1 00:00:01,280 --> 00:00:03,520 Speaker 1: This episode is brought to you by P and C Bank. 2 00:00:03,920 --> 00:00:06,680 Speaker 1: A lot of people think podcasts about work are boring, 3 00:00:06,880 --> 00:00:10,719 Speaker 1: and sure they definitely can be, but understanding a professionals 4 00:00:10,800 --> 00:00:14,080 Speaker 1: routine shows us how they achieve their success little by little, 5 00:00:14,440 --> 00:00:18,079 Speaker 1: day after day. It's like banking with P and C Bank. 6 00:00:18,560 --> 00:00:21,360 Speaker 1: It might seem boring to save, plan and make calculated 7 00:00:21,400 --> 00:00:24,479 Speaker 1: decisions with your bank, but keeping your money boring is 8 00:00:24,520 --> 00:00:27,840 Speaker 1: what helps you live or more happily fulfilled life. P 9 00:00:27,960 --> 00:00:32,800 Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 10 00:00:32,840 --> 00:00:35,479 Speaker 1: Boring since eighteen sixty five is a service mark of 11 00:00:35,520 --> 00:00:38,760 Speaker 1: the PNC Financial Service Group, Inc. P and C Bank 12 00:00:39,159 --> 00:00:44,040 Speaker 1: National Association Member FDIC. This is the other part because 13 00:00:44,040 --> 00:00:47,159 Speaker 1: we talk about the things that credit can affect. Right, 14 00:00:47,200 --> 00:00:51,240 Speaker 1: obviously your score, but it could affect loans and sometimes employment, 15 00:00:51,600 --> 00:00:54,959 Speaker 1: but it also could affect relationships. This is important, right 16 00:00:55,000 --> 00:00:57,120 Speaker 1: because you said you need to have maybe three to 17 00:00:57,200 --> 00:01:00,319 Speaker 1: four items on your credit report, and some people when 18 00:01:00,320 --> 00:01:03,720 Speaker 1: they're in relationships. We've seen I'm going to get a car, 19 00:01:04,360 --> 00:01:06,600 Speaker 1: I didn't get approved. Can you co sign? 20 00:01:06,959 --> 00:01:09,720 Speaker 2: I love this? Yeah, asking a good question. This is 21 00:01:09,800 --> 00:01:10,200 Speaker 2: this is why. 22 00:01:10,280 --> 00:01:14,280 Speaker 1: Yeah, we've been known to do. So talk about that. 23 00:01:14,640 --> 00:01:18,240 Speaker 1: I mean, yes, co signing could be less. 24 00:01:19,200 --> 00:01:20,800 Speaker 3: So one of the things that I do in my 25 00:01:20,880 --> 00:01:24,880 Speaker 3: day to day is I'm a credit specialist specializing in 26 00:01:24,920 --> 00:01:27,080 Speaker 3: mortgage scoring. Right, so I deal with a lot of 27 00:01:27,080 --> 00:01:29,200 Speaker 3: people who can't see the clothes on their home, who 28 00:01:29,200 --> 00:01:32,080 Speaker 3: need a few more points to to get obtain a 29 00:01:32,080 --> 00:01:35,000 Speaker 3: home loan. Now, this is one of the things that 30 00:01:35,080 --> 00:01:37,840 Speaker 3: I see so much, and I and we need to 31 00:01:37,920 --> 00:01:41,039 Speaker 3: change it. So when it comes to married couple spouses, 32 00:01:41,520 --> 00:01:47,200 Speaker 3: make sure that the accounts are evenly distributed, right, So 33 00:01:47,240 --> 00:01:50,840 Speaker 3: make sure make sure that one spouse does not have 34 00:01:50,960 --> 00:01:55,320 Speaker 3: all of the is not the primary account holder account 35 00:01:55,360 --> 00:01:57,640 Speaker 3: owner of all of the accounts, and then the other 36 00:01:57,680 --> 00:01:59,840 Speaker 3: spouse usually like to stay at home spouse is just. 37 00:02:00,120 --> 00:02:01,400 Speaker 2: Signed on all of the accounts. 38 00:02:01,640 --> 00:02:04,280 Speaker 3: There is something within the Credit Card Act of two 39 00:02:04,280 --> 00:02:07,480 Speaker 3: thousand and nine that says on every credit card application, 40 00:02:07,600 --> 00:02:10,360 Speaker 3: legally you can use what's called household income. So if 41 00:02:10,360 --> 00:02:12,320 Speaker 3: you're a spouse, if you have a spouse that maybe 42 00:02:12,480 --> 00:02:14,360 Speaker 3: does not make a lot of money or you know, 43 00:02:14,400 --> 00:02:17,160 Speaker 3: stays at home, as opposed to them just being a 44 00:02:17,200 --> 00:02:19,800 Speaker 3: co signer and an authorized user on all of spouse's 45 00:02:19,840 --> 00:02:23,480 Speaker 3: one accounts, they can apply using the income, they can 46 00:02:23,480 --> 00:02:27,600 Speaker 3: apply using their spouse's income. So make sure that they 47 00:02:27,680 --> 00:02:31,359 Speaker 3: still have credit cards, home loan or not home loans, 48 00:02:31,400 --> 00:02:34,920 Speaker 3: but loans and installments in their name as owner. Because 49 00:02:34,960 --> 00:02:37,919 Speaker 3: when you only have co sign accounts authorized user accounts, 50 00:02:38,160 --> 00:02:41,040 Speaker 3: then you're never going to unleash your true borring power 51 00:02:41,080 --> 00:02:43,520 Speaker 3: because it's based on someone else, regardless of who it is. 52 00:02:44,200 --> 00:02:46,480 Speaker 3: So make sure, yes, I'm glad you asked that question, 53 00:02:46,520 --> 00:02:50,360 Speaker 3: because that man that happens so often, Like it'll just 54 00:02:50,480 --> 00:02:52,880 Speaker 3: it'll be one person has great credit and then one 55 00:02:52,880 --> 00:02:56,560 Speaker 3: person has subpart credit because they don't have any they 56 00:02:56,560 --> 00:02:57,560 Speaker 3: haven't built any credit. 57 00:02:57,840 --> 00:03:03,160 Speaker 1: And that's if you're married. Yeah you broke up, good luck? 58 00:03:03,520 --> 00:03:07,520 Speaker 3: Oh well yeah, to speak on that co signing, no no, no, no, 59 00:03:08,160 --> 00:03:10,920 Speaker 3: I won't co sign. I'm not sign nobody because that 60 00:03:10,960 --> 00:03:14,840 Speaker 3: affects you. Like if you co sign for someone and 61 00:03:14,880 --> 00:03:17,800 Speaker 3: you can have amazing credit, if they choose to not 62 00:03:17,840 --> 00:03:20,720 Speaker 3: pay it or you know, run up your card, you 63 00:03:20,720 --> 00:03:23,440 Speaker 3: are responsible for that when it comes to co sign 64 00:03:23,440 --> 00:03:26,760 Speaker 3: and when it comes to authorized users, authorized users, they 65 00:03:26,800 --> 00:03:30,120 Speaker 3: don't have any legal binding to that account, so they 66 00:03:30,120 --> 00:03:32,320 Speaker 3: can run it up. They can spend every dollar, and 67 00:03:32,440 --> 00:03:34,880 Speaker 3: it still is going to be your fault when you 68 00:03:34,920 --> 00:03:38,200 Speaker 3: co sign for someone that if that account goes derogatory, 69 00:03:38,240 --> 00:03:40,600 Speaker 3: it's going to affect both persons credit report. 70 00:03:41,280 --> 00:03:42,280 Speaker 2: You can't do nothing about it. 71 00:03:43,920 --> 00:03:46,520 Speaker 4: So what about credit consolidation? Is that always the most 72 00:03:46,520 --> 00:03:49,160 Speaker 4: beneficial way to kind of manish. 73 00:03:48,960 --> 00:03:52,720 Speaker 3: Multiple No, it's not that that chips away at your 74 00:03:52,760 --> 00:03:58,839 Speaker 3: credit age drastically. So now it like when it comes 75 00:03:58,840 --> 00:04:01,360 Speaker 3: to like student loans and things of that nature, sometimes 76 00:04:01,360 --> 00:04:03,560 Speaker 3: that it's worth it, right, But when it comes to 77 00:04:03,680 --> 00:04:08,080 Speaker 3: just consolidating your everyday credit cards, I don't always recommend it, 78 00:04:08,120 --> 00:04:11,680 Speaker 3: unless like you're just trying to prevent bankruptcy or something 79 00:04:11,760 --> 00:04:14,640 Speaker 3: like major like that. But consolidation I'm not the biggest 80 00:04:14,680 --> 00:04:18,919 Speaker 3: fan of, just because it doesn't really aid to you 81 00:04:19,000 --> 00:04:20,920 Speaker 3: improving your borring power. 82 00:04:21,240 --> 00:04:23,279 Speaker 4: So if people will have bad credit and they're trying 83 00:04:23,320 --> 00:04:27,200 Speaker 4: to improve their credit, what's the steps to actually go 84 00:04:27,440 --> 00:04:32,240 Speaker 4: from you know, having issues bad credit to having better credit. 85 00:04:32,480 --> 00:04:35,520 Speaker 3: Yes, the good thing about having bad credit is you 86 00:04:35,560 --> 00:04:37,240 Speaker 3: have a lot of points that you can obtain, Like 87 00:04:37,240 --> 00:04:39,000 Speaker 3: the lower your credit score is, the more points you 88 00:04:39,240 --> 00:04:43,279 Speaker 3: can grab. Right, So my favorite thing when helping someone 89 00:04:43,320 --> 00:04:44,920 Speaker 3: with their credit is when they do have a low 90 00:04:44,960 --> 00:04:48,400 Speaker 3: credit score because it's so easy to get those points. 91 00:04:48,440 --> 00:04:52,039 Speaker 3: You just have to understand that obtaining those points will 92 00:04:52,080 --> 00:04:54,479 Speaker 3: not come from just repairing your credit or disputing your 93 00:04:54,480 --> 00:04:55,000 Speaker 3: credit record. 94 00:04:55,040 --> 00:04:55,680 Speaker 2: It's going to. 95 00:04:55,560 --> 00:04:58,920 Speaker 3: Come from building credit. That is where the points are 96 00:04:58,960 --> 00:05:03,039 Speaker 3: released from. Right, So making sure if you have bad credit, 97 00:05:03,080 --> 00:05:06,960 Speaker 3: if you have collections, charge offs, whatever, there is no 98 00:05:07,279 --> 00:05:10,279 Speaker 3: nothing that will help you other than building credit. Making 99 00:05:10,320 --> 00:05:14,120 Speaker 3: sure that you have those those four accounts to credit cards, 100 00:05:14,160 --> 00:05:17,320 Speaker 3: to installments, one short term, one long term. Making sure 101 00:05:17,440 --> 00:05:19,839 Speaker 3: you do not pay off that installment early, the short 102 00:05:19,880 --> 00:05:25,320 Speaker 3: term installment specifically because you want to build credit. Right. Also, 103 00:05:25,880 --> 00:05:29,120 Speaker 3: if you are if you do have collections, challenging those right, 104 00:05:29,200 --> 00:05:32,039 Speaker 3: if they get removed, great, But if they do not 105 00:05:32,080 --> 00:05:34,760 Speaker 3: get removed, you still can have good credit with collections 106 00:05:35,360 --> 00:05:37,760 Speaker 3: because the older a collection gets, the less impact that 107 00:05:37,760 --> 00:05:40,360 Speaker 3: it has on your score. The more credit that you've 108 00:05:40,440 --> 00:05:45,520 Speaker 3: established since the collection will help you sort of undo 109 00:05:46,000 --> 00:05:50,000 Speaker 3: bad credit. Right. I think I had It was one 110 00:05:50,000 --> 00:05:51,800 Speaker 3: account that I could not get removed, and again that 111 00:05:52,279 --> 00:05:55,599 Speaker 3: did not stop me from getting credit cards or buying 112 00:05:55,600 --> 00:05:57,920 Speaker 3: a home and things of that nature because I had 113 00:05:58,040 --> 00:06:02,800 Speaker 3: established credit that spoke to my financial habits, my current 114 00:06:02,800 --> 00:06:04,440 Speaker 3: financial habits. 115 00:06:03,880 --> 00:06:05,359 Speaker 2: More than those old collections. 116 00:06:05,440 --> 00:06:05,680 Speaker 1: Right. 117 00:06:06,520 --> 00:06:09,400 Speaker 2: But yeah, so making sure you have your building credit. 118 00:06:09,440 --> 00:06:10,960 Speaker 2: That's what people will say. 119 00:06:11,360 --> 00:06:12,680 Speaker 3: I have bad credits, so I'm just not going to 120 00:06:12,720 --> 00:06:14,680 Speaker 3: touch my credit for seven years. It's the worst thing 121 00:06:14,720 --> 00:06:17,080 Speaker 3: you can do because that's seven years of wasted time 122 00:06:17,480 --> 00:06:20,400 Speaker 3: where you can build credit. You can come back from collections. 123 00:06:20,440 --> 00:06:24,800 Speaker 3: I've never I've never, and I have helped thousands. I've 124 00:06:24,800 --> 00:06:27,000 Speaker 3: looked at thousands of credit reports. I have never seen 125 00:06:27,040 --> 00:06:30,280 Speaker 3: a credit report that is irrepaarable ever, and I haven't 126 00:06:30,279 --> 00:06:31,600 Speaker 3: seen three hundred credit scores. 127 00:06:31,960 --> 00:06:33,720 Speaker 2: That's you know, that's the lowest credit score you can get. 128 00:06:33,720 --> 00:06:36,320 Speaker 3: The lowest score that I've seen fyc Go score was 129 00:06:36,320 --> 00:06:40,039 Speaker 3: a three to eleven, the lowest, right, No, it was 130 00:06:40,080 --> 00:06:42,119 Speaker 3: so the lowes score you can get is three hundred. 131 00:06:42,560 --> 00:06:43,960 Speaker 2: Yeah, the low score you can get three hundred. The 132 00:06:44,040 --> 00:06:46,039 Speaker 2: highest you can get is a fifty. I've seen a 133 00:06:46,080 --> 00:06:47,159 Speaker 2: three to eleven credit score. 134 00:06:48,320 --> 00:06:50,960 Speaker 3: People think that because they have bad credit, they you know, 135 00:06:51,120 --> 00:06:52,719 Speaker 3: they're just doomed for the next seven years. 136 00:06:52,720 --> 00:06:53,280 Speaker 2: It's not true. 137 00:06:53,520 --> 00:06:56,440 Speaker 3: Build credit and you will get credit points when you 138 00:06:56,440 --> 00:06:59,599 Speaker 3: add your credit card and the first month, the first 139 00:06:59,640 --> 00:07:04,240 Speaker 3: month that you get a credit card, Please, everybody who's 140 00:07:04,279 --> 00:07:06,520 Speaker 3: watching this, if this is your first credit card, do 141 00:07:06,600 --> 00:07:09,200 Speaker 3: not allow that first month to be wasted on reporting 142 00:07:09,200 --> 00:07:11,880 Speaker 3: a zero dollar utilization because a lot of people get 143 00:07:11,880 --> 00:07:13,520 Speaker 3: their credit cards and they're scared to use it, so 144 00:07:14,440 --> 00:07:16,560 Speaker 3: they'll just like whatever, like keep it in their pocket 145 00:07:16,600 --> 00:07:19,200 Speaker 3: or keep it in their wallet. When you activate that card, 146 00:07:19,760 --> 00:07:22,680 Speaker 3: you typically are going to be mid cycle, depending on 147 00:07:22,680 --> 00:07:25,200 Speaker 3: how long your bank took to mail it to you. 148 00:07:25,240 --> 00:07:27,840 Speaker 3: Go get some gas, Go buy some chips, Go do 149 00:07:27,920 --> 00:07:30,480 Speaker 3: something so that you have at least one to three 150 00:07:30,520 --> 00:07:33,320 Speaker 3: percent reporting that first time. The reason why it's important 151 00:07:33,320 --> 00:07:35,960 Speaker 3: the first time is because when your credit card hits 152 00:07:35,960 --> 00:07:38,400 Speaker 3: your credit report for the first time, you. 153 00:07:38,360 --> 00:07:40,440 Speaker 2: Open yourself up to utilization because if you. 154 00:07:40,440 --> 00:07:42,360 Speaker 3: Don't have any credit cards, you're not getting a single 155 00:07:42,400 --> 00:07:44,800 Speaker 3: point out of the one hundred and sixty five points 156 00:07:44,800 --> 00:07:48,400 Speaker 3: that are allotted for you credit utilization. So when you 157 00:07:48,400 --> 00:07:50,320 Speaker 3: first get your credit card, make sure that you report 158 00:07:50,360 --> 00:07:53,320 Speaker 3: a very small, a very small balance. So the second 159 00:07:53,400 --> 00:07:55,280 Speaker 3: that that credit card hits your credit report, which is 160 00:07:55,360 --> 00:07:58,200 Speaker 3: usually like sixty days after you get it, you'll see 161 00:07:58,200 --> 00:08:00,600 Speaker 3: you should see a large increase in your credit Go 162 00:08:00,640 --> 00:08:01,040 Speaker 3: buy your. 163 00:08:01,000 --> 00:08:04,240 Speaker 1: Pair of sneakers. Yell so earners, what's up? 164 00:08:04,280 --> 00:08:04,480 Speaker 3: Look? 165 00:08:04,520 --> 00:08:07,680 Speaker 1: This episode is brought to you by Square Banking. One 166 00:08:07,680 --> 00:08:10,720 Speaker 1: of the things we love most is seeing neighborhood businesses 167 00:08:10,800 --> 00:08:14,040 Speaker 1: level up. This this West Indian spired writing our community 168 00:08:14,080 --> 00:08:17,360 Speaker 1: that started with a small takeout counter. 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