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How to Read Your Credit Report and Why It Matters for Your Financial Health · Stacked Intent: Your Guide to Authentic, Intentional Living

• 0:00
  SPEAKER_00: Hello, my name is Becca Stackhouse Morten, and I am ready for you to tune in each episode to hear ways to become you.
• 0:09
  SPEAKER_00: Looking at ways you can be your authentic and intentional self, you'll finish each episode motivated to live life more authentically.
• 0:18
  SPEAKER_00: I learned how to be truly me through relationships, chronic disease, finances, and taking each journey along the way.
• 0:26
  SPEAKER_00: Talk about the real aspects of life?
• 0:29
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• 0:30
  SPEAKER_00: Relationships, finance, nutrition, hardships, exercise are all topics that we will discuss.
• 0:37
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• 0:43
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• 0:47
  SPEAKER_00: This is the Stacked Intent podcast.
• 0:54
  SPEAKER_00: So, welcome to Stacked Intent where we discuss and drop tips on how you're gonna intentionally stack your life.
• 1:01
  SPEAKER_00: I am Becca, the owner of Stacked Intent.
• 1:04
  SPEAKER_00: And today we're gonna be talking about Credit with our guest Katie Collins.
• 1:11
  SPEAKER_00: She's a family and consumer science extension agent for White County in Arkansas.
• 1:17
  SPEAKER_00: And we're gonna get started.
• 1:19
  SPEAKER_00: So, Katie, tell us a little bit about your background and why you're able to talk about credit.
• 1:28
  SPEAKER_01: Okay, well, um, I majored in family consumer science um when I went to college and I got a master's in education so that I could teach more people.
• 1:39
  SPEAKER_01: And that's what I really enjoy doing is teaching people.
• 1:42
  SPEAKER_01: And um with FCS, we do a lot of food, health, food safety, but we also talk about families and money, money management in particular.
• 1:57
  SPEAKER_01: And so those all kind of run together, uh, if you think about it, because if you want to live well, then you have to spend smart.
• 2:08
  SPEAKER_01: And so um one of the things that I've really enjoyed doing is talking about credit to people that are in a um rehabilitation facility.
• 2:19
  SPEAKER_01: And they this is one of their favorite lessons because I always get lots of questions about this.
• 2:28
  SPEAKER_00: Okay, so our objectives of kind of our conversation with credit today, we're gonna talk about credit scores versus credit report, why bother with your credit report and why build good credit?
• 2:44
  SPEAKER_00: All right.
• 2:45
  SPEAKER_00: Starting with the um credit scores and credit report.
• 2:52
  SPEAKER_00: So why are those things important for us?
• 2:55
  SPEAKER_01: Well, and a lot of people think that um your credit report and your credit score are the same thing and they they're very similar and they kind of work together, but they're not the same thing.
• 3:10
  SPEAKER_01: And so when I suggest that people get a credit report, that is where they can see all the things that is on their credit report.
• 3:19
  SPEAKER_01: So their identification information, what jobs they've had, what addresses, um, but also what kind of loans they've had, car loans, home loans, personal loans, you know, just getting new flooring, you know, whatever kind of credit that you have used has got those listed.
• 3:39
  SPEAKER_01: Credit cards and how um often that you have paid those on time.
• 3:44
  SPEAKER_01: And then other things that are of public record, if you had any bankruptcies, that kind of thing.
• 3:50
  SPEAKER_01: And so that's important to know what's on your credit report.
• 3:54
  SPEAKER_01: Now, a lot of people tend to focus on their credit score.
• 3:58
  SPEAKER_01: Oh, I'm so worried about my credit score.
• 4:01
  SPEAKER_01: And uh your credit score is important, but it's really only important when you're ready to use it.
• 4:09
  SPEAKER_01: So when you're applying for some credits like a home or a car, um, maybe getting into a new apartment, something like that is when you really need that good credit score or the best that you can do.
• 4:23
  SPEAKER_01: Um, but a lot of people worry about it day to day, month to month, and it's kind of slow to change that credit score.
• 4:34
  SPEAKER_01: So that's kind of the difference between the two.
• 4:37
  SPEAKER_00: Okay.
• 4:38
  SPEAKER_00: So with a credit report, you said paying cards, credit cards on time comes up on a credit report.
• 4:45
  SPEAKER_00: Why does that matter?
• 4:47
  SPEAKER_01: Well, let me tell you, one of the things that really affects your credit score, the top thing that can affect your credit score is how often you pay on time every time.
• 5:05
  SPEAKER_01: And so when you pay those credit cards and all those other bills on time, um, that looks good and that helps your credit, your credit score, and it looks good on your credit report.
• 5:17
  SPEAKER_01: Um, one time, and it's it's been a little while since I've looked at mine, but one time um it had all of the in my credit card, and then it had boxes that were red or green.
• 5:31
  SPEAKER_01: And so if you think about it, the green means that I paid those on time.
• 5:36
  SPEAKER_01: And so it was nice to see all those little green boxes.
• 5:39
  SPEAKER_01: But if you see too many red boxes, that means you did not pay on time.
• 5:43
  SPEAKER_01: And those credit card companies and other people that give you money really want you to pay on time, and so that's it's a very important piece of that credit puzzle is to pay on time.
• 5:57
  SPEAKER_00: What would you say one of the other topics?
• 6:00
  SPEAKER_00: So you'd say paying credit cards on time or paying bills on time is one of the topics.
• 6:06
  SPEAKER_00: What would the second one be?
• 6:08
  SPEAKER_01: Um, it's it has to do with uh different, there's two different credit reporting agencies, two different credit score, or no, sorry, there's three credit reporting agencies, two different credit scores.
• 6:22
  SPEAKER_01: And so each one looks at something slightly different.
• 6:26
  SPEAKER_01: The main one that most of them or all of them look at is the the um paying on time.
• 6:32
  SPEAKER_01: Other things that they look at is how much credit you have and how you have used that credit.
• 6:39
  SPEAKER_01: Um, so having kind of a variety of things instead of just one credit card, maybe if you have a mortgage or a car loan, some credit cards, just kind of a variety.
• 6:50
  SPEAKER_01: Um, another thing they can look at is history.
• 6:54
  SPEAKER_01: How long have you had history, you know, some kind of credit?
• 6:57
  SPEAKER_01: And so a lot of people will start off like with um high school or college age people, and their parents will get them a credit card and they say, okay, you have to pay it on time because that will help you build credit.
• 7:11
  SPEAKER_01: And that's true, it does help you build credit.
• 7:14
  SPEAKER_01: Um, because they look at did you pay on time and how long have you had some kind of credit?
• 7:24
  SPEAKER_00: Yeah, those are both important things.
• 7:27
  SPEAKER_00: So why should we even bother with a credit report?
• 7:32
  SPEAKER_01: Well, the top reason to look at your credit report is to make sure that it is accurate.
• 7:39
  SPEAKER_01: Um, maybe you don't know that somebody has stolen your identity until you look at your credit report and you're like, what is all of this?
• 7:49
  SPEAKER_01: And so that that's kind of a flag.
• 7:52
  SPEAKER_01: So you can kind of say, Oh, well, I have to do something.
• 7:56
  SPEAKER_01: Now, most people don't look at their credit report very often, but you can get a free one every year from each of the three credit reporting agencies.
• 8:07
  SPEAKER_01: And so I recommend that's one of the first things people do is get at least one credit report just to make sure that it's accurate.
• 8:16
  SPEAKER_01: Now, I will tell you that sometimes your loans, um, credit cards may have different names than what you thought or what you called them.
• 8:27
  SPEAKER_01: Um, I one time I got some new flooring in my house, and they had a special running that you know, free interest for a year or something.
• 8:39
  SPEAKER_01: And so I said, Oh, that sounds great.
• 8:41
  SPEAKER_01: I won't have to pay for it all at one time.
• 8:44
  SPEAKER_01: So I did that, and they gave me like a little card.
• 8:48
  SPEAKER_01: I'm like, what do I need a card for?
• 8:50
  SPEAKER_01: But um, so I paid it off before the year was out and kind of forgot about it.
• 8:57
  SPEAKER_01: And then when I looked at my credit report, there's this weird thing that shows up.
• 9:03
  SPEAKER_01: What is this?
• 9:04
  SPEAKER_01: And it finally occurred to me it was that it was kind of a loan or a card from the flooring company.
• 9:12
  SPEAKER_01: And so sometimes it takes a little while, especially if it's older, to figure out what exactly that is.
• 9:19
  SPEAKER_01: Um, so but you need to look at it to make sure that it's accurate and to make sure it's all stuff that you actually did.
• 9:28
  SPEAKER_01: Um, now, if it's stuff that's not, you know, that great, like a bankruptcy or a lien or those kinds of things, time will take care of those.
• 9:40
  SPEAKER_01: But you need to be aware of them because you know, sometimes people forget.
• 9:43
  SPEAKER_01: They have, oh, I have this loan I totally forgot about, and they haven't contacted me.
• 9:49
  SPEAKER_01: Wonder why not?
• 9:50
  SPEAKER_01: And so it just kind of helps you to stay on top of what your credit looks like.
• 9:58
  SPEAKER_00: That makes sense.
• 9:59
  SPEAKER_00: That makes sense, yeah.
• 10:00
  SPEAKER_00: I think I pulled my credit report a couple years ago and I found it funny because I am on some of the like Cole's accounts and Lowe's accounts that are technically my parents' name, but they come up under mine since I'm on there as an authorized provider.
• 10:20
  SPEAKER_00: So that would be something that people would need to be aware about.
• 10:23
  SPEAKER_00: If you ever go as an authorized provider on something that you're not necessarily paying on, it still can hit your credit report.
• 10:31
  SPEAKER_01: Yes.
• 10:32
  SPEAKER_01: It can.
• 10:32
  SPEAKER_01: And I've had I heard of some people um here locally that um they kind of co-signed like a credit card with their kids who were in college.
• 10:44
  SPEAKER_01: And if the kid was late making that payment, it showed up on the mom's credit report.
• 10:51
  SPEAKER_01: Um, so that's an important thing to keep in mind.
• 10:54
  SPEAKER_01: Do you want to help your kids, but you don't want to ruin your credits at you know in the process.
• 11:02
  SPEAKER_01: So anytime you co-sign or do that with other people, be very cautious.
• 11:12
  SPEAKER_00: Because it can affect your credit score and it it can affect why you are building it and why we need it.
• 11:23
  SPEAKER_00: So credit reports are important, and they so should you pull them all from the same or all pull one from each side at the same time, or should you spread that out over the year?
• 11:35
  SPEAKER_01: Well, there's there's two ways of looking at that.
• 11:38
  SPEAKER_01: If you you can pull them all at once, and that way you know everything about your credit for that year, because each one is slightly different.
• 11:47
  SPEAKER_01: Um, so that's one way to do it.
• 11:49
  SPEAKER_01: Um, if you're concerned or if you've had some identity theft issues, you might want to do one and then do the next one later in the year and kind of spread them out so that you have a you can kind of see what's going on over the course of the year.
• 12:06
  SPEAKER_01: So it really kind of depends on your situation and what you feel comfortable with.
• 12:10
  SPEAKER_01: If you can remember to do it in January and um you know April and September, great.
• 12:18
  SPEAKER_01: Um, but if you might forget to go back and do the others, it might be best to go ahead and get them all at once.
• 12:26
  SPEAKER_00: So that's awesome.
• 12:29
  SPEAKER_00: Okay.
• 12:30
  SPEAKER_00: And then what about building good credit?
• 12:34
  SPEAKER_00: Why is building good credit something that's even important?
• 12:38
  SPEAKER_01: Well, and I I get a lot of questions about that.
• 12:41
  SPEAKER_01: And um, there are some things that people do that might not be the best.
• 12:47
  SPEAKER_01: Now, there are some apps and companies that you know help people and they give them their credit scores and they kind of check in so they can see how it's going.
• 13:02
  SPEAKER_01: Now, I always tell people to be cautious about those, especially if they charge a fee because you probably don't need that for long-term purposes.
• 13:14
  SPEAKER_01: And most of the time, those kinds of apps or organizations, their information is going to be several months old.
• 13:24
  SPEAKER_01: It's not going to be up to date, probably, because these things take time to go through this process.
• 13:32
  SPEAKER_01: So to build good credit, uh, the number one thing you can do to build good credit is pay your bills on time every time.
• 13:42
  SPEAKER_01: And that sounds so, you know, is that really?
• 13:46
  SPEAKER_01: But people who who loan money or you give you money want to know that you're going to be responsible with that money.
• 13:54
  SPEAKER_01: And so paying on time every time, being consistent means that you're you're serious about it and um you know that you can do that.
• 14:07
  SPEAKER_01: Um, now most people probably don't pay by mail anymore, but if you do, you really need to get that sent in at least a week ahead of time because the the mail system is kind of slow.
• 14:20
  SPEAKER_01: But if you pay online, uh you still need to get it in before the due date because some of those um they'll tell you it takes 24 to 48 hours to post.
• 14:31
  SPEAKER_01: And so if you if you pay it on the due date, it may not post that day.
• 14:38
  SPEAKER_01: So just keep that in mind, also.
• 14:41
  SPEAKER_01: Um another thing is don't get too close to your credit limit.
• 14:48
  SPEAKER_01: So some people don't even know what their credit limit is, and so that can be um, you know, important to know because the credit card companies may give you a nice, really nice big limit.
• 15:05
  SPEAKER_01: Um, they'll they'll just keep going up.
• 15:08
  SPEAKER_01: The longer you have it, the the bigger it's gonna get.
• 15:11
  SPEAKER_01: Does that mean that you should spend all that money?
• 15:16
  SPEAKER_01: No.
• 15:17
  SPEAKER_01: Um, you don't need to spend money that you don't have or that you can't pay back.
• 15:22
  SPEAKER_01: So um, how close are you to being maxed out on your credit cards?
• 15:27
  SPEAKER_01: And that's that's another thing that's not really good for your credit score.
• 15:31
  SPEAKER_01: So don't get too close to that credit limit.
• 15:35
  SPEAKER_01: In fact, some experts advise using no more than 30% of your total credit limit.
• 15:41
  SPEAKER_01: And some people say even less than that.
• 15:43
  SPEAKER_01: So you don't need to use the whole amount that they will allow you to use.
• 15:51
  SPEAKER_00: Yeah, um, that's definitely true.
• 15:54
  SPEAKER_00: Especially if you get some of the if you pay on time and you're paying correctly, they may increase you without you even sometimes realizing they increase that credit limit.
• 16:05
  SPEAKER_01: Yes.
• 16:05
  SPEAKER_01: And so that can be dangerous um for some people who aren't real good about um paying on time or paying it back in a reasonable amount of time.
• 16:20
  SPEAKER_01: So keep an eye on that credit limit.
• 16:22
  SPEAKER_01: Now, and it just because they give you a big credit limit does not mean that you have to actually use it.
• 16:29
  SPEAKER_01: So don't don't use it all, just only use what you can afford to pay back.
• 16:38
  SPEAKER_01: And along with that credit card stuff, don't apply for too much credit in a short amount of time.
• 16:45
  SPEAKER_01: And so if you start you know opening up lots of new credit cards and maxing them out, that's a red flag.
• 16:53
  SPEAKER_01: So now sometimes people open up a new account so that they can transfer the balance and pay it off without the interest and that kind of stuff.
• 17:03
  SPEAKER_01: But um, or they get a card to get a discount at the store.
• 17:10
  SPEAKER_01: That is probably how most stores get those credit cards into people's hands is oh, you get a 15% discount if you apply for a credit card.
• 17:20
  SPEAKER_01: So I just say no, no, thank you.
• 17:24
  SPEAKER_01: Um, I don't need another card.
• 17:26
  SPEAKER_01: Um, and they will try to convince you to go ahead and do it, but I I just say no because it's just simpler for me that way.
• 17:34
  SPEAKER_01: But you don't want to apply for too much credit in a short amount of time.
• 17:38
  SPEAKER_01: And um, I have a lot of people that don't they can't get a credit card, they don't really qualify yet.
• 17:46
  SPEAKER_01: So if you don't qualify for a regular credit card, you can try a secured card.
• 17:53
  SPEAKER_01: A lot of banks and credit unions will offer those.
• 17:57
  SPEAKER_01: And your credit line starts out small because they're kind of it's a test.
• 18:02
  SPEAKER_01: They're they're testing you to see if you can pay back this amount of money.
• 18:07
  SPEAKER_01: And you also put an amount equal to your credit limit in an account as a deposit.
• 18:12
  SPEAKER_01: So if you have a$300 credit limit, then you have to put in$300 in order to get the card.
• 18:20
  SPEAKER_01: Um, and as you show that you can pay on time, your credit limit can be raised.
• 18:26
  SPEAKER_01: Um, you may have your deposit refunded.
• 18:29
  SPEAKER_01: Now, another thing to keep in mind with a secure card, the fees and the interest rates may be kind of high because again, it's a test.
• 18:37
  SPEAKER_01: They're trying to see if you're a good risk or not.
• 18:40
  SPEAKER_01: Um, but that can help you to establish that credit, and that can build your credit if you if you have trouble getting any credit to build your credit because it's kind of hard to build your credit if you can't get any kind of credit at all.
• 18:54
  SPEAKER_01: So yeah, you know, a secured card.
• 18:58
  SPEAKER_00: If somebody has really bad credit, how do they even start going about trying to rebuild it?
• 19:07
  SPEAKER_01: Uh yeah, that that is a challenge.
• 19:09
  SPEAKER_01: Um, and I I've worked with some of these people, and paying on time is always going to be important.
• 19:20
  SPEAKER_01: So if you have bills paying on time, um like utilities, any any kind of bill that just paying it on time.
• 19:29
  SPEAKER_01: Um, if you have trouble paying them because you don't have the money to pay them, you can do things like talk to them and see about um you know levels billing, or if they have any programs.
• 19:46
  SPEAKER_01: There are some programs that will help, like with utilities.
• 19:50
  SPEAKER_01: Um and just doing something.
• 19:54
  SPEAKER_01: Something is better than nothing.
• 19:56
  SPEAKER_01: So if you're paying something that that shows them that you're trying, and you can always kind of let them know, you know, I'm really trying to do this.
• 20:04
  SPEAKER_01: Um, and maybe paying more frequently throughout the month can help you to um pay what you need, but you know, not all at the same time.
• 20:16
  SPEAKER_00: Right.
• 20:17
  SPEAKER_00: So when you were talking about paying in a credit card, so if you do have the money, so say you had$200 for your groceries for two weeks, and you had that in a credit or a debit account checking account, what could you use a credit card and then pay turn around and pay with your$200 out of your checking account?
• 20:41
  SPEAKER_01: Yes.
• 20:42
  SPEAKER_01: And and if you pay with a credit card, one way to build your credit is pay your balance off every month.
• 20:49
  SPEAKER_01: Now, some people say, oh, that's not gonna hurt your credit.
• 20:52
  SPEAKER_01: Well, um you know if you can use your credit card and then pay that on time, then that shows that you are building your credit.
• 21:04
  SPEAKER_01: If you just put on your credit card and don't pay it, then you're not building credit.
• 21:08
  SPEAKER_01: If you use a debit card, you're not doing anything to help your credit.
• 21:13
  SPEAKER_01: Now, I I would never say it's wrong to pay cash or pay your bills through with your um checking account, debit card.
• 21:24
  SPEAKER_01: But if you're trying to build credit and you have the discipline to use your credit card and then pay it off, then that's a good way to build credit.
• 21:36
  SPEAKER_00: Yeah, I think that's the biggest thing there is the discipline to not double use that money, not take it out of your checking and use it on a credit card.
• 21:45
  SPEAKER_01: Yes.
• 21:46
  SPEAKER_01: And so paying off your balance each month can also build better credit than if you carry a balance because it it helps keep keep you from getting too close to that credit limit.
• 21:58
  SPEAKER_01: And so It's good financial, it's good financially to go ahead and pay it off.
• 22:04
  SPEAKER_01: Now, a lot of people will say, Oh, but that's not going to build my credit.
• 22:08
  SPEAKER_01: Um, I wouldn't make decisions that would are good for your credit when they're not good financially for you.
• 22:16
  SPEAKER_01: So you have to kind of think that through.
• 22:20
  SPEAKER_00: I think that is a very much a good point there.
• 22:24
  SPEAKER_00: Okay.
• 22:24
  SPEAKER_00: Is there anything else that on credit and credit cards, credit scores that you would find is important?
• 22:33
  SPEAKER_01: Well, um, you know, just keeping it up and paying those bills on time.
• 22:38
  SPEAKER_01: I know I say that a lot, but that's really the best thing that you can do.
• 22:42
  SPEAKER_01: Um, and your credit score is based on your overall experience.
• 22:46
  SPEAKER_01: So even if you're you're still having trouble, if you show that you're paying your bills on time, then over time that that does help a lot because they look at that.
• 22:59
  SPEAKER_01: They look how long that you've been paying your bills on time.
• 23:04
  SPEAKER_01: Um, and when you look at that credit report, um, it's important to fix the errors.
• 23:10
  SPEAKER_01: If there are things that are on there that are not true or that are not correct, then you need to get those fixed.
• 23:17
  SPEAKER_01: The credit reporting agencies don't know that anything is wrong until you tell them.
• 23:22
  SPEAKER_01: So you have to tell them something's wrong, and then they have to investigate it within 30 days.
• 23:29
  SPEAKER_01: So that's the that's a nice thing about the credit reporting agencies, is they have to do something.
• 23:35
  SPEAKER_01: Um, it may go slower than you you may want, but they have to look into it.
• 23:41
  SPEAKER_01: And if there are negative things on your credit report, it just takes time.
• 23:46
  SPEAKER_01: Um, sometimes a late payment can stay on your credit report for seven years.
• 23:53
  SPEAKER_01: That's all the same as a chapter 13 bankruptcy.
• 23:58
  SPEAKER_01: So I it doesn't make a lot of sense to me, but um, a chapter seven bankruptcy can stay on your credit report for 10 years, foreclosures, lawsuits, and judgments seven years or longer.
• 24:13
  SPEAKER_01: So if you have negative information, just keep in mind it's gonna take time.
• 24:19
  SPEAKER_01: But in the meantime, you can always pay your bills on time.
• 24:25
  SPEAKER_01: Now, there are four things that don't really help you to build your credit, and that's using that debit card or paying cash, like we just talked about.
• 24:32
  SPEAKER_01: Now, that's not a bad thing to do financially, again.
• 24:37
  SPEAKER_01: So, but it's not gonna help you build credit.
• 24:40
  SPEAKER_01: So um, using a prepaid card, again, it's it's fine to do that, but it's not gonna help you build credit.
• 24:48
  SPEAKER_01: Um, taking out a payday loan is not gonna help your credit, and an auto loan from like a buy here, pay here car lot, unless they promise in writing to report your on-time payments.
• 25:03
  SPEAKER_01: Because some of those don't report to the credit reporting agencies, and if they don't, then it's it doesn't help you.
• 25:12
  SPEAKER_01: So those are some other things to keep in mind when you're building that credit, is you know, you need to do things that will build it, but you don't want to do things that just because it's building your credit.
• 25:27
  SPEAKER_00: So on the auto loans, so if somebody had the cash outright by a vehicle and they're trying to build their credit, is it a good idea for them to go buy that car in all cash?
• 25:39
  SPEAKER_00: Or would it be helpful for them to get a loan and pay it back for that money they have in cash?
• 25:46
  SPEAKER_01: Well, that's a really good question.
• 25:49
  SPEAKER_01: And I'm not sure that I have an accurate answer.
• 25:53
  SPEAKER_01: Um it's good financial sense to go ahead and if you've got the money and you still have savings and all that stuff, uh, an emergency fund to go ahead and pay the cash.
• 26:05
  SPEAKER_01: Um, I know some people that just will not get a car loan.
• 26:10
  SPEAKER_01: They pay cash for the cars.
• 26:11
  SPEAKER_01: Um, that can be a struggle to save that much money for most people.
• 26:17
  SPEAKER_01: If you have the money, but you're trying to build your credits, it probably would not be a bad idea to get the loan and pay for it out of what you've saved up for the car.
• 26:32
  SPEAKER_01: Now, just keep in mind you are going to pay extra in interest and fees to do that.
• 26:40
  SPEAKER_01: So you're you're kind of paying to build the credit, but if you can keep up the payments and not just say, oh, I have lots of money I can spend now, then you should I would just use the the cash to pay for it if you can't handle making the payments on time.
• 27:00
  SPEAKER_00: And I think that also goes back to that discipline.
• 27:03
  SPEAKER_00: Are you disciplined to not touch the money for that if you're gonna do it that way too?
• 27:09
  SPEAKER_01: Yes.
• 27:10
  SPEAKER_01: And a lot of people are not that disciplined.
• 27:14
  SPEAKER_01: Um, it's it can be a struggle to, you know, especially if you haven't had a lot of money to to not touch money that you you have.
• 27:25
  SPEAKER_01: Um, I when I first got out of college, that was that was a real struggle for me.
• 27:30
  SPEAKER_01: If I had the money, I'm like, ooh, I can spend it.
• 27:33
  SPEAKER_01: Um, no, I don't really need to spend it um just because I have it.
• 27:39
  SPEAKER_01: So it does take discipline.
• 27:41
  SPEAKER_01: Now, if I were doing that, I would probably put that cash that I had, you know, for the car in a separate account, not my checking account.
• 27:53
  SPEAKER_01: That's way too easy just to kind of use it up.
• 27:56
  SPEAKER_01: So put it in the separate account and pay for the loan out of that separate account, and you can probably just set it up to automatically pay each month and not even think about it.
• 28:08
  SPEAKER_01: And if you don't have to think about it, then because that's what my husband does, he pays, he gets online with our bank and has the bank automatically send out the bills before the due date, and that way it's always on time and he doesn't have to worry about it.
• 28:26
  SPEAKER_01: He just it's just automatic, and so that's an easy way to do it.
• 28:30
  SPEAKER_01: That's you're not having to think about it, and you're not tempted to, you know, oh, here's a little something I could get and put your debit card or a credit card because I've got the money, right?
• 28:43
  SPEAKER_01: Yes, you do, but that was for your car, so you gotta save it.
• 28:48
  SPEAKER_00: One way that we found successful for us in like my marriage is we have separate accounts for separate things.
• 28:56
  SPEAKER_00: So we have a bills account, it doesn't get touched for anything unless it is classified as a bill.
• 29:02
  SPEAKER_00: We have a grocery account so that our groceries were separate, because that was actually the first account we opened as a joint account.
• 29:10
  SPEAKER_00: And then we have a he has a tools account because he's a mechanic, and so schools are an important aspect of work, and so we have a separate account for that, and then we have a date account, so that's the money and the funds for going on dates.
• 29:27
  SPEAKER_00: So have it the having the separate categories helps you go, nope, that's not what that money's for.
• 29:34
  SPEAKER_01: And everybody sees it, yes, and so being able to discuss money is um a big part of working with money with other people, whether it's a a spouse or even you know, dealing with parents that are getting older, or if you've got you know high school, college-age kids, um, talking about money can be a challenge, but the more you can do it, the the more you practice that, the better.
• 30:08
  SPEAKER_01: Um, and each family is a little different about how they talk about money.
• 30:12
  SPEAKER_01: Um, my family never talked necessarily specifics about how much my parents made.
• 30:19
  SPEAKER_01: Um that that just was not relevant.
• 30:24
  SPEAKER_01: We talked about you know trying to be frugal with our money, not overspending.
• 30:29
  SPEAKER_01: Um, but then other families that you know we you married, they they how much did your parents make?
• 30:36
  SPEAKER_01: And I don't know, and they know exactly how much the parents are making and what they spend their money on, and it's common knowledge, and it wasn't common knowledge in my house.
• 30:50
  SPEAKER_00: My husband common knowledge of how much was made, but money was an open discussion of we spend money, we might save money for something you didn't immediately get something you wanted.
• 31:05
  SPEAKER_01: Yes, yeah, so so we were we did discuss things.
• 31:09
  SPEAKER_01: I can remember in college, um, I I was gonna have to have a like a dress for the formal, and we went shopping around Christmas and found some really good deals, and so we went ahead and got a dress.
• 31:22
  SPEAKER_01: And my dad was a little stressed about that because he said, Well, I wasn't planning on that expense right now.
• 31:31
  SPEAKER_01: So um that that really made an impact that you the timing of things, because you can be planning to do things, but the timing sometimes is where you kind of run into trouble, and that's when you know getting having a good credit score can help because sometimes there are emergencies come up.
• 31:53
  SPEAKER_01: Um, maybe the car dies before you were planning on replacing it, so you have to get it a little bit sooner, so you may have to get a loan, and if you have good credit, then it's going to be easier to get that loan.
• 32:08
  SPEAKER_01: So um your credit is important, um, but also communicating about how you use that credit is important.
• 32:18
  SPEAKER_00: Yeah.
• 32:19
  SPEAKER_00: So one more question on the credit.
• 32:22
  SPEAKER_00: Uh, I have heard that when you are looking at a car loan or a mortgage, especially, that you really shouldn't go out and open new lines of credit.
• 32:34
  SPEAKER_00: Why is that?
• 32:36
  SPEAKER_01: Well, because it makes it it, it looks like you're trying to spend a lot of money or you need access to more money.
• 32:46
  SPEAKER_01: Um, so now shopping around for a good interest rate should not hurt your credit because they kind of take that into consideration.
• 33:00
  SPEAKER_01: It's when you it's when you apply for lots of credit and then you you get all that credit all at the same time, it kind of makes you look like you're desperate and you're you're low on funds, and so you need you know more more money to spend or to pay things off.
• 33:19
  SPEAKER_01: So it just does not look good for the credit score when you do that.
• 33:26
  SPEAKER_01: So, yes, if you're gonna have to buy a car or get a mortgage, then you you kind of need to be cautious about what you do in the months preceding that, because you know that's hopefully you know that's coming up.
• 33:41
  SPEAKER_01: Um, we built a house and so we knew that was coming.
• 33:45
  SPEAKER_01: And um when you get your when you go to the credit, get your credit report, you will not get your credit score unless you pay for it.
• 33:55
  SPEAKER_01: But when you apply for credit, like if you go to a bank to get a mortgage or car loan, they will probably tell you your credit score because they're gonna look at it.
• 34:05
  SPEAKER_01: So you can always ask them, hey, hey, what's my credit score?
• 34:09
  SPEAKER_01: And if it's not what you were hoping it would be, you say, Oh, I was I thought it would be higher.
• 34:13
  SPEAKER_01: What what do you think I can do?
• 34:15
  SPEAKER_01: Because they they always have great ideas, also.
• 34:19
  SPEAKER_00: Awesome.
• 34:21
  SPEAKER_00: So the call to action for you guys for listening to this episode today is take a moment today, and if you've never gotten your credit report, go get it.
• 34:33
  SPEAKER_00: And I'll add the three places that you can go get it with their links in the show notes.
• 34:40
  SPEAKER_00: But go go pull your credit report and see if it's actually accurate.
• 34:46
  SPEAKER_00: So, Katie, what are some resources and where they can connect if they wanted to see more of what you put out there?
• 34:54
  SPEAKER_01: Well, um, I work for the University of Arkansas, and so all of our information is on our website, which is uh UAEX dot ua dot edu.
• 35:07
  SPEAKER_01: And I am in White County, so you can just search for counties or on our website if you look under um life skills and wellness, that's where the family and consumer science stuff on our website is.
• 35:22
  SPEAKER_01: I'm also on Facebook, UAE X White County, or Pinterest and Instagram, um, Katie Cullum UAE X F C S.
• 35:35
  SPEAKER_00: Awesome.
• 35:36
  SPEAKER_00: And then there's a publication that she also shared that's the credit that helps.
• 35:41
  SPEAKER_00: So I'll also link that for you guys to be able to find that.
• 35:46
  SPEAKER_01: So yes, and it has the the um website to get your free credit report.
• 35:51
  SPEAKER_01: Now, there are some sites that will try to charge you, and that's not the right one if they want to charge you for your credit report.
• 35:59
  SPEAKER_01: They can charge you for your credit score, but not your credit report.
• 36:03
  SPEAKER_00: Right.
• 36:04
  SPEAKER_00: Well, thank you very much, and I enjoyed today's episode.
• 36:08
  SPEAKER_00: Me too.
• 36:10
  SPEAKER_00: That brings us to the end of this episode of Stacked Intent.
• 36:14
  SPEAKER_00: If you loved this episode as much as I did, head on over and rate and subscribe so you never miss an episode.
• 36:22
  SPEAKER_00: New episodes are gonna be dropped on Thursdays.
• 36:25
  SPEAKER_00: Until then, this is Becca, and don't forget, enrich your life by being intentional.
• 36:33
  SPEAKER_00: This podcast was created, produced, and recorded and edited by Sack Tinted.