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Your Credit Is Under Attack - Paul Oster #6408 · Financial Survival Network

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  Speaker 1: You're listening to Carrie Letz's Financial Survival Network, where you
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  Speaker 2: Ever, and welcome. This is Financial Survival Network. I'm your host,
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  Speaker 2: Carrie Lootz and Paul Auster is with us now from
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  Speaker 2: better Qualified dot com, fycopro and president of better Qualified,
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  Speaker 2: a credit repair agency that's been around. How long you
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  Speaker 2: been around for now, Paul, twenty one years? Oh my god,
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  Speaker 2: most people didn't even know there was credit report twenty
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  Speaker 2: one years ago. Yep. Wow. That in itself says a lot.
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  Speaker 2: Means you're not just a headline or an advert. You're
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  Speaker 2: actually you actually get the work done. Yeah.
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  Speaker 3: And remember, most of our clients are actually referred to
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  Speaker 3: us from real estate professionals CPAs, financial planners, insurance people.
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  Speaker 3: So we've built a trusted network of advisors and sometimes
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  Speaker 3: we actually refer clients to those professionals because and most
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  Speaker 3: of it in this enterprise solutions platform, it's all driven
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  Speaker 3: by credit so of course with a mortgage, you know,
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  Speaker 3: your credit is one of the most important factors when
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  Speaker 3: you're going for a mortgage. But every single day your
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  Speaker 3: credit score is going to cost or save you money.
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  Speaker 3: That's just the arse reality, and with what's happening today
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  Speaker 3: with the economy, it's never been more important because when
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  Speaker 3: banks get nervous and they tighten the credit markets, the
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  Speaker 3: people who get you know, the biggest impact immediately are
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  Speaker 3: those on the lower end of the fight go scoring model.
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  Speaker 3: Those are the ones that it's going to cost them
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  Speaker 3: more that to do the same thing that they would
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  Speaker 3: have done ninety days, one hundred and eighty days six
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  Speaker 3: months ago. You could literally go from a couple hundred
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  Speaker 3: dollars a month to over five hundred dollars a month, wow,
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  Speaker 3: for the same thing. And you're talking about again, not
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  Speaker 3: just mortgages, credit cards, Buying a car. Don't forget. After
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  Speaker 3: you buy a house, end er a car, you have
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  Speaker 3: to have insurance, right, you have to ensure those assets.
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  Speaker 3: And when you go for insurance. Now, our insurance policy
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  Speaker 3: policies and premiums are directly tied to our credit scores,
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  Speaker 3: so they don't cost they don't call them a credit score.
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  Speaker 3: They call it an insurance score, but it's the same
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  Speaker 3: information that's being used to generate those scores.
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  Speaker 2: You know, Paul, that's some thing that many of you
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  Speaker 2: out there don't understand, is the direct tie in between
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  Speaker 2: your credit score or your credit standing, let's put it
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  Speaker 2: that way, and the price you pay for insurance. Yep, yep.
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  Speaker 3: So you know, I've said it, I don't know probably
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  Speaker 3: a thousand times on your show. Yeah. It's not one
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  Speaker 3: of those situations where what you don't know won't hurt you.
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  Speaker 3: It's the exact opposite. Not knowing what exactly is on
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  Speaker 3: your credit reports could be costing you a lot of
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  Speaker 3: single a lot of money every single day, So make
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  Speaker 3: sure you review your reports. One of the good things
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  Speaker 3: after the pandemic was that you can now check your
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  Speaker 3: credit reports once a week for free at atu owe
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  Speaker 3: credit report dot com. Yeah, it used to be once
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  Speaker 3: every twelve months right right after, you know, after the pandemic.
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  Speaker 3: During the pandemic, they stepped in and said people should
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  Speaker 3: have access to the reports more often and on a
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  Speaker 3: regular basis during the pandemic and they left that in place,
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  Speaker 3: So take advantage of it. At the caveat beings.
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  Speaker 2: You don't get your scores.
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  Speaker 3: But I'm always the first person to say, don't get
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  Speaker 3: so crazy about the scores anyway. Right now, there's currently
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  Speaker 3: seventeen different scoring models. It's rights, yeah, Fico, Fico has sixteen.
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  Speaker 3: Then you throw in the vantage score that's seventeen. So
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  Speaker 3: depending upon what scoring model your lender is going to
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  Speaker 3: use for underwriting, you could have wildly different scores. If
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  Speaker 3: you went to three banks today and applied for a
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  Speaker 3: mortgage at three different banks, you could have three different
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  Speaker 3: TransUnion or I should say you would have three different TransUnion,
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  Speaker 3: three different experience, and three different with fact scores.
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  Speaker 2: That's wild then, and you know, like and most of
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  Speaker 2: you out there don't even know that. Hey, so when
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  Speaker 2: you're pulling your credit, you're getting your free credit report,
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  Speaker 2: what should you be looking for?
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  Speaker 3: Yeah, so the big the big factors that could be
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  Speaker 3: dragging the scores down. Payment histories number one, right, So,
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  Speaker 3: all other things being equal, a thirty day lay payment.
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  Speaker 3: A thirty day lay payment happens and gets reported if
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  Speaker 3: you fail to make a payment on one of your accounts.
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  Speaker 3: That's reporting to the credit buros. If you don't make
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  Speaker 3: that payment and they report it to the credit buros.
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  Speaker 3: You could easily lose fifty points off your scores fidty points. Now,
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  Speaker 3: if you go sixty sixty days late, it's even worse.
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  Speaker 3: Ninety days late, it's even worse. After about one hundred
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  Speaker 3: and twenty days, they're going to send you to collections.
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  Speaker 3: That's even worse. So we have to know what's on
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  Speaker 3: the reports first and foremost. We should be looking the
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  Speaker 3: accounts that have lay payments. You should be looking for
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  Speaker 3: what your utilization ratio is. Remember, income has nothing to
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  Speaker 3: do with credit. What they look at and what they
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  Speaker 3: measure is called your utilization ratio. That's the difference between
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  Speaker 3: your credit card balances and your credit limits. It's both
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  Speaker 3: umative and individual cards. You never want that number to
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  Speaker 3: be over thirty percent. You never want to be carrying
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  Speaker 3: balances over thirty percent. And look, a lot of people
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  Speaker 3: could benefit from adding open, active positive accounts. You might
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  Speaker 3: have to get a secured credit card that works by
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  Speaker 3: you deposit your hard earned money into a bank, you
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  Speaker 3: actually wind up borrowing your own money, so you never
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  Speaker 3: want to carry a balance there. But sure, it's another
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  Speaker 3: new open account and that could help offset the damage
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  Speaker 3: and impact from existing negative accounts. So one of the
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  Speaker 3: things we've always prided ourselves on over the past twenty
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  Speaker 3: one years is we will provide a free credit analysis
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  Speaker 3: and consultation. After that phone call, you'll have all the
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  Speaker 3: information that you would need if you want to do
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  Speaker 3: with yourself. Good luck, God bless you. Try to do
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  Speaker 3: it yourself. It's not easy and I'm sure you can
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  Speaker 3: appreciate this, Garry. Now we hear it all the time. Oh,
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  Speaker 3: I can just put that in the chat GPT. I
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  Speaker 3: can have AI. Look if I could, If we could
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  Speaker 3: do that, I would do it a heartbeat. But the
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  Speaker 3: reality is AI helps us, just like it helps a
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  Speaker 3: lot of businesses gather information and increases the speed in
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  Speaker 3: which we perform the same processes that we did before AI.
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  Speaker 3: But you need a human being to speak to someone,
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  Speaker 3: find out what their long term goals are, what's your
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  Speaker 3: short term goals, what other assets do you have, what
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  Speaker 3: are you looking to do, Your kid's gonna wind up
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  Speaker 3: going to college. All of these things have to be
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  Speaker 3: put in play so that we can come up with
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  Speaker 3: the best plan of action. So find out what's on
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  Speaker 3: your reports, and then if you have to take action,
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  Speaker 3: take action. Because the longer you wait. People always ask me, Paul,
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  Speaker 3: how much does it cost for your program?
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  Speaker 2: I say, I don't know.
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  Speaker 3: You know, I would be more worried about the cost
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  Speaker 3: of not doing anything, because that can add up very
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  Speaker 3: very quickly, and it could put you in a situation
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  Speaker 3: where you couldn't You can't even get approved, right we
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  Speaker 3: deal with people and they can't even buy a car.
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  Speaker 3: They can definitely can't get approved for a mortgage. So
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  Speaker 3: take a look at everything as soon as possible, take action,
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  Speaker 3: be proactive. And the reality is right now, most people
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  Speaker 3: are suffering right with lower credit score because you've never
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  Speaker 3: planned for the for what the economy, what's happening in
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  Speaker 3: the economy right now? Correct filled inle digit inflation numbers
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  Speaker 3: as the across the boards. They didn't build in, you know,
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  Speaker 3: the fuel costs, they didn't build in groceries and all
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  Speaker 3: of that stuff. Every single thing just costs more money.
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  Speaker 3: And if you have a lower credit score, it costs
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  Speaker 3: even more. Mind So, we're coming into the season where
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  Speaker 3: people are talking about vacations, and I get it. You
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  Speaker 3: work hard, you want to reward yourself and your family,
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  Speaker 3: and people have a tendency to talk themselves into this,
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  Speaker 3: But the best vacation memory shouldn't be your credit card debt.
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  Speaker 3: Right the business, you know sunburned. Sunburns will fade. Credit
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  Speaker 3: card debt will hang around forever if you don't take
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  Speaker 3: care of it. So budget budget wisely. People always ask, well,
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  Speaker 3: how do we do it? We don't just decide where
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  Speaker 3: to go, how many days? Who's well, you got to
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  Speaker 3: decide how much can I actually afford to spend on
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  Speaker 3: this vacation, and then you backfill it with something that
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  Speaker 3: you can afford. If you do it the other way around,
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  Speaker 3: you're going to wind up overspending for sure. So just
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  Speaker 3: budget budget, budget, budget plan accordingly. You know, plan earlier.
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  Speaker 3: Stay as flexible as you possibly can. Track pricing. You
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  Speaker 3: want to use AI, use Google Flights, Hopper, Kayak, all
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  Speaker 3: of these things will have trending data and prices. You
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  Speaker 3: could set alerts, let me know if the price drops,
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  Speaker 3: let me know if the price starts going up, and
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  Speaker 3: I should pull the trigger as soon as they possibly cut.
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  Speaker 3: Use one credit card when you go away. If you're
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  Speaker 3: running around with a card and your wife's running around
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  Speaker 3: with a different card and the kids have a different card,
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  Speaker 3: you know, a week after and the statements start coming
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  Speaker 3: in and we go, I can't believe we spent that
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  Speaker 3: money on dining, on breakfast, on excursions. All of that
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  Speaker 3: stuff is going to add up very very quickly. It's
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  Speaker 3: not just airflare airfare and hotels.
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  Speaker 2: Yeah, that's for sure. So hey, what about AI using
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  Speaker 2: it to set up your budget?
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  Speaker 3: Well, you can, for sure, you can plug certain things in,
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  Speaker 3: but ultimately I would have somebody look at it.
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  Speaker 2: Right.
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  Speaker 3: AI is great to kind of lay the framework and
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  Speaker 3: do the legwork, the early leg work, just to put
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  Speaker 3: something in place. The biggest mistake is most people don't
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  Speaker 3: have anything, and there's really no excuse for that. Now
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  Speaker 3: there's a ton of free different softwares out there. Plug
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  Speaker 3: your numbers in to something. If you want to do
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  Speaker 3: it on pen of paper, God bless you, go ahead
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  Speaker 3: and do it. But the reality is most people don't
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  Speaker 3: know where the money goes. Most people know to the
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  Speaker 3: penny Friday's payday, I am making three hundred and twelve
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  Speaker 3: dollars and ninety six cents every Friday. What they don't
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  Speaker 3: know is how much they have money they spend every day.
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  Speaker 3: So put an expense analyzer in place, figure out where
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  Speaker 3: this money is going look at your credit card statements,
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  Speaker 3: look at your debit and checking account statements, figure out
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  Speaker 3: where the money is going. Because if you don't cut expenses,
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  Speaker 3: you're you're gonna have a tough time budgeting unless you're
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  Speaker 3: gonna win the lottery or a great uncle is going
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  Speaker 3: to pass away and leave your money. Where's the money
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  Speaker 3: gonna come from? So budget accordingly, plan early, put some
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  Speaker 3: time and effort into this.
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  Speaker 2: People.
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  Speaker 3: This is important. You know, big boy and big girl stuff.
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  Speaker 3: So right, you got to step up to the play here.
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  Speaker 2: Mm hm, So yeah, that makes total sense obviously. And
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  Speaker 2: you know it's like this guy who worked for me
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  Speaker 2: used to say, in business, you either got to raise
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  Speaker 2: the bridge or you got to lower the river. You know,
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  Speaker 2: so you either got to make more or spend less
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  Speaker 2: or do both.
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  Speaker 3: Right, That's the only way to do it, Carrie. It's
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  Speaker 3: the only way to do.
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  Speaker 2: It, all right, sir. So, like people want to find
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  Speaker 2: out more about what you do, Paul, They want to
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  Speaker 2: connect with you. How do you do it?
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  Speaker 3: They can just go to better qualified dot com. Better
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  Speaker 3: qualified dot com again, they can free fill out a form,
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  Speaker 3: we can text them, email them, just to get the
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  Speaker 3: conversation started and again. The best part about that is
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  Speaker 3: it's absolutely free.
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  Speaker 2: Which like the best things in life. Link is in
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  Speaker 2: the show notes to this interview on Financial Survival Network
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  Speaker 2: dot com. Any questions or comments shoot me and Paul
• 13:37
  Speaker 2: an email at kl at Terry Lutz dot com. Always
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  Speaker 2: a pleasure, Paul, We will talk to you again real soon.
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  Speaker 3: Thanks Carry, Thanks for listening to Carrie.
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  Speaker 2: Let's this.
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