they do today? 997 00:43:08,239 --> 00:43:11,840 Speaker 1: I mean they do now. I think as different apps 998 00:43:12,080 --> 00:43:14,319 Speaker 1: come online, like basically all I feel like all the 999 00:43:14,320 --> 00:43:17,200 Speaker 1: different finance apps are in an arms race right to 1000 00:43:17,360 --> 00:43:21,560 Speaker 1: get as many customers as possible. Whether that's initially an 1001 00:43:21,560 --> 00:43:23,560 Speaker 1: app that allows you to transfer money to your friends 1002 00:43:23,680 --> 00:43:25,680 Speaker 1: very easily because they have that app as well, and 1003 00:43:25,680 --> 00:43:27,440 Speaker 1: then all of a sudden, guess what, Oh, you can 1004 00:43:27,480 --> 00:43:29,680 Speaker 1: buy a bitcoin with that app. So all of a sudden, 1005 00:43:29,719 --> 00:43:32,319 Speaker 1: now you can transfer money, you can save in that app, 1006 00:43:32,360 --> 00:43:35,359 Speaker 1: and you can also quote unquote invest. The next thing 1007 00:43:35,719 --> 00:43:38,520 Speaker 1: that a lot of these apps and money management platforms 1008 00:43:38,600 --> 00:43:40,719 Speaker 1: I think are allowing their customers to do is then 1009 00:43:40,800 --> 00:43:43,680 Speaker 1: borrow money, which guess what if they know all of 1010 00:43:43,680 --> 00:43:46,840 Speaker 1: your transactions, then they have your history. I could see 1011 00:43:47,000 --> 00:43:49,480 Speaker 1: them not necessarily needing to go to the credit bureers 1012 00:43:49,480 --> 00:43:52,520 Speaker 1: and get an actual credit report or credit score from them. 1013 00:43:52,960 --> 00:43:56,239 Speaker 1: So it depends, I guess, on what the future of 1014 00:43:56,280 --> 00:43:59,360 Speaker 1: the different finance apps look like. That is one path forward, 1015 00:43:59,360 --> 00:44:00,759 Speaker 1: but I'm not going to say that that's where we're going. 1016 00:44:00,840 --> 00:44:03,239 Speaker 1: I'm just kind of I'm laying out the future like 1017 00:44:03,840 --> 00:44:06,400 Speaker 1: this could happen or this could happen, but I'm not 1018 00:44:06,440 --> 00:44:09,120 Speaker 1: going to necessarily say that that will happen. But do 1019 00:44:09,160 --> 00:44:12,000 Speaker 1: you disagree, like you seem less optimistic about the future 1020 00:44:12,040 --> 00:44:12,640 Speaker 1: of credit school. 1021 00:44:12,640 --> 00:44:15,120 Speaker 2: I think people are so fed up and frustrated with 1022 00:44:15,200 --> 00:44:17,279 Speaker 2: the credit bureaus. Something's going to give at some point, 1023 00:44:17,360 --> 00:44:19,160 Speaker 2: and I think we've already seen alternative. 1024 00:44:19,280 --> 00:44:21,680 Speaker 1: Are they fed up or do people just not care? Right? Like, 1025 00:44:21,680 --> 00:44:25,040 Speaker 1: like when there's a data breach and fifty million people 1026 00:44:25,160 --> 00:44:28,880 Speaker 1: have have their's local security just floating around out there 1027 00:44:28,880 --> 00:44:30,919 Speaker 1: in the dark, one hundred and fifty minions, one hundred 1028 00:44:30,920 --> 00:44:34,120 Speaker 1: and fifty like, people don't care. They still have the 1029 00:44:34,120 --> 00:44:38,480 Speaker 1: same passwords that they've used for five years. You included 1030 00:44:40,000 --> 00:44:42,200 Speaker 1: I know some of your passwords, and I'm always like, 1031 00:44:42,239 --> 00:44:43,360 Speaker 1: I'm pretty sure I can guess you. 1032 00:44:43,320 --> 00:44:44,600 Speaker 2: Know, I'm trying to break into my accounts. 1033 00:44:44,600 --> 00:44:48,239 Speaker 1: Well, your new Netflix passwords is okay. Well, I'll say this. 1034 00:44:48,719 --> 00:44:51,839 Speaker 2: I think that you know, they get the highest complaints 1035 00:44:52,000 --> 00:44:54,279 Speaker 2: of when it comes to scam attempts. 1036 00:44:53,960 --> 00:44:55,640 Speaker 1: And that is when it comes to getting shut down. 1037 00:44:55,680 --> 00:44:57,520 Speaker 2: And I think that some folks in the government have 1038 00:44:57,560 --> 00:45:02,360 Speaker 2: already floated the idea that maybe a centralized control of 1039 00:45:02,360 --> 00:45:04,760 Speaker 2: credit scores could take place, some sort of government run system. 1040 00:45:05,120 --> 00:45:07,560 Speaker 2: I don't know if that would be better because the 1041 00:45:08,160 --> 00:45:12,160 Speaker 2: somewhat not really privatized system we have right now isn't 1042 00:45:12,160 --> 00:45:16,040 Speaker 2: working very well either. But I could see just companies 1043 00:45:16,040 --> 00:45:19,440 Speaker 2: making decisions based on some of your other public profiles, 1044 00:45:20,000 --> 00:45:22,839 Speaker 2: so how you act on social media, and maybe oh 1045 00:45:22,880 --> 00:45:25,080 Speaker 2: my gosh, joined it. I know, but I think it's 1046 00:45:25,280 --> 00:45:27,319 Speaker 2: already happening to a certain extent. I'm curious to see 1047 00:45:27,320 --> 00:45:28,560 Speaker 2: what happens over the next ten years. 1048 00:45:28,640 --> 00:45:31,239 Speaker 1: But it's interesting. So you see it maybe going towards 1049 00:45:31,280 --> 00:45:34,920 Speaker 1: a more centralized, you know, mechanism, either more centralized or 1050 00:45:34,920 --> 00:45:37,680 Speaker 1: completely decentralized. I see it being more decentralized with these 1051 00:45:37,719 --> 00:45:40,879 Speaker 1: independent different companies who are setting up shops with either 1052 00:45:40,920 --> 00:45:43,000 Speaker 1: within an app or just with within a site, but I. 1053 00:45:42,920 --> 00:45:44,839 Speaker 2: Think more likely, and they start to communicate to each 1054 00:45:44,840 --> 00:45:47,239 Speaker 2: other when they need like some respective information to kind 1055 00:45:47,280 --> 00:45:49,600 Speaker 2: of fill out all the dots on. I could see 1056 00:45:49,600 --> 00:45:51,680 Speaker 2: that an application that you've you know, that you've. 1057 00:45:51,560 --> 00:45:54,560 Speaker 1: Submitted that definitely feels less big brother, you know, I mean, 1058 00:45:54,600 --> 00:45:56,560 Speaker 1: come on, the future is on the blockchain anyway, So 1059 00:45:56,840 --> 00:45:59,239 Speaker 1: that's that's the direction we're going. But that's gonna be 1060 00:45:59,239 --> 00:46:01,240 Speaker 1: it for credit scores, do Let's talk about this beer 1061 00:46:01,600 --> 00:46:06,320 Speaker 1: for this episode This was Hello World by Spyglass Brewing Company, 1062 00:46:07,040 --> 00:46:09,120 Speaker 1: sent to us by Gary. What were your thoughts on 1063 00:46:09,160 --> 00:46:09,680 Speaker 1: this beer? All? 1064 00:46:09,760 --> 00:46:12,239 Speaker 2: Right, so I think this was maybe even a touch 1065 00:46:12,239 --> 00:46:14,719 Speaker 2: better than Monday's beer. Oh really, it's hard to say that. 1066 00:46:14,640 --> 00:46:16,440 Speaker 1: But I thought you were going to say that this 1067 00:46:16,520 --> 00:46:18,360 Speaker 1: one wasn't as good because I thought this one was 1068 00:46:18,400 --> 00:46:20,640 Speaker 1: a touch sweeter. Okay, it was a little bit sweeter. 1069 00:46:20,880 --> 00:46:23,600 Speaker 1: It was like a little more juicy, a little more yeah, 1070 00:46:23,640 --> 00:46:25,239 Speaker 1: Like I don't know, just juicy is the. 1071 00:46:25,239 --> 00:46:27,080 Speaker 2: Yeah, I think you're right on my head, But I 1072 00:46:27,120 --> 00:46:27,400 Speaker 2: don't know. 1073 00:46:27,440 --> 00:46:27,600 Speaker 1: Man. 1074 00:46:27,640 --> 00:46:29,760 Speaker 2: I really enjoyed both these beers. They were both really 1075 00:46:29,760 --> 00:46:34,040 Speaker 2: really different examples of hazy IPAs having different hot profiles. 1076 00:46:34,160 --> 00:46:37,360 Speaker 2: It is just amazing the way that different hot varieties 1077 00:46:37,800 --> 00:46:40,640 Speaker 2: mixed together can create just a completely different profile. And 1078 00:46:40,680 --> 00:46:43,000 Speaker 2: it always surprises me where I'm like, wait, no fruit's 1079 00:46:43,040 --> 00:46:44,840 Speaker 2: used in this or wait a second. It was just 1080 00:46:44,840 --> 00:46:47,680 Speaker 2: like two different hops and that completely changed like the 1081 00:46:47,719 --> 00:46:51,879 Speaker 2: flavor profile. But hops are just so versatile, and so 1082 00:46:52,000 --> 00:46:54,920 Speaker 2: this beer just kind of showcased a different kind of 1083 00:46:54,920 --> 00:46:58,000 Speaker 2: hop that had a distinctly different flavor profile. But Gary 1084 00:46:58,040 --> 00:46:59,800 Speaker 2: just sent in us some slammer beers. 1085 00:46:59,800 --> 00:47:02,680 Speaker 1: This can Yeah, absolutely, which, by the way, so you saying, oh, 1086 00:47:02,719 --> 00:47:04,799 Speaker 1: there's no fruit in this beer makes me takes me 1087 00:47:04,840 --> 00:47:06,680 Speaker 1: back to one of the beers that we said that on, 1088 00:47:06,719 --> 00:47:09,759 Speaker 1: which was Woodland Pursuit that was a humble Forger beer, 1089 00:47:10,000 --> 00:47:12,120 Speaker 1: And it turns out I did look it up and 1090 00:47:12,200 --> 00:47:15,200 Speaker 1: in fact, it did have fruit in it on the can. 1091 00:47:15,400 --> 00:47:17,120 Speaker 1: They don't want to advertise it. Yeah, on the can, 1092 00:47:17,160 --> 00:47:19,239 Speaker 1: it didn't say anything about fruit anywhere on the can. 1093 00:47:19,400 --> 00:47:21,600 Speaker 1: But when you go to the website or you know, 1094 00:47:21,640 --> 00:47:24,799 Speaker 1: go to the brewery, it actually was a fruited I 1095 00:47:24,800 --> 00:47:28,160 Speaker 1: believe it was a fruited IPA because Woodland Pursuit it 1096 00:47:28,200 --> 00:47:30,000 Speaker 1: was crazy off the chain fruit and you and I 1097 00:47:30,040 --> 00:47:33,000 Speaker 1: were just like racking our brains as possible. Were they 1098 00:47:33,000 --> 00:47:34,680 Speaker 1: able to pull that kind of fruit flavor out of 1099 00:47:34,680 --> 00:47:36,840 Speaker 1: this beer without any actual fruit and only with the hops. 1100 00:47:37,400 --> 00:47:39,280 Speaker 1: I don't think that's what's going on here. This tastes 1101 00:47:39,280 --> 00:47:42,000 Speaker 1: like a classic hazy double IPA And I wanted to 1102 00:47:42,000 --> 00:47:44,520 Speaker 1: point out to the label for this one. I love 1103 00:47:44,719 --> 00:47:50,120 Speaker 1: it's a black background green MSDOS print. It reminds me 1104 00:47:50,160 --> 00:47:52,080 Speaker 1: a lot of one of our favorite local brewers here, 1105 00:47:52,400 --> 00:47:54,480 Speaker 1: Halfway Crooks for sure, or they're kind of going with 1106 00:47:54,520 --> 00:47:55,840 Speaker 1: like that. I don't know what do you call it, 1107 00:47:55,880 --> 00:47:58,719 Speaker 1: like nerd sheet or something like that, But Halfway Crooks 1108 00:47:58,760 --> 00:48:02,560 Speaker 1: they've combined like the old world with like sheep and 1109 00:48:02,760 --> 00:48:06,040 Speaker 1: the European tradition of pilsners and loggers. Sounds weird, but 1110 00:48:06,080 --> 00:48:08,920 Speaker 1: they do it well and combined it with the nerdery 1111 00:48:09,160 --> 00:48:12,560 Speaker 1: of ms dos in the early computer days, which funny enough. 1112 00:48:12,600 --> 00:48:14,400 Speaker 1: I mean, that's just that's that's the perfect blend of 1113 00:48:14,440 --> 00:48:17,279 Speaker 1: the two dudes that started that brewery. Yeah, because one 1114 00:48:17,280 --> 00:48:21,200 Speaker 1: of them is from Belgium, Dan, and the other owner 1115 00:48:21,600 --> 00:48:24,560 Speaker 1: is Sean. He's from Georgia Tech. It's another one of 1116 00:48:24,560 --> 00:48:26,120 Speaker 1: the reasons why we love that brewery so much. So 1117 00:48:26,239 --> 00:48:29,160 Speaker 1: if you haven't, just right now just stearch Halfway Crooks 1118 00:48:29,200 --> 00:48:31,279 Speaker 1: and just check out their merch. We think it is 1119 00:48:31,360 --> 00:48:33,959 Speaker 1: just the dopest stuff around. And I feel bad because 1120 00:48:33,960 --> 00:48:36,200 Speaker 1: we should be talking about Spyglass that we're talking about 1121 00:48:36,239 --> 00:48:39,520 Speaker 1: one of our family. Similar aesthetic and similar aesthetics on 1122 00:48:39,560 --> 00:48:42,040 Speaker 1: this beer you'll see in the picture of this label. 1123 00:48:42,160 --> 00:48:44,400 Speaker 1: Why we're talking about you compare something that you've just 1124 00:48:44,480 --> 00:48:49,040 Speaker 1: experienced to something that you love and consider to be excellent. 1125 00:48:49,200 --> 00:48:51,160 Speaker 1: I feel like that is the highest compliment. It's a 1126 00:48:51,160 --> 00:48:53,360 Speaker 1: good sign. So Spyglass Rocks, thank. 1127 00:48:53,239 --> 00:48:55,360 Speaker 2: You Gary and company percenting this one our way. We 1128 00:48:55,560 --> 00:48:57,440 Speaker 2: appreciate it, and Matt, that's going to do it for 1129 00:48:57,440 --> 00:49:00,320 Speaker 2: this episode. For folks who want the show notes links 1130 00:49:00,360 --> 00:49:02,600 Speaker 2: to some of the things that we mentioned on this episode, 1131 00:49:02,680 --> 00:49:05,320 Speaker 2: just go to our website at howtomoney dot com. 1132 00:49:05,320 --> 00:49:07,680 Speaker 1: That's right, So that's gonna be it until next time. 1133 00:49:07,880 --> 00:49:09,759 Speaker 1: Best Friends Out, Best Friends Out,