1 00:00:00,200 --> 00:00:19,480 Speaker 1: She's on the Money, She's on the Money. 2 00:00:23,120 --> 00:00:26,120 Speaker 2: Hello, and welcome to She's on the Money, the podcast 3 00:00:26,160 --> 00:00:29,960 Speaker 2: for millennials who want financial freedom. Today we're talking about 4 00:00:30,000 --> 00:00:33,559 Speaker 2: credit scores and specifically how we can improve ours and 5 00:00:33,600 --> 00:00:37,760 Speaker 2: the impact that improvement could have on our future money goals. 6 00:00:38,320 --> 00:00:41,120 Speaker 2: My name is Georgia King and joining me for the 7 00:00:41,159 --> 00:00:44,879 Speaker 2: final Wednesday episode of the podcast this year. 8 00:00:45,400 --> 00:00:49,240 Speaker 3: Not again, It's upd How did we get here? My friend? 9 00:00:49,400 --> 00:00:52,519 Speaker 3: I actually am very unsure. This year has been an 10 00:00:52,560 --> 00:00:54,960 Speaker 3: absolute blur. But do you know what's not a blur? 11 00:00:55,120 --> 00:00:58,760 Speaker 3: The clarity that is pertained in credit scores? Hey, oh 12 00:00:59,360 --> 00:01:01,240 Speaker 3: she's good to watch. She does It was a smooth 13 00:01:01,240 --> 00:01:05,000 Speaker 3: little trendslas really accidental. I just thought I was quite funny. 14 00:01:05,040 --> 00:01:08,160 Speaker 3: But we'll go from there. What do you reckon? Ah? Yeah, 15 00:01:08,200 --> 00:01:10,679 Speaker 3: I loved it. I loved it. It's been a. 16 00:01:10,640 --> 00:01:14,120 Speaker 2: Good six months I think since we last spoke about 17 00:01:14,200 --> 00:01:16,640 Speaker 2: credit scores, and for anyone who has had like a 18 00:01:16,680 --> 00:01:18,960 Speaker 2: long year, I guess we all have. They're feeling a 19 00:01:19,000 --> 00:01:22,480 Speaker 2: little tired, they don't quite remember what's up, what a 20 00:01:22,480 --> 00:01:26,200 Speaker 2: credit score is? Can you give us a cheeky little refresher? 21 00:01:26,319 --> 00:01:28,160 Speaker 2: Oh little ambulance. 22 00:01:27,720 --> 00:01:29,959 Speaker 3: Has just gone past. Oh no, I hope they were 23 00:01:29,959 --> 00:01:31,080 Speaker 3: all right. Me too. 24 00:01:31,200 --> 00:01:31,360 Speaker 2: Well. 25 00:01:31,360 --> 00:01:34,160 Speaker 3: I think talking about credit scores is important, and we've 26 00:01:34,160 --> 00:01:37,920 Speaker 3: obviously done a whole episode on it historically, but I 27 00:01:37,920 --> 00:01:40,760 Speaker 3: don't think there's too much content when it comes to 28 00:01:40,840 --> 00:01:44,000 Speaker 3: credit scores, because we're still getting lots of questions around 29 00:01:44,000 --> 00:01:45,560 Speaker 3: what it is and how it works and how you 30 00:01:45,600 --> 00:01:49,200 Speaker 3: can improve yours and recently G and the reason we've 31 00:01:49,240 --> 00:01:51,920 Speaker 3: picked this topic as well is because G and I 32 00:01:51,960 --> 00:01:55,320 Speaker 3: have noticed in the Facebook group there's a lot of misinformation. 33 00:01:55,640 --> 00:01:58,120 Speaker 3: We've obviously removed it. Don't worry, guys, it's not still 34 00:01:58,120 --> 00:02:02,040 Speaker 3: there around getting credit cards to improve credit scores and 35 00:02:02,160 --> 00:02:05,600 Speaker 3: very American ways of approaching things. And I just think 36 00:02:05,600 --> 00:02:09,680 Speaker 3: it's worth another episode and another conversation because, to be 37 00:02:09,880 --> 00:02:12,280 Speaker 3: quite frank, you do not need to have a credit 38 00:02:12,280 --> 00:02:15,920 Speaker 3: card in Australia to establish a good credit score. And 39 00:02:15,960 --> 00:02:18,240 Speaker 3: I said this on one of the posts last week 40 00:02:18,320 --> 00:02:22,120 Speaker 3: in the Facebook group. The actual reality of the situation 41 00:02:22,400 --> 00:02:25,800 Speaker 3: is in twenty twenty one slash twenty twenty two, you 42 00:02:25,800 --> 00:02:28,239 Speaker 3: don't need a credit score for anything other than credit. 43 00:02:28,440 --> 00:02:30,840 Speaker 3: The only reason someone would have a credit card is 44 00:02:30,919 --> 00:02:33,680 Speaker 3: literally to rely on credit and there's obviously, you know 45 00:02:33,880 --> 00:02:36,240 Speaker 3: lots of nuances to this, like g you might go 46 00:02:36,320 --> 00:02:37,919 Speaker 3: will V, I've got one because I want the points. 47 00:02:37,960 --> 00:02:40,799 Speaker 3: It's like great, but there's no actual need for one, 48 00:02:41,040 --> 00:02:45,200 Speaker 3: Whereas historically you might have needed one to travel overseas, 49 00:02:45,440 --> 00:02:48,079 Speaker 3: or you might have needed one to check into a hotel, 50 00:02:48,360 --> 00:02:50,880 Speaker 3: or you might have needed one for a particular type 51 00:02:50,880 --> 00:02:54,080 Speaker 3: of activity that you were doing, whereas that's now not 52 00:02:54,280 --> 00:02:57,760 Speaker 3: the case. Because of the way visidebit cards work and 53 00:02:57,800 --> 00:03:00,840 Speaker 3: the fact that we all have access to these options, 54 00:03:01,160 --> 00:03:05,040 Speaker 3: you don't actually ever need a credit card anymore. It's 55 00:03:05,040 --> 00:03:07,280 Speaker 3: a personal choice, and I think it's really important to 56 00:03:07,320 --> 00:03:09,760 Speaker 3: clarify there. I'm not saying that some people don't rely 57 00:03:09,840 --> 00:03:11,960 Speaker 3: on credit cards. That is not the conversation we are 58 00:03:12,000 --> 00:03:15,080 Speaker 3: having here. What we are saying is to do things 59 00:03:15,120 --> 00:03:18,880 Speaker 3: in Australia, you do not need a credit card, whereas 60 00:03:18,919 --> 00:03:21,000 Speaker 3: the same as not true in America. And I think 61 00:03:21,040 --> 00:03:23,639 Speaker 3: that we get a little bit confused around what those 62 00:03:23,720 --> 00:03:26,600 Speaker 3: nuances are and how that works, so that sometimes when 63 00:03:26,600 --> 00:03:28,880 Speaker 3: we're asking in questions, especially in a Facebook group, people like, 64 00:03:28,880 --> 00:03:30,480 Speaker 3: oh my gosh, no, you need a credit card because 65 00:03:30,520 --> 00:03:32,919 Speaker 3: you need to start building your credit score, or you're 66 00:03:32,919 --> 00:03:35,480 Speaker 3: going to go to Christmas Day drinks with the family, 67 00:03:35,520 --> 00:03:37,440 Speaker 3: and Uncle Greg's going to turn around and be like, oh, well, 68 00:03:37,480 --> 00:03:38,880 Speaker 3: you need to get a credit card, because like, you'll 69 00:03:38,880 --> 00:03:40,400 Speaker 3: never get a car loan if you don't get a 70 00:03:40,400 --> 00:03:43,560 Speaker 3: credit card. Got to start building your credit early, Darlin, Like, 71 00:03:43,880 --> 00:03:45,360 Speaker 3: that's not actually how it works. 72 00:03:45,440 --> 00:03:49,920 Speaker 2: Uncle Greg got you just a little tangent when you 73 00:03:49,960 --> 00:03:52,600 Speaker 2: said uncle gregor I could think about was cousin Greg. 74 00:03:53,200 --> 00:03:54,960 Speaker 2: You're a Succession fan, Victoria Devince. 75 00:03:54,960 --> 00:03:57,280 Speaker 3: I don't even know what you're talking about. Okay, don't 76 00:03:57,280 --> 00:03:58,760 Speaker 3: worry about it. That's a little shout out to my 77 00:03:58,840 --> 00:04:05,200 Speaker 3: girls who loves Succession from the finale watching Oh, VICKI 78 00:04:05,280 --> 00:04:10,360 Speaker 3: d I'm sorry. Yeah, I just TV show that's like 79 00:04:10,400 --> 00:04:12,240 Speaker 3: ever been made. That's all you need to know if 80 00:04:12,320 --> 00:04:16,800 Speaker 3: you watch Sex in the City. I don't know about you, friends. 81 00:04:18,320 --> 00:04:20,440 Speaker 3: There's a lot of TV shows that I would say 82 00:04:20,520 --> 00:04:23,360 Speaker 3: are really really good. Below Deck also a really good one. 83 00:04:23,400 --> 00:04:26,080 Speaker 3: I recently didn't add for Hayu, and I wasn't joking 84 00:04:26,120 --> 00:04:28,800 Speaker 3: when I said that. I was completely obsessed with Below Deck. 85 00:04:28,839 --> 00:04:30,960 Speaker 3: It's absolutely trash, but it is so good. 86 00:04:31,040 --> 00:04:35,120 Speaker 2: George. My mum also loves Below Deck, so shout out 87 00:04:35,120 --> 00:04:37,800 Speaker 2: to Jolly King, I've been named and shamed on the pod. 88 00:04:38,279 --> 00:04:41,120 Speaker 3: Ah, well, I throw myself under the bus. She just followed. 89 00:04:41,160 --> 00:04:43,000 Speaker 3: I really appreciate her support. 90 00:04:44,520 --> 00:04:49,480 Speaker 2: Okay, so cousin Greg chat asidev Our credit scores essentially 91 00:04:49,800 --> 00:04:54,880 Speaker 2: just a measurement like a number of how how good 92 00:04:55,000 --> 00:04:57,320 Speaker 2: of a what am I trying to say. 93 00:04:57,200 --> 00:05:00,480 Speaker 3: Good of a person? You are? At credit essentially is 94 00:05:00,560 --> 00:05:03,800 Speaker 3: that it? That's it, that's it. So your credit score 95 00:05:03,920 --> 00:05:06,960 Speaker 3: is a number that helps lenders and banks work out 96 00:05:07,000 --> 00:05:10,040 Speaker 3: how safe you are to lend to. So it's actually 97 00:05:10,040 --> 00:05:12,640 Speaker 3: based on all of the information that is contained in 98 00:05:12,680 --> 00:05:15,480 Speaker 3: your credit report. So this could be history of your 99 00:05:15,520 --> 00:05:18,520 Speaker 3: borrowing and whether you've made repayments on time or not, 100 00:05:18,960 --> 00:05:21,320 Speaker 3: or whether you've paid bills on time or not, or 101 00:05:21,360 --> 00:05:24,560 Speaker 3: if you've ever defaulted on something. So a good example 102 00:05:24,600 --> 00:05:26,280 Speaker 3: of this is one time I used to have my 103 00:05:26,360 --> 00:05:29,400 Speaker 3: phone plan on direct debit and I changed over the 104 00:05:29,440 --> 00:05:33,159 Speaker 3: debit card that it was associated with, completely forgot was 105 00:05:33,200 --> 00:05:37,200 Speaker 3: ignoring the messages from Vhotophone and completely forgot have my 106 00:05:37,240 --> 00:05:40,400 Speaker 3: phone cut off. Because I'm a proper adult, ended up 107 00:05:40,400 --> 00:05:42,600 Speaker 3: getting it back pretty quick. Smart because when they actually 108 00:05:42,640 --> 00:05:45,440 Speaker 3: take that service off, you you're like, well, I actually 109 00:05:45,440 --> 00:05:48,719 Speaker 3: need my phone, so strange, I will pay that bill now. 110 00:05:49,040 --> 00:05:51,480 Speaker 3: So I did that, But I actually had a default 111 00:05:51,560 --> 00:05:54,960 Speaker 3: for a long time on my credit history, because guys, 112 00:05:54,960 --> 00:05:57,320 Speaker 3: this wasn't last week. This was like maybe in like 113 00:05:58,040 --> 00:06:00,720 Speaker 3: I would have been twenty twenty one maybe, But way 114 00:06:00,760 --> 00:06:03,040 Speaker 3: back then I had a default on my credit history 115 00:06:03,120 --> 00:06:05,200 Speaker 3: because I had defaulted on a payment. I had a 116 00:06:05,200 --> 00:06:06,880 Speaker 3: bill that was due and I didn't pay it, And 117 00:06:06,920 --> 00:06:09,080 Speaker 3: that is the type of thing that actually shows up 118 00:06:09,120 --> 00:06:12,400 Speaker 3: on your credit history. So it is really important for 119 00:06:12,440 --> 00:06:15,960 Speaker 3: you to consider all of those things, not just well, Victoria, 120 00:06:16,240 --> 00:06:18,719 Speaker 3: I've never had a personal loan or a credit card before, 121 00:06:18,760 --> 00:06:21,680 Speaker 3: so I shouldn't have a credit history. That's not actually 122 00:06:21,720 --> 00:06:25,040 Speaker 3: the case. It includes literally all of those little bills, 123 00:06:25,279 --> 00:06:28,000 Speaker 3: which is why it's also super important if you're in 124 00:06:28,000 --> 00:06:30,640 Speaker 3: a situation where you have housemates to make sure that 125 00:06:30,680 --> 00:06:33,039 Speaker 3: you're not just putting your name on the line when 126 00:06:33,080 --> 00:06:36,160 Speaker 3: it comes to paying the bills, just because you've actually 127 00:06:36,160 --> 00:06:39,599 Speaker 3: got to take that as a pretty serious responsibility because 128 00:06:39,600 --> 00:06:42,719 Speaker 3: if you're not paying the bill, then ooh, you're going 129 00:06:42,760 --> 00:06:44,120 Speaker 3: to end up in a little bit of a pickle. 130 00:06:44,160 --> 00:06:46,640 Speaker 3: And if your old housemate isn't transferring the funds and 131 00:06:46,680 --> 00:06:49,120 Speaker 3: you can't afford to pay the bill, it could actually 132 00:06:49,160 --> 00:06:51,440 Speaker 3: significantly impact your credit report. 133 00:06:51,720 --> 00:06:55,880 Speaker 2: M okay, and then what are the negative consequences of 134 00:06:55,920 --> 00:06:58,000 Speaker 2: that fee? Like what does having a bad credit score 135 00:06:58,080 --> 00:06:59,320 Speaker 2: actually mean for us? 136 00:07:00,120 --> 00:07:03,360 Speaker 3: So g credit scores are super important in the world 137 00:07:03,400 --> 00:07:07,960 Speaker 3: of borrowing because many lenders actually base their application assessments 138 00:07:08,040 --> 00:07:11,600 Speaker 3: on their applicants credit score. So in particular, we're talking 139 00:07:11,640 --> 00:07:14,920 Speaker 3: here about top tier lenders. So that is actually like 140 00:07:15,000 --> 00:07:17,200 Speaker 3: the big four banks and those names that you know, 141 00:07:17,360 --> 00:07:19,440 Speaker 3: So we're not talking about the credit unions and all 142 00:07:19,480 --> 00:07:21,920 Speaker 3: of the other options to borrow. We're talking like, nah, 143 00:07:21,920 --> 00:07:24,720 Speaker 3: but Westpac, A and Z and what was it com 144 00:07:24,800 --> 00:07:27,520 Speaker 3: Bank if I remember off the top of my head. 145 00:07:28,000 --> 00:07:32,080 Speaker 3: And these lenders are usually and I might be speaking 146 00:07:32,080 --> 00:07:34,400 Speaker 3: out of term here, but they're usually super strict. So 147 00:07:34,480 --> 00:07:36,640 Speaker 3: they are a lot more strict than those second tier 148 00:07:36,680 --> 00:07:40,400 Speaker 3: lenders or credit unions because they can be really picky. 149 00:07:40,680 --> 00:07:42,200 Speaker 3: So if you want to get credit through one of 150 00:07:42,200 --> 00:07:44,600 Speaker 3: those options, then it is really important to have a 151 00:07:44,600 --> 00:07:47,240 Speaker 3: good credit score. But it's really important to have a 152 00:07:47,240 --> 00:07:50,200 Speaker 3: good credit score regardless, So don't go, hey THEE well, 153 00:07:50,320 --> 00:07:52,040 Speaker 3: I just won't go with one of the big four banks. 154 00:07:52,080 --> 00:07:55,080 Speaker 3: That's fine, it's going to impact anything. And a bank 155 00:07:55,160 --> 00:07:56,600 Speaker 3: is going to want you to have a really good 156 00:07:56,600 --> 00:07:59,800 Speaker 3: credit score because a good credit score means you're more 157 00:07:59,840 --> 00:08:01,760 Speaker 3: like to be able to pay the loan back, which 158 00:08:01,800 --> 00:08:04,040 Speaker 3: in turn means that they're more likely to be able 159 00:08:04,080 --> 00:08:07,000 Speaker 3: to offer you a better interest rate because you're less 160 00:08:07,120 --> 00:08:10,160 Speaker 3: risky to them and go through the process a whole 161 00:08:10,200 --> 00:08:13,840 Speaker 3: heap easier. And when push comes to shove at some 162 00:08:14,080 --> 00:08:16,800 Speaker 3: point in your life, you are very likely going to 163 00:08:16,880 --> 00:08:19,559 Speaker 3: need to rely on credit to take the next step 164 00:08:19,600 --> 00:08:20,640 Speaker 3: in your wealth journey. 165 00:08:21,440 --> 00:08:23,880 Speaker 2: And when it comes to actually finding out what our 166 00:08:23,920 --> 00:08:27,680 Speaker 2: credit score is v I'm having flashbacks something about. 167 00:08:27,400 --> 00:08:29,880 Speaker 3: Like Expleurian or. 168 00:08:31,400 --> 00:08:35,320 Speaker 2: Exposion, something like that, Like it was a fun alien 169 00:08:35,520 --> 00:08:36,240 Speaker 2: like name. 170 00:08:36,679 --> 00:08:42,200 Speaker 3: Is that right? Yeah? Ilion or Equifax or let's be real, 171 00:08:42,240 --> 00:08:46,800 Speaker 3: they sound like spaceships. They're not spaceships. They're actually they're 172 00:08:46,800 --> 00:08:49,320 Speaker 3: actually companies that check your credit score and their credit 173 00:08:49,400 --> 00:08:52,120 Speaker 3: reporting bodies, which is much sexier spaceship. 174 00:08:52,480 --> 00:08:55,319 Speaker 2: Yeah, not quite as interesting as aliens, But that's okay. 175 00:08:56,600 --> 00:08:59,240 Speaker 2: Do we just google? You can just google any of 176 00:08:59,280 --> 00:09:03,440 Speaker 2: those three. You can also head to our friend Wiser's website, 177 00:09:03,480 --> 00:09:07,600 Speaker 2: so that's WISR. They're not sponsoring this or anything like that. 178 00:09:07,840 --> 00:09:10,080 Speaker 2: It's just a good website and I think they're good 179 00:09:10,080 --> 00:09:13,360 Speaker 2: eggs doing good things. But they use one of the 180 00:09:13,360 --> 00:09:15,800 Speaker 2: credit reporting bodies as well. It's just a really really 181 00:09:15,800 --> 00:09:19,319 Speaker 2: good user interface. So at the end of the day, 182 00:09:19,360 --> 00:09:21,200 Speaker 2: when it comes to credit files, you can pay for 183 00:09:21,240 --> 00:09:24,079 Speaker 2: reports or you can get free ones, and by law 184 00:09:24,160 --> 00:09:26,959 Speaker 2: you are actually entitled to get one free credit report 185 00:09:27,080 --> 00:09:31,160 Speaker 2: every twelve months or within ninety days of receiving a 186 00:09:31,200 --> 00:09:35,360 Speaker 2: credit rejection, and that's pretty cool. Or on top of that, 187 00:09:35,400 --> 00:09:37,840 Speaker 2: you can always just pay a small fee to request 188 00:09:37,880 --> 00:09:41,680 Speaker 2: still report at any time, but money win. Every twelve months, 189 00:09:41,800 --> 00:09:44,280 Speaker 2: you can check your credit report for free, and if 190 00:09:44,320 --> 00:09:47,640 Speaker 2: you're not already doing that, it's amazing. So in terms 191 00:09:47,640 --> 00:09:50,760 Speaker 2: of what that actually looks like, v is it a 192 00:09:50,800 --> 00:09:51,720 Speaker 2: scale of. 193 00:09:52,120 --> 00:09:56,439 Speaker 3: One to one hundred? Or where does it sit in americle? 194 00:09:56,679 --> 00:09:59,320 Speaker 3: So it could sit on one of two different scales. 195 00:09:59,360 --> 00:10:01,840 Speaker 3: It could be a score out of twelve hundred or 196 00:10:01,880 --> 00:10:04,880 Speaker 3: it could be a score out of one thousand, depending 197 00:10:04,920 --> 00:10:08,640 Speaker 3: on what company you go with. So if your credit report, 198 00:10:08,800 --> 00:10:10,760 Speaker 3: you've downloaded it, you're having a look at it and 199 00:10:10,800 --> 00:10:13,480 Speaker 3: it's out of twelve hundred. Then a rule of thumb 200 00:10:13,600 --> 00:10:17,080 Speaker 3: score is that anything above eight hundred and fifty three 201 00:10:17,240 --> 00:10:21,680 Speaker 3: is excellent, whereas anything above six hundred and sixty one 202 00:10:21,840 --> 00:10:25,160 Speaker 3: is considered good. Whereas if your credit report shows a 203 00:10:25,160 --> 00:10:28,520 Speaker 3: score out of one thousand, then anything above six hundred 204 00:10:28,559 --> 00:10:32,440 Speaker 3: and ninety is excellent and five hundred and forty is good. 205 00:10:32,880 --> 00:10:35,320 Speaker 3: Does that make sense? You don't want to like muddle 206 00:10:35,360 --> 00:10:37,400 Speaker 3: them up because if you're like, oh, my gosh, V 207 00:10:37,559 --> 00:10:40,680 Speaker 3: said on the pod that six hundred and sixty one 208 00:10:40,800 --> 00:10:44,000 Speaker 3: is good, well, actually, oh, that's not the scale to 209 00:10:44,040 --> 00:10:45,840 Speaker 3: go off if you're only going out of one thousand. 210 00:10:45,880 --> 00:10:48,080 Speaker 3: So definitely have a look at which scale your credit 211 00:10:48,120 --> 00:10:53,080 Speaker 3: report is using and take my information as needed appropriately 212 00:10:53,960 --> 00:10:54,520 Speaker 3: for sure. 213 00:10:55,400 --> 00:10:57,640 Speaker 2: And it's a myth, isn't it fee that you can 214 00:10:57,720 --> 00:11:00,800 Speaker 2: only check your credit score once a year, Like I 215 00:11:00,840 --> 00:11:03,800 Speaker 2: think there was conversation in the group last time that 216 00:11:03,840 --> 00:11:06,960 Speaker 2: we did an episode on credit scores, and people were 217 00:11:07,000 --> 00:11:09,880 Speaker 2: saying you might be penalized or your credit score might 218 00:11:10,160 --> 00:11:12,600 Speaker 2: go down if you're seen to be looking at your 219 00:11:12,600 --> 00:11:13,480 Speaker 2: credit score too much. 220 00:11:13,840 --> 00:11:16,680 Speaker 3: So that's different. So there's a difference between a credit 221 00:11:16,800 --> 00:11:20,959 Speaker 3: inquiry and a credit score check. So a credit inquiry 222 00:11:21,040 --> 00:11:24,880 Speaker 3: is something where a phone company or a bank might 223 00:11:24,960 --> 00:11:28,160 Speaker 3: go and do a full inquiry on your account, whereas 224 00:11:28,200 --> 00:11:30,880 Speaker 3: you getting your credit reports score is just you getting 225 00:11:30,880 --> 00:11:33,360 Speaker 3: the score for personal use, and these two things are 226 00:11:33,480 --> 00:11:36,760 Speaker 3: very different. So don't be scared away by going, oh, V, 227 00:11:36,960 --> 00:11:39,400 Speaker 3: I don't want to negatively impact my score by checking 228 00:11:39,440 --> 00:11:42,240 Speaker 3: what it is. That's not actually a thing, my friends. 229 00:11:42,520 --> 00:11:44,840 Speaker 3: But as you said before, g it is a myth 230 00:11:44,880 --> 00:11:47,040 Speaker 3: that you can only check it once a year. The 231 00:11:47,120 --> 00:11:49,800 Speaker 3: reality is you can check it once a year for free. 232 00:11:50,000 --> 00:11:52,880 Speaker 3: If you'd like additional reports, you can absolutely pay a 233 00:11:52,920 --> 00:11:54,880 Speaker 3: small fee for them at any time. 234 00:11:55,080 --> 00:11:59,480 Speaker 2: So, if I may be so bold, what's your credit score? 235 00:11:59,480 --> 00:12:00,000 Speaker 2: A little miss? 236 00:12:00,360 --> 00:12:03,680 Speaker 3: That is actually quite a brazen question, but I'm happy 237 00:12:03,720 --> 00:12:07,040 Speaker 3: to share with the team. But keep in mind this 238 00:12:07,200 --> 00:12:10,080 Speaker 3: file was done like at the end of twenty twenty, 239 00:12:10,120 --> 00:12:13,080 Speaker 3: and the reason I still have this file is because 240 00:12:13,120 --> 00:12:15,760 Speaker 3: I was submitting a homeland application and I haven't applied 241 00:12:15,760 --> 00:12:18,840 Speaker 3: for any credit since then, which is probably a good thing, 242 00:12:18,920 --> 00:12:21,839 Speaker 3: let's be honest. But when I did it, I did 243 00:12:21,840 --> 00:12:25,319 Speaker 3: it through Equifax and I got my score back as 244 00:12:25,400 --> 00:12:28,480 Speaker 3: eleven hundred and sixty six, which I think is pretty 245 00:12:28,480 --> 00:12:31,480 Speaker 3: good and like minor flex like that means I had 246 00:12:31,480 --> 00:12:34,280 Speaker 3: a really good credit score. But in saying that, g 247 00:12:35,080 --> 00:12:37,680 Speaker 3: wouldn't you be really disappointed If I was like, oh, 248 00:12:37,760 --> 00:12:41,120 Speaker 3: my credit score is twelve, you'd be like, isn't she 249 00:12:41,280 --> 00:12:44,880 Speaker 3: like meant to know money? I don't know. 250 00:12:45,000 --> 00:12:47,839 Speaker 2: Hey, you always say do as I say, not as 251 00:12:47,840 --> 00:12:50,080 Speaker 2: I do. I feel like that's that's a wikidi catch 252 00:12:50,080 --> 00:12:50,840 Speaker 2: phrase as well. 253 00:12:51,080 --> 00:12:53,480 Speaker 3: It is very true. And to give you a little 254 00:12:53,520 --> 00:12:55,800 Speaker 3: bit more information, I'm not going to share this file 255 00:12:55,840 --> 00:13:00,440 Speaker 3: because it's very personal, but it actually has so much 256 00:13:00,480 --> 00:13:02,920 Speaker 3: information on it. So when I scroll through, it gives 257 00:13:02,960 --> 00:13:05,559 Speaker 3: you the headlines. It gives you the adverse on files, 258 00:13:05,600 --> 00:13:08,440 Speaker 3: so it lets you know if there's any issues up front. 259 00:13:08,520 --> 00:13:11,320 Speaker 3: It says does she have any insolvencies or actions? Guys? 260 00:13:11,360 --> 00:13:14,360 Speaker 3: I have zero? Says does she have any business relationships, 261 00:13:14,360 --> 00:13:16,319 Speaker 3: and it says that I do have a fair few. 262 00:13:16,720 --> 00:13:20,600 Speaker 3: It also says really quickly, what's her total limit? And guys, 263 00:13:20,640 --> 00:13:23,720 Speaker 3: my total limit at application time was two thousand dollars 264 00:13:24,240 --> 00:13:29,400 Speaker 3: hashtag baller and my defaults were zero, which is really 265 00:13:29,440 --> 00:13:33,680 Speaker 3: good obviously, but I don't think anybody expected anything differently. 266 00:13:34,080 --> 00:13:36,719 Speaker 3: But if you're looking at your credit report, and you're 267 00:13:36,760 --> 00:13:41,079 Speaker 3: looking at those headlines and something's not making sense. For example, 268 00:13:41,360 --> 00:13:43,520 Speaker 3: if there was a default on my account still and 269 00:13:43,559 --> 00:13:46,240 Speaker 3: I was like, I actually don't have anything that I've 270 00:13:46,240 --> 00:13:49,520 Speaker 3: defaulted on. You need to investigate that, and there'll be 271 00:13:49,559 --> 00:13:53,439 Speaker 3: further information further down on your report. But that's also 272 00:13:53,480 --> 00:13:55,839 Speaker 3: a really good point in time where you go, maybe 273 00:13:55,880 --> 00:13:58,240 Speaker 3: I should have a look into this and not just 274 00:13:58,280 --> 00:14:00,640 Speaker 3: have a look at the headlines and see what that 275 00:14:00,720 --> 00:14:03,000 Speaker 3: could be, or follow up with the company if something 276 00:14:03,040 --> 00:14:06,800 Speaker 3: doesn't make sense to you, because credit reports should be 277 00:14:07,040 --> 00:14:09,320 Speaker 3: really straightforward and make a lot of sense to you. 278 00:14:09,559 --> 00:14:14,520 Speaker 3: For example, Georgia, it says here inquiry Telstra, I'm like, okay, 279 00:14:14,600 --> 00:14:17,760 Speaker 3: no problems ages ago. I inquired on a new internet 280 00:14:17,800 --> 00:14:21,240 Speaker 3: package for the office. Like that makes sense, Whereas if 281 00:14:21,280 --> 00:14:24,120 Speaker 3: I'd never had anything to do with Telstra, I'd be like, hmm, 282 00:14:24,560 --> 00:14:27,200 Speaker 3: that seems familiar. I do know what Telstra is, but 283 00:14:27,520 --> 00:14:31,000 Speaker 3: I've never personally contacted them. That's where you might go, hmm, 284 00:14:31,240 --> 00:14:32,880 Speaker 3: maybe I should follow up on that and have a 285 00:14:32,880 --> 00:14:35,400 Speaker 3: bit of a chat with Telstra and see if I 286 00:14:35,480 --> 00:14:38,800 Speaker 3: actually have a relationship with them or not. And George, 287 00:14:38,840 --> 00:14:40,400 Speaker 3: as you would know, a couple of weeks ago, we 288 00:14:40,440 --> 00:14:44,320 Speaker 3: actually had someone on the show whose identity was stolen 289 00:14:44,360 --> 00:14:46,280 Speaker 3: and a phone pan was taken out in their name. 290 00:14:46,360 --> 00:14:48,360 Speaker 3: That's why we want to be really on top of 291 00:14:48,400 --> 00:14:53,200 Speaker 3: these things hundred percent. They let's move on now to 292 00:14:53,520 --> 00:14:57,120 Speaker 3: talking through some strategies of actually improving our credit score 293 00:14:57,200 --> 00:14:59,840 Speaker 3: if it is a little bit rubbish few I thought 294 00:14:59,840 --> 00:15:01,760 Speaker 3: you we're going to ask me more about the information 295 00:15:01,800 --> 00:15:04,320 Speaker 3: on my credit report. But that's all good. I'm happy 296 00:15:04,320 --> 00:15:05,040 Speaker 3: to be moving on. 297 00:15:07,320 --> 00:15:11,080 Speaker 2: The first cab off the rank is too. Simply pay 298 00:15:11,280 --> 00:15:14,080 Speaker 2: your bills on time. How does this help us out? 299 00:15:14,120 --> 00:15:17,640 Speaker 2: That is an absolutely great tip. And as I said before, 300 00:15:17,680 --> 00:15:19,760 Speaker 2: we just don't want a default. But that is not 301 00:15:19,840 --> 00:15:20,720 Speaker 2: the only reason. 302 00:15:21,040 --> 00:15:23,400 Speaker 3: So although your credit report is not actually going to 303 00:15:23,440 --> 00:15:26,520 Speaker 3: include information about you actually paying them on time and 304 00:15:26,920 --> 00:15:30,800 Speaker 3: detailed descriptions of your utilities bills, it's really important to 305 00:15:30,840 --> 00:15:33,680 Speaker 3: pay these bills on time because you're demonstrating a general 306 00:15:33,720 --> 00:15:37,240 Speaker 3: bill paying reliability, which if you ask me and ask 307 00:15:37,360 --> 00:15:40,200 Speaker 3: someone who's going to lend you, that's a pretty good 308 00:15:40,240 --> 00:15:40,800 Speaker 3: habit to. 309 00:15:40,760 --> 00:15:43,920 Speaker 2: Be inm Okay, So that's it. It just makes us 310 00:15:43,960 --> 00:15:46,760 Speaker 2: look reliable and trustworthy. 311 00:15:46,960 --> 00:15:49,640 Speaker 3: It makes us look reliable, makes us look trustworthy, but 312 00:15:49,840 --> 00:15:53,040 Speaker 3: also it means that you're going to avoid ever being 313 00:15:53,080 --> 00:15:55,880 Speaker 3: put into a default. So if you're not making payment 314 00:15:55,880 --> 00:15:58,800 Speaker 3: on these services, your credit provider might actually refer you 315 00:15:58,840 --> 00:16:00,960 Speaker 3: to a debt collector or port your debt to a 316 00:16:01,000 --> 00:16:04,720 Speaker 3: credit reporting agency, which means that they would ask them 317 00:16:04,880 --> 00:16:07,320 Speaker 3: to record your default on your credit report, which you 318 00:16:07,320 --> 00:16:09,320 Speaker 3: don't want to happen. And that can happen if you 319 00:16:09,320 --> 00:16:12,320 Speaker 3: don't pay your bills. So it seems little, and it 320 00:16:12,360 --> 00:16:14,880 Speaker 3: seems like sometimes people are like, oh, v I couldn't 321 00:16:14,880 --> 00:16:17,040 Speaker 3: pay my water that month. Like I get it. We 322 00:16:17,160 --> 00:16:21,080 Speaker 3: have all gone through some level of financial hardship. And 323 00:16:21,120 --> 00:16:23,240 Speaker 3: that's why I always say, please, don't put your head 324 00:16:23,240 --> 00:16:25,680 Speaker 3: in the sand. Call you are a valley water, let 325 00:16:25,760 --> 00:16:27,840 Speaker 3: them know, say hey, I'm really sorry, I'm not going 326 00:16:27,920 --> 00:16:29,560 Speaker 3: to be able to make that payment this month, and 327 00:16:29,600 --> 00:16:33,240 Speaker 3: I guarantee you they will have some way that you 328 00:16:33,280 --> 00:16:36,400 Speaker 3: can push it out or get an extension on that payment. 329 00:16:36,440 --> 00:16:38,440 Speaker 3: I'm not saying you can do that forever, because that's 330 00:16:38,480 --> 00:16:40,920 Speaker 3: not an option, but if you're going to be late 331 00:16:40,960 --> 00:16:44,000 Speaker 3: on a payment, please call those companies because it could 332 00:16:44,080 --> 00:16:46,840 Speaker 3: one save your credit report, but two, my friend, it 333 00:16:46,880 --> 00:16:49,160 Speaker 3: will take a whole heap of stress off knowing that 334 00:16:49,200 --> 00:16:51,640 Speaker 3: you don't have to make that payment for another month 335 00:16:51,720 --> 00:16:53,680 Speaker 3: or a couple of weeks. And at the end of 336 00:16:53,720 --> 00:16:56,120 Speaker 3: the day, those companies, they just want to get paid. 337 00:16:56,480 --> 00:16:59,240 Speaker 3: So if you're calling and saying, hey, can't make the payment, 338 00:16:59,280 --> 00:17:01,240 Speaker 3: but I really want to, can you help me make 339 00:17:01,280 --> 00:17:03,160 Speaker 3: a plan to do that, They're gonna be like, great, 340 00:17:03,240 --> 00:17:04,919 Speaker 3: do you know what? This is so much easier than 341 00:17:05,000 --> 00:17:07,320 Speaker 3: chasing you down later down the track when you're not 342 00:17:07,359 --> 00:17:09,320 Speaker 3: paying it all and you aren't answering our. 343 00:17:09,359 --> 00:17:13,000 Speaker 2: Calls precisely, And you definitely won't be the first person 344 00:17:13,040 --> 00:17:15,439 Speaker 2: to ever to have ever called up and asked for 345 00:17:15,480 --> 00:17:19,359 Speaker 2: an extension, right, No, exactly, And it happens all the time. 346 00:17:19,800 --> 00:17:21,959 Speaker 3: And I've said this on the podcast before, so I 347 00:17:22,000 --> 00:17:24,520 Speaker 3: do apologize. I don't want to sound like a broken record. 348 00:17:24,800 --> 00:17:26,840 Speaker 3: But if you're calling, you're not going to get the 349 00:17:26,960 --> 00:17:28,879 Speaker 3: CEO on the phone. It's not going to be some 350 00:17:29,040 --> 00:17:30,600 Speaker 3: dude who's going to be like, oh my god, she 351 00:17:30,680 --> 00:17:32,920 Speaker 3: can't pay her bills. No, it's going to be someone 352 00:17:33,040 --> 00:17:34,720 Speaker 3: just like you that's going to be like, don't worry, 353 00:17:34,760 --> 00:17:37,600 Speaker 3: g I got you. Let's make a plan you. Thank god. 354 00:17:37,640 --> 00:17:40,480 Speaker 2: I called because I felt like crap, Yeah, for sure, 355 00:17:40,560 --> 00:17:44,000 Speaker 2: for sure, Okay. Our next to PV is to reduce 356 00:17:44,160 --> 00:17:46,640 Speaker 2: the limits that you have on your credit cards. 357 00:17:47,600 --> 00:17:51,080 Speaker 3: How does this work? So when it comes to reducing 358 00:17:51,080 --> 00:17:53,240 Speaker 3: the limits on our credit cards, we're doing two things. 359 00:17:53,560 --> 00:17:55,679 Speaker 3: We are one putting ourselves in a position where we 360 00:17:55,720 --> 00:17:58,960 Speaker 3: are less likely to be able to go into significant debt. 361 00:17:59,520 --> 00:18:02,480 Speaker 3: And the second tip G only really applies when we're 362 00:18:02,520 --> 00:18:06,400 Speaker 3: going for a loan, is that when our lenders look 363 00:18:06,600 --> 00:18:10,040 Speaker 3: at our credit and what we have access to, they 364 00:18:10,040 --> 00:18:12,240 Speaker 3: don't go, hey, gee, you've got a five thousand dollar 365 00:18:12,280 --> 00:18:14,399 Speaker 3: credit card. No idea if you actually do. But this's 366 00:18:14,480 --> 00:18:17,640 Speaker 3: great example, Gee you've got a five thousand dollar credit card. 367 00:18:17,920 --> 00:18:20,800 Speaker 3: They don't care what's on it. They assume it's completely 368 00:18:20,840 --> 00:18:24,040 Speaker 3: maxed out. So instead of saying Georgia has access to 369 00:18:24,240 --> 00:18:28,120 Speaker 3: five thousand dollars in credit, they say Georgia has five 370 00:18:28,160 --> 00:18:30,520 Speaker 3: thousand dollars worth of debt, and they will look at 371 00:18:30,560 --> 00:18:34,000 Speaker 3: you that way and go, okay, call she has access 372 00:18:34,040 --> 00:18:36,440 Speaker 3: to that, So we're just going to call it debt. 373 00:18:36,560 --> 00:18:39,320 Speaker 3: And the reason they do that is because they could 374 00:18:39,320 --> 00:18:42,280 Speaker 3: give you a loan tomorrow and you could still go 375 00:18:42,320 --> 00:18:45,280 Speaker 3: into five thousand dollars debt tomorrow because you've got access 376 00:18:45,359 --> 00:18:48,240 Speaker 3: to it. So it's not necessarily it's g good with 377 00:18:48,280 --> 00:18:50,600 Speaker 3: her credit card or not. It's how much does she 378 00:18:50,760 --> 00:18:53,679 Speaker 3: have access to at that point in time, and you 379 00:18:53,720 --> 00:18:56,560 Speaker 3: will be assessed that way. So one of the tips 380 00:18:56,640 --> 00:18:59,439 Speaker 3: is to actually bring down that level of credit and 381 00:18:59,480 --> 00:19:01,520 Speaker 3: that will help you in a way that gives you 382 00:19:01,560 --> 00:19:04,679 Speaker 3: access to more credit and more lending ability when you 383 00:19:04,800 --> 00:19:06,800 Speaker 3: go for a home loan or a personal loan or 384 00:19:06,840 --> 00:19:09,480 Speaker 3: whatever you're looking for, there you go. 385 00:19:09,560 --> 00:19:12,560 Speaker 2: I feel like people wouldn't necessarily know that, especially if 386 00:19:12,600 --> 00:19:14,040 Speaker 2: they are on top of their credit cards. 387 00:19:14,040 --> 00:19:16,399 Speaker 3: That's really interesting. Yeah, look, I think it's important for 388 00:19:16,400 --> 00:19:19,520 Speaker 3: people to look at reducing their credit limits regardless, just 389 00:19:19,560 --> 00:19:22,119 Speaker 3: because I like the idea that people would have less 390 00:19:22,160 --> 00:19:24,840 Speaker 3: access to being able to go into debt. I don't 391 00:19:24,920 --> 00:19:27,760 Speaker 3: want you to have access to ten grand or thirty 392 00:19:27,800 --> 00:19:31,040 Speaker 3: thousand dollars. Some of these credit limits honestly start to 393 00:19:31,160 --> 00:19:35,320 Speaker 3: terrify me. However, I do know and I'm not saying 394 00:19:35,359 --> 00:19:37,320 Speaker 3: don't have a credit card at all, because it is 395 00:19:37,359 --> 00:19:40,320 Speaker 3: an absolute privilege to be in a position to say 396 00:19:40,440 --> 00:19:42,159 Speaker 3: you don't need a credit card. Because there are some 397 00:19:42,240 --> 00:19:44,879 Speaker 3: families some people out there that I need it. I 398 00:19:44,920 --> 00:19:47,159 Speaker 3: cannot survive without it. I totally get it. I'm not 399 00:19:47,280 --> 00:19:49,520 Speaker 3: saying that at all. I'm saying here are some tips 400 00:19:49,560 --> 00:19:51,600 Speaker 3: and tricks that if you are trying to get a 401 00:19:51,640 --> 00:19:53,760 Speaker 3: really good credit score, or go for a loan in 402 00:19:53,760 --> 00:19:55,720 Speaker 3: the future, or you've been saving a butt off to 403 00:19:55,760 --> 00:19:58,080 Speaker 3: buy your very first home, here are some tips and 404 00:19:58,119 --> 00:19:59,520 Speaker 3: tricks that are going to put you in a more 405 00:19:59,520 --> 00:20:00,520 Speaker 3: favorable position. 406 00:20:00,720 --> 00:20:03,640 Speaker 2: Amazing already, guys, we will be back on the other 407 00:20:03,720 --> 00:20:06,320 Speaker 2: side of the break to climb through our remaining tips 408 00:20:06,320 --> 00:20:10,600 Speaker 2: for improving your credit score, So please don't go anywhere, okay. 409 00:20:11,040 --> 00:20:14,439 Speaker 2: Our third tip here is that if you need help, 410 00:20:14,720 --> 00:20:15,680 Speaker 2: you should seek it out. 411 00:20:15,840 --> 00:20:19,159 Speaker 3: Yes and no G. Yes and no so G. I 412 00:20:19,240 --> 00:20:21,760 Speaker 3: do not believe that you need to pay somebody to 413 00:20:21,800 --> 00:20:24,080 Speaker 3: fix your credit report. You should absolutely be able to 414 00:20:24,119 --> 00:20:26,760 Speaker 3: do that yourself. There are so many companies that I 415 00:20:26,800 --> 00:20:30,520 Speaker 3: would call credit Tree that are going to say, oh 416 00:20:30,560 --> 00:20:32,879 Speaker 3: my gosh, we can help you fix your credit score. 417 00:20:33,640 --> 00:20:36,280 Speaker 3: We can actually, you know, stop paying things, we can 418 00:20:36,320 --> 00:20:40,440 Speaker 3: negotiate a different debt agreement for you. Be incredibly careful 419 00:20:40,560 --> 00:20:42,399 Speaker 3: because they are not always there to put you in 420 00:20:42,400 --> 00:20:45,480 Speaker 3: the best possible position, and they are very likely to 421 00:20:45,560 --> 00:20:48,800 Speaker 3: be charging you for something that you can incredibly easily 422 00:20:48,840 --> 00:20:52,800 Speaker 3: do yourself. It gets me really worked out because the 423 00:20:52,800 --> 00:20:55,080 Speaker 3: amount of people that I have spoken to from Shees 424 00:20:55,119 --> 00:20:56,959 Speaker 3: on the money that are like, oh my gosh, Victoria 425 00:20:57,000 --> 00:20:58,960 Speaker 3: actually paid this company to help me fix my credit 426 00:20:59,040 --> 00:21:00,600 Speaker 3: score in like they ended up up telling me I 427 00:21:00,640 --> 00:21:02,359 Speaker 3: had to do it myself, and it's like, yeah, that 428 00:21:02,880 --> 00:21:06,119 Speaker 3: will happen, because often they don't actually have the authority 429 00:21:06,119 --> 00:21:08,840 Speaker 3: to talk to your credit companies or talk to the 430 00:21:08,880 --> 00:21:12,359 Speaker 3: credit score companies to actually fix those things for you, 431 00:21:12,400 --> 00:21:15,800 Speaker 3: because you're the authorized person on that account. So what 432 00:21:15,920 --> 00:21:19,119 Speaker 3: do they promise they'll do, Like how lots of things 433 00:21:19,160 --> 00:21:21,560 Speaker 3: They'll say that they'll help you improve your credit score 434 00:21:21,640 --> 00:21:24,560 Speaker 3: or get you a loan quicker. Paying a credit repair 435 00:21:24,640 --> 00:21:28,520 Speaker 3: company is very unlikely to actually improve your credit score. 436 00:21:28,640 --> 00:21:31,880 Speaker 3: So please don't get caught up in their fancy marketing 437 00:21:31,920 --> 00:21:34,399 Speaker 3: and think, oh my gosh, I do have really bad credit. 438 00:21:34,440 --> 00:21:36,840 Speaker 3: This sounds like it's going to fix my problems. That's 439 00:21:36,880 --> 00:21:38,600 Speaker 3: not a thing. You actually do have to do the 440 00:21:38,680 --> 00:21:41,200 Speaker 3: work yourself, and that sucks. But there are a number 441 00:21:41,200 --> 00:21:43,720 Speaker 3: of things that you can do, and obviously we have 442 00:21:43,880 --> 00:21:46,480 Speaker 3: touched base on a couple of them already. 443 00:21:47,080 --> 00:21:50,360 Speaker 2: And I guess for you, like perhaps if you were 444 00:21:50,440 --> 00:21:52,440 Speaker 2: really struggling, if you were in a lot of debt, 445 00:21:52,560 --> 00:21:54,840 Speaker 2: always reaching out to the National Debt Help Plum, they 446 00:21:54,920 --> 00:21:56,960 Speaker 2: got to create a plan and work your way out 447 00:21:56,960 --> 00:21:59,040 Speaker 2: of that is definitely going to help your credit score 448 00:21:59,119 --> 00:21:59,600 Speaker 2: down the line. 449 00:21:59,760 --> 00:22:01,720 Speaker 3: Yes, they are never going to charge you to fix 450 00:22:01,760 --> 00:22:04,040 Speaker 3: your credit score because they are good Eggs doing good 451 00:22:04,080 --> 00:22:07,719 Speaker 3: egg things. Amazing, did anyone hear my stomach? Just then? 452 00:22:07,800 --> 00:22:10,639 Speaker 3: Why did you get no? Unlucky? We've missed out on 453 00:22:10,680 --> 00:22:13,760 Speaker 3: that quite the raw. I need a little snacky snack. 454 00:22:13,880 --> 00:22:16,560 Speaker 3: I've got some chocolate here if you'd luck, But unfortunately 455 00:22:16,560 --> 00:22:19,320 Speaker 3: we're recording online one day. 456 00:22:19,320 --> 00:22:22,560 Speaker 2: Hopefully that's a thing, okay. V. The next little tipparu 457 00:22:22,640 --> 00:22:26,320 Speaker 2: here is to take pause before applying for more credit. 458 00:22:26,560 --> 00:22:30,560 Speaker 3: Yes, credit isn't going to fix credit. Getting another credit 459 00:22:30,640 --> 00:22:32,440 Speaker 3: card to pay down a credit card that you owe 460 00:22:32,480 --> 00:22:34,919 Speaker 3: money on is not the solution. Yet there are too 461 00:22:34,960 --> 00:22:37,280 Speaker 3: many times that I speak to people who do do this, 462 00:22:37,440 --> 00:22:39,359 Speaker 3: and the reason they do this is because it's a 463 00:22:39,359 --> 00:22:42,800 Speaker 3: really quick solution to a problem that feels really overwhelming, 464 00:22:43,040 --> 00:22:45,320 Speaker 3: when in reality, we need to sit down and work 465 00:22:45,359 --> 00:22:47,560 Speaker 3: out our budget and our cash flow and what is 466 00:22:47,600 --> 00:22:50,399 Speaker 3: actually going on. And sometimes we actually do have to 467 00:22:50,440 --> 00:22:52,639 Speaker 3: reach out to the National Debt Helpline and say I 468 00:22:52,800 --> 00:22:56,320 Speaker 3: genuinely need a hand. It is not always super easy 469 00:22:56,359 --> 00:22:57,760 Speaker 3: to manage credit on our own. 470 00:22:58,520 --> 00:23:01,920 Speaker 2: Okay, well said, they're v our last little tip here 471 00:23:02,200 --> 00:23:04,360 Speaker 2: is to sort out our budget so that we can 472 00:23:04,440 --> 00:23:06,399 Speaker 2: be less reliant on credit. 473 00:23:06,560 --> 00:23:08,840 Speaker 3: I feel like this makes sense. Yeah, And I feel 474 00:23:08,840 --> 00:23:11,399 Speaker 3: like that touches on what I was saying before. I 475 00:23:11,480 --> 00:23:15,000 Speaker 3: don't think enough people have full control of their budgets. 476 00:23:15,119 --> 00:23:18,399 Speaker 3: And I know that it sounds really dry and really 477 00:23:18,440 --> 00:23:21,040 Speaker 3: bland and not very exciting. You go, vay, No one 478 00:23:21,040 --> 00:23:23,760 Speaker 3: wants to have a budget. Those things are really restrictive, 479 00:23:24,080 --> 00:23:27,640 Speaker 3: when in reality, a budget should absolutely not be restrictive. 480 00:23:27,920 --> 00:23:30,600 Speaker 3: A budget should be reflective of the money that's coming 481 00:23:30,640 --> 00:23:33,439 Speaker 3: into your account and what's going out and give you 482 00:23:33,560 --> 00:23:36,879 Speaker 3: a really solid understanding of each and every single dollar 483 00:23:37,240 --> 00:23:40,240 Speaker 3: and how you allocate that. It's not necessarily here to 484 00:23:40,320 --> 00:23:43,080 Speaker 3: restrict you or shame you on what you're spending, but 485 00:23:43,200 --> 00:23:45,840 Speaker 3: rather go, hey, what am I working with? Because it 486 00:23:45,920 --> 00:23:48,640 Speaker 3: is so hard to make plans if you don't even 487 00:23:48,680 --> 00:23:49,800 Speaker 3: know where you're starting from. 488 00:23:50,160 --> 00:23:53,760 Speaker 2: Yeah, gotcha. Okay, so that rounds out all of our 489 00:23:53,760 --> 00:23:58,400 Speaker 2: little tips for improving our credit score. V. I feel 490 00:23:58,440 --> 00:24:01,920 Speaker 2: like though they were all really like inventative measures, is 491 00:24:01,960 --> 00:24:05,520 Speaker 2: there a way of really like speeding up that process 492 00:24:05,560 --> 00:24:07,280 Speaker 2: and achieving a perfect credit score? 493 00:24:07,440 --> 00:24:10,399 Speaker 3: No, day, No there's not. And I am really glad 494 00:24:10,440 --> 00:24:13,520 Speaker 3: you brought that up because so many times people like V, 495 00:24:13,720 --> 00:24:15,560 Speaker 3: that doesn't tell me how to fix my credit score, 496 00:24:15,560 --> 00:24:17,359 Speaker 3: and I'm like, well, actually that is how you fix 497 00:24:17,400 --> 00:24:20,040 Speaker 3: your credit score. Like I know, they sound preventative, and 498 00:24:20,040 --> 00:24:21,960 Speaker 3: we can all take a leaf out of that book 499 00:24:22,000 --> 00:24:24,000 Speaker 3: and make sure that we're not doing those things or 500 00:24:24,040 --> 00:24:27,320 Speaker 3: we are implementing those tips and tricks from the get go. 501 00:24:27,720 --> 00:24:29,840 Speaker 3: But those tips and tricks are also the things that 502 00:24:29,920 --> 00:24:33,119 Speaker 3: are going to help you improve your credit score. So unfortunately, 503 00:24:33,200 --> 00:24:35,240 Speaker 3: there isn't a one size fits all person there's going 504 00:24:35,280 --> 00:24:36,880 Speaker 3: to be able to come in and fix this for 505 00:24:36,960 --> 00:24:39,360 Speaker 3: you. You actually do have to do it yourself. And that's 506 00:24:39,359 --> 00:24:41,320 Speaker 3: why it's so important to be on top of your 507 00:24:41,320 --> 00:24:44,720 Speaker 3: credit score regardless of where you are at in your 508 00:24:44,760 --> 00:24:48,120 Speaker 3: finance journey, because if there's something wrong on it right 509 00:24:48,160 --> 00:24:50,760 Speaker 3: now and you're not planning on getting any credit for 510 00:24:50,800 --> 00:24:52,879 Speaker 3: the foreseeable future, or you're like ve, it's going to 511 00:24:52,960 --> 00:24:54,960 Speaker 3: take me another five or seven years to save for 512 00:24:54,960 --> 00:24:57,800 Speaker 3: a house. The last thing you need is to spend 513 00:24:57,840 --> 00:25:01,000 Speaker 3: those five seven years saving Do then go do a 514 00:25:01,000 --> 00:25:03,840 Speaker 3: credit inquiry when you're borrowing money for the house, to 515 00:25:03,880 --> 00:25:05,880 Speaker 3: find out that somebody else has had a personal loaning 516 00:25:05,920 --> 00:25:07,560 Speaker 3: in your name for the last five years. 517 00:25:07,920 --> 00:25:12,640 Speaker 2: Yeah, definitely, definitely. To finish off today's episode, I thought 518 00:25:12,640 --> 00:25:13,240 Speaker 2: it would. 519 00:25:12,960 --> 00:25:14,040 Speaker 3: Be fun to. 520 00:25:15,480 --> 00:25:18,560 Speaker 2: Throw some questions at you from the community. I love 521 00:25:18,640 --> 00:25:23,240 Speaker 2: this credit score related of course, good, very on theme, precisely, 522 00:25:23,600 --> 00:25:24,119 Speaker 2: very deliberate. 523 00:25:24,200 --> 00:25:26,200 Speaker 3: I thought they were going to be completely off track, 524 00:25:26,280 --> 00:25:28,560 Speaker 3: like thee what's your marga? Read a recipe and I'd 525 00:25:28,600 --> 00:25:31,040 Speaker 3: be like, guys, you will find that on our Instagram 526 00:25:31,080 --> 00:25:31,840 Speaker 3: feed now. 527 00:25:32,160 --> 00:25:35,320 Speaker 2: Yeah, exactly, that's what the people really want to know. 528 00:25:36,200 --> 00:25:38,879 Speaker 2: The first one here is from Natalie and it ties 529 00:25:38,920 --> 00:25:40,760 Speaker 2: into exactly what you were just talking about. 530 00:25:40,800 --> 00:25:41,000 Speaker 3: Fee. 531 00:25:41,320 --> 00:25:45,160 Speaker 2: She's asked, how long does it actually take to improve 532 00:25:45,200 --> 00:25:46,080 Speaker 2: your credit score? 533 00:25:46,160 --> 00:25:48,879 Speaker 3: Natalie? It could take a couple of weeks, it could 534 00:25:48,920 --> 00:25:52,040 Speaker 3: take a year. There is no one size fits all outcome, 535 00:25:52,359 --> 00:25:55,760 Speaker 3: and it's all about proving a good track record. So 536 00:25:55,840 --> 00:25:58,480 Speaker 3: if you're trying to go from like eight hundred to 537 00:25:59,119 --> 00:26:02,560 Speaker 3: you know, maybe eleven hundred, that is going to be 538 00:26:02,720 --> 00:26:05,800 Speaker 3: very different in time than if you've got a credit 539 00:26:05,800 --> 00:26:07,879 Speaker 3: score of twelve and you need to go all the 540 00:26:07,880 --> 00:26:10,480 Speaker 3: way up to eight hundred. So there are small things 541 00:26:10,480 --> 00:26:12,760 Speaker 3: that you could tweak that have a big impact on 542 00:26:12,800 --> 00:26:14,680 Speaker 3: your credit score. For example, if you got rid of 543 00:26:14,680 --> 00:26:16,879 Speaker 3: a credit card or got rid of a debt. There 544 00:26:16,880 --> 00:26:18,960 Speaker 3: are a few things that you could do that you 545 00:26:19,000 --> 00:26:21,800 Speaker 3: know are going to make small but dramatic changes when 546 00:26:21,800 --> 00:26:24,639 Speaker 3: it comes to lending. But if you have got a 547 00:26:24,680 --> 00:26:27,160 Speaker 3: whole heap of defaults on your credit score, and you've 548 00:26:27,200 --> 00:26:28,720 Speaker 3: got a whole heap of debt and a whole heap 549 00:26:28,760 --> 00:26:33,600 Speaker 3: of credit inquiries, unfortunately, it's about consistency and then proving 550 00:26:33,640 --> 00:26:36,600 Speaker 3: yourself and building your credit score back up. As I 551 00:26:36,640 --> 00:26:39,280 Speaker 3: said before, there is not a company that can come 552 00:26:39,320 --> 00:26:42,320 Speaker 3: in and fix your credit score, So please don't fall 553 00:26:42,359 --> 00:26:45,120 Speaker 3: for that if that's the situation you were in. It's 554 00:26:45,160 --> 00:26:48,040 Speaker 3: actually going to be about doing the work yourself, getting 555 00:26:48,040 --> 00:26:51,480 Speaker 3: your budget together, understanding what that means, understanding what bills 556 00:26:51,520 --> 00:26:53,800 Speaker 3: are coming in and making sure we're paying them on time, 557 00:26:53,880 --> 00:26:57,439 Speaker 3: and just proving over a period of time that we 558 00:26:57,560 --> 00:26:59,199 Speaker 3: are a good person to lend to. 559 00:27:00,040 --> 00:27:04,400 Speaker 2: Perfect well said, thank you. My last question for you 560 00:27:04,440 --> 00:27:07,360 Speaker 2: today comes from Sam, So she wants to know what 561 00:27:07,640 --> 00:27:10,439 Speaker 2: you're meant to do if something looks wrong on your 562 00:27:10,480 --> 00:27:13,440 Speaker 2: credit score. So she says that she downloaded her credit 563 00:27:13,520 --> 00:27:14,480 Speaker 2: score from WISA. 564 00:27:14,600 --> 00:27:18,880 Speaker 3: Good decisions. Yeah, great decisions. But there were two of 565 00:27:18,920 --> 00:27:22,080 Speaker 3: her personal debts. One of her personal debts rather was 566 00:27:22,119 --> 00:27:27,280 Speaker 3: listed twice. Okay, that is hard, but it's also fixable. 567 00:27:27,640 --> 00:27:29,479 Speaker 3: So there are a couple of things. If you have 568 00:27:29,560 --> 00:27:32,040 Speaker 3: a poor credit score or an error on your credit score, 569 00:27:32,080 --> 00:27:35,600 Speaker 3: it actually can completely affect your ability to get loans 570 00:27:35,760 --> 00:27:38,720 Speaker 3: or get approved for credit that you're applying for. And 571 00:27:39,080 --> 00:27:42,600 Speaker 3: you have every right to get errors fixed for free, 572 00:27:42,840 --> 00:27:46,160 Speaker 3: and you can arrange them yourself. So, as I said before, 573 00:27:46,200 --> 00:27:49,960 Speaker 3: please don't rely on companies fixing these for you. Only 574 00:27:50,000 --> 00:27:53,159 Speaker 3: the credit company and the company that lends you money 575 00:27:53,280 --> 00:27:55,560 Speaker 3: is able to fix those things. Don't go through a 576 00:27:55,600 --> 00:27:59,119 Speaker 3: third party, please. But the error of something appearing twice 577 00:27:59,240 --> 00:28:02,800 Speaker 3: is actually quite common, which is sad but true, And 578 00:28:02,880 --> 00:28:06,760 Speaker 3: that could be a error on the credit reporting agency side. 579 00:28:06,920 --> 00:28:10,000 Speaker 3: So the credit reporting agency might have actually just wrongly 580 00:28:10,119 --> 00:28:14,240 Speaker 3: reported your information. Or had it accidentally input twice. Sometimes 581 00:28:14,280 --> 00:28:16,119 Speaker 3: you might see an error in your name or your 582 00:28:16,200 --> 00:28:19,600 Speaker 3: date of birth, or your address might need updating. For example, 583 00:28:19,800 --> 00:28:22,800 Speaker 3: Sam's debt was listed twice as the same, or the 584 00:28:22,880 --> 00:28:25,639 Speaker 3: amount of debt that you owe is incorrect. So to 585 00:28:25,760 --> 00:28:28,520 Speaker 3: fix these types of errors, you need to contact your 586 00:28:28,520 --> 00:28:31,560 Speaker 3: credit reporting agency. So if that was Wiser, have a 587 00:28:31,640 --> 00:28:33,840 Speaker 3: chat with them. If it was Equifax, have a chat 588 00:28:33,880 --> 00:28:35,879 Speaker 3: with them and they might be able to fix it 589 00:28:35,920 --> 00:28:39,200 Speaker 3: straight away or hold your hand to get it fixed. 590 00:28:39,520 --> 00:28:41,320 Speaker 3: But if the error is on the side of the 591 00:28:41,360 --> 00:28:45,600 Speaker 3: credit provider, they might have just wrongly reported the information. 592 00:28:45,920 --> 00:28:49,480 Speaker 3: Like I've heard stories where someone's had a zero added 593 00:28:49,520 --> 00:28:52,040 Speaker 3: to the end of a loan before, which would have 594 00:28:52,120 --> 00:28:55,120 Speaker 3: been terrifying to see. But it was an easy fix. 595 00:28:55,160 --> 00:28:58,000 Speaker 3: We got it fixed up really quickly because it was incorrect, 596 00:28:58,000 --> 00:29:00,840 Speaker 3: and they just went back validated informa said yep, that 597 00:29:00,920 --> 00:29:04,720 Speaker 3: was wrong. The reporting was incorrect. Very scary, but really 598 00:29:04,760 --> 00:29:07,240 Speaker 3: important to stay on top of it. And if a 599 00:29:07,280 --> 00:29:11,760 Speaker 3: credit provider has reported information wrongly, they actually will be 600 00:29:11,880 --> 00:29:14,880 Speaker 3: able to fix it. So to fix this, you can 601 00:29:14,880 --> 00:29:17,360 Speaker 3: contact your credit provider and be like, hey, there's some 602 00:29:17,440 --> 00:29:19,960 Speaker 3: wrong stuff or my credit report could you please have 603 00:29:20,040 --> 00:29:24,040 Speaker 3: this removed or updated? And if the credit provider agrees 604 00:29:24,080 --> 00:29:26,800 Speaker 3: that it's wrong, they'll then talk to the credit reporting 605 00:29:26,800 --> 00:29:29,600 Speaker 3: agency to remove it from your credit report and fix 606 00:29:29,760 --> 00:29:32,440 Speaker 3: your credit score to make sure that it is appropriate 607 00:29:32,480 --> 00:29:36,280 Speaker 3: and reflective of your actual credit history. And if you 608 00:29:36,320 --> 00:29:39,000 Speaker 3: can't reach an agreement, like if you're talking to your 609 00:29:39,000 --> 00:29:42,120 Speaker 3: credit provider and they're like, no, that's wrong, you definitely 610 00:29:42,200 --> 00:29:46,080 Speaker 3: had that, I would reach out to the AFCA, which 611 00:29:46,120 --> 00:29:49,880 Speaker 3: is the Australian Financial Complaints Authority and make a complaint 612 00:29:50,520 --> 00:29:53,320 Speaker 3: which is free and you will get an independent dispute 613 00:29:53,320 --> 00:29:57,000 Speaker 3: resolution through that process. And on top of that, to 614 00:29:57,080 --> 00:29:59,920 Speaker 3: add to this again, I'm sorry if you are strug 615 00:30:00,240 --> 00:30:02,200 Speaker 3: to get something fixed, or you don't fully understand it 616 00:30:02,280 --> 00:30:04,760 Speaker 3: or it's super overwhelming. Our friends at the National Debt 617 00:30:04,800 --> 00:30:07,440 Speaker 3: Helpline are absolute legends and will be on top of 618 00:30:07,440 --> 00:30:09,240 Speaker 3: that for you. Amazing. 619 00:30:09,520 --> 00:30:12,120 Speaker 2: So moral of the story like, don't stress, You'll get 620 00:30:12,160 --> 00:30:13,920 Speaker 2: it sorted one way or another. 621 00:30:14,040 --> 00:30:16,760 Speaker 3: Yeah, don't stress, get it sorted, but also be on 622 00:30:16,800 --> 00:30:18,880 Speaker 3: top of it really early, Like I know if you're 623 00:30:18,920 --> 00:30:22,000 Speaker 3: in your early twenties, you're like Victoria, I have no 624 00:30:22,160 --> 00:30:25,520 Speaker 3: inkling to talk about my credit history. I get it, 625 00:30:25,720 --> 00:30:29,800 Speaker 3: but get in the process of understanding these things. It's 626 00:30:29,840 --> 00:30:33,400 Speaker 3: not necessarily you having to do it right here in now. 627 00:30:33,640 --> 00:30:35,880 Speaker 3: It's knowing that you have access to these things and 628 00:30:35,960 --> 00:30:38,480 Speaker 3: knowing to check that because I promise you, it is 629 00:30:38,520 --> 00:30:41,640 Speaker 3: one of the most disheartening things to find that your 630 00:30:41,680 --> 00:30:44,440 Speaker 3: credit score is letting you down. If you've just gone 631 00:30:44,440 --> 00:30:46,720 Speaker 3: through the process of saving your first fifty thousand dollars 632 00:30:46,760 --> 00:30:49,000 Speaker 3: for your home deposit and you can't wait and you're 633 00:30:49,320 --> 00:30:51,280 Speaker 3: you know, you've found this house, and you're going to 634 00:30:51,320 --> 00:30:53,680 Speaker 3: a broker and you're like, broker, please help me. I've 635 00:30:53,720 --> 00:30:56,440 Speaker 3: got to organize X, Y and Z, and they go, hey, cool, 636 00:30:56,640 --> 00:31:00,280 Speaker 3: Like your credit report came back and it's cooked and 637 00:31:00,320 --> 00:31:01,840 Speaker 3: no one's going to lend to you because of this. 638 00:31:01,920 --> 00:31:04,040 Speaker 3: And you go, what, I've never had any type of 639 00:31:04,080 --> 00:31:06,920 Speaker 3: credit and you find out that it maybe wasn't you. 640 00:31:07,280 --> 00:31:09,680 Speaker 3: So I'm not saying that this is super common, but 641 00:31:09,920 --> 00:31:12,480 Speaker 3: as you guys know, on Money Darries a week or 642 00:31:12,480 --> 00:31:16,320 Speaker 3: so ago, we did have an episode where someone's identity 643 00:31:16,440 --> 00:31:18,680 Speaker 3: was stolen, and thankfully she was on top of it 644 00:31:18,720 --> 00:31:21,760 Speaker 3: because she knew her identity had been stolen because her 645 00:31:21,840 --> 00:31:25,320 Speaker 3: handbag was stolen from the car. But sometimes, especially in 646 00:31:25,400 --> 00:31:28,720 Speaker 3: online environments, you don't even know that your identity has 647 00:31:28,760 --> 00:31:31,520 Speaker 3: been borrowed or stolen, so you need to be super 648 00:31:31,560 --> 00:31:33,040 Speaker 3: on top of it. And this is just one of 649 00:31:33,040 --> 00:31:35,240 Speaker 3: those ways to make sure that you are safe and secure. 650 00:31:35,520 --> 00:31:36,160 Speaker 3: Brilliant V. 651 00:31:36,400 --> 00:31:39,720 Speaker 2: I think that is the perfect place to leave today's show. 652 00:31:40,000 --> 00:31:42,720 Speaker 2: But I guess to wrap in terms of improving our 653 00:31:42,760 --> 00:31:46,600 Speaker 2: credit score, we had sort out your budget. Stop before 654 00:31:46,680 --> 00:31:49,360 Speaker 2: applying for more credit. Take pause, really think about it, 655 00:31:49,720 --> 00:31:52,720 Speaker 2: seek help and guidance if you need it, lower your 656 00:31:52,760 --> 00:31:56,080 Speaker 2: credit limits, and pay your bills on time. And of 657 00:31:56,120 --> 00:31:58,479 Speaker 2: course I feel like this was a really clear message 658 00:31:58,480 --> 00:32:02,280 Speaker 2: in today's episode of those dodgy companies who say they'll 659 00:32:02,280 --> 00:32:05,320 Speaker 2: improve your credit score in just a few days. 660 00:32:05,560 --> 00:32:08,240 Speaker 3: It's not a thing. Not a thing. Oh my gosh, 661 00:32:08,320 --> 00:32:11,560 Speaker 3: g g. Today's last episode of the year, or the 662 00:32:11,640 --> 00:32:14,400 Speaker 3: last Wednesday episode of the year. See you later, my 663 00:32:14,480 --> 00:32:18,440 Speaker 3: angel friends. Thanks for hanging around, see you in twenty 664 00:32:18,480 --> 00:32:21,280 Speaker 3: twenty two. We love you, oh my gosh. Have the 665 00:32:21,320 --> 00:32:25,680 Speaker 3: best break or holiday or you know, time working, whatever 666 00:32:25,720 --> 00:32:28,880 Speaker 3: it is. Enjoy the festive season, but we'll see you 667 00:32:28,920 --> 00:32:31,640 Speaker 3: next year. And as always, just before we head off, 668 00:32:31,680 --> 00:32:35,040 Speaker 3: we'd like to acknowledge and pay respect to Australia's Aboriginal 669 00:32:35,080 --> 00:32:38,520 Speaker 3: and Torres Strait Islander people's. They're the traditional custodians of 670 00:32:38,560 --> 00:32:42,120 Speaker 3: the lands, the waterways and the skies all across Australia. 671 00:32:42,440 --> 00:32:44,360 Speaker 3: We thank you for sharing and for caring for the 672 00:32:44,480 --> 00:32:46,760 Speaker 3: land on which we are able to learn. We pay 673 00:32:46,880 --> 00:32:49,560 Speaker 3: respect to order's passed and present, and we share our 674 00:32:49,600 --> 00:32:51,280 Speaker 3: friendship and our kindness. 675 00:32:51,640 --> 00:32:54,520 Speaker 2: And remember everyone that the advice shared on She's on 676 00:32:54,560 --> 00:32:57,520 Speaker 2: the Money is general in nature and does not consider 677 00:32:57,600 --> 00:33:02,840 Speaker 2: your individual circumstances. The money exists purely for educational purposes 678 00:33:02,920 --> 00:33:05,440 Speaker 2: and should not be relied upon to make an investment 679 00:33:05,600 --> 00:33:06,920 Speaker 2: or a financial decision. 680 00:33:07,360 --> 00:33:08,120 Speaker 3: And we promise. 681 00:33:08,280 --> 00:33:12,200 Speaker 2: Victoria Divine is an authorized representative of Australia Pacific Funds 682 00:33:12,240 --> 00:33:16,040 Speaker 2: Management Proprietary Limited a BN three four one three two 683 00:33:16,160 --> 00:33:19,680 Speaker 2: four six three two five seven AFSL three three nine 684 00:33:19,760 --> 00:33:20,760 Speaker 2: one five one. 685 00:33:20,680 --> 00:33:24,800 Speaker 3: See you next year. You guys, we had the same joke. 686 00:33:25,040 --> 00:33:35,080 Speaker 2: Bye bye, guys,