The Ultimate Guide to Credit: Expert Tips from Credit Ninja Sue Buswell

The Texas Real Estate & Finance Podcast with Mike Mills

In this episode of the Texas Real Estate and Finance Podcast, host Mike Mills and credit expert Sue Buswell discuss the importance of understanding and managing credit. They delve into topics such as teaching children about financial responsibility, the differences in credit scores and how they're calculated, and the significance of credit history. They also discuss the role of credit repair companies and the upcoming changes in credit scoring models for the mortgage industry. The episode concludes with a discussion on the importance of data in the mortgage industry and the responsibility of professionals to educate borrowers on credit management.

Becoming a Credit Ninja [00:02:05]

Sue Buswell shares her journey of becoming a credit expert and her experience in the credit industry.

Starting Credit Education Early [00:05:25]

Sue Buswell and Mike Mills discuss the importance of teaching kids about credit and financial responsibility from a young age.

Using Apps to Teach Financial Responsibility [00:07:32]

Mike Mills talks about an app called Busy Kid that he uses to teach his children about chores, earning money, and managing their finances.

Teaching kids about credit and debt [00:09:16]

Discussion on the importance of teaching kids about credit and debt, and the necessary evil of debt in certain situations.

Getting a credit card for young adults [00:10:41]

Exploration of whether it is advisable to get a credit card for an 18-year-old and how to teach responsible credit management.

Credit monitoring and credit scores [00:13:41]

Explanation of credit monitoring systems, the importance of regularly checking credit reports, and the differences between credit scores used by different industries.

The impact of different credit models [00:19:09]

Explanation of how different credit models can result in different credit scores for the same individual.

Factors that affect credit scores [00:20:14]

Discussion of the factors that contribute to credit scores, including payment history, debt utilization, and length of credit history.

The importance of credit history length [00:21:15]

Explanation of how the length of credit history can significantly impact credit scores and the importance of establishing credit early.

Teaching about credit and financial education [00:28:59]

Discussion on the importance of empowering people with financial knowledge from a young age and the need for better education on credit.

Generational differences in financial education [00:29:44]

Exploring the lack of financial conversations and education in previous generations compared to the progress made in educating younger generations.

Impact of technology on financial education [00:31:50]

The role of technology in providing access to information and educating the next generation on personal finance and credit management.

Timing is crucial [00:39:26]

Importance of timing in credit reporting and how it can affect credit scores.

Credit report dates and balances [00:39:57]

The significance of credit report dates and how balances can impact credit scores.

Disputes and their consequences [00:45:38]

The potential negative impact of disputes on credit reports and the importance of removing them when applying for a mortgage.

Legitimate dispute and credit reporting act [00:49:12]

A coworker's experience with inaccurate credit reporting and the legal action they took to resolve it.

National Foundation for Credit Counseling [00:50:55]

Recommendation to seek assistance from the National Foundation for Credit Counseling for credit repair and financial empowerment.

Changes in medical collections reporting [00:52:08]

Discussion on the changes in reporting medical collections and their impact on credit scores and loan eligibility.

Reducing Debt and Working with Creditors [00:59:00]

The speakers discuss the importance of communicating with creditors to reduce interest rates and lower payments.

Starting the Path to Paying Down Debt [01:00:30]

They discuss the best route to start paying down debt, including starting with the smallest balance and gradually moving on to larger debts.

Establishing and Managing Credit Cards [01:04:43]

The speakers provide advice on the number of credit cards to have, the importance of keeping older cards active, and how credit utilization affects credit scores.

The credit repair agencies [01:08:15]

Discussion about the role and reputation of credit repair agencies and the importance of finding reputable ones.

Changes in credit scoring models [01:11:21]

Explanation of the upcoming changes in credit scoring models, including the transition from tri-merge to bi-merge and the use of different scoring models by different lenders.

Concerns and considerations with the new scoring models [01:14:46]

Discussion about the potential impact of the new scoring models on borrowers, including the possibility of different scores with different lenders and the need for monitoring and ensuring fair treatment for consumers.

Competition Amongst Mortgage Lenders [01:18:19]

Discussion on the importance of data and system for delivering information in the mortgage industry.

The Impact of Credit on Our Lives [01:19:00]

Exploration of how credit reports and scores affect our daily lives and financial decisions.

Upcoming Resources for Real Estate Professionals [01:21:40]

Announcement of plans to create resources for real estate agents and loan officers to easily access and explain credit information to their clients.

Mentions by topic:

Credit Reports and Scores:

AnnualCreditReport.com: 00:13:41, 00:43:23

Free credit monitoring or credit journey: 00:14:12

Credit card on one: 00:14:12

Credit union on the other: 00:14:12

FICO: 00:17:09, 00:19:09, 00:18:22

VantageScore: 00:17:09, 00:21:28, 00:34:14

FICO Eight: 00:19:09

VantageScore 30: 00:21:28

FICO Score: 00:21:28, 00:35:12

MyFICO: 00:22:49

Credit Expert Tools: 00:41:16

Credit report and scoring systems: 00:28:59

Sunosi Score: 01:20:54

Websites and Links:

Mike Mills Mortgage and Finance YouTube Channel

Busy Kid app

AnnualCreditReport.com: 00:43:23

National Foundation for Credit Counseling: 00:50:55, 00:59:37, 01:07:52

National Foundation for Credit Counseling: 00:50:55, 00:59:37, 01:07:52

CFPB website: 01:08:38

CFPB website: 01:08:38

FHFA (Federal Housing Finance Agency): 01:11:03

FHFA website: 01:11:03

Other Mentions:

Dave Ramsey's debt repayment method: 01:01:14

Dave Ramsey's Debt Snowball Explained: 01:01:14

Credit utilization: 01:04:56

Authorized user: 01:06:18

Fair Credit Reporting Act: 00:47:07

NCAP (National Consumer Assistance Plan): 00:54:50

Fin Locker: 00:37:21

TikTok, YouTube, and Spotify: 00:31:50

Credit repair companies: 00:51:30

VantageScore: 00:52:08

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