January 19, 2024 • 25 mins
Unlock the secrets to a thriving financial future with SVP Marketing Kelli Green, who joins us with her 16 years of finance acumen to navigate the complexities of credit health. Get ready to understand how your credit score shapes your economic opportunities and learn the ins and outs of installment debts versus revolving credit. We'll guide you through the importance of payment history and the subtle yet significant ways new credit lines can influence your score. If you've ever been puzzled by the financial decisions that pave the path to prosperity, this conversation is the key to clarifying those mysteries.
Embark on a journey with us that transcends the basics of credit card usage, delving into effective debt management strategies and the power of paying above the minimum. Discover how consolidating credit lines can streamline your finances and potentially lift your credit score. Our dialogue with Kelli Green doesn't just end with tips and tricks; it's an eye-opener to the harsh realities of a low credit score and the strategic moves one can make in the face of financial adversity. From fostering bank relationships for favorable credit terms to leveraging expert financial counseling, we're handing you the roadmap to not just survive, but thrive in the world of credit and overall financial well-being.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Emma Banes (00:00):
Welcome to another episode of the Live Better
podcast sponsored by CentricFederal Credit Union.
I'm Emma Baines, your host andsocial media coordinator at
Centric.
Today, we're shifting our focusto a topic that holds the key
to new worries financialopportunities, mastering credit
health.
In a world where financialdecisions are influenced by
credit scores, understanding thenuances of credit health is
(00:22):
crucial.
Join us on this episode as weunravel the mysteries of credit
scores, explore ways to buildand maintain good credit and
provide you with practicalstrategies for mastering your
credit health.
Whether you're a seasonedlistener or joining us for the
first time, get ready to diveinto the essential conversation
around credit health.
Let's explore how you canempower yourself with the
(00:43):
knowledge to navigate the worldof credit successfully.
So I want to welcome all of ourlisteners to another episode of
the Live Better podcast, andtoday we are joined by Kelli
Green, who is a credit experthere at Centric.
So before we get started, canyou tell our listeners just a
little bit about yourself andwhat you do here?
Yeah, well, thank you.
Kelli Green (01:02):
I appreciate you having me here.
It's fun coming back on thepodcast because we talk about
all kinds of things that arereally beneficial to helping
members genuinely live better.
And so I have been at Centric,been in finance probably for
about 16 years at Centric almost12 years and I'm a mom of two.
(01:22):
I have a husband let's see whatelse is fun.
I like to camp.
I also love to ensure learningabout all these things from a
credit health standpoint,because my journey was not as
pretty as it looks.
Even today.
It's still a journey, but I'vewalked through some really dark
times financially, you know, andif I would have had this, I
feel like these tips and, youknow, just some guidance right,
(01:45):
would have looked a little bitdifferent.
Emma Banes (01:46):
Yeah, I agree.
So credit is a big topic and,like you said, you know you went
through some dark timesfinancially I think we all
probably have and especially youknow at a young age, when
you're freshly married and youkind of don't want to clue what
you're doing.
That's exactly right, and thelast thing that you know a lot
about is credit.
(02:07):
Like, what is that?
I didn't learn that in school.
I mean, everything I've learnedit's kind of just been on my
own as time has gone on, and soI think equipping people with
this knowledge at a young age isso important to help them avoid
the mistakes that we made.
Kelli Green (02:21):
You're so right and the sooner the better.
Yeah, I think you just, inanything that we do, from, like,
grocery shopping to paying, youknow your utilities.
Any conversations that you canhave with your kids do that you
know, even if it's they're doingdifferent tours at home and so
you pay them a dollar you know,Well, you just reward them in a
ticket, you know, and at the endof the week you'll get ice-free
(02:42):
or something.
Whatever it is is just showingthem so they can understand.
Hey, you know, this is whatthis amount costs, this is what
you know.
You make an hour having youstretch that out and then just
having the overall conversations.
That is that's critical.
You can never start too soon.
Emma Banes (02:59):
Right, and I mean just looking for, like teaching
moment with your kids.
Like it might just you're justgoing through the motions with
your bills and paying for things, but like there's always a time
where you could stop and makeit a teaching moment.
That's right.
Like you know, yeah, we couldspend this on this today, but in
three days this bill is due.
That's right.
So if we do that, you know itmight put us in a band in a few
(03:19):
days.
So I mean just you know talkingabout those things so they kind
of understand what it's like topay bills, but anyway.
So let's just talk about creditscore.
What does it mean?
Kelli Green (03:30):
Well, you'll hear a lot of people that will talk
about credit and why is thatimportant?
And to pay cash for all thethings.
You may hear differentscenarios, and I believe in a
lot of those things, as far aspaying for cash.
But the debt is not necessarilya bad thing, right, it's really
not.
It's all contingent upon howwell you manage that with the
(03:50):
money that you have coming inversus your overall necessities.
I don't know about you, but itwould be challenging for me to
go buy a brand new vehicle andjust pay cash for that.
But there are ways that you canwork up towards that, and so
what does that really look like?
And so that's really where yourcredit score comes into play,
because we never know whatfuture need that we're going to
(04:11):
have.
And really and truly, yourcredit score is just talking
about your overall financialjourney.
It's how well what yourbehavior is with money and with,
like just the overall capacitythat you've been given.
For example, your credit scoreis made up of a couple of things
installment and revolving.
Installment debt is really likea mortgage or a car note,
(04:34):
because there's a fixed amountthat's due at the same time
throughout the month.
Your revolving is more so yourcredit cards where you have a
particular capacity, yourbalance on your credit card and
that kind of fluctuates.
So you have a large sum whenyou first open that credit card
but then, as you start spendingwell, then that balance what's
available to you that startsdwindling down, and so your
(04:58):
credit score really and truly ishow well you are paying your
bills, are you paying them infull and are you paying them on
time.
Well, I said, those are thethings that are most important
when really thinking about yourcredit score.
Interesting enough, when we'rehaving conversations and going
through credit reports withfolks, a lot of things I try to
explain to them is you want tosee your history, the length of
(05:22):
time you packed something openand how well you've managed that
particular amount.
So something I always sharewith folks is if you are, you
know, say, you're opening upseveral new lines of credit,
that's going to cause yourcredit score to drop, even if
you're paying your debt off.
I would not recommend closingthem immediately because it's
(05:43):
going to have a negative impactto your score.
So what I mean by that is, ifyou are paying off, say, three
or four credit cards, closethose relationships out anywhere
between 30 and 45 days inbetween the other because you're
not doing such a shock, and allto your credit score, right,
and so even when it spikes up,or even if it shoots really low
(06:03):
because when it shoots reallylow it takes a little bit longer
to increase it but somethingpeople don't realize is that
your credit score can dropalmost 100 points if you have 30
days of no pay, or late paylate pay, so to speak.
So it's really interesting.
You know it's time is somethingyou really want to pay close
attention to you.
In the regard of the length oftime you've had a card open.
(06:24):
So I still have the card, thevery first credit card that I
had whenever I was in college,very first one I ever opened,
and I still have it.
I hardly ever use it, which isnot I won't say that's the best
practice of doing it, because Ijust have a lump sum that's
writing out there, but thatstill tells a you know the
creditor that I have thepotential to go into that amount
(06:46):
of debt.
So you have to keep that, youknow, in mind.
My suggestion is it really justall goes down to the individual
when they're.
What is their relationship withmoney?
Are you a compulsive shopper?
Do you utilize credit cards toget very the month?
(07:07):
Is this the way that you arereally trying to bloat yourself?
You know, essentially, I thinkthat's a dead end road.
Right, I'm heading intodisaster.
So those are some things tothink about Now.
Are you looking at, say, hey,you've got a credit card and
you're in this time frame, rightnow we're having double rewards
(07:28):
points Usually we do that acouple of times throughout the
year at Centric but are you justtrying to put everything on
your credit card just toaccumulate those points, to use
those for later on throughoutthe year, or even now for
Christmas, and you have fullintentions of paying off that
debt at the end of the month?
That just goes back to theperson.
And what is your cash flow likethroughout the month?
(07:51):
So, really, truly, your creditscore tells a lot about your
behavior, your relationship withmoney.
Right, right.
Emma Banes (08:00):
But this is the way I kind of look at it.
You tell me if I'm wrong.
So I kind of think of creditscore as like a grade in a class
.
I mean your grade in, say, yourmath class is going to tell
anybody who looks at it for themost part how well you know that
subject, and I mean this iskind of the same thing.
So I guess your credit scorecould be more like what is your
(08:24):
mindset with money, like yousaid?
Are you using it to get throughthe month and pay your bills or
are you using it more as a toolto give you advantages for
things in the future?
Kelli Green (08:35):
And it's just, it's very interesting.
Especially with inflation and Iknow that we actually talked
about that a few months ago Irealized that the cost of things
has increased dramatically, andso I do understand that.
But that's when you really needto think about.
Okay, hopefully, inflation,things will kind of start
leveling out a little bit.
(08:55):
But what are you doing so thatyou're not continuing to create
a future problem for you andyour family?
You accumulate a lot of creditcard debt that's going to strap
you for the future.
So, yes, it might feel good togo get that compulsive buy here,
you know, right around theholidays, or even back to school
shopping, or, you know, goingon a vacation, but if you plan
for those kind of things, itreally won't bother you.
(09:17):
Some that always share withfolks is if you're using your
credit card and say you're going, you know, oh well, I don't
have a whole lot of money, I'mjust trying to get through the
last couple of weeks of themonth, or one how many, you know
and you go in and you say, hey,I'm going to use this.
I'm eating lunch every week orwe're going out to dinner.
This will be a little splurgeIf you're not intending on
paying that off at the end ofthe month.
(09:38):
Think about that.
That meal just sustained youfor how long?
Probably a few hours, right?
Right, I'm hungry.
That export us six hours, yeah,but you're going to be paying
on that debt and you tie oninterest, Right, Neil?
That was $50 for your family offour.
You tag on you know an interestrates on credit cards or
anywhere from God.
You know, the lowest ones I'veseen are here at Centric right,
(09:59):
and so they start, you know,anywhere between 11, 12, 13%,
and I've seen them all the wayup to 30 and 40%.
That's outrageous, yeah, soit's.
That's the thing I always sharewith people.
You know, your credit score issomething that is so incredibly
important.
Everything you do, the way youspend your money, the way, um,
whether you're saving or you'repaying off quickly, even if you
(10:20):
can't I would say you can't payoff a full debt make a payment.
Do you have something there?
You know?
But, um, but it's just, it's soincredibly important for us to
make sure you know that you'remaking those timely payments.
And just think about, like, isthis a real necessity, Is this
something you absolutely need?
And you've made a plan to paythat off at the end of the month
, or you have a plan to paysomething.
(10:41):
Right, you know that's, that'ssomething that you always
encourage folks, because notpaying at all really, you know,
hurts your credit score but,when you can pay something that
doesn't hurt it as badly as itcertainly could if you just
avoid the payment, all the day,right.
Emma Banes (10:56):
So let's talk about so.
Let's say, once you have tankedyour credit score, what does
that mean for you in the future?
Like, how does that tie yourhands?
What are you not able to doonce your score, you know,
reaches?
Kelli Green (11:10):
below a certain point.
Well, so this is reallyinteresting.
We actually work, we prideourselves on at Cendric, really
helping members who areincredibly credit challenged.
Some people think thatbankruptcy is the only answer,
and it's genuinely not the onlyanswer.
We believe in relationshiplending at Cendric and while,
for example, if we say, hey,you've got a goal of wanting to
(11:31):
get you a car, okay, and you say, okay, I want this particular
type of car, well, do you haveany cash that you might want to
put down on that vehicle?
Okay, so those are some thingsto think about.
So you're looking at.
That is a commitment, not onlyfor me.
That's your cash, you put onthat vehicle and we will come
halfway and see what we can dofor you, you know, as far as
(11:52):
helping you achieve where you'rewanting to be with that.
And he um, that does two thingsreally and truly.
One, it shows us that you'rereally bawled in right, you have
skin in the game.
You're with people talkingabout that.
Um, the other side of that, too, is the more you're able to put
down, the less you're having tofinance, which means you're
going to pay less for thatparticular vehicle.
So one of the things you knowthat I really try to share with
(12:13):
folks, too, is just when they'rethinking about this from credit
and really managing you knowyour, your credit score.
There are ways to reallyenhance your score and, like I
said, it depends on why yourscore is that way.
Is it because you have openedup multiple, you know new lines
of credit and you've max out allthose credit lines?
(12:33):
Um, or do you have credit linesthat you have opened and maybe
you know you just have a balanceon there and it's just been
lingering for a period of timeand you're just paying kind of
what you can?
It just, it all depends forfolks, you know.
But something that I wouldshare is you know, one of the
things you can do that wouldjust like flip it upside down
one call.
(12:54):
The creditors always stay incommunication with the UO.
Just always do that when theycan reach you and you can reach
them, it's a really nicerelationship.
Contact them and say, listen,I'm going to bond, can we get in
a payment plan?
Because we talked about thatrevolving and installment that
perhaps you know if you've got.
If you don't have a really goodmix of both installment and
(13:15):
revolving installment or thosespeak statements the revolving
is that credit line where itkind of looks white.
So I would say, maybe take alook at that.
You sit down and the credit,the credit officer and they will
actually take a look at it hereat Centric and say, okay, maybe
you have a whole lot ofrevolving, a lot of credit cards
.
Perhaps we can consolidate thatdesk right and put that into an
(13:36):
installment.
So then you're getting a goodmix of credit.
Just keep in mind, if you'reclosing out those scores right,
when you're closing out thosecards or lines of credit, in a
short period of time your scoreis going to be shocked but
you're going to trend upward andthat's what you want to see
happen.
There's just so many differentthings that can happen there.
(13:56):
If you don't have a mortgage, alot of times, if you want to
ever really reach your 800s,it's kind of challenging to do
that.
I would also say, too just bemindful, is this debt yours or
are you a co-borrower withsomeone else?
That's where we see a lot ofour folks really get into a bond
(14:17):
, a financial bond with theiroverall financial trajectories,
because they've decided, hey, Iwant to co-sign on this vehicle,
or I'll have someone as anauthorized signer on my line of
credit, and there's not a lot ofcontrol that you have in that,
right.
Emma Banes (14:31):
I mean you're completely dependent on how the
other person handles that atthat point.
So I mean there's got to be alot of trust there.
Kelli Green (14:37):
It does, it really does.
So you just have to think aboutit.
There's several differentsituations.
Are you on the brink ofbankruptcy because you've
extended yourself, overextendedyourself and every line of
credit you have is completelymaxed out?
That's a conversation to havewith the creditor, and I would
definitely take a look at seeingif you can consolidate that
(14:57):
particular debt when you havethe relationship where your
direct deposit is going andpeople us here at the credit
union can really see how you'remanaging your money throughout
that month.
That's critical because we'reable to see okay, we know what
you're making, we know whatyou're bringing home and how are
you managing that, because notonly whenever we're counseling
(15:18):
you on what we can do from along side, we're building a
budget for you.
Okay, can I really afford thisnew loan?
Or this is the financialsituation that I'm in Can't get
a new loan right now, but wemight be able to remove a few
things for a short period oftime so that you can start
putting funds towards payingdown your debt.
It's going to look a lot better.
(15:40):
I've told this story somethingtimes ago, when my husband and I
got debt free.
We were first married and wehad our first little girl and we
just had a mound of debt.
We had a vehicle One was paidoff, but one we actually still
owed money on and we had twocredit cards and a student loan.
So we had right at probably$15,000 in debt.
(16:01):
Well, to some people it doesseem like a whole lot.
We had a mortgage at the timetoo, but what I'm talking about
is let's look at this debt thatwe can probably tackle.
I won't necessarily say this isyour highest interest rate.
I don't really look at it inthat regard.
We genuinely here at Cedricfollow very similar to what Dave
Ramsey has to offer, as opposedto the snowball method is just
(16:22):
what he has.
We want you to get to the pointwhere you can pay cash for a
car, but we do realize that thatis not necessarily.
It's not realistic foreverybody.
When reference to Dave Ramsey,I wouldn't have to definitely
say that.
But what we actually did is thatwe just started tappin' our
debt from smallest to largestand we just cut out everything.
We cut out any extra dining out, we took our watch to work, we
(16:47):
ate at home all the time, wedidn't have cable, we didn't
have internet at our house, youknow, I mean we just did a whole
lot of different things.
That sacrificed we did, but itwas for a very short period of
time and it was right, at about14 months, that we were able to
pay off that debt.
We did not take on anypromotions.
We did not take on any of thedebts.
We did add a child to ourincome.
(17:09):
So we had two babies within thesummer frame, and one of which
was very, very sick.
So we accumulated a lot ofmedical debt for her.
So it's a lot of things for usto really manage and how do we
work for that?
We were still able to do that,you know now.
You know you work back up tothat.
We sold off a vehicle.
You know we pay cash for avehicle but we got, you know,
(17:29):
just one to get us from point Ato point B.
Right, didn't have air.
You know there's an AC.
We just kind of bare bones it.
But I would never, I wouldnever trade that time for
anything, because it's somethingthat really made us realize
what can we achieve in life withdoing without?
And it's freeing really andtrying to do that and it makes
(17:51):
you realize it's just like thisis a waste.
But you know everybody hastheir own thoughts and so forth,
but the majority of the timewhen I sit down on top of people
, you know.
As far as the other credit andhow, our ways in which they can
really improve it, it's ourday-to-day spending.
Emma Banes (18:05):
And I mean, I think that's why it's so important to
utilize the free financialcounseling that we have here,
because sometimes all it takesis just a fresh set of eyes on
the money, but you know whenit's yours and it's in and out
of your account all throughoutthe month.
Sometimes you just need a freshperspective to say do you
really need to do this four orfive times a week, like you know
(18:28):
?
Kelli Green (18:30):
And it makes really and truly I mean talking about
finances too and especially ifyou're looking at it, like you
just said, in Medan and Day Out,you know, and every month you
know, oh my God, Then you startgetting disgruntled.
Righties are now you make itdisgruntled about your job or
your relationships with people,you know, I mean, and it starts
impacting all the things in yourmental health and your
well-being and it's like it'sjust not worth it.
(18:51):
No, it's genuinely not.
And, like you mentioned, it'sfree to talk to us.
It's completely free.
So if you can't come to one ofour locations, you know we
always say, hey, we'll do it viaZoom for the.
We can do that via, via banking, through, you know,
MyCentricConnect, you name it,and there's just even over the
phone and we can, you know,securely email you your credit
(19:13):
score if you want to see whatthat looks like.
You get a free copy of yourcredit report.
We give you a free copy of abudget.
I mean, you name it.
It's why not do that Right?
Emma Banes (19:24):
I mean, the tools are available.
Oh yeah, right here it's great,and your tips.
One thing I did want to talkabout, so the different types of
credit accounts.
So we've talked about likemortgages and car notes and
things like that, and thencredit cards Are there, one that
affects your score more thanthe others do I mean.
Kelli Green (19:43):
So, like we mentioned earlier, as far as the
mortgage, you know, having thaton your, on your credit report,
that's a wonderful way for you.
If you're paying in full rightand on time right, those are
ways in which you can reallyachieve like what folks refer to
as like a perfect score, so tospeak.
I will say this there is notone product or other necessarily
(20:04):
that is better or best, justgenuinely the relationship you
have.
It's the length of time thatyou've had those accounts open,
right, Give it a little bit oflife.
You know, that's what I alwaysshare with folks.
The other side of it too is,you know, as far as paying on
time.
So that's why I mentioned themabout earlier.
(20:25):
As far as the length of timethat something's open, I still
have my off very first creditfor it.
I have kept that open becausethat is when I first established
credit.
So my credit is dated back towhen you have that very first
line of credit, whether that beinstallment or revolving debt,
but that is when you establishedcredit.
So I've kept that open.
The length of time, obviously,and also to the time in which
(20:47):
you're paying.
So if you're a late pay or nopay, that's going to impact your
score drastically.
So while talking about, it'sreally the relationship, right,
and the behavior, and I mean, ifyou're a late pay, no pay, it's
going to cost you, true,because you're going to pay more
.
So say, for example, in my, youand I are buying the same
vehicle right, it was Dax andcar or house, even you know,
(21:11):
whatever, depending on what, ifyou have better credit than I do
, you're going to come outbetter.
I'm going to pay more for that.
You're going to name house.
Same way with utilities.
A lot of folks who know reallystruggle where they're getting
started, you know, say, hey,they're having to move, they're
not prepared to pay differentdeposits and so forth.
If you know of a lower creditscore, you're going to have to
(21:32):
pay.
You know a higher deposit Ifyou have a very high credit
score and a positive overallcredit rating, you may not have
to pay a deposit at all, right,so you know those are some
things.
A lot of times I mean, you know, there it could be the
difference between yes and a noof getting you know whether
that's at new loan or what thatlooks like.
Remember here, et cetera, whenwe're talking about these things
(21:53):
we don't want to give you ahard.
No, we want to explain the why,and if you still have this
desire, then let's get you there.
Emma Banes (21:59):
Right, let's, but we might have to take a couple
extra steps along the way.
That's right.
The segway, right.
Yeah, that's awesome, I mean,and people appreciate that too,
I think when you have afinancial institution who's not
just, it's not a hard no, right,like no.
I'm sorry, you know, try later,try again later.
It's not right now, but I canhelp you get to where you need
(22:21):
to be so we can make it a yes,that's right.
Kelli Green (22:24):
It's important, it is very important and that's why
I always say you know, that'swhy I want to make anywhere else
, because if I come across, youknow we haven't.
If we have financial hardshipor something like that, I want
my funds to be here.
I want them to know therelationship that I have with my
money and then, if I need to beextended credit, I just feel
confident that they will walk methrough a year and what it is
(22:44):
that I need to do.
Right, and not only that.
I mean you're going to pay yourlowest credit score or even the
lowest credit rating here asfar as the firm interest rate,
and then if you have funds thatyou can say, bring me in every
single month, we pay you just tohave your check it account here
.
You'd then buy like the highestearnings and then also the
lowest amount that you're goingto pay back.
It's just a no brainer to me, Iagree for sure Before we wrap
(23:10):
up.
Emma Banes (23:10):
is there anything else you want to add?
Is there anything that wedidn't talk about, that you
wanted to kind of mention.
Kelli Green (23:15):
No, I just really want to reiterate the importance
of having a conversation withfolks about this.
I mean, it is literally one ofthe best decisions that you
could ever make is when you justsay, hey, I need to hit reset
and right now is the perfecttime to do that.
You just kind of start thinkingabout what are your overall
goals, what does your reallyoverall debt look like and how
(23:38):
do you move to the next step?
You may not have a goal.
You may not have a financialgoal.
Talk was one of our creditcounselors.
They'll help you do that andit's free.
You can talk to somebody eitherby phone or even in person from
eight to six every single day.
You want to schedule anappointment to do that?
Virtually, we can also do that.
Our Live Better program issomething that we work with our
(23:59):
small employers.
Where we actually go, we have ateam of folks that goes into
local employers and we hostdifferent workshops and a gift
that we offer to them is one onone with their employees to
discuss budgeting and just do anoverall financial help chat.
And I highly advise that youcan reach out to us online.
I know there's so muchinformation to it in our show
(24:21):
notes that you'll be able toshare, but please reach out to
us and just let us know how wecan help.
Talking through these kind ofthings is the best gift you can
give yourself.
So thank you, emma, for havingme.
Emma Banes (24:31):
Well, thank you for coming on and, yeah, really,
really good topic.
That wraps up another episodeof the Live Better podcast
focusing on mastering credithelp.
We hope you've gained valuableinsights to navigate and improve
your financial wellbeing.
Remember your credit.
Health is key and Centric ishere to support you on this
journey.
If you found this episodehelpful, please subscribe, share
(24:53):
and leave a review.
Your feedback shapes contentthat directly addresses your
financial needs.
Keep the conversation going onsocial media.
Connect with us on Facebook, atCentric FCU and on all other
platforms at MyCentric.
Stay updated on the latestinsights and resources tailored
to help you master your credithealth.
Centric is your dedicatedcompanion on your financial
(25:14):
journey.
Thanks for being part of theLive Better podcast community.
Until next time, take care andprioritize your financial
wellbeing.
Welcome to another episode of the Live Better
podcast sponsored by CentricFederal Credit Union.
I'm Emma Baines, your host andsocial media coordinator at
Centric.
Today, we're shifting our focusto a topic that holds the key
to new worries financialopportunities, mastering credit
health.
In a world where financialdecisions are influenced by
credit scores, understanding thenuances of credit health is
(00:22):
crucial.
Join us on this episode as weunravel the mysteries of credit
scores, explore ways to buildand maintain good credit and
provide you with practicalstrategies for mastering your
credit health.
Whether you're a seasonedlistener or joining us for the
first time, get ready to diveinto the essential conversation
around credit health.
Let's explore how you canempower yourself with the
(00:43):
knowledge to navigate the worldof credit successfully.
So I want to welcome all of ourlisteners to another episode of
the Live Better podcast, andtoday we are joined by Kelli
Green, who is a credit experthere at Centric.
So before we get started, canyou tell our listeners just a
little bit about yourself andwhat you do here?
Yeah, well, thank you.
Kelli Green (01:02):
I appreciate you having me here.
It's fun coming back on thepodcast because we talk about
all kinds of things that arereally beneficial to helping
members genuinely live better.
And so I have been at Centric,been in finance probably for
about 16 years at Centric almost12 years and I'm a mom of two.
(01:22):
I have a husband let's see whatelse is fun.
I like to camp.
I also love to ensure learningabout all these things from a
credit health standpoint,because my journey was not as
pretty as it looks.
Even today.
It's still a journey, but I'vewalked through some really dark
times financially, you know, andif I would have had this, I
feel like these tips and, youknow, just some guidance right,
(01:45):
would have looked a little bitdifferent.
Emma Banes (01:46):
Yeah, I agree.
So credit is a big topic and,like you said, you know you went
through some dark timesfinancially I think we all
probably have and especially youknow at a young age, when
you're freshly married and youkind of don't want to clue what
you're doing.
That's exactly right, and thelast thing that you know a lot
about is credit.
(02:07):
Like, what is that?
I didn't learn that in school.
I mean, everything I've learnedit's kind of just been on my
own as time has gone on, and soI think equipping people with
this knowledge at a young age isso important to help them avoid
the mistakes that we made.
Kelli Green (02:21):
You're so right and the sooner the better.
Yeah, I think you just, inanything that we do, from, like,
grocery shopping to paying, youknow your utilities.
Any conversations that you canhave with your kids do that you
know, even if it's they're doingdifferent tours at home and so
you pay them a dollar you know,Well, you just reward them in a
ticket, you know, and at the endof the week you'll get ice-free
(02:42):
or something.
Whatever it is is just showingthem so they can understand.
Hey, you know, this is whatthis amount costs, this is what
you know.
You make an hour having youstretch that out and then just
having the overall conversations.
That is that's critical.
You can never start too soon.
Emma Banes (02:59):
Right, and I mean just looking for, like teaching
moment with your kids.
Like it might just you're justgoing through the motions with
your bills and paying for things, but like there's always a time
where you could stop and makeit a teaching moment.
That's right.
Like you know, yeah, we couldspend this on this today, but in
three days this bill is due.
That's right.
So if we do that, you know itmight put us in a band in a few
(03:19):
days.
So I mean just you know talkingabout those things so they kind
of understand what it's like topay bills, but anyway.
So let's just talk about creditscore.
What does it mean?
Kelli Green (03:30):
Well, you'll hear a lot of people that will talk
about credit and why is thatimportant?
And to pay cash for all thethings.
You may hear differentscenarios, and I believe in a
lot of those things, as far aspaying for cash.
But the debt is not necessarilya bad thing, right, it's really
not.
It's all contingent upon howwell you manage that with the
(03:50):
money that you have coming inversus your overall necessities.
I don't know about you, but itwould be challenging for me to
go buy a brand new vehicle andjust pay cash for that.
But there are ways that you canwork up towards that, and so
what does that really look like?
And so that's really where yourcredit score comes into play,
because we never know whatfuture need that we're going to
(04:11):
have.
And really and truly, yourcredit score is just talking
about your overall financialjourney.
It's how well what yourbehavior is with money and with,
like just the overall capacitythat you've been given.
For example, your credit scoreis made up of a couple of things
installment and revolving.
Installment debt is really likea mortgage or a car note,
(04:34):
because there's a fixed amountthat's due at the same time
throughout the month.
Your revolving is more so yourcredit cards where you have a
particular capacity, yourbalance on your credit card and
that kind of fluctuates.
So you have a large sum whenyou first open that credit card
but then, as you start spendingwell, then that balance what's
available to you that startsdwindling down, and so your
(04:58):
credit score really and truly ishow well you are paying your
bills, are you paying them infull and are you paying them on
time.
Well, I said, those are thethings that are most important
when really thinking about yourcredit score.
Interesting enough, when we'rehaving conversations and going
through credit reports withfolks, a lot of things I try to
explain to them is you want tosee your history, the length of
(05:22):
time you packed something openand how well you've managed that
particular amount.
So something I always sharewith folks is if you are, you
know, say, you're opening upseveral new lines of credit,
that's going to cause yourcredit score to drop, even if
you're paying your debt off.
I would not recommend closingthem immediately because it's
(05:43):
going to have a negative impactto your score.
So what I mean by that is, ifyou are paying off, say, three
or four credit cards, closethose relationships out anywhere
between 30 and 45 days inbetween the other because you're
not doing such a shock, and allto your credit score, right,
and so even when it spikes up,or even if it shoots really low
(06:03):
because when it shoots reallylow it takes a little bit longer
to increase it but somethingpeople don't realize is that
your credit score can dropalmost 100 points if you have 30
days of no pay, or late paylate pay, so to speak.
So it's really interesting.
You know it's time is somethingyou really want to pay close
attention to you.
In the regard of the length oftime you've had a card open.
(06:24):
So I still have the card, thevery first credit card that I
had whenever I was in college,very first one I ever opened,
and I still have it.
I hardly ever use it, which isnot I won't say that's the best
practice of doing it, because Ijust have a lump sum that's
writing out there, but thatstill tells a you know the
creditor that I have thepotential to go into that amount
(06:46):
of debt.
So you have to keep that, youknow, in mind.
My suggestion is it really justall goes down to the individual
when they're.
What is their relationship withmoney?
Are you a compulsive shopper?
Do you utilize credit cards toget very the month?
(07:07):
Is this the way that you arereally trying to bloat yourself?
You know, essentially, I thinkthat's a dead end road.
Right, I'm heading intodisaster.
So those are some things tothink about Now.
Are you looking at, say, hey,you've got a credit card and
you're in this time frame, rightnow we're having double rewards
(07:28):
points Usually we do that acouple of times throughout the
year at Centric but are you justtrying to put everything on
your credit card just toaccumulate those points, to use
those for later on throughoutthe year, or even now for
Christmas, and you have fullintentions of paying off that
debt at the end of the month?
That just goes back to theperson.
And what is your cash flow likethroughout the month?
(07:51):
So, really, truly, your creditscore tells a lot about your
behavior, your relationship withmoney.
Right, right.
Emma Banes (08:00):
But this is the way I kind of look at it.
You tell me if I'm wrong.
So I kind of think of creditscore as like a grade in a class
.
I mean your grade in, say, yourmath class is going to tell
anybody who looks at it for themost part how well you know that
subject, and I mean this iskind of the same thing.
So I guess your credit scorecould be more like what is your
(08:24):
mindset with money, like yousaid?
Are you using it to get throughthe month and pay your bills or
are you using it more as a toolto give you advantages for
things in the future?
Kelli Green (08:35):
And it's just, it's very interesting.
Especially with inflation and Iknow that we actually talked
about that a few months ago Irealized that the cost of things
has increased dramatically, andso I do understand that.
But that's when you really needto think about.
Okay, hopefully, inflation,things will kind of start
leveling out a little bit.
(08:55):
But what are you doing so thatyou're not continuing to create
a future problem for you andyour family?
You accumulate a lot of creditcard debt that's going to strap
you for the future.
So, yes, it might feel good togo get that compulsive buy here,
you know, right around theholidays, or even back to school
shopping, or, you know, goingon a vacation, but if you plan
for those kind of things, itreally won't bother you.
(09:17):
Some that always share withfolks is if you're using your
credit card and say you're going, you know, oh well, I don't
have a whole lot of money, I'mjust trying to get through the
last couple of weeks of themonth, or one how many, you know
and you go in and you say, hey,I'm going to use this.
I'm eating lunch every week orwe're going out to dinner.
This will be a little splurgeIf you're not intending on
paying that off at the end ofthe month.
(09:38):
Think about that.
That meal just sustained youfor how long?
Probably a few hours, right?
Right, I'm hungry.
That export us six hours, yeah,but you're going to be paying
on that debt and you tie oninterest, Right, Neil?
That was $50 for your family offour.
You tag on you know an interestrates on credit cards or
anywhere from God.
You know, the lowest ones I'veseen are here at Centric right,
(09:59):
and so they start, you know,anywhere between 11, 12, 13%,
and I've seen them all the wayup to 30 and 40%.
That's outrageous, yeah, soit's.
That's the thing I always sharewith people.
You know, your credit score issomething that is so incredibly
important.
Everything you do, the way youspend your money, the way, um,
whether you're saving or you'repaying off quickly, even if you
(10:20):
can't I would say you can't payoff a full debt make a payment.
Do you have something there?
You know?
But, um, but it's just, it's soincredibly important for us to
make sure you know that you'remaking those timely payments.
And just think about, like, isthis a real necessity, Is this
something you absolutely need?
And you've made a plan to paythat off at the end of the month
, or you have a plan to paysomething.
(10:41):
Right, you know that's, that'ssomething that you always
encourage folks, because notpaying at all really, you know,
hurts your credit score but,when you can pay something that
doesn't hurt it as badly as itcertainly could if you just
avoid the payment, all the day,right.
Emma Banes (10:56):
So let's talk about so.
Let's say, once you have tankedyour credit score, what does
that mean for you in the future?
Like, how does that tie yourhands?
What are you not able to doonce your score, you know,
reaches?
Kelli Green (11:10):
below a certain point.
Well, so this is reallyinteresting.
We actually work, we prideourselves on at Cendric, really
helping members who areincredibly credit challenged.
Some people think thatbankruptcy is the only answer,
and it's genuinely not the onlyanswer.
We believe in relationshiplending at Cendric and while,
for example, if we say, hey,you've got a goal of wanting to
(11:31):
get you a car, okay, and you say, okay, I want this particular
type of car, well, do you haveany cash that you might want to
put down on that vehicle?
Okay, so those are some thingsto think about.
So you're looking at.
That is a commitment, not onlyfor me.
That's your cash, you put onthat vehicle and we will come
halfway and see what we can dofor you, you know, as far as
(11:52):
helping you achieve where you'rewanting to be with that.
And he um, that does two thingsreally and truly.
One, it shows us that you'rereally bawled in right, you have
skin in the game.
You're with people talkingabout that.
Um, the other side of that, too, is the more you're able to put
down, the less you're having tofinance, which means you're
going to pay less for thatparticular vehicle.
So one of the things you knowthat I really try to share with
(12:13):
folks, too, is just when they'rethinking about this from credit
and really managing you knowyour, your credit score.
There are ways to reallyenhance your score and, like I
said, it depends on why yourscore is that way.
Is it because you have openedup multiple, you know new lines
of credit and you've max out allthose credit lines?
(12:33):
Um, or do you have credit linesthat you have opened and maybe
you know you just have a balanceon there and it's just been
lingering for a period of timeand you're just paying kind of
what you can?
It just, it all depends forfolks, you know.
But something that I wouldshare is you know, one of the
things you can do that wouldjust like flip it upside down
one call.
(12:54):
The creditors always stay incommunication with the UO.
Just always do that when theycan reach you and you can reach
them, it's a really nicerelationship.
Contact them and say, listen,I'm going to bond, can we get in
a payment plan?
Because we talked about thatrevolving and installment that
perhaps you know if you've got.
If you don't have a really goodmix of both installment and
(13:15):
revolving installment or thosespeak statements the revolving
is that credit line where itkind of looks white.
So I would say, maybe take alook at that.
You sit down and the credit,the credit officer and they will
actually take a look at it hereat Centric and say, okay, maybe
you have a whole lot ofrevolving, a lot of credit cards
.
Perhaps we can consolidate thatdesk right and put that into an
(13:36):
installment.
So then you're getting a goodmix of credit.
Just keep in mind, if you'reclosing out those scores right,
when you're closing out thosecards or lines of credit, in a
short period of time your scoreis going to be shocked but
you're going to trend upward andthat's what you want to see
happen.
There's just so many differentthings that can happen there.
(13:56):
If you don't have a mortgage, alot of times, if you want to
ever really reach your 800s,it's kind of challenging to do
that.
I would also say, too just bemindful, is this debt yours or
are you a co-borrower withsomeone else?
That's where we see a lot ofour folks really get into a bond
(14:17):
, a financial bond with theiroverall financial trajectories,
because they've decided, hey, Iwant to co-sign on this vehicle,
or I'll have someone as anauthorized signer on my line of
credit, and there's not a lot ofcontrol that you have in that,
right.
Emma Banes (14:31):
I mean you're completely dependent on how the
other person handles that atthat point.
So I mean there's got to be alot of trust there.
Kelli Green (14:37):
It does, it really does.
So you just have to think aboutit.
There's several differentsituations.
Are you on the brink ofbankruptcy because you've
extended yourself, overextendedyourself and every line of
credit you have is completelymaxed out?
That's a conversation to havewith the creditor, and I would
definitely take a look at seeingif you can consolidate that
(14:57):
particular debt when you havethe relationship where your
direct deposit is going andpeople us here at the credit
union can really see how you'remanaging your money throughout
that month.
That's critical because we'reable to see okay, we know what
you're making, we know whatyou're bringing home and how are
you managing that, because notonly whenever we're counseling
(15:18):
you on what we can do from along side, we're building a
budget for you.
Okay, can I really afford thisnew loan?
Or this is the financialsituation that I'm in Can't get
a new loan right now, but wemight be able to remove a few
things for a short period oftime so that you can start
putting funds towards payingdown your debt.
It's going to look a lot better.
(15:40):
I've told this story somethingtimes ago, when my husband and I
got debt free.
We were first married and wehad our first little girl and we
just had a mound of debt.
We had a vehicle One was paidoff, but one we actually still
owed money on and we had twocredit cards and a student loan.
So we had right at probably$15,000 in debt.
(16:01):
Well, to some people it doesseem like a whole lot.
We had a mortgage at the timetoo, but what I'm talking about
is let's look at this debt thatwe can probably tackle.
I won't necessarily say this isyour highest interest rate.
I don't really look at it inthat regard.
We genuinely here at Cedricfollow very similar to what Dave
Ramsey has to offer, as opposedto the snowball method is just
(16:22):
what he has.
We want you to get to the pointwhere you can pay cash for a
car, but we do realize that thatis not necessarily.
It's not realistic foreverybody.
When reference to Dave Ramsey,I wouldn't have to definitely
say that.
But what we actually did is thatwe just started tappin' our
debt from smallest to largestand we just cut out everything.
We cut out any extra dining out, we took our watch to work, we
(16:47):
ate at home all the time, wedidn't have cable, we didn't
have internet at our house, youknow, I mean we just did a whole
lot of different things.
That sacrificed we did, but itwas for a very short period of
time and it was right, at about14 months, that we were able to
pay off that debt.
We did not take on anypromotions.
We did not take on any of thedebts.
We did add a child to ourincome.
(17:09):
So we had two babies within thesummer frame, and one of which
was very, very sick.
So we accumulated a lot ofmedical debt for her.
So it's a lot of things for usto really manage and how do we
work for that?
We were still able to do that,you know now.
You know you work back up tothat.
We sold off a vehicle.
You know we pay cash for avehicle but we got, you know,
(17:29):
just one to get us from point Ato point B.
Right, didn't have air.
You know there's an AC.
We just kind of bare bones it.
But I would never, I wouldnever trade that time for
anything, because it's somethingthat really made us realize
what can we achieve in life withdoing without?
And it's freeing really andtrying to do that and it makes
(17:51):
you realize it's just like thisis a waste.
But you know everybody hastheir own thoughts and so forth,
but the majority of the timewhen I sit down on top of people
, you know.
As far as the other credit andhow, our ways in which they can
really improve it, it's ourday-to-day spending.
Emma Banes (18:05):
And I mean, I think that's why it's so important to
utilize the free financialcounseling that we have here,
because sometimes all it takesis just a fresh set of eyes on
the money, but you know whenit's yours and it's in and out
of your account all throughoutthe month.
Sometimes you just need a freshperspective to say do you
really need to do this four orfive times a week, like you know
(18:28):
?
Kelli Green (18:30):
And it makes really and truly I mean talking about
finances too and especially ifyou're looking at it, like you
just said, in Medan and Day Out,you know, and every month you
know, oh my God, Then you startgetting disgruntled.
Righties are now you make itdisgruntled about your job or
your relationships with people,you know, I mean, and it starts
impacting all the things in yourmental health and your
well-being and it's like it'sjust not worth it.
(18:51):
No, it's genuinely not.
And, like you mentioned, it'sfree to talk to us.
It's completely free.
So if you can't come to one ofour locations, you know we
always say, hey, we'll do it viaZoom for the.
We can do that via, via banking, through, you know,
MyCentricConnect, you name it,and there's just even over the
phone and we can, you know,securely email you your credit
(19:13):
score if you want to see whatthat looks like.
You get a free copy of yourcredit report.
We give you a free copy of abudget.
I mean, you name it.
It's why not do that Right?
Emma Banes (19:24):
I mean, the tools are available.
Oh yeah, right here it's great,and your tips.
One thing I did want to talkabout, so the different types of
credit accounts.
So we've talked about likemortgages and car notes and
things like that, and thencredit cards Are there, one that
affects your score more thanthe others do I mean.
Kelli Green (19:43):
So, like we mentioned earlier, as far as the
mortgage, you know, having thaton your, on your credit report,
that's a wonderful way for you.
If you're paying in full rightand on time right, those are
ways in which you can reallyachieve like what folks refer to
as like a perfect score, so tospeak.
I will say this there is notone product or other necessarily
(20:04):
that is better or best, justgenuinely the relationship you
have.
It's the length of time thatyou've had those accounts open,
right, Give it a little bit oflife.
You know, that's what I alwaysshare with folks.
The other side of it too is,you know, as far as paying on
time.
So that's why I mentioned themabout earlier.
(20:25):
As far as the length of timethat something's open, I still
have my off very first creditfor it.
I have kept that open becausethat is when I first established
credit.
So my credit is dated back towhen you have that very first
line of credit, whether that beinstallment or revolving debt,
but that is when you establishedcredit.
So I've kept that open.
The length of time, obviously,and also to the time in which
(20:47):
you're paying.
So if you're a late pay or nopay, that's going to impact your
score drastically.
So while talking about, it'sreally the relationship, right,
and the behavior, and I mean, ifyou're a late pay, no pay, it's
going to cost you, true,because you're going to pay more
.
So say, for example, in my, youand I are buying the same
vehicle right, it was Dax andcar or house, even you know,
(21:11):
whatever, depending on what, ifyou have better credit than I do
, you're going to come outbetter.
I'm going to pay more for that.
You're going to name house.
Same way with utilities.
A lot of folks who know reallystruggle where they're getting
started, you know, say, hey,they're having to move, they're
not prepared to pay differentdeposits and so forth.
If you know of a lower creditscore, you're going to have to
(21:32):
pay.
You know a higher deposit Ifyou have a very high credit
score and a positive overallcredit rating, you may not have
to pay a deposit at all, right,so you know those are some
things.
A lot of times I mean, you know, there it could be the
difference between yes and a noof getting you know whether
that's at new loan or what thatlooks like.
Remember here, et cetera, whenwe're talking about these things
(21:53):
we don't want to give you ahard.
No, we want to explain the why,and if you still have this
desire, then let's get you there.
Emma Banes (21:59):
Right, let's, but we might have to take a couple
extra steps along the way.
That's right.
The segway, right.
Yeah, that's awesome, I mean,and people appreciate that too,
I think when you have afinancial institution who's not
just, it's not a hard no, right,like no.
I'm sorry, you know, try later,try again later.
It's not right now, but I canhelp you get to where you need
(22:21):
to be so we can make it a yes,that's right.
Kelli Green (22:24):
It's important, it is very important and that's why
I always say you know, that'swhy I want to make anywhere else
, because if I come across, youknow we haven't.
If we have financial hardshipor something like that, I want
my funds to be here.
I want them to know therelationship that I have with my
money and then, if I need to beextended credit, I just feel
confident that they will walk methrough a year and what it is
(22:44):
that I need to do.
Right, and not only that.
I mean you're going to pay yourlowest credit score or even the
lowest credit rating here asfar as the firm interest rate,
and then if you have funds thatyou can say, bring me in every
single month, we pay you just tohave your check it account here
.
You'd then buy like the highestearnings and then also the
lowest amount that you're goingto pay back.
It's just a no brainer to me, Iagree for sure Before we wrap
(23:10):
up.
Emma Banes (23:10):
is there anything else you want to add?
Is there anything that wedidn't talk about, that you
wanted to kind of mention.
Kelli Green (23:15):
No, I just really want to reiterate the importance
of having a conversation withfolks about this.
I mean, it is literally one ofthe best decisions that you
could ever make is when you justsay, hey, I need to hit reset
and right now is the perfecttime to do that.
You just kind of start thinkingabout what are your overall
goals, what does your reallyoverall debt look like and how
(23:38):
do you move to the next step?
You may not have a goal.
You may not have a financialgoal.
Talk was one of our creditcounselors.
They'll help you do that andit's free.
You can talk to somebody eitherby phone or even in person from
eight to six every single day.
You want to schedule anappointment to do that?
Virtually, we can also do that.
Our Live Better program issomething that we work with our
(23:59):
small employers.
Where we actually go, we have ateam of folks that goes into
local employers and we hostdifferent workshops and a gift
that we offer to them is one onone with their employees to
discuss budgeting and just do anoverall financial help chat.
And I highly advise that youcan reach out to us online.
I know there's so muchinformation to it in our show
(24:21):
notes that you'll be able toshare, but please reach out to
us and just let us know how wecan help.
Talking through these kind ofthings is the best gift you can
give yourself.
So thank you, emma, for havingme.
Emma Banes (24:31):
Well, thank you for coming on and, yeah, really,
really good topic.
That wraps up another episodeof the Live Better podcast
focusing on mastering credithelp.
We hope you've gained valuableinsights to navigate and improve
your financial wellbeing.
Remember your credit.
Health is key and Centric ishere to support you on this
journey.
If you found this episodehelpful, please subscribe, share
(24:53):
and leave a review.
Your feedback shapes contentthat directly addresses your
financial needs.
Keep the conversation going onsocial media.
Connect with us on Facebook, atCentric FCU and on all other
platforms at MyCentric.
Stay updated on the latestinsights and resources tailored
to help you master your credithealth.
Centric is your dedicatedcompanion on your financial
(25:14):
journey.
Thanks for being part of theLive Better podcast community.
Until next time, take care andprioritize your financial
wellbeing.
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