Su puntuación de crédito: Qué puede (y no puede) hacer por usted

Bright Dickson (00:09):

Welcome to Money and Mindset with Bright and Brian, where we chat about personal finance with a twist of positive psychology to help you find joy in practicing good money habits. I'm Bright Dickson, a lifelong student of positive psychology, and I'm joined with my pal, Brian Ford, our financial wellness expert. Hoy tenemos un podcast sobre la puntuación de crédito. ¿Qué es lo que sienten cuando escuchan esas palabras? Bueno, piensen en este episodio sobre todo lo que necesitan saber sobre puntuaciones de crédito. We'll dive into how this important number affects your life, the factors that influence and how to achieve and maintain an excellent credit score. Brian, sé que te mueres por hablar de esto. You ready to get started?

Brian Ford (00:50):

Por supuesto. Allá vamos.

Bright Dickson (01:02):

Brian, let's jump right in. So while we know basically what a credit score is, can you break it down for us? And also why should I even bother with working to improve it? ¿Por qué es importante? ¿Qué es? Danos los detalles.

Brian Ford (01:17):

Look, I'm excited about this episode. There's so much misconception, kind of false information out there when it comes to credit scores. I think a little straight talk will be a good thing around this subject. Nuestra puntuación de crédito cuantifica el riesgo que suponemos para los prestamistas. Sometimes it's good to put ourselves in the shoes of the folks we're trying to impress, so to speak. En otras palabras, nuestra puntuación de crédito les da a los prestamistas una idea de cuáles son las probabilidades de que devolvamos el dinero que pidamos prestado.

(01:44):

The higher your score, the more likely you are to pay back the loan and the less risk you pose to the lender. Si tenemos una buena puntuación de crédito, tenemos mejores opciones cuando necesitamos pedir un préstamo para un auto o una vivienda. So what I want to emphasize really is that an attractive credit score gives you the power, it allows you to get the best interest rates, and when we get lower rates, this can save us thousands of dollars over time.

Bright Dickson (02:12):

Brian, I love that. I know that you know that my brain gets a little fuzzy in terms like interest rate come up. It just kind of gets a little fuzzy in there. Pero sí me parece muy importante que lo recalquemos bien, ¿cierto? That when you're in control of your credit score, you're really putting yourself in the driver's seat and you're in control of your future, right? Se está poniendo en la mejor posición posible para poder hacer lo que uno quiere hacer.

Brian Ford (02:38):

Sí, totalmente cierto. I also want to mention that a good credit score, it can not only help you get a lower interest rate. There's that crazy fancy finance term again, Bright. But not only are we going to get lower rates when we borrow money, but it's also important when applying to rent a home or an apartment, sometimes a future employer may want to check your score. Si dos personas se postulan para el mismo empleo y todo lo demás es igual, la puntuación de crédito puede llegar a darnos un empujoncito hacia arriba si es más alta que la de la otra persona. Y mucha gente no se da cuenta de que muchos proveedores de seguros de automóvil usan la puntuación de crédito para determinar el importe que pagamos cada mes por el seguro del auto.

Bright Dickson (03:18):

¿En serio? No lo sabía. So if I have a good credit score, I'm probably going to pay less money each month for car insurance.

Brian Ford (03:25):

Almost certainly. I mean, look, the type of car you drive and your driving history are the other two big variables. But the third one, the third big variable on that is your credit score. Mucha gente no lo sabe.

Bright Dickson (03:36):

No tenía idea. Es bueno saberlo. So break it down for me, Brian. How is a score calculated? ¿Qué factores se incluyen? ¿Cómo sabemos qué es qué en la cuenta?

Brian Ford (03:47):

Bueno, antes de que nos metamos en cómo se calcula la calificación, tengamos siempre presente que nuestra puntuación de crédito no es lo mismo que nuestro informe crediticio. El informe es importante. Incluye los detalles de todos los diferentes préstamos que sacamos. You can see them and really it's the why you have a good score or not. Pero no es la calificación. It's important to look at both the report and the score. Pero entonces cuando vemos nuestro informe, ¿cómo diablos sabemos si es bueno? Veamos si puedo desmitificarlo un poco. The credit scoring system ranges between 300 on the low side, yucky, stay away from that. And 850 on the you're killing it side. So 300 to 850. If your score is 600 or less, we've got some work to do.

(04:38):

Definitivamente sigan escuchando este episodio para que podamos darles algunas sugerencias para intentar subirla. If your score is between 600 and 670, it's fair, not good, but you're on the right track. 670 to 730 is good, and anything above a 730 is great. You're probably going to get the best rates in terms on loans. So that's kind of the breakdown there. And we're going to get into the details of this breakdown in our next segment. But at a high level, your scores are made up of five main categories and the categories, they're weighted differently. En otras palabras, algunas áreas o algunas categorías son más importantes que otras. Estas son las cinco, Bright. Primero tenemos el historial de pago. El historial de pago corresponde al 35% por ciento de la puntuación de crédito.

(05:30):

La número dos son las cantidades que se deben. Es el 30% y es importante. Quiero enfocarme en estas primeras dos porque la mayor parte de su calificación, el 65%, es básicamente hacer sus pagos puntualmente y no tener una deuda muy grande. A eso se reducen esas primeras dos categorías. Number three is length of credit history. That makes up 15%. Number four is credit mix. That's 10%. And at number five is new credit, and this is also 10%. Además de verificar la calificación antes de solicitar un préstamo nuevo, algo que la mayoría de nosotros hacemos. Algo así como: "Caramba, tenemos que pedir un préstamo. ¿Cuál es la calificación?". También deberíamos controlar seguido nuestro informe crediticio y la calificación cada tres meses.

Bright Dickson (06:16):

Every six months. So that sounds like something pretty actionable that I should just put on my calendar to do on a regular basis.

Brian Ford (06:23):

I love it. Put it on there, every six months, glance at it, see where it's at, and see what you can do possibly to improve it. O quizás esté bien. I mean, some people get freaked out and their scores at a 735 and they're freaking out over little details and they're like, "How do I get it higher?" And it's like, "Yo, you're good. Está bastante bien". So again, go back to that scoring metric and see where you're at on it. And if there is some room for improvement, then dig in.

Bright Dickson (06:50):

Cool. Good to know. So now that we know why our credit score is important and how it's calculated. In just a second, in our next section we're going to get more specific about how you can increase your score. So stay with us. So Brian, for our listeners who are taking steps to get their finances back on track, maybe after some missteps, what's the first thing they should do to raise their credit score?

Brian Ford (07:28):

The first thing that comes to my mind is in past episodes we've talked about how financial confidence comes down to taking care of what you can control. I want to emphasize that ultimately you have control over your credit score. I want our listeners to consciously take ownership of and responsibility of their credit score. I mean the credit ranking system, it is what it is. And the sooner we learn the rules, the better the whole credit score picture will look for us. Cuando hablo con la gente, suele estar algo frustrada. A veces ayuda pensar en nuestra puntuación de crédito como nuestra libreta de calificaciones de adultos. Y digamos que estamos hablando, tengo un par de adolescentes. De hecho, oh dios, mi niño acaba de cumplir 13. I've got three now. Whoa, it just hit me. Sorry.

(08:12):

So we're talking to a kid trying to figure out credit scores or even maybe their grades. When a student gets bad grades, he can blame the teacher, his unfavorable circumstances or even an inaccurate information. Pero el hecho sigue siendo que el estudiante tiene una mala calificación vinculada a su nombre. Con la puntuación de crédito sucede lo mismo. No importa qué excusas pongamos para explicarlo, el número sí existe y tiene nuestro nombre. Por eso tenemos que verificar nuestra calificación, ver dónde estamos, pero hacernos cargo. Cuando estaba en la universidad, mis amigos se burlaban de mí, en serio. They are so perplexed at my knack for getting decent grades without seeming to overwork myself.

 (08:57):

Y me conocían demasiado bien como para creer que era por mi inteligencia innata. Pero lo que me ayudaba era mi capacidad de evaluar rápidamente al profesor y las reglas y requisitos para que me vaya bien en cada clase. I never wasted extra energy on what wasn't important to that specific teacher or on things that wouldn't directly affect my grade. Y con mi puntuación de crédito me manejo de una manera muy similar.

Bright Dickson (09:20):

Cuando iba a la universidad no pensaba en lo que la gente quería de mí, para nada. I mean, maybe I was doing a little people-pleasing, but I was definitely not getting it down to a science. Te felicito, Brian.

Brian Ford (09:31):

It was more of a efficiency. It wasn't intelligence. It was like, "All right, what's this dude care about? Eso es lo que voy a hacer". Which assignments are important to this individual teacher and kind of get after it and let the other stuff go by the wayside.

Bright Dickson (09:45):

Smart. Brian, what else do we need to know around this?

Brian Ford (09:50):

Let's get into now how do you have a good score? The first thing that I think of is when you check your score, if it's lower than expected, take a closer look at your report for any mistakes. And if you find an error like a missed payment, and you're sure that, "Hey, there's no way. I made these payments." O lo que sea, el error que sea, hay que informar ese error a la compañía de informes crediticios que corresponda. And there are three credit bureaus. There's Equifax, Experian, and TransUnion.

(10:22):

Entonces si el error está en el informe crediticio de Experian, es con ellos con quien debes comunicarte. A ellos les tienes que indicar el error. And it's easy, each credit bureau has their own website. Y en el sitio encontrarás lo que se llama un formulario de disputa. Lo completas y lo envías. Si están de acuerdo contigo y descubren que estás en lo cierto, corregirán el error y la puntuación de crédito subirá como corresponde. So that's kind of the first thing I think of.

Bright Dickson (10:49):

Es bueno saberlo.

Brian Ford (10:51):

Let's make sure there's no errors there and let's actually be looking at a score that reflects actually our behavior. Entonces cuando pensamos en elevar nuestra calificación, en su forma más simple, nuestra puntuación de crédito viene de nuestro historial de crédito, nuestros registros de pago y cuánto debemos. Tengo amigos que no entienden mucho más que eso y tienen puntuaciones de crédito altas. Y muchas veces tratamos de complicar los problemas cuando lo mejor sería simplificar las cosas. So to have a good credit score, you need to have a long credit history, always pay your bills on time and not carry excessive consumer debt. Esa es realmente la manera más simple. So if you follow these simple rules over time your credit score will rise automatically.

Bright Dickson (11:38):

Two thoughts. Number one, I am impressed that you talk to your friends about credit scores. That has never come up with my friends, but two, what is excessive? ¿Cómo definirías una deuda de consumo excesiva?

Brian Ford (11:54):

Again, you want to put yourself in the shoes of the lender. If you've got debt that is difficult for you to make those payments and you're even falling behind on those payments, you have excessive debt. Es todo relativo a tus ingresos. But if you're making payments, no problem. You're well within your means where you still have extra to save and you're investing for retirement, you're building an emergency savings account and still covering your debt payments with no problem. You're probably okay.

Bright Dickson (12:21):

Cool. That's good to know too. Entonces esas tres cosas, historial de crédito extenso, pagar tus cuentas a tiempo, no tener una deuda excesiva. ¿Cuál es el análisis más técnico? So I know that you like to dive into these things and I like to listen to you do that. So break it down, give us the breakdown.

Brian Ford (12:38):

De acuerdo, aquí vamos. So I'm going to go back to those five categories again and I'm going to give us a few tips in each one of these categories that will help raise our score. Y recuerden, las primeras dos categorías son las más importantes. So if you're trying to raise your score, highest the fastest, pay most attention to these first two categories. 35% of your credit score, if you remember, is derived from your payment history. Se necesita crédito en forma de un préstamo o una tarjeta de crédito para mostrar un historial de pagos. If you've never borrowed money, you have no payment history so for your first loan or credit card, you may need to secure that loan with collateral.

(13:13):

Eso se llama un préstamo con garantía y en realidad hablamos de dinero en el banco. Or you can have a cosigner. So someone who already has good credit, already established, cosigns so that the lender knows, "Oh, we don't really know about this person, but the second person's got credit, we trust that." So that's how you kind of get started. But the biggest takeaway in this section relative to payment history is always pay your loan payments on time and as agreed with the lender. Pagar las cuentas y hacer los pagos de préstamos puntual y sistemáticamente es lo más simple que uno puede hacer para tener una buena puntuación de crédito. Y por otro lado, nuestra puntuación de crédito puede caer estrepitosamente si alguna de nuestras cuentas termina en una agencia de cobranzas.

Bright Dickson (13:55):

That's not a good spot to be in.

Brian Ford (13:57):

Para nada. Tenemos que tener cuidado con eso. Y recuerden, esa es la sección más grande. So that's 35%. So next on the list, you've got amounts owed. El 30% de nuestra puntuación de crédito se calcula a partir de las cantidades que debemos. Y en esta sección, de nuevo, queremos tener cuidado de no tener una deuda excesiva. Me explicaré mejor. We want to avoid maxing out our credit lines or carrying a high balance on any of our accounts. More specifically, a decent rule of thumb just to kind of keep in mind, is avoid borrowing more than 50% of your credit limit. For example, your credit card limit, say it's four grand. Try not to exceed $2,000 on that particular card. That will keep you in check. En tu puntuación de crédito se tendrá en cuenta tu saldo adeudado reciente más alto en cada cuenta.

(14:48):

Un par de cosas más en esta categoría. Pay more the minimum amount required by the lender. Digamos que el pago mínimo para su tarjeta de crédito es de 25 dólares. Consider paying at least 50 or a hundred dollars. Y mejor aún es pagar el saldo completo todos los meses. And lastly, in this section, when you have multiple lines of credit, try not to carry balances on all of them at the same time. Así que por ejemplo, si tienes siete u ocho líneas de crédito, trata de usar quizás cuatro o cinco de ellas en algún momento dado. Tener un saldo en todas las líneas de crédito al mismo tiempo podría afectar negativamente tu puntuación de crédito.

Bright Dickson (15:25):

That's interesting. So the basic measure is minimize sort of what you're borrowing at all times on all levels, right?

Brian Ford (15:34):

You think of the lender, they want to make sure that you're comfortable with paying this back. Este es un nivel cómodo de deuda. They want to know that, "All right, this person's got access to let's say $10,000 worth of credit, but man, she's only using two or 3000. Solo lo usa para lo que necesita y puede saldarlo con facilidad. We like her." Again, kind of thinking the way they do helps.

Bright Dickson (16:00):

All right. What's the rest of it? So that's 65% or more. ¿Qué más hay allí?

Brian Ford (16:05):

We're doing math. Now we've got three categories to go, but remember, this is the least of the three. Some people get so worked up about some of these ones and it's not as big of a deal. So I want to make sure that the weighted aspect of your credit score, it's important to keep in mind. 15% of your credit score, it's determined by your length of credit history. Probablemente este sea el punto más fácil de entender. Cuanto más tiempo puedas demostrar un uso responsable de crédito, mejor será tu calificación. So pretty simple. A person who has responsibly managed her credit for say seven years will have a higher credit score than an individual who has responsibly managed her credit for two years. All else being equal.

(16:49):

En cuanto al historial, es importante usar nuestras cuentas de crédito. A lot of people are like, "I've got this account but I never use it. Is that helping?" The answer is no. You need to show a history of paying on time. So just having a credit card or access to a loan but never using the lines of credit, it won't build a history. Para establecer un buen historial hay que pedir dinero prestado y devolverlo de forma responsable.

Bright Dickson (17:11):

So with a credit card, it would be better for me to spend a hundred dollars on it every month and pay that off rather than just not use it.

Brian Ford (17:21):

Si quieres generar crédito. If your credit score's cool, well then you're probably good. You can just maintain it with your other lines of credit, maybe like an auto loan or your mortgage or what have you. Pero si estás tratando de generar crédito, sí, lo mejor es usar la tarjeta de crédito o esa línea de crédito. Hey, well look Bright. Me parece que tu perro se está emocionando con las puntuaciones de crédito, no estoy seguro de qué fue eso. No, most likely-

Bright Dickson (17:45):

A él le encantan las finanzas personales.

Brian Ford (17:46):

Yes, I like your dog already. Bien, sigamos entonces. So we've got two sections left to go. 10% of your credit score, it's determined by what's called credit mix. Aquí ayuda tener una combinación de tarjetas de crédito, cuentas minoristas, préstamos a plazos y una hipoteca. But you don't need to worry, you don't have to have each one of them. De hecho, no es bueno tener demasiadas líneas de crédito en una categoría. Evita tener más de un par de tarjetas de crédito, uno o dos préstamos para automóvil, uno o dos de cualquier tipo de préstamo, pero una combinación sí ayuda. Again, it's only 10% of your score. Having a mix looks good. And then the last section Bright, this again is only 10% and it's really a category called new credit.

(18:31):

Tenemos que tener cuidado de no abrir demasiadas líneas de crédito en poco tiempo. So for example, opening up three or four lines of credit within a short period, a month or so may lower your score. So when starting out, it's best to open up lines of credit slowly over time as needed, kind of that natural flow of what someone might need looks good. Repito, si recién estás empezando, podrías elegir hacerlo con una tarjeta de crédito con garantía en efectivo. El banco te da una cantidad muy pequeña para gastar con la tarjeta de crédito. They know it's backed because you've got the money in the bank. Después de seis meses a un año, la calificación se empieza a generar. Quizás sea necesario sacar un préstamo estudiantil razonable. A year later, you may get a small and manageable auto loan and so on.

(19:12):

Esto es algo pequeño, pero la idea es evitar que varios prestamistas verifiquen la puntuación de crédito en un corto período. So if you're applying for multiple loans with many different lenders and your credit score has been checked, say nine or 10 times in a couple of weeks. This may lower your score. Dicho esto, verificar la calificación propia cada seis o 12 meses no tendrá un impacto negativo en ella. Esa es una de las ideas equivocadas que tiene la gente, que si verificamos nuestra propia calificación haremos que baje. That is not true. You should be checking your own credit score at least once a month. We talked about possibly every six months.

Bright Dickson (19:49):

So just on the reg, make it a part of your routine. Te tengo una pregunta, Brian, 10% corresponde a nuevo crédito. If I maybe close a credit card, pay it off. We're at zero balance. Si cierro una tarjeta de crédito, ¿esto me perjudicará?

Brian Ford (20:03):

It could. It's one of those that I don't talk a lot about because it gets more attention than I think it deserves. It's a very small portion, but it can affect the credit mix and it can affect your debt ratios. And so there's no doubt closing a line of credit or canceling a credit card could lower your score for a time. The reason I don't bring this up is because it's crazy. No quiero que la gente tome malas decisiones financieras simplemente porque esto hará que la puntuación de crédito baje o suba. Tomen buenas decisiones financieras y tengan presente que al hacerlo su calificación simplemente estará bien. So what I mean is I've seen so many people know that they need to close out a certain line of credit.

(20:45):

Maybe it's a credit card, maybe they have too many. And they're like, "Ah, I know myself I don't need three," or "I don't need these store charge cards. Solo necesito una o dos tarjetas de crédito". Y tomaron esa decisión basándose en el hecho de que tienen demasiado acceso a crédito y que se están endeudando mucho. Entonces toman la buena decisión financiera de cerrarla. Y después leen algún blog donde dicen: "Si cierras esta línea de crédito, tu calificación bajará". And then they don't do it based on that as opposed to just making good financial decisions. So it is true, I won't say that it's not, but it'll only drop a little bit and most likely over time it's going to go right back up. So if it's the right thing to do, do it. I wouldn't worry too much about the score itself, so good question though.

Bright Dickson (21:28):

So I might take a tiny hit, but in the long run it's a better choice.

Brian Ford (21:33):

I think so. I think so.

Bright Dickson (21:36):

Cool. That's a lot of information. Brian, I might have to process on that for a sec.

Brian Ford (21:42):

Quizás hasta regreses y escuches tu propio podcast. I don't know. Who knows? That's crazy.

Bright Dickson (21:48):

I only listen to this podcast. What else would I listen to? I'm just kidding.

Brian Ford (21:53):

I know. Look, I think we could go into... Your last question was a good one. Hay muchos pequeños matices que podrían distraernos, pero quiero que volvamos. Let's remember, in its simplest form, we need to have some history and that takes some time. So be patient. But beyond that, the two main areas that will really help are, one, always pay your bills on time. Y dos, no tener demasiada deuda de consumo. Those two things you'll usually be in pretty good shape.

Bright Dickson (22:22):

Es bueno saberlo.

Brian Ford (22:24):

Look, dog's excited. We covered kind of the nuts and bolts of the money side of our credit score. Así que en nuestra última sección, Bright, me encantaría que abordes el lado de la actitud en esta cuestión. Bright, how can our listeners stay optimistic if their score is not so hot and they've got some work to do raising their credit score?

Bright Dickson (22:56):

I mean, Brian, you referenced this before, but I think this goes back to the control thing. So this is yet another good example of how beneficial it is to, number one, understand your reality, right? The score is what the score is, the number is what it is right now, and then take action on what you can control. So there's some survey information out there that says 60% of Americans are stressed about debt, and we know that when we think about stress, a great way to relieve that stress is to focus on what you can control and take action on that. A mentor of mine used to say the antidote to anxiety is action. Y gran parte del tiempo pienso que es cierto.

(23:43):

And in the end, if you want to relieve the situation and get yourself in a better situation that doesn't cause the stress. You have to address the situation. No se puede evitar la realidad. Así que hay que lanzarse, aceptarla y determinar qué podemos controlar. Lo otro es crear hábitos que puedan ayudarnos a conseguir ese control. And when I was saying Brian, exactly, when do I need to set the reminder? For me, the reminder is having it on the calendar that ensures that I'm actually going to do something because for whatever reason, whatever is on my calendar, I do it. Y ese es un hábito que me ayuda a obtener más control.

(24:24):

I know that we've talked about automation a lot, and it seems to me that with some diligence and close attention, we can use automation and better habits. Not to change the past because we can't do that, but to move forward in a more sustainable and confident direction. Y una cosita sobre las deudas. Debt basically is a numerical representation of decisions that we've made in the past, right? And the number doesn't-

Brian Ford (24:55):

For a non-finance person, that was pretty rad.

Bright Dickson (25:02):

Good. Thank you.

Brian Ford (25:02):

That was a pretty cool definition. Good stuff.

Bright Dickson (25:05):

Y quiero que quede claro que las cifras no necesariamente reflejan la experiencia y todo lo que pensabas cuanto tomaste esas decisiones. Hay muchos motivos por los que la gente se endeuda. Some are really rational when you look at it. That I had to do that thing, I had to make that decision then, and I made that decision knowing it could cost me in the future, but that was the right decision at the moment. Hay muchísimas cosas que influyen. And for our listeners, what's important is that you go back and figure out what got you there and why, including emotions. So with debt, a lot of the emotions that come up when people are in debt is anxiety, guilt, shame, maybe some embarrassment, maybe some anger, all that stuff.

(25:58):

Y probablemente haya emociones que nos llevaron a endeudarnos en primer lugar. Hay que pensar en eso. Go back and kind of look, even go through your statement on your credit card and be like, "All right, what space was I in when I bought that or I made that decision?" Be kind and gentle and understanding with yourself around that, but do that work because there's probably really good information in there that you can use to change your behavior in the future and make that plan of action. So if you identify, for example, "In a lot of those things, I bought that thing because I was feeling shame about this situation or I wanted to avoid feeling shame about some kind of situation. Así que la compré para no sentirlo".

(26:47):

Just know that. That needs to be part of your calculus because it's not going to change just because you kind of decide to is going to change because you do that work, right? Brian, ¿qué agregarías allí? And it's like getting emotions in here, it gets a little murky, but I think it's important.

Brian Ford (27:05):

Absolutely. Look, we're emotional beings. I mean, goodness sakes, I am pretty logical, but I've come to terms with the fact that I make a lot of decisions with emotions. Hay un par de cosas que mencionaste. One is kind of going back, I hadn't ever thought of that. All right, I've made some financial mistakes. I've made some decisions, maybe purchased something. And going back and thinking about where my head space was, why did I make that decision? No correspondía a lo que quería en la vida y a lo que me parece más importante. Why did I do that? And I like the idea that just doing that gives me kind of a, "I get it now and I'm better prepared to not make that mistake again."

(27:45):

Which is cool. That's the first thing. But I also like how you said, be gentle with yourself. This isn't an exercise so that you can have bad self-talk and kind of reprimand yourself. I agree. Be gentle. It's amazing that the things we say to ourselves in our own minds, and we would never say that to somebody or a child. So I think being gentle while still going back and being for real, this is where I'm at. Es muy bueno. Gracias por eso. And to continue that conversation, I want to mention that yes, our credit score is an important tool for our financial life, but it's not the only metric that's important. No podemos poner demasiado énfasis en solo nuestra puntuación de crédito.

(28:30):

Some of us may mistakenly confuse our credit score for financial wellbeing. No son lo mismo. Your credit score is simply one area of your financial life, and we want to be mindful of it. We want to manage it, we want to improve that. So again, we're in control, and not to go into too much detail, but probably your overall net worth, that might be a little better overall measure of financial wellbeing and not mistaking kind of credit score as that metric. I wouldn't want anyone to think like, "Yo, I've got a great credit score, so I'm able to buy this expensive big home. No problem at all." That's not what your credit score's saying. It doesn't carry quite that much weight.

Bright Dickson (29:13):

Brian, and on the flip side, listeners who are currently experiencing a lower credit score shouldn't be discouraged from going after those big money goals too, right? That the habits that get you a higher credit score, those are also the habits that are going to help increase your financial wellbeing over time and in the long run.

Brian Ford (29:35):

Absolutely. Let's work towards raising our score, but realize it's certainly not everything when it comes to measuring financial wellbeing. Bueno, Bright, ¿qué más tenemos que tener presente a medida que mejoramos nuestra puntuación de crédito sin dejar de ser amables con nosotros mismos?

Bright Dickson (29:52):

I think the other thing is raising your credit score can take some time. It's not going to be instantaneous. You're going to have to work at it. So get ready to cultivate that endurance. Credit scores are something we manage for our entire adult lives, and you've got to have that long-term mindset, and that's how we grow. So first, awareness, second, attention, and then third, effort. So you can do it. All you need is a little awareness, attention and effort, and keep going forward.

Brian Ford (30:27):

Look, this is going to take some time. Having said that, I'm amazed with our credit score kind of on the other side of things. I'm surprised that when we understand, and I've seen this with lots of folks who their score's not where they want it to be, and when they start to understand really the rules of how their credit score is derived and they start to follow those rules, their score will start to improve almost immediately and it'll start going in the right direction. So keep that in mind as well. Empiecen a tomar buenas decisiones y vean cómo su calificación empieza a subir de nivel más rápido de lo que pensaban.

Bright Dickson (31:01):

Thanks for listening to this episode of Money and Mindset with Bright and Brian.

Brian Ford (31:05):

If you like this episode, subscribe to the podcast on the platform of your choice or send it to someone you care about.

Bright Dickson (31:12):

And don't miss our next episode of Money and Mindset when we'll talk about how to raise financially responsible children. ¿Cuáles son las lecciones principales a enseñarles? Should you give them an allowance? And how much? Brian and I are going to answer these questions and more. Nos vemos pronto.