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Speaker 1: Welcome to Out of Money.

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Speaker 2: I'm Joel and I am Matt, and today we're discussing

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Speaker 2: the high cost of crappy credit.

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Speaker 1: That's right, buddy. We are going to talk about all

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Speaker 1: of the different ways that crappy credit is going to

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Speaker 1: cost you if you've got that crappy credit. But obviously

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Speaker 1: we're gonna get to that. But more important than ever

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Speaker 1: is the fact that we're back. Baby. It's back to

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Speaker 1: regularly scheduled programming here. You're back from Florida. You are,

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Speaker 1: to the chagrin of everyone out there, you are You're

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Speaker 1: not a Florida man any longer.

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Speaker 2: I came close to it, almost morphed into one, and

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Speaker 2: you I was down there for like a three weeks

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Speaker 2: of the summer. My family's out for five. I was

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Speaker 2: kind of back and forth. Crazy. I tell you this,

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Speaker 2: Florida has some cool stuff, but it is ragingly hot and.

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Speaker 1: Like no wonder. Florida man is a thing, right that

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Speaker 1: it's a mean that it exists because you kind of

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Speaker 1: lose your mind while you're down there, because it's your brain,

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Speaker 1: does it really? Yeah? You feel like it kind of

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Speaker 1: addled your brains a little bit. I'm trying to get

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Speaker 1: adjusted back to normal life. Like they call Atlanta Hotlanta,

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Speaker 1: but no, No, Florida is a different kind of heat.

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Speaker 1: And yeah, it's that wet heat. Glad to be back. Well, okay,

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Speaker 1: so while while you were down in Florida, so one

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Speaker 1: of the Kate and I we used some of some

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Speaker 1: of our time off to go up to Asheville. Right.

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Speaker 1: We Draowler Spot, Oh my gosh, and honestly, even still

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Speaker 1: it was pretty It's just been so freaking hot lately. Yeah,

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Speaker 1: no matter where it is that you live. But enough

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Speaker 1: about the weather. We're gonna go up there. We had

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Speaker 1: some nice dinners plan of course we're going to hit

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Speaker 1: up some breweries, but we were also planning to do

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Speaker 1: some hiking. And oh, by the way, we scored a

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Speaker 1: last minute airbnb because like it didn't matter for us

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Speaker 1: to go up there. We're just thinking, oh, it'd be

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Speaker 1: nice if we do this. It wasn't like a do

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Speaker 1: or die situation, and we were able to. We got

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Speaker 1: a screaming deal on an Airbnb. We hadn't done something

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Speaker 1: like that absolutely last minute. Even yes, it's like either

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Speaker 1: onun a book really far in advance or like the

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Speaker 1: absolute last minute. We jumped on the very last minute

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Speaker 1: thing got an awesome deal. We're right there in the

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Speaker 1: middle of downtown, which we've we've never done but back

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Speaker 1: to ashle like, so we're planning to get to go hiking,

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Speaker 1: and we were we woke up and getting our stuff

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Speaker 1: ready to go, and I realized I didn't bring my

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Speaker 1: stink in hiking shoes, my trail runners. I was like,

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Speaker 1: dang it, I can't believe I forgot to pack those things.

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Speaker 1: So hopped in the in the van and we went

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Speaker 1: to an RII because I felt compelled. I was like,

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Speaker 1: I gotta get another I gotta get a pair of

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Speaker 1: shoes in order to do some of this intense hiking

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Speaker 1: that we're planning to do. So I bought another pair

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Speaker 1: of hiking shoes. They're like a pair of running like

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Speaker 1: trail runners basically. So I want to ask you what

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Speaker 1: would Joel have done in that situation, Because on one hand,

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Speaker 1: I thought, of course I need to do this, But

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Speaker 1: on the other hand, I was like, who am I this.

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Speaker 1: I don't just like go into a store without doing

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Speaker 1: any research and just buy something. Well, you know, I

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Speaker 1: bet you I'm guaranteed bought the same shoes you have,

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Speaker 1: just different color or something like that, Right, So I

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Speaker 1: actually got a different kind of a different pair, like, hokah,

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Speaker 1: you've seen the whatever. I don't know how you even say,

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Speaker 1: like got the big old because you're to the Altrias

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Speaker 1: or whatever. Ultras, Yeah, on multiple pairs of those. But

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Speaker 1: I decided to kind of go a different direction. But

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Speaker 1: I think I hear what you're getting at, which is

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Speaker 1: the fact that if you knew you like them, and

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Speaker 1: you're gonna yes, yeah, they're expensive shoes. But and I

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Speaker 1: will say this, I wasn't being held hostage like at

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Speaker 1: the trailhead where they're like, here's five hundred, they don't

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Speaker 1: have any shoes, here's you gotta buy this pair for

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Speaker 1: two hundred fifty bucks.

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Speaker 2: And it's it just stinks to drive all that way

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Speaker 2: and then to not get to hike or whatever. But

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Speaker 2: did you have another pair of shoes you could have

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Speaker 2: hiked in?

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Speaker 1: I had, I have my my white vans, could use

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Speaker 1: use I could have, but they're white and they're not made.

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Speaker 1: I mean, they're like street shoes. They're made like they're

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Speaker 1: my nicer kind of like I wore them the night

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Speaker 1: before when Kate and I went out to like a

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Speaker 1: nice dinner, and so I thought, Okay, if I just

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Speaker 1: buy another pair of trail runners, I know at some

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Speaker 1: point I'm gonna like, after a couple hundred more miles

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Speaker 1: my old trail runners, like, I'm gonna need to buy

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Speaker 1: another pair. So the way I thought about it and

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Speaker 1: justified it is I'm just pulling consumption from like Ford,

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Speaker 1: you know, into the present from the future here and

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Speaker 1: like expaining your shoe wardrobe. Yes, yeah, if you think

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Speaker 1: about it linearly, I will get to these shoes at

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Speaker 1: some point, I would have gotten to this in this pair.

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Speaker 1: And did you like them? Yeah, they're actually I mean,

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Speaker 1: so I got the They're like it's so huge, They're

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Speaker 1: huge shit, And I was like, I want to I

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Speaker 1: see people wearing these, they're real popular. I want to

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Speaker 1: try them out. And actually I really dug them. Dude.

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Speaker 1: It took a second to get used to all the cush,

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Speaker 1: but uh, I like the cush. I'm all about it.

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Speaker 2: So I've got a friend who I was just talking

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Speaker 2: to the other day and he's into the zero cush

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Speaker 2: like that. They literally have sandals called zero sandles, huh,

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Speaker 2: and he likes to trail run of those. So it's

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Speaker 2: a young man's game, right, everybody's got their thing. So,

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Speaker 2: I mean I was able to get him on salety,

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Speaker 2: that's the other thing. But I'm more willing to spend

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Speaker 2: money on like the proper gear because like younger Matt

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Speaker 2: would have said, I'm just gonna I'm gonna stick it out.

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Speaker 2: I'm gonna wear the shoes that I've got and I'll

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Speaker 2: clean them afterwards. But I thought, you know what, let

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Speaker 2: me just go ahead and get these things. I'll wear

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Speaker 2: them to I'll wear literally wear them into the ground

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Speaker 2: like at some point. But I was curious if you

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Speaker 2: would have done the same thing or not, or what

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Speaker 2: path you would have taken. No, I might have done

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Speaker 2: the same thing. Yeah, yeah, I mean, especially if it's

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Speaker 2: if it's something like you're there, it's a free activity

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Speaker 2: to go hiking. Yeah, that's the best thing to do

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Speaker 2: in Ashville, one of the best things besides drink good beer.

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Speaker 1: And so you don't want to miss the same time.

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Speaker 2: Yeah, yeah, but I'm glad we're back together Glaver recording

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Speaker 2: today and glad we get to talk about credit a

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Speaker 2: regular Wednesday episode here. Yeah, so let's mention the beer

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Speaker 2: we're having on this episode, though it's called Rattler. It's

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Speaker 2: by Halfway Crooks. It's a grapefruit rattler in particular, one

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Speaker 2: of our favorite beer styles, especially during these hot summer days.

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Speaker 2: This is like the perfect thirst quenching beer, and it

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Speaker 2: really does because it's half grapefruit juice, it really does

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Speaker 2: have thirst quenching qualities. We'll talk about this one at

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Speaker 2: the end of the episode.

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Speaker 1: Is it fifty to fifty? Who knows when? We will

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Speaker 1: explain share our thoughts at the of the episode.

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Speaker 2: But first let's talk about the high cost of crappy

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Speaker 2: credit and that it made me think about, like when

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Speaker 2: electricity goes out at your house, it sucks, right, all

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Speaker 2: of us we've become so accustomed to just being able

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Speaker 2: to flip a switch, and but how quickly we become

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Speaker 2: annoyed when that modern convenience that we're all accustomed to

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Speaker 2: goes away and like, and so it's true that it

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Speaker 2: can be kind of frustrating if you're if your electricity

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Speaker 2: goes out, Let's say it's out for twenty or thirty minutes,

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Speaker 2: so it's not it's like no harm, no foul. It's

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Speaker 2: kind of fun even for a second. We get to

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Speaker 2: get get out your battery powered flashlights or your candles

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Speaker 2: or something like that. But like and make it romantic exactly. Yeah,

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Speaker 2: you can kind of make it make it fun. But

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Speaker 2: an extended outage would be different, right, It would quickly

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Speaker 2: turn from something like a minor inconvenience to something more major.

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Speaker 2: Let's say your your fridge or your freezer now doesn't

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Speaker 2: have electricity for an extended period of time.

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Speaker 1: Your food could spoil.

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Speaker 2: Let's say you've got one of your fancy briskets in

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Speaker 2: the freezer, Like that could be I know you don't

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Speaker 2: want that is spoiled. That's an expensive piece of meat.

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Speaker 2: And so yeah, if treacherous weather conditions led to this outage,

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Speaker 2: like people lose their ability to heat and cool their homes, yeah,

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Speaker 2: which can have massive consequences too, right, and for the

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Speaker 2: home itself and to the safety of individuals and family.

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Speaker 2: So I think bad credit can be so. Right, it

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Speaker 2: might seem like this, this minor blip. It might seem

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Speaker 2: like a oh man, it'll be back on in twenty

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Speaker 2: or thirty minutes, sort of electricity funk. But bad credit

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Speaker 2: is not a small chink in your personal finance armor.

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Speaker 2: It's much worse than that. It's akin to your electricity

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Speaker 2: being out for like an entire weekend or something like that.

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Speaker 1: Sure, yeah, yeah, And it's not just that bad credit

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Speaker 1: means that you've got a score that's not quite as

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Speaker 1: high as that you like, that you wish it would be.

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Speaker 1: It's not the score per se, like the number itself,

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Speaker 1: that you should be preoccupied with. It's the fact that

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Speaker 1: that simple score has an impact on virtually every aspect

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Speaker 1: of your personal finances, right Like, just like with the

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Speaker 1: power outage, it's not the quick inconvenience of not being

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Speaker 1: able to flip on a lamp. It's the wide ranging,

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Speaker 1: downstream effect of that power outage that is going to

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Speaker 1: have the most significant impact. And so a bad credit score,

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Speaker 1: it doesn't just result in minor consequences, as some out

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Speaker 1: there might lead you to believe. It's not causing a

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Speaker 1: few bucks to leak out here and there. Bad credit

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Speaker 1: is very expensive in a bunch of different ways that

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Speaker 1: were going to highlight today.

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Speaker 2: Yeah, tons, tons of ways that bad credit messes with you.

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Speaker 2: And so we've got a bunch of different things that

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Speaker 2: we've got to cover and specifically really hopeful hopefully to

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Speaker 2: drive home just how impactful in a negative way that

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Speaker 2: crappy credit can become. Let's give a quick example here,

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Speaker 2: Matt from the Outset friend of the show Andrew Giancola.

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Speaker 2: He highlighted recently how bad credit can influence how much

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Speaker 2: you lose when it comes to buying a home. This

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Speaker 2: example came with kind of some older statistics, so we

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Speaker 2: know these interest rates don't necessarily apply right now to

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Speaker 2: everyone and so like. But let's say you took out

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Speaker 2: a thirty year mortgage of three hundred grand and you

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Speaker 2: had a credit score of seven sixty or higher. Maybe

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Speaker 2: you got qualified for rate of four and a half percent,

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Speaker 2: but a credit score of six twenty, let's say, might

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Speaker 2: get your rate of seven percent. So there's a big

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Speaker 2: gap there, two and a half percent gap, And over

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Speaker 2: the thirty year period, having that higher interest loan would

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Speaker 2: cost you around one hundred and seventy one thousand dollars

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Speaker 2: more than what you would have gotten ahead you had

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Speaker 2: the four and a half percent loan, right, And so

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Speaker 2: that's a big chunk of change, right, But it's more

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Speaker 2: than that. It's more than that. It's it's the monthly

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Speaker 2: payments are going to be higher. Four hundred and seventy

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Speaker 2: five dollars to be exact when you compare those two loans.

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Speaker 2: But even above and beyond that, Matt, it's the opportunity

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Speaker 2: costs that those extra dollars could have done for you,

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Speaker 2: the legwork that could have done, all because you had

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Speaker 2: a bad credit score. So let's say four hundred seventy

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Speaker 2: five dollars a month, which is the gap in payment,

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Speaker 2: with a return of ten percent over the course of

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Speaker 2: thirty years, that would net you nine hundred and seventy

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Speaker 2: nine thousand dollars, so almost a million dollars less in

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Speaker 2: your net worth because when you bought a home you

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Speaker 2: had a bad credit score. That that really drives home

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Speaker 2: I think, at least partially, how expensive a bad credit

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Speaker 2: score can be.

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Speaker 1: Yeah, that's the difference between a credit score of seven

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Speaker 1: to sixty or high, basically if you have excellent credit

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Speaker 1: versus not so great credit of six twenty or below.

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Speaker 1: But so another reason that we're talking about this today

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Speaker 1: is because this is even more of a problem for

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Speaker 1: the younger generations out there. This probably shouldn't come as

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Speaker 1: a shock, but Gen X, millennials and Gen Z all

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Speaker 1: have significantly lower credit scores than boomers and anyone older

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Speaker 1: than boomers. Okay boomer, yeah, like literally. According to data

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Speaker 1: from Fiico, the average credit score for gen Z is

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Speaker 1: six seventy nine. That's what it was I think in

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Speaker 1: twenty twenty one. That's what it was in twenty twenty two.

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Speaker 1: It's kind of flat lined. And while this is higher

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Speaker 1: than the six to twenty example that you just gave,

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Speaker 1: I still wouldn't want to be towards the bottom end

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Speaker 1: of what's just considered good enough. And so this raises

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Speaker 1: the question what is a bad credit score? Well, this

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Speaker 1: obviously goes on a scale, so you know, you could

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Speaker 1: be in the dumps where your score is what's it

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Speaker 1: called fives, like deep prime or deep supprime I think

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Speaker 1: is the term, or it could just be mildly bad.

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Speaker 1: Credit score scales also vary between the different bureaus, but

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Speaker 1: of quote unquote very good FICO score is between seven

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Speaker 1: forty and seven ninety nine.

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Speaker 2: Yeah, And so it is important to note that basically

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Speaker 2: that seven forty for us is the line of demarcation

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Speaker 2: that seven forty, maybe some lenders might say seven to

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Speaker 2: sixty is kind of considered the you're in top tier range.

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Speaker 2: But if you're above seven forty, you're doing great if

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Speaker 2: you're good shape. If you're below that, we want to

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Speaker 2: see improvement. If you're below six's eighty, you're in that

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Speaker 2: range where you need to really make some strides because

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Speaker 2: it's going to cost you a lot.

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Speaker 1: You literally are paying more for everything because of that rate. Exactly. Yeah.

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Speaker 2: So, and it is important to mention here too, Matt,

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Speaker 2: that we're not looking for perfection.

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Speaker 1: Right.

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Speaker 2: There's on a lot most credit scoring models, they go

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Speaker 2: up to eight fifty. And so you might be like,

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Speaker 2: and I know some how to money listeners who are

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Speaker 2: just really into their finances, they want to get to

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Speaker 2: that apex, that that top of Mount Everest to eight

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Speaker 2: fifty credit score. But it is possible, but it's also

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Speaker 2: not really worth pursuing. It's kind of a waste of

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Speaker 2: your tingue. Is it a reasonable goal? No, this really

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Speaker 2: should not be something that you're that you're focused on,

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Speaker 2: exactly Yeah. And so experience they found that one point

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Speaker 2: two percent of all credit holders have this elusive eight

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Speaker 2: to fifty perusc like literally the one percent the rare,

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Speaker 2: rarefied air right of credit scores. And but you and

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Speaker 2: I were nowhere near that. We're still way above seven forty,

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Speaker 2: which is great, but man, I have a cracked eight

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Speaker 2: hundred in a long time. I'm like fascinating in between that,

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Speaker 2: like seven eighty to eight hundred grand basically.

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Speaker 1: Okay, so of course we had a both, you know.

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Speaker 1: I'm sure you looked up your credit score again. I did.

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Speaker 1: I was shocked. I was actually so literally not to

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Speaker 1: brag my scores eight twelve. Oh look at you, I know,

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Speaker 1: And I was actually kind of disappointed because I truly

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Speaker 1: wanted to be kind of like in that seven ninety range,

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Speaker 1: which I feel like that's typically where I am, the

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Speaker 1: way I use my credit, the way I utilize my

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Speaker 1: credit for the things that actually do matter, And I

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Speaker 1: almost thought about not sharing it because I wanted to

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Speaker 1: be able to identify more with the common working man

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Speaker 1: and woman out there, because I don't want anyone to

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Speaker 1: think that this is something that I'm like really working on.

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Speaker 1: It truly does not matter. I would be perfectly happy,

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Speaker 1: Like you said, anything above seven to sixty's great territory.

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Speaker 2: We're going to give tips later on about exactly how

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Speaker 2: to get into the solid range that we want you

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Speaker 2: to be in and kind of how you can go

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Speaker 2: about that. But you're Yeah, you're sitting pretty over there

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Speaker 2: at eight twelve.

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Speaker 1: You more pretty than I need to be. Yeah, exactly,

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Speaker 1: Like what am I doing? Like spending all my extra

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Speaker 1: time like polishing that thing? Right, that's what it's seems with.

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Speaker 2: Daway lenders, ce you and I would be the exact same,

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Speaker 2: even though you're twenty twenty five points higher than I am.

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Speaker 2: R exactly, and so yeah, basically it's important to mention

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Speaker 2: that we just don't care about having a perfect credit score.

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Speaker 2: It's a worthless pursuit. But we're also going to speak

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Speaker 2: out of both sides of our mouse here to emphasize

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Speaker 2: that working to boost a bad credit score is a

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Speaker 2: worthwhile goal.

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Speaker 1: Right.

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Speaker 2: We don't love the fact that so much of our

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Speaker 2: personal finances revolve around this singular number.

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Speaker 1: And I guess what I think.

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Speaker 2: The fight CO score was instituted back in nineteen eighty nine,

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Speaker 2: so it's still a relatively modern phenomenon, the credit score,

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Speaker 2: But over those decades it's taken on an increasingly important

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Speaker 2: role in our financial lives, and so I wish that

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Speaker 2: weren't the case, but it is. And it's important to

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Speaker 2: point out that the credit bureaus sometimes they have the

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Speaker 2: wrong information. Some people would say a quarter of the

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Speaker 2: information on credit reports is wrong, which is pathetic and

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Speaker 2: messed up, and it harms a lot of us. And yeah,

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Speaker 2: sometimes they do a crappy job of keeping our personal

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Speaker 2: information secure. So I kind of wish that the whole

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Speaker 2: system was upended in some way, form or fashion. But

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Speaker 2: at the same time, pretending that credit scores don't exist

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Speaker 2: is going to end up harming our finances as individuals, right,

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Speaker 2: And so you can disparage the credit score score, you

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Speaker 2: can call it. And I love debt score like some

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Speaker 2: people do, but it's also while it's frustrating, it's still

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Speaker 2: an unfortunate necessity that we need to take care.

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Speaker 1: Of, yes, right, And actually, well you mentioned you mentioned

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Speaker 1: I love debt score, which makes me think of somebody

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Speaker 1: else because while we're clarifying you know some of these

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Speaker 1: money principles and what it is that we believe, and

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Speaker 1: we're also not absolutists when it comes to borrowing money

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Speaker 1: and taking out loans because like, on one hand, yes,

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Speaker 1: from a principal standpoint, anytime you are increasing your debt

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Speaker 1: load and anytime you take out a loan, you are

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Speaker 1: paying interest. But an important question to ask is what

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Speaker 1: are the alternatives. So take mortgages for instance, right like rates,

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Speaker 1: they're comparable honestly to where they were in their early

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Speaker 1: two thousands, and relatively speaking, they are much lower the

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Speaker 1: further back you look. So if you look back to

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Speaker 1: the nineties, that the eighties rates, mortgage rates were much

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Speaker 1: much higher. And so instead of paying off a fifteen

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Speaker 1: or a thirty year mortgage as fast as humanly possible,

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Speaker 1: we think that investing that money into the market that's

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Speaker 1: historically returned over seven percent with inflation, mind you, that

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Speaker 1: this is the best path forward. The vast majority of

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Speaker 1: homeowners have low mortgage rates. Nearly I saw that nearly

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Speaker 1: ninety two percent of folks have a rate that's locked

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Speaker 1: in under six percent, and sixty two percent of homeowners

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Speaker 1: are below four percent. So do we love the fundamental

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Speaker 1: principle of paying any interest to a lender, to a bank. No,

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Speaker 1: But the reality is that we don't live in a bubble,

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Speaker 1: right like, everything needs to be considered. You can't make

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Speaker 1: decisions based on principles alone. You got to face the

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Speaker 1: actual reality.

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Speaker 2: And the reality is in the modern age, we all

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Speaker 2: need a credit score, and we all need a healthy

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Speaker 2: credit score. But we also all need debt at sometimes

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Speaker 2: or one time or other. Right, typically that is to

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Speaker 2: finance the purchase of a home, or is to pursue

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Speaker 2: higher education, get a degree or something like that. And

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Speaker 2: that's not necessarily a bad thing, but it's also something

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Speaker 2: that needs to be done in moderation.

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Speaker 1: Yeah, we have to take just a whole You gotta

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Speaker 1: look at the entire picture. Basically, you need to fully

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Speaker 1: understand how it is that the decisions you make with

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Speaker 1: your money, how that's going to impact your overall financial picture.

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Speaker 1: But you also need to fully understand the high cost

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Speaker 1: of bad credit. You need to know and understand the

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Speaker 1: different ways that it's going to impact you. And we're

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Speaker 1: going to get into some of those different ways right

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Speaker 1: after the break, all right, Matt.

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Speaker 2: We mentioned one big example before the break. We talked

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Speaker 2: about how much just two and a half percent increase

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Speaker 2: in interest rate on a mortgage could cost you. And

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Speaker 2: the truth is it can be really expensive, especially when

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Speaker 2: you factor in that opportunity cost. We're gonna get to

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Speaker 2: actually a bunch of different ways people might not be

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Speaker 2: aware of at all, might not even be on their radar, like, hey, yeah,

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Speaker 2: I know my bad credit scores costs me maybe over here,

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Speaker 2: maybe a little bit over here, but you might not

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Speaker 2: realize the full extent. Especially let's say you're saying, well,

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Speaker 2: I don't plan on owning at home, so ha ha,

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Speaker 2: jokes on you.

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Speaker 1: I don't care. Well, there's still a lot even for

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Speaker 1: renters out there pay attention as well. Yeah, a lot

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Speaker 1: of ways it impacts them. Okay, So before we go,

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Speaker 1: I just thought of another example. We kind of you

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Speaker 1: mentioned the electricity example. How that can impact lots of

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Speaker 1: different things. Like we try to avoid like health examples

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Speaker 1: because I oftentimes they're overdone, but I can't get past.

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Speaker 1: I was thinking about how credit score, like a crappy

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Speaker 1: credit score, is like having too much stress in your life,

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Speaker 1: because just this one thing, too much stress, it can

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Speaker 1: impact how much you're able to sleep, which is going

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Speaker 1: to impact your physical health, which is then going to

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Speaker 1: impact your relationships. How does it treat other people? Because

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Speaker 1: you've got so much going on, it can have an

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Speaker 1: impact maybe on like the quality of work that you're doing.

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Speaker 1: So again, think about your credit score in this one

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Speaker 1: small thing that's going to affect just countless things that

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Speaker 1: you probably had no idea that there are all the again,

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Speaker 1: all of these sort of downstream effects that we do

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Speaker 1: need to pay attention to.

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Speaker 2: Im Sure, some of our listeners know that how much

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Speaker 2: anxiety can affect even, yeah, their physical health. We know

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Speaker 2: this in our family from personal experience and just how

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Speaker 2: it seemed like there were a lot of physical issues

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Speaker 2: going on with Emily back in the day and then

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Speaker 2: well it turns out anxiety was at the root of it.

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Speaker 2: But it's hard to know that in the moment, right, Yeah,

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Speaker 2: and you just you think it must be all these

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Speaker 2: other things, but but no, it's actually anxiety run them up.

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Speaker 1: Yeah. I like how you said that, because it's not

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Speaker 1: that stress or anxiety, like I think small amounts of

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Speaker 1: that causes you to do things, right, like it's what

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Speaker 1: gets you up out of bed. But when it's unhealthy, right,

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Speaker 1: just like with your credit score, when it's in an

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Speaker 1: unhealthy place and things turn sour, like, that's when it

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Speaker 1: kind of has those negative downstream effects. Because it's not

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Speaker 1: necessarily that we're trying to eliminate all stress from life. Sure,

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Speaker 1: it's just that.

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Speaker 2: Having you don't want to be like Peter and office

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Speaker 2: space like you get zero words, right, Well, it makes

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Speaker 2: me I think we did an episode back in the

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Speaker 2: day about using financial stress to your advantage.

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Speaker 1: How, Yeah, there's a way that rings a bell. Yeah,

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Speaker 1: where like little bits here and there, it can actually

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Speaker 1: be the pressure point that gets us to do the

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Speaker 1: thing that needs to be done.

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Speaker 2: And if we're feeling yeah, zero stress about it, then

432
00:19:10,240 --> 00:19:12,400
Speaker 2: we're likely to leave it undone. And so I think

433
00:19:12,440 --> 00:19:14,639
Speaker 2: it is important to feel some of that, but go

434
00:19:14,760 --> 00:19:17,520
Speaker 2: overboard with it, and man, it can completely upset the

435
00:19:17,520 --> 00:19:18,680
Speaker 2: apple car absolutely well.

436
00:19:18,760 --> 00:19:20,399
Speaker 1: Yeah, we'll look that one up. Linked to that one

437
00:19:20,480 --> 00:19:22,000
Speaker 1: in the show notes, because it's not that stress in

438
00:19:22,040 --> 00:19:23,920
Speaker 1: and of itself is the bad thing that you're trying

439
00:19:23,920 --> 00:19:27,120
Speaker 1: to eliminate. It's the other things. It's the negative consequences

440
00:19:27,400 --> 00:19:31,239
Speaker 1: that are occurring because of that overload. Yeah, exactly, all right,

441
00:19:31,280 --> 00:19:33,560
Speaker 1: So let's keep talking about credit scores, Matt. And the

442
00:19:33,600 --> 00:19:35,120
Speaker 1: first thing is people got to know where they stand,

443
00:19:35,160 --> 00:19:36,840
Speaker 1: because if you don't know where you stand, you don't

444
00:19:36,880 --> 00:19:38,879
Speaker 1: really know how you stack up and what needs improve it.

445
00:19:39,200 --> 00:19:41,800
Speaker 1: And so that means the first step is to look

446
00:19:41,920 --> 00:19:45,400
Speaker 1: up your credit score, and there are fortunately now freeways

447
00:19:45,440 --> 00:19:47,040
Speaker 1: to do that that did not used to be the case.

448
00:19:47,080 --> 00:19:50,800
Speaker 1: I still remember when Washington Mutual existed. That was my

449
00:19:50,880 --> 00:19:52,240
Speaker 1: bank of choice for a while. They had the best

450
00:19:52,320 --> 00:19:54,240
Speaker 1: interest rates. But not only did they have the best

451
00:19:54,280 --> 00:19:56,320
Speaker 1: interest rates, they were the only bank that I knew

452
00:19:56,359 --> 00:19:58,560
Speaker 1: of that allowed you to peek at your credit score

453
00:19:58,600 --> 00:20:01,639
Speaker 1: every single month for free. And so, me being the

454
00:20:02,280 --> 00:20:05,320
Speaker 1: curious money nerd that I was in my early twenties,

455
00:20:05,640 --> 00:20:08,320
Speaker 1: I was stoked to have this bank letting me see

456
00:20:08,359 --> 00:20:11,280
Speaker 1: my credit score every month. But now everybody does that.

457
00:20:12,320 --> 00:20:15,080
Speaker 1: It's pretty much ubiquitous, right. You can go whatever credit

458
00:20:15,160 --> 00:20:17,879
Speaker 1: card you have, they probably offer you access to your

459
00:20:17,880 --> 00:20:20,360
Speaker 1: credit score for free. If not, if you're with one

460
00:20:20,400 --> 00:20:22,879
Speaker 1: of the random issuers that doesn't do this, it doesn't

461
00:20:22,960 --> 00:20:25,359
Speaker 1: have like a back end in their system that allows

462
00:20:25,400 --> 00:20:27,239
Speaker 1: you to kind of take a peek at your score. Well.

463
00:20:27,400 --> 00:20:30,119
Speaker 2: Credit Karma is a great site that offers a lot

464
00:20:30,200 --> 00:20:32,600
Speaker 2: of information, a lot of insight about your credit score

465
00:20:32,680 --> 00:20:34,879
Speaker 2: and your credit standing. We would say sign up for

466
00:20:34,880 --> 00:20:37,000
Speaker 2: an account there so you can not only see what

467
00:20:37,119 --> 00:20:39,720
Speaker 2: your score is currently, but also so that you can

468
00:20:39,760 --> 00:20:41,680
Speaker 2: see what you can do to improve. I love in

469
00:20:41,760 --> 00:20:44,040
Speaker 2: Credit Karma mat in the back end, the score detail

470
00:20:44,160 --> 00:20:46,200
Speaker 2: section is enlightening and it kind of gives you a

471
00:20:46,280 --> 00:20:49,439
Speaker 2: window into what's hurting you and what you can improve,

472
00:20:49,840 --> 00:20:52,320
Speaker 2: which is just really important if we're talking about like

473
00:20:52,400 --> 00:20:55,399
Speaker 2: ditching that crappy credit score and building it up so

474
00:20:55,480 --> 00:20:58,359
Speaker 2: that we can get better terms and not get screwed

475
00:20:58,400 --> 00:20:59,119
Speaker 2: over by the system.

476
00:20:59,200 --> 00:21:01,840
Speaker 1: Totally, yeah, and honestly, like there are more credit scores

477
00:21:01,880 --> 00:21:06,320
Speaker 1: out there, like actual systems and models than you might think.

478
00:21:07,200 --> 00:21:09,560
Speaker 1: So first off, there are the three major credit bureus

479
00:21:09,560 --> 00:21:12,400
Speaker 1: who keep a file on you, but FIGHTO and Vantage

480
00:21:12,480 --> 00:21:15,160
Speaker 1: three point zero they are the most popular to credit

481
00:21:15,240 --> 00:21:18,600
Speaker 1: score numbers that you'll actually see floating out there. But

482
00:21:18,680 --> 00:21:21,399
Speaker 1: those bureaus, they might actually have dozens of different scores

483
00:21:21,440 --> 00:21:24,640
Speaker 1: that they use for different reasons. And we just want

484
00:21:24,680 --> 00:21:26,440
Speaker 1: to mention that so that you know that that exists.

485
00:21:26,480 --> 00:21:28,280
Speaker 1: You don't necessarily need to know all the details or

486
00:21:28,280 --> 00:21:30,480
Speaker 1: even how the sausage is made, but the scores that

487
00:21:30,520 --> 00:21:33,760
Speaker 1: you get from credit Karma or from your credit card company,

488
00:21:34,200 --> 00:21:36,840
Speaker 1: they're going to shed enough light on the situation. You know,

489
00:21:37,080 --> 00:21:39,720
Speaker 1: you might not have access to the same exact score

490
00:21:39,800 --> 00:21:41,720
Speaker 1: that lenders do, but we do think that the free

491
00:21:41,760 --> 00:21:45,240
Speaker 1: scores are, you know, good enough. I do wish that

492
00:21:45,280 --> 00:21:48,040
Speaker 1: the credit scored models were a little less muddled that

493
00:21:48,160 --> 00:21:50,879
Speaker 1: they were a little less confusing. But this is an

494
00:21:50,920 --> 00:21:54,600
Speaker 1: instance where having all the details and knowing exactly what

495
00:21:54,680 --> 00:21:56,680
Speaker 1: it is that you should be going after, it's not

496
00:21:56,720 --> 00:22:00,720
Speaker 1: necessarily going to further you along towards the goal of

497
00:22:01,160 --> 00:22:03,359
Speaker 1: financial freedom, right, Like it could get you closer to

498
00:22:03,440 --> 00:22:05,840
Speaker 1: having the perfect credit score, but again that should not

499
00:22:05,960 --> 00:22:07,680
Speaker 1: be the goal. It's the way, just like with a

500
00:22:07,720 --> 00:22:10,920
Speaker 1: stress or the electricity, it's not that well, yeah we

501
00:22:10,960 --> 00:22:13,240
Speaker 1: should have electricity. Well no, it's about what the electricity

502
00:22:13,280 --> 00:22:14,880
Speaker 1: can do for you. It's about what having less stress

503
00:22:15,119 --> 00:22:17,560
Speaker 1: in your life, the downstream impacts of that. Yeah, I

504
00:22:17,600 --> 00:22:20,480
Speaker 1: think you could obsess about this way too much. And

505
00:22:21,320 --> 00:22:24,440
Speaker 1: again it's one of these opaque systems, and I wish

506
00:22:24,480 --> 00:22:26,399
Speaker 1: there was more insight, and I wish there was like

507
00:22:26,480 --> 00:22:29,440
Speaker 1: even federal law probably that required the credit bureaus to

508
00:22:29,520 --> 00:22:32,440
Speaker 1: share more information about how they compile our scores and

509
00:22:32,520 --> 00:22:35,520
Speaker 1: what our scores are for free. We have federal.

510
00:22:35,359 --> 00:22:39,879
Speaker 2: Required access to our credit reports every single year, and

511
00:22:39,960 --> 00:22:41,879
Speaker 2: in fact they're available every single week for free right

512
00:22:41,880 --> 00:22:44,200
Speaker 2: now at annual credit report dot com. If you want

513
00:22:44,240 --> 00:22:46,400
Speaker 2: to get your credit report, that is the best place

514
00:22:46,480 --> 00:22:48,439
Speaker 2: to go to check up and see kind of like, well,

515
00:22:48,480 --> 00:22:50,320
Speaker 2: what is thinging me on my credit You're going to

516
00:22:50,400 --> 00:22:52,800
Speaker 2: want to go there. That's Annual Credit Report dot Com.

517
00:22:52,880 --> 00:22:53,760
Speaker 2: So we'll link to that in the show.

518
00:22:53,960 --> 00:22:55,760
Speaker 1: It's been a minute since we've mentioned that, but that

519
00:22:55,880 --> 00:22:58,760
Speaker 1: was something that they switched to doing free weekly during

520
00:22:58,800 --> 00:23:01,119
Speaker 1: the pandemic the pandemic, and we're way past that, so

521
00:23:01,119 --> 00:23:03,760
Speaker 1: I'm actually I wouldn't be surprised if that goes away, Yeah,

522
00:23:03,920 --> 00:23:04,479
Speaker 1: sometime this year.

523
00:23:04,520 --> 00:23:06,080
Speaker 2: Take advantage of it now so you can kind of

524
00:23:06,160 --> 00:23:08,080
Speaker 2: get the behind the scenes look at what's happening on

525
00:23:08,359 --> 00:23:12,040
Speaker 2: your credit report. What's on there directly impacts your credit score. Right,

526
00:23:12,720 --> 00:23:14,960
Speaker 2: But okay, where's it going to cost you? We said

527
00:23:15,000 --> 00:23:17,120
Speaker 2: that crappy credit is going to cost you the high

528
00:23:17,200 --> 00:23:19,160
Speaker 2: cost of crappy credit, that's right, what we're talking about.

529
00:23:19,200 --> 00:23:21,320
Speaker 2: Let's outline the specific ways in which is going to

530
00:23:21,400 --> 00:23:24,080
Speaker 2: do that. And the first is higher interest rates on

531
00:23:24,200 --> 00:23:27,159
Speaker 2: basically everything. And you might say, no, duh, I get it,

532
00:23:27,280 --> 00:23:30,119
Speaker 2: and this is I would say, common knowledge, but just

533
00:23:30,200 --> 00:23:32,560
Speaker 2: how much it can cost you isn't terribly well understood.

534
00:23:32,560 --> 00:23:34,359
Speaker 2: And it's not just the home loan where you might

535
00:23:34,359 --> 00:23:36,480
Speaker 2: add a few points of interest costing you tens of

536
00:23:36,520 --> 00:23:39,200
Speaker 2: thousands of dollars or more likely we discussed earlier over

537
00:23:39,280 --> 00:23:40,680
Speaker 2: the life of your loan, even though I think I

538
00:23:40,720 --> 00:23:42,760
Speaker 2: said that was a three hundred thousand dollars loan, which

539
00:23:42,880 --> 00:23:45,040
Speaker 2: really a lot of people taking out much higher loans

540
00:23:45,080 --> 00:23:49,200
Speaker 2: than that. This could be catastrophic if you for over

541
00:23:49,240 --> 00:23:52,119
Speaker 2: the course of ten, fifteen, twenty thirty years, if you

542
00:23:52,280 --> 00:23:55,480
Speaker 2: have a higher interest rate on that mortgage. But in

543
00:23:55,520 --> 00:23:57,320
Speaker 2: addition to that, right, if you don't pay cash for

544
00:23:57,680 --> 00:24:00,720
Speaker 2: a car and you get financing for that, the rate

545
00:24:00,840 --> 00:24:02,840
Speaker 2: on that loan is going to be sky high if

546
00:24:02,880 --> 00:24:05,720
Speaker 2: your score sucks as well. We're talking credit card rates,

547
00:24:05,840 --> 00:24:08,800
Speaker 2: credit card level rates on a car loan. You're gonna

548
00:24:08,800 --> 00:24:12,679
Speaker 2: get financing in the low to mid twenties potentially if

549
00:24:12,720 --> 00:24:14,560
Speaker 2: you have got a bad credit score, and that is

550
00:24:14,640 --> 00:24:17,320
Speaker 2: going to impact not only your payment, but the overall

551
00:24:17,359 --> 00:24:19,920
Speaker 2: amount that you pay for that car. Thousands and thousands

552
00:24:20,000 --> 00:24:22,440
Speaker 2: and thousands of dollars more you're going to pay for

553
00:24:22,560 --> 00:24:24,880
Speaker 2: that vehicle than if you'd had a good credit score

554
00:24:24,880 --> 00:24:25,280
Speaker 2: to begin with.

555
00:24:25,480 --> 00:24:27,359
Speaker 1: That's right, and so you kind of hinted at this

556
00:24:27,440 --> 00:24:30,040
Speaker 1: at the beginning. But the one example we gave before

557
00:24:30,080 --> 00:24:32,240
Speaker 1: the break had to do with the amount of money

558
00:24:32,240 --> 00:24:35,400
Speaker 1: that you're paying an interest on a mortgage. But if

559
00:24:35,600 --> 00:24:38,280
Speaker 1: you are a renter, this is going to really impact

560
00:24:38,320 --> 00:24:40,159
Speaker 1: you as well, because you could potentially not get the

561
00:24:40,320 --> 00:24:43,080
Speaker 1: home or the apartment that you're trying to rent. Because

562
00:24:43,119 --> 00:24:46,560
Speaker 1: your credit score is instrumental in a landlord's decision to

563
00:24:46,640 --> 00:24:48,440
Speaker 1: run a place to you or not. You're essentially in

564
00:24:48,480 --> 00:24:50,800
Speaker 1: competition with other potential renters and your credit score is

565
00:24:50,840 --> 00:24:53,560
Speaker 1: one of the major deciding factors. You might even find

566
00:24:53,600 --> 00:24:55,720
Speaker 1: that you're able to rent this place with a bad

567
00:24:55,760 --> 00:24:58,840
Speaker 1: credit score, but only if you put down a larger

568
00:24:58,920 --> 00:25:02,879
Speaker 1: security positive, something I've done personally with with with Tennis before.

569
00:25:03,040 --> 00:25:04,760
Speaker 1: That's the only way the landlord can kind of it's

570
00:25:04,760 --> 00:25:07,919
Speaker 1: how it's how you cover their butty. Yeah, you are

571
00:25:08,000 --> 00:25:10,000
Speaker 1: able to hedge some of that risk by doing that,

572
00:25:10,560 --> 00:25:12,600
Speaker 1: but this means more of your money is tied up

573
00:25:12,960 --> 00:25:15,399
Speaker 1: just because that three digit number is not up to snuff.

574
00:25:15,440 --> 00:25:18,280
Speaker 1: So it's important to mention that renters aren't able to

575
00:25:18,680 --> 00:25:22,159
Speaker 1: just skate by supporting a crappy score without any consequences.

576
00:25:22,280 --> 00:25:24,000
Speaker 1: You are impacted as well. It's not just those out

577
00:25:24,000 --> 00:25:24,960
Speaker 1: there shopping for mortgages.

578
00:25:25,440 --> 00:25:27,159
Speaker 2: Might you might not get the apartment at all, you

579
00:25:27,240 --> 00:25:29,000
Speaker 2: might be forced to come up with a much bigger,

580
00:25:29,240 --> 00:25:31,080
Speaker 2: you know, security deposit, and you might not have that

581
00:25:31,160 --> 00:25:33,600
Speaker 2: money on hand. There's a lot of downsides for renters

582
00:25:33,640 --> 00:25:36,000
Speaker 2: when it comes to low credit scores as well. So

583
00:25:36,040 --> 00:25:37,960
Speaker 2: I'm glad you mentioned that math. That's really important. But

584
00:25:38,119 --> 00:25:40,800
Speaker 2: let's talk about credit card APR. That's something else that's

585
00:25:40,840 --> 00:25:43,280
Speaker 2: going to happen. The the interest you're going to pay

586
00:25:43,680 --> 00:25:46,440
Speaker 2: on credit cards if you have poor credit. Like, we

587
00:25:46,680 --> 00:25:48,960
Speaker 2: hardly ever talk about this actually because our approach to

588
00:25:49,080 --> 00:25:51,679
Speaker 2: using credit cards is we want people to pay off

589
00:25:51,680 --> 00:25:53,600
Speaker 2: the balance on time and in full every single month.

590
00:25:53,960 --> 00:25:56,800
Speaker 2: That is how you and I use and handle credit cards.

591
00:25:56,840 --> 00:25:58,840
Speaker 2: That's how we advise how to money listeners. It's like

592
00:25:58,880 --> 00:26:00,800
Speaker 2: credit cards are not the devil or a tool that

593
00:26:00,920 --> 00:26:02,919
Speaker 2: you can use and guess what, if you pay them

594
00:26:02,920 --> 00:26:04,480
Speaker 2: off on time and in full every month, it doesn't

595
00:26:04,480 --> 00:26:07,639
Speaker 2: even matter what the credit card APR is in the

596
00:26:07,760 --> 00:26:12,320
Speaker 2: terms and conditions that you signed. It's it's irrelevant, right basically, yeah,

597
00:26:12,359 --> 00:26:13,160
Speaker 2: because it doesn't matter.

598
00:26:13,200 --> 00:26:15,200
Speaker 1: But hardly ever talk about that or think about that

599
00:26:15,320 --> 00:26:18,280
Speaker 1: because like in our minds, well, that's just a non negotiable,

600
00:26:18,400 --> 00:26:21,280
Speaker 1: like you just don't do that but that's not right.

601
00:26:21,400 --> 00:26:22,480
Speaker 1: That's not what most folks do.

602
00:26:22,720 --> 00:26:24,359
Speaker 2: Unfortunately, when you look at the numbers, it's something like

603
00:26:24,440 --> 00:26:26,399
Speaker 2: fifty close to fifty percent, or maybe a little more

604
00:26:26,400 --> 00:26:28,320
Speaker 2: than fifty percent of people don't pay off their balance

605
00:26:28,359 --> 00:26:30,359
Speaker 2: on time and in full every single month. And so

606
00:26:30,480 --> 00:26:33,200
Speaker 2: when they carry efty two percent yea of like slightly

607
00:26:33,240 --> 00:26:34,960
Speaker 2: the majority, it makes me shutter to think that there's

608
00:26:35,000 --> 00:26:37,919
Speaker 2: that many people who who don't pay off that balance

609
00:26:37,960 --> 00:26:40,359
Speaker 2: on time and full because of how damaging that can

610
00:26:40,400 --> 00:26:42,560
Speaker 2: be to their finances. And there's a reason that the

611
00:26:42,600 --> 00:26:44,760
Speaker 2: banks continue to offer points and cash back and all

612
00:26:44,800 --> 00:26:46,359
Speaker 2: the other perks that you and I that we like

613
00:26:46,400 --> 00:26:47,679
Speaker 2: to take advantage of, and that a lot of how

614
00:26:47,680 --> 00:26:49,800
Speaker 2: to Money listeners like to take advantage of. And that's

615
00:26:49,880 --> 00:26:52,359
Speaker 2: because the banks are still making money, and they're making money,

616
00:26:52,560 --> 00:26:55,320
Speaker 2: specifically on the backs of the people charging them exorbitant

617
00:26:55,320 --> 00:26:58,239
Speaker 2: interest rates. And that's happening when they don't pay their

618
00:26:58,280 --> 00:27:00,439
Speaker 2: balance off on time and in full. And so if

619
00:27:00,440 --> 00:27:03,600
Speaker 2: you're applying for a credit card, you might be denied

620
00:27:03,640 --> 00:27:06,240
Speaker 2: completely or they just might say, hey, listen, your your

621
00:27:06,320 --> 00:27:07,760
Speaker 2: rate's gonna be a little bit higher because you're a

622
00:27:07,760 --> 00:27:11,240
Speaker 2: bigger risk to us. And again, if you're handling credit

623
00:27:11,280 --> 00:27:13,119
Speaker 2: cards the way Matt and I talk about, not that

624
00:27:13,200 --> 00:27:15,040
Speaker 2: big of a deal. But if you're not, and you're

625
00:27:15,080 --> 00:27:18,080
Speaker 2: forced to put money and put money on and charge

626
00:27:18,119 --> 00:27:19,840
Speaker 2: up those credit cards, it is a big deal.

627
00:27:20,040 --> 00:27:21,479
Speaker 1: Yeah, it is a big for you. Yeah. I mean

628
00:27:21,520 --> 00:27:24,600
Speaker 1: the difference between someone who's got crapic credit, Like it's

629
00:27:24,600 --> 00:27:27,600
Speaker 1: somewhere like eight to ten percent difference between somebody who

630
00:27:28,359 --> 00:27:30,800
Speaker 1: is carrying a balance that has poor credit versus somebody

631
00:27:30,880 --> 00:27:33,120
Speaker 1: who is that has an excellent credit score.

632
00:27:33,200 --> 00:27:34,840
Speaker 2: And you might not be eligible for some of those

633
00:27:35,080 --> 00:27:37,560
Speaker 2: balanced transfer opportunities which will help you pay off that

634
00:27:37,680 --> 00:27:40,080
Speaker 2: credit card debt more quickly and pay less an interest

635
00:27:40,160 --> 00:27:42,880
Speaker 2: as well. So it's it's important when we're talking about

636
00:27:42,880 --> 00:27:44,400
Speaker 2: the credit card side of things.

637
00:27:44,520 --> 00:27:47,040
Speaker 1: Yeah. Well, and not only like the transfer cards, but

638
00:27:47,119 --> 00:27:48,680
Speaker 1: just some of the cards that offer the best benefits

639
00:27:48,720 --> 00:27:51,200
Speaker 1: because you may not have access to those either. You

640
00:27:51,240 --> 00:27:52,920
Speaker 1: won't even be able to get the best credit card

641
00:27:52,960 --> 00:27:54,879
Speaker 1: offers out there because your score is in the dumps.

642
00:27:55,160 --> 00:27:57,680
Speaker 1: To get the cards that come with the best rewards,

643
00:27:57,720 --> 00:28:00,760
Speaker 1: you're gonna need a solid or even just a very

644
00:28:00,840 --> 00:28:03,840
Speaker 1: good excellent credit score. You're gonna be stuck with far

645
00:28:04,119 --> 00:28:06,760
Speaker 1: less rewarding pieces of plastic. If your score is pathetic

646
00:28:06,960 --> 00:28:10,360
Speaker 1: or honestly, you might even be turned down for credit altogether.

647
00:28:10,480 --> 00:28:12,399
Speaker 1: You won't have access to that card. But if you're

648
00:28:12,440 --> 00:28:14,760
Speaker 1: looking to up your credit card game and some of

649
00:28:14,800 --> 00:28:17,320
Speaker 1: the different rewards and benefits that you're able to score

650
00:28:17,520 --> 00:28:20,680
Speaker 1: from these credit cards and what it is that they're offering,

651
00:28:20,800 --> 00:28:22,359
Speaker 1: you got to turn that credit score around.

652
00:28:22,400 --> 00:28:24,280
Speaker 2: Yeah, Matt, when we talk about some of our favorite

653
00:28:24,440 --> 00:28:27,240
Speaker 2: credit cards on the show, and we've got an article

654
00:28:27,240 --> 00:28:29,000
Speaker 2: about it on the website or whatever, But like when

655
00:28:29,040 --> 00:28:32,240
Speaker 2: we mention some of those, many of those, most of

656
00:28:32,320 --> 00:28:35,080
Speaker 2: the great ones are only available to people with great

657
00:28:35,119 --> 00:28:38,280
Speaker 2: credit scores. Okay, how else is that crappy credit score

658
00:28:38,560 --> 00:28:41,000
Speaker 2: going to cost you? Well, it's gonna lead to higher

659
00:28:41,080 --> 00:28:43,720
Speaker 2: insurance rates. This is one more place you're going to

660
00:28:43,760 --> 00:28:46,360
Speaker 2: feel the negative effects of a rough credit score. And

661
00:28:46,800 --> 00:28:49,239
Speaker 2: there are, yes, a handful of states, a very very

662
00:28:49,280 --> 00:28:52,240
Speaker 2: small amount of states that don't let insurance companies factor

663
00:28:52,320 --> 00:28:55,680
Speaker 2: in your credit score to determine rates. California is the

664
00:28:55,720 --> 00:28:58,200
Speaker 2: biggest state. I believe Massachusetts is another one. There might

665
00:28:58,240 --> 00:29:00,000
Speaker 2: be one more, but I think there's only three states

666
00:29:00,200 --> 00:29:02,960
Speaker 2: that really take that approach, but in most states, in

667
00:29:03,120 --> 00:29:05,600
Speaker 2: all the others, your credit score is going to have

668
00:29:05,640 --> 00:29:08,200
Speaker 2: a direct impact on what you're being charged and the

669
00:29:08,320 --> 00:29:11,200
Speaker 2: quotes that you receive when you're shopping around. So depending

670
00:29:11,240 --> 00:29:13,760
Speaker 2: on which stats you trust, bad credit could cost you

671
00:29:13,840 --> 00:29:16,440
Speaker 2: between seventy five and one hundred and ten percent more.

672
00:29:16,800 --> 00:29:19,240
Speaker 2: On the insurance front, that's a lot more yikes. Yes,

673
00:29:19,680 --> 00:29:21,720
Speaker 2: So instead of like, you know, a thousand bucks a

674
00:29:21,800 --> 00:29:24,200
Speaker 2: year to ensure that car, you're forking over two thousand

675
00:29:24,200 --> 00:29:27,520
Speaker 2: dollars a year, and which is a significant jump. That's

676
00:29:27,560 --> 00:29:30,120
Speaker 2: so much more money. In bank Rate found that homeowners

677
00:29:30,160 --> 00:29:32,840
Speaker 2: insurance will cost on average sixty three percent more for

678
00:29:32,920 --> 00:29:35,360
Speaker 2: folks with bad credit as well. That's another big jump.

679
00:29:35,440 --> 00:29:37,320
Speaker 2: So we're talking about let's say you own a home

680
00:29:37,600 --> 00:29:40,479
Speaker 2: and a car and your credit goes from six seventy

681
00:29:40,600 --> 00:29:43,479
Speaker 2: to seven sixty. You're going to be saving in all

682
00:29:43,560 --> 00:29:47,080
Speaker 2: likelihood a few thousand dollars every single year just because

683
00:29:47,120 --> 00:29:49,040
Speaker 2: you tweak your credit score. You bumped it up, and

684
00:29:49,320 --> 00:29:52,360
Speaker 2: that jump is going to be lead to significant savings.

685
00:29:52,200 --> 00:29:54,800
Speaker 1: Right, yeah, just on homeowners and auto insurance, but you

686
00:29:54,920 --> 00:29:58,160
Speaker 1: also might be denied a job. Most folks, they've got

687
00:29:58,200 --> 00:30:00,240
Speaker 1: no idea that an employer can pull your credit and

688
00:30:00,520 --> 00:30:03,240
Speaker 1: opt to not hire you in most states if you

689
00:30:03,440 --> 00:30:06,480
Speaker 1: have bad credit. Honestly, many employers won't do this, like

690
00:30:06,560 --> 00:30:09,040
Speaker 1: they don't actually care, and many won't even pull credit

691
00:30:09,080 --> 00:30:11,600
Speaker 1: scores at all, but some of them do, especially for

692
00:30:11,720 --> 00:30:14,760
Speaker 1: more senior positions. So you know, well, will you be

693
00:30:14,800 --> 00:30:17,600
Speaker 1: denied you a job because your score is six 't eighty,

694
00:30:17,680 --> 00:30:20,720
Speaker 1: Well probably not, but if you are closer to like

695
00:30:20,920 --> 00:30:24,200
Speaker 1: five hundred, well that I might raise some flags. Be like, wow,

696
00:30:24,280 --> 00:30:26,600
Speaker 1: this person, like what's going on? Like I feel like

697
00:30:26,720 --> 00:30:28,880
Speaker 1: a subject conversation is gonna be warranted because then you're, like,

698
00:30:29,120 --> 00:30:31,360
Speaker 1: you've seem great in all the areas of your life,

699
00:30:31,400 --> 00:30:33,560
Speaker 1: why is it that your credits so terrible?

700
00:30:33,600 --> 00:30:37,360
Speaker 2: Because that means that you probably didn't follow through on

701
00:30:37,520 --> 00:30:39,600
Speaker 2: some really important things when it come came to payments

702
00:30:39,600 --> 00:30:40,880
Speaker 2: and stuff like that. You might be able to explain

703
00:30:40,880 --> 00:30:43,160
Speaker 2: it away and still get the job, but you're right, Matt,

704
00:30:43,160 --> 00:30:45,280
Speaker 2: it's probably gonna raise some big red flags. And yeah,

705
00:30:45,400 --> 00:30:47,360
Speaker 2: cause a conversation if not just an outright to a

706
00:30:47,440 --> 00:30:49,080
Speaker 2: denial of getting that opportunity.

707
00:30:49,160 --> 00:30:51,880
Speaker 1: Yeah, it would suck to just do so well on

708
00:30:51,960 --> 00:30:53,800
Speaker 1: all the other fronts you interview. Well, you've got a

709
00:30:53,800 --> 00:30:56,280
Speaker 1: great resume, you got great references, but in the end

710
00:30:56,360 --> 00:30:58,200
Speaker 1: you're like, oh, yeah, I didn't get that job because

711
00:30:58,240 --> 00:30:58,840
Speaker 1: of my credit score.

712
00:30:59,000 --> 00:31:00,800
Speaker 2: And again that's like a by state thing. I think

713
00:31:00,800 --> 00:31:04,320
Speaker 2: there's ten or eleven states that don't allow for potential

714
00:31:04,320 --> 00:31:07,480
Speaker 2: employers to pull a credit score, but in a bunch

715
00:31:07,480 --> 00:31:10,040
Speaker 2: of other states this is fair game. And so yeah,

716
00:31:10,080 --> 00:31:12,680
Speaker 2: how widely is it used, how pervasive is it? Well,

717
00:31:12,800 --> 00:31:16,400
Speaker 2: I mean that depends on the specific company typically, but

718
00:31:17,200 --> 00:31:19,560
Speaker 2: it's worth noting that your credit score could impact your

719
00:31:19,600 --> 00:31:22,600
Speaker 2: career and something else. Matt like that the high cost

720
00:31:22,720 --> 00:31:25,480
Speaker 2: of crappy credit, well, in all likelihood for a whole

721
00:31:25,480 --> 00:31:28,640
Speaker 2: lot of people, will lead to delayed retirement. And people

722
00:31:28,680 --> 00:31:30,160
Speaker 2: might say, well, how in the world is that, Like,

723
00:31:30,200 --> 00:31:31,640
Speaker 2: how am I not going to get to retire as

724
00:31:31,680 --> 00:31:34,680
Speaker 2: early because my credit sucks? Well, again, going back to

725
00:31:34,800 --> 00:31:36,680
Speaker 2: kind of the numbers and the opportunity cost and how

726
00:31:36,760 --> 00:31:39,320
Speaker 2: much extra you're going to be paying for higher interest

727
00:31:39,400 --> 00:31:41,480
Speaker 2: rates and stuff like that. If all that extra money

728
00:31:41,720 --> 00:31:45,520
Speaker 2: is going to higher rates and bigger insurance premiums, larger

729
00:31:45,600 --> 00:31:48,280
Speaker 2: security deposits, all that kind of stuff, you've got less

730
00:31:48,280 --> 00:31:51,080
Speaker 2: money to throw into those tax advantage retirement accounts, and

731
00:31:51,200 --> 00:31:54,000
Speaker 2: this will in all likelihood delay your ability to quit

732
00:31:54,080 --> 00:31:56,720
Speaker 2: working or like we talked about earlier, this month, you're

733
00:31:56,720 --> 00:31:59,840
Speaker 2: going to move along that financial independent spectrum more slowly.

734
00:32:00,280 --> 00:32:01,960
Speaker 1: And I don't know about you, I just kind of

735
00:32:02,240 --> 00:32:03,960
Speaker 1: hate being inefficient. I hate fees.

736
00:32:04,120 --> 00:32:06,640
Speaker 2: I hate more money leaking out of my account than

737
00:32:06,920 --> 00:32:09,320
Speaker 2: needs needs to be going out of my account. And

738
00:32:09,400 --> 00:32:11,720
Speaker 2: this is one of those things where bad credit, you're

739
00:32:11,760 --> 00:32:14,320
Speaker 2: just gonna at every turn everything is going to cost

740
00:32:14,360 --> 00:32:17,120
Speaker 2: you more than it would for somebody who has a

741
00:32:17,200 --> 00:32:20,600
Speaker 2: better credit score. And so it's a little de moralizing

742
00:32:20,680 --> 00:32:23,200
Speaker 2: but it's also a little self defeating at the same time.

743
00:32:23,240 --> 00:32:24,680
Speaker 2: And so totally, I think a lot of people are

744
00:32:24,720 --> 00:32:26,320
Speaker 2: going to find a way to oh man, I'm paying

745
00:32:26,400 --> 00:32:27,960
Speaker 2: extra for this, an extra for that, and more for this.

746
00:32:28,400 --> 00:32:31,640
Speaker 2: And because of that, across the board's costing you more money.

747
00:32:31,680 --> 00:32:33,480
Speaker 2: You got like money into and dest less money to

748
00:32:33,640 --> 00:32:35,720
Speaker 2: sock away in the IRA and the foural one K

749
00:32:35,880 --> 00:32:38,160
Speaker 2: and yeah, that's going to have an impact on your

750
00:32:38,560 --> 00:32:39,320
Speaker 2: ability to retire.

751
00:32:39,440 --> 00:32:41,680
Speaker 1: Totally. Yeah, we are all about you having options. It's

752
00:32:41,720 --> 00:32:43,640
Speaker 1: not that we want you to have that perfect credit score.

753
00:32:43,640 --> 00:32:45,480
Speaker 1: It's that we want you to have options, and we

754
00:32:45,560 --> 00:32:47,560
Speaker 1: want you to have the ability to live life on

755
00:32:47,640 --> 00:32:49,760
Speaker 1: your own terms, to make the decisions that you want

756
00:32:49,800 --> 00:32:51,480
Speaker 1: to in life, because those are things that you desire,

757
00:32:51,600 --> 00:32:55,120
Speaker 1: not because you have to, not because you've subjected yourself

758
00:32:55,160 --> 00:32:59,120
Speaker 1: to additional payments and you haven't eliminated the balance and

759
00:32:59,240 --> 00:33:02,560
Speaker 1: you're making it trus payments. And in order to pursue

760
00:33:02,600 --> 00:33:04,040
Speaker 1: the things that you want to pursue, you need to

761
00:33:04,080 --> 00:33:06,880
Speaker 1: have a degree of freedom, financial freedom, and you're only

762
00:33:06,920 --> 00:33:08,360
Speaker 1: going to be able to do that if you take

763
00:33:08,400 --> 00:33:10,520
Speaker 1: those extra dollars and instead of giving them to the

764
00:33:10,600 --> 00:33:12,560
Speaker 1: bank and the form of interest, you're able to take

765
00:33:12,560 --> 00:33:15,960
Speaker 1: that money and invest it for future you future you

766
00:33:16,080 --> 00:33:19,800
Speaker 1: will definitely appreciate that. Yeah, yeah, I mean rather have

767
00:33:19,880 --> 00:33:22,600
Speaker 1: that money going to you than to the banks lending institutions.

768
00:33:22,640 --> 00:33:25,000
Speaker 1: And again, just because like we said that, the credit

769
00:33:25,040 --> 00:33:27,360
Speaker 1: scoring model not our favorite. We don't love that it

770
00:33:27,440 --> 00:33:29,160
Speaker 1: exists in the form and fashion that it does. We

771
00:33:29,160 --> 00:33:31,040
Speaker 1: don't love how opake then it is, and how difficult

772
00:33:31,040 --> 00:33:33,280
Speaker 1: it is to ascertain even what your credit score is

773
00:33:33,480 --> 00:33:36,000
Speaker 1: or you know, how many credit scores you have behind

774
00:33:36,040 --> 00:33:38,120
Speaker 1: the scenes on you. But still it's the game. It's

775
00:33:38,120 --> 00:33:41,520
Speaker 1: important to play if you want to be as efficient

776
00:33:41,560 --> 00:33:43,560
Speaker 1: as optimized with your finances as possible, and you don't

777
00:33:43,560 --> 00:33:46,600
Speaker 1: want to delay big milestones along the way along your

778
00:33:46,840 --> 00:33:49,800
Speaker 1: the financial independence path that you're trotting. But Matt, we've

779
00:33:49,840 --> 00:33:52,080
Speaker 1: got more to get to. Let's talk about in a

780
00:33:52,160 --> 00:33:55,240
Speaker 1: second mitigating the downsides of a bad credit score and

781
00:33:55,320 --> 00:33:58,920
Speaker 1: then how you can actually improve your score meaningfully. There's

782
00:33:58,920 --> 00:34:01,280
Speaker 1: a lot of potential pitfall some people need to avoid

783
00:34:01,600 --> 00:34:03,640
Speaker 1: when they're doing that. We'll discuss We'll get into that

784
00:34:03,720 --> 00:34:14,560
Speaker 1: right after this. All right, we are back and we're

785
00:34:14,719 --> 00:34:17,960
Speaker 1: talking about the high cost of having crappy credit. And

786
00:34:18,480 --> 00:34:20,719
Speaker 1: you know what we're not gonna do here is now

787
00:34:20,880 --> 00:34:24,240
Speaker 1: talk through what makes up your FICO score. Like basically,

788
00:34:24,320 --> 00:34:25,759
Speaker 1: I think a lot of folks have seen the pie chart,

789
00:34:26,080 --> 00:34:28,360
Speaker 1: you know, like you can google it what composed or

790
00:34:28,440 --> 00:34:31,800
Speaker 1: like what makes up a great credit score? And you

791
00:34:31,840 --> 00:34:34,480
Speaker 1: can see the different percentages right like on time payments,

792
00:34:35,560 --> 00:34:38,040
Speaker 1: making sure you don't utilize all of the credit that's

793
00:34:38,040 --> 00:34:39,920
Speaker 1: available to you. I think that's like sixty sixty five

794
00:34:39,920 --> 00:34:43,000
Speaker 1: percent of what consists those two factors commind yeah, yeah,

795
00:34:43,080 --> 00:34:45,960
Speaker 1: what consists of of a good credit score? But bottom line,

796
00:34:46,120 --> 00:34:49,080
Speaker 1: I feel like, like the basics of having healthy credit

797
00:34:49,360 --> 00:34:51,200
Speaker 1: and using a credit card well can be summed up.

798
00:34:51,440 --> 00:34:53,239
Speaker 1: And make sure you got a credit card, right, so

799
00:34:53,280 --> 00:34:54,560
Speaker 1: most folks out there already have one, but if you

800
00:34:54,600 --> 00:34:57,280
Speaker 1: don't get one, because that's going to ensure a longer

801
00:34:57,640 --> 00:34:59,480
Speaker 1: length of credit history. It'll make sure that you get

802
00:34:59,520 --> 00:35:03,080
Speaker 1: this ball. Use it a little bit, don't overuse it, right,

803
00:35:03,120 --> 00:35:05,560
Speaker 1: so you want to keep that utilization right low, but

804
00:35:05,719 --> 00:35:08,759
Speaker 1: then make sure you pay that stupid bill all time

805
00:35:08,840 --> 00:35:10,480
Speaker 1: and then full every single month. Like if you just

806
00:35:10,560 --> 00:35:12,759
Speaker 1: do those like follow those simple steps like that will

807
00:35:13,120 --> 00:35:16,840
Speaker 1: ensure that you are again getting the vast majority of

808
00:35:16,920 --> 00:35:20,480
Speaker 1: the way there without over complicating things. Yeah, and if

809
00:35:20,520 --> 00:35:21,880
Speaker 1: you are one of those people out there listening and

810
00:35:21,920 --> 00:35:23,719
Speaker 1: you're like, but my credit stinks, and you just said

811
00:35:23,719 --> 00:35:25,640
Speaker 1: I probably can't get some of those credit cards that

812
00:35:25,800 --> 00:35:28,040
Speaker 1: you say are great, Well, we'll actually in just a

813
00:35:28,080 --> 00:35:29,800
Speaker 1: few minutes to give our thoughts on like where you

814
00:35:29,840 --> 00:35:32,719
Speaker 1: should turn in order to get a decent credit card

815
00:35:32,880 --> 00:35:35,160
Speaker 1: or you know, just basically tools that will help you

816
00:35:35,640 --> 00:35:38,120
Speaker 1: build your credit apart from having to get a credit card.

817
00:35:38,200 --> 00:35:40,160
Speaker 1: We'll kind of talk about both, but first let's talk

818
00:35:40,160 --> 00:35:43,239
Speaker 1: about mitigating the downsides, because you know, repairing your credit score,

819
00:35:43,360 --> 00:35:45,320
Speaker 1: getting it up to stuff. It's actually easier than a

820
00:35:45,360 --> 00:35:47,960
Speaker 1: lot of people think, just because the system is shrouded

821
00:35:48,160 --> 00:35:51,120
Speaker 1: in mystery and it's hard to know you're there's so

822
00:35:51,160 --> 00:35:53,080
Speaker 1: many numbers swirling around out there. When it comes to

823
00:35:53,120 --> 00:35:55,960
Speaker 1: your credit score, well, it's easy to think that it

824
00:35:56,040 --> 00:35:58,960
Speaker 1: must take some professional right to help you get your

825
00:35:59,040 --> 00:36:01,399
Speaker 1: credit score back in shape if you're in the five

826
00:36:01,520 --> 00:36:05,200
Speaker 1: or six hundreds. No, not necessarily. Just like it took

827
00:36:05,239 --> 00:36:07,759
Speaker 1: a while though to get your credit into disrepair, it's

828
00:36:07,800 --> 00:36:09,759
Speaker 1: gonna take a little while to clean up. There is

829
00:36:09,880 --> 00:36:12,560
Speaker 1: no easy button, although a lot of people will actually

830
00:36:12,600 --> 00:36:15,120
Speaker 1: try to make it sound like there is, specifically people

831
00:36:15,160 --> 00:36:17,880
Speaker 1: who work for different credit repair companies. That is an

832
00:36:17,960 --> 00:36:22,160
Speaker 1: industry which has attracted billions of dollars from Americans every

833
00:36:22,239 --> 00:36:24,080
Speaker 1: year that they spend on credit repair. Crazy.

834
00:36:24,200 --> 00:36:26,360
Speaker 2: It's crazy, and it's sad because a lot of that

835
00:36:26,520 --> 00:36:29,760
Speaker 2: money is poorly spent and a lot of those credit

836
00:36:29,840 --> 00:36:33,920
Speaker 2: repair firms are preying on people who have bad credit.

837
00:36:34,280 --> 00:36:37,120
Speaker 1: And yeah, the folks who are in the most vulnerable position. Yeah,

838
00:36:37,320 --> 00:36:39,319
Speaker 1: like I think I saw it. Like the estimates are

839
00:36:39,400 --> 00:36:43,120
Speaker 1: that that industry raked in something like over four billion dollars,

840
00:36:43,680 --> 00:36:46,080
Speaker 1: which is crazy, Like, just think if all of that

841
00:36:46,200 --> 00:36:49,440
Speaker 1: money and let's just say that that's an estimate that's

842
00:36:49,480 --> 00:36:52,520
Speaker 1: off by two billion, imagine two billion dollars, which is

843
00:36:52,560 --> 00:36:54,520
Speaker 1: still a ton of money that was instead going to

844
00:36:54,680 --> 00:36:58,960
Speaker 1: actual balances rather than quick fixes, which is essentially what

845
00:36:59,000 --> 00:36:59,400
Speaker 1: folks are.

846
00:37:00,320 --> 00:37:02,160
Speaker 2: Yeah, well, and a lot of those credit repair firms

847
00:37:02,160 --> 00:37:04,239
Speaker 2: and this should be a blinking red light that'll lasts

848
00:37:04,280 --> 00:37:07,040
Speaker 2: for payment upfront, and they'll say listen, yeah, for four

849
00:37:07,120 --> 00:37:09,919
Speaker 2: hundred dollars or nine hundred dollars, we we can start

850
00:37:10,000 --> 00:37:12,560
Speaker 2: to work on fixing your credit score. And the lost

851
00:37:12,600 --> 00:37:14,560
Speaker 2: thing plain that they can get negative stuff removed from

852
00:37:14,560 --> 00:37:17,120
Speaker 2: your credit file, which is not true. And you know,

853
00:37:17,239 --> 00:37:19,759
Speaker 2: if there is inaccurate information on your credit report, by

854
00:37:19,800 --> 00:37:21,240
Speaker 2: the way, which we said, you can get an annual

855
00:37:21,280 --> 00:37:24,400
Speaker 2: credit report dot com for free. You can dispute those

856
00:37:24,440 --> 00:37:27,200
Speaker 2: items yourself for free. You do not need to pay

857
00:37:27,280 --> 00:37:30,600
Speaker 2: anyone to do this on your behalf. And so yeah,

858
00:37:30,840 --> 00:37:32,680
Speaker 2: it's also important to mention Matt, you actually have more

859
00:37:32,719 --> 00:37:37,120
Speaker 2: power because debt collectors can ignore letters from companies, but

860
00:37:37,239 --> 00:37:40,160
Speaker 2: they can't ignore a letter written by you according to

861
00:37:40,239 --> 00:37:42,120
Speaker 2: federal law. And So this is another thing where you

862
00:37:42,320 --> 00:37:44,600
Speaker 2: have more power in your own hands than these credit

863
00:37:44,640 --> 00:37:47,719
Speaker 2: repair firms have or can wheeld on your behalf. But

864
00:37:47,800 --> 00:37:49,640
Speaker 2: let's kind of discuss some of those next steps to

865
00:37:49,960 --> 00:37:53,239
Speaker 2: mitigate the downsides of erect score and to improve your

866
00:37:53,280 --> 00:37:55,719
Speaker 2: score without getting scammed by one of these companies that

867
00:37:56,239 --> 00:37:56,920
Speaker 2: sucks a big one.

868
00:37:57,080 --> 00:38:01,040
Speaker 1: Yeah, I mean yeah, basically you've got to see, yeah,

869
00:38:01,040 --> 00:38:02,759
Speaker 1: you're in the position where you have a bad credit score,

870
00:38:02,920 --> 00:38:05,080
Speaker 1: but you're trying to still figure out, like what is

871
00:38:05,120 --> 00:38:07,440
Speaker 1: it that you can do in order to pay the

872
00:38:07,520 --> 00:38:10,600
Speaker 1: least amount of money. Well, when you are looking for

873
00:38:10,680 --> 00:38:14,440
Speaker 1: a loan, shopping around really matters. It's not just your

874
00:38:14,480 --> 00:38:17,239
Speaker 1: credit score that determines the different loan terms out there.

875
00:38:17,360 --> 00:38:19,759
Speaker 1: Where it is you borrow from is going to have

876
00:38:19,840 --> 00:38:22,600
Speaker 1: a huge impact. Credit unions are the best place to

877
00:38:22,680 --> 00:38:25,680
Speaker 1: go for borrowing most of the time, and that's especially

878
00:38:25,760 --> 00:38:28,719
Speaker 1: true if your credit score isn't great. I know there

879
00:38:28,760 --> 00:38:30,440
Speaker 1: are some folks might write and be like, well, no,

880
00:38:30,560 --> 00:38:32,960
Speaker 1: actually I was able to get a better rate from

881
00:38:33,000 --> 00:38:36,520
Speaker 1: a bank or actually right straight from the dealership. Then

882
00:38:36,520 --> 00:38:38,680
Speaker 1: there might be some cases of that, but credit unions,

883
00:38:38,800 --> 00:38:40,279
Speaker 1: because of the way that they're set up. They are

884
00:38:40,360 --> 00:38:43,400
Speaker 1: often the best place for borrowers to turn. But on

885
00:38:43,480 --> 00:38:46,279
Speaker 1: top of including credit unions in your search, just make

886
00:38:46,320 --> 00:38:48,880
Speaker 1: sure that you get multiple quotes. Don't just get a

887
00:38:48,960 --> 00:38:51,560
Speaker 1: quote and be like, all right, did my homework. No

888
00:38:51,960 --> 00:38:54,839
Speaker 1: time to sign on the dotted line. And because that's

889
00:38:54,880 --> 00:38:57,239
Speaker 1: what I'm excited about, I'm excited about that that new ride,

890
00:38:57,320 --> 00:39:00,000
Speaker 1: or I'm excited about getting this house, get multiple quotes.

891
00:39:00,080 --> 00:39:03,600
Speaker 1: Stats show that specifically on home loans, individuals who get

892
00:39:03,600 --> 00:39:07,839
Speaker 1: at least three quotes save thousands of dollars more than

893
00:39:07,960 --> 00:39:10,200
Speaker 1: the folks who just go directly to a single lender.

894
00:39:10,800 --> 00:39:13,000
Speaker 1: I think this is one of the instances where the

895
00:39:13,120 --> 00:39:15,600
Speaker 1: means to an end. In this case, the credit score

896
00:39:15,719 --> 00:39:18,160
Speaker 1: is the means. The end is life. The things that

897
00:39:18,239 --> 00:39:21,880
Speaker 1: you are able to do in life actually supplants the

898
00:39:22,320 --> 00:39:25,640
Speaker 1: true end and becomes this false end in and of itself, right,

899
00:39:25,840 --> 00:39:28,120
Speaker 1: And folks are just so preoccupied, like they've been on

900
00:39:28,200 --> 00:39:32,520
Speaker 1: this path of rehabilitating their score and it's the precious

901
00:39:32,680 --> 00:39:36,240
Speaker 1: and that was a terrible gollum voice, but they're afraid

902
00:39:36,280 --> 00:39:38,840
Speaker 1: to actually put it to use, and they're afraid to

903
00:39:38,840 --> 00:39:40,400
Speaker 1: get ulip quotes because they're like, well, I don't want

904
00:39:40,400 --> 00:39:41,640
Speaker 1: to every time I get a quote, it's going to

905
00:39:41,719 --> 00:39:44,120
Speaker 1: dig my score, my precious score. Well, first of all,

906
00:39:44,160 --> 00:39:46,320
Speaker 1: that's not true because usually there's a two week window.

907
00:39:46,480 --> 00:39:48,239
Speaker 1: Yeah yeah, and if you do it within a short

908
00:39:48,239 --> 00:39:51,760
Speaker 1: period of time, it doesn't count as multiple inquiries. But secondly,

909
00:39:51,800 --> 00:39:53,920
Speaker 1: even if you wait, there's some stats out there too

910
00:39:53,960 --> 00:39:54,880
Speaker 1: that say as long as you do it within a

911
00:39:54,920 --> 00:39:56,879
Speaker 1: thirty day window. Let's say you wait sixty days before

912
00:39:56,880 --> 00:39:59,319
Speaker 1: you get another quote. First of all, that's a long

913
00:39:59,400 --> 00:40:02,480
Speaker 1: time that you you're shopping. You can probably tighten that

914
00:40:02,560 --> 00:40:04,600
Speaker 1: up a little bit. But even if you are waiting

915
00:40:04,640 --> 00:40:06,360
Speaker 1: a really long time and it does ding your score,

916
00:40:06,640 --> 00:40:09,359
Speaker 1: the whole point of getting your credit score to where

917
00:40:09,600 --> 00:40:11,320
Speaker 1: it was was in order to pay less money. And

918
00:40:11,360 --> 00:40:13,879
Speaker 1: so make sure that you are not skipping this really

919
00:40:13,920 --> 00:40:15,840
Speaker 1: important step that is going to actually allow you to

920
00:40:15,880 --> 00:40:18,160
Speaker 1: pay less money, even if it does ding your score

921
00:40:18,320 --> 00:40:20,359
Speaker 1: just a little bit for a short duration. Yeah.

922
00:40:20,400 --> 00:40:21,960
Speaker 2: So, even if your score is not where you want

923
00:40:21,960 --> 00:40:24,040
Speaker 2: it to be, not where it ideally should be, it

924
00:40:24,160 --> 00:40:26,000
Speaker 2: doesn't mean that you just have to take it on

925
00:40:26,080 --> 00:40:29,320
Speaker 2: the chin always in forever, you can shop around and

926
00:40:29,400 --> 00:40:32,720
Speaker 2: get better terms. Even if your credit score isn't above

927
00:40:32,760 --> 00:40:35,160
Speaker 2: that seven forty level where we'd like to see it.

928
00:40:35,400 --> 00:40:37,919
Speaker 2: The same thing goes with we talked about higher insurance rates, Matt.

929
00:40:38,040 --> 00:40:40,719
Speaker 2: You should shop with multiple different insurance companies no matter

930
00:40:40,800 --> 00:40:43,240
Speaker 2: what your credit score is, and even though on average

931
00:40:43,239 --> 00:40:45,200
Speaker 2: you're going to pay more, you might find that some

932
00:40:45,360 --> 00:40:48,080
Speaker 2: insurance companies are more lenient, don't care at don't factor

933
00:40:48,120 --> 00:40:50,759
Speaker 2: that credit score into their models nearly as much as

934
00:40:50,800 --> 00:40:52,640
Speaker 2: some of the other ones. So it's important to shop

935
00:40:52,680 --> 00:40:55,840
Speaker 2: around on all levels if your credit score is in

936
00:40:55,920 --> 00:40:58,560
Speaker 2: the dumps. But let's talk about something else. Map that

937
00:40:58,600 --> 00:41:00,319
Speaker 2: people can do with bad credit scores. They and save

938
00:41:00,360 --> 00:41:03,080
Speaker 2: more cash for any purchase that they're planning to make. Right,

939
00:41:03,280 --> 00:41:05,320
Speaker 2: being able to put down a bigger down payment on

940
00:41:05,400 --> 00:41:07,279
Speaker 2: a home that's going to lead to better terms and

941
00:41:07,360 --> 00:41:09,560
Speaker 2: often a better interest rate as well. Like your credit

942
00:41:09,640 --> 00:41:11,480
Speaker 2: score matters, but it's not the only thing that matters.

943
00:41:11,520 --> 00:41:15,480
Speaker 2: Do you have and it matters even less if you're

944
00:41:15,640 --> 00:41:17,880
Speaker 2: buying a car and you choose to buy a cheaper

945
00:41:17,960 --> 00:41:19,840
Speaker 2: car because you got the cash to cover that payment,

946
00:41:19,960 --> 00:41:21,879
Speaker 2: whereas you have to finance the newer one that costs

947
00:41:21,880 --> 00:41:24,200
Speaker 2: more money or even better, you just have enough cash

948
00:41:24,320 --> 00:41:27,279
Speaker 2: to actually buy the newer one. Yeah, yeah, without having

949
00:41:27,320 --> 00:41:28,040
Speaker 2: to finance it at all.

950
00:41:28,160 --> 00:41:31,640
Speaker 1: Right, exactly, that is like more cash means that your

951
00:41:31,680 --> 00:41:33,479
Speaker 1: credit score matters less. It's just true.

952
00:41:33,760 --> 00:41:37,040
Speaker 2: And so if you have the combo of bad credit

953
00:41:37,200 --> 00:41:40,680
Speaker 2: and no cash, that becomes an even more precarious situation

954
00:41:40,760 --> 00:41:43,920
Speaker 2: to begin. And something else I think that matters as

955
00:41:44,000 --> 00:41:47,719
Speaker 2: well is looking towards to get shorter term loans, because

956
00:41:47,800 --> 00:41:50,080
Speaker 2: lenders are going to assume that you're less likely to

957
00:41:50,160 --> 00:41:52,279
Speaker 2: default when you're looking at a forty eight month loan

958
00:41:52,400 --> 00:41:53,880
Speaker 2: versus one that you plan to pay off over like

959
00:41:54,000 --> 00:41:56,759
Speaker 2: ninety six months, right, So having more money to put

960
00:41:56,800 --> 00:42:00,279
Speaker 2: down but also choosing a shorter timeline, yeah, going to

961
00:42:00,320 --> 00:42:02,400
Speaker 2: make your payments higher, but it'll get you that lower rate,

962
00:42:02,480 --> 00:42:04,960
Speaker 2: allowing you to pay less in interest over the life

963
00:42:05,000 --> 00:42:07,080
Speaker 2: and a loan, and it's going to ensure that you're

964
00:42:07,120 --> 00:42:09,440
Speaker 2: out of debt more quickly. Don't bite off more than

965
00:42:09,480 --> 00:42:12,839
Speaker 2: you can chew, and borrowing less. In general, paying cash

966
00:42:12,880 --> 00:42:14,719
Speaker 2: for a car, like we just said, for instances is

967
00:42:14,760 --> 00:42:17,719
Speaker 2: the best way to go in order to avoid financing altogether.

968
00:42:17,800 --> 00:42:20,239
Speaker 2: But if you do have to finance things, shorter term

969
00:42:20,320 --> 00:42:24,000
Speaker 2: loans are going to be offer you better interest rates.

970
00:42:24,080 --> 00:42:27,239
Speaker 2: Even if your credit score is you know, let's say

971
00:42:27,280 --> 00:42:30,000
Speaker 2: six't eighty six ninety seven hundred, it's not where you

972
00:42:30,080 --> 00:42:32,759
Speaker 2: want it to be. But the longer loan you choose,

973
00:42:33,160 --> 00:42:34,960
Speaker 2: the more you're going to pay an interest overall, and

974
00:42:34,960 --> 00:42:36,200
Speaker 2: the higher that interest rate's going to be.

975
00:42:36,320 --> 00:42:38,960
Speaker 1: Totally yeah, this is one of those instances, like everyone

976
00:42:39,160 --> 00:42:41,359
Speaker 1: has heard the term like cash is king, and that's

977
00:42:41,400 --> 00:42:43,920
Speaker 1: totally true when it comes to getting a deal, because

978
00:42:44,280 --> 00:42:49,399
Speaker 1: nothing beats the actual cash, whether it's somebody who's looking

979
00:42:49,480 --> 00:42:52,000
Speaker 1: to sell and they have the slam duck decision of

980
00:42:52,080 --> 00:42:53,960
Speaker 1: knowing that finance is going to come through because oh,

981
00:42:54,040 --> 00:42:56,239
Speaker 1: there it is. There's the actual cash, or whether it's

982
00:42:56,280 --> 00:42:58,719
Speaker 1: your ability to pay you as a consumer to pay

983
00:42:58,800 --> 00:43:01,279
Speaker 1: less in interest. But again, and don't take this to

984
00:43:01,360 --> 00:43:02,960
Speaker 1: the far extreme and think, okay, well why don't I

985
00:43:03,000 --> 00:43:04,960
Speaker 1: just pay cash for my house? Again, look at the

986
00:43:05,000 --> 00:43:07,440
Speaker 1: whole picture and what are some of the alternatives. What

987
00:43:07,600 --> 00:43:10,120
Speaker 1: else can you do with that money instead of saving

988
00:43:10,200 --> 00:43:12,600
Speaker 1: it up for I don't know, twenty years or however

989
00:43:12,640 --> 00:43:14,520
Speaker 1: long it would take you to pay cash for an

990
00:43:14,560 --> 00:43:16,719
Speaker 1: actual home. But basically, at the end of the day,

991
00:43:16,760 --> 00:43:20,080
Speaker 1: we just want you to have a healthy credit score.

992
00:43:20,160 --> 00:43:21,520
Speaker 1: We want you to be doing the right things. We

993
00:43:21,560 --> 00:43:23,840
Speaker 1: want you to take a healthy approach to just generally

994
00:43:23,880 --> 00:43:25,520
Speaker 1: boosting your credit score. We don't want you to have

995
00:43:25,600 --> 00:43:29,239
Speaker 1: to rely on some of these different strategies constantly, like, yes,

996
00:43:29,320 --> 00:43:32,359
Speaker 1: they are important to implement, but ultimately just have a good,

997
00:43:32,520 --> 00:43:35,640
Speaker 1: healthy credit score. And so we kind of touched on

998
00:43:35,640 --> 00:43:37,360
Speaker 1: this second again when we're kind of talking about some

999
00:43:37,360 --> 00:43:39,640
Speaker 1: of the basics of what go into making up a

1000
00:43:39,760 --> 00:43:43,239
Speaker 1: credit score. But by increasing the amounts of credit that

1001
00:43:43,280 --> 00:43:46,560
Speaker 1: you have available to you that and not utilizing it,

1002
00:43:46,600 --> 00:43:50,920
Speaker 1: of course, that's going to drastically increase your credit score. Basically,

1003
00:43:50,920 --> 00:43:53,399
Speaker 1: you want to increase the number of positive tradelines. That's

1004
00:43:53,440 --> 00:43:56,200
Speaker 1: what the different bureaus call it. They want you to

1005
00:43:56,280 --> 00:43:58,200
Speaker 1: have access to a bunch of these different lines of

1006
00:43:58,239 --> 00:44:02,880
Speaker 1: credit while using them and basically minimally, and it reflects

1007
00:44:02,920 --> 00:44:05,120
Speaker 1: well on your score to have a few different credit cards, right,

1008
00:44:05,320 --> 00:44:07,960
Speaker 1: to have a loan or two, and to make sure

1009
00:44:07,960 --> 00:44:09,880
Speaker 1: that you're paying everything on time and in full. But

1010
00:44:10,000 --> 00:44:13,080
Speaker 1: specifically on those revolving lines of credit, we want you

1011
00:44:13,200 --> 00:44:15,560
Speaker 1: to use those sparingly. So for instance, if you've got

1012
00:44:15,600 --> 00:44:17,479
Speaker 1: a card that's got a limit, of twenty thousand dollars

1013
00:44:18,280 --> 00:44:21,360
Speaker 1: only spending up to something like two thousand dollars. That

1014
00:44:21,719 --> 00:44:25,359
Speaker 1: is a great approach where you're not basically overleveraged, where

1015
00:44:25,360 --> 00:44:27,000
Speaker 1: you don't have too much outstanding debt or.

1016
00:44:27,120 --> 00:44:29,640
Speaker 2: I think typically if you're using less than thirty percent

1017
00:44:29,680 --> 00:44:31,520
Speaker 2: of your available credit, that's the thing you want to

1018
00:44:31,520 --> 00:44:33,200
Speaker 2: shoot for. But even less can help.

1019
00:44:33,280 --> 00:44:34,040
Speaker 1: Less is even better.

1020
00:44:34,120 --> 00:44:36,800
Speaker 2: Even more, and you want to pay specific attention to

1021
00:44:37,120 --> 00:44:39,920
Speaker 2: your utilization rate, the number of lines of credit that

1022
00:44:39,960 --> 00:44:43,160
Speaker 2: you have, especially if your credit score is not doing

1023
00:44:43,239 --> 00:44:46,200
Speaker 2: so hot, well, you might need to overtime. And we'll

1024
00:44:46,239 --> 00:44:48,800
Speaker 2: talk about this. How do you increase the number and

1025
00:44:48,840 --> 00:44:51,400
Speaker 2: the variety of debt that you have in order to

1026
00:44:51,440 --> 00:44:54,560
Speaker 2: improve your credit score without taking on more debt than

1027
00:44:54,600 --> 00:44:56,800
Speaker 2: you need to. That can be a difficult proposition, and

1028
00:44:56,880 --> 00:44:59,600
Speaker 2: so one way to do that is through a company

1029
00:44:59,680 --> 00:45:02,560
Speaker 2: called self dot Inc. It used to be called self Lender,

1030
00:45:02,800 --> 00:45:06,560
Speaker 2: and they've got this really really cool sort of business

1031
00:45:06,640 --> 00:45:09,279
Speaker 2: model where you're actually making a loan to yourself, but

1032
00:45:09,360 --> 00:45:13,440
Speaker 2: you're doing it through self which is just it's hard

1033
00:45:13,480 --> 00:45:14,799
Speaker 2: to I don't know what their name being that.

1034
00:45:14,880 --> 00:45:17,040
Speaker 1: It's even talking about it like an idiot.

1035
00:45:17,200 --> 00:45:19,680
Speaker 2: Yes, yeah, that's why the name self lender like it

1036
00:45:19,800 --> 00:45:22,440
Speaker 2: made it. It made it easier to talk about it irea.

1037
00:45:22,640 --> 00:45:27,840
Speaker 2: But so, yeah, basically, you're you're giving self cash and

1038
00:45:28,000 --> 00:45:31,880
Speaker 2: then and then what happens is you're making payments towards

1039
00:45:32,080 --> 00:45:34,840
Speaker 2: this debt that you've taken on that making payments to

1040
00:45:35,000 --> 00:45:38,960
Speaker 2: self right on your behalf. And so it's a bit confusing.

1041
00:45:39,000 --> 00:45:41,680
Speaker 2: But here's the thing with most people who go through

1042
00:45:42,239 --> 00:45:44,400
Speaker 2: self dot ink, you know, and make themselves alone in

1043
00:45:44,480 --> 00:45:47,200
Speaker 2: this way, and then self reports to the credit bureaus

1044
00:45:47,200 --> 00:45:49,560
Speaker 2: on your behalf, they see a credit score bump of

1045
00:45:49,640 --> 00:45:52,239
Speaker 2: something like thirty two points, which is meaningful. If you're

1046
00:45:52,239 --> 00:45:54,879
Speaker 2: at six ninety and you just went up to seven

1047
00:45:54,960 --> 00:45:57,759
Speaker 2: twenty two, that's a big old bump. And so that

1048
00:45:57,960 --> 00:46:00,360
Speaker 2: is one important thing to try. Secure credit cards can

1049
00:46:00,400 --> 00:46:02,680
Speaker 2: be a massive help to and you can typically get

1050
00:46:02,680 --> 00:46:04,239
Speaker 2: them via your credit union. You can get them other

1051
00:46:04,320 --> 00:46:08,399
Speaker 2: places too. Those are basically another type of installment loan,

1052
00:46:08,440 --> 00:46:10,680
Speaker 2: where a secure card is where you say, listen, give

1053
00:46:10,719 --> 00:46:13,040
Speaker 2: me a credit card with an eight hundred dollars limit.

1054
00:46:13,360 --> 00:46:15,120
Speaker 2: I'll give you the bank or the credit union eight

1055
00:46:15,200 --> 00:46:17,719
Speaker 2: hundred bucks. And then after seven or eight months of

1056
00:46:17,800 --> 00:46:20,360
Speaker 2: on time payments, you get a full you get upgraded

1057
00:46:20,360 --> 00:46:23,640
Speaker 2: to a full fledged credit card, and so after using

1058
00:46:23,680 --> 00:46:26,920
Speaker 2: that credit card responsibly, now you've improved your credit score too.

1059
00:46:27,239 --> 00:46:29,680
Speaker 2: There's also something called the pedal card, which will link

1060
00:46:29,680 --> 00:46:31,000
Speaker 2: to in the show notes that can be helpful for

1061
00:46:31,040 --> 00:46:33,640
Speaker 2: people with bad credit to boost their credit score. That

1062
00:46:33,800 --> 00:46:36,560
Speaker 2: doesn't they don't rely on your credit score in order

1063
00:46:36,600 --> 00:46:38,680
Speaker 2: to give you a line of credit. But the rise

1064
00:46:38,920 --> 00:46:41,680
Speaker 2: in secured credit cards and the use of companies like

1065
00:46:41,960 --> 00:46:46,320
Speaker 2: self doing this self generated lending essentially are all in

1066
00:46:46,400 --> 00:46:48,960
Speaker 2: response to the problem of credit repair services that we

1067
00:46:49,000 --> 00:46:51,680
Speaker 2: talked about earlier, just people trying to scam you out

1068
00:46:51,680 --> 00:46:54,960
Speaker 2: of money in order to improve your credit score. Usually

1069
00:46:55,000 --> 00:46:57,200
Speaker 2: they run away with the cash without doing much or

1070
00:46:57,280 --> 00:47:00,360
Speaker 2: anything to help you improve your score. These are legit, intimate,

1071
00:47:00,560 --> 00:47:03,239
Speaker 2: in expensive ways for you to increase your credit score

1072
00:47:03,600 --> 00:47:05,040
Speaker 2: through tried and true methods.

1073
00:47:05,320 --> 00:47:07,960
Speaker 1: Yeah they are legit, like they will actually increase your

1074
00:47:08,080 --> 00:47:10,120
Speaker 1: credit score. But the goal is to never have to

1075
00:47:10,239 --> 00:47:12,040
Speaker 1: use these companies to begin with. The goal like the

1076
00:47:12,160 --> 00:47:14,920
Speaker 1: response like, the reason these secured cards exist is because

1077
00:47:15,560 --> 00:47:18,080
Speaker 1: you have someone out there has made poor decisions when

1078
00:47:18,120 --> 00:47:20,120
Speaker 1: it comes to how it is at they handle credit.

1079
00:47:20,160 --> 00:47:22,600
Speaker 1: But especially if you are listening and maybe you don't

1080
00:47:22,600 --> 00:47:25,399
Speaker 1: even have a credit card and it's just sitting there.

1081
00:47:25,760 --> 00:47:28,839
Speaker 1: It's pristine. It's like freshly fallen snow, and no one

1082
00:47:28,880 --> 00:47:32,000
Speaker 1: has walked out there, and it's perfect, not perfect from

1083
00:47:32,440 --> 00:47:34,279
Speaker 1: you've got a perfect score standpoint, but perfect, and that

1084
00:47:34,360 --> 00:47:38,000
Speaker 1: it's just blank, untrammeled. You have the ability to from

1085
00:47:38,160 --> 00:47:40,600
Speaker 1: day one right now, to start handling credit in a

1086
00:47:40,680 --> 00:47:44,080
Speaker 1: responsible way and to slowly increase the credit that's available

1087
00:47:44,120 --> 00:47:46,200
Speaker 1: to you and to boost that score because it's going

1088
00:47:46,280 --> 00:47:49,239
Speaker 1: to have these long lasting impacts. And let's be honest.

1089
00:47:49,320 --> 00:47:52,800
Speaker 2: You mentioned the average credit score for gen Z millennials

1090
00:47:52,880 --> 00:47:55,640
Speaker 2: is six seventy nine. Those people in our likelihood, if

1091
00:47:55,640 --> 00:47:57,600
Speaker 2: you're right at that point, you're not going to need

1092
00:47:57,680 --> 00:47:59,920
Speaker 2: to turn to a secured credit card. You just need

1093
00:48:00,120 --> 00:48:01,719
Speaker 2: to start doing those basics better.

1094
00:48:02,000 --> 00:48:04,719
Speaker 1: Right. It's very unsexyah for most people. What it is

1095
00:48:04,760 --> 00:48:05,239
Speaker 1: that they need to do.

1096
00:48:05,360 --> 00:48:07,400
Speaker 2: These services are really for people who are down in

1097
00:48:07,440 --> 00:48:10,080
Speaker 2: the dumps with credit and they need a big leg

1098
00:48:10,200 --> 00:48:12,719
Speaker 2: up and they need more drastic measures and so these

1099
00:48:13,080 --> 00:48:14,960
Speaker 2: this is one way to do that, right, is to

1100
00:48:15,160 --> 00:48:17,239
Speaker 2: turn to somebody like self, or to turn to a

1101
00:48:17,280 --> 00:48:19,600
Speaker 2: secure credit card. But for most people out there, it's

1102
00:48:19,640 --> 00:48:22,120
Speaker 2: just doing those basic things of never not paying anything

1103
00:48:22,520 --> 00:48:25,640
Speaker 2: on time and to reduce your utilization, and to make

1104
00:48:25,640 --> 00:48:27,839
Speaker 2: sure that you're tending to your credit score and you're

1105
00:48:27,880 --> 00:48:30,759
Speaker 2: watching it go up month after month over time, not

1106
00:48:30,880 --> 00:48:33,440
Speaker 2: seeing perfection. Of course, like we said, and basically like

1107
00:48:34,480 --> 00:48:36,799
Speaker 2: your credit as we've discussed on this episode, is going

1108
00:48:36,880 --> 00:48:39,120
Speaker 2: to impact you in a bunch of ways. Good credit

1109
00:48:39,280 --> 00:48:40,680
Speaker 2: is going to give you a leg up in the

1110
00:48:40,719 --> 00:48:44,040
Speaker 2: personal finance world. Bad credit will make life a whole

1111
00:48:44,120 --> 00:48:46,720
Speaker 2: lot harder. And we know it's a little bit confusing,

1112
00:48:46,800 --> 00:48:48,799
Speaker 2: but your credit score matters in a lot of ways

1113
00:48:48,840 --> 00:48:49,520
Speaker 2: in the real world.

1114
00:48:49,800 --> 00:48:50,640
Speaker 1: So tend to it.

1115
00:48:50,920 --> 00:48:52,480
Speaker 2: Tend to it like you would like a garden. You

1116
00:48:52,560 --> 00:48:53,759
Speaker 2: got to pull the weeds and all that kind of

1117
00:48:53,800 --> 00:48:57,040
Speaker 2: stuff right, ensure that your credit score is not hampering

1118
00:48:57,080 --> 00:48:59,120
Speaker 2: your ability to make the financial progress you want to make.

1119
00:48:59,360 --> 00:49:01,560
Speaker 2: And by the way, if you have credit questions about

1120
00:49:01,600 --> 00:49:03,840
Speaker 2: credit scores, feel free to holler at us on we

1121
00:49:03,920 --> 00:49:06,520
Speaker 2: can take your questions on an upcoming As Kind of

1122
00:49:06,560 --> 00:49:08,680
Speaker 2: Money episode. We know there's a lot of confusion and

1123
00:49:08,680 --> 00:49:10,640
Speaker 2: a lot of specific questions that people are probably gonna

1124
00:49:10,640 --> 00:49:12,920
Speaker 2: have in light of this episode, So reach out to us,

1125
00:49:13,040 --> 00:49:15,200
Speaker 2: send us your voice memo, and hopefully we can take

1126
00:49:15,200 --> 00:49:15,920
Speaker 2: it on the show soon.

1127
00:49:16,080 --> 00:49:17,839
Speaker 1: That's right, man, All right, let's get to the beer

1128
00:49:17,960 --> 00:49:20,920
Speaker 1: quickly here that you and I enjoyed today, the refreshing

1129
00:49:20,960 --> 00:49:24,200
Speaker 1: beer that we both enjoyed, which was a great fruit

1130
00:49:24,239 --> 00:49:27,600
Speaker 1: rattler by Halfway Crooks beer. And by the way, I

1131
00:49:27,680 --> 00:49:29,680
Speaker 1: want to mention real quick, We've said this before on

1132
00:49:29,719 --> 00:49:32,600
Speaker 1: the show, but Halfway Crooks they have the absolute best merch.

1133
00:49:32,960 --> 00:49:36,040
Speaker 1: And while I was up in North Carolina at a

1134
00:49:36,120 --> 00:49:38,160
Speaker 1: different brewery, there was a guy there and he had

1135
00:49:38,200 --> 00:49:40,480
Speaker 1: a Halfway Crooks sure on and I was like, oh,

1136
00:49:40,840 --> 00:49:43,080
Speaker 1: which is our I mean, we moved, but that was

1137
00:49:43,120 --> 00:49:47,320
Speaker 1: our local neighborhood brewery. Yeah. And I don't know, they're

1138
00:49:47,360 --> 00:49:50,239
Speaker 1: the best. They're marketing team or I don't know. I

1139
00:49:50,280 --> 00:49:52,680
Speaker 1: think it's just a couple guys, but they do such

1140
00:49:52,840 --> 00:49:55,239
Speaker 1: an awesome job. And I'm glad though that you and

1141
00:49:55,320 --> 00:49:58,480
Speaker 1: I got to enjoy this actual beer. What were your

1142
00:49:58,520 --> 00:49:58,960
Speaker 1: thoughts on it?

1143
00:49:59,160 --> 00:50:02,040
Speaker 2: So it was the delicious and I love me a

1144
00:50:02,120 --> 00:50:05,440
Speaker 2: good rattler, grapefruit rattler in particular, and this one is

1145
00:50:05,960 --> 00:50:08,240
Speaker 2: because it's a craft instead of like a mass produced

1146
00:50:08,280 --> 00:50:09,120
Speaker 2: one it had.

1147
00:50:09,239 --> 00:50:12,439
Speaker 1: It just tastes more like grapefruit. Maaste more real. Yeah,

1148
00:50:13,160 --> 00:50:14,799
Speaker 1: as much as we love it, it tastes more real

1149
00:50:14,880 --> 00:50:15,719
Speaker 1: than Stegel, I do.

1150
00:50:15,920 --> 00:50:20,040
Speaker 2: I do, Like I love Stegel's sweet, but it was

1151
00:50:20,080 --> 00:50:21,600
Speaker 2: way less sweet and more grapefruit tasting.

1152
00:50:21,719 --> 00:50:24,960
Speaker 1: Yes, those bitter notes, yes, exactly, that's what it's got

1153
00:50:25,000 --> 00:50:27,040
Speaker 1: going on with it, whereas the Stegel is just it

1154
00:50:27,280 --> 00:50:31,200
Speaker 1: Literally it's like a minute made. It's almost as if

1155
00:50:31,200 --> 00:50:33,640
Speaker 1: you get that beer in a carton. Yeah, in the

1156
00:50:33,719 --> 00:50:36,279
Speaker 1: court carton where you unscrew the little screw and pour

1157
00:50:36,320 --> 00:50:38,279
Speaker 1: the beer. Like that's how sweet it reminds me like

1158
00:50:38,320 --> 00:50:39,880
Speaker 1: I don't. I don't, by the way, know if I

1159
00:50:39,920 --> 00:50:41,919
Speaker 1: can enjoy that beer because it's so sweet, I would

1160
00:50:41,960 --> 00:50:44,279
Speaker 1: love to compare it side by side with halfway Crooks.

1161
00:50:44,280 --> 00:50:46,560
Speaker 1: That'd be fun, And we talked about it in the past,

1162
00:50:46,880 --> 00:50:47,720
Speaker 1: but not on this episode.

1163
00:50:47,760 --> 00:50:51,080
Speaker 2: How rattlers are essentially half juice and half are typically

1164
00:50:51,160 --> 00:50:54,560
Speaker 2: right or half beer, and so yeah this I think

1165
00:50:54,560 --> 00:50:57,720
Speaker 2: they were originally created for cyclists in Germany to stop

1166
00:50:57,880 --> 00:51:00,800
Speaker 2: get something like thirst quenching. But also you know, you

1167
00:51:00,840 --> 00:51:02,799
Speaker 2: don't want a little beer to drink too much, though

1168
00:51:03,280 --> 00:51:05,680
Speaker 2: like if it was full beer, It's like, well, how

1169
00:51:05,800 --> 00:51:09,840
Speaker 2: is that gonna lend cause me to be a better bicyclist?

1170
00:51:10,000 --> 00:51:10,120
Speaker 1: Right?

1171
00:51:10,520 --> 00:51:12,600
Speaker 2: So these are typically somewhere between two and four percent

1172
00:51:13,280 --> 00:51:17,160
Speaker 2: in abb which is which cool, and they're just delightful, delightful.

1173
00:51:17,239 --> 00:51:19,279
Speaker 1: We're gonna get some of these before we get to

1174
00:51:19,320 --> 00:51:21,600
Speaker 1: the beach, that's for sure. But this is absolutely the

1175
00:51:21,680 --> 00:51:23,400
Speaker 1: kind of beer that you enjoy on the beach. If

1176
00:51:23,400 --> 00:51:25,560
Speaker 1: you've never tried a rattler before and you like something

1177
00:51:25,600 --> 00:51:27,520
Speaker 1: that's juicy, but also you're a big fan of beer,

1178
00:51:27,600 --> 00:51:29,719
Speaker 1: make sure to check out a rattler for sure. All Right, Matt,

1179
00:51:29,719 --> 00:51:31,680
Speaker 1: that's gonna do it for this episode. Folks can find

1180
00:51:31,680 --> 00:51:33,959
Speaker 1: show notes links to some of the stuff we mentioned

1181
00:51:34,040 --> 00:51:36,239
Speaker 1: up on the website at howtomoney dot com. That's right,

1182
00:51:36,320 --> 00:51:38,920
Speaker 1: that's gonna be it for this one, buddy. Until next time,

1183
00:51:39,200 --> 00:51:41,160
Speaker 1: Best Friends Out, Best Friends Out.