WEBVTT - Busting Some Credit Score Myths (Bestie Ep) #766 0:00:00.160 --> 0:00:04.400 Well, Merry Christmas buddy, same to you. Yeah, so obviously 0:00:04.640 --> 0:00:08.119 this is Christmas Day. We hope that maybe there's like 0:00:08.119 --> 0:00:10.320 a Christmas Ham going on inside the house, like like 0:00:10.880 --> 0:00:13.560 amazing flavors wafting through the house. Maybe you're outside in 0:00:13.600 --> 0:00:16.840 the cold shoveling some snow. Basically, it's like that's where 0:00:16.840 --> 0:00:20.360 you live. It's like a Norman Rockwell painting, except for earbuds. 0:00:20.400 --> 0:00:23.400 You've got those in your ears. Those did not exist 0:00:23.440 --> 0:00:23.760 back then. 0:00:23.840 --> 0:00:25.160 And you're like, what are Matt and Joel Eve been 0:00:25.160 --> 0:00:27.600 doing working on Christmas Day? Are they like ebenez Or 0:00:27.600 --> 0:00:29.440 screws They don't take of course. 0:00:29.520 --> 0:00:31.800 Yeah, we've recorded this ahead of time, but we did 0:00:31.840 --> 0:00:33.559 want to make sure that you had an episode here 0:00:33.680 --> 0:00:36.920 in case you were stay outside working shoveling snow or 0:00:36.960 --> 0:00:39.360 something like that. Maybe you're on the road to visit family, 0:00:39.600 --> 0:00:42.640 loved ones, some friends. But we've got an episode here 0:00:42.680 --> 0:00:44.879 to line up for you where we are busting up 0:00:44.920 --> 0:00:47.760 some of the different credit myths that exist out there. 0:00:47.840 --> 0:00:50.080 This is one of our besty episodes. 0:00:50.159 --> 0:00:52.560 Yeah, there's a lot, there's a lot of bogus information 0:00:52.600 --> 0:00:54.720 when it comes to getting your credit score right. It's 0:00:54.720 --> 0:00:58.080 such an important part of your personal financial life, and 0:00:58.120 --> 0:01:00.160 so we figured, hey, we're not on a Christmas they 0:01:00.200 --> 0:01:02.120 we'll toss this one out there. So thank you, as 0:01:02.120 --> 0:01:04.560 always for listening to the show. We hope you enjoy this. Besty, 0:01:05.000 --> 0:01:07.960 Welcome to How the Money. I'm Joel and I am Matt, 0:01:08.000 --> 0:01:10.880 and today we are busting up some credit score myths. 0:01:29.959 --> 0:01:34.000 Credit scores, baby, everybody's got one. It's kind of like 0:01:34.040 --> 0:01:34.960 a belly buddy like. 0:01:35.280 --> 0:01:37.960 But oh, it makes me think of everyone poops. Did 0:01:38.000 --> 0:01:40.080 you know that book? Yes? I do. I think that 0:01:40.120 --> 0:01:43.200 book's on my mind because we are considering potty training 0:01:43.400 --> 0:01:46.920 Westy to cut out diapers from our monthly grocery. 0:01:46.959 --> 0:01:47.800 But wouldn't that be nice? 0:01:47.920 --> 0:01:48.080 Girl? 0:01:48.360 --> 0:01:50.200 Are y'all thinking about doing that soon? Yeah, we'd like to. 0:01:50.240 --> 0:01:52.640 It's but the problem is, you know, you have three girls. 0:01:52.680 --> 0:01:55.280 I have two girls, and everybody says it's so much 0:01:55.280 --> 0:01:57.440 easier to potty train girls. So I'm like, we really 0:01:57.480 --> 0:01:58.840 nervous about potty training a boy. 0:01:58.960 --> 0:02:01.520 Yeah, we've pulled down the the little Ikea Green, the 0:02:01.520 --> 0:02:03.800 Green and white little Ikia body got the same heat. 0:02:03.840 --> 0:02:07.480 Westy's totally interested in it. We just haven't pulled the 0:02:07.480 --> 0:02:09.840 plug yet. But I told Kay the last package of 0:02:09.880 --> 0:02:11.880 diapers that we just got. I was like, that is it, Like, 0:02:11.960 --> 0:02:15.240 let's commit, let's do it. We're gonna cold turkey do 0:02:15.320 --> 0:02:17.359 the thing where you know, there's this whole approach I 0:02:17.360 --> 0:02:18.800 don't want to go into, takes like a full weekend 0:02:18.800 --> 0:02:20.560 of dedicated. Yeah, Like there's this approach where you just 0:02:20.600 --> 0:02:22.799 go cold turkey and you just let them go all 0:02:23.000 --> 0:02:26.760 eyes on the little dude, and basically they don't like 0:02:26.840 --> 0:02:29.440 that feeling of having just soiled themselves, and so they 0:02:29.480 --> 0:02:32.239 quickly learn like like even at night, no pull ups, 0:02:32.320 --> 0:02:34.360 nothing like that. Just like everyone poops, everyone does have 0:02:34.360 --> 0:02:36.079 a credit score. And that's what we're talking about today. 0:02:36.120 --> 0:02:36.440 That's right. 0:02:36.480 --> 0:02:38.000 Yeah, But before we get to that real quick, mat, 0:02:38.000 --> 0:02:40.160 I just want to mention it is the beginning of 0:02:40.600 --> 0:02:44.120 spring right now. Basically like warmer weather and what happens 0:02:44.240 --> 0:02:45.720 when the weather gets warm. 0:02:45.880 --> 0:02:47.680 The flowers are blooming, that's true, but. 0:02:47.840 --> 0:02:50.920 Also the bugs come out, right and so especially in 0:02:50.960 --> 0:02:53.680 the South. Like I just had a tenant email me 0:02:53.720 --> 0:02:55.480 the other day and she's like, hey, by the way, 0:02:55.520 --> 0:02:57.040 I want to let you know, start to see some 0:02:57.040 --> 0:02:59.960 more bug activity at the house, which is my reminder 0:03:00.240 --> 0:03:03.639 that it's time to spray for bugs and. 0:03:03.919 --> 0:03:05.920 For some diy pest control exactly. 0:03:06.040 --> 0:03:08.000 We've talked about this a few times over the years, 0:03:08.000 --> 0:03:11.400 but it's worth revisiting because, Yeah, I wrote an article 0:03:11.520 --> 0:03:13.120 up on our site at how to money dot com 0:03:13.160 --> 0:03:15.440 just telling people how to do it themselves. And it's 0:03:15.480 --> 0:03:18.000 amazing how much money you can save because a lot 0:03:18.000 --> 0:03:20.160 of our listeners are probably paying something like one hundred 0:03:20.160 --> 0:03:22.799 dollars a quarter to a pest control company to come 0:03:22.840 --> 0:03:25.359 for a quarterly spraying. So let's say you're spending four 0:03:25.400 --> 0:03:28.240 hundred dollars a year to combat bugs to keep them 0:03:28.240 --> 0:03:31.840 out of your house, Well you can diyatt and literally 0:03:32.080 --> 0:03:35.200 you will shell out no more then and actually less 0:03:35.200 --> 0:03:38.000 than one hundred dollars and in the beginning. And that's 0:03:38.040 --> 0:03:41.480 supply the sprayer and the chemicals. And this is not 0:03:41.600 --> 0:03:44.080 the chemical that you can buy at home depot, by 0:03:44.080 --> 0:03:46.040 the way, this is the chemicals that the pros use. 0:03:46.280 --> 0:03:49.120 You can get both for like, you know, roughly in 0:03:49.120 --> 0:03:50.360 the range of seventy bucks. 0:03:50.560 --> 0:03:52.160 Yeah, and you're not just buying like a little spray 0:03:52.160 --> 0:03:54.960 bottle to like, you know, spray a bug by Like, 0:03:55.000 --> 0:03:58.480 this is professional grade stuff. And we crunched the numbers 0:03:58.480 --> 0:04:00.360 on it too, and literally once after do you get 0:04:00.360 --> 0:04:03.400 that you're only using something like two dollars worth of 0:04:03.480 --> 0:04:06.120 chemicals over the course of a year. Yeah, and so 0:04:06.240 --> 0:04:09.400 you're looking at four hundred dollars versus two dollars a 0:04:09.520 --> 0:04:12.000 year after that upfront cost, and it's easy to see 0:04:12.080 --> 0:04:13.480 that you are quickly going to be able to come 0:04:13.480 --> 0:04:13.880 out ahead. 0:04:13.880 --> 0:04:15.680 And I think most people might hear that and they're like, well, 0:04:15.720 --> 0:04:18.640 there's got to be a catch, right, something's in fear 0:04:18.760 --> 0:04:20.839 in this process, or you know what, I don't think 0:04:20.880 --> 0:04:22.479 I'm going to know be able to know how to 0:04:22.520 --> 0:04:26.240 do this. And fortunately there are instructional videos on some 0:04:26.320 --> 0:04:28.279 of these websites where they will show you how to 0:04:28.320 --> 0:04:31.480 do it properly and really honestly if any dummy can 0:04:31.520 --> 0:04:34.440 do it, so it's not something that takes special skills 0:04:34.520 --> 0:04:36.760 or anything like that. And just considering how much money 0:04:36.800 --> 0:04:39.280 can save you in one fell swoop, we're all kind 0:04:39.320 --> 0:04:42.160 of faced with higher rates of inflation, higher costs on 0:04:42.160 --> 0:04:44.920 almost everything. He's right now, if you're looking to save 0:04:45.000 --> 0:04:47.480 money in a big way in just like one fell swoop, 0:04:47.560 --> 0:04:50.240 this is definitely one thing to look at, absolutely. 0:04:49.640 --> 0:04:51.720 And something else I got to tell listeners about we 0:04:51.880 --> 0:04:55.359 have we talked about about my bug assault gun on 0:04:55.400 --> 0:04:56.960 the show before you know what, I'm not the one 0:04:57.000 --> 0:04:59.119 that blows air, No, is this one that shoots the salt. 0:04:59.400 --> 0:05:01.599 Oh that's right, Sorry, that's right, that's right. So I 0:05:01.600 --> 0:05:04.400 got this for Christmas and it is the coolest thing. 0:05:04.640 --> 0:05:07.640 It's this little so basically it's like a little pump shotgun, 0:05:08.200 --> 0:05:11.000 but it's made of plastic. It's a toy and it's 0:05:11.040 --> 0:05:14.159 got a little canister and you pour table salt in there, 0:05:14.160 --> 0:05:17.040 like like a tablespoon or two tablespoons worth of literally 0:05:17.360 --> 0:05:20.000 table salt. You close it up, you pump it, and 0:05:20.080 --> 0:05:22.120 when you shoot it, it literally shoots out like a 0:05:22.120 --> 0:05:23.520 little blast of. 0:05:23.440 --> 0:05:25.320 A little bit of salt, kind of like a shotgun pellet. 0:05:25.600 --> 0:05:29.680 It's literally a shotgun for bugs that shoots salt. And 0:05:29.760 --> 0:05:32.320 so this is the most fun I have ever had 0:05:32.680 --> 0:05:35.240 taken down little house flies in my house. I will 0:05:35.279 --> 0:05:38.599 link to it in our show notes because literally it 0:05:38.680 --> 0:05:40.800 is so fun. It's way more fun than the old 0:05:40.800 --> 0:05:45.239 bug zapper down to South Georgia, which very few people 0:05:45.279 --> 0:05:48.440 are aware of what I'm talking about here, But aside 0:05:48.440 --> 0:05:50.720 from the doipis control. If you want to get yourself 0:05:50.800 --> 0:05:55.120 a bug assault gun. I highly recommend it. I mean 0:05:55.160 --> 0:05:56.880 it does sound like fun. I might have to get one, dude, 0:05:56.960 --> 0:05:58.760 just for the sheer joy. Next time you all are 0:05:58.800 --> 0:06:00.880 over and there's a little house fly or nat or 0:06:00.920 --> 0:06:02.160 something like that, let me take it. I'll let you 0:06:02.200 --> 0:06:03.680 have a shot with it, because it is a ton 0:06:03.680 --> 0:06:05.479 of fun. Good. I appreciate that. And it's just salt. 0:06:05.560 --> 0:06:07.680 And so you miss, or even if you don't miss, 0:06:07.720 --> 0:06:08.920 you know, you pick up the five but then like 0:06:08.960 --> 0:06:10.600 all the salt, it just kind of disperses a little bit. 0:06:10.600 --> 0:06:12.279 But it's salt. It's like it's not that big of 0:06:12.279 --> 0:06:13.400 a deal. If there's a little bit of salt on 0:06:13.440 --> 0:06:15.640 the ground. Next time you're sweet or you a vacuum, 0:06:15.839 --> 0:06:16.320 you get it. 0:06:16.320 --> 0:06:18.120 Up off the floor and you barely notice it until then. 0:06:18.120 --> 0:06:20.680 I bet exactly nice. Okay, Well, word to the wise, 0:06:20.800 --> 0:06:22.960 do your own pest control, save you some money, and 0:06:22.960 --> 0:06:26.320 bug a salt gun. All right, and let's move on. 0:06:26.360 --> 0:06:27.840 Let's mention the beer that we're having on the show. 0:06:27.880 --> 0:06:31.480 This one is called Hello World, and it's by Spyglass Brewing. 0:06:31.560 --> 0:06:33.679 And this one will send to us by listener Gary. 0:06:33.839 --> 0:06:36.720 He sent us Monday's beer. Looking forward to having this 0:06:36.760 --> 0:06:39.320 one today and we'll give our thoughts at the end 0:06:39.320 --> 0:06:41.400 of the episode, but for now, Matt looking get onto 0:06:41.440 --> 0:06:44.560 the subject at hand. We are, of course tackling some 0:06:44.600 --> 0:06:47.479 credit score miss We're busting them up. And you know, 0:06:47.720 --> 0:06:49.200 it made me think, like there are all sorts of 0:06:49.279 --> 0:06:53.080 myths that have grown into legends over the years, over decades. 0:06:53.320 --> 0:06:55.880 H the lock disc monster is one of those, right, 0:06:56.120 --> 0:06:59.160 Paul bunyan UFOs, Like did they exist? Don't they? 0:06:59.560 --> 0:07:02.480 All sorts of these like they're just drones. 0:07:02.720 --> 0:07:07.000 You know, all of these things have developed outsized tales 0:07:07.040 --> 0:07:10.040 that make for interesting TV shows, and they're fun to 0:07:10.080 --> 0:07:12.800 talk about maybe on a Friday night over a nice 0:07:12.840 --> 0:07:15.240 craft beer with some of your friends, just kind of well, 0:07:15.320 --> 0:07:17.200 I don't know, is it real or isn't it? And 0:07:17.320 --> 0:07:19.240 it's the same as maybe like the legend with the 0:07:19.240 --> 0:07:22.400 moon landing being fake, although I don't know, that's just 0:07:22.480 --> 0:07:25.440 kind of less fun to talk about and not so 0:07:25.480 --> 0:07:28.480 small contingent of Americans, they continue to believe in the 0:07:28.520 --> 0:07:31.960 existence of like a sasquatch like creature roaming the woods. 0:07:32.280 --> 0:07:35.480 But yeah, some have latched onto these tales. They've taken 0:07:35.520 --> 0:07:38.480 them as one hundred percent factual. And you know, while 0:07:38.520 --> 0:07:42.160 I don't have definitive proof that Bigfoot doesn't exist, it 0:07:42.160 --> 0:07:45.280 certainly doesn't match up with what my eyes have seen firsthand. 0:07:45.520 --> 0:07:47.880 And part of the reason these myths persist is because 0:07:47.920 --> 0:07:51.160 there isn't documented evidence to the contrary, right, I mean, 0:07:51.440 --> 0:07:53.480 but credit score myths, on the other hand, well, they 0:07:53.480 --> 0:07:58.080 continue to exist despite hard evidence of their inaccuracies. And 0:07:58.120 --> 0:08:00.200 so that's why we're talking about this today. I mean, 0:08:00.240 --> 0:08:03.400 these these myths impact your finances in a real and 0:08:03.440 --> 0:08:05.560 ongoing way, So we've got to discuss them in a 0:08:05.600 --> 0:08:08.520 way that maybe your bigfoot obsession doesn't impact your day 0:08:08.520 --> 0:08:10.160 to day life, it's right, man, So and if it does, 0:08:10.240 --> 0:08:11.120 you've got a real problem. 0:08:11.520 --> 0:08:14.080 It's time to bust these myths up. And part of 0:08:14.080 --> 0:08:16.440 the reason too, that we're tackling this topic now is 0:08:16.520 --> 0:08:20.160 because of the fact that March it's National Credit Education Month. 0:08:20.280 --> 0:08:21.120 I bet you didn't know that. 0:08:21.280 --> 0:08:24.760 Oh yeah, there's a thing everything. There really is a 0:08:24.760 --> 0:08:26.120 love for everything these days. 0:08:26.360 --> 0:08:29.320 But there are also a lot of misconceptions and misunderstandings 0:08:29.320 --> 0:08:32.559 out there about credit scores and these myths. They lead 0:08:32.600 --> 0:08:36.360 folks to take just different paths like incorrect paths toward 0:08:36.440 --> 0:08:40.040 their credit It often impacts their score negatively, causing actual 0:08:40.120 --> 0:08:42.320 real side effects. And we want you to have a 0:08:42.360 --> 0:08:45.360 great credit score because it has such a wide ranging impact. 0:08:45.600 --> 0:08:47.760 Living without a credit score would be tough in a 0:08:47.800 --> 0:08:51.040 modern society, And like, is that a good thing that 0:08:51.240 --> 0:08:54.000 we have to function with a credit score? Not necessarily. 0:08:54.520 --> 0:08:57.160 We're not huge fans of the credit bureaus and you know, 0:08:57.240 --> 0:09:00.640 specifically their inability to keep our personal day a secure. 0:09:00.920 --> 0:09:02.440 But it's kind of like we've been put down in 0:09:02.480 --> 0:09:04.880 a game that we just can't stop playing. I mean, 0:09:04.920 --> 0:09:06.960 you could stop playing, but you would have to need 0:09:07.000 --> 0:09:09.760 a pile of cash in order to truly avoid the 0:09:09.760 --> 0:09:13.280 credit score system altogether, in order to completely skirt it. 0:09:13.480 --> 0:09:15.599 Yeah, it's kind of like even if you want to 0:09:15.600 --> 0:09:17.679 be an entrepreneur at age twelve, like you still got 0:09:17.679 --> 0:09:19.920 to finish high school. I mean it's it's it's part 0:09:19.960 --> 0:09:21.360 of the process, and. 0:09:21.400 --> 0:09:22.000 You don't have to. 0:09:22.360 --> 0:09:23.680 Your parents are going to get in big trouble if 0:09:23.679 --> 0:09:25.199 you don't, right, I mean it's. 0:09:25.840 --> 0:09:27.439 Is there some law like do you actually have to 0:09:27.440 --> 0:09:28.760 finish high school? No? 0:09:29.080 --> 0:09:30.640 I think you're going to get in big trouble if 0:09:30.640 --> 0:09:33.040 you drop out before before the age of sixteen. 0:09:33.400 --> 0:09:33.960 I didn't know that. 0:09:34.040 --> 0:09:36.320 Yeah, I think I don't know what the actual rules are, 0:09:36.320 --> 0:09:37.560 but I'm pretty sure you got to go to school, 0:09:37.559 --> 0:09:40.720 and to school, I mean you should, like I agree 0:09:40.720 --> 0:09:43.880 that that's probably it's probably a good, healthy approach to 0:09:44.400 --> 0:09:46.480 becoming a fully formed adult. I'm pretty sure the state 0:09:46.480 --> 0:09:49.280 can come after the parents if the kids come out. Yeah, 0:09:49.280 --> 0:09:50.480 if they take them out of school and there's no 0:09:50.480 --> 0:09:52.040 sign that they're doing any sort of homeschooling, what. 0:09:52.040 --> 0:09:54.839 Kind of country are we living in. I don't know. 0:09:55.360 --> 0:09:58.160 We might disagree on whether or not that's a reasonable thing, 0:09:58.440 --> 0:09:59.360 but it's reasonable. 0:09:59.400 --> 0:10:00.679 But I feel like people have a choice. 0:10:00.679 --> 0:10:04.040 Whatever, let's go, let's don't take your kids out of school. 0:10:04.040 --> 0:10:06.160 They need it. I'm not aid school, like my kids 0:10:06.160 --> 0:10:07.880 are going to go to college most likely to worry. 0:10:08.160 --> 0:10:09.040 I want other people to have. 0:10:09.000 --> 0:10:11.559 The choice if they choose not to, they choose to 0:10:11.640 --> 0:10:13.400 rip their kids out of school and just you know, 0:10:13.480 --> 0:10:15.240 send them down the Jeff Bezos path. 0:10:15.880 --> 0:10:19.319 Yea, the genius kid and they're able to take whatever 0:10:19.360 --> 0:10:23.280 remedial course or class where they're basically able to get 0:10:23.280 --> 0:10:26.040 the equivalent of a high school diploma. Of course, they 0:10:26.040 --> 0:10:26.920 should be able to do that. 0:10:26.960 --> 0:10:29.560 Right, Okay, all right, well, let's let's move on. Let's 0:10:29.559 --> 0:10:32.120 talk about what a good score is, because that kind 0:10:32.120 --> 0:10:34.400 of sets up this question of like, well, what are 0:10:34.440 --> 0:10:37.000 we aiming to achieve here with our credit score? And 0:10:37.800 --> 0:10:39.720 you know, Matt, you just mentioned one way to avoid 0:10:39.720 --> 0:10:41.520 the system would be to have just a ton of 0:10:41.520 --> 0:10:44.679 money ever loaded, right, Like you don't need a lender 0:10:44.720 --> 0:10:47.080 to approve you to buy a home if you've got 0:10:47.320 --> 0:10:48.880 five million bucks in the bank, and you can go 0:10:48.960 --> 0:10:51.800 buy any home that you desire. But since most folks 0:10:51.880 --> 0:10:54.120 don't have that, most folks don't have that much money 0:10:54.640 --> 0:10:57.680 on hand, especially these days, like to buy a home, 0:10:57.920 --> 0:11:01.040 it gets really expensive. In a car, same thing, right, 0:11:01.280 --> 0:11:04.280 cars are not cheap, so paying attention to your credit 0:11:04.280 --> 0:11:06.280 score is a must. But then the question is like 0:11:06.320 --> 0:11:08.440 what is a good score? And I guess you know, 0:11:08.480 --> 0:11:12.120 we have to tackle that because and it's actually kind 0:11:12.160 --> 0:11:15.920 of a difficult question to answer because there are different scales, 0:11:15.960 --> 0:11:18.080 like kind of like how we're talking about schools here, 0:11:18.360 --> 0:11:21.680 how some schools might have an a scale. An eighty 0:11:21.679 --> 0:11:23.760 eight could be considered an a I guess in some schools, 0:11:23.800 --> 0:11:25.800 or a ninety I remember in high school when migrating 0:11:25.800 --> 0:11:28.440 scale changed and it used to be a ninety two 0:11:28.480 --> 0:11:30.280 and up was an A, and then they changed it 0:11:30.320 --> 0:11:32.920 to a ninety enough was an A. Seriously, yeah, in 0:11:32.960 --> 0:11:34.720 the middle of high school, it's so weird. A couple 0:11:34.760 --> 0:11:36.839 of my my as I've always been ninety and above 0:11:36.880 --> 0:11:39.920 bs are obviously eighty c's or no, it's it depends 0:11:39.920 --> 0:11:42.320 on the school system. And so I distinctly remember, like 0:11:42.360 --> 0:11:44.480 two of my bees became a's all of a sudden, 0:11:44.520 --> 0:11:45.880 my GPA got a little. 0:11:45.640 --> 0:11:47.360 Bit higher, and so it's funny. 0:11:47.360 --> 0:11:50.640 Similarly, with credit scores, some of these bureaus have just 0:11:50.760 --> 0:11:54.280 a different threshold for what's considered good or great and 0:11:54.360 --> 0:11:57.880 so yeah, so the school that your lender sees when 0:11:57.880 --> 0:12:00.520 you're refinancing an auto loan, let's say, it can differ 0:12:00.600 --> 0:12:02.560 from the one that you get if you were to 0:12:02.559 --> 0:12:06.320 get that score directly from the bureau. And each bureau 0:12:06.360 --> 0:12:09.280 also has quite a few credit scores for you behind 0:12:09.320 --> 0:12:12.200 the scenes, so it's not even different models. Yeah, like 0:12:12.240 --> 0:12:14.480 there's this one score that you have for each bureau. 0:12:14.559 --> 0:12:17.080 It's like they might have a dozen scores for you 0:12:17.120 --> 0:12:19.640 based on different factors, and so the score your lender 0:12:19.679 --> 0:12:22.520 sees when you're refinancing an auto loan, let's say, can 0:12:22.559 --> 0:12:24.440 differ from the one that you get if you were 0:12:24.480 --> 0:12:27.360 to get that score directly from the bureau. And you know, 0:12:27.400 --> 0:12:29.480 most of these scores are on a scale that goes 0:12:29.559 --> 0:12:32.439 up to like eight fifty or nine hundred, and some 0:12:32.520 --> 0:12:36.319 folks are striving for a perfect credit score under each 0:12:36.360 --> 0:12:39.040 one of these models, and that's just a recipe for 0:12:39.320 --> 0:12:44.600 in futility, it's just completely unnecessary to strive for perfection. Basically, 0:12:44.640 --> 0:12:46.520 if your score is in the seven to forty plus 0:12:46.640 --> 0:12:49.480 range on any of these scales, that's good enough and 0:12:49.520 --> 0:12:51.760 it will basically qualify you for the best terms for 0:12:51.840 --> 0:12:54.720 different loans you might need access to. Just remember that 0:12:54.760 --> 0:12:59.080 seven forty or above is basically that a range where 0:12:59.120 --> 0:13:01.199 you're going to want to be in order to, yeah, 0:13:01.320 --> 0:13:04.320 get the best terms on all sorts of different lending 0:13:04.480 --> 0:13:05.480 products until they. 0:13:05.440 --> 0:13:07.480 Changed the rules on you. All right, let's go ahead 0:13:07.480 --> 0:13:09.960 and get started busting up some of these credit score myths. 0:13:10.080 --> 0:13:12.079 By the way, you remember the guys from MythBusters back 0:13:12.080 --> 0:13:13.959 in the day, Like that's sort of the inspiration for 0:13:14.080 --> 0:13:15.480 you know, for the title of this episode for the 0:13:15.520 --> 0:13:16.120 listeners out there. 0:13:16.160 --> 0:13:18.760 That was one of those first hit reality styles and 0:13:18.800 --> 0:13:19.440 TV shows. 0:13:19.520 --> 0:13:22.040 Yeah, one of my favorite ones I remember was they 0:13:22.040 --> 0:13:26.280 were like blasting cannonballs into a wall. And interestingly, this 0:13:26.360 --> 0:13:28.040 was like one of the episodes where they screwed up 0:13:28.360 --> 0:13:31.400 and like they're out out in the desert, like at 0:13:31.400 --> 0:13:34.000 a firing range or like like a bomb range basically, 0:13:34.320 --> 0:13:37.120 and like the cannon like tipped up, and so the 0:13:37.160 --> 0:13:39.959 cannon ball missed the wall and it went ricocheting off 0:13:40.000 --> 0:13:41.760 of like one of the hills and into a neighborhood. 0:13:41.840 --> 0:13:45.959 Oh my gosh, Yeah, super crazy. Nobody got hurt, but 0:13:46.080 --> 0:13:47.640 like I do remember like crashing into some of some 0:13:47.679 --> 0:13:49.440 dud's howls. I think it like went through a van, 0:13:49.840 --> 0:13:52.960 pretty serious, like and that's the day MythBusters got canceled, No, 0:13:53.080 --> 0:13:55.520 they did, Like that was right in the middle of 0:13:56.040 --> 0:13:59.040 a run of seasons where they were crushing It probably 0:13:59.080 --> 0:14:01.400 made for good TV rating, I think it did. Like 0:14:01.440 --> 0:14:03.559 that's the one I remember was the one where there 0:14:03.600 --> 0:14:06.679 was an errant cannonball. I could not imagine seeing that 0:14:06.720 --> 0:14:08.880 in real life. Anyway, Let's do some myth busting of 0:14:08.880 --> 0:14:11.160 our own, and the first one we wanted to share 0:14:11.520 --> 0:14:14.280 is that your credit score doesn't really matter all that much. 0:14:14.640 --> 0:14:16.080 And there's a good reason that we're starting with this 0:14:16.120 --> 0:14:18.559 one because we want to highlight the fact that your 0:14:18.600 --> 0:14:22.080 credit score is incredibly important. It affects so much more 0:14:22.080 --> 0:14:24.440 of your life than you realize. We just talked about 0:14:24.440 --> 0:14:27.000 the need for a credit score in modern society, but 0:14:27.240 --> 0:14:29.800 everything is going to cost you more if your credit 0:14:29.800 --> 0:14:33.200 score stinks. Lenders they're going to charge you what's called 0:14:33.200 --> 0:14:35.480 a risk premium if your score isn't great, but they 0:14:35.520 --> 0:14:37.520 also might decide not to lend to you at all 0:14:37.720 --> 0:14:39.840 if your score is in the dumps, and you might 0:14:39.880 --> 0:14:41.320 see to yourself, all right, that's fine, I'm not going 0:14:41.400 --> 0:14:44.080 to ever own a home. That's fine. Your credit score 0:14:44.080 --> 0:14:47.239 comes in play when you're renting a house too. Landlords 0:14:47.320 --> 0:14:49.480 they're gonna almost always run a credit check, and that 0:14:49.880 --> 0:14:52.200 is going to impact your ability to get the place 0:14:52.240 --> 0:14:55.560 that you want. You know, if I'm choosing between two tenants, 0:14:55.760 --> 0:14:58.000 they both seem great, they both make the same amount 0:14:58.000 --> 0:15:00.600 of money. I've got to base my decision on something, 0:15:00.640 --> 0:15:03.800 and the credit score can often the scales. A bad 0:15:03.920 --> 0:15:06.040 or non existent credit score could also impact your ability 0:15:06.080 --> 0:15:08.080 to get home internet or cable, or it might require 0:15:08.120 --> 0:15:10.320 you to put down a deposit. You might even pay 0:15:10.360 --> 0:15:13.120 more for auto insurance if your score is low. Having 0:15:13.200 --> 0:15:15.960 a good, solid credit score is not a trivial thing. 0:15:16.360 --> 0:15:19.280 Yeah, your credit score has an impact in so many 0:15:19.360 --> 0:15:22.400 areas of your life. And not only will a crappy 0:15:22.400 --> 0:15:25.600 credit score impact your ability to spend money, to take 0:15:25.640 --> 0:15:28.160 out a loan, to take on debt for something that 0:15:28.160 --> 0:15:30.960 you're looking to buy, which, let's be honest, maybe this 0:15:31.040 --> 0:15:32.760 is actually a blessing in disguise. 0:15:33.280 --> 0:15:36.120 If you potentially keep you from spending more money, yeah, 0:15:36.160 --> 0:15:38.360 then you can afford to well. It can also hamper 0:15:38.400 --> 0:15:41.440 your ability to earn money. And yeah, your. 0:15:41.280 --> 0:15:44.000 Credit history can have an impact when you apply for 0:15:44.120 --> 0:15:47.320 some jobs, like in particular ones in finance, or let's 0:15:47.320 --> 0:15:50.880 say you're moving up to management level, then there's a 0:15:50.920 --> 0:15:54.120 good chance your credit score comes into play here. Credit 0:15:54.160 --> 0:15:57.280 checks happen more often for these types of jobs where 0:15:57.320 --> 0:15:59.960 the stakes are higher, like when a security clearance is involved, 0:16:00.120 --> 0:16:02.160 or if you have access to a lot of money 0:16:02.280 --> 0:16:04.440 or sensitive information of your coworkers. 0:16:04.720 --> 0:16:06.040 I don't know this for a fact, but I got 0:16:06.040 --> 0:16:07.920 to feel in that, like bank tellers, if you've got 0:16:07.920 --> 0:16:10.200 a really, really really crappy credit score, like maybe you 0:16:10.200 --> 0:16:11.800 don't get that bank teller job where you're you know, 0:16:11.840 --> 0:16:13.120 dolling out the hundreds, right. 0:16:13.040 --> 0:16:15.320 Yeah, they might be like, sorry, go apply down the 0:16:15.320 --> 0:16:18.160 street at Target, and so yeah, you know, one study 0:16:18.160 --> 0:16:21.480 shows that twenty five percent of HR managers are actually 0:16:21.480 --> 0:16:24.320 going to check your credit history during the hiring process, 0:16:24.440 --> 0:16:26.080 even though they won't be able to see your actual 0:16:26.200 --> 0:16:29.320 score in most cases. But here's the deal. Your score 0:16:29.480 --> 0:16:31.840 is influenced by what's on your credit report. So if 0:16:31.880 --> 0:16:33.760 they can take a look at your credit report, they 0:16:33.840 --> 0:16:36.080 kind of, in theory, can deduce what your score is. 0:16:36.440 --> 0:16:39.440 And that crummy credit report with lots of errors and 0:16:39.520 --> 0:16:42.440 issues on it is going to potentially affect your ability 0:16:42.480 --> 0:16:43.760 to get the job that you want. 0:16:44.080 --> 0:16:46.440 That's a right, all right, We've got more credit myths 0:16:46.480 --> 0:16:49.000 that need to be shalat, and we'll get to all 0:16:49.000 --> 0:17:01.360 of those right after this break are back and we 0:17:01.400 --> 0:17:04.320 are busting up some of those different credit score myths. Yea, 0:17:04.760 --> 0:17:06.480 that you may have heard of, some you may not 0:17:06.520 --> 0:17:08.640 have heard of before. Let's get to our next one, 0:17:08.680 --> 0:17:12.320 which is checking your credit score hurts your credit score. 0:17:12.600 --> 0:17:14.160 I feel like this is one that's been around for 0:17:14.200 --> 0:17:17.199 a long time, and you know, like years ago, the 0:17:17.240 --> 0:17:20.359 credit scords were kind of like shrouded in secrecy. Like 0:17:20.400 --> 0:17:23.359 the bureaus and the banks and the lenders they knew 0:17:23.440 --> 0:17:25.480 what our credit score was, but we didn't. Sort of 0:17:25.520 --> 0:17:28.240