Learn Your Credit Score
Step four is gonna run your credit report. Um, I think people do this a lot more today. Especially again like if you use mint dot com there, show you your credit score for free. If you guys all seen that you haven't seen that use mint dot com or actually have toe, you have toe click into the buttons to get your credit score. They don't just pop it up for you actually have to want it, but they don't charge you for up. But that's you're entitled to your own freecreditscore. Every year from the credit bureaus, an annual credit report dot com, you need to understand what's in the report. Ah, the three bureaus or Equifax, Experian, Trans Union. It is remarkable. You would expect that all three bureaus would always have the exact same information. And you guys were looking at me like I know and they don't which is just first of all, aggravating his help. But that's how you catch mistakes. So I've gone through situations where Equifax has got it right. Experience got it right. And all sudden ...
Trans Union doesn't have something right. And then you gotta go fix it, so find your FICO score. So fight goes sort of like, you know, the leading credit score that everybody uses its fair Isaac. The whole key to the credit score is the interest rate, right? Because this is an older chart. But just this example, like in this example here. If you had 17 62 18 50 credit score, he registration 3. Well, that means that monthly payment here is up. $1390 not 3000 or mortgage. You know, low credit score. You might still get the mortgage, but you're 1,673,000. Here's the key, guys. The difference between good credit bad credit in this person is $100,000 in interest payments. One, the reasons support the middle class. Stay poor middle class is their interest rate. What is in your FICO score? Use the fund. These the primary this is this is right off a fair Isaacs website. These are things that make up your fight. Go score. 35% of it is payment history. Pay your bills on time. Your score's going up. How much money do? 0 30% of it. 15% is the length of credit history. 10% is new credit. 10% is a type of credit used. I used to teach people long time ago to close the old accounts that you weren't using. Now, I don't teach that because things have changed. This is why financial education never ends. Because now, because of this category, you got to keep those cards open and just not use them because they longer you had These certainly. Is this these loans and credit card access, then the better your credit score is. Pay your mortgage off faster. I think these are some of the most important tips I'm gonna give right now. I say right now, Meaning like when I think it debt, your biggest debt is gonna be your mortgage. How many of you have mortgages right now? Okay, quite a few of you mortgage debt. First, I just want to show you the difference between a 15 year and 30 year mortgage. Inherently, we know this, but the difference in a 15 year motion of 30 year mortgages hasta nominal in terms of interest rates, interest rates and payment plans. So on a 15 year mortgage, we have a $300, example. Here, there's a little bit someone holds lag time showing 6% but the Morris payments $2532 30 year more, just $1799. Check out the interest payments. The difference in interest payments on a 15 year mortgage versus a 30 year mortgage. It's the same house. My experience is the people who pay their homes off early on average, retire 5 to 10 years. So I go back to my days being a financial planner, working on Morgan Stanley. The clients retired in their fifties, late fifties or early sixties. Almost always. It's because their home was paid off, had done a nice job saving, but they also had no depth. So I want to give you another way to do this. Do you use in a second? I'm gonna come back to this? Uh, I'll say you need to want to have a debt free goal that free day. So if you're working on debt, actually, coming up with this is the date I want to be out of credit card debt. This is the data. Want to be on student loans That's what my woman mortgage paid off is what I want. My rental property paid off having that somewhere right in front of you. Because when you talk about financial golden and I'm not talking, make him specific, immeasurable, unachievable your debt. Freedom Day is a great goal tohave.