What The Actual F*ck Is Credit?!

This week, we tackle one of the most important building blocks of adulthood: having good credit. But first and foremost, what the hell even is credit? Our hosts examine the ins and outs of establishing good credit, while enjoying an Oregon-coast Pinot Noir. 

Our hosts:

Corinne Foxx - @corinnefoxx

Natalie McMillan - @nataliemcm

What were drinking this episode: Drouhin Oregon Roserock 2016 Pinot Noir

Intro -

Corinne and Natalie catch up and discuss what they've been watching lately. Corinne reveals that she's been re-watching Twilight. They each reveal if they're Team Edward or Team Jacob.

In the episode, Natalie references Robert Pattinson's GQ Interview and its hilarity.

Topic -

Why we're passionate about understanding credit: It's a modern day resume to get things that you want and need. Especially during this time, people are relying on credit more than ever. Also, credit is something that affects everyone regardless of socio-economic status.

Definitions -

CREDIT - The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

CREDIT SCORE - Your financial health is often expressed by one number: your credit score. It’s a number between 300-850 that depicts your creditworthiness. The higher the number, the more attractive you are as a borrower. 

• HOW IT’S USED: getting an apartment, a car, “big ticket items”, nowadays they run credit when you get a job ( this shows your trustworthiness)

Benefits to having good credit:

Your credit score can be used to lower your auto loan percentage. Also, your mortgage loan percentage is based on credit score. Nowadays, it can affect getting the job that you want. A good credit score can help get you better credit cards, which can lead to accruing points with additional benefits (like travel).

Managing Credit -

• Five Ways To Build Your Credit Score: 
• 1. A credit card (secured card, store card, bank card)
• 2. Auto loans (buy or lease)
• 3. Multiple lines of credit
• 4. Credit utilization rate
• 5. Paying off your credit card (be aware of interest, can pay minimum if funds aren’t available, set up automatic payments, use extra cash to pay off cards, creditors are reporting every month to bureaus how much you’re paying off of your card)
• Five Common Mistakes People Make:
• 1. Paying late (sometimes a day or one week is okay, but the biggest mistake is 30 days late, you’ll take a huge hit and you’ll have to wait 7 years for the missed payment to be removed)
• 2. Only paying the minimum, when you can pay more
• 3. Utilizing too much credit (credit limit $1000, you’re always at $950)
• 4. Not paying medical bills will go on your credit
• 5. Not getting a credit card

Checking Your Credit -

You can go to www.annualcreditreport.com

The government says that...