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The 700 Credit Score: The Real Key to Wealth Nobody Talks About · Money And Wealth With John Hope Bryant

0:00
Speaker 1: Welcome The Money in Wealth with John O'Bryant, a production
0:03
Speaker 1: of the Black Effect Podcast Network and iHeartRadio. Yo, Yo, Yo,
0:15
Speaker 1: this is John O'Brien and this is the Money in
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Speaker 1: Wealth podcast series on iHeartRadio and Black Effect Network. And
0:24
Speaker 1: today we're tackling a really important topic that frankly, even
0:29
Speaker 1: I might have taken for granted that everybody just sort
0:32
Speaker 1: of knew and had figured out and understood. And but
0:35
Speaker 1: then I apologize. Let's deal with seven hundred credit scores.
0:40
Speaker 1: That's right, the seven hundred credit score phenomena. I keep
0:43
Speaker 1: talking about. I keep talking about that if your day
0:46
Speaker 1: is not about God or love, your day is about money.
0:50
Speaker 1: That the new color is not black or white, or
0:53
Speaker 1: red or blue as in race or politics, that the
0:58
Speaker 1: new color is green, as in US currency. I have
1:04
Speaker 1: talked about my mother, Wineda Smith, and how powerful credit
1:10
Speaker 1: scores have been or were, to her life. She since
1:13
Speaker 1: passed away, gone to glory, been promoted. How she had
1:17
Speaker 1: a credit score of eight to fifty four back when
1:19
Speaker 1: the credit scores went that high. I think the cap
1:22
Speaker 1: out of eight fifty now really set her life free
1:26
Speaker 1: to do as she liked. I talked about how my
1:28
Speaker 1: dad had more hustle than my mother. My dad was
1:31
Speaker 1: a natural hustler. He had built with my mother a
1:36
Speaker 1: little monument up from nothing wealth into south central LA.
1:41
Speaker 1: We owned our own home, which I now believe was
1:47
Speaker 1: approved my mother's credit. By the way, we built an
1:50
Speaker 1: eight unit apartment building. Same thing my dad's hustle economics,
1:54
Speaker 1: my mother's credit. My dad's credit was so bad he
1:58
Speaker 1: used to call it credit. He said his credit was bad,
2:00
Speaker 1: as Johnny will Smith, great grade Man also says passed
2:04
Speaker 1: on to glory. We had a gas station at Normandy
2:11
Speaker 1: No Western End, Vernon Southeast Corner. If I'm not mistaken,
2:17
Speaker 1: we owned our own home, semen contracting business, a nursery business.
2:21
Speaker 1: I mean we were bawling. Then How is it that
2:25
Speaker 1: my mother, working an hourly job after that McDonald douglas
2:29
Speaker 1: Aircraft for thirty two years ended up being a millionaire
2:35
Speaker 1: and which I was the executive of a state. So
2:37
Speaker 1: I know that's true. And how is it my father
2:40
Speaker 1: ended up broke and I ended up taking care of
2:42
Speaker 1: him the last ten years of his life. He'd lost
2:44
Speaker 1: everything essentially based on credit. How is that possible if
2:54
Speaker 1: my dad was a better hustler, because the difference between
2:59
Speaker 1: a hustler and a businessman or a business woman. It's paperwork,
3:05
Speaker 1: not just paperwork with the county, the city, the state,
3:08
Speaker 1: the federal government structured paperwork, but paperwork in your head,
3:14
Speaker 1: paperwork in the sense of it's a business, not busyness.
3:18
Speaker 1: It's about doing the details behind the sales. A large
3:24
Speaker 1: part of those details deal with well the word. The
3:27
Speaker 1: Latin word word for credit is credito, which means credibility.
3:33
Speaker 1: So your credit has to do with your credibility. You're
3:36
Speaker 1: just showing credibility in the marketplace of finance in this
3:41
Speaker 1: particular example. By the way, capitis capital comes from the
3:45
Speaker 1: Latin root word copy tass, which broadly defined means knowledge
3:49
Speaker 1: in the head. And banking is a trust business. It's
3:54
Speaker 1: about trust. So none of these things directly have anything
3:57
Speaker 1: to do with money. But what do we talk about
4:01
Speaker 1: in our communities. In my community, get that bag, get
4:05
Speaker 1: that dollar, get that cash, get that money, get that dollar.
4:09
Speaker 1: As I said, it's about money, it's about that green,
4:14
Speaker 1: it's about that thing. It's about looking for love and
4:16
Speaker 1: all the wrong places. Because all currency is all money
4:20
Speaker 1: is a exchange of value, no different than a check.
4:24
Speaker 1: I could write a check on a T shirt with
4:26
Speaker 1: the writing number and the bank account number, because it's
4:29
Speaker 1: really just transferring value. But if your outfloaks has your inflow,
4:33
Speaker 1: then your overhead it will be your downfall. And so if
4:36
Speaker 1: you're making a lot of money and you're spending a
4:40
Speaker 1: lot of money, and you start making a lot of money,
4:44
Speaker 1: how do you not go broke? That's why seventy percent
4:46
Speaker 1: of those in the NFL, as an example, have foul
4:49
Speaker 1: bankruptcy NFL, I think in NFL and I think probably
4:52
Speaker 1: speaking NBA same it's over sixty percent bankruptcy within five years.
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Speaker 1: So credit allows you to access capitol knowledge in the head.
5:03
Speaker 1: Capital is codified in the financial sector, access financial capital
5:08
Speaker 1: knowledge about accessing this capital using your credit creditability to
5:15
Speaker 1: get prime rate financing from banks because they trust you
5:21
Speaker 1: so that you can build wealth in your sleep. You
5:23
Speaker 1: make money during the day. Thank you Tony Wrestler again
5:26
Speaker 1: for this great quote. You make money during the day,
5:28
Speaker 1: you build wealth in your sleep. If you don't get
5:33
Speaker 1: that memo, then you're just hustling your whole life. And
5:36
Speaker 1: at some point when your outflows at your inflows in
5:39
Speaker 1: your overhead will be your downfall. If you make a
5:42
Speaker 1: dollar spend a dollar fifty. The more money you make
5:44
Speaker 1: the broker you get. But you don't realize it because
5:47
Speaker 1: you're not managing the paperwork. You're not looking at financial statements,
5:50
Speaker 1: income statements, cash row statements, balance sheets, credit reports. You're
5:55
Speaker 1: not noticing that you're not paying your bills and that
5:58
Speaker 1: as result of that, you're paying the highest rate for
6:00
Speaker 1: credit in the country, and you have the lowest access
6:04
Speaker 1: to credit in the country. And that cost of capital
6:11
Speaker 1: eats into your profit, which means you may actually be
6:13
Speaker 1: making a lot of sales but not making a lot
6:15
Speaker 1: of profit, if or if any and if you have
6:17
Speaker 1: a profit margin of five percent or ten percent or
6:20
Speaker 1: fifteen percent on your product, but you're paying twifteen or
6:23
Speaker 1: twenty percent for the cost of capital. Simple math is,
6:26
Speaker 1: you're actually losing money if you're fully leveraged in that business,
6:31
Speaker 1: or even mostly leveraged in that business. Let's come back,
6:34
Speaker 1: bring us back to home. Half of black folks, now,
6:40
Speaker 1: this is my podcast is for everybody. Right, if you're Latino,
6:44
Speaker 1: this applies to you. If your white middle class, this
6:46
Speaker 1: applies to you. If you're white rural poor, it applies
6:49
Speaker 1: to you. If you're Indian Indian Reservation. This applies to you.
6:51
Speaker 1: If you're black in Africa. It applies to you if
6:55
Speaker 1: you're if you're Asian, this applies to you. Certainly. Woman
7:00
Speaker 1: trying to come up, This applies to you, certainly. If
7:03
Speaker 1: you're African American. You should be paying attention to what
7:05
Speaker 1: I'm saying because I'm African American and I've made it
7:08
Speaker 1: up from nothing, and here's here. Unfortunately, African Americans lead
7:12
Speaker 1: the bottom statistics of the worst areas in finance, which
7:17
Speaker 1: means that if we've been doing so much with so
7:20
Speaker 1: little for so long, we can almost do anything with nothing.
7:23
Speaker 1: That means that if we improve on any of these indexes,
7:27
Speaker 1: my god, the economy and just explodes positively, and we
7:33
Speaker 1: don't have any choice but to do better. Half of
7:36
Speaker 1: all black people, not half of poor people, half of
7:39
Speaker 1: all black people in America, the richest economy on the planet,
7:44
Speaker 1: Black people who've inspired people of color and black people
7:48
Speaker 1: more than a billion Black people all around the world,
7:51
Speaker 1: who inspire them with culture, community creativity. If we say
7:56
Speaker 1: it's cool, it's cool anywhere in the world. As I've
7:58
Speaker 1: said before, that same group who didn't know would never
8:01
Speaker 1: get a lesson on capitalism and commerce and money. Half
8:04
Speaker 1: of all black people have a credit score below six
8:06
Speaker 1: to twenty. Let that sink in from it. I didn't
8:11
Speaker 1: say poor people. Half of all black people have a
8:13
Speaker 1: credit score below six twenty. That think that. Now, I
8:17
Speaker 1: want you to think about this. That means in my
8:19
Speaker 1: credit score, and my wife's credit score, and my you know,
8:22
Speaker 1: I don't know my cousin's credit score, my brother killer
8:25
Speaker 1: Mike's credit score. Our credit scores are let's say, in
8:28
Speaker 1: above seven hundred, seven fifty, right, But then our cousin,
8:33
Speaker 1: our nephews, our nieces, people that we love but didn't
8:42
Speaker 1: go to the financial literacy coaching classes, their credit score
8:45
Speaker 1: maybe five hundred. So the top credit scores get pulled
8:51
Speaker 1: down on average from the bottoms. That means the average
8:54
Speaker 1: is six to twenty, which means it's really worse than
8:56
Speaker 1: what I'm saying. But let's just take this as an example.
8:59
Speaker 1: Half of all American so twenty million of forty million
9:02
Speaker 1: on average, have a credit score below six twenty. That
9:05
Speaker 1: means when we wake up in the morning, even though
9:06
Speaker 1: we're talking about police brutality and racism and discrimination and
9:10
Speaker 1: what's going on in Washington, d C. And all these
9:12
Speaker 1: things that are occupying our mind space in many cases rightly.
9:16
Speaker 1: So that also means that that half of us wake
9:20
Speaker 1: up in the morning locked out of the free enterprise
9:23
Speaker 1: system completely. And if your day's not about God or love,
9:28
Speaker 1: as I said earlier, days about money, you go to
9:31
Speaker 1: the club tonight after you listening to this podcast and
9:34
Speaker 1: do your work and you meet this fine woman. Oh man,
9:38
Speaker 1: she's fine. It's this handsome dude. Oh girl said, Oh
9:40
Speaker 1: she's so handsome. What's your name? I don't know what's
9:43
Speaker 1: your name? Okay, cool, what do you What's what's up?
9:47
Speaker 1: The next question, what's your credit score? And I'm only
9:50
Speaker 1: partly kidding, right, because when the when, the when, the
9:54
Speaker 1: when the looks drop, when the looks fight or fade
9:56
Speaker 1: away and the body drops, that's your business part for life.
10:02
Speaker 1: Marriage ultimately came out of business and transitioned into spirituality.
10:06
Speaker 1: And really, in many cases, simplistically, many people just think
10:09
Speaker 1: it's about oh my gosh, she's fine, she's sexy, and
10:13
Speaker 1: it's gonna let it's a temporary decision to make last
10:15
Speaker 1: you a lifetime. You can't afford to get this one
10:20
Speaker 1: wrong because in a relationship two plus two, she equals
10:23
Speaker 1: six eight or ten, not four, not two plus two
10:26
Speaker 1: equals four, six eight or ten. If you're not better together,
10:28
Speaker 1: what are you doing? Friendships, partnerships, marriages, all kind of
10:33
Speaker 1: relationships back to credit, So there's not so some people
10:38
Speaker 1: somebody said, Okay, John, you've now mentioned that half of
10:42
Speaker 1: black people have crits grbolo six twenty. What does that mean?
10:44
Speaker 1: That means you can't get a decent car loan at
10:46
Speaker 1: six twenty. I mean you can go to an audio dealership,
10:50
Speaker 1: an auto dealer lot lot in a secondary a used
10:54
Speaker 1: car auto dealership in an underserved community where I grew up,
10:57
Speaker 1: and go get try and get get that previously own Mercedes.
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Speaker 1: But you're not buying that. If your credit is five
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Speaker 1: eighty five fifty six y ten, six twenty, you're not
11:07
Speaker 1: getting the Mercedes. You're getting a Mercedes payments. It's a
11:11
Speaker 1: mobile bomb. It's going to explode on you as you're
11:13
Speaker 1: driving down the road. And that car dealership makes their
11:16
Speaker 1: money three ways, and make the money on car sales
11:18
Speaker 1: to a lesser degree, on finance department and warranties to
11:23
Speaker 1: a greater degree, and they really make their money on maintenance.
11:27
Speaker 1: So they hope that the car either breaks down or
11:29
Speaker 1: you break down. Either the car breaks down you got
11:32
Speaker 1: to bring it back for maintenance, or you break down
11:36
Speaker 1: and you got to bring it back because it's a
11:38
Speaker 1: repossession and they get to resell it to somebody else
11:40
Speaker 1: in Chiching all over again. You can't get a home loan,
11:46
Speaker 1: not a prime rate loan at below seven hundred credit
11:49
Speaker 1: score at six's eighty six fifty, right, you can't get
11:54
Speaker 1: And by the way, you should never ask what the
11:56
Speaker 1: payment is when there's an interest rate attach. Black folks,
11:58
Speaker 1: brown folks, we tend white folks. We tend to be paymentized.
12:02
Speaker 1: We tend to be paymentized. What's the payment? You never
12:06
Speaker 1: ask what the payment is when there's an interest rate attached,
12:08
Speaker 1: and certainly if it's five zeros attached or more, you
12:12
Speaker 1: never ask what the payment is. When there's an interest
12:15
Speaker 1: rate attached. You ask what's that interest rate? Because at
12:18
Speaker 1: five or six zeros is going to eat you alive
12:21
Speaker 1: over time. During the mortgage crisis, folks didn't pay attention.
12:25
Speaker 1: Some people signed up to adjustable rate mortgages, which means
12:28
Speaker 1: that the payments went up and down depending on where
12:30
Speaker 1: interest rates went and interest rates fluctuated and never never
12:33
Speaker 1: to your advantage. By the way, it always went up
12:36
Speaker 1: or worse. You got a negative amortization mortgage, which means
12:38
Speaker 1: that every payment you made on that mortgage, you owe
12:44
Speaker 1: more the next payment than you did the last because
12:46
Speaker 1: it's negative amortization, which means versus positive amortization, which means
12:49
Speaker 1: the payment's going down a little bit with every mortgage
12:52
Speaker 1: payment negative amortization. To see, this is why financial literacy
12:55
Speaker 1: is a civil rights issue this generation. When you know better,
12:57
Speaker 1: you do better. It's why making smart sexy is real,
13:01
Speaker 1: because you've got to know what amortization means negative and
13:04
Speaker 1: positive in this example, Otherwise somebody's going to rob you
13:07
Speaker 1: in broad daylight and separate you from your wallet. A
13:09
Speaker 1: negative amortization mortgage over time just grows in balance. How
13:13
Speaker 1: do you ever get out of it? A lot of
13:15
Speaker 1: people signed up to them in two thousand and eight,
13:17
Speaker 1: two thousand and nine economic crisis and just worad mortgage.
13:22
Speaker 1: You want to fix rate mortgage at prime rates. You
13:24
Speaker 1: can't get that unless with good credit. Go back to
13:28
Speaker 1: half of black folks have a credit score below six twenty. Again,
13:31
Speaker 1: you have a great business idea, you can't get business
13:36
Speaker 1: loan below seven hundred, it's risky credit. It's the riskiest
13:39
Speaker 1: form of bank credit. So you think the bank has
13:42
Speaker 1: financial has discriminated against you. Maybe they did. I think
13:47
Speaker 1: it's more likely because I know modern day banks. Most
13:50
Speaker 1: of them are publicly traded or hot and or highly regulated.
13:55
Speaker 1: And I met these people who run most of these banks,
13:59
Speaker 1: and they're on backlece, really good people, and they want
14:02
Speaker 1: to make a good loan because if they don't make
14:04
Speaker 1: a good loan, they cannot make a good profit. So
14:09
Speaker 1: they want you to be well qualified and to pay
14:11
Speaker 1: the loan back. They don't want the property. They can't
14:13
Speaker 1: do anything with the property that They're not a repo company.
14:16
Speaker 1: They're a bank. They make money on the spread between
14:19
Speaker 1: what they're paying depositors for interest on their savings and
14:23
Speaker 1: what they're and the efficiency of running the management of
14:28
Speaker 1: an administration of the bank and the interest rate they
14:31
Speaker 1: charge you on the cost of money. The difference, the
14:34
Speaker 1: delta they call it. The difference is profit right, and
14:40
Speaker 1: if you have great credit, you negotiate the best rates.
14:44
Speaker 1: They get the slim as profit, but they also don't
14:46
Speaker 1: have to chase you for their money, so it's like
14:49
Speaker 1: clipping a coupon. It's just rinse and repeat. The bank
14:51
Speaker 1: loves people with good credit because it's guaranteed income. Ever, again,
14:56
Speaker 1: everybody wins. I've often said a good negotiation is where
15:00
Speaker 1: everybody walks away from the table slightly annoyed because nobody
15:06
Speaker 1: got everything they wanted. The bank didn't get the most
15:08
Speaker 1: profit and the barer didn't get the lowest rate, but
15:11
Speaker 1: they both got enough to be satisfied. I just negotiated
15:14
Speaker 1: the sale of one of my collector cars, and I
15:18
Speaker 1: wanted a price of X. The buyer was able to
15:23
Speaker 1: show a legitimate thing that needed to be fixed because
15:26
Speaker 1: it's a previously owned vehicle, and I wasn't thrilled about that.
15:32
Speaker 1: But the bar I had prime The buyer had prime
15:35
Speaker 1: credit pre approved from their bank. They were a doctor,
15:39
Speaker 1: and so that incentivized me to go ahead and take
15:43
Speaker 1: the discount on the sale of the car. Because I
15:46
Speaker 1: had a great buyer. What I knew is gonna be
15:48
Speaker 1: no drama. He's already preapproved. The deal's going to close
15:52
Speaker 1: very quickly. I have a time value of my money.
15:55
Speaker 1: I don't want to we can messing around with selling
15:56
Speaker 1: this car, reselling the car, negotiating with five, eight, ten
15:59
Speaker 1: different and buyers or even three or two buyers. Here's
16:02
Speaker 1: one buyer I absolutely know can buy the car. He's
16:05
Speaker 1: agreed to the purchase price, but he wants a discount
16:07
Speaker 1: based on a negotiable item that I found legitimate, and
16:11
Speaker 1: I said yes because he was a prime credit buyer.
16:18
Speaker 1: When you are a prime credit buyer, you walk in
16:20
Speaker 1: the room ready to drop the mic. So half of
16:23
Speaker 1: us have a credit scorer below six twenty, which means
16:26
Speaker 1: no matter. Again, the people who provide credit want to
16:29
Speaker 1: provide it to you. I'm not talking about hard money
16:32
Speaker 1: lenders and these shylocks and all these folks trying to
16:34
Speaker 1: separate you from your wallet. I'll get to that in
16:36
Speaker 1: a second, because I've got some, unfortunately some recent examples
16:39
Speaker 1: of that in my extended world, folks who come to
16:42
Speaker 1: me trying to get help at the last minute. But
16:48
Speaker 1: I'm just telling you that these banks, corporations for credit providers,
16:51
Speaker 1: they love folks with excellent credit for the reasons I've
16:54
Speaker 1: already mentioned, and I want you to be one of them.
16:57
Speaker 1: And the great thing about getting your credits grew up
16:59
Speaker 1: is it's in your control. Like I can't control racism, discrimination, sexism, bias,
17:05
Speaker 1: whether somebody likes you or not. But what I can
17:08
Speaker 1: can say is if you go to that computer at
17:09
Speaker 1: midnight tonight and your credit is above seven hundred and
17:13
Speaker 1: you're trying to get a loan or a line of
17:14
Speaker 1: credit below let's say one hundred thousand dollars, and you've
17:17
Speaker 1: got a job right and you can afford it, the
17:21
Speaker 1: chances of the bank telling you yes is extremely high.
17:27
Speaker 1: I know because I've done it. The computer that doesn't
17:30
Speaker 1: done it what color you are, doesn't know what race
17:31
Speaker 1: you go are, doesn't know what gender you are. At midnight,
17:34
Speaker 1: you're hitting that button that application at midnight. The computer,
17:38
Speaker 1: the analytics, the robotics, and increasingly the AI just goes
17:43
Speaker 1: through a process, and if you meet the process, the
17:45
Speaker 1: answers yes in that liberating that means it's a whole
17:50
Speaker 1: new world. I've actually said this boldly. If you want
17:54
Speaker 1: to stabilize America, just raise credit scores one hundred points.
17:58
Speaker 1: I know that sounds crazy. Ever, mayor listening to this.
18:01
Speaker 1: If you if you're you're mayor and your city, you're
18:03
Speaker 1: a city council person, your governor is not listening to this,
18:06
Speaker 1: send it to them, ask them to listen to it.
18:09
Speaker 1: We had all this trauma and drama and divisionist country,
18:12
Speaker 1: Republicans and Democrats, and rural and urban and all this
18:15
Speaker 1: rich and poor. Look, just raise credit score is one
18:20
Speaker 1: hundred points in your neighborhood, and the entire reality changes.
18:24
Speaker 1: And I'm going to go through the data in a
18:26
Speaker 1: minute to prove what I'm saying. So tell your mayor
18:30
Speaker 1: to start this video at minute eighteen. And as I
18:35
Speaker 1: unpacked this story, let me tell you real quickly what
18:37
Speaker 1: happens quickly, what happens when you have horrible credit or
18:41
Speaker 1: you're financially illiterate. Sorry, so a friend of mine. I
18:43
Speaker 1: can't get that much detail, otherwise you might figure who
18:46
Speaker 1: out figure out who this is. And I don't want
18:48
Speaker 1: to embarrass them. It's not because it's not helpful to them.
18:51
Speaker 1: But they own prime real estate in an inner city neighborhood.
18:55
Speaker 1: They had a really successful have a really successful business.
18:58
Speaker 1: They own the real estate. Now they own one piece
19:01
Speaker 1: of real estate. They're trying to buy two other pieces
19:03
Speaker 1: of real estate on the same street this area. I
19:07
Speaker 1: guarantee you the price is going to do nothing but
19:09
Speaker 1: go up. In fact, if I had a chance to
19:11
Speaker 1: buy this property in question. I would have bought it
19:13
Speaker 1: and just set on it. He went to a hard
19:16
Speaker 1: money lender, meaning a non prime lender. It is what
19:22
Speaker 1: it sounds like, hard money, heart expensive. I don't know why.
19:27
Speaker 1: I don't know why he why. Actually he was having
19:29
Speaker 1: a problem with with a bank because he didn't. Again,
19:31
Speaker 1: the difference a great hustler and a bad business person,
19:35
Speaker 1: or you know, is bad paperwork or or just doing
19:38
Speaker 1: a hustler and a business person is paperwork. And he didn't.
19:43
Speaker 1: He had made the payments, so I hear, but he
19:45
Speaker 1: didn't comply with what's called loan covenants, and the bank
19:50
Speaker 1: foreclosed on him, supposedly. I don't know the details, but
19:52
Speaker 1: that's what I was told. Well, covenants in a bank
19:56
Speaker 1: loan agreement are important as part of the agreement. Again, credibility,
20:02
Speaker 1: it's financial literacy. Anyway, the bank bops him out of
20:07
Speaker 1: the bank. He has to now go. He's in foreclosure.
20:10
Speaker 1: He's trying to put he doesn't want to file bankruptcy.
20:12
Speaker 1: I don't want to file bankruptcy. He's not trying to.
20:14
Speaker 1: He goes and finds a hard money lender who tells
20:18
Speaker 1: him what he wants to hear, gives him a horrible rate.
20:21
Speaker 1: My dad did this. By the way, my dad would
20:24
Speaker 1: respect that an underserved neighborhood as as an overly important equation.
20:30
Speaker 1: My dad did not feel seen. My dad did not
20:32
Speaker 1: feel respected by mainstream America. So when the mortgage broker
20:35
Speaker 1: would come down our neighborhood, if you were offering him
20:38
Speaker 1: two percent interest rate, but you were rude to him,
20:40
Speaker 1: he would he would kick you out, he wouldn't talk
20:42
Speaker 1: to you. But if you were offering an eight or
20:44
Speaker 1: ten or twelve percent interest rate. But you are, mister Smith,
20:47
Speaker 1: and how are you today? And how's your family? And
20:48
Speaker 1: oh I brought you a pie, brought you a cake,
20:51
Speaker 1: and oh I'm so you know, so your pretty house
20:53
Speaker 1: is so pretty, and oh you dress so well. Oh
20:55
Speaker 1: there's some nice shoes you have on. Trying to to
20:58
Speaker 1: really just talk my dad. So we talked my dad
21:02
Speaker 1: into a horrible deal, which he did, and my dad sign.
21:06
Speaker 1: Dad signed as what was a payment on that loan,
21:09
Speaker 1: not what was the interest rate, signed it and the
21:10
Speaker 1: whole thing imploded and we lost everything. As I mentioned earlier.
21:26
Speaker 1: So let's get into this because I've said something pretty bold.
21:31
Speaker 1: Race credit score is one hundred points in your neighborhood,
21:33
Speaker 1: in your family, and you'll see everything change. So your
21:39
Speaker 1: credit score isn't just about borrowing money. It's a single
21:42
Speaker 1: most important number in your financial life and in your
21:45
Speaker 1: community and in your community's life too. Frankly, I would
21:48
Speaker 1: argue that seven hundred credit score is at least as
21:51
Speaker 1: important as a four year education. I know that is,
21:55
Speaker 1: And I want you to get a four year education,
21:56
Speaker 1: by the way, or a higher education. I want you
21:59
Speaker 1: to get this credit score because and somebody's gonna then say,
22:02
Speaker 1: let me just get this out of the way. Isn't
22:04
Speaker 1: credit bad? No? No, no, bad credits bad? Right? Bad
22:07
Speaker 1: debt is bad. There's good debt and it's bad debt.
22:10
Speaker 1: I cover that in another podcast. Go back and listen
22:12
Speaker 1: to that one. Good debt is tied to something that
22:14
Speaker 1: tied to an asset that it may appreciate. Bad debts
22:17
Speaker 1: tied to an asset that or something that will properly
22:20
Speaker 1: depreciate go down in value. You want assets that appreciate that,
22:24
Speaker 1: not that depreciate. Can I get an amen? So you
22:27
Speaker 1: have good debt and bad debt. Right, So there's not
22:30
Speaker 1: a successful city. It's not as successful. Think about Los Angeles,
22:35
Speaker 1: New York, Atlanta, right as examples, Seattle or whatever. There's
22:38
Speaker 1: not a Minneapolis is not a successful state. It's not
22:41
Speaker 1: a successful government, including ours. It's not a successful.
22:46
Speaker 2: A millionaire, multimillionaire cent a millionaire, one hundred millionaire, billionaire,
22:51
Speaker 2: multi billionaire, successful corporation, fortueen five hundred company that didn't
22:56
Speaker 2: do it on the back of good debt.
22:58
Speaker 1: Please hear me. That's a drop the mic. There's no
23:01
Speaker 1: successful entity, person, individual, or initiative that didn't do it
23:05
Speaker 1: on the back of good debt or back of money
23:08
Speaker 1: and hopefully good debt. I guess you got a got
23:12
Speaker 1: lucky with bad debt and just hustled enough of god
23:14
Speaker 1: lucky and then you stumbled into good debt at some point.
23:16
Speaker 1: But at some point you've got to get the good
23:19
Speaker 1: debt otherwise the initiative whatever you've writing on has to explode.
23:23
Speaker 1: And debt is allows you to sort of responsibly leverage
23:26
Speaker 1: the returns of an investment of getting off into something else.
23:29
Speaker 1: I may say focused on this credit thing, so credit
23:33
Speaker 1: scores for communities seven hundred credit scores in particular, I
23:37
Speaker 1: want to think, by the way, experience for giving us
23:39
Speaker 1: the data alongs to you as Census and others to
23:41
Speaker 1: build this Hope Financial Wellness Index. You can go to
23:43
Speaker 1: your computer right now, type in operation Hope, go on
23:46
Speaker 1: our website, or just type in Hope Financial Wellness Index
23:48
Speaker 1: and Hope Credit Score Index or Hope seven undred Credit
23:51
Speaker 1: Score Index and you can all this will all pull
23:53
Speaker 1: up the Hope Financial Wellness Index. Type in your zip code,
23:55
Speaker 1: I'll tell you how you're living. You type in your
23:57
Speaker 1: zip code and that database, I'll tell you what your
24:00
Speaker 1: credit score is in your neighborhood. And I'll tell you
24:02
Speaker 1: how you're living. And as I said before, you hang
24:04
Speaker 1: around nine bro people, you're going to be the tenth.
24:07
Speaker 1: So what does the fire under credit score neighborhood look
24:09
Speaker 1: look like? It's a check casher next to a petty
24:12
Speaker 1: loan lender, next to a rental owned store, next to
24:15
Speaker 1: a title lender, next to a liquor store, next to
24:19
Speaker 1: a pawn shop. Can I get an amen? And a
24:22
Speaker 1: church down the street trying to make you feel a
24:24
Speaker 1: little bit better once a week so you don't go
24:26
Speaker 1: crazy and go postal on Monday. Right, I'm joking, but
24:29
Speaker 1: I'm serious, Like your church is your neighborhood therapist.
24:34
Speaker 2: And.
24:36
Speaker 1: We think this is normal. This is not normal. This
24:38
Speaker 1: is what this is target marketing in a fire under
24:41
Speaker 1: credit score neighborhood. And just to prove this is not
24:43
Speaker 1: about race or class or any other stuff, right, and
24:45
Speaker 1: how this is a great equalizer and the great empowerment
24:48
Speaker 1: tool if you get it right. Is that same example
24:50
Speaker 1: of this game you check cash or payday, loan, lender, rental,
24:52
Speaker 1: own store, title, lender, liquor store, pawn shop. That's also
24:55
Speaker 1: the same thing you see in a white, real, poor neighborhood.
24:58
Speaker 1: I was talking about black urban, black and brown urban
25:00
Speaker 1: neighborhoods as the prime example here, and that's what we
25:02
Speaker 1: go through in the data I'm about to show you.
25:04
Speaker 1: But you see the same thing in a poor, white
25:07
Speaker 1: real neighborhood. Can I get an a man? It's the
25:09
Speaker 1: same thing around the mouth of a military base because
25:13
Speaker 1: those military personnel cannot have bad credit and have a
25:16
Speaker 1: security clearance? Am I going too fast? Like this is
25:19
Speaker 1: a really powerful episode and I really want you to
25:22
Speaker 1: get it. So if you got to hit backwards, hit
25:25
Speaker 1: reverse on this, or play it again and play it
25:27
Speaker 1: two or three times, then you should do it. So
25:31
Speaker 1: what is credit really? Right? Credit equals trust plus your
25:36
Speaker 1: payment history. What a credit score range is three hundred
25:40
Speaker 1: to eight fifty. My credit score is high seven hundreds,
25:44
Speaker 1: low eight hundreds. My wife's over eight hundred because she's
25:47
Speaker 1: got low less drama going on financially than I do.
25:49
Speaker 1: I've got a lot of stuff that I'm literally financing,
25:52
Speaker 1: and so it looks like I got a crack at
25:54
Speaker 1: addiction or something with my dang on AMEX black card
25:57
Speaker 1: because I've put operation to ope in other things on
25:59
Speaker 1: my black cards that don't have an expense account have
26:01
Speaker 1: an expensive report, which means that I just get reimbursed
26:04
Speaker 1: for proper expenses for my different entities, but I initially
26:07
Speaker 1: charge all that on my black cart, so I carry
26:10
Speaker 1: a very large balance as a result of that. The
26:11
Speaker 1: credit bureaus rightly so, which which pay it put a
26:15
Speaker 1: higher weight, higher measurement on credit scores on consumer debt,
26:18
Speaker 1: They rightly so say, well, this guy, even though he
26:20
Speaker 1: makes a lot of money, he's got a high net worth,
26:22
Speaker 1: he's you know, I don't like his consumer debt level,
26:24
Speaker 1: so I'm gonna I'm gonna ing his credit score a
26:26
Speaker 1: little bit. And by the way, you have different credit
26:28
Speaker 1: scores or different things, you have a different credit score
26:30
Speaker 1: for consumer credit credit cards than for auto loans, then
26:34
Speaker 1: for mortgage loans, then for small business loans. These are
26:37
Speaker 1: different formulas for credits. Course, I'm giving you the consumer credit,
26:41
Speaker 1: the basic one right right now again, watch this over,
26:45
Speaker 1: listen to this over and over again for the parts
26:47
Speaker 1: that you missed. Here's some myths. So, so why is
26:52
Speaker 1: seven a credit score a great number? Because it gives
26:55
Speaker 1: you prime credit access right, lower interest rates and wealth
26:58
Speaker 1: building opportunities. What is a myth? Credit isn't about being rich,
27:05
Speaker 1: It's about being responsible. That is a myth buster buster
27:09
Speaker 1: because it is exactly that. It is not about being rich,
27:13
Speaker 1: it's about being responsible. But people think that credit somehow
27:16
Speaker 1: is tied to being rich, and we bought wrongly thought
27:18
Speaker 1: that in the being taught in our churches and my
27:21
Speaker 1: neighbor as I grew up in that money was evil. No,
27:23
Speaker 1: money and debt are not evil. The love of money
27:26
Speaker 1: is evil, and bad debt should be evil. Bad capitalism
27:30
Speaker 1: is like slavery, I mean literally, slavery is bad capitalism,
27:34
Speaker 1: drug dealing, all that stuff, So that should be avoided.
27:36
Speaker 1: So it's a good stuff you want, and that has
27:39
Speaker 1: to do with your intentionality your knowledge and your moves.
27:43
Speaker 1: Your zim code predicts more about your your financial health
27:47
Speaker 1: than your genetic code. Where zim code you grew up in,
27:53
Speaker 1: born in, or lived in will have an enormous impact
27:58
Speaker 1: in your life. Again, I'm gonna come back. Uh, I'm
28:01
Speaker 1: gonna go through it. I'm gonna go to it right now. Like,
28:03
Speaker 1: let me just let me limit explain exactly what I'm
28:08
Speaker 1: talking about. Let me take the city of Saint Louis, Missouri.
28:12
Speaker 1: You can pull these examples up from the Hope the
28:14
Speaker 1: Financial Willness Index by the way online, so the Hope
28:17
Speaker 1: Community Credit Index for Saint Louis, Missouri. And I'm I
28:20
Speaker 1: was born in East Saint Louis, which is even worse.
28:22
Speaker 1: The numbers are worse than East St. Louis and Saint Louis.
28:24
Speaker 1: But in fact you may get some of that here. Uh.
28:26
Speaker 1: The following data are from the neighborhoods of car Square
28:31
Speaker 1: and Clayton, Saint Louis. These two neighborhoods are less than
28:34
Speaker 1: nine minutes apart, nine miles apart. So as you as
28:36
Speaker 1: I go through these these examples, if you see a
28:39
Speaker 1: snippet of this online type in what if this is
28:42
Speaker 1: your city right and say, man, if you're listening to
28:45
Speaker 1: this and you're while you're jogging, whatever, if this, if
28:47
Speaker 1: I've hit a nerve where you live, Okay, So Car
28:50
Speaker 1: square C A R R, zip code sixty three one
28:53
Speaker 1: oh six, average credit score six oh two, Clayton zip
28:58
Speaker 1: code three six three one five credit score seven forty five.
29:03
Speaker 1: I get this meeting the household income in Car twenty
29:07
Speaker 1: one thousand and four to seventy five dollars in Clayton,
29:10
Speaker 1: nine miles away one hundred and twenty thousand dollars basically
29:14
Speaker 1: one hundred nineteen thousand, four hundred and forty six. Unemployment
29:17
Speaker 1: rate eight point three percent in Car in Clayton, two
29:21
Speaker 1: point four percent, Night and day home ownership rate eleven
29:25
Speaker 1: point nine percent in Car eleven point nine percent in
29:29
Speaker 1: Clayton not much not excellent, but it much better fifty
29:32
Speaker 1: six point four percent. I wonder whether in Clayton, where
29:37
Speaker 1: there's a lot of rental, multi family rentals and commercial
29:40
Speaker 1: buildings versus single family homes. I mean look in that
29:44
Speaker 1: to find that information out. By the way, the average
29:46
Speaker 1: credit score for African average homeowners rate for African Americans
29:49
Speaker 1: forty four percent. Average home owners rate in the country
29:52
Speaker 1: for white Americans seventy five percent. Last time I checked
29:55
Speaker 1: that delta. That difference of thirty percent is generational wealth
29:59
Speaker 1: because the number one way you build wealth in America
30:01
Speaker 1: is home ownership. Meeting the household didn't coome in car Again,
30:07
Speaker 1: the six oh two area zip code six sixth oh
30:10
Speaker 1: two credit score neighborhood is one hundred and eighty six thousand,
30:13
Speaker 1: seven hundred. Not bad but the zip But the average
30:17
Speaker 1: home value in Clayton seven thirty five thousand, five hundred. Now,
30:21
Speaker 1: why are these so different? Back in the day redlining,
30:26
Speaker 1: where'd that come from? Didn't come from banks, that's what
30:27
Speaker 1: you were told. Banks discriminated against you. No, it came
30:30
Speaker 1: from the federal government. The FAHA, Federal Housing Authority in
30:33
Speaker 1: the nineteen were the first part of the twentieth century,
30:37
Speaker 1: discriminated against black and brown neighborhoods. And it was really
30:41
Speaker 1: sad because these these folks literally couldn't live anyplace else,
30:45
Speaker 1: and they came up from the South and they were
30:47
Speaker 1: forced in these areas. And firstus given the folks opportunity
30:51
Speaker 1: to gave him grief, and then the federal FHA wouldn't
30:54
Speaker 1: guarantee a mortgage in that neighborhood because they said it
30:57
Speaker 1: was crime written and dangerous. Well, what do you expect
31:01
Speaker 1: when you put a bunch of poor people with no
31:02
Speaker 1: opportunity and no education and they just came from slavery
31:05
Speaker 1: and Jim Crow Hello. Anyway, they didn't. They refused to
31:10
Speaker 1: finance the more and in what's the government's job if
31:12
Speaker 1: not to offset unintentional society or risk like this for
31:17
Speaker 1: people who did nothing wrong. But anyway, they refused the
31:20
Speaker 1: finance a mortgage insure mortgage in that port so called
31:24
Speaker 1: poor neighborhood, Black and bron neighborhood. But where they insure
31:26
Speaker 1: it in the suburbs where whites had moved. That meant
31:30
Speaker 1: that banks again common sense, Where are you going to
31:33
Speaker 1: put your mortgage at a risky area with no mortgage
31:36
Speaker 1: insurance from the government where you're guarantee get your money back,
31:40
Speaker 1: or from a suburban neighborhood where you're guaranteed to get
31:43
Speaker 1: your money back either through the borrower and the in fact,
31:45
Speaker 1: they got great credit typically or better credit ratings, but
31:49
Speaker 1: more so the government is this is said, I'll guarantee
31:51
Speaker 1: your loan. Of course you're going to go to the suburbs.
31:53
Speaker 1: So that meant there was more transactions, There was more
31:57
Speaker 1: capital flows, more fluidity of money flowing in that area,
32:02
Speaker 1: more economic activity going that area, higher incomes in that area,
32:06
Speaker 1: more services in that area, and the values popped up
32:09
Speaker 1: in those areas. People, more people buying and selling in
32:11
Speaker 1: that area. With the reasons I just mentioned. You can
32:13
Speaker 1: get a mortgage, you can get mortgage insurance. And where
32:16
Speaker 1: did economic stall poor struggling black and brown neighborhoods that
32:23
Speaker 1: were red lined and there were green lined in the
32:25
Speaker 1: other areas which depressed values. Okay, say, focused again on
32:30
Speaker 1: this credit thing. But as you see, as you can tell,
32:32
Speaker 1: I can go in so many different directions at one
32:36
Speaker 1: time on one podcast, but I got fifteen more minutes.
32:40
Speaker 1: I want to cover a lot of ground here. Property
32:43
Speaker 1: crimes the in car square sixty per one thousand, property
32:48
Speaker 1: crimes sixty two point three compared to fourteen point zero
32:51
Speaker 1: in Clayton. Violent crimes per thousand residents seventeen point one
32:55
Speaker 1: sur fateen point seven versus point zero set or zero
33:00
Speaker 1: point seven zero point seven basically non existing in Clayton
33:05
Speaker 1: versus almost twenty percent violent crimes for on a thousand
33:08
Speaker 1: and Car high school graduation rates. Actually, this is not bad.
33:13
Speaker 1: Number eighty two point one percent in Car, ninety seven
33:17
Speaker 1: point one percent in Clayton ninety seven percent basically means
33:19
Speaker 1: it went to college. Just to be clear, life expectancy, again,
33:22
Speaker 1: this is completely predictable. You're starting to see this as
33:25
Speaker 1: a trend line. Seventy one years of age in Car,
33:28
Speaker 1: eighty three years of point five years in Clayton. So
33:31
Speaker 1: what I found is, and this is the part that
33:34
Speaker 1: this is not an exact science, but I found this
33:36
Speaker 1: to be true looking at the data, for every fifty
33:39
Speaker 1: point gain in credit score above five hundred, you live
33:42
Speaker 1: five more years. Isn't that crazy, right? So the average
33:47
Speaker 1: five I found is that in a five hundredit corre
33:49
Speaker 1: neighborhood you lived to about sixty one years of age.
33:55
Speaker 1: In a seven hundred credit cord neighborhood you lived eighty
33:58
Speaker 1: one years of age, about five year extension of life
34:02
Speaker 1: for every fifty point increase in your credit score. It's
34:05
Speaker 1: not about the credit score, by the way, It's about
34:07
Speaker 1: the trending indicator of hope, well being, believed, faith, confidence,
34:10
Speaker 1: joy like you know your uplift like whether you believe
34:14
Speaker 1: you can or whether you believe you can't. You're right.
34:16
Speaker 1: I can't guarantee you that being positive is going to
34:18
Speaker 1: make you successful, but I absolutely guarantee you that being
34:20
Speaker 1: negative is going to make you fail. A disease is
34:24
Speaker 1: often disease. Right again, my wife Shaser talks about wellness
34:28
Speaker 1: and health wealth, right, these things go together. Right, let's
34:31
Speaker 1: talk about Atlanta'm gonna go through this data really quick
34:34
Speaker 1: so you can see a different cities. Again, it's from
34:37
Speaker 1: all from the same index, whole financial wellness index, which
34:39
Speaker 1: I expect you to go to your website and type
34:41
Speaker 1: in your zip code yourself Forest Park three oh two
34:45
Speaker 1: ninety seven six twenty nine credit score is not that bad. Actually,
34:49
Speaker 1: Virginia Highlands three oh three oh six, which has gotten gentrified.
34:53
Speaker 1: And by the way, gentrification has nothing to do with race.
34:55
Speaker 1: Gentrification is literally defined as a movement to a middle
34:59
Speaker 1: class values. So it could be black middle class values,
35:03
Speaker 1: Latino women white, you know, doesn't really matter, right, It's
35:06
Speaker 1: just that tends. What tends to happen is that folks
35:08
Speaker 1: are looking for a value who are Caucasian, young and
35:12
Speaker 1: well educated. Not racist. See black and brown neighborhoods as
35:16
Speaker 1: cool and hip and it's the music they listen to
35:19
Speaker 1: and the food they like, and prices are right cheap,
35:22
Speaker 1: so they come and buy there, and then they start
35:24
Speaker 1: bidding up the prices. In the way in which are
35:26
Speaker 1: described about the suburbs earlier, are we solving a lot
35:29
Speaker 1: of problems? In one podcast? By the way, I just
35:31
Speaker 1: debscribed to gentrification, redlining. Okay, you deal with you deal
35:35
Speaker 1: with my you know, my friend Melody Hobson would say,
35:38
Speaker 1: you deal with Mathew, you get well. Well, I say,
35:42
Speaker 1: if you deal with if you deal with the math
35:45
Speaker 1: and the economics, you get racism for free. Right, you
35:47
Speaker 1: just zero that stuff out. Do the economics. You get
35:49
Speaker 1: racism for free. You saw poverty, You saw poverty for free.
35:53
Speaker 1: But she would say that she likes math because it
35:55
Speaker 1: doesn't have an opinion, which is what I'm saying here,
35:58
Speaker 1: Forest Park, uh Median house or income forty five thousand.
36:01
Speaker 1: I'm gonna start generalizing these numbers so I get through this.
36:04
Speaker 1: Virginia Highlands one hundred and thirty three thousand, again, this
36:07
Speaker 1: is these are fifteen miles apart, so less than a
36:10
Speaker 1: twenty minute drive, fifteen thirty thirty minute maximum drive. These
36:14
Speaker 1: are these are you know, city you know, urban city miles, right,
36:19
Speaker 1: not highway miles. Unemployment rate six point seven percent uh
36:24
Speaker 1: in Forest Park versus four point five. It's actually not bad. Again,
36:27
Speaker 1: these numbers aren't horrible. I'm gonna tell you horrible in
36:30
Speaker 1: a minute. Home ownership brek thirty five point five versus
36:33
Speaker 1: basically sixty percent. Median house home value one hundred and
36:37
Speaker 1: twenty one thousand versus basically eight hundred thousand. Bioling crimes
36:41
Speaker 1: per thousand, nine point five versus two point zero. High
36:45
Speaker 1: school graduation rates seventy six point four versus ninety seven
36:49
Speaker 1: point one. What did I say? Ninety seven mint? Basically
36:51
Speaker 1: you went to college? Again, look at these these jumps
36:54
Speaker 1: based on whether credit score starts at six twenty nine
36:56
Speaker 1: call at six thirty. You start to see the life
37:00
Speaker 1: expectancy rise up right, and fding crimes are less, and
37:04
Speaker 1: you know, all the disparities are less. Still bad. Life
37:07
Speaker 1: expectancy seventy two point seventy two years versus eighty two years. Okay,
37:11
Speaker 1: let's give you some really, I'll give you a really
37:13
Speaker 1: stark example here. Let me see, let's talk about uh,
37:23
Speaker 1: let's see what Baltimore has to say. So uh, Belair Edison,
37:31
Speaker 1: which is two one two one three. Baltimore, Maryland Rowland
37:35
Speaker 1: Park is two one two one Oh. I can't expect
37:38
Speaker 1: to say, man, when I tell you talk about your area.
37:40
Speaker 1: These areas are less than six miles apart, uh meeting
37:45
Speaker 1: household income fifty thousand dollars versus one hundred and eight
37:47
Speaker 1: thousand dollars, so double unemployment rates six point three versus
37:51
Speaker 1: four four point seven. Home ownership rate not that bad
37:55
Speaker 1: of a difference, fifty three percent versus sixty one percent.
38:00
Speaker 1: Values though one hundred and thirty four thousand versus fire
38:02
Speaker 1: murdering twenty thousand, filing crimes, perenty twelve point four versus
38:07
Speaker 1: three point seven. See the consistency here. Graduation rates eighty
38:10
Speaker 1: three percent versus ninety seven point nine percent. Again at
38:14
Speaker 1: ninety seven percent is consistent those high credit score areas,
38:16
Speaker 1: aren't They basically one hundred percent highly educated, went to college.
38:20
Speaker 1: And I bet two parent households by the way versus
38:22
Speaker 1: single parent households in the hood d a hyphen hood.
38:26
Speaker 1: Seventy percent of black households run by women. That's not
38:29
Speaker 1: a mistake, It's not an accident. That's it's basically, you know,
38:32
Speaker 1: a community and that's just trying to survive. That includes
38:36
Speaker 1: my mother, by the way, life expectancy again, sixty six
38:41
Speaker 1: point four years versus eighty four point three years. Okay.
38:44
Speaker 1: And in Chicago you have them doing this one by
38:48
Speaker 1: by memory. Chicago, you had Lincoln Park and then you
38:55
Speaker 1: had oh, it's blanking on the other community's name, but
39:00
Speaker 1: it was a low income area. Garfield Park. I think
39:05
Speaker 1: I think it's Garfield Yeah, Garfield Park in Lincoln Park,
39:08
Speaker 1: fifteen minutes apart. You'll tell me in the comments. I'm
39:10
Speaker 1: sure you guys don't let me get away with anything.
39:12
Speaker 1: I'm doing this from memory. And you know, Lincoln Park
39:15
Speaker 1: was seven fifty seven seventy credit score or something, and
39:18
Speaker 1: Garfield Park was tore u from the flow up. Everythink
39:20
Speaker 1: it was like high five hundred. You lived at sixty
39:22
Speaker 1: one years of age in Garfield Park, you lived to
39:25
Speaker 1: eighty one eighty five years of age plus in Lincoln Park,
39:28
Speaker 1: depending on the area and the numbers. Botent crime was
39:31
Speaker 1: off the chain. Like it was just a complete dichotomy. Right,
39:36
Speaker 1: let's look at you know, Dallas is not going to
39:39
Speaker 1: be that bad. I'll do Dallas because somebody listening wanted
39:43
Speaker 1: to cover that. Cedar Crest seven five two oh three.
39:45
Speaker 1: Highland Park seven five to two oh five is Dallas,
39:48
Speaker 1: Texas six twenty seven versus seven forty five. It's credit
39:52
Speaker 1: scores median house on income forty six versus one hundred
39:55
Speaker 1: and eighty eight thousand, Unemployment rate seven and a half
39:59
Speaker 1: versus four point six. Home ownership rate thirty seven percent
40:02
Speaker 1: versus sixty percent meeting household income Wow. One hundred and
40:07
Speaker 1: twenty five thousand versus one point five million. These communities
40:10
Speaker 1: are what seven miles apart? Crazy violent crimes per top
40:14
Speaker 1: per thy twelve point three versus two point seven percent.
40:19
Speaker 1: Here we go again. High school graduation rates sixty six
40:21
Speaker 1: point seven percent to ninety eight point six percent. Essentially,
40:24
Speaker 1: you went to college, higher education, life expectancy seventy three
40:29
Speaker 1: years versus eighty three plus years. You see, I like math.
40:32
Speaker 1: It doesn't have an opinion like. I'm not cherry picking.
40:35
Speaker 1: I'm not giving you specialized data. I'm telling you the wait.
40:38
Speaker 1: It TI is Detroit, Michigan. Jefferson Chalmers. I'm sorry Detroiter's
40:46
Speaker 1: if I missed that, I missed if I mangled that right,
40:50
Speaker 1: Jefferson chalmers uh at forty eight two one five zip
40:54
Speaker 1: code versus gross point for eight to two three oh,
40:57
Speaker 1: these are neighbors are two two miles apart. Okay, household
41:03
Speaker 1: income thirty three thousand versus one hundred and thirty one thousand,
41:07
Speaker 1: credit score six twenty versus seven forty six, two miles apart.
41:21
Speaker 1: I love this dramatic difference, two miles apart. Unemployment rate
41:24
Speaker 1: twelve point nine versus three point one, home ownership rates
41:27
Speaker 1: forty nine percent versus seventy seven point seven. That's black
41:31
Speaker 1: versus I can guarantee you that's black neighbor versus a
41:33
Speaker 1: white neighbor. I guarantee you. Somebody tell me in the
41:36
Speaker 1: comments when you see this clips to this on social media.
41:39
Speaker 1: I know you can't do that on the podcast itself,
41:41
Speaker 1: but when you see clips of this on social media
41:43
Speaker 1: or on YouTube, when we do release it there, we
41:45
Speaker 1: release it about every episode about a week after it's
41:47
Speaker 1: released on the podcast. So please comment where you can,
41:52
Speaker 1: because I do want to get an amen or a correction.
41:56
Speaker 1: Violent crimes per thousand, twenty seven point eight versus one
41:59
Speaker 1: point eight right. High school graduation rates eighty four point
42:02
Speaker 1: two percent versus ninety eight point one percent. Again, ninety
42:05
Speaker 1: point one. You went to college. You can't make this up.
42:08
Speaker 1: Coincidence is God's way remitting anonymous. So it's Andrew Young
42:10
Speaker 1: quote life expectancy against six twenty credit score is seventy
42:15
Speaker 1: four years of age versus seven forty six credit score
42:18
Speaker 1: of eighty one years of age. Right, every fifty points
42:21
Speaker 1: about about give or take five years of life expectancy.
42:28
Speaker 1: I'm trying to find one of these cities that it
42:31
Speaker 1: has like a really dramatic, dramatic, dramatic difference. A lot
42:38
Speaker 1: of these cities I'm going through, they're just going to
42:44
Speaker 1: repeat what I'm saying. Here's one that's worth it's Oakland,
42:47
Speaker 1: California Uptown nine four sixty one two compared to rock
42:52
Speaker 1: Ridge nine four six one eight. That's a six six
42:56
Speaker 1: ninety eight credit score versus seven sixty five credit score.
42:58
Speaker 1: You said, Okay, they're pretty close. And this is only
43:00
Speaker 1: four miles apart. Right, this is pretty close. So let's
43:03
Speaker 1: see if the data holds up. Seventy seven thousand dollars
43:06
Speaker 1: income versus two hundred and five thousand household income. That's
43:11
Speaker 1: everybody in the house, by the way, six point four
43:14
Speaker 1: unemployment rate versus four point six not night and day right,
43:18
Speaker 1: but different. Home ownership rate Wow, ten point two percent
43:21
Speaker 1: versus sixty six percent. Hello, two miles apart. Median home
43:26
Speaker 1: value eight hundred and fourteen thousand, not bad based compared
43:30
Speaker 1: to one point eight million violent crimes per thousand. Look
43:34
Speaker 1: at this twenty six point five percent versus four point
43:38
Speaker 1: zero percent night and day two miles apart. High school
43:43
Speaker 1: graduation rates eighty seven point three percent, So it's measuring
43:46
Speaker 1: up as the credit score goes up. But where's the
43:49
Speaker 1: seven sixty five credit scored neighborhood? Whe's it? High school
43:52
Speaker 1: graduation rates ninety seven point nine percent. Can't make this
43:55
Speaker 1: up exactly the same like the literally ninety six ninety seven,
43:59
Speaker 1: ninety eight percent, every one of them essentially a college
44:02
Speaker 1: two print households. Again, probably black people think it'll be
44:04
Speaker 1: Wasagian people, it's everybody, it's green people. Life expectancy Hello,
44:09
Speaker 1: eighty years versus eighty four point two years. So there
44:13
Speaker 1: you go. It's just even though the gap on expectancy
44:16
Speaker 1: gapped up, mostly some of the other stuff did not
44:20
Speaker 1: gap because there's still a mindset shift change, right. See
44:26
Speaker 1: like and by the way, these communities. Operation to Hope's
44:28
Speaker 1: raising credit score is thirty four to fifty eight points,
44:31
Speaker 1: lowering debt twenty five hundred to thirty eight hundred dollars,
44:34
Speaker 1: increasing savings fifteen hundred dollars on average through our whole
44:37
Speaker 1: financial coaches. So we're moving the needle in all these
44:40
Speaker 1: neighborhoods that you can go see our whole financial coach
44:42
Speaker 1: in the neighborhood where you live. You know, Washington, d C.
44:46
Speaker 1: Foggy Bottom, two zero zero zero six. It's actually not
44:49
Speaker 1: a good example. We should have been Anacostia Barnaby Woods
44:53
Speaker 1: two zero zero one five seven to fifty five credit
44:57
Speaker 1: score and again year life expectancy versus eighty five years
45:02
Speaker 1: right uh, And you know violent vioting crimes per thousand
45:08
Speaker 1: and five point zero versus point zero point zero point three.
45:13
Speaker 1: Home ownership rate two fifty five thousand versus one point
45:16
Speaker 1: two million. Right, home ownship rate eight point one percent
45:19
Speaker 1: versus seventy seven percent. Unemployment rate twelve percent versus two
45:22
Speaker 1: point six percent. And I'm sure it's even more dramatic.
45:25
Speaker 1: And Anacostia we have Philadelphia again. Our here's this is
45:31
Speaker 1: one decent one because I want to show you the
45:33
Speaker 1: life expectancy six twenty six credit score and Brewery Town
45:38
Speaker 1: one nine one two one versus Old City one nine
45:41
Speaker 1: to one oh six right six twenty six credit score
45:43
Speaker 1: versus seven forty three credit score. Median household income in
45:47
Speaker 1: Brewery Town thirty six thousand, Old Old City one hundred
45:51
Speaker 1: and twenty nine thousand, unemployment rate fourteen point six percent
45:54
Speaker 1: versus three point one percent. Say when I talk about
45:57
Speaker 1: when I talk with confidence about this stuff, now you
45:59
Speaker 1: know why because this stuff just jumps off the page
46:01
Speaker 1: to you like it. It's completely obvious. That's why I
46:04
Speaker 1: love talking about this stuff because it's like a gold
46:08
Speaker 1: This is like a this like a hidden a hidden
46:10
Speaker 1: a hidden golden goose or something like. We can solve
46:13
Speaker 1: our problems economically, and it will solve most of our
46:15
Speaker 1: social problems, because most of our problems are at at
46:18
Speaker 1: bottom economic. If you don't have capital, as in equity,
46:22
Speaker 1: because through an inherent wealth, then access capital through credit,
46:26
Speaker 1: good credit, and use it for smart stuff like buying
46:29
Speaker 1: a home, starting a business, buying some stock. If you're
46:31
Speaker 1: gonna I'm not saying use credit to buy stock, but
46:34
Speaker 1: I've done it before, but not risky credit risky stock anyway, Uh,
46:41
Speaker 1: I think you're starting to get why I'm so excited
46:43
Speaker 1: about the Silver Rights movement. S I l v e R.
46:47
Speaker 1: From civil rights to SILVI rights, from the streets to
46:49
Speaker 1: the suites, and solving problems from the shoulders up. Because
46:52
Speaker 1: this data is unimpeachable and it's completely race, political, emotional neutral.
46:57
Speaker 1: Just if you do this, you'll win right again. Back
47:00
Speaker 1: to Philadelphia. Home ownership rate thirty three percent in Brewerytown
47:05
Speaker 1: Old City forty five point five percent, meeting household income
47:09
Speaker 1: essentially double two fifty thousand to five hundred and twenty
47:11
Speaker 1: eight thousand between Brewerytown and the Old City. Filing crimes
47:15
Speaker 1: per thousand, and make this up nineteen point zero versus
47:18
Speaker 1: three point nine. I didn't know this before I'm doing this.
47:21
Speaker 1: You're hearing the data as I'm going through it. Because
47:23
Speaker 1: I'm so confident in the data. I just told my team,
47:26
Speaker 1: give me ten examples and don't brief me. In advance.
47:29
Speaker 1: High school graduation rates eighty seven point three percent to
47:32
Speaker 1: ninety five point six percent, life expectancy sixty nine point
47:36
Speaker 1: four percent versus eighty two point nine percent twenty the
47:39
Speaker 1: six twenty six credit score neighborhood and then seven and
47:41
Speaker 1: fifty basically credit score neighborhood. Are you starting to get it? Like,
47:44
Speaker 1: are you starting to understand? Like is your head starting
47:47
Speaker 1: to nod about wow? Like this is deep right, and
47:52
Speaker 1: I can do New Orleans. But I think you sort
47:54
Speaker 1: of get the memo here. If you're not convinced with
47:59
Speaker 1: the data with this, I mean, you're just not convincible.
48:03
Speaker 1: So here's what I want you to think about now.
48:10
Speaker 1: I want you to think about the success stories that
48:14
Speaker 1: we have an operation to Hope went from being denied
48:17
Speaker 1: a car loan to buying their first home. That's wealth
48:20
Speaker 1: creation in real time. And we have countless sucess stories.
48:27
Speaker 1: I'm gonna bring some of them on on one of
48:29
Speaker 1: my coming episodes, so you literally hear and see folks,
48:33
Speaker 1: folks who look like you and have stories like you,
48:35
Speaker 1: so you don't write it off as well. John Bryant,
48:38
Speaker 1: that's different for you. You know your life was different somehow,
48:41
Speaker 1: even though my life was just like anybody struggling listening
48:44
Speaker 1: to this. I want you to hear from our clients.
48:45
Speaker 1: So we're going to bring those on incoming episodes and
48:48
Speaker 1: unimpact their stories. So here's some practical things you can
48:52
Speaker 1: do the road to seven hundred because that's the new cool.
48:54
Speaker 1: Seven hundred credit score is a new cool. I go
48:57
Speaker 1: through airports and TSA agents by the way, scream out
48:59
Speaker 1: there credit score to me, isn't they cool? And I'm
49:02
Speaker 1: going through security some practical roads right check your credit
49:06
Speaker 1: score at least weekly. Know your number. I know mine,
49:10
Speaker 1: I've got it on my phone and Operation Hope can
49:12
Speaker 1: pull it for you. If you listening to this, you
49:14
Speaker 1: go to Hope, go download the Hope and head hand app,
49:17
Speaker 1: go to the Hope and Opertional website, or call our
49:21
Speaker 1: one eight hundred number for Operation Hope. I think it's
49:23
Speaker 1: one eight eight eight three and eight Hope. I think
49:25
Speaker 1: that's the number one eight eight eight three eight eight Hope.
49:28
Speaker 1: But check it on the operational website. Call sign up
49:31
Speaker 1: for coaching and counseling. They'll give you a free scholarship
49:34
Speaker 1: to start that's worth between five hundred and one thousand dollars.
49:37
Speaker 1: They'll pull your credit, they'll do an initial assessment with
49:40
Speaker 1: you and if you're serious you if you meet certain criteria,
49:44
Speaker 1: then you might qualify for a coaching scholarship for it's
49:48
Speaker 1: worth as much as five thousand dollars after that, But
49:51
Speaker 1: that's up to the coaches and whether you meet the
49:53
Speaker 1: criteria and this will change this stuff will change your life.
49:58
Speaker 1: So we are basically for the private banker around you.
50:00
Speaker 1: That's what we do at Operation. We're the private banker
50:02
Speaker 1: for the underserved. We're economic plumbing for the whole dang
50:05
Speaker 1: on country. From that, we're boosting the economic GDP from
50:09
Speaker 1: the middle of economy. Damn well, the federal reserve of
50:12
Speaker 1: the hood. We're economic plumbing. I'm the economic plumber for
50:16
Speaker 1: the underserved neighborhoods. By the way, twenty five percent of
50:19
Speaker 1: our coaches in our communities and our offices are in
50:23
Speaker 1: rural neighborhoods, which is a lot of white poor poverty.
50:27
Speaker 1: We're we're on Native American Indian reservations, thank you Wells
50:31
Speaker 1: Fargo for that. And Bank of America we are in
50:34
Speaker 1: again South. We're in rural areas, thank you, First Horizon Banking,
50:37
Speaker 1: the Regions Bank, and so Nova's Bank. We're in. We're
50:39
Speaker 1: in you know major of course, most of ours are
50:42
Speaker 1: in major msas that you're probably in the areas we
50:44
Speaker 1: are in Latino communities with twenty percent of our coaches
50:48
Speaker 1: speak Latino to their clients. We're for everybody, right, this
50:53
Speaker 1: is everybody's problem. In fact, shoot this we're getting a
50:56
Speaker 1: lot of middle class folks calling us because they got
50:58
Speaker 1: too much month at the end of their money. Also, right,
51:05
Speaker 1: half of those making one hundred thousand dollar a year
51:07
Speaker 1: a living from paycheck to patrick. By the way, okay,
51:10
Speaker 1: so check your credit score on a regular basis. Pay
51:13
Speaker 1: your bills on time. Payment history is you know, it
51:17
Speaker 1: really matters, and it's thirty five percent of your score.
51:21
Speaker 1: Keep balance is low relative to your total to your limits.
51:25
Speaker 1: So if you have one thousand dollars credit card, you
51:27
Speaker 1: don't want to spend more than three hundred dollars on
51:30
Speaker 1: as it relates that on charges. If you have one
51:32
Speaker 1: hundred thousand dollars credit card, you don't want to spend more
51:35
Speaker 1: than thirty thousand. You have a ten thousand dollar credit card,
51:37
Speaker 1: you want to spend more than three thousand, right now,
51:39
Speaker 1: get it to five thousand, that's still fine, probably, but
51:42
Speaker 1: you will see some degradation in your credit score. You
51:45
Speaker 1: get it to eighty percent of your limit, you're gonna
51:47
Speaker 1: start saying compression and your credit score for sure, meaning
51:50
Speaker 1: it's going to lower so credit balance is low with
51:56
Speaker 1: regard to credit utilization. And by the way, if you
51:59
Speaker 1: if you need to get two three credit cards, that
52:00
Speaker 1: spread it out. I'm not telling you to do it,
52:02
Speaker 1: but I did it right, uh and just but you
52:05
Speaker 1: got to manage it well, right, And at some whenever
52:09
Speaker 1: I could, I consolidated those credit cards and got one
52:11
Speaker 1: credit card. Let me see here, don't I use credit
52:16
Speaker 1: credit unions also as well as banks to access credit
52:21
Speaker 1: and credit card companies. I've got a MasterCard, I've got
52:24
Speaker 1: a visa, I've got America Express, I've got you know,
52:28
Speaker 1: So I'm an equal opportunity utilizer. Right, don't fear credit,
52:34
Speaker 1: build responsibly ask for help again. Hoping Side coaches are
52:40
Speaker 1: no cost to you because we scholarshiped you in through
52:43
Speaker 1: Hope Scholarship. So you use this benefit that we've raised
52:47
Speaker 1: tens of millions of dollars a year for just for you.
52:50
Speaker 1: This isn't about the one percent, It's about the one
52:55
Speaker 1: If we get to if we get to seven hundred
52:58
Speaker 1: credit scores, all of them, America rises, it solves all
53:03
Speaker 1: kinds of problems, right, including political problems. So credit is
53:07
Speaker 1: just a number. It's a passport to opportunity. I'm going
53:10
Speaker 1: to you know once again, tell you to download the
53:12
Speaker 1: Hope in Hand app on your Android or Apple phone
53:15
Speaker 1: and go get you or go to our website and
53:18
Speaker 1: or call our number and get yourself a Hope financial coach.
53:20
Speaker 1: Today where we have fifteen hundred offices physical and virtual
53:23
Speaker 1: in forty two states. We're in half of all truest branches.
53:28
Speaker 1: As an example, Wells Fargo has ordered one hundred locations.
53:31
Speaker 1: I think that's right. Ba A has matched them, whatever
53:33
Speaker 1: the number is, BAA has matched them. US Bank. I mean,
53:37
Speaker 1: you name the bank Flax our bank just signed up,
53:40
Speaker 1: Soova's bank. You name the bank as an eighty percent
53:43
Speaker 1: chance that we have some BMO Harris, We've got some
53:45
Speaker 1: relationship P and C Bank, we got d black owned
53:48
Speaker 1: banks also, we have We've cost We've raised money. So
53:52
Speaker 1: what doesn't cost a black owned institution to have a
53:55
Speaker 1: Hope inside inside of their institution, which I'm very proud of.
54:01
Speaker 1: So I want you to go find out your credit
54:04
Speaker 1: score today and if it's not seven hundred, I want
54:07
Speaker 1: you to make a plan to get it there. Because
54:09
Speaker 1: if you when you rise, your community rises with you.
54:12
Speaker 1: And the opposite is also true. And tell your friends
54:17
Speaker 1: to subscribe to this podcast and check out the next episode.
54:20
Speaker 1: Our episodes which will include, as I mentioned, testimonials of
54:24
Speaker 1: civil rights to seal rights. Okay, so I was going
54:30
Speaker 1: to let you go, and I'm going to let you go,
54:36
Speaker 1: but I want to tell you about a couple of testimonials.
54:40
Speaker 1: I'll do this real quick. So this is my financial coach,
54:44
Speaker 1: Christine la Voulo. She's a whole financial wellness coach in
54:49
Speaker 1: Hope inside Delta Airlines in Salt Lake City. We coach
54:52
Speaker 1: all one hundred thousand Delta Airline employees. By the way,
54:55
Speaker 1: love my partnership with Delta, which is, by the way,
54:58
Speaker 1: the first airline to get to one hundred years, the
55:00
Speaker 1: biggest most profitable airline in the world. So here's what
55:03
Speaker 1: they have to say about her about their client. Their
55:07
Speaker 1: client already had a great credit score of seven oh three. However,
55:10
Speaker 1: he wanted to set himself up to be a best
55:12
Speaker 1: position possible to reach his goal of home ownership. As
55:15
Speaker 1: we worked together created budgets and spending plans, he saved
55:19
Speaker 1: fifty three hundred dollars and paid down three hundred and
55:23
Speaker 1: forty dollars in revolving debt. This progress boosted his credit
55:26
Speaker 1: score to seven eighty six, which positioned him well to
55:30
Speaker 1: apply for a loan, which we helped him with. By
55:33
Speaker 1: the way, although he was well in his way, we
55:35
Speaker 1: stayed in touch throughout the purchasing process so I could
55:38
Speaker 1: ease his concerns and give him a greater understanding of
55:41
Speaker 1: what was going on behind the scenes. Now that he
55:44
Speaker 1: has reached his goal of on ownership, he has asked
55:46
Speaker 1: to continue to work together so I can help I
55:48
Speaker 1: meaning Christine, the coach for Operation to Hope. This is
55:51
Speaker 1: from our website of Operation Hope and our testimonials, so
55:55
Speaker 1: I can help him manage the additional expenses from becoming
55:59
Speaker 1: a homeowner and make sure he stays on track with
56:01
Speaker 1: his budget. Recently gave us this feedback. It was a
56:04
Speaker 1: great experience working with Operation Hope and Christine becoming a homeowner.
56:08
Speaker 1: She helped me bring my credit score up to substantially
56:11
Speaker 1: and walk me through the process. She answered my questions
56:14
Speaker 1: as they came up and put me in my mind
56:17
Speaker 1: at ease. When I started getting stressed, the heck out,
56:20
Speaker 1: the heck out, I put that part in. I'm so
56:23
Speaker 1: glad I listened to her advice to keep going and
56:25
Speaker 1: didn't give up on the process. I love my new home.
56:30
Speaker 1: So this Delta employees is a homeowner because of Operation
56:36
Speaker 1: Hope and their sponsor, Delta Airlines, which was their employer
56:42
Speaker 1: in this example. Some of these stories are just really long,
56:45
Speaker 1: so I don't want to take up valuable time describing
56:50
Speaker 1: them here, but just go to the operation website and
56:53
Speaker 1: check out these testimonials. If these folks look like you,
56:56
Speaker 1: sound like you, have stories like you, and it makes
57:00
Speaker 1: it hard really to say that it can't be you
57:03
Speaker 1: and that somehow you can be locked out of the
57:06
Speaker 1: system because their stories are not so different from yours.
57:10
Speaker 1: So whether it was somebody with this person that was
57:14
Speaker 1: seven her credit score you want to go to seven
57:16
Speaker 1: eighty six, or somebody with five hundred want to go
57:17
Speaker 1: to six twenty five, same same, same journey. Here's somebody
57:26
Speaker 1: who I love this story because it's somebody that metthew
57:34
Speaker 1: Bishop td Jakes. She heard this is Jamie ray Wright
57:37
Speaker 1: heard me at Bishop td Jakes International Leadership Conference. She
57:41
Speaker 1: had no idea that moment would become the catalyst of
57:44
Speaker 1: transforming her vision into a multi million dollar reality that
57:47
Speaker 1: would change countless lives she's a domestic violent survivor. Domestic
57:51
Speaker 1: violent survivor. Again, I'm not going to get read the
57:55
Speaker 1: details of her story, but she had a coach, which
57:59
Speaker 1: was Pamela Sandford, a whole financial coach, and she became
58:03
Speaker 1: a strategic really advisor in to move her from sort
58:07
Speaker 1: of small thinking the big thinking. And she helped her
58:12
Speaker 1: get some grant funding and changed her whole mindset. And
58:20
Speaker 1: get this, she got a four point one million dollar
58:23
Speaker 1: grant from the state of Oklahoma to build thirteen homes
58:25
Speaker 1: for domestic violence survivors. Rainbows after Storms got an additional
58:30
Speaker 1: tw hudred and fifty thousan dollar grant to provide financial literacy.
58:32
Speaker 1: I love this home ownership coaching and other key supportive
58:36
Speaker 1: services for survivors and their children. Rainbows after Storms and
58:42
Speaker 1: became a sustainable model that addresses I don't just housing,
58:45
Speaker 1: but the holistic needs of families rebuilding their lives. And
58:49
Speaker 1: couldn't have done all that, she says without her coach,
58:52
Speaker 1: Pamela at Operation Hope, and now she's helping others help themselves.
58:56
Speaker 1: So look, you can do this right, Let's get busy
59:00
Speaker 1: and let's get cracking and let me know the results
59:04
Speaker 1: of your dreaming with your eyes wide open, John O'Brien,
59:08
Speaker 1: This is Money and Wealth and the Black Effect Network
59:10
Speaker 1: and iHeartRadio and this is the Silver Riots Movement. Money
59:29
Speaker 1: and Wealth with John O'Brien is a production of the
59:31
Speaker 1: Black Effect Podcast Network. For more podcasts from the Black
59:35
Speaker 1: Effect Podcast Network, visit the iHeartRadio app, Apple Podcasts, or
59:39
Speaker 1: wherever you listen to your favorite shows.