1 00:00:00,200 --> 00:00:19,480 Speaker 1: She's on the Money. She's on the Money. 2 00:00:23,480 --> 00:00:26,400 Speaker 2: Hello, and welcome to She's on the Money, the podcast 3 00:00:26,400 --> 00:00:29,920 Speaker 2: for millennials who want financial freedom. Now, there's one topic 4 00:00:30,000 --> 00:00:32,720 Speaker 2: that comes up time and time again that people don't 5 00:00:32,760 --> 00:00:34,879 Speaker 2: really seem to have an answer on, and that is 6 00:00:35,080 --> 00:00:35,879 Speaker 2: credit scores. 7 00:00:35,960 --> 00:00:37,400 Speaker 3: We have an answer on it, Boja, we do. 8 00:00:37,400 --> 00:00:41,839 Speaker 4: We've got lots of But what are they? How do 9 00:00:41,880 --> 00:00:43,320 Speaker 4: we figure out what ours is? 10 00:00:43,760 --> 00:00:46,840 Speaker 2: And do they actually impact our ability to make those 11 00:00:46,880 --> 00:00:50,760 Speaker 2: big purchases like a home. Yes, podcasts so far done, 12 00:00:50,920 --> 00:00:54,480 Speaker 2: done and justin have a good life, have my friend's day. 13 00:00:54,920 --> 00:00:55,400 Speaker 4: Just kidding. 14 00:00:55,840 --> 00:00:58,720 Speaker 2: My name is Georgia King and joining me to get 15 00:00:58,760 --> 00:01:01,840 Speaker 2: to the bottom of things today. Of course, financial advisor 16 00:01:02,200 --> 00:01:03,200 Speaker 2: Victoria Divine v. 17 00:01:03,840 --> 00:01:07,160 Speaker 4: What is a credit score? Let's start at the start. 18 00:01:07,480 --> 00:01:09,720 Speaker 3: Let's start at the very makes sense. Yep, all right, 19 00:01:09,760 --> 00:01:11,959 Speaker 3: so g a credit score or a credit rating. These 20 00:01:11,959 --> 00:01:14,880 Speaker 3: two things are actually interchangeable, so that's the same thing. 21 00:01:15,000 --> 00:01:18,000 Speaker 3: But some people don't know that, so let's clarify that 22 00:01:18,040 --> 00:01:20,480 Speaker 3: at the start. So essentially, lend is going to use 23 00:01:20,560 --> 00:01:22,400 Speaker 3: that to figure out if you're going to be eligible 24 00:01:22,440 --> 00:01:24,760 Speaker 3: for a home loan, a car loan, or a personal loan. 25 00:01:24,800 --> 00:01:27,440 Speaker 3: And it is a history of all the money you've 26 00:01:27,480 --> 00:01:30,240 Speaker 3: borrowed and all the money that you've had owed in 27 00:01:30,280 --> 00:01:33,000 Speaker 3: your life. So your credit score is based on information 28 00:01:33,120 --> 00:01:35,920 Speaker 3: that is in your credit report, and that's basically if 29 00:01:35,959 --> 00:01:38,679 Speaker 3: you've ever applied for a credit card before, or any 30 00:01:38,720 --> 00:01:42,839 Speaker 3: type of loan, or had any type of finance agreement historically, 31 00:01:43,120 --> 00:01:46,000 Speaker 3: so that'll be on there. And the important thing about 32 00:01:46,040 --> 00:01:48,880 Speaker 3: that credit report as well, it's not just if you 33 00:01:49,040 --> 00:01:52,880 Speaker 3: got the credit or not. So say you g decided, 34 00:01:52,880 --> 00:01:54,480 Speaker 3: oh I don't want a personal loan, want to go 35 00:01:54,480 --> 00:01:56,640 Speaker 3: on a holiday, and you went to a whole heap 36 00:01:56,680 --> 00:01:59,000 Speaker 3: of banks and applied for a personal loan with them, 37 00:01:59,240 --> 00:02:01,720 Speaker 3: All of those in inquiries are going to be on 38 00:02:01,760 --> 00:02:05,600 Speaker 3: your credit report, including the one that you got. And 39 00:02:05,680 --> 00:02:08,200 Speaker 3: I think it's a misconception that some people are like, oh, 40 00:02:08,240 --> 00:02:10,360 Speaker 3: it doesn't matter, like I never actually got the loan, 41 00:02:10,720 --> 00:02:13,880 Speaker 3: Like your inquiry for credit is going to be on 42 00:02:13,919 --> 00:02:17,400 Speaker 3: that report, and that can negatively impact your credit score 43 00:02:17,440 --> 00:02:19,560 Speaker 3: because that makes you look a bit kind of flaky. Yeah, 44 00:02:19,600 --> 00:02:21,680 Speaker 3: it makes you look flaky, but it also is a 45 00:02:21,720 --> 00:02:24,480 Speaker 3: bit of a concern because they'll go, well, gee, why 46 00:02:24,560 --> 00:02:26,720 Speaker 3: did you go to the Bank of Melbourne and apply 47 00:02:26,800 --> 00:02:28,720 Speaker 3: for a personal loan and then not get it. Did 48 00:02:28,720 --> 00:02:30,799 Speaker 3: they not approve you? What's going on? What do they 49 00:02:30,840 --> 00:02:33,040 Speaker 3: know that we don't know? And then they look into 50 00:02:33,080 --> 00:02:36,280 Speaker 3: that further. So for me, it's just really important to 51 00:02:36,360 --> 00:02:39,000 Speaker 3: understand what your credit report is to begin with, and 52 00:02:39,040 --> 00:02:40,519 Speaker 3: we'll get to it, and there are a whole heap 53 00:02:40,560 --> 00:02:42,840 Speaker 3: of ways to find out what your credit score is. 54 00:02:43,160 --> 00:02:45,680 Speaker 3: But back to explaining exactly what it is. So, your 55 00:02:45,680 --> 00:02:47,680 Speaker 3: credit score is a number, and it sits between zero 56 00:02:47,720 --> 00:02:49,880 Speaker 3: and on thy or twelve hundred, depending on the credit 57 00:02:49,919 --> 00:02:52,000 Speaker 3: reporting agency that you're going to be using, and the 58 00:02:52,080 --> 00:02:55,080 Speaker 3: higher the score, the less risk a lender season lending 59 00:02:55,080 --> 00:02:57,000 Speaker 3: you money, and you're likely to get a better deal. 60 00:02:57,080 --> 00:02:59,799 Speaker 3: So we want high credit score, gotcha. We want it 61 00:02:59,840 --> 00:03:01,959 Speaker 3: to be as close to one thousand or as close 62 00:03:02,000 --> 00:03:05,480 Speaker 3: to twelve hundred as physically possible. And their score is 63 00:03:05,520 --> 00:03:08,320 Speaker 3: on a five point scale, so you're either going to 64 00:03:08,400 --> 00:03:12,280 Speaker 3: be excellent, very good, good, average, or below average, and 65 00:03:12,320 --> 00:03:14,079 Speaker 3: we don't want to be sitting on the lower end 66 00:03:14,080 --> 00:03:17,560 Speaker 3: of that scale. Excellent and very good, I would say, 67 00:03:17,639 --> 00:03:20,440 Speaker 3: in the same realm, So we don't want to slip 68 00:03:20,480 --> 00:03:21,919 Speaker 3: any further down than that though. 69 00:03:22,000 --> 00:03:25,560 Speaker 4: Okay, So how do we find out if we are excellent, 70 00:03:25,840 --> 00:03:26,320 Speaker 4: very good? 71 00:03:26,400 --> 00:03:28,640 Speaker 3: So there are lots of places to find out your 72 00:03:28,639 --> 00:03:31,000 Speaker 3: credit score, and you guys are probably stumbled across a 73 00:03:31,080 --> 00:03:34,040 Speaker 3: number of them, and it's actually super easy to understand 74 00:03:34,080 --> 00:03:36,200 Speaker 3: your credit score. You can find out what your credit 75 00:03:36,240 --> 00:03:39,040 Speaker 3: score is from any online credit provider, and there's a 76 00:03:39,080 --> 00:03:41,480 Speaker 3: thread in our Facebook group with lots of different websites. 77 00:03:41,520 --> 00:03:43,680 Speaker 3: You're able to search credit score and it'll just pop 78 00:03:43,760 --> 00:03:46,280 Speaker 3: up what we recommend, and it should be free and 79 00:03:46,440 --> 00:03:49,720 Speaker 3: pretty fast. The important thing to note here, though, is 80 00:03:49,760 --> 00:03:52,240 Speaker 3: we want to do a soft check, not a hard check. 81 00:03:52,560 --> 00:03:55,320 Speaker 3: So there's a difference between the two of these, and 82 00:03:55,360 --> 00:03:57,560 Speaker 3: I don't want to get too technical, but a hard 83 00:03:57,640 --> 00:04:00,640 Speaker 3: credit check is essentially the type of che you do 84 00:04:00,680 --> 00:04:03,520 Speaker 3: when you're applying for finance, So a bank will go 85 00:04:03,600 --> 00:04:06,320 Speaker 3: in and fully review everything and it will go on 86 00:04:06,360 --> 00:04:09,800 Speaker 3: your credit score, whereas a soft check is you just going, hey, 87 00:04:09,800 --> 00:04:11,680 Speaker 3: can you give me the number in a quick update 88 00:04:11,720 --> 00:04:13,960 Speaker 3: on what's going on? And you can get that from 89 00:04:13,960 --> 00:04:17,159 Speaker 3: a number of places. So there's a place called Experion, 90 00:04:17,440 --> 00:04:21,320 Speaker 3: there is Equifax. If you google free credit score check, 91 00:04:21,680 --> 00:04:24,599 Speaker 3: the first couple are going to help you in saying 92 00:04:24,640 --> 00:04:26,520 Speaker 3: that we'll link some in the show notes and our 93 00:04:26,560 --> 00:04:29,080 Speaker 3: friends that wise up. This is not sponsored with They're 94 00:04:29,160 --> 00:04:32,000 Speaker 3: just good Eggs. They actually have a free credit check 95 00:04:32,080 --> 00:04:34,479 Speaker 3: tool on their website that I quite like does the 96 00:04:34,520 --> 00:04:38,680 Speaker 3: same thing. It's just a little bit more aesthetically poleasing 97 00:04:39,080 --> 00:04:39,960 Speaker 3: all for that. 98 00:04:40,600 --> 00:04:46,360 Speaker 4: Okay, so credit score does? Do you need a credit card? 99 00:04:45,480 --> 00:04:45,520 Speaker 2: No? 100 00:04:47,560 --> 00:04:50,160 Speaker 3: Like shut it down, shut it down down, shut it down, 101 00:04:50,240 --> 00:04:52,000 Speaker 3: put it in the bin, put it on fire like 102 00:04:52,040 --> 00:04:55,039 Speaker 3: twenty twenty, which was a dumpster fire. Yeah I miss 103 00:04:55,120 --> 00:04:56,080 Speaker 3: I miss those vibes. 104 00:04:56,160 --> 00:04:57,279 Speaker 4: Gee, bring them back. 105 00:04:57,880 --> 00:05:01,640 Speaker 3: But no, you do not need a credit card to 106 00:05:01,720 --> 00:05:05,520 Speaker 3: create a credit score. You might have heard this before though, 107 00:05:05,800 --> 00:05:09,800 Speaker 3: because in America you do so. In America they're all 108 00:05:09,839 --> 00:05:13,559 Speaker 3: about building your credit history, and your credit history helps 109 00:05:13,560 --> 00:05:16,960 Speaker 3: create your credit score, which the more credit you've had 110 00:05:16,960 --> 00:05:18,680 Speaker 3: and the better you are at paying it back. It's 111 00:05:18,760 --> 00:05:20,400 Speaker 3: kind of like, you know, improving it and going to 112 00:05:20,520 --> 00:05:22,560 Speaker 3: university and getting good grades and you come out with 113 00:05:22,600 --> 00:05:24,839 Speaker 3: a really good outcome so that they go, oh, well, 114 00:05:24,839 --> 00:05:27,279 Speaker 3: she's a HD because look she's done all of this 115 00:05:27,440 --> 00:05:30,480 Speaker 3: work and she gets it. In Australia, it is different. 116 00:05:30,920 --> 00:05:34,679 Speaker 3: The credit score that you have by default usually starts 117 00:05:34,760 --> 00:05:37,640 Speaker 3: really well and things like you paying your phone bill 118 00:05:37,680 --> 00:05:40,240 Speaker 3: on time and not going into debt and paying your 119 00:05:40,480 --> 00:05:43,919 Speaker 3: electricity and your water bills on time are going to 120 00:05:44,000 --> 00:05:47,400 Speaker 3: contribute to you having a good credit score. In saying 121 00:05:47,440 --> 00:05:50,840 Speaker 3: that a credit card doesn't necessarily impact you negatively, but 122 00:05:50,920 --> 00:05:53,560 Speaker 3: it can very easily because if you miss a payment 123 00:05:53,680 --> 00:05:56,240 Speaker 3: or a crew any interest, like, you're not going to 124 00:05:56,279 --> 00:05:58,360 Speaker 3: be seen as someone who is really good at money 125 00:05:58,440 --> 00:06:00,719 Speaker 3: management because you're borrowing it for someone else. 126 00:06:00,960 --> 00:06:01,159 Speaker 4: Yeah. 127 00:06:01,240 --> 00:06:04,040 Speaker 3: Right, So if you've got a credit card, yeah, okay, 128 00:06:04,080 --> 00:06:05,839 Speaker 3: that might be great. You might have it for points 129 00:06:05,839 --> 00:06:08,279 Speaker 3: and a whole heap of other reasons. But if you're 130 00:06:08,360 --> 00:06:10,560 Speaker 3: going to get a home loan, that's going to come 131 00:06:10,640 --> 00:06:13,560 Speaker 3: up on your credit report and they're going to say, hey, gee, 132 00:06:13,560 --> 00:06:15,599 Speaker 3: I saw that you have a credit card and you go, yeah, 133 00:06:15,680 --> 00:06:17,560 Speaker 3: no problems, and they'll go do you owe anything on it? 134 00:06:17,600 --> 00:06:19,080 Speaker 3: And you go no, no, no, I'm really good at 135 00:06:19,080 --> 00:06:21,320 Speaker 3: my credit card and they go, okay, cool, we don't 136 00:06:21,320 --> 00:06:24,720 Speaker 3: care about that. How much is the limit and you'll go, oh, 137 00:06:24,880 --> 00:06:28,000 Speaker 3: it's a ten thousand dollar limit, and then they'll go, oh, okay, 138 00:06:28,040 --> 00:06:30,680 Speaker 3: no problems, dee. We'll just knock down your ability to 139 00:06:30,760 --> 00:06:34,200 Speaker 3: lend by ten thousand dollars and you're going, what but 140 00:06:34,279 --> 00:06:36,000 Speaker 3: I have nothing owing and they go, yeah, yeah, It's 141 00:06:36,040 --> 00:06:38,159 Speaker 3: actually not about what you owe, it's about what you've 142 00:06:38,200 --> 00:06:41,280 Speaker 3: got access to. And so that's why a lot of 143 00:06:41,320 --> 00:06:44,400 Speaker 3: brokers will give you the recommendation to get rid of 144 00:06:44,440 --> 00:06:47,080 Speaker 3: credit cards if you are going for a loan if 145 00:06:47,120 --> 00:06:50,960 Speaker 3: you don't need them, or knock down their limits significantly. 146 00:06:51,360 --> 00:06:54,440 Speaker 3: So I even did this recently. When I was purchasing 147 00:06:54,480 --> 00:06:57,000 Speaker 3: my home. I took a credit card that I had 148 00:06:57,040 --> 00:06:59,200 Speaker 3: that I think had like a six thousand dollar limit, 149 00:06:59,360 --> 00:07:01,920 Speaker 3: and I had it because of business, and the reason 150 00:07:01,960 --> 00:07:04,240 Speaker 3: I had it. I don't actually use it. I just 151 00:07:04,400 --> 00:07:06,360 Speaker 3: was one of those things that I had for work, 152 00:07:06,640 --> 00:07:09,360 Speaker 3: and it was really helpful in the moment. In fact, 153 00:07:09,400 --> 00:07:12,200 Speaker 3: i've now shut it down, but I stripped it back 154 00:07:12,280 --> 00:07:14,640 Speaker 3: completely to be a five hundred dollar limit, and I 155 00:07:14,680 --> 00:07:16,080 Speaker 3: was like, you know what, I want to keep it 156 00:07:16,200 --> 00:07:18,640 Speaker 3: just in case, but like just slip it back. I 157 00:07:18,680 --> 00:07:20,800 Speaker 3: had some direct debits on there that I just didn't 158 00:07:20,800 --> 00:07:23,160 Speaker 3: want to have to change. So instead of having that 159 00:07:23,240 --> 00:07:25,840 Speaker 3: six thousand dollar limit, I called up and said, Hey, 160 00:07:25,880 --> 00:07:28,200 Speaker 3: what's the lowest I can go on this credit card? 161 00:07:28,280 --> 00:07:30,360 Speaker 3: Like with the limit and they said, oh, five hundred, 162 00:07:30,400 --> 00:07:31,640 Speaker 3: And I said, can I knock it back to that 163 00:07:31,760 --> 00:07:34,600 Speaker 3: gol on the phone? Super confused, She's like why, And 164 00:07:34,680 --> 00:07:36,360 Speaker 3: I was like, I don't want to cancel the card, 165 00:07:36,360 --> 00:07:38,480 Speaker 3: but I also don't need it impacting my ability to 166 00:07:38,560 --> 00:07:40,720 Speaker 3: lend money from a bank. She was like, oh, okay, 167 00:07:40,840 --> 00:07:42,800 Speaker 3: no problems, Like she didn't seem to know what I 168 00:07:42,800 --> 00:07:45,920 Speaker 3: was talking about, which, to be honest, is a bit concerning. 169 00:07:46,280 --> 00:07:48,920 Speaker 3: But that is something that people run into trouble with 170 00:07:49,000 --> 00:07:51,120 Speaker 3: when they say, oh, I want to go and get 171 00:07:51,120 --> 00:07:54,160 Speaker 3: a home loan. They don't realize that just having a 172 00:07:54,200 --> 00:07:58,680 Speaker 3: credit card actually impacts how much you can borrow. Why 173 00:07:58,880 --> 00:07:59,040 Speaker 3: is that? 174 00:07:59,320 --> 00:08:01,680 Speaker 4: So when you do you go and I don't know, 175 00:08:01,760 --> 00:08:02,960 Speaker 4: do you apply for a credit card? 176 00:08:03,000 --> 00:08:06,960 Speaker 2: I had? So will they tell you that straight up 177 00:08:07,000 --> 00:08:10,440 Speaker 2: that this potentially why would they do that? Yeah, you're right, 178 00:08:10,560 --> 00:08:14,240 Speaker 2: it's not in their best interest you ah damn credit 179 00:08:14,280 --> 00:08:16,560 Speaker 2: card companies. But do you know what I was actually 180 00:08:16,640 --> 00:08:18,720 Speaker 2: very confused about, and this is probably not a good 181 00:08:18,760 --> 00:08:20,920 Speaker 2: thing to share, but you know what, we're open, We're 182 00:08:20,920 --> 00:08:21,600 Speaker 2: a family here. 183 00:08:21,760 --> 00:08:22,200 Speaker 4: Yeah. 184 00:08:22,280 --> 00:08:24,840 Speaker 3: I was shocked at how easy it was to get 185 00:08:24,880 --> 00:08:25,720 Speaker 3: that credit card. 186 00:08:26,320 --> 00:08:27,640 Speaker 4: Okay, So I went. 187 00:08:27,560 --> 00:08:30,880 Speaker 3: And got it or what like just over twelve months 188 00:08:30,960 --> 00:08:34,680 Speaker 3: ago for work stuff, I needed one because like whatever 189 00:08:34,760 --> 00:08:37,560 Speaker 3: supplier I was buying from would only accept credit card 190 00:08:37,600 --> 00:08:39,880 Speaker 3: because they were overseas and all of this other stuff. 191 00:08:39,920 --> 00:08:42,960 Speaker 3: And I talk often about how it's really important to 192 00:08:43,000 --> 00:08:45,000 Speaker 3: not rely on credit cards, and you know, there is 193 00:08:45,040 --> 00:08:47,080 Speaker 3: actually no excuse, and in my book I talk about 194 00:08:47,120 --> 00:08:49,360 Speaker 3: all of the myths that you don't need one for, 195 00:08:49,679 --> 00:08:51,679 Speaker 3: And to be honest, it was just me taking the 196 00:08:51,760 --> 00:08:55,280 Speaker 3: easy option out. I wasn't trying to go, Okay, cool, 197 00:08:55,280 --> 00:08:57,320 Speaker 3: well I need one, but I've told everybody else you don't. 198 00:08:57,440 --> 00:08:59,079 Speaker 3: I'm sure there was a work around. I'm sure I 199 00:08:59,120 --> 00:09:01,480 Speaker 3: could have like asked them for bank deposits or whatever. 200 00:09:01,559 --> 00:09:04,080 Speaker 3: It just in that moment, because I was buying from 201 00:09:04,120 --> 00:09:06,760 Speaker 3: an overseas supplier, it felt a lot safer to have 202 00:09:06,800 --> 00:09:09,720 Speaker 3: a credit card in between, because I didn't really know them. Anyway. 203 00:09:09,920 --> 00:09:11,719 Speaker 3: You're welcome for the notebooks that are coming to the 204 00:09:11,760 --> 00:09:15,480 Speaker 3: shees on the money website, But applying for it, I 205 00:09:15,520 --> 00:09:17,679 Speaker 3: was like, oh, this will take ages, like this might 206 00:09:17,720 --> 00:09:20,520 Speaker 3: not be worth it. Went on the website, filled in 207 00:09:20,559 --> 00:09:22,880 Speaker 3: all of my details. I approved immediately, and they said, 208 00:09:22,920 --> 00:09:25,319 Speaker 3: your card's going to be sent out in X amount 209 00:09:25,360 --> 00:09:25,959 Speaker 3: of days, and. 210 00:09:26,040 --> 00:09:26,680 Speaker 4: What the devil? 211 00:09:27,040 --> 00:09:30,560 Speaker 3: Yeah, Like, obviously I have an income and I, you know, 212 00:09:30,679 --> 00:09:32,720 Speaker 3: am good with money, so didn't have a bad credit 213 00:09:32,720 --> 00:09:35,480 Speaker 3: score or whatever. Maybe that contributed to it, but just like, 214 00:09:35,520 --> 00:09:39,160 Speaker 3: the hurdle to get a credit card was terrifyingly low, 215 00:09:39,760 --> 00:09:42,640 Speaker 3: and I remember being like, surely that's not it, Like 216 00:09:42,679 --> 00:09:44,320 Speaker 3: because they just got me to upload a copy of 217 00:09:44,320 --> 00:09:46,880 Speaker 3: my driver's license, which is obviously really easy. It's twenty 218 00:09:46,920 --> 00:09:48,800 Speaker 3: twenty one, so you just like snap it on your phone. 219 00:09:48,840 --> 00:09:52,160 Speaker 3: And I was like, what, that's it. No one called me, 220 00:09:52,240 --> 00:09:53,959 Speaker 3: no one spoke to me, and then three days. 221 00:09:53,840 --> 00:09:55,680 Speaker 4: Later my mailbox interaction. 222 00:09:55,880 --> 00:09:57,960 Speaker 3: Three days later, in my mailbox, I had a credit 223 00:09:58,000 --> 00:09:59,920 Speaker 3: card that I could have slipped into a lot of debt. 224 00:10:00,240 --> 00:10:02,600 Speaker 3: I'm not saying I did. Obviously I don't even have 225 00:10:02,640 --> 00:10:05,560 Speaker 3: that credit card anymore. But I was like, what the devil. 226 00:10:05,840 --> 00:10:09,320 Speaker 2: I'm there pretty tight regulations around credit cards these days 227 00:10:09,440 --> 00:10:12,680 Speaker 2: that after paying stuff don't have to subscribe. 228 00:10:12,240 --> 00:10:14,680 Speaker 3: To Yeah, so we'll get into that, I think in 229 00:10:14,720 --> 00:10:18,760 Speaker 3: an entirely different episode, because there's a whole range of 230 00:10:18,800 --> 00:10:21,880 Speaker 3: stuff going on at the moment that I am personally 231 00:10:21,920 --> 00:10:24,480 Speaker 3: not very comfortable with. But I kind of did it 232 00:10:24,480 --> 00:10:26,400 Speaker 3: as like a little test, because you know, I always 233 00:10:26,400 --> 00:10:28,600 Speaker 3: talk about credit cards and how easy they are to get, 234 00:10:28,600 --> 00:10:30,199 Speaker 3: and I was kind of like, as much as I 235 00:10:30,240 --> 00:10:32,120 Speaker 3: could have done something else, I was like, Okay, you 236 00:10:32,120 --> 00:10:34,079 Speaker 3: know what, I'll just do this and see what happens. 237 00:10:34,120 --> 00:10:37,640 Speaker 3: And like, obviously I know money better than the average bear, 238 00:10:37,720 --> 00:10:40,960 Speaker 3: I would say, And yeah, I was still shocked that, 239 00:10:41,040 --> 00:10:43,800 Speaker 3: after the Royal Commission, after you know, the responsible lending 240 00:10:43,880 --> 00:10:45,640 Speaker 3: laws have come in, that it was so easy. And 241 00:10:45,679 --> 00:10:48,959 Speaker 3: I mean, I'm personally what people would call a clean skin, 242 00:10:49,120 --> 00:10:50,840 Speaker 3: like I don't have any bad debt. You know, I 243 00:10:50,880 --> 00:10:53,560 Speaker 3: don't have any bad credit history. I've had a personal 244 00:10:53,600 --> 00:10:56,480 Speaker 3: loan historically, which you guys know about. But you know, 245 00:10:56,600 --> 00:11:00,440 Speaker 3: I was an easy target. But like, imagine if I 246 00:11:00,559 --> 00:11:02,679 Speaker 3: was going through a rough time and really needed that, 247 00:11:02,720 --> 00:11:04,839 Speaker 3: I could have easily gone from being what a lender 248 00:11:04,960 --> 00:11:07,320 Speaker 3: refers to as a clean skin, which is somebody that's 249 00:11:07,320 --> 00:11:09,040 Speaker 3: really easy to lend you because they've got no bad 250 00:11:09,080 --> 00:11:12,040 Speaker 3: credit history, to somebody who has six thousand dollars worth 251 00:11:12,040 --> 00:11:16,439 Speaker 3: of credit card debt essentially overnight. Like anyway, that's my ranch. No, 252 00:11:16,640 --> 00:11:19,120 Speaker 3: I love we're talking about credit scores, not Victoria's credit 253 00:11:19,160 --> 00:11:19,880 Speaker 3: card tests. 254 00:11:21,360 --> 00:11:24,480 Speaker 2: Okay, well, back to credit scores then, thank youth, And 255 00:11:24,480 --> 00:11:26,120 Speaker 2: on the home loan chat that we were kind of 256 00:11:26,120 --> 00:11:29,199 Speaker 2: having before. Ye, So if you have a bad credit score, 257 00:11:29,200 --> 00:11:31,559 Speaker 2: does that mean that you're less likely to be able 258 00:11:31,559 --> 00:11:33,120 Speaker 2: to be a proof for a homeland? 259 00:11:33,280 --> 00:11:36,360 Speaker 3: Yes. And the reason is because the credit score is 260 00:11:36,440 --> 00:11:39,559 Speaker 3: essentially like saying, hey, is Georgie a good person to 261 00:11:39,640 --> 00:11:42,200 Speaker 3: lend money to? And they'll go, oh, let's check her 262 00:11:42,200 --> 00:11:44,720 Speaker 3: credit score and see what her history is like. And 263 00:11:44,760 --> 00:11:48,680 Speaker 3: they'll go, oh, she didn't pay back the water company, 264 00:11:48,840 --> 00:11:53,319 Speaker 3: she skips her phone bill consistently. Oh, we don't feel 265 00:11:53,320 --> 00:11:55,840 Speaker 3: that comfortable giving her a home loan because we just 266 00:11:55,840 --> 00:11:58,400 Speaker 3: don't feel like she, you know, is a responsible person 267 00:11:58,480 --> 00:12:01,880 Speaker 3: and is actually going to pay that back. So for them, 268 00:12:02,080 --> 00:12:04,640 Speaker 3: it's actually just them doing their due diligence and going, 269 00:12:04,760 --> 00:12:06,480 Speaker 3: is you a dry good person to lend to? And 270 00:12:06,520 --> 00:12:09,120 Speaker 3: then your credit score is essentially saying, oh, she's a 271 00:12:09,120 --> 00:12:12,319 Speaker 3: bit riskier than this other person. That's again what the 272 00:12:12,440 --> 00:12:15,080 Speaker 3: lenders call a clean skin and a good person to 273 00:12:15,160 --> 00:12:17,720 Speaker 3: lend to. They'll go, yeah, just say no to Georgery 274 00:12:17,720 --> 00:12:20,560 Speaker 3: and give it to somebody else, and That's why for 275 00:12:20,679 --> 00:12:23,240 Speaker 3: a lot of people who have a bad credit history, 276 00:12:23,400 --> 00:12:26,880 Speaker 3: it's very hard to secure a home loan. They might 277 00:12:26,920 --> 00:12:29,560 Speaker 3: have more than twenty percent in savings in their accounts, 278 00:12:29,640 --> 00:12:32,800 Speaker 3: they might have no personal debt, but their history says 279 00:12:32,840 --> 00:12:35,360 Speaker 3: that they're not a good person to lend to. So 280 00:12:35,440 --> 00:12:37,880 Speaker 3: they've got to work really hard to one get over 281 00:12:37,920 --> 00:12:40,800 Speaker 3: that and create good credit history. And the way, you know, 282 00:12:40,840 --> 00:12:42,520 Speaker 3: we'll get into that. I'm sure you're gonna ask me 283 00:12:42,559 --> 00:12:45,000 Speaker 3: how do we get a better credit more soon? But 284 00:12:45,600 --> 00:12:47,560 Speaker 3: there are a number of strategies and ways that you 285 00:12:47,600 --> 00:12:49,600 Speaker 3: can build your credit score back up. But it can 286 00:12:49,640 --> 00:12:52,320 Speaker 3: be really disheartening. And the reason it can be really 287 00:12:52,320 --> 00:12:54,920 Speaker 3: disheartening is because too many people don't think about their 288 00:12:54,920 --> 00:12:57,920 Speaker 3: credit scores early enough, Like it's not something that you 289 00:12:57,960 --> 00:13:01,280 Speaker 3: consider until you're actually talking to the broker, right, why 290 00:13:01,280 --> 00:13:01,679 Speaker 3: would you. 291 00:13:01,640 --> 00:13:04,319 Speaker 2: Look into it totally? And I think people dismiss them. 292 00:13:04,320 --> 00:13:05,960 Speaker 2: And I've seen this in our group quite a bit 293 00:13:06,000 --> 00:13:08,040 Speaker 2: because they're like, that's an American thing, it doesn't matter. 294 00:13:08,280 --> 00:13:11,040 Speaker 2: They look at your savings, your income and all of 295 00:13:11,160 --> 00:13:14,280 Speaker 2: that jag, but not necessarily your credit score. So what 296 00:13:14,320 --> 00:13:16,400 Speaker 2: I'm hearing is that it actually is a bigger deal. 297 00:13:17,240 --> 00:13:20,040 Speaker 3: It's a big deal because it's reflective of whether you're 298 00:13:20,080 --> 00:13:22,520 Speaker 3: a good person to lend to or not. And furthering 299 00:13:22,600 --> 00:13:26,000 Speaker 3: on on that conversation, a lot of people this this 300 00:13:26,040 --> 00:13:27,959 Speaker 3: is going to sound really dramatic, and I don't mean 301 00:13:28,000 --> 00:13:30,079 Speaker 3: it to sound dramatic, but we're talking about money on 302 00:13:30,120 --> 00:13:34,800 Speaker 3: a money podcast. I know people who have been so 303 00:13:34,920 --> 00:13:36,840 Speaker 3: excited they've been saving for their first home and then 304 00:13:36,840 --> 00:13:38,720 Speaker 3: they go to borrow money, and they go to the bank, 305 00:13:38,760 --> 00:13:41,640 Speaker 3: and then they find out that somebody else has fraudulently 306 00:13:41,800 --> 00:13:45,040 Speaker 3: used their identity and on their credit history are things 307 00:13:45,040 --> 00:13:48,360 Speaker 3: that aren't actually related to them, And that is why 308 00:13:48,400 --> 00:13:50,640 Speaker 3: we need to be on top of our credit score 309 00:13:51,040 --> 00:13:55,040 Speaker 3: and understand exactly what that is like. G do you 310 00:13:55,080 --> 00:13:58,120 Speaker 3: know if there's anything a miss on your credit history 311 00:13:58,200 --> 00:14:00,520 Speaker 3: right now? I would have no idea exactly. So that 312 00:14:00,679 --> 00:14:02,440 Speaker 3: is why we need to just go and check, even 313 00:14:02,480 --> 00:14:05,640 Speaker 3: if we're not planning on purchasing at any point in 314 00:14:05,679 --> 00:14:08,920 Speaker 3: the future. It's also a really good indicator of any 315 00:14:09,000 --> 00:14:12,199 Speaker 3: loans that have been taken out in your name. Unfortunately, 316 00:14:12,440 --> 00:14:15,000 Speaker 3: we had a money diarist recently who was telling us 317 00:14:15,000 --> 00:14:17,200 Speaker 3: about how her partner had left her with a whole 318 00:14:17,200 --> 00:14:20,760 Speaker 3: heap of debt and that came up on her credit 319 00:14:20,760 --> 00:14:23,600 Speaker 3: score because they had taken out a whole heap of 320 00:14:23,680 --> 00:14:26,480 Speaker 3: loans in her name, and while she kind of knew 321 00:14:26,520 --> 00:14:28,680 Speaker 3: what it was, she didn't know the volume of it 322 00:14:28,800 --> 00:14:31,280 Speaker 3: until she saw, oh, what do you mean, there's a 323 00:14:31,320 --> 00:14:33,920 Speaker 3: loan with X bank? Like I didn't know about that 324 00:14:33,920 --> 00:14:37,480 Speaker 3: one either, and then had to contact them and say, hey, like, 325 00:14:37,600 --> 00:14:40,440 Speaker 3: man named Victoria, I'm a client of yours, but I 326 00:14:40,480 --> 00:14:43,280 Speaker 3: don't know And essentially it was in her name. It 327 00:14:43,320 --> 00:14:45,880 Speaker 3: looked like there had been forged signatures, and it's an 328 00:14:45,920 --> 00:14:50,760 Speaker 3: absolute circus. But it's not just people stealing your identity 329 00:14:50,840 --> 00:14:54,080 Speaker 3: who are overseas doing this. It's actually quite common in 330 00:14:54,120 --> 00:14:57,600 Speaker 3: financially abusive relationships for a partner to apply for credit 331 00:14:57,640 --> 00:14:59,800 Speaker 3: in your name. And it's just a good idea, just 332 00:15:00,160 --> 00:15:03,040 Speaker 3: little bit of a check up. It's like financial hygiene. 333 00:15:03,080 --> 00:15:05,880 Speaker 3: I'm not saying check every ten minutes or every month, 334 00:15:05,960 --> 00:15:08,720 Speaker 3: but like every couple of years. I would have a look, 335 00:15:08,800 --> 00:15:11,800 Speaker 3: like I would recommend maybe once a year, like don't 336 00:15:11,800 --> 00:15:15,480 Speaker 3: do it too often because it's not necessary and you know, 337 00:15:15,520 --> 00:15:18,080 Speaker 3: we don't want to go overboard, but like just be 338 00:15:18,160 --> 00:15:21,440 Speaker 3: in check you know, maybe new financial year, new you 339 00:15:21,520 --> 00:15:22,840 Speaker 3: check in on your finances. 340 00:15:23,440 --> 00:15:26,720 Speaker 2: Love it so b If you have been the subject 341 00:15:26,840 --> 00:15:29,640 Speaker 2: of that kind of fraud, or you've had an abusive 342 00:15:29,640 --> 00:15:32,480 Speaker 2: partner who has taken advantage of your credit score and 343 00:15:32,520 --> 00:15:35,640 Speaker 2: it's plummeted, can you resolve that and fix that? 344 00:15:35,840 --> 00:15:36,040 Speaker 3: Yeah? 345 00:15:36,200 --> 00:15:38,600 Speaker 4: Okay, good, Look, there's two ways about it. 346 00:15:38,680 --> 00:15:40,360 Speaker 3: Like, at the end of the day, if let's use 347 00:15:40,400 --> 00:15:42,920 Speaker 3: an example, someone took out a ten thousand dollars personal 348 00:15:43,000 --> 00:15:46,160 Speaker 3: loan in your name, G and all of the documentation 349 00:15:46,280 --> 00:15:48,640 Speaker 3: says it was you. The first thing I would do 350 00:15:48,920 --> 00:15:51,040 Speaker 3: is call the bank and have a chat to whatever 351 00:15:51,080 --> 00:15:54,040 Speaker 3: Lenda that was, whoever it was, and just be honest, Hey, 352 00:15:54,160 --> 00:15:55,880 Speaker 3: I don't know about this. I don't know what it 353 00:15:56,000 --> 00:15:58,200 Speaker 3: is or what's going on, and they're going to step 354 00:15:58,240 --> 00:16:00,240 Speaker 3: you through their process. I'm not saying they going to 355 00:16:00,280 --> 00:16:02,320 Speaker 3: wipe the debt and it'll all be well and good like. 356 00:16:02,480 --> 00:16:06,160 Speaker 3: Unfortunately that's not the case for ninety nine percent of people, 357 00:16:06,520 --> 00:16:09,480 Speaker 3: but most banks are really understanding because it's actually a 358 00:16:09,560 --> 00:16:12,320 Speaker 3: lapse of judgment on their behalf as well. Yeah, because 359 00:16:12,360 --> 00:16:14,720 Speaker 3: that loan has gone out and you're saying that you 360 00:16:14,720 --> 00:16:18,640 Speaker 3: didn't do that that's fraudulent. Activity like that is ajailable. 361 00:16:18,640 --> 00:16:22,160 Speaker 3: Events like that is fraud. And so they're going to 362 00:16:22,240 --> 00:16:25,040 Speaker 3: take that accusation pretty seriously and work out with you 363 00:16:25,320 --> 00:16:27,800 Speaker 3: how that works and what's going on. And if you 364 00:16:28,040 --> 00:16:31,240 Speaker 3: have something on your credit score that you're very worried 365 00:16:31,280 --> 00:16:33,160 Speaker 3: about and you're not sure what to do, our friends 366 00:16:33,200 --> 00:16:37,040 Speaker 3: at the National Debt Helpline are geniuses at this. They 367 00:16:37,120 --> 00:16:39,600 Speaker 3: know exactly what to do, who to talk to, where 368 00:16:39,640 --> 00:16:43,280 Speaker 3: to go for every single different situation. So if that 369 00:16:43,480 --> 00:16:46,720 Speaker 3: is you call them, talk to them. They are going 370 00:16:46,800 --> 00:16:49,480 Speaker 3: to help you in a way that goes beyond anything 371 00:16:49,480 --> 00:16:52,800 Speaker 3: a podcast can teach you. So go chat to them 372 00:16:53,440 --> 00:16:55,240 Speaker 3: and remember that they're nice humans and I feel like 373 00:16:55,240 --> 00:16:57,560 Speaker 3: we took about them a lot in podcasts. It's not 374 00:16:57,560 --> 00:17:00,680 Speaker 3: sponsored again, they're just good Eggs, good. 375 00:17:00,600 --> 00:17:03,000 Speaker 2: Things, Great egg So we will link that website in 376 00:17:03,040 --> 00:17:05,760 Speaker 2: the show notes. And the number, just to jot it 377 00:17:05,840 --> 00:17:08,320 Speaker 2: in here now is one eight hundred zero zero seven 378 00:17:08,480 --> 00:17:09,479 Speaker 2: zero zero seven. 379 00:17:09,640 --> 00:17:11,600 Speaker 3: I always remember that off the top of my head 380 00:17:11,640 --> 00:17:15,240 Speaker 3: because it's like one eight hundred bond bond exactly. Yeah, 381 00:17:15,280 --> 00:17:16,440 Speaker 3: like they're gonna save. 382 00:17:16,320 --> 00:17:19,399 Speaker 4: You a bond. 383 00:17:19,920 --> 00:17:22,840 Speaker 2: Alrighty, So back to the home loan thing v On 384 00:17:22,920 --> 00:17:25,640 Speaker 2: the flip side of that, if you don't have a 385 00:17:25,680 --> 00:17:30,640 Speaker 2: strong credit score, because maybe you've never had a credit card, 386 00:17:30,720 --> 00:17:32,600 Speaker 2: or you haven't taken many loans, like you don't have 387 00:17:32,640 --> 00:17:35,840 Speaker 2: a very big history of being seen to be responsible 388 00:17:35,840 --> 00:17:38,280 Speaker 2: with money because you just haven't really touched loans or 389 00:17:38,320 --> 00:17:41,520 Speaker 2: anything like that. Does will that hinder my ability to 390 00:17:42,119 --> 00:17:42,800 Speaker 2: buy property? 391 00:17:43,080 --> 00:17:46,120 Speaker 3: No? So yes and no. But it's twenty twenty one. 392 00:17:46,520 --> 00:17:50,520 Speaker 3: Who doesn't have a phone, who doesn't have a mobile bill? 393 00:17:51,000 --> 00:17:51,960 Speaker 4: I can't think of anyone. 394 00:17:52,040 --> 00:17:55,040 Speaker 3: Yeah, exactly, So I think that it is pretty uncommon 395 00:17:55,080 --> 00:17:58,760 Speaker 3: for people to have an entirely clear credit history, unless 396 00:17:58,880 --> 00:18:01,200 Speaker 3: your parents still pay for your phone, in which case 397 00:18:01,240 --> 00:18:03,120 Speaker 3: it's a good idea to start just getting a few 398 00:18:03,160 --> 00:18:05,920 Speaker 3: things in your name. I'm not saying go into credit. 399 00:18:05,960 --> 00:18:08,720 Speaker 3: We're not talking about personal loans, but having things like 400 00:18:08,720 --> 00:18:10,760 Speaker 3: the electricity bill in your name as much as it 401 00:18:10,840 --> 00:18:14,119 Speaker 3: is a responsibility, especially if you're in a sharehouse, like, 402 00:18:14,200 --> 00:18:16,880 Speaker 3: nobody wants the electricity bill in their name, right, They 403 00:18:16,920 --> 00:18:18,760 Speaker 3: all want the other people to have that in their name, 404 00:18:18,760 --> 00:18:21,400 Speaker 3: and I'll pay you like, but it's your responsibility, right 405 00:18:21,640 --> 00:18:24,359 Speaker 3: that can actually pay off over the long term. But 406 00:18:24,720 --> 00:18:26,800 Speaker 3: flip side, of that. If you're going to take the 407 00:18:26,880 --> 00:18:29,399 Speaker 3: responsibility of having the electricity bill in your name for 408 00:18:29,400 --> 00:18:32,480 Speaker 3: your sharehouse and people aren't paying you, that could negatively 409 00:18:32,520 --> 00:18:35,840 Speaker 3: impact your credit score and that is not fair on you. 410 00:18:35,920 --> 00:18:38,800 Speaker 3: If you're late on payments because your housemates didn't pay 411 00:18:39,000 --> 00:18:41,440 Speaker 3: and therefore you've waited to pay, does that make sense. 412 00:18:41,880 --> 00:18:43,960 Speaker 3: So we need to be on top of these things 413 00:18:44,000 --> 00:18:46,720 Speaker 3: and actually understand what it means long term for us. 414 00:18:47,119 --> 00:18:49,040 Speaker 3: But at the same time, if you're like cool, like 415 00:18:49,119 --> 00:18:51,280 Speaker 3: I'm moving in with Gking, I'm going to have the 416 00:18:51,280 --> 00:18:53,640 Speaker 3: electricity bill in my name, it's not a bad thing. 417 00:18:53,680 --> 00:18:55,200 Speaker 3: In fact, it's going to help me build my credit 418 00:18:55,200 --> 00:18:55,920 Speaker 3: score a little bit. 419 00:18:57,160 --> 00:18:59,120 Speaker 2: So basically, what you're saying here is I don't need 420 00:18:59,119 --> 00:19:01,320 Speaker 2: a credit card, because you do hear that as well. 421 00:19:01,359 --> 00:19:02,840 Speaker 2: You hear people saying you need a credit card to 422 00:19:02,880 --> 00:19:05,760 Speaker 2: get because you need okay call no, let's shut that. 423 00:19:05,800 --> 00:19:07,960 Speaker 3: If you take anything from this, it is that you 424 00:19:08,119 --> 00:19:11,280 Speaker 3: do not need a credit card to get a home loan. 425 00:19:11,600 --> 00:19:14,199 Speaker 3: In fact, it hinders you more than it helps. You 426 00:19:14,960 --> 00:19:17,760 Speaker 3: do the right thing. Pay your bills on time, pay 427 00:19:17,800 --> 00:19:20,959 Speaker 3: your phone bill, don't go into debt, and your credit 428 00:19:21,000 --> 00:19:23,360 Speaker 3: score is going to look delightful. 429 00:19:23,040 --> 00:19:25,240 Speaker 4: A strong message to head to the break with. 430 00:19:25,440 --> 00:19:28,640 Speaker 2: I think after the break we will be hearing our 431 00:19:28,640 --> 00:19:31,680 Speaker 2: community is most pressing at credit score questions as well. 432 00:19:31,720 --> 00:19:34,560 Speaker 4: So please, guys, do not go anywhere nowhere, come back 433 00:19:34,600 --> 00:19:35,000 Speaker 4: after this. 434 00:19:44,480 --> 00:19:47,480 Speaker 2: Alrighty guys, please remember as well that conversations like the 435 00:19:47,480 --> 00:19:50,000 Speaker 2: one we're having about credit scores, they happen every day 436 00:19:50,040 --> 00:19:53,080 Speaker 2: on our brooming Facebook page, and there's one hundred and 437 00:19:53,119 --> 00:19:54,280 Speaker 2: eighty one thousand of us. 438 00:19:54,760 --> 00:19:56,919 Speaker 3: Now we have so many friends we are allowed to 439 00:19:56,960 --> 00:19:59,679 Speaker 3: just consider them friends. They are friends, yeah, No, and 440 00:19:59,720 --> 00:20:01,920 Speaker 3: I know they are friends, but like so many people 441 00:20:01,920 --> 00:20:04,600 Speaker 3: will be like Victoria, Well people in a Facebook group 442 00:20:04,720 --> 00:20:06,360 Speaker 3: you had, but it's mine. 443 00:20:06,080 --> 00:20:09,639 Speaker 2: But you recently turned thirty, you had to postpone your party, 444 00:20:10,080 --> 00:20:12,639 Speaker 2: so maybe disappointing. Maybe you could extend the invite to 445 00:20:12,640 --> 00:20:14,080 Speaker 2: the one hundred and eighty one thousand people in the 446 00:20:14,080 --> 00:20:15,600 Speaker 2: Facebook group if they are your true friends, you know 447 00:20:15,600 --> 00:20:16,040 Speaker 2: what I'm saying. 448 00:20:16,160 --> 00:20:18,520 Speaker 3: Yeah, but if you guys are my true friends, you'll 449 00:20:18,600 --> 00:20:23,159 Speaker 3: understand that that's not in my budget. Respect. Can you 450 00:20:23,240 --> 00:20:26,399 Speaker 3: imagine I can have a webinara or something? 451 00:20:26,520 --> 00:20:28,920 Speaker 4: How many people go to music festivals? 452 00:20:29,080 --> 00:20:33,679 Speaker 3: I don't know. I'm literally, I'm not a music festival person. 453 00:20:33,720 --> 00:20:36,600 Speaker 3: I would have no idea what I can't tell by 454 00:20:36,600 --> 00:20:37,160 Speaker 3: the pearls. 455 00:20:39,640 --> 00:20:42,120 Speaker 2: Yeah, okay, So the moral of that story was join 456 00:20:42,200 --> 00:20:45,240 Speaker 2: us on Facebook, Instagram, TikTok because. 457 00:20:46,720 --> 00:20:49,080 Speaker 3: That Victoria will not be having a birthday. 458 00:20:49,800 --> 00:20:50,480 Speaker 4: Shut it down. 459 00:20:51,040 --> 00:20:54,040 Speaker 2: Okay, back to things Vicky day. Joanna from the group 460 00:20:54,080 --> 00:20:56,440 Speaker 2: said that she's heard it's a good idea to check 461 00:20:56,520 --> 00:20:59,040 Speaker 2: your credit score once a year. You did mention this earlier, 462 00:20:59,240 --> 00:20:59,960 Speaker 2: so you would agree. 463 00:21:00,320 --> 00:21:02,000 Speaker 3: Well, I mean, what did I say earlier? 464 00:21:02,119 --> 00:21:04,840 Speaker 4: Yeah, so scrap that question. You answered it earlier. 465 00:21:05,520 --> 00:21:06,560 Speaker 3: It's so good, But. 466 00:21:06,680 --> 00:21:07,960 Speaker 4: Why would a good time? 467 00:21:08,040 --> 00:21:10,320 Speaker 3: Checking once a year is a really good plan. We 468 00:21:10,359 --> 00:21:11,840 Speaker 3: don't want to look at it all the time because 469 00:21:11,840 --> 00:21:14,320 Speaker 3: it's not overly helpful for our mental health. But it's 470 00:21:14,359 --> 00:21:16,480 Speaker 3: also not overly helpful because it's not going to change 471 00:21:16,560 --> 00:21:19,320 Speaker 3: day to day. But once a year or so is 472 00:21:19,359 --> 00:21:21,520 Speaker 3: a pretty good idea to make sure that you are 473 00:21:21,560 --> 00:21:23,000 Speaker 3: on track and nothing is a ry. 474 00:21:23,560 --> 00:21:31,080 Speaker 4: Okay, cool, cool, cool, She's lost the plot now. 475 00:21:31,080 --> 00:21:32,880 Speaker 2: There was also a bit of chat in the group 476 00:21:32,920 --> 00:21:36,159 Speaker 2: about how checking your credit report could potentially worsen your 477 00:21:36,160 --> 00:21:36,720 Speaker 2: credit score. 478 00:21:37,040 --> 00:21:39,520 Speaker 4: You mentioned this before when you were talking about hard 479 00:21:39,600 --> 00:21:41,879 Speaker 4: inquiries and soft inquirs. 480 00:21:41,880 --> 00:21:46,080 Speaker 3: Back to another episode of myth Busters. No, it's a myth. 481 00:21:46,200 --> 00:21:49,840 Speaker 3: So checking your credit report doesn't worse in your credit score. 482 00:21:49,920 --> 00:21:51,760 Speaker 3: As I said before, there are some good ways to 483 00:21:51,840 --> 00:21:53,400 Speaker 3: check it and some bad ways to check it. And 484 00:21:53,440 --> 00:21:56,240 Speaker 3: as we mentioned with there's the soft check and then 485 00:21:56,280 --> 00:21:57,840 Speaker 3: the hard check. We don't want to be doing the 486 00:21:57,920 --> 00:22:01,040 Speaker 3: hard checks. But if you go to our Wiser again 487 00:22:01,119 --> 00:22:03,960 Speaker 3: not sponsored, just good and it's one of those things 488 00:22:03,960 --> 00:22:07,000 Speaker 3: where we're working with all these people that I genuinely 489 00:22:07,000 --> 00:22:10,320 Speaker 3: want to promote and like because they're trustworthy and safe, 490 00:22:10,400 --> 00:22:12,600 Speaker 3: and so I'll continue to do that. But if you 491 00:22:12,680 --> 00:22:15,840 Speaker 3: head to the Wiser website, their credit score checker is 492 00:22:15,920 --> 00:22:19,240 Speaker 3: a free credit checker, and it's a soft credit checker. 493 00:22:19,520 --> 00:22:21,560 Speaker 3: So you're going to be okay, but don't feel like 494 00:22:21,760 --> 00:22:24,640 Speaker 3: checking it is going to make you look suspicious. If anything, 495 00:22:24,800 --> 00:22:26,360 Speaker 3: it makes you look like you're on top of your 496 00:22:26,359 --> 00:22:28,280 Speaker 3: finances and not burying your head in the sand. 497 00:22:28,960 --> 00:22:30,439 Speaker 4: Okay, good to know, Good to know. 498 00:22:31,600 --> 00:22:33,440 Speaker 2: And now it's a question that I think a lot 499 00:22:33,480 --> 00:22:35,879 Speaker 2: of people in our group have been waiting for. 500 00:22:36,160 --> 00:22:39,320 Speaker 3: Yeah, okay, So the nail color I use is a 501 00:22:39,440 --> 00:22:41,680 Speaker 3: bubble buff by OPI is that. 502 00:22:41,760 --> 00:22:44,879 Speaker 2: It show me you're wearing it? Now, I can't say anything. 503 00:22:45,040 --> 00:22:46,720 Speaker 2: Is that not just your natural nail? No? 504 00:22:47,160 --> 00:22:47,760 Speaker 4: Of course not. 505 00:22:48,680 --> 00:22:50,560 Speaker 3: Okay, carry on, what was the real question? 506 00:22:50,600 --> 00:22:54,040 Speaker 4: So the real question fun It was funny, It wasn't funny. 507 00:22:54,080 --> 00:22:57,000 Speaker 3: No, No, you're all right, dog, I'm a comedian. Watch 508 00:22:57,040 --> 00:22:58,400 Speaker 3: out Tony Lodge. 509 00:23:00,119 --> 00:23:00,439 Speaker 4: Island. 510 00:23:00,520 --> 00:23:03,320 Speaker 2: From our group, she did raise this question as well, 511 00:23:03,760 --> 00:23:06,400 Speaker 2: how do we go about improving our credit score if 512 00:23:06,400 --> 00:23:08,800 Speaker 2: it is a little down in the dumps. 513 00:23:08,680 --> 00:23:12,120 Speaker 3: If your credit score is not looking that sexy, there 514 00:23:12,200 --> 00:23:14,160 Speaker 3: are a number of things that you can do. First 515 00:23:14,240 --> 00:23:17,239 Speaker 3: is stop panicking, stop stressing. It can be recovered and 516 00:23:17,280 --> 00:23:19,879 Speaker 3: it can go back to good. It does take a 517 00:23:19,920 --> 00:23:22,840 Speaker 3: bit of work, though, So first is understanding why your 518 00:23:22,880 --> 00:23:25,600 Speaker 3: credit score is not good and getting rid of the 519 00:23:25,720 --> 00:23:28,280 Speaker 3: reason it is not good. So, if it's personal debt 520 00:23:28,320 --> 00:23:30,679 Speaker 3: that's not being paid off, let's have a look at that. 521 00:23:30,760 --> 00:23:33,199 Speaker 3: It can be really confronting to do these things. But 522 00:23:33,240 --> 00:23:35,119 Speaker 3: if you've got a personal loan that you can't seem 523 00:23:35,119 --> 00:23:36,760 Speaker 3: to get on top of, the first thing you need 524 00:23:36,800 --> 00:23:39,600 Speaker 3: to do is call that company and have a chat 525 00:23:39,640 --> 00:23:42,600 Speaker 3: about renegotiating that loan, or have a chat with our 526 00:23:42,640 --> 00:23:45,760 Speaker 3: friends at the National Debt Helpline about how you can 527 00:23:45,800 --> 00:23:48,120 Speaker 3: get on top of that, because there's no point doing 528 00:23:48,200 --> 00:23:50,560 Speaker 3: other things to increase your credit score. If you've still 529 00:23:50,560 --> 00:23:53,399 Speaker 3: got this, you know, big elephant in the cupboard? Is 530 00:23:53,400 --> 00:23:54,800 Speaker 3: that a good analogy? I don't know. 531 00:23:55,040 --> 00:23:58,439 Speaker 2: I think it's in the room, but it would be 532 00:23:58,480 --> 00:24:00,280 Speaker 2: absurd if you had a big elephant in the cup 533 00:24:00,960 --> 00:24:02,480 Speaker 2: It's like a skeleton in the closet. 534 00:24:02,680 --> 00:24:05,240 Speaker 3: Yeah, that's what I meant, a skeleton in the closet, 535 00:24:05,280 --> 00:24:05,680 Speaker 3: but I. 536 00:24:05,640 --> 00:24:08,520 Speaker 4: Merged those elephant in the I like it. 537 00:24:09,000 --> 00:24:11,200 Speaker 3: Yeah, But if you've got an elephant in the cupboard, 538 00:24:11,240 --> 00:24:13,160 Speaker 3: like specially get it right. 539 00:24:13,200 --> 00:24:15,200 Speaker 4: Well you can, but it's not going to be easy. 540 00:24:15,359 --> 00:24:19,320 Speaker 3: It's not can you how BIG's your cupboard? G King's 541 00:24:19,359 --> 00:24:22,879 Speaker 3: reach guys. But if there isn't anything like that, you 542 00:24:22,920 --> 00:24:24,919 Speaker 3: can do a few things. So pay your bills on 543 00:24:24,960 --> 00:24:27,520 Speaker 3: time or your loans on time, and consider something If 544 00:24:27,560 --> 00:24:30,800 Speaker 3: you're not that good at remembering, that's okay, use something 545 00:24:30,840 --> 00:24:32,960 Speaker 3: like b pay for bill payment or set up direct 546 00:24:32,960 --> 00:24:35,520 Speaker 3: debits so that you avoid any type of late fees. 547 00:24:35,800 --> 00:24:37,800 Speaker 3: And if you can't pay your bills or loans on time, 548 00:24:37,840 --> 00:24:41,639 Speaker 3: as I said before, talk to your credit provider, talk 549 00:24:41,800 --> 00:24:45,359 Speaker 3: to National Debt Helpline, talk to someone about it. Don't 550 00:24:45,400 --> 00:24:46,800 Speaker 3: just bury your head in the sand and not do 551 00:24:46,880 --> 00:24:49,359 Speaker 3: anything about it. The second is keep on top of it, 552 00:24:49,440 --> 00:24:52,639 Speaker 3: so check your credit score often. Again annually is a 553 00:24:52,640 --> 00:24:55,000 Speaker 3: great place to start. It is the start of July 554 00:24:55,080 --> 00:24:57,920 Speaker 3: at the moment, guys, if you're listening to this podcast 555 00:24:58,000 --> 00:25:00,800 Speaker 3: on the day that it came out, but start of July, 556 00:25:01,000 --> 00:25:03,520 Speaker 3: why not new financial year we do a check. Why 557 00:25:03,560 --> 00:25:06,560 Speaker 3: doesn't that become the norm? Okay, new financial year has started? 558 00:25:06,560 --> 00:25:07,800 Speaker 3: What are the things I need to do. I'm going 559 00:25:07,880 --> 00:25:09,479 Speaker 3: to check in with my budget. I'm going to check 560 00:25:09,520 --> 00:25:11,359 Speaker 3: in with my credit score. I'm going to check in 561 00:25:11,440 --> 00:25:13,240 Speaker 3: with any loans I have to make sure I'm on 562 00:25:13,280 --> 00:25:15,000 Speaker 3: top of it. I'm going to check in with any 563 00:25:15,080 --> 00:25:17,760 Speaker 3: insurances to make sure I'm getting the best possible deal. 564 00:25:18,000 --> 00:25:21,199 Speaker 3: Like now could be the best time to set yourself 565 00:25:21,280 --> 00:25:23,880 Speaker 3: up for the next twelve financial months, which I think 566 00:25:23,960 --> 00:25:26,280 Speaker 3: is really fun. Maybe I get excited about that, you 567 00:25:26,320 --> 00:25:29,239 Speaker 3: get extra excited, but I do it's very fun. The 568 00:25:29,320 --> 00:25:32,240 Speaker 3: next is avoid applying for multiple loans in a short 569 00:25:32,240 --> 00:25:34,560 Speaker 3: period of time. Like I said before, if you've got 570 00:25:34,640 --> 00:25:36,679 Speaker 3: a loan that you want to get. Don't go to 571 00:25:36,800 --> 00:25:39,719 Speaker 3: lots of providers and apply for loans with all of 572 00:25:39,720 --> 00:25:42,600 Speaker 3: them and then hope that you get one. Like that's 573 00:25:42,680 --> 00:25:45,199 Speaker 3: like going fishing and hoping you get something back, but 574 00:25:45,240 --> 00:25:47,880 Speaker 3: you've lost all of the rods. Like that's a really 575 00:25:47,960 --> 00:25:49,119 Speaker 3: bad analogy of. 576 00:25:51,040 --> 00:25:54,399 Speaker 4: What a wrong. I hate it when I go fishing 577 00:25:54,480 --> 00:25:56,760 Speaker 4: in then I lose all the rods. It's the worst. 578 00:25:58,280 --> 00:26:05,400 Speaker 4: I don't even know fishing. I think that is quite obvious. 579 00:26:05,480 --> 00:26:08,920 Speaker 3: Oh no, But essentially a waid applying for multiple loans 580 00:26:08,960 --> 00:26:11,040 Speaker 3: in a short period of time, because that is an 581 00:26:11,080 --> 00:26:16,080 Speaker 3: indicator of financial stress and reliance on credit. And then, last, 582 00:26:16,119 --> 00:26:18,879 Speaker 3: but not least, remember to let your lenders know if 583 00:26:18,920 --> 00:26:21,199 Speaker 3: you move home or get a new email address, and 584 00:26:21,320 --> 00:26:25,000 Speaker 3: keep all of your information and contact details up to date. 585 00:26:25,320 --> 00:26:28,159 Speaker 3: That's really important because if something happens, like you have 586 00:26:28,240 --> 00:26:30,399 Speaker 3: an overdue debt or you know they weren't able to 587 00:26:30,400 --> 00:26:32,919 Speaker 3: debit your account for some reason, you're the first to 588 00:26:32,920 --> 00:26:35,439 Speaker 3: hear about it and you actually can amend it before 589 00:26:35,440 --> 00:26:36,840 Speaker 3: it impacts your credit score. 590 00:26:37,280 --> 00:26:40,080 Speaker 2: That's all for me and my very weird ted took 591 00:26:40,119 --> 00:26:43,360 Speaker 2: loved it, loved it all. Okay, so how long does 592 00:26:43,400 --> 00:26:47,960 Speaker 2: it take roughly to improve a credit score. It's different 593 00:26:48,000 --> 00:26:50,080 Speaker 2: for every book, Okay, Like sometimes there are a few 594 00:26:50,119 --> 00:26:51,840 Speaker 2: things that you can do. And I do know that 595 00:26:52,000 --> 00:26:54,280 Speaker 2: if something is on your credit score and it shouldn't 596 00:26:54,320 --> 00:26:56,280 Speaker 2: be on there at all, there is a way to 597 00:26:56,320 --> 00:26:58,119 Speaker 2: get rid of it. You need to talk again to 598 00:26:58,160 --> 00:27:00,600 Speaker 2: the National Debt Helpline or to your credit provider or 599 00:27:00,640 --> 00:27:02,640 Speaker 2: the person who did it so that they can completely 600 00:27:02,640 --> 00:27:06,600 Speaker 2: eraise that history for you, and that could significantly increase it. 601 00:27:06,680 --> 00:27:09,240 Speaker 2: But again, it could take a couple of months to 602 00:27:09,359 --> 00:27:11,760 Speaker 2: just get back on track. For other people it might 603 00:27:11,840 --> 00:27:14,359 Speaker 2: take a couple of years, just depending on the severity 604 00:27:14,480 --> 00:27:15,760 Speaker 2: of their credit score. 605 00:27:16,640 --> 00:27:19,240 Speaker 4: Okay, so check in now. Basically if you are. 606 00:27:19,560 --> 00:27:21,679 Speaker 3: Just be on top of it. My friends, like, we 607 00:27:21,760 --> 00:27:23,960 Speaker 3: don't need to do anything other than check and just 608 00:27:24,000 --> 00:27:26,240 Speaker 3: make sure our housekeeping is done properly. 609 00:27:27,160 --> 00:27:29,399 Speaker 2: And I can imagine it would be tempting not to 610 00:27:29,480 --> 00:27:31,359 Speaker 2: look if you might be a bit scared, but just 611 00:27:31,480 --> 00:27:34,240 Speaker 2: face it, get it done, rip that band aid off again, 612 00:27:34,359 --> 00:27:35,760 Speaker 2: create a plan from there. 613 00:27:35,800 --> 00:27:38,960 Speaker 3: Not knowing is not helpful, like not knowing doesn't give 614 00:27:38,960 --> 00:27:41,280 Speaker 3: you any power. Knowing it's not great, like you don't 615 00:27:41,320 --> 00:27:43,040 Speaker 3: have to share it with anyone you could check and 616 00:27:43,040 --> 00:27:45,560 Speaker 3: then tell everybody else you didn't check. But just be 617 00:27:45,800 --> 00:27:48,080 Speaker 3: aware of what it is because that is going to 618 00:27:48,119 --> 00:27:50,240 Speaker 3: help you in the future. Like if future you really 619 00:27:50,280 --> 00:27:52,600 Speaker 3: wants to buy a house, go and check your credit 620 00:27:52,640 --> 00:27:54,439 Speaker 3: score to make sure that when they do go to 621 00:27:54,480 --> 00:27:56,240 Speaker 3: do that, there's no nasty surprises. 622 00:27:57,000 --> 00:27:59,439 Speaker 4: Okay, perfect, I think that is a great place to 623 00:27:59,600 --> 00:28:02,320 Speaker 4: leave it for today. V. I'd like to agree, Gking, 624 00:28:02,400 --> 00:28:03,159 Speaker 4: you'd like to agree. 625 00:28:03,359 --> 00:28:05,680 Speaker 2: Just I guess the final little message is again, if 626 00:28:05,680 --> 00:28:08,000 Speaker 2: you are feeling overwhelmed, do head to the National Debt 627 00:28:08,040 --> 00:28:09,919 Speaker 2: helpline linked in our show notes. 628 00:28:09,920 --> 00:28:11,120 Speaker 4: But V, let's leave it. 629 00:28:11,080 --> 00:28:13,120 Speaker 3: There all right, But just before we head off, we'd 630 00:28:13,160 --> 00:28:15,960 Speaker 3: like to acknowledge and pay respect to Australia's Aboriginal and 631 00:28:16,040 --> 00:28:20,080 Speaker 3: Torres Strait islander peoples. They're the traditional custodians of the lands, 632 00:28:20,119 --> 00:28:23,560 Speaker 3: the waterways and the skies all across Australia. We thank 633 00:28:23,600 --> 00:28:25,359 Speaker 3: you for sharing and for caring for the land on 634 00:28:25,400 --> 00:28:27,800 Speaker 3: which we are able to learn. We pay respects to 635 00:28:27,840 --> 00:28:30,280 Speaker 3: eldest past and present, and we share our friendship and 636 00:28:30,320 --> 00:28:31,800 Speaker 3: our kindness. 637 00:28:31,320 --> 00:28:33,600 Speaker 2: And the advice shared on She's on the money is 638 00:28:33,680 --> 00:28:37,000 Speaker 2: general in nature and does not consider your individual circumstances. 639 00:28:37,320 --> 00:28:38,360 Speaker 4: She's on the money. 640 00:28:38,160 --> 00:28:41,240 Speaker 2: Exists purely for educational purposes and should not be relied 641 00:28:41,280 --> 00:28:44,400 Speaker 2: upon to make an investment or a financial decision. And 642 00:28:44,480 --> 00:28:48,200 Speaker 2: we promise Victoria devirone is an authorized representative of Australia 643 00:28:48,240 --> 00:28:52,120 Speaker 2: Pacific Funds Management Proprietary Limited ABN three four one through 644 00:28:52,160 --> 00:28:54,640 Speaker 2: two four six three AT two five seven AFSL three 645 00:28:54,760 --> 00:28:58,400 Speaker 2: three nine one five one. And remember, guys, if you 646 00:28:58,640 --> 00:29:03,120 Speaker 2: do have any big elephants in your cupboard, release them. 647 00:29:03,400 --> 00:29:04,480 Speaker 4: That's not a safe place. 648 00:29:05,280 --> 00:29:12,320 Speaker 3: It's not a safe place to keep elephant weeks. That's 649 00:29:12,400 --> 00:29:13,200 Speaker 3: not a safe thing.