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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: and sure they definitely can be, but understanding a professionals

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Speaker 1: routine shows us how they achieve their success little by little,

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Speaker 1: day after day. It's like banking with P and C Bank.

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Speaker 1: It might seem boring to safe plan and make calculated

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Speaker 1: decisions with your bank, but keeping your money boring is

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Speaker 1: what helps you live or more happily fulfilled life. P

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Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

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Speaker 1: Boring since eighteen sixty five is a service mark of

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Speaker 1: the PNC Financial Service Group, Inc. P and C Bank

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Speaker 1: National Association Member FDIC Erness What's Up? You ever walk

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Speaker 1: into a small business and everything just works like the

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Speaker 1: checkout is fast, the receipts are digital, tipping is a breeze,

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Speaker 1: and you're out the door before the line even builds.

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Speaker 1: Odds are they're using Square? We love supporting business is

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Speaker 1: that run on Square because it just feels seamless. Whether

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Speaker 1: it's a local coffee shop, a vendor at a pop

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Speaker 1: up market, or even one of our merch partners. Square

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Speaker 1: makes it easy for them to take payments, manage inventory,

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Speaker 1: and run their business with confidence, all from one simple system.

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Speaker 1: If you're a business owner or even just thinking about

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Speaker 1: launching something soon, Square is hands down one of the

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Speaker 1: best tools out there to help you start, run and grow.

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Speaker 1: It's not just about payments, it's about giving you time

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Speaker 1: back so you can focus on what matters most ready.

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Speaker 1: To see how Square can transform your business, visit Square

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Speaker 1: dot com backslash go backslash eyl to learn more that

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Speaker 1: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.

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Speaker 1: Let's Square handle the back end so you can keep

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Speaker 1: pushing your vision forward. All right.

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Speaker 2: So, then the next section is like my favorite section

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Speaker 2: because it's about credit cards.

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Speaker 3: Right.

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Speaker 2: So this section, which is thirty percent of your credit profile,

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Speaker 2: is called the amounts old section. Right. Some people refer

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Speaker 2: to it, and I refer to it sometimes as credit utilization.

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Speaker 2: But I wanted to make sure that you guys knew

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Speaker 2: it was amounts old because there is more that goes

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Speaker 2: into this category than just your utilization on your credit cards. Right,

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Speaker 2: So your credit the factors that go into this section

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Speaker 2: and will determine how many points you're getting, is your

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Speaker 2: credit utilization ratio, so basically how much credit you're using

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Speaker 2: versus the amount of credit that you have available to you,

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Speaker 2: right on all of your credit cards. Another thing that

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Speaker 2: goes into it is the number of accounts with balances.

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Speaker 3: This is a big one.

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Speaker 2: The next three that I'm going to refer to. These

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Speaker 2: are going to be the small things that keeps most

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Speaker 2: people out of ever gaining access to the top level

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Speaker 2: of offers from a company.

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Speaker 3: Right.

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Speaker 2: So, in other words, if American Express has their tip,

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Speaker 2: if they have a credit card and the ceiling for

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Speaker 2: that credit card is a thousand dollars, right, you have

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Speaker 2: to have certain qualifications in order to ever gain access

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Speaker 2: to that eighty K line because most of their customers

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Speaker 2: are only getting access to maybe twenty thousand, thirty thousand,

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Speaker 2: forty thousand, Right, So, if you are wanting to actually

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Speaker 2: increase your baring power and increase your capital, you know,

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Speaker 2: amongst your entire credit profile, these are going to be

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Speaker 2: the small things that makes the biggest difference, right, the

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Speaker 2: number of accounts with balances, Right, So, the number of

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Speaker 2: accounts with outstanding balances. This means any charge offs that

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Speaker 2: you have, any charge it doesn't matter how old, if

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Speaker 2: it's within If it's still in your credit report, it

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Speaker 2: means it's under seven years old. Any charge offs that

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Speaker 2: has an outstanding balance automatically affects your credit utilization. Right,

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Speaker 2: most people only think that their credit cards affect your

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Speaker 2: disc section.

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Speaker 3: But it's not right. It does, it does.

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Speaker 2: It does make up about eighty percent of it, like

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Speaker 2: the utilization percentage that you are reporting on a month

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Speaker 2: to mon basis to the credit buias, it makes up

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Speaker 2: eighty percent of this section.

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Speaker 3: However, the last twenty percent.

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Speaker 2: Will will go to how many out how many outstanding

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Speaker 2: charge offs do you have?

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Speaker 3: You should always look to.

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Speaker 2: Settle charge offs if you can, or get a paid

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Speaker 2: delete we'll we'll discuss that next week.

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Speaker 3: But those are affecting your credit utilization, so it.

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Speaker 2: Doesn't matter how responsible you're being with your credit card,

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Speaker 2: you will still have to weigh it against this outstanding

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Speaker 2: balance until that is satisfied.

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Speaker 3: Right, and then another thing is the proportion of loan

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Speaker 3: balances to the original loan amounts.

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Speaker 2: Now, all this means is if you have accounts on

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Speaker 2: your credit report, installment accounts or aka loans, if you

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Speaker 2: have ever gotten a defernment that messes up that specific point. Right,

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Speaker 2: So if you have a car and you agree to

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Speaker 2: have to take out a loan for let's say forty

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Speaker 2: eight months, right, whatever, something happens along the lines and

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Speaker 2: you get maybe two three deferments which extends the loan

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Speaker 2: to fifty one months, fifty one, fifty two months. Yeah,

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Speaker 2: so it extends your original loan term which was supposed

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Speaker 2: to be forty eight to fifty two.

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Speaker 3: Right.

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Speaker 2: That immediately will impact your amounts old section because now

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Speaker 2: you're overdue. Right.

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Speaker 3: The only exception to defer payments.

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Speaker 2: Are student loans, so they are the only accounts on

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Speaker 2: our credit reports that you pretty much can get as

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Speaker 2: many deferments as you You can get as many deferments

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Speaker 2: as you want, it will not impact this section, which

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Speaker 2: goes to my next point. Make sure that all of

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Speaker 2: your student loan bound or I'm sorry, I need everyone

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Speaker 2: to look at all their student loan accounts, right.

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Speaker 3: Make sure that they say educational loans or student loans.

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Speaker 4: Right.

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Speaker 2: They will say installment credit because that's the account type

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Speaker 2: that they are. But if they do not specifically notate

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Speaker 2: that it is a student loan or an education loan,

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Speaker 2: then your credit utilization is being impacted heavily, and you

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Speaker 2: may not even realize it. Right, A great way to

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Speaker 2: tell if your student loans are not reporting accurately or

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Speaker 2: you know, reporting as I just stated, if you have

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Speaker 2: ever been denied.

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Speaker 3: For credit you apply for a credit card or whatever.

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Speaker 2: And one of the denial reasons was the proportion of

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Speaker 2: your loan balances are too high, or if it says

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Speaker 2: and each company will word it a little differently, but

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Speaker 2: what it what it'll what the basis will say is

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Speaker 2: the balances on your installment accounts are too high, or

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Speaker 2: it'll say, uh, it'll say along the lines of what

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Speaker 2: I just said. Right, that's one of the clear cut

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Speaker 2: signs that your student loans are reporting as regular installment loans.

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Speaker 3: As opposed to educational loans.

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Speaker 2: Because it absolutely matters because of this, because of what

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Speaker 2: I just showed you, because that impacts your utilization.

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Speaker 3: It's looking like you.

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Speaker 2: Have a large larger utilization then you're saying, because this,

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Speaker 2: the difference doesn't show on the credit in your credit score, right,

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Speaker 2: but it does show on your barring power when you

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Speaker 2: are doing credit applications or if lenders are looking at

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Speaker 2: your credit report. All right, okay, so what is credit utilization?

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Speaker 2: Credit utilization is calculated as the percentage of credit that

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Speaker 2: you are currently using compared to the total available revolving

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Speaker 2: credit that you have. So, if you have three credit

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Speaker 2: cards with one hundred dollars on each of them, if

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Speaker 2: you have a limit of one hundred dollars, that means

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Speaker 2: you have a three hundred dollars limit total. Right. If

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Speaker 2: you use one hundred and fifty of those amongst the

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Speaker 2: three cards however you want, that means that you would

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Speaker 2: be your utilization would be fifty percent. Okay, So a

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Speaker 2: quick way to calculate your utilization, you take all of

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Speaker 2: your balances, add them up on all of your active

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Speaker 2: credit cards, and then you divide it by your total limits, right,

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Speaker 2: and that'll get you what's called your aggregate utilization, right,

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Speaker 2: which is it's that standard ratio that makes up your utilization. Okay, Now,

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Speaker 2: what is an ideal utilization? An ideal utilization is always, always, always, always,

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Speaker 2: always always going to be between one and three percent.

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Speaker 2: One in three percent, And I know that may seem low,

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Speaker 2: extremely low to a lot.

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Speaker 3: Of people, right, especially if you're used.

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Speaker 2: To abiding by the industry standard, which is thirty percent.

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Speaker 2: As you can see on the chart that I'm showing

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Speaker 2: you guys, thirty percent is extremely high. Right, So if

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Speaker 2: you actually are wanting to improve your credit score, or

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Speaker 2: if your credit score has just been stagnant, and you

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Speaker 2: you like, what's going on? Why why is my credit

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Speaker 2: not improving? I've been paying my accounts on time, my

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Speaker 2: car on time, my credit card on time, and I'm

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Speaker 2: just my credits card is just stuck, right, I can

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Speaker 2: I can never increase it, right in a steadily paced

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Speaker 2: Usually it's because it's because of utilization.

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Speaker 3: It's because you've probably.

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Speaker 2: Been reporting twenty percent, thirty percent or you know even higher. Right,

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Speaker 2: thirty percent is our industry standard, So it's what's usually recommended,

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Speaker 2: is what's usually taught, and that's because it's like that

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Speaker 2: safe number.

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Speaker 3: It's essentially like getting a C in school. So a

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Speaker 3: C is not going to fail.

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Speaker 2: A C is not going to cause you to fail

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Speaker 2: a class, but it also will not cause you to be,

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Speaker 2: you know.

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Speaker 3: At the top of the class. Right.

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Speaker 2: So if you if we're if we're looking at this

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Speaker 2: in the lens of our credit reports, if we are

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Speaker 2: trying to increase our credit score, a C or AKAA,

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Speaker 2: thirty percent is not going to allow that to happen, right,

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Speaker 2: you would absolutely have to report a one to three

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Speaker 2: percent utili utilization, which is a sure sure way to

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Speaker 2: increase your score, or at the very highest, between one

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Speaker 2: and nine percent. Right, So, to to make it super specific,

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Speaker 2: the only time that I am concerned about reporting a

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Speaker 2: one to three percent utilization is if I'm actively shopping

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Speaker 2: for something a car, a home, applying for a credit card,

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Speaker 2: or something like that. Right, That's when I'll always lure

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Speaker 2: my balances to between one and three the month prior

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Speaker 2: to doing an application. That way, I'm able to maximize

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Speaker 2: my score, get all of those points that I can

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Speaker 2: out of credit utilization, get a small little booster or

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Speaker 2: a boost in my credit score before I do my application. Right,

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Speaker 2: you should always before you apply for somebod you should

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Speaker 2: always know at least the billing cycle before, right, So

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Speaker 2: a month in advance, you should be planning for any

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Speaker 2: applications that you're going to do next month, simply because

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Speaker 2: it takes a full billing cycle for your utilization to update,

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Speaker 2: and if you don't wait for them to update, they'll

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Speaker 2: just pull your your your old utilization or your old

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Speaker 2: credit report.

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Speaker 4: An illegal alam from Guatemala charged with raping a in Massachusetts.

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Speaker 4: An MS thirteen gang member from Al Salvador accused of

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Speaker 4: murdering a Texas man of Venezuelan charged with filming and

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Speaker 4: selling child pornography in Michigan. These are just some of

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Speaker 4: the heinous migrant criminals caught because of President Donald J.

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Speaker 4: Trump's leadership. I'm Christy Noman, the United States Secretary of

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Speaker 4: Homeland Security. Under President Trump, attempted illegal border crossings are

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Speaker 4: at the lowest levels ever recorded, and over one hundred

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Speaker 4: thousand illegal aliens have been arrested. If you are here illegally,

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Speaker 4: your next you will be fined nearly one thousand dollars

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Speaker 4: a day, imprisoned, and deported. You will never return. But

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Speaker 4: if you register using our CBP home app and leave now,

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Speaker 4: you could be allowed to return legally. Do what's right.

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Speaker 4: Leave now. Under President Trump, America's laws, border and families

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Speaker 4: will be protected.

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Speaker 1: Sponsored by the United States Department of Homeland Security,