Credit Score Bootcamp

Dena Noe Author

06/18/2025 Added

4 Plays

Description

Join Dena from the University of Nebraska Federal Credit Union to learn about credit scores!

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[00:00:00.000]Welcome everybody to this
[00:00:04.440]session for credit reports and
[00:00:09.620]credit scores.
[00:00:10.920]My name is Deena Noe and I'm
[00:00:12.330]going to be your presenter
[00:00:13.280]today. I'm from the
[00:00:14.120]University of Nebraska Federal
[00:00:15.870]Credit Union. I'm very excited
[00:00:17.410]that we've had
[00:00:18.120]this challenge going on with
[00:00:20.050]Campus Rec for the last couple
[00:00:22.060]weeks. We're, I
[00:00:23.040]believe, in our third week and
[00:00:24.820]one more week to go. Hopefully
[00:00:26.290]everyone's
[00:00:26.760]learning a lot and we'll go
[00:00:28.390]ahead and get started and I
[00:00:30.020]will get our screen up.
[00:00:33.580]Of course, when I try it the
[00:00:56.510]way, it works
[00:00:56.760]great when I did it earlier.
[00:01:00.360]Alright.
[00:01:11.760]Okay, there's my information
[00:01:15.980]but I'm gonna have that at the
[00:01:18.800]end. We're going,
[00:01:19.480]as I said, it's recorded so you
[00:01:21.570]can find my information anytime,
[00:01:23.920]but I'm also on
[00:01:25.020]the website at nufcu.edu.
[00:01:26.580]Okay, I'm going to go ahead and
[00:01:26.580]get started.
[00:01:26.580]Okay, there's my information
[00:01:26.580]but I'm going to have that at
[00:01:26.580]the end. We're going, as I said,
[00:01:26.580]it's recorded so you can find
[00:01:26.580]my information anytime, but I'm
[00:01:26.580]also on the website at nufcu.edu.
[00:01:26.580]Okay, there's my information
[00:01:26.580]but I'm going to have that at
[00:01:26.580]the end. We're going, as I said,
[00:01:26.580]it's recorded so you can find
[00:01:26.580]my information anytime, but I'm
[00:01:26.580]also on the website at nufcu.edu.
[00:01:26.580]dot org. So what is a credit
[00:01:29.670]report? Here's some some
[00:01:32.530]information giving you giving
[00:01:35.830]you a good
[00:01:36.660]idea of where we start. So it's
[00:01:38.700]a history of your bills. But it's
[00:01:40.970]important and we'll cover this
[00:01:43.000]again, but it's just a snapshot.
[00:01:46.380]It's not. While it does
[00:01:49.870]compound on itself, it's just a
[00:01:52.540]moment
[00:01:53.380]in time and you can make
[00:01:54.550]changes to it. It isn't
[00:01:55.820]something that's going to
[00:01:57.270]follow you forever.
[00:01:58.300]As you gradually change, the
[00:02:01.320]score will change as well. And
[00:02:04.830]the credit problems impact your
[00:02:07.180]score
[00:02:07.380]less over time. So what is a
[00:02:09.830]credit report? First of all, it
[00:02:12.830]has all of your information.
[00:02:15.580]It's going to have it is tied
[00:02:17.410]to your social security number.
[00:02:19.840]It has your name, your address.
[00:02:21.660]It has a lot of information.
[00:02:23.380]Maybe some of you remember that
[00:02:25.650]there was a credit bureau
[00:02:27.220]breach probably about seven
[00:02:29.800]years ago.
[00:02:30.200]And that's a little scarier
[00:02:31.860]than any other because it does
[00:02:33.560]have all this information.
[00:02:34.440]And it's not something that you
[00:02:36.100]and I can choose not to
[00:02:37.300]participate in. It's here and
[00:02:39.200]this is what we have. There are
[00:02:40.850]trade lines. So in the credit
[00:02:42.780]bureau, you're going to see
[00:02:45.080]different things that you are
[00:02:47.620]tied to. So you're going to see
[00:02:50.340]your credit cards. You're going
[00:02:52.780]to see
[00:02:53.160]your department store cards.
[00:02:54.720]You're going to see any loan
[00:02:56.040]that you have going on. Those
[00:02:57.720]are going
[00:02:58.000]to each be trade lines. I'm
[00:02:59.780]assuming a lot of you have
[00:03:01.340]already seen a credit bureau.
[00:03:03.440]But if not,
[00:03:04.720]I have one today. I'm going to
[00:03:06.090]show and walk through that with
[00:03:07.470]you. A credit inquiry. So
[00:03:10.080]every time you go out and
[00:03:11.900]search for credit, someone's
[00:03:14.280]going to pull your credit
[00:03:16.320]bureau and
[00:03:16.820]it will show that you have
[00:03:18.400]credit inquiries. This can also
[00:03:20.550]happen for pre-screening. So
[00:03:22.940]if a credit card company out
[00:03:25.160]there is wanting to solicit you
[00:03:27.680]to come get a new credit card,
[00:03:29.900]they can do what they call pre-screen
[00:03:31.930]or a soft pull on your credit.
[00:03:33.630]Find out what your score is
[00:03:35.440]and whether they want to offer
[00:03:36.980]you credit or not. Those will
[00:03:38.570]also show. And we'll talk about
[00:03:40.430]why
[00:03:40.680]these are impactful as we go
[00:03:42.310]through today. Public record or
[00:03:44.330]collection items. Again, just
[00:03:46.690]more
[00:03:46.900]information. Bankruptcy would
[00:03:48.940]be considered a public record
[00:03:50.700]that would be tied to that
[00:03:52.170]credit
[00:03:52.720]bureau. So it has a lot of
[00:03:53.840]information in one spot. Just
[00:03:55.540]some credit facts that I wanted
[00:03:59.070]to
[00:03:59.380]put up here so that we
[00:04:00.570]understand what we're talking
[00:04:02.130]about. So our credit card
[00:04:04.050]balances today
[00:04:05.500]on average for a person here in
[00:04:08.070]the United States is $7,321.
[00:04:11.670]That is up 5.8% over last year.
[00:04:15.220]If
[00:04:15.900]you've been listening to the
[00:04:17.620]news, this will not be a
[00:04:18.780]surprise to you. We've been
[00:04:20.440]hearing it over
[00:04:22.500]turning to their credit cards
[00:04:24.460]because prices are going up and
[00:04:26.510]they no longer can afford their
[00:04:28.540]day
[00:04:28.740]to day things on their debit
[00:04:30.580]card. So they are they are
[00:04:32.420]switching over to credit to to
[00:04:34.420]soften
[00:04:34.960]that gap. Auto loans are twenty
[00:04:37.080]four thousand two hundred
[00:04:39.020]ninety seven. That's up two
[00:04:40.740]point one
[00:04:41.340]percent over last year. A lot
[00:04:43.230]of it has to do with the price
[00:04:44.890]of cars. And that is the reason
[00:04:46.980]that
[00:04:47.160]we're seeing those loan
[00:04:48.530]balances be higher. Student
[00:04:50.220]loans. All of us talk about
[00:04:51.830]that. That continues
[00:04:53.440]to increase. Average is thirty
[00:04:55.130]eight thousand three hundred
[00:04:56.650]and seventy five dollars. That's
[00:04:58.540]that's crushing really when you
[00:05:00.510]when you sit back and look at
[00:05:02.190]this. Mortgages. Again another
[00:05:05.280]increase over last year by
[00:05:06.770]eight thousand dollars. Just
[00:05:08.610]seeing that in mortgages.
[00:05:10.360]So there are different kinds of
[00:05:13.060]scores you might hear out there
[00:05:15.540]but all financial
[00:05:16.820]situations.
[00:05:17.160]Institutions and the credit
[00:05:18.960]bearers use what they call a FICO
[00:05:20.400]score.
[00:05:20.840]As you can read here it was
[00:05:22.610]introduced twenty five years
[00:05:24.740]ago. And that is the standard
[00:05:27.780]that all of the
[00:05:28.880]financial institutions and
[00:05:30.280]other places that are looking
[00:05:31.760]at credit use.
[00:05:32.600]And so if you're looking let's
[00:05:34.850]give you an example of why I
[00:05:36.890]might say well there's other
[00:05:39.080]out there.
[00:05:39.600]If today you go to your online
[00:05:41.670]banking you probably see a
[00:05:43.580]credit score. That is not
[00:05:46.820]most likely is not using FICO.
[00:05:48.860]It's going to use a different
[00:05:50.460]score. So maybe when you walk
[00:05:52.240]in and
[00:05:52.540]you say OK I want to get a car.
[00:05:54.100]We pull a credit and you're
[00:05:55.640]like well my credit says I'm
[00:05:57.370]this. And
[00:05:58.000]we say well no you're at you
[00:05:59.240]know seven hundred and fifty
[00:06:00.600]and you think you're at eight
[00:06:02.000]hundred.
[00:06:02.620]That's why there can be some
[00:06:04.330]variances. And that's because
[00:06:06.410]there are other scores out
[00:06:08.040]there that are
[00:06:09.220]linked to information that you
[00:06:11.170]might see in your online
[00:06:12.670]banking or you might have karma
[00:06:14.700]or you might
[00:06:16.240]go other places to get your
[00:06:17.440]credit score. It could be
[00:06:18.660]different from when you go into
[00:06:19.920]a financial
[00:06:20.380]institution. Most financial
[00:06:21.730]institutions are going to be
[00:06:23.360]using FICO because it's been
[00:06:24.980]around so long.
[00:06:26.040]And then your question would be
[00:06:27.680]you know what exactly is in FICO.
[00:06:29.500]I'm going to try to explain it.
[00:06:31.280]But of course it's proprietary
[00:06:33.110]so they don't share every piece
[00:06:34.990]and bit that.
[00:06:35.900]So of course what is you know
[00:06:38.690]higher scores better. So what
[00:06:41.710]are our score options. It can
[00:06:43.730]be all the way down to the four
[00:06:45.360]hundreds.
[00:06:45.900]I understand from our lenders
[00:06:48.170]that they have seen someone
[00:06:49.240]with a four hundred. I've never
[00:06:50.540]seen it in the time that I've
[00:06:51.770]been
[00:06:52.160]part of pulling credit bureaus.
[00:06:54.200]And then it can be all the way
[00:06:55.810]up to an eight fifty.
[00:06:57.240]So what the standard is usually
[00:07:00.120]anybody that has a seven fifty
[00:07:02.960]or above we're going to
[00:07:04.390]consider that an A plus paper
[00:07:06.220]and that's going to get the
[00:07:07.380]best rate.
[00:07:07.860]Anything seven fifty and below
[00:07:09.530]then things start to go a
[00:07:10.820]little bit where you're going
[00:07:12.390]to get a higher interest rate.
[00:07:14.430]Again we're going to cover that.
[00:07:15.560]The national average as you see
[00:07:17.560]is six ninety five. So all of I'm
[00:07:19.220]sitting here saying seven fifty
[00:07:20.560]and above you're going to get
[00:07:22.100]the best rate while the average
[00:07:23.560]person's at six ninety five.
[00:07:24.860]So most people are not going to
[00:07:26.620]be at that A plus rate where
[00:07:27.900]they're going to get the best
[00:07:29.250]rate.
[00:07:29.560]Of course higher scores
[00:07:33.220]demonstrate a lower risk to
[00:07:34.650]here at any financial
[00:07:35.840]institution and a lower risk is
[00:07:37.510]higher. So that that makes a
[00:07:38.820]lot of sense.
[00:07:39.560]I don't think that's quite
[00:07:40.470]questionable for anybody. This
[00:07:41.830]is a really great slide and
[00:07:43.310]something you can refer to if
[00:07:44.930]you
[00:07:45.220]have questions on that just
[00:07:47.860]looking at those scores and how
[00:07:49.360]we divide them up.
[00:07:50.520]So eight hundred plus
[00:07:52.340]exceptional. But we also
[00:07:53.860]consider anybody at about a
[00:07:55.300]seven fifty here to eight
[00:07:56.900]hundred still being very dependable
[00:07:59.220]Bauer Bauer and we're going to
[00:08:00.880]give you the best rate if you
[00:08:02.470]if you fall within that seven
[00:08:04.180]fifty and above then you know
[00:08:06.220]it's a good score to be six
[00:08:07.520]seventy to seven thirty nine.
[00:08:08.980]But then you're going to start
[00:08:10.640]seeing some differences in the
[00:08:12.380]rate that you're getting.
[00:08:15.220]So some fallacies. My score
[00:08:17.710]determines if I can get a loan.
[00:08:19.220]Of course that is a piece of
[00:08:20.780]what happens when you walk into
[00:08:22.660]a lender but it isn't all of it.
[00:08:25.220]The other parts that the lender
[00:08:27.240]will take into consideration is
[00:08:30.350]your employment history.
[00:08:32.220]They'll also take into it. We
[00:08:33.440]consider debt to income ratio.
[00:08:36.220]So you might walk in to let's
[00:08:38.490]say you're trying to get a
[00:08:39.620]credit card and you know at
[00:08:42.420]least from your you know the
[00:08:43.610]things that you've looked at
[00:08:44.880]you think you're struggling.
[00:08:44.880]You think your scores around an
[00:08:45.790]eight hundred. Maybe you walk
[00:08:47.120]in here and it's around a seven
[00:08:48.490]fifty and and a financial
[00:08:51.250]institution says no I'm not
[00:08:52.390]going to go ahead and get you
[00:08:53.380]that loan.
[00:08:53.880]And the reason they might not
[00:08:55.240]do is debt to income ratio.
[00:08:56.640]So those those that debt that
[00:08:58.790]you might have on a credit card
[00:09:01.080]you already have a car loan you
[00:09:03.300]have your mortgage you have a
[00:09:06.000]department store card you did
[00:09:08.630]same as cash and bought some
[00:09:10.860]furniture at Nebraska Furniture
[00:09:12.460]Mart and you put that on all of
[00:09:14.010]that.
[00:09:14.540]That information is going to be
[00:09:15.700]on that credit bureau and
[00:09:16.750]depending on your income versus
[00:09:18.690]what all of those payments are
[00:09:20.330]a lender could deny you just
[00:09:22.480]for that not only on the score.
[00:09:25.120]Or maybe some of that makes
[00:09:26.600]things better.
[00:09:27.700]Let's say that you're going to
[00:09:28.950]be a new borrower and you don't
[00:09:30.400]have a lot of information on
[00:09:31.640]your credit bureau but we can
[00:09:33.250]see that you have you know a
[00:09:34.840]good income you have a good
[00:09:36.440]history that information so
[00:09:38.330]there are more factors into an
[00:09:40.670]underwriting of a loan than
[00:09:42.290]just that credit score.
[00:09:44.540]A poor score will haunt me
[00:09:46.150]forever just as I said at the
[00:09:47.910]beginning it's a snapshot so it
[00:09:50.010]won't haunt you forever you can
[00:09:51.890]change that credit score and I
[00:09:53.800]think that's why it's nice that
[00:09:55.870]a lot of online banking
[00:09:57.300]products karma different things
[00:09:59.470]that you can get that score
[00:10:00.950]more readily and you can watch
[00:10:02.510]it.
[00:10:02.920]It can tell you whether it's
[00:10:04.230]going up or down and why are
[00:10:05.480]those things happening and it
[00:10:06.930]can give you more information
[00:10:08.230]and the reason I think that's a
[00:10:09.820]great idea is because it is
[00:10:11.080]just a snapshot it isn't
[00:10:12.230]something like okay I've done
[00:10:13.680]this.
[00:10:14.540]to myself now, now I can never
[00:10:16.900]get what, get anywhere. Not
[00:10:19.350]true. You can absolutely do
[00:10:21.860]something
[00:10:22.260]to help that score. And, you
[00:10:24.720]know, if you want more
[00:10:26.410]information after we are done
[00:10:28.730]here,
[00:10:29.400]you can sit down with a lender
[00:10:30.940]and they can go through more
[00:10:32.430]techniques in order to get that
[00:10:34.240]score to go up. Why is it
[00:10:36.130]important? And that's what we
[00:10:38.560]had started about. If your
[00:10:40.720]score is low,
[00:10:41.840]you're going to have a
[00:10:42.790]different interest rate. So
[00:10:44.180]here's just a quick example of
[00:10:45.550]a car loan and
[00:10:46.300]what that difference might be
[00:10:48.000]for you. So I left it at $20,000.
[00:10:50.740]I think all of us here today
[00:10:52.210]will
[00:10:52.660]know that it's going to be kind
[00:10:53.950]of hard unless you get a used
[00:10:55.160]car to get a car at $20,000.
[00:10:57.120]They're a
[00:10:57.660]lot more expensive as we were
[00:10:58.980]talking about, but we put that
[00:11:00.380]at five years. Most people like
[00:11:01.910]to
[00:11:02.100]take out a five-year loan or a
[00:11:03.920]60-month loan when it comes to
[00:11:06.020]an auto loan. Right now here,
[00:11:08.100]our rate
[00:11:08.680]for a 60-year is 4.99%.
[00:11:11.840]So the payment is around $377
[00:11:14.270]when you put it into a
[00:11:15.630]financial calculator.
[00:11:17.520]If your score was lower, let's
[00:11:20.400]say that you didn't qualify for
[00:11:23.270]that $750 and above,
[00:11:26.060]then you're going to be, for
[00:11:27.980]instance, the next level for us
[00:11:30.140]goes all the way up to,
[00:11:31.700]well, we have special for 4.99.
[00:11:33.200]That's where the gap's pretty
[00:11:34.220]high, but 6.24 for that next
[00:11:37.000]level
[00:11:37.520]of interest or your credit
[00:11:39.720]barrel score. So as you can see
[00:11:41.580]here, we have a little bit of a
[00:11:41.840]All of a sudden, your rate's
[00:11:43.610]going to go up and you're going
[00:11:45.500]to pay $389 a month. Now, that's
[00:11:48.310]not
[00:11:48.560]so far that $12 difference,
[00:11:50.930]that maybe that's not going to
[00:11:53.040]impact your decision, but it is
[00:11:55.480]something
[00:11:55.680]to keep in mind. And that would
[00:11:57.490]be $720 over the life of the
[00:11:59.360]loan that you paid extra than
[00:12:01.140]someone
[00:12:01.400]who had a better credit score.
[00:12:04.010]So it is impactful. Other
[00:12:06.460]things to think about, why the
[00:12:08.670]credit score
[00:12:09.600]is important. People can get a
[00:12:10.280]loan faster. People can get a
[00:12:10.960]loan faster. People can get a
[00:12:11.640]loan faster.
[00:12:11.840]That is why we do have credit
[00:12:13.810]scores because it has sped up
[00:12:15.930]the time that it takes people
[00:12:17.620]to go and
[00:12:19.100]get credit. You may have
[00:12:21.090]applied for a credit card
[00:12:23.090]online and instantaneously, I
[00:12:25.460]know Apple
[00:12:26.360]cards this way. If you walk
[00:12:28.210]into maybe a Costco, you can
[00:12:30.060]just say, I want a card. They
[00:12:32.510]put your
[00:12:33.260]information in as immediately.
[00:12:34.990]You can get a credit card that
[00:12:36.440]fast. And that's because they
[00:12:38.320]are relying completely on that
[00:12:39.920]credit score to make that
[00:12:40.990]decision.
[00:12:41.840]And it's quick, it's fast and
[00:12:43.730]easy. So that's a reason that
[00:12:46.050]credit scores were invented.
[00:12:47.340]That's
[00:12:47.780]why we use them to help the
[00:12:49.600]consumer do things a lot faster.
[00:12:52.280]It also can make it unbiased,
[00:12:54.510]right?
[00:12:54.860]That credit score, if you just
[00:12:56.870]base it on the credit score,
[00:12:58.810]then there is no other, that
[00:13:00.910]factor
[00:13:01.600]takes out everything else that
[00:13:03.890]could cause a bias in the
[00:13:05.640]decision making. So it is good
[00:13:08.000]from that
[00:13:08.760]standpoint. Again, as an underwriter,
[00:13:11.840]you're at the credit union. We
[00:13:13.210]do want to take other factors
[00:13:14.460]into consideration so that
[00:13:16.090]maybe we
[00:13:16.940]override what we're seeing in
[00:13:18.510]that credit barrel. Maybe there
[00:13:20.330]was some health issues that got
[00:13:21.970]that
[00:13:22.300]score down. That's all been
[00:13:23.480]taken care of. Okay. Cause we
[00:13:24.800]can take that into
[00:13:25.510]consideration,
[00:13:26.320]but the credit score is
[00:13:27.540]important for those two factors.
[00:13:29.540]Okay. What is in a credit score?
[00:13:33.300]Again,
[00:13:34.220]it is a proprietary situation.
[00:13:36.430]So I wouldn't be able to give
[00:13:38.180]you exactly, but these are the
[00:13:40.740]five
[00:13:40.960]things they're going to take
[00:13:40.970]out. So I'm going to take out
[00:13:40.970]the credit score. I'm going to
[00:13:40.980]take out
[00:13:41.100]the credit score. I'm going to
[00:13:41.100]take out the credit score. I'm
[00:13:41.100]going to take out the credit
[00:13:41.100]score. I'm
[00:13:41.100]going to take out the credit
[00:13:41.100]score. I'm going to take out
[00:13:41.100]the credit score. I'm going to
[00:13:41.100]take out the credit score.
[00:13:41.180]They're going to take into
[00:13:42.230]consideration when that score
[00:13:43.500]is being developed. Payment
[00:13:45.230]history,
[00:13:45.920]amounts owed, which is capacity,
[00:13:48.560]line of credit, new credit, and
[00:13:50.810]types of credit. So we're going
[00:13:52.640]to go through each one of those.
[00:13:55.220]So when you talk about what is
[00:13:57.090]going to affect my credit score
[00:13:59.390]the
[00:13:59.580]most, 35% of your score is your
[00:14:02.050]payment history. So I'm talking
[00:14:04.590]to all of you who are employed
[00:14:06.520]and
[00:14:07.040]have worked for a while, and
[00:14:08.520]you probably know this all
[00:14:09.910]already, but when I have a
[00:14:10.840]credit score,
[00:14:11.160]a college student in front of
[00:14:12.120]me or a high school student in
[00:14:13.080]front of me, this is the thing
[00:14:14.840]I say
[00:14:15.240]every time, and I want them to
[00:14:16.860]walk away with, always, always,
[00:14:19.080]always pay your accounts on
[00:14:20.300]time
[00:14:20.660]because it's so impactful. As
[00:14:23.350]you can see here, it can be up
[00:14:25.670]to 60 points for just having
[00:14:27.850]one
[00:14:28.140]late payment. So always think
[00:14:30.950]about how you got to keep on
[00:14:33.250]top of paying your items on
[00:14:35.920]time.
[00:14:36.380]So no financial institutions,
[00:14:41.160]going to report that you are
[00:14:42.760]late when it went before 60
[00:14:44.580]days, because you could have a
[00:14:47.420]statement
[00:14:47.780]come late. You know, the check,
[00:14:50.910]it gets lost in the mail. There's
[00:14:53.640]just so many factors, right,
[00:14:55.880]that could get you past that 30
[00:14:58.330]days when that payment is due.
[00:15:00.670]So no financial institution or
[00:15:02.860]people who are reporting the
[00:15:04.220]credit barrier are ever going
[00:15:05.620]to report you at just past that
[00:15:07.070]30
[00:15:07.420]days. We're going to wait until
[00:15:08.620]that 60 days late. So that's
[00:15:09.870]important because I don't want
[00:15:11.140]you all panicking when, you
[00:15:13.030]know, you got back from
[00:15:13.960]vacation, a bill was in your
[00:15:15.240]mail, and you
[00:15:15.840]just forgot. That's okay. Get
[00:15:18.280]that paid. That's not going to
[00:15:20.550]do it. It has to be that 60
[00:15:22.830]days.
[00:15:23.200]30% is amounts owed or capacity.
[00:15:26.500]Now, this is your credit card
[00:15:29.000]balances in relation to your
[00:15:31.500]limits. This is where we could
[00:15:34.950]talk about how many credit
[00:15:37.730]cards you have and should you
[00:15:40.780]or
[00:15:41.120]not have credit cards. So you
[00:15:42.230]can do your own math on this.
[00:15:42.620]High debts and maxed cards have
[00:15:43.120]a
[00:15:43.220]negative effect. Once you use
[00:15:45.050]over 30% of your limit, your
[00:15:46.930]score will start to suffer. So
[00:15:49.730]you
[00:15:49.920]can do your own math on this.
[00:15:51.880]Once you use over 50% of your
[00:15:53.850]score, it will decrease greatly.
[00:15:56.340]So
[00:15:56.860]again, 35% for not making a
[00:15:58.830]payment on time, 30% on this
[00:16:00.860]capacity. So let's go through
[00:16:03.860]what this
[00:16:04.580]capacity is. So if you have a $10,000
[00:16:07.550]limit and you have $2,000 in
[00:16:09.760]balances,
[00:16:11.100]that's pretty easy, right? All
[00:16:12.680]of these I made really easy.
[00:16:14.110]That's 20% capacity used. A-okay,
[00:16:16.420]not going to affect your score.
[00:16:18.370]You get to 30%, now we're going
[00:16:20.480]to start impacting your score
[00:16:22.320]at 50 and 80%. So you can see
[00:16:25.880]that. What could you do? One,
[00:16:29.780]you could ask for a credit line
[00:16:32.190]increase. So we do that here at
[00:16:34.570]the credit union. Every year,
[00:16:36.900]we evaluate and give credit
[00:16:38.110]line increases to those
[00:16:39.160]individuals who are doing
[00:16:40.320]really great on
[00:16:41.080]their borrowing. And what that
[00:16:43.010]can do is to give you a higher
[00:16:44.450]capacity. Don't spend any more
[00:16:46.400]than
[00:16:46.600]you were, right? So now we've
[00:16:48.410]raised it to $20,000 and you're
[00:16:50.990]only still spending your $2,000,
[00:16:53.200]right?
[00:16:53.660]Your capacity is much better.
[00:16:55.990]You might have more than one
[00:16:57.540]card. So then the question is,
[00:16:59.880]should you ever close a card?
[00:17:01.440]Because it would affect the
[00:17:02.830]capacity, right?
[00:17:04.000]And our advice to you is, you
[00:17:05.930]know, having a lot of different
[00:17:08.130]credit cards out there, it's a-okay,
[00:17:11.060]at average, most people have
[00:17:12.950]seven. So, you know, I don't
[00:17:14.990]know where you are in that. If
[00:17:16.890]you're a
[00:17:17.680]little higher, a little lower,
[00:17:19.840]it's okay. The issue would be
[00:17:21.790]keeping track of that. We just
[00:17:23.980]talked about scams two weeks
[00:17:26.070]ago. And so having that credit
[00:17:28.410]out there that maybe you're not
[00:17:30.840]paying
[00:17:30.980]attention to, you're not
[00:17:32.000]looking at the statements or
[00:17:33.120]you don't know what's going on,
[00:17:34.430]that could
[00:17:34.860]cause you some worry. That
[00:17:36.580]would cause me some worry that
[00:17:37.960]I have some things out there
[00:17:39.410]that I
[00:17:39.800]don't know about. So, you know,
[00:17:40.850]I don't know what's going on. I
[00:17:40.880]don't know what's going on. I
[00:17:41.040]don't
[00:17:41.040]know what's going on. But I
[00:17:42.730]like to keep just a few cards
[00:17:44.330]that I'm watching and I
[00:17:45.760]understand so
[00:17:46.700]that I don't have that worry.
[00:17:48.380]So let's say you've gotten
[00:17:49.580]yourself into, you have seven
[00:17:51.200]different
[00:17:51.480]cards and your capacity is like
[00:17:53.120]$50,000 in unsecured debt. And
[00:17:55.550]you're like, well, Dina,
[00:17:57.200]if I close one of these, then I'm
[00:17:58.550]going to, you know, decrease
[00:17:59.860]that to maybe $30,000. And then
[00:18:02.320]I'm using it and I'm going to
[00:18:04.020]get up to this. My suggestion
[00:18:05.980]there is if you're not using
[00:18:07.660]that card
[00:18:08.260]and you don't have a capacity
[00:18:09.150]issue with the credit card, you're
[00:18:10.250]not going to be able to
[00:18:11.020]50,000 is a lot to be out there,
[00:18:12.970]whatever you have to assess.
[00:18:14.900]Assess what you have. And if
[00:18:17.890]you
[00:18:18.000]see that you're not using that
[00:18:19.260]capacity and you want to close
[00:18:20.500]a card, again, I think it's a
[00:18:21.790]good
[00:18:22.040]idea. Your score will dip, but
[00:18:24.410]it won't stay there. Again, it's
[00:18:26.960]a moment in time. It will dip
[00:18:29.220]for a very short amount of time
[00:18:31.420]and it will come right back up.
[00:18:33.780]So don't worry about that if
[00:18:35.810]that
[00:18:36.320]is something that you want to
[00:18:37.400]do and you want to clean up
[00:18:38.370]your trade lines and you want
[00:18:39.420]to know
[00:18:39.760]what you've got in front of you.
[00:18:41.000]Another thing, I would never
[00:18:42.830]suggest somebody close a line
[00:18:44.660]of credit if they are about to
[00:18:46.380]go
[00:18:46.520]out and get credit, i.e. buy a
[00:18:49.790]new home or getting a new car.
[00:18:52.780]Because again, it's going to
[00:18:55.620]dip your
[00:18:56.140]score and you don't want to be
[00:18:58.050]going into a lending situation,
[00:19:00.140]you know, in the rears. So
[00:19:02.380]it's important for you to think
[00:19:03.770]about those things before you
[00:19:05.060]make that decision.
[00:19:10.980]Again, this does come down to
[00:19:14.350]do I want to close a line of
[00:19:17.160]credit because I've been on
[00:19:18.900]there for
[00:19:19.220]a long time and it's got a lot
[00:19:20.510]of history. Same factors. You're
[00:19:22.740]going to have to look at all
[00:19:24.420]the
[00:19:24.680]different trade lines you have.
[00:19:25.840]If you want to go ahead and get
[00:19:26.800]the card that's been on there
[00:19:27.780]the
[00:19:27.940]longest and you still want to
[00:19:29.180]close it, it is okay. It will
[00:19:30.510]take that dip. It will come
[00:19:31.820]back.
[00:19:32.240]You're going to be okay if you
[00:19:33.820]want to do that. But length of
[00:19:35.530]time is important and it is why
[00:19:37.300]sometimes those individuals
[00:19:39.180]coming out of college,
[00:19:40.960]who don't have a lot of credit
[00:19:42.300]on their credit bureau, can be
[00:19:44.420]looked at, can have a lower
[00:19:45.460]score.
[00:19:45.820]And that is because they just
[00:19:46.850]don't have trade lines that
[00:19:47.840]have been there long enough to
[00:19:49.270]get
[00:19:49.500]their score higher. But that's
[00:19:51.450]when the lender has to take
[00:19:52.860]into consideration that factor
[00:19:54.720]and
[00:19:55.060]make a different decision when
[00:19:57.060]giving out credit. 10% is new
[00:19:59.360]credit or accumulation of debt.
[00:20:01.700]So
[00:20:02.200]if we see on a credit bureau
[00:20:04.420]that you have a lot of inquiries
[00:20:07.020]or all of a sudden you have
[00:20:10.940]debt, your debt has increased a
[00:20:13.370]lot. You just opened another
[00:20:15.180]card and another card that is
[00:20:17.270]going
[00:20:17.480]to affect the score. But again,
[00:20:19.660]that's a lot lower than what we're
[00:20:21.710]talking about with paying your
[00:20:23.640]bills on time and making sure
[00:20:24.710]you don't have your capacity.
[00:20:25.960]So how long will a negative
[00:20:29.370]information
[00:20:29.920]stay on my credit report? It's
[00:20:31.570]a long time. So bankruptcies,
[00:20:34.260]late payments, seven years for
[00:20:36.820]each
[00:20:37.020]one of these, foreclosures,
[00:20:39.510]collections.
[00:20:40.920]All that stays on for a very
[00:20:42.990]long time. So again, though, if
[00:20:45.970]you keep working at it,
[00:20:47.760]you can make that score go up.
[00:20:49.320]I don't want to get anyone
[00:20:50.590]feeling like, oh my gosh,
[00:20:51.920]I already had that on there. I'm
[00:20:53.430]not ever going to get done. But
[00:20:55.000]as you get more information on
[00:20:56.480]there, it will take care of
[00:20:58.090]that. Past problems impact your
[00:21:00.110]score less as time passes. That's
[00:21:10.900]one of the things you want to
[00:21:11.620]keep in mind when you're
[00:21:12.100]looking at an installment loan.
[00:21:12.900]So there are two types of
[00:21:15.220]credit that you're going to see
[00:21:18.250]on the credit bureau. And that's
[00:21:19.730]an
[00:21:19.820]installment loan. An
[00:21:21.680]installment loan is something
[00:21:24.320]that has something attached to
[00:21:26.520]it, say a car,
[00:21:27.860]right? So as a financial
[00:21:30.020]institution, when we see an
[00:21:31.830]auto loan or something that has
[00:21:34.160]that we can attach to something
[00:21:36.890]that we could, let's say that
[00:21:39.390]you don't make the
[00:21:40.880]payment on your car, we can go
[00:21:42.820]ahead and unfortunately repossess
[00:21:44.560]that car. We can get
[00:21:45.620]that car back. We can sell it.
[00:21:48.000]Therefore, we don't see that
[00:21:50.130]loan as risky as an unsecured
[00:21:52.300]loan,
[00:21:52.660]i.e. a credit card. On a credit
[00:21:54.390]card, if somebody defaults on a
[00:21:55.810]credit card, there isn't
[00:21:56.920]anywhere
[00:21:57.240]for us to go. We just have to
[00:21:59.090]charge that transaction up. So
[00:22:01.270]it's a good idea to have
[00:22:02.880]a mix of things on your credit
[00:22:05.180]bureau if you want to have a
[00:22:07.280]higher score. A lot of you, I'm
[00:22:09.930]sure,
[00:22:10.860]have a mortgage on there. So
[00:22:12.360]that's more on it. Obviously,
[00:22:14.080]that's an installment loan,
[00:22:15.600]something that we can capture
[00:22:17.440]things back on compared to how
[00:22:19.260]many credit cards you have on
[00:22:21.120]there. So that mix does, again,
[00:22:22.750]it's a low percentage compared
[00:22:24.270]to the other things that you
[00:22:25.480]see. I really like this screen
[00:22:27.850]as well to just really show you,
[00:22:30.190]you know, it's always fun to
[00:22:32.420]have a visual of what I'm
[00:22:34.090]talking about. So it gives you
[00:22:36.280]those credit ranges, the 800
[00:22:38.850]plus the
[00:22:40.840]9, 670 to 739, just giving you
[00:22:43.900]an idea of where you fall when
[00:22:45.690]it comes to credit. But this
[00:22:48.480]wheel
[00:22:49.380]just really shows it right out
[00:22:51.380]in front of you, what's going
[00:22:53.500]to happen if you have some
[00:22:55.100]issues
[00:22:55.420]with your payment history or
[00:22:57.710]the amount owed. Also, those
[00:23:00.350]are the places then that you
[00:23:02.510]can
[00:23:02.880]make the most impact the faster
[00:23:04.460]too. As you have more history,
[00:23:06.150]these things that have happened
[00:23:07.900]to
[00:23:08.140]you where you didn't make a
[00:23:09.140]payment are going to continue
[00:23:10.220]to fall off. So that's a good
[00:23:10.820]idea
[00:23:10.820]and things are going to look
[00:23:11.600]better. Okay, you might need to
[00:23:14.470]fix your credit report.
[00:23:16.640]I'm going to talk about how you
[00:23:18.460]can pull a credit report. And
[00:23:20.420]again, we will take a look at
[00:23:22.090]one.
[00:23:22.680]But if you do have an error,
[00:23:24.520]you can get that fixed. You do
[00:23:26.600]have to contact the credit bureaus
[00:23:28.920]to do that. You can contact
[00:23:31.140]them online or you can write a
[00:23:33.360]letter letting them know,
[00:23:35.580]and they do have to investigate
[00:23:37.560]it. And it usually takes 30 to
[00:23:39.550]60 days,
[00:23:40.800]well, I have 30 to 90 days to
[00:23:42.540]get that fixed. So why would
[00:23:44.540]this be important? Again,
[00:23:46.560]this would come into effect if
[00:23:48.570]you are going out and getting
[00:23:50.320]credit. So especially a home
[00:23:52.750]loan,
[00:23:53.380]people, the financial
[00:23:54.740]institutions take a really good
[00:23:56.490]deep dive into your credit when
[00:23:58.260]you're looking at a home loan.
[00:24:00.760]So it's important that if you
[00:24:02.960]have anything going on
[00:24:04.860]with your credit bureau, you
[00:24:06.510]should go ahead and get it
[00:24:07.900]taken care of and checked.
[00:24:10.780]I feel fortunate that I have a
[00:24:12.700]last name that doesn't have a
[00:24:14.370]lot. But let's say that your
[00:24:16.340]last
[00:24:16.660]name is Smith, for instance, it
[00:24:18.500]is possible that things that
[00:24:20.080]aren't yours could get on your
[00:24:21.700]credit
[00:24:21.920]bureau. So it is important for
[00:24:23.540]you to check that. And we're
[00:24:25.040]going to give you the
[00:24:26.060]information on
[00:24:26.900]how you do that. And that's my
[00:24:28.890]next screen. So that's great.
[00:24:31.170]This is annualcreditreport.com.
[00:24:33.780]We do suggest that that's a
[00:24:35.550]great place for you to go get
[00:24:37.410]your credit bureau. And the
[00:24:39.640]reason,
[00:24:40.760]we also talked about this, I
[00:24:42.330]think, during our scams session.
[00:24:44.470]The reason we suggest this is
[00:24:46.090]that
[00:24:46.220]it is a government-based
[00:24:47.770]website. So after you pull your
[00:24:49.830]credit report, it isn't going
[00:24:51.730]to solicit
[00:24:52.620]you later to ask you, you know,
[00:24:54.780]try to sell you things or
[00:24:56.420]continue to bother you. It is
[00:24:58.540]just going
[00:24:58.980]to do what it needs to do. And
[00:25:01.020]that is to pull your credit
[00:25:02.830]bureau. As like I talked in the
[00:25:05.060]other
[00:25:05.600]one, there are three different
[00:25:07.650]credit bureaus. You can get a
[00:25:09.000]free credit report every year
[00:25:10.740]so you could get a new credit
[00:25:12.490]report because there's three of
[00:25:14.550]them every six months. So you
[00:25:17.420]would pull, let's say, my
[00:25:18.810]suggestion would always be to
[00:25:20.310]pull Experian first. Most
[00:25:21.750]financial institutions
[00:25:22.960]in Nebraska use Experian as
[00:25:24.580]their main credit bureau that
[00:25:26.350]they pull. So this would be a
[00:25:28.290]good
[00:25:28.460]thing for you to look at before
[00:25:30.460]you go in to get credit. And
[00:25:32.380]then once six months goes by,
[00:25:34.500]you could
[00:25:34.900]go to Equifax and then six
[00:25:36.080]months later, go to TransUnion
[00:25:37.620]and just keep that up if you
[00:25:38.870]want to
[00:25:39.360]go ahead and watch it that
[00:25:40.320]close.
[00:25:40.720]Important just to see, one,
[00:25:44.200]what are your trade lines out
[00:25:45.440]there? Again, you could forget
[00:25:47.370]what you have. You know, maybe
[00:25:48.820]you had a department store card
[00:25:50.340]and you don't even remember you
[00:25:51.530]have that. You want to clean
[00:25:52.620]that up so that you don't have
[00:25:53.910]things out there that you don't
[00:25:55.020]need or you're not watching.
[00:25:56.720]Again, sometimes things can get
[00:25:59.480]reported to the credit bureau.
[00:26:00.760]They're incorrect. Also, maybe
[00:26:03.720]you've had some issues at a
[00:26:05.270]financial institution and you
[00:26:06.660]made a payment and for some
[00:26:07.860]reason it didn't get recorded
[00:26:09.700]or something. And all of a
[00:26:10.700]sudden, again,
[00:26:10.700]it got reported. We can get
[00:26:11.860]that fixed for you quite
[00:26:13.600]quickly if we as a financial
[00:26:15.860]institution made a mistake. So
[00:26:17.360]if you see it's something that
[00:26:19.370]the financial institution go to
[00:26:20.700]them direct so that they can
[00:26:22.060]get that fixed for you. So at
[00:26:23.140]this time, let's go ahead and I'm
[00:26:24.660]going to share a credit bureau
[00:26:26.420]for you. And then we can talk
[00:26:28.920]through that a little bit. So
[00:26:29.700]just a second here.
[00:26:40.680]Now you can see this. This is a
[00:27:10.660]credit bureau. I have taken off
[00:27:10.660]the person's name, obviously,
[00:27:10.660]for important reasons. We don't
[00:27:10.660]want to share somebody's
[00:27:10.660]information on this. But this
[00:27:10.660]is exactly what it would look
[00:27:10.660]like from here at the credit
[00:27:10.660]union. This is considered a
[00:27:10.660]hard pull. When you get it from
[00:27:10.660]annualcreditreport.com, it
[00:27:10.660]probably doesn't have as
[00:27:10.660]extensive of information as you're
[00:27:10.660]seeing here.
[00:27:10.660]But I really wanted to show you
[00:27:12.890]what was going on, what a
[00:27:16.440]financial institution would see
[00:27:28.730]if you're coming in for a loan.
[00:27:40.640]So first here is you're going
[00:27:40.640]to see right here has that
[00:27:40.640]score, right? This is your FICO
[00:27:40.640]score, Farah Isaac score. So
[00:27:40.640]this individual, it's a joint
[00:27:40.640]owner that we pulled that on.
[00:27:40.640]So we have both scores. So here's
[00:27:40.640]a 791 for their score. And the
[00:27:40.640]other individual that is part
[00:27:40.640]of this poll had a 751. These
[00:27:40.640]individuals
[00:27:40.640]are married. So that's why we
[00:27:42.370]can get the report this way. So
[00:27:44.630]the next thing, it just has a
[00:27:46.040]quick trade summary. So this
[00:27:48.380]individual has a mortgage. But
[00:27:50.700]as you see here, we don't have
[00:27:52.580]any information on that. I
[00:27:54.270]think we might find that later.
[00:27:56.230]We have an auto loan and
[00:27:57.570]education loan. So that's going
[00:27:59.590]to be your student loans. No
[00:28:01.330]other installment loans are
[00:28:03.030]showing. Revolving means, like
[00:28:05.140]we already talked about, that's
[00:28:07.090]usually a credit card or a
[00:28:08.760]department store card.
[00:28:10.620]So in this case, their balances
[00:28:12.100]are 77,601 and a high credit of
[00:28:16.200]229,000 in the past that they've
[00:28:19.610]had. So just kind of
[00:28:22.200]information for the individual
[00:28:27.350]who's looking at this as an
[00:28:31.590]underwriter, just a quick
[00:28:35.930]glance at what's going on. Then
[00:28:40.600]what comes next is open
[00:28:40.600]accounts and trade lines. And
[00:28:40.600]so in this case, this
[00:28:40.600]individual has an account here
[00:28:40.600]with ED Financial Services. It
[00:28:40.600]tells
[00:28:40.600]you the date that was last
[00:28:41.980]reported. Again, you saw at the
[00:28:43.910]top, I pulled a very old one
[00:28:45.520]from someone
[00:28:46.000]from 2022, just so we didn't
[00:28:48.400]want to get any information
[00:28:50.100]that could be looked at. And
[00:28:52.940]then
[00:28:53.140]here's the account type. It's
[00:28:55.090]education. This is how much. It
[00:28:57.270]was at UNK. They tell you that
[00:28:59.150]much.
[00:28:59.580]And everything's paid as agreed.
[00:29:01.160]So that's the next thing a
[00:29:02.250]lender is going to do. They're
[00:29:03.790]going to
[00:29:03.960]kind of quickly go, oh, I see
[00:29:05.090]everything's paid as agreed,
[00:29:06.270]right? They're just going to
[00:29:07.440]even quickly go through it and
[00:29:08.840]say, oh, we don't have any
[00:29:10.580]any info. We don't have any
[00:29:11.880]issues here. We've got
[00:29:13.020]everything's getting paid. And
[00:29:16.030]so finally,
[00:29:16.720]we get down here where there
[00:29:18.650]was a 30 day late, right? You
[00:29:20.960]see that right there. And I
[00:29:23.260]think
[00:29:24.140]that this is old, old
[00:29:25.540]information. You can see that
[00:29:27.600]here on my screen because it
[00:29:29.360]says 2015 to
[00:29:30.820]2017. So old information there.
[00:29:33.090]So then that they would
[00:29:34.180]probably go, oh, that's not
[00:29:35.620]affecting their
[00:29:36.500]score. I'm not worried about it.
[00:29:37.950]But as you can see, this person
[00:29:39.190]has a lot of trade lines.
[00:29:40.560]This is a lot of trade lines to
[00:29:42.820]look at, to evaluate, to make
[00:29:43.680]sure things are going OK.
[00:29:44.320]And this is what your lender
[00:29:46.550]would look at. And these trade
[00:29:48.930]lines will not fall off, like I
[00:29:50.300]said,
[00:29:50.480]at least seven years, even
[00:29:51.800]though you've closed them. And
[00:29:53.410]sometimes I've seen it take a
[00:29:54.820]little bit longer
[00:29:55.700]for them. The next section is
[00:29:57.780]going to talk about your creditors.
[00:30:00.000]And the public record, if there
[00:30:02.430]was anything for a public
[00:30:04.350]record, just like I said,
[00:30:06.080]this is where they would find
[00:30:08.530]that. And then down here,
[00:30:10.540]inquiries, which we just talked
[00:30:12.350]about. So we had one, two,
[00:30:13.960]three, four, five, six, seven
[00:30:15.920]inquiries.
[00:30:16.700]But those were all in 2021. And
[00:30:18.670]we pulled this bureau in 2022.
[00:30:20.640]Not going to be concerned about
[00:30:22.160]that. But had that been when we
[00:30:23.590]pulled the bureau in 2022, oh,
[00:30:25.460]something else to think about
[00:30:26.870]in the
[00:30:27.100]credit bureau score might have
[00:30:28.230]been a little low because you
[00:30:29.260]see all those inquiries. All
[00:30:30.440]right.
[00:30:32.160]So that's just kind of a quick
[00:30:34.730]glance at what we are seeing
[00:30:37.200]here if the credit is being
[00:30:39.560]pulled at
[00:30:40.520]the credit union. I'm going to
[00:30:42.820]go ahead and go back to our
[00:30:45.600]slide. All right. The next
[00:30:52.720]thing I'm
[00:30:52.980]going to talk about, and again,
[00:30:54.690]if some of you came to the scam
[00:30:56.350]session, sorry, we've got some
[00:30:58.020]repetitive things, but it all
[00:30:59.660]goes together. I want to talk
[00:31:01.290]about freezing your credit.
[00:31:03.020]And this is a good practice if
[00:31:05.650]you're okay with, oh, going out
[00:31:09.020]and getting credit,
[00:31:10.500]just takes you a little bit
[00:31:11.740]longer, takes you a little more
[00:31:13.260]time. It's a-okay to do this.
[00:31:14.960]You can either call them or you
[00:31:17.890]can go online to Equifax, Experian,
[00:31:21.640]and TransUnion.
[00:31:23.620]And you'll either set up a pin,
[00:31:26.060]which is shown to you, or they'll
[00:31:28.720]send you one,
[00:31:29.960]or you get to choose your own.
[00:31:31.200]They all do it differently, as
[00:31:32.170]you can see from this slide.
[00:31:33.360]You can freeze and unfreeze.
[00:31:35.520]One of them will have you set a
[00:31:37.500]date when you can freeze it
[00:31:39.320]back. One,
[00:31:40.480]you'll have to go visit and
[00:31:41.630]freeze it back up for yourself,
[00:31:43.120]but you can go in and out of
[00:31:44.210]this.
[00:31:44.680]So if you are going out to get
[00:31:46.980]a car today, but you have your
[00:31:49.000]credit frozen, you just tell
[00:31:50.440]the
[00:31:50.560]lender, I have my credit frozen.
[00:31:52.480]They're saying, okay, I'm going
[00:31:53.800]to pull a bureau from Experian.
[00:31:55.420]You go into Experian online.
[00:31:57.400]You unfreeze that credit
[00:31:58.890]because you remembered your pin,
[00:32:00.460]which is very important. Unfreeze
[00:32:02.900]it. The lender pulls the credit.
[00:32:05.620]And then I believe in an Experian
[00:32:07.790]situation, then I would go in
[00:32:09.630]and freeze
[00:32:10.460]that back up. It doesn't cost
[00:32:12.680]you anything to do. What would
[00:32:15.060]be the benefit of this?
[00:32:16.880]The benefit is that no one can
[00:32:21.940]access your credit bureau
[00:32:25.610]without you.
[00:32:26.180]They just can't access your
[00:32:27.560]credit bureau without letting
[00:32:29.120]you unfreeze it. So it limits
[00:32:31.700]the piece
[00:32:33.920]of that about, you know, what
[00:32:36.000]happens if there's a breach on
[00:32:38.000]my credit card, or what happens
[00:32:40.160]if I,
[00:32:40.440]you know, get involved in a
[00:32:42.870]scam. No one can get into that
[00:32:45.900]credit, except for if you unfreeze
[00:32:48.420]it.
[00:32:48.660]A question would come up then,
[00:32:51.160]okay, we know that people are
[00:32:53.340]using that to my healthcare
[00:32:55.860]costs might
[00:32:56.460]go under there, or I'm going to,
[00:32:58.950]you know, my insurance costs
[00:33:00.790]are under there. So how does
[00:33:02.760]that happen? Any financial
[00:33:04.130]institution, insurance company,
[00:33:05.880]or anything else that you have
[00:33:07.390]allowed in
[00:33:08.100]the past to get your credit
[00:33:08.680]will get your credit. So if you
[00:33:09.410]unfreeze it, you know, you're
[00:33:10.250]going to get
[00:33:10.420]your credit. So if you unfreeze
[00:33:10.420]it, you're going to get your
[00:33:10.420]credit. So if you unfreeze it,
[00:33:10.420]you're
[00:33:10.540]still have access to go ahead
[00:33:11.930]and pull that so that they can
[00:33:13.170]keep making sure that you're
[00:33:15.200]following
[00:33:15.500]whatever guidelines they need
[00:33:17.130]to do, and they can reassess.
[00:33:18.790]They are not blocked from that
[00:33:20.440]just
[00:33:20.620]because you froze your credit.
[00:33:22.590]That is some worries that
[00:33:24.240]people have. A really huge
[00:33:25.650]benefit is you
[00:33:26.580]don't get solicited for any
[00:33:28.370]sort of credit. You're not
[00:33:30.200]going to be getting credit card
[00:33:32.320]solicitations in the mail. The
[00:33:34.930]only thing I get in the mail
[00:33:36.970]these days is, you know,
[00:33:39.000]political
[00:33:40.400]flyers, which I wish I could
[00:33:41.510]put a stop to those, but I can't.
[00:33:43.110]So I appreciate not having that
[00:33:46.330]kind
[00:33:46.440]of mail come to me. I don't
[00:33:48.050]need it. I don't need more
[00:33:49.660]credit cards. I have no reason
[00:33:51.620]to want that
[00:33:52.460]to come to me. So I feel
[00:33:54.150]perfectly happy having my
[00:33:56.010]credit frozen. I've had it done
[00:33:58.370]for, well,
[00:33:59.360]15 years, and it's worked just
[00:34:03.260]fine. I bought another home. I've
[00:34:07.420]purchased cars. I've, you
[00:34:10.380]know, everything you can think
[00:34:11.680]of, even though I've had my
[00:34:12.720]credit frozen. So it is
[00:34:13.740]something you
[00:34:14.420]can do. I like to use the words,
[00:34:15.820]just gets a little clunky
[00:34:16.870]because you do have to think
[00:34:18.020]about it.
[00:34:18.620]When you're going to go in, you
[00:34:20.550]have to take care of that. So
[00:34:22.520]things to remember, I just want
[00:34:25.650]to
[00:34:25.900]reiterate that scores, you know,
[00:34:27.910]the score takes into
[00:34:29.090]consideration everything that
[00:34:30.860]we're doing.
[00:34:31.800]Payment history is a huge
[00:34:33.550]percent of that, and capacity,
[00:34:35.910]that's 65%. So both of those
[00:34:38.480]things are
[00:34:38.740]most important.
[00:34:40.360]And understanding the scores
[00:34:41.900]can save you money because you're
[00:34:43.550]going to have a lower interest
[00:34:45.120]rate when you go out to get
[00:34:46.260]that. Your loans are going to
[00:34:47.690]be quicker. The approvals will
[00:34:49.250]be easier.
[00:34:49.860]It's just important to keep
[00:34:51.290]track of anything that has to
[00:34:52.800]do with your credit barrel.
[00:34:54.500]How to raise your FICO score
[00:34:56.800]over time. We've already
[00:34:59.100]covered this, but just remember
[00:35:02.410]that
[00:35:02.900]every, oh, as you slowly do
[00:35:05.460]things, slowly, as time passes,
[00:35:08.710]the credit score will go up.
[00:35:10.340]So it's, it's, you can, you can
[00:35:13.760]make a change on that.
[00:35:15.300]All right. I am going to go
[00:35:18.750]ahead. I'm going to check chat
[00:35:20.330]really quick because I do see
[00:35:21.540]that I
[00:35:21.820]might have a message there and
[00:35:23.200]answer any questions there. I
[00:35:24.680]don't see any questions.
[00:35:26.060]I'm okay if anyone wants to
[00:35:28.040]unmute themselves and we can
[00:35:30.210]chat about any questions you
[00:35:32.380]might have,
[00:35:33.480]or if you feel more comfortable,
[00:35:35.500]you can go ahead and put that
[00:35:37.170]into the chat and we will
[00:35:38.700]cover them there.
[00:35:40.340]Hi, Dina. This is Lisa Hastings.
[00:35:43.360]I have a question. And I think
[00:35:45.880]I'm going to use the
[00:35:47.440]right terminology, but if I don't,
[00:35:49.690]forgive me. So I think the part
[00:35:51.650]you said about like
[00:35:52.920]being part of your credit score
[00:35:55.120]is just installment loans
[00:35:57.160]versus lines of credit or
[00:35:59.120]whatever.
[00:35:59.500]My question is, it's because I,
[00:36:01.790]do they take, or when they look
[00:36:03.820]at that, do they look at all
[00:36:05.460]at the age of the person? Cause
[00:36:07.360]like I, my mortgage is now paid
[00:36:08.860]off. So I have a question. I
[00:36:10.320]have a
[00:36:10.320]no installment loans or it's
[00:36:12.120]just so small a part. It doesn't
[00:36:13.810]really matter.
[00:36:14.960]So it's interesting. I'm in
[00:36:17.080]your same, same boat. And I'd
[00:36:19.360]always thought like,
[00:36:21.100]what's going to happen to my
[00:36:22.530]score when I stopped having
[00:36:23.990]these things on there. Right.
[00:36:26.540]So I,
[00:36:27.700]my assumption is, and I can't
[00:36:30.100]answer that completely, but my
[00:36:33.000]score has not gone down
[00:36:34.580]just because I have nothing on
[00:36:36.080]it, but a few credit cards.
[00:36:37.640]Okay, cool. Thank you. Yeah.
[00:36:39.920]Cause
[00:36:40.300]Dave Ramsey, I just have to
[00:36:41.270]bring that always said, you
[00:36:42.300]know you know, the paid
[00:36:45.070]mortgage is,
[00:36:46.200]you know, the sign of wealth in
[00:36:47.390]the future or something like
[00:36:48.500]that. Right. And so I was
[00:36:50.260]always
[00:36:50.480]wondering like, what's going to
[00:36:51.560]happen when that happens? I
[00:36:52.530]mean, what will my credit score
[00:36:53.580]just
[00:36:53.840]be like 500 or whatever, but no,
[00:36:56.290]it stayed fine. I do have trade
[00:36:58.240]lines because I do have my
[00:36:59.750]credit
[00:37:00.320]cards, but that's it. That's
[00:37:01.940]all it's on there. So you're
[00:37:03.440]good. Thank you. Yeah. Great
[00:37:05.450]question.
[00:37:10.280]Or, or does anyone have any
[00:37:12.460]questions about what's been
[00:37:14.740]going on this last few weeks in
[00:37:17.140]this
[00:37:17.360]challenge? Anything come up
[00:37:19.830]that I can help with? Hi, I
[00:37:22.980]have a question. Okay. Okay. So
[00:37:29.960]asking for somebody else, but
[00:37:33.020]if like two people have been
[00:37:35.120]living together for several
[00:37:37.500]years,
[00:37:38.160]but they're not married and
[00:37:38.950]they want to get a house to
[00:37:39.670]live together,
[00:37:40.260]um, do like, would their credit
[00:37:45.130]be run totally separately if
[00:37:47.230]they're not officially married?
[00:37:49.160]Correct. Yes. And that is a,
[00:37:51.850]okay. Okay. It's really not
[00:37:53.980]looked at. I mean, I don't know
[00:37:56.010]what
[00:37:56.120]it would look like at 20 years
[00:37:57.730]ago, but we completely take
[00:37:59.110]them, them separately, um,
[00:38:01.600]on, on the home. No problem.
[00:38:03.960]Thank you. Good question.
[00:38:10.240]Anyone else? Looks like I'm
[00:38:16.300]going to give you some time
[00:38:18.100]back on your day. I was a
[00:38:19.280]little talked a
[00:38:20.380]little faster than I thought.
[00:38:22.540]So, all right. Well, um, you
[00:38:24.780]have my information. I, we're
[00:38:27.120]going to,
[00:38:27.400]we recorded this, so we'll go
[00:38:29.120]ahead and, um, get that posted.
[00:38:31.170]And if you have any
[00:38:32.520]questions of me, please always
[00:38:34.040]feel, feel free to give me a
[00:38:35.300]call. Thank you everyone.

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Credit Score Bootcamp

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