For most people, figuring out how our credit score is calculated is a black box. Learning what impacts your credit score gives you flexibility to change it. Here are twenty ways you are ruining your credit.

Today's guest is Steve Snyder. Steve is an author, speaker, and one of the top personal finance commentators in the country trained by the Fair Isaac Corporation, the firm that created the score that credit reporting agencies use to calculate a consumer's credit worthiness. FICO Score is widely recognized as the industry standard for lenders. Steve has been quoted in the US News World Report, The Wall Street Journal, Newsweek, The Washington Post, and many others.

Show Notes:

• [1:03] - Welcome to the podcast, Steve! Steve describes what he does in his career and what got him interested.
• [2:43] - Steve recovered from bankruptcy in less than eight months and realized that most people have no idea how to manage their credit.
• [3:34] - The biggest mistake is not knowing that you have three credit scores.
• [4:50] - The three scoring companies from Equifax, Experian, and TransUnion.
• [5:41] - Not all lenders report to your credit reports which is why scores can be different.
• [8:05] - There's a system in place to correct things that are wrong with the large scoring companies.
• [9:01] - Most people purchase the wrong scores. Most of the scores you are bombarded with online are fake.
• [10:43] - Steve explains why the vantage score was created and why your FICO score is more important.
• [12:01] - Debts going to collections, late payments, judgments, liens, bankruptcies, high utilization, negatively impact your credit.
• [13:51] - Steve explains how shopping for cars and mortgages shows up as multiple inquiries on your credit.
• [15:50] - Most people don't realize that they have a utilization sweet spot.
• [17:05] - No utilization can be bad for your credit score as well. You can have too much or too little.
• [19:01] - Having a credit card is the first step. Using it is the second.
• [21:45] - Your credit history goes back longer than just recent months and years.
• [23:35] - You never want to randomly close credit accounts even if it is an unused card that you've had for a long time.
• [24:40] - Never fight about your credit on your credit reports. If you have an issue, take it to small claims court.
• [27:41] - Most people do not understand how credit works because we are not prepared early in life.
• [29:21] - Steve is not going to ever risk his perfect credit scores by co-signing anything even with his own children.
• [32:00] - Co-signing student loans can be detrimental.
• [34:11] - It is wise to freeze your children's credit until they are ready to use it.
• [35:26] - Steve explains the meaning of "thickening a thin credit file."
• [37:46] - People think that because they make a lot of money that money will take care of everything else.
• [39:25] - Allowing collections to show on your credit is a huge mistake but is easily rectified.
• [40:51] - Steve explains the difference between a charge off and a settlement.
• [42:00] - Too many credit inquiries lowers your score but will also "spook lenders."
• [43:16] - You could be paying off the wrong things. Your credit score is heavily weighted on your personal credit balance.
• [45:01] - Business and personal finances should be separate.
• [46:55] - No interest business credit cards are a great way to get started, but you have to be disciplined with a real business idea.
• [49:25] - The best time to apply for credit is when you don't need it. Don't wait for the emergency.

Thanks for joining us on Easy Prey. Be sure to subscribe to our podcast on iTunes and leave a nice review.

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