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Speaker 1: National Association Member FDIC. This is the other part because
Speaker 1: we talk about the things that credit can affect. Right,
Speaker 1: obviously your score, but it could affect loans and sometimes employment,
Speaker 1: but it also could affect relationships. This is important, right
Speaker 1: because you said you need to have maybe three to
Speaker 1: four items on your credit report, and some people when
Speaker 1: they're in relationships. We've seen I'm going to get a car,
Speaker 1: I didn't get approved. Can you co sign?
Speaker 2: I love this? Yeah, asking a good question. This is
Speaker 2: this is why.
Speaker 1: Yeah, we've been known to do. So talk about that.
Speaker 1: I mean, yes, co signing could be less.
Speaker 3: So one of the things that I do in my
Speaker 3: day to day is I'm a credit specialist specializing in
Speaker 3: mortgage scoring. Right, so I deal with a lot of
Speaker 3: people who can't see the clothes on their home, who
Speaker 3: need a few more points to to get obtain a
Speaker 3: home loan. Now, this is one of the things that
Speaker 3: I see so much, and I and we need to
Speaker 3: change it. So when it comes to married couple spouses,
Speaker 3: make sure that the accounts are evenly distributed, right, So
Speaker 3: make sure make sure that one spouse does not have
Speaker 3: all of the is not the primary account holder account
Speaker 3: owner of all of the accounts, and then the other
Speaker 3: spouse usually like to stay at home spouse is just.
Speaker 2: Signed on all of the accounts.
Speaker 3: There is something within the Credit Card Act of two
Speaker 3: thousand and nine that says on every credit card application,
Speaker 3: legally you can use what's called household income. So if
Speaker 3: you're a spouse, if you have a spouse that maybe
Speaker 3: does not make a lot of money or you know,
Speaker 3: stays at home, as opposed to them just being a
Speaker 3: co signer and an authorized user on all of spouse's
Speaker 3: one accounts, they can apply using the income, they can
Speaker 3: apply using their spouse's income. So make sure that they
Speaker 3: still have credit cards, home loan or not home loans,
Speaker 3: but loans and installments in their name as owner. Because
Speaker 3: when you only have co sign accounts authorized user accounts,
Speaker 3: then you're never going to unleash your true borring power
Speaker 3: because it's based on someone else, regardless of who it is.
Speaker 3: So make sure, yes, I'm glad you asked that question,
Speaker 3: because that man that happens so often, Like it'll just
Speaker 3: it'll be one person has great credit and then one
Speaker 3: person has subpart credit because they don't have any they
Speaker 3: haven't built any credit.
Speaker 1: And that's if you're married. Yeah you broke up, good luck?
Speaker 3: Oh well yeah, to speak on that co signing, no no, no, no,
Speaker 3: I won't co sign. I'm not sign nobody because that
Speaker 3: affects you. Like if you co sign for someone and
Speaker 3: you can have amazing credit, if they choose to not
Speaker 3: pay it or you know, run up your card, you
Speaker 3: are responsible for that when it comes to co sign
Speaker 3: and when it comes to authorized users, authorized users, they
Speaker 3: don't have any legal binding to that account, so they
Speaker 3: can run it up. They can spend every dollar, and
Speaker 3: it still is going to be your fault when you
Speaker 3: co sign for someone that if that account goes derogatory,
Speaker 3: it's going to affect both persons credit report.
Speaker 2: You can't do nothing about it.
Speaker 4: So what about credit consolidation? Is that always the most
Speaker 4: beneficial way to kind of manish.
Speaker 3: Multiple No, it's not that that chips away at your
Speaker 3: credit age drastically. So now it like when it comes
Speaker 3: to like student loans and things of that nature, sometimes
Speaker 3: that it's worth it, right, But when it comes to
Speaker 3: just consolidating your everyday credit cards, I don't always recommend it,
Speaker 3: unless like you're just trying to prevent bankruptcy or something
Speaker 3: like major like that. But consolidation I'm not the biggest
Speaker 3: fan of, just because it doesn't really aid to you
Speaker 3: improving your borring power.
Speaker 4: So if people will have bad credit and they're trying
Speaker 4: to improve their credit, what's the steps to actually go
Speaker 4: from you know, having issues bad credit to having better credit.
Speaker 3: Yes, the good thing about having bad credit is you
Speaker 3: have a lot of points that you can obtain, Like
Speaker 3: the lower your credit score is, the more points you
Speaker 3: can grab. Right, So my favorite thing when helping someone
Speaker 3: with their credit is when they do have a low
Speaker 3: credit score because it's so easy to get those points.
Speaker 3: You just have to understand that obtaining those points will
Speaker 3: not come from just repairing your credit or disputing your
Speaker 3: credit record.
Speaker 2: It's going to.
Speaker 3: Come from building credit. That is where the points are
Speaker 3: released from. Right, So making sure if you have bad credit,
Speaker 3: if you have collections, charge offs, whatever, there is no
Speaker 3: nothing that will help you other than building credit. Making
Speaker 3: sure that you have those those four accounts to credit cards,
Speaker 3: to installments, one short term, one long term. Making sure
Speaker 3: you do not pay off that installment early, the short
Speaker 3: term installment specifically because you want to build credit. Right. Also,
Speaker 3: if you are if you do have collections, challenging those right,
Speaker 3: if they get removed, great, But if they do not
Speaker 3: get removed, you still can have good credit with collections
Speaker 3: because the older a collection gets, the less impact that
Speaker 3: it has on your score. The more credit that you've
Speaker 3: established since the collection will help you sort of undo
Speaker 3: bad credit. Right. I think I had It was one
Speaker 3: account that I could not get removed, and again that
Speaker 3: did not stop me from getting credit cards or buying
Speaker 3: a home and things of that nature because I had
Speaker 3: established credit that spoke to my financial habits, my current
Speaker 3: financial habits.
Speaker 2: More than those old collections.
Speaker 1: Right.
Speaker 2: But yeah, so making sure you have your building credit.
Speaker 2: That's what people will say.
Speaker 3: I have bad credits, so I'm just not going to
Speaker 3: touch my credit for seven years. It's the worst thing
Speaker 3: you can do because that's seven years of wasted time
Speaker 3: where you can build credit. You can come back from collections.
Speaker 3: I've never I've never, and I have helped thousands. I've
Speaker 3: looked at thousands of credit reports. I have never seen
Speaker 3: a credit report that is irrepaarable ever, and I haven't
Speaker 3: seen three hundred credit scores.
Speaker 2: That's you know, that's the lowest credit score you can get.
Speaker 3: The lowest score that I've seen fyc Go score was
Speaker 3: a three to eleven, the lowest, right, No, it was
Speaker 3: so the lowes score you can get is three hundred.
Speaker 2: Yeah, the low score you can get three hundred. The
Speaker 2: highest you can get is a fifty. I've seen a
Speaker 2: three to eleven credit score.
Speaker 3: People think that because they have bad credit, they you know,
Speaker 3: they're just doomed for the next seven years.
Speaker 2: It's not true.
Speaker 3: Build credit and you will get credit points when you
Speaker 3: add your credit card and the first month, the first
Speaker 3: month that you get a credit card, Please, everybody who's
Speaker 3: watching this, if this is your first credit card, do
Speaker 3: not allow that first month to be wasted on reporting
Speaker 3: a zero dollar utilization because a lot of people get
Speaker 3: their credit cards and they're scared to use it, so
Speaker 3: they'll just like whatever, like keep it in their pocket
Speaker 3: or keep it in their wallet. When you activate that card,
Speaker 3: you typically are going to be mid cycle, depending on
Speaker 3: how long your bank took to mail it to you.
Speaker 3: Go get some gas, Go buy some chips, Go do
Speaker 3: something so that you have at least one to three
Speaker 3: percent reporting that first time. The reason why it's important
Speaker 3: the first time is because when your credit card hits
Speaker 3: your credit report for the first time, you.
Speaker 2: Open yourself up to utilization because if you.
Speaker 3: Don't have any credit cards, you're not getting a single
Speaker 3: point out of the one hundred and sixty five points
Speaker 3: that are allotted for you credit utilization. So when you
Speaker 3: first get your credit card, make sure that you report
Speaker 3: a very small, a very small balance. So the second
Speaker 3: that that credit card hits your credit report, which is
Speaker 3: usually like sixty days after you get it, you'll see
Speaker 3: you should see a large increase in your credit Go
Speaker 3: buy your.
Speaker 1: Pair of sneakers. Yell so earners, what's up?
Speaker 3: Look?
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