WEBVTT NOTE This file was generated by Descript 00:00:01.909 --> 00:00:05.589 Gene: to the 9 1 1 Credit Builder Podcast Show, where we're on a mission 00:00:05.619 --> 00:00:09.109 to help you unlock the doors to your credit and financial freedom. 00:00:09.202 --> 00:00:13.149 Join host Jean Davis and Laura Summers Davis as they embark on a 00:00:13.149 --> 00:00:17.209 journey to decode the intricacies of credit and credit repair. 00:00:17.322 --> 00:00:21.902 In this episode, they dive deep into the fundamental aspects of credit, 00:00:22.036 --> 00:00:25.812 answering burning questions and shedding light on essential concepts with 00:00:25.882 --> 00:00:27.822 expert insights and practical advice. 00:00:28.039 --> 00:00:33.249 This podcast sets the stage for a deeper dive into the world of credit. 00:00:33.559 --> 00:00:36.649 In this series of Unlocking Credit Mysteries, we are talking 00:00:36.649 --> 00:00:40.789 about the fundamentals of credit and also demystifying credit. 00:00:41.057 --> 00:00:44.245 We'll answer a hundred burning questions by breaking down the 00:00:44.245 --> 00:00:46.305 questions into four episodes. 00:00:46.386 --> 00:00:49.456 We are on part three or episode three. 00:00:49.890 --> 00:00:52.410 Welcome back everyone to Unlocking Credit Mysteries. 00:00:52.530 --> 00:00:53.460 Laura: I am Gene Davis. 00:00:53.658 --> 00:00:55.558 And I'm Laura Summers Davis. 00:00:55.646 --> 00:00:58.326 Today we're tackling the fundamental questions about 00:00:58.326 --> 00:01:00.176 credit that many people have. 00:01:00.616 --> 00:01:02.666 Let's jump right in. 00:01:02.925 --> 00:01:06.204 Gene: I appreciated our listeners reaching out to us and asking 00:01:06.204 --> 00:01:07.174 a lot of these questions. 00:01:07.174 --> 00:01:09.134 So there are some good questions that they've done. 00:01:09.356 --> 00:01:10.936 We're on number 51. 00:01:11.145 --> 00:01:14.675 How do inquiries affect my credit score? 00:01:14.675 --> 00:01:19.561 Laura: Inquiries, also known as hard pulls or hard hits on your credit occur 00:01:19.571 --> 00:01:25.001 when someone checks your credit report in response to a credit application, 00:01:25.391 --> 00:01:30.931 while each inquiry typically has a small negative impact on your scores, multiple 00:01:31.021 --> 00:01:36.651 inquiries within a short period of time can signal higher credit risks to lenders. 00:01:36.988 --> 00:01:41.228 What's the difference between a soft inquiry and a hard inquiry? 00:01:41.248 --> 00:01:44.191 Gene: Soft inquiries, like those from pre approved credit 00:01:44.191 --> 00:01:46.330 offers or background checks. 00:01:46.431 --> 00:01:47.981 They don't impact your credit scores. 00:01:48.131 --> 00:01:52.962 Hard inquiries, on the other hand, occur when you apply for credit and can 00:01:53.072 --> 00:01:55.932 temporarily lower your credit scores. 00:01:56.148 --> 00:01:59.508 Can I dispute accurate information on my credit report? 00:01:59.508 --> 00:02:05.882 Laura: While you can dispute inaccurate, unverifiable, and untimely information, 00:02:05.982 --> 00:02:11.472 you generally can't dispute accurate information on your credit report. 00:02:11.812 --> 00:02:16.842 However, when those things happen, you can negotiate with creditors to 00:02:16.842 --> 00:02:21.758 remove negative items in exchange for payment, and other things like, 00:02:21.837 --> 00:02:25.957 Removing late payments when you've had an emergency happen in your 00:02:25.957 --> 00:02:29.447 life, even when they are accurate. 00:02:29.727 --> 00:02:34.537 These things can affect your scores in a negative way, so of course you should ask. 00:02:34.737 --> 00:02:38.637 It doesn't hurt to ask when you're already at zero anyway, does it Jane? 00:02:38.891 --> 00:02:42.971 Gene, are there different tiers for credit utilization? 00:02:43.108 --> 00:02:43.988 Gene: Yes, there are. 00:02:44.181 --> 00:02:48.361 The best is between one and nine percent, never to zero. 00:02:48.361 --> 00:02:49.751 That doesn't really help you. 00:02:50.031 --> 00:02:53.331 The next tier is ten to twenty five percent. 00:02:53.600 --> 00:02:57.510 And then the next tier is 26 to 49 percent. 00:02:57.713 --> 00:03:01.246 And then the next tier is 50 percent and above. 00:03:01.320 --> 00:03:04.060 Anything above 50 percent starts to go negative. 00:03:04.310 --> 00:03:08.820 The higher you go to having it maxed out, the worse your credit scores are. 00:03:08.886 --> 00:03:11.770 So anything above 50 percent is bad. 00:03:11.880 --> 00:03:15.980 Keep it always below 50 percent and there again the best is one to nine percent. 00:03:16.313 --> 00:03:20.463 Laura: Yes, and a lot of people ask us about that one to nine percent. 00:03:20.563 --> 00:03:21.993 What is that one percent, Jane? 00:03:22.190 --> 00:03:27.450 That one percent is super, super important because it allows the algorithms to work 00:03:27.450 --> 00:03:32.760 in your favor, showing that you are a better prospect when it comes to loans 00:03:33.080 --> 00:03:35.660 and other offers that benefit your credit. 00:03:35.925 --> 00:03:38.825 Gene: What should I do if I'm a victim of identity theft? 00:03:39.698 --> 00:03:42.588 Laura: When you suspect identity theft, place a fraud 00:03:42.588 --> 00:03:44.118 alert on your credit reports. 00:03:44.511 --> 00:03:49.791 You also can review your reporting information for any unauthorized activity 00:03:50.041 --> 00:03:56.251 or signs of concern, and then report any fraudulent accounts or activity to the 00:03:56.251 --> 00:03:59.491 credit bureaus as well as law enforcement. 00:03:59.491 --> 00:03:59.541 For 00:03:59.726 --> 00:04:03.236 the best thing to do is to go to our website at 911creditbuilder. 00:04:03.886 --> 00:04:04.316 com. 00:04:04.736 --> 00:04:09.306 Click on the tab that says dollar credit report. 00:04:09.662 --> 00:04:13.662 Once you have access to that information, we'd be happy to review your credit 00:04:13.932 --> 00:04:18.352 and give you suggestions on how to contact the bureaus, as well as law 00:04:18.382 --> 00:04:20.642 enforcement, to fix these things. 00:04:21.069 --> 00:04:24.359 Can I build credit without a credit card, Gene? 00:04:24.592 --> 00:04:27.742 Gene: Yes, you can build credit through alternative methods. 00:04:27.890 --> 00:04:32.820 Like secured credit cards, credit builder loans, or becoming an authorized 00:04:32.830 --> 00:04:35.220 user on someone else's credit account. 00:04:35.530 --> 00:04:40.077 number 57, how long does negative information stay on my credit report? 00:04:40.284 --> 00:04:44.604 Laura: Most negative information such as late payments, collections, 00:04:44.604 --> 00:04:49.664 and bankruptcies can remain on your credit report for seven to ten 00:04:49.674 --> 00:04:52.604 years depending on the type of item. 00:04:53.052 --> 00:04:57.179 What's the difference between a credit freeze and a credit lock? 00:04:57.579 --> 00:04:58.469 Gene: Oh, that's good. 00:04:58.529 --> 00:05:03.125 A credit freeze restricts access to your credit report, preventing new 00:05:03.125 --> 00:05:04.745 accounts from being opened in your name. 00:05:04.847 --> 00:05:09.297 While a credit lock provides a similar protection, but can be more 00:05:09.297 --> 00:05:11.637 easily lifted or managed online. 00:05:11.897 --> 00:05:14.357 Can utility bills affect my credit score? 00:05:14.480 --> 00:05:18.610 Laura: While utility bills typically don't directly impact your credit 00:05:18.610 --> 00:05:22.110 scores, unpaid bills definitely do. 00:05:22.460 --> 00:05:26.500 When they're sent to collections especially, those items can end 00:05:26.500 --> 00:05:30.600 up on your credit report and negatively affect your scores. 00:05:30.947 --> 00:05:33.917 how does co signing affect my credit? 00:05:34.227 --> 00:05:38.537 Gene: Co signing for a loan makes you equally responsible for that debt. 00:05:38.697 --> 00:05:43.197 And a missed payment or default can impact both the primary borrower 00:05:43.310 --> 00:05:45.610 and the co signer's credit scores. 00:05:45.704 --> 00:05:46.984 So be careful there guys. 00:05:47.100 --> 00:05:49.430 Laura: when you're wanting to merge your credit with someone else or 00:05:49.430 --> 00:05:52.764 wanting to benefit from someone else's credit, have them talk to us. 00:05:52.934 --> 00:05:56.564 We'll look at their credit and we'll make sure that it's an ideal situation for you. 00:05:56.884 --> 00:06:01.094 You definitely don't want to have their credit, should there be negative, 00:06:01.194 --> 00:06:05.494 impactful things, hurt your credit when you're wanting to build your credit. 00:06:05.704 --> 00:06:07.634 And you could be doing it unknowingly. 00:06:07.914 --> 00:06:11.214 Sometimes people know what's on their credit and other times they 00:06:11.214 --> 00:06:12.774 just assume what's on their credit. 00:06:13.054 --> 00:06:16.984 It's best to check first since this is very, very important to your credit. 00:06:17.227 --> 00:06:17.907 Gene: Good advice. 00:06:18.130 --> 00:06:21.187 Can my credit score impact my job prospects? 00:06:21.404 --> 00:06:25.314 Laura: Some employers may check credit reports as part of the hiring 00:06:25.314 --> 00:06:30.784 process, particularly for positions involving financial responsibilities 00:06:31.084 --> 00:06:33.314 or higher security clearances. 00:06:33.710 --> 00:06:36.500 How do joint accounts affect my credit? 00:06:36.860 --> 00:06:39.939 Gene: Joint accounts can impact both parties credit scores. 00:06:40.125 --> 00:06:43.475 As activity on the account, including missed payments or 00:06:43.475 --> 00:06:47.213 high balances, this reports on both individuals credit reports. 00:06:47.433 --> 00:06:48.773 So be careful there again. 00:06:48.823 --> 00:06:52.252 It's similar to cosigning, but it's not exactly the same. 00:06:52.252 --> 00:06:54.682 Joint accounts are definitely different than cosigning. 00:06:54.745 --> 00:06:58.535 What is the difference between a credit report and a credit score? 00:06:58.691 --> 00:07:03.507 Laura: A credit report is a detailed, profiled record of your credit 00:07:03.507 --> 00:07:08.857 history, while a credit score is a numerical representation of your credit 00:07:08.857 --> 00:07:15.127 worthiness based on the information in the background on your credit report. 00:07:15.617 --> 00:07:18.867 The background is what determines the scores. 00:07:19.707 --> 00:07:23.107 Can I have a credit score without any credit history? 00:07:23.578 --> 00:07:24.018 Gene: No. 00:07:24.175 --> 00:07:26.145 You typically need some credit history. 00:07:26.282 --> 00:07:29.979 Such as a credit card or a loan to generate a credit score. 00:07:30.051 --> 00:07:34.271 A collection account will also generate a score, which is not good. 00:07:34.271 --> 00:07:35.381 You don't want to have those. 00:07:35.482 --> 00:07:37.792 How often should I check my credit reports? 00:07:38.071 --> 00:07:41.641 Laura: It's a good idea to check your credit report from each of the three 00:07:41.681 --> 00:07:47.871 major credit bureaus, TransUnion, Equifax, and Experian, at least once a year. 00:07:48.231 --> 00:07:54.495 this monitors for inaccuracies or signs of identity theft, as well as lets you 00:07:54.505 --> 00:07:56.515 know what's going on with your credit. 00:07:56.797 --> 00:07:59.457 What factors don't affect my credit scores? 00:07:59.912 --> 00:08:05.135 Gene: Income, race, religion, marital status, and age are not considered 00:08:05.135 --> 00:08:08.840 in credit scoring modules and do not impact your credit score. 00:08:09.258 --> 00:08:12.138 Can a landlord check my credit score without permission? 00:08:12.505 --> 00:08:17.225 Laura: Landlords typically need your permission to check your credit report as 00:08:17.225 --> 00:08:19.665 part of the rental application process. 00:08:20.025 --> 00:08:21.965 How does moving affect my credit? 00:08:22.152 --> 00:08:25.698 Gene: Moving Excel doesn't directly impact your credit, but changes in 00:08:25.708 --> 00:08:30.558 address may affect the accuracy of your credit report if they're not updated with 00:08:30.558 --> 00:08:32.648 the creditors and the credit bureaus. 00:08:32.915 --> 00:08:34.365 Number 69. 00:08:34.815 --> 00:08:39.355 Can I negotiate with creditors to remove negative items from my credit report? 00:08:39.710 --> 00:08:43.880 Laura: Yes, you can negotiate with creditors to remove negative items, 00:08:44.250 --> 00:08:47.950 especially when you're willing to pay the debt in full or settle for 00:08:47.950 --> 00:08:49.890 less than the full amount owed. 00:08:50.190 --> 00:08:53.200 It's very important for you to make sure what category you are 00:08:53.200 --> 00:08:57.280 in in this department, reach out to us, 911creditbuilder. 00:08:57.310 --> 00:09:02.150 com, so that we can advise you on what the best course of action is 00:09:02.150 --> 00:09:06.160 when you're negotiating with creditors to remove those negative items. 00:09:06.410 --> 00:09:08.990 When you are capable of paying the debt. 00:09:10.342 --> 00:09:14.032 Gene, how does getting married affect my credit? 00:09:14.287 --> 00:09:17.417 Gene: Getting married doesn't merge your credit reports or scores with your 00:09:17.417 --> 00:09:23.301 spouse, but joint accounts or shared debt can affect both parties credit scores. 00:09:23.619 --> 00:09:26.409 Can I inherit someone else's credit scores? 00:09:26.806 --> 00:09:32.106 Laura: No, credit scores are individual, just like your thumbprint, 00:09:32.486 --> 00:09:35.736 and are not transferable upon death. 00:09:36.196 --> 00:09:38.836 It relies on your own personal. 00:09:39.091 --> 00:09:40.801 Social security number. 00:09:41.211 --> 00:09:45.601 That's why it's imperative when you use it for any merging 00:09:45.601 --> 00:09:47.351 with anybody else's credit. 00:09:47.351 --> 00:09:50.611 How do missed payments affect my credit scores? 00:09:51.041 --> 00:09:54.857 Gene: Missed payments can have a significant negative impact on your 00:09:54.857 --> 00:09:58.821 credit score, as payment history is one of the most influential factors 00:09:59.071 --> 00:10:00.461 in the credit scoring modules. 00:10:00.581 --> 00:10:01.511 don't miss a payment. 00:10:01.631 --> 00:10:02.311 Don't be late. 00:10:02.641 --> 00:10:06.421 Don't not become 30, 60, 90, 120 days late. 00:10:06.624 --> 00:10:09.937 Laura: And when you are late, Hire us, we'll help you figure it out. 00:10:09.947 --> 00:10:13.367 There may be some methods we can advise you on in disputing some of 00:10:13.367 --> 00:10:16.807 those missed payments, especially when an emergency has happened or 00:10:16.807 --> 00:10:18.377 you're just a little bit behind. 00:10:18.547 --> 00:10:20.977 Gene: However, the bureaus don't care about any emergencies. 00:10:21.127 --> 00:10:22.397 They just go off of facts. 00:10:22.590 --> 00:10:27.610 Laura: Yes, you may have multiple credit scores from different scoring models or 00:10:27.620 --> 00:10:33.390 versions, as well as separate scores for each of the three major credit bureaus. 00:10:33.840 --> 00:10:38.690 And sometimes one credit bureau might not even report one of your 00:10:38.690 --> 00:10:41.450 accounts, whereas the other two will. 00:10:41.704 --> 00:10:45.723 Gene: That's true because it's a voluntary system and it depends on 00:10:45.793 --> 00:10:50.006 whether or not they want to provide that information to the credit bureaus because 00:10:50.006 --> 00:10:51.646 it does cost them money to do that. 00:10:51.976 --> 00:10:55.026 Can my credit scores be different between the credit bureaus? 00:10:55.244 --> 00:10:59.154 Laura: Yes, your credit scores can vary between credit bureaus due 00:10:59.154 --> 00:11:04.364 to differences in the information reported and the scoring models used. 00:11:04.696 --> 00:11:09.299 Gene: Just like we said before, one vendor or one company reporting may only 00:11:09.299 --> 00:11:11.439 report it to one bureau or all three. 00:11:11.479 --> 00:11:14.856 They don't have to report it to anyone in particular. 00:11:14.856 --> 00:11:16.216 It's a voluntary system. 00:11:16.536 --> 00:11:21.936 But whatever they report has to be 100 percent accurate and 100 percent 00:11:21.936 --> 00:11:24.936 verifiable and report on time. 00:11:24.936 --> 00:11:25.305 Do 00:11:25.986 --> 00:11:29.786 Laura: how does declaring bankruptcy affect my credit? 00:11:30.153 --> 00:11:34.583 Gene: Bankruptcy can have a severe and long lasting negative impact on your 00:11:34.583 --> 00:11:39.295 credit, potentially lowering your credit scores by hundreds of points and staying 00:11:39.355 --> 00:11:42.572 on your credit report for up to 10 years. 00:11:42.602 --> 00:11:43.592 That's a long time, guys. 00:11:43.979 --> 00:11:48.821 Laura: As we wrap up today's episode, we hope you've gained valuable insights into 00:11:48.821 --> 00:11:51.321 the world of credit and credit repair. 00:11:51.651 --> 00:11:56.891 Remember, knowledge is power, and by understanding the factors that 00:11:56.891 --> 00:12:01.671 influence your credit, You can take control of your financial future. 00:12:02.111 --> 00:12:05.421 Join us next time as we continue our journey through the realm of 00:12:05.421 --> 00:12:09.931 credit, answering more of your burning questions and providing 00:12:10.001 --> 00:12:12.121 expert guidance along the way. 00:12:12.521 --> 00:12:17.591 Until then, stay informed, stay empowered, and remember your credit journey 00:12:17.591 --> 00:12:20.651 starts here with 9 1 1 Credit Builder. 00:12:20.982 --> 00:12:22.042 Thanks for tuning in!