WEBVTT - Consolidation Tips & Low Credit Score Hacks 🔑

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<v Speaker 1>This episode is brought to you by P and C Bank.

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<v Speaker 1>A lot of people think podcasts about work are boring,

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<v Speaker 1>and sure they definitely can be, but understanding a professionals

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<v Speaker 1>routine shows us how they achieve their success little by little,

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<v Speaker 1>day after day. It's like banking with P and C Bank.

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<v Speaker 1>It might seem boring to save, plan and make calculated

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<v Speaker 1>decisions with your bank, but keeping your money boring is

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<v Speaker 1>what helps you live or more happily fulfilled life. P

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<v Speaker 1>and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

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<v Speaker 1>Boring since eighteen sixty five is a service mark of

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<v Speaker 1>the PNC Financial Service Group, Inc. P and C Bank

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<v Speaker 1>National Association Member FDIC. This is the other part because

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<v Speaker 1>we talk about the things that credit can affect. Right,

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<v Speaker 1>obviously your score, but it could affect loans and sometimes employment,

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<v Speaker 1>but it also could affect relationships. This is important, right

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<v Speaker 1>because you said you need to have maybe three to

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<v Speaker 1>four items on your credit report, and some people when

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<v Speaker 1>they're in relationships. We've seen I'm going to get a car,

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<v Speaker 1>I didn't get approved. Can you co sign?

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<v Speaker 2>I love this? Yeah, asking a good question. This is

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<v Speaker 2>this is why.

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<v Speaker 1>Yeah, we've been known to do. So talk about that.

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<v Speaker 1>I mean, yes, co signing could be less.

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<v Speaker 3>So one of the things that I do in my

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<v Speaker 3>day to day is I'm a credit specialist specializing in

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<v Speaker 3>mortgage scoring. Right, so I deal with a lot of

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<v Speaker 3>people who can't see the clothes on their home, who

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<v Speaker 3>need a few more points to to get obtain a

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<v Speaker 3>home loan. Now, this is one of the things that

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<v Speaker 3>I see so much, and I and we need to

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<v Speaker 3>change it. So when it comes to married couple spouses,

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<v Speaker 3>make sure that the accounts are evenly distributed, right, So

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<v Speaker 3>make sure make sure that one spouse does not have

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<v Speaker 3>all of the is not the primary account holder account

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<v Speaker 3>owner of all of the accounts, and then the other

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<v Speaker 3>spouse usually like to stay at home spouse is just.

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<v Speaker 2>Signed on all of the accounts.

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<v Speaker 3>There is something within the Credit Card Act of two

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<v Speaker 3>thousand and nine that says on every credit card application,

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<v Speaker 3>legally you can use what's called household income. So if

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<v Speaker 3>you're a spouse, if you have a spouse that maybe

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<v Speaker 3>does not make a lot of money or you know,

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<v Speaker 3>stays at home, as opposed to them just being a

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<v Speaker 3>co signer and an authorized user on all of spouse's

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<v Speaker 3>one accounts, they can apply using the income, they can

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<v Speaker 3>apply using their spouse's income. So make sure that they

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<v Speaker 3>still have credit cards, home loan or not home loans,

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<v Speaker 3>but loans and installments in their name as owner. Because

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<v Speaker 3>when you only have co sign accounts authorized user accounts,

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<v Speaker 3>then you're never going to unleash your true borring power

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<v Speaker 3>because it's based on someone else, regardless of who it is.

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<v Speaker 3>So make sure, yes, I'm glad you asked that question,

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<v Speaker 3>because that man that happens so often, Like it'll just

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<v Speaker 3>it'll be one person has great credit and then one

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<v Speaker 3>person has subpart credit because they don't have any they

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<v Speaker 3>haven't built any credit.

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<v Speaker 1>And that's if you're married. Yeah you broke up, good luck?

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<v Speaker 3>Oh well yeah, to speak on that co signing, no no, no, no,

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<v Speaker 3>I won't co sign. I'm not sign nobody because that

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<v Speaker 3>affects you. Like if you co sign for someone and

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<v Speaker 3>you can have amazing credit, if they choose to not

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<v Speaker 3>pay it or you know, run up your card, you

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<v Speaker 3>are responsible for that when it comes to co sign

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<v Speaker 3>and when it comes to authorized users, authorized users, they

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<v Speaker 3>don't have any legal binding to that account, so they

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<v Speaker 3>can run it up. They can spend every dollar, and

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<v Speaker 3>it still is going to be your fault when you

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<v Speaker 3>co sign for someone that if that account goes derogatory,

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<v Speaker 3>it's going to affect both persons credit report.

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<v Speaker 2>You can't do nothing about it.

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<v Speaker 4>So what about credit consolidation? Is that always the most

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<v Speaker 4>beneficial way to kind of manish.

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<v Speaker 3>Multiple No, it's not that that chips away at your

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<v Speaker 3>credit age drastically. So now it like when it comes

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<v Speaker 3>to like student loans and things of that nature, sometimes

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<v Speaker 3>that it's worth it, right, But when it comes to

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<v Speaker 3>just consolidating your everyday credit cards, I don't always recommend it,

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<v Speaker 3>unless like you're just trying to prevent bankruptcy or something

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<v Speaker 3>like major like that. But consolidation I'm not the biggest

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<v Speaker 3>fan of, just because it doesn't really aid to you

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<v Speaker 3>improving your borring power.

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<v Speaker 4>So if people will have bad credit and they're trying

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<v Speaker 4>to improve their credit, what's the steps to actually go

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<v Speaker 4>from you know, having issues bad credit to having better credit.

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<v Speaker 3>Yes, the good thing about having bad credit is you

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<v Speaker 3>have a lot of points that you can obtain, Like

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<v Speaker 3>the lower your credit score is, the more points you

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<v Speaker 3>can grab. Right, So my favorite thing when helping someone

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<v Speaker 3>with their credit is when they do have a low

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<v Speaker 3>credit score because it's so easy to get those points.

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<v Speaker 3>You just have to understand that obtaining those points will

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<v Speaker 3>not come from just repairing your credit or disputing your

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<v Speaker 3>credit record.

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<v Speaker 2>It's going to.

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<v Speaker 3>Come from building credit. That is where the points are

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<v Speaker 3>released from. Right, So making sure if you have bad credit,

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<v Speaker 3>if you have collections, charge offs, whatever, there is no

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<v Speaker 3>nothing that will help you other than building credit. Making

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<v Speaker 3>sure that you have those those four accounts to credit cards,

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<v Speaker 3>to installments, one short term, one long term. Making sure

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<v Speaker 3>you do not pay off that installment early, the short

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<v Speaker 3>term installment specifically because you want to build credit. Right. Also,

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<v Speaker 3>if you are if you do have collections, challenging those right,

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<v Speaker 3>if they get removed, great, But if they do not

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<v Speaker 3>get removed, you still can have good credit with collections

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<v Speaker 3>because the older a collection gets, the less impact that

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<v Speaker 3>it has on your score. The more credit that you've

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<v Speaker 3>established since the collection will help you sort of undo

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<v Speaker 3>bad credit. Right. I think I had It was one

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<v Speaker 3>account that I could not get removed, and again that

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<v Speaker 3>did not stop me from getting credit cards or buying

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<v Speaker 3>a home and things of that nature because I had

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<v Speaker 3>established credit that spoke to my financial habits, my current

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<v Speaker 3>financial habits.

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<v Speaker 2>More than those old collections.

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<v Speaker 1>Right.

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<v Speaker 2>But yeah, so making sure you have your building credit.

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<v Speaker 2>That's what people will say.

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<v Speaker 3>I have bad credits, so I'm just not going to

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<v Speaker 3>touch my credit for seven years. It's the worst thing

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<v Speaker 3>you can do because that's seven years of wasted time

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<v Speaker 3>where you can build credit. You can come back from collections.

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<v Speaker 3>I've never I've never, and I have helped thousands. I've

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<v Speaker 3>looked at thousands of credit reports. I have never seen

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<v Speaker 3>a credit report that is irrepaarable ever, and I haven't

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<v Speaker 3>seen three hundred credit scores.

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<v Speaker 2>That's you know, that's the lowest credit score you can get.

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<v Speaker 3>The lowest score that I've seen fyc Go score was

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<v Speaker 3>a three to eleven, the lowest, right, No, it was

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<v Speaker 3>so the lowes score you can get is three hundred.

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<v Speaker 2>Yeah, the low score you can get three hundred. The

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<v Speaker 2>highest you can get is a fifty. I've seen a

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<v Speaker 2>three to eleven credit score.

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<v Speaker 3>People think that because they have bad credit, they you know,

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<v Speaker 3>they're just doomed for the next seven years.

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<v Speaker 2>It's not true.

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<v Speaker 3>Build credit and you will get credit points when you

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<v Speaker 3>add your credit card and the first month, the first

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<v Speaker 3>month that you get a credit card, Please, everybody who's

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<v Speaker 3>watching this, if this is your first credit card, do

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<v Speaker 3>not allow that first month to be wasted on reporting

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<v Speaker 3>a zero dollar utilization because a lot of people get

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<v Speaker 3>their credit cards and they're scared to use it, so

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<v Speaker 3>they'll just like whatever, like keep it in their pocket

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<v Speaker 3>or keep it in their wallet. When you activate that card,

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<v Speaker 3>you typically are going to be mid cycle, depending on

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<v Speaker 3>how long your bank took to mail it to you.

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<v Speaker 3>Go get some gas, Go buy some chips, Go do

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<v Speaker 3>something so that you have at least one to three

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<v Speaker 3>percent reporting that first time. The reason why it's important

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<v Speaker 3>the first time is because when your credit card hits

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<v Speaker 3>your credit report for the first time, you.

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<v Speaker 2>Open yourself up to utilization because if you.

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<v Speaker 3>Don't have any credit cards, you're not getting a single

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<v Speaker 3>point out of the one hundred and sixty five points

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<v Speaker 3>that are allotted for you credit utilization. So when you

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<v Speaker 3>first get your credit card, make sure that you report

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<v Speaker 3>a very small, a very small balance. So the second

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<v Speaker 3>that that credit card hits your credit report, which is

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<v Speaker 3>usually like sixty days after you get it, you'll see

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<v Speaker 3>you should see a large increase in your credit Go

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<v Speaker 3>buy your.

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<v Speaker 1>Pair of sneakers. Yell so earners, what's up?

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<v Speaker 3>Look?

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<v Speaker 1>This episode is brought to you by Square Banking. One

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<v Speaker 1>of the things we love most is seeing neighborhood businesses

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<v Speaker 1>level up. This this West Indian spired writing our community

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<v Speaker 1>that started with a small takeout counter. Now with Square

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<v Speaker 1>they've been able to expand into a full sit down

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<v Speaker 1>the kind of growth that inspires us, and it's powered

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<v Speaker 1>by Square. Square is built for all types of businesses,

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<v Speaker 1>from the corner bagel shop that turned into a local chain,

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<v Speaker 1>the stylists who's been holding you down for years. With

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<v Speaker 1>a free Square Savings account, you can automatically set aside

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<v Speaker 1>slow seasons, setting yourself up for long term success and

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<v Speaker 1>q u a r e dot com slash g O,

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<v Speaker 1>slash e y l. Block Inc. Is not a bank.

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<v Speaker 1>Banking services provided by Square Financial Services Inc. And Cutting

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<v Speaker 1>Bank Members. Fd I C loans are subject to credit

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<v Speaker 1>approval