October 12, 2025 • 7 mins
In this episode, credit specialist Shonda Martin shares invaluable insights into the world of credit and its impact on relationships, loans, and employment. The discussion delves into the pitfalls of co-signing for loans, the nuances of credit consolidation, and the steps individuals with bad credit can take to improve their credit scores. Shonda dispels myths and offers practical advice on building credit, leveraging credit cards, and strategically managing credit utilization to boost credit scores. Discover how to navigate the intricacies of credit and forge pathways toward financial empowerment and healthier relationships. #CreditScore #FinancialEmpowerment #Relationships #CreditConsolidation #BuildingCredit #EYLMedium #EYL #ShondaMartin
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
This is the other part because we talk about the
things that credit can affect, right, obviously your score, but
it could affect loans and sometimes employment. But it also
could affect relationships. This is important, right because you said
you need to have maybe three to four items on
your credit report, and some people when they're in relationships.
We've seen I'm going to get a car, I didn't
(00:21):
get approved. Can you co sign?
Speaker 2 (00:23):
I love this? Well, yeah, asking a good question. This
is this is why.
Speaker 1 (00:27):
Yeah, we've been known to do so talk about that.
I mean, yes, co signing could be less.
Speaker 2 (00:36):
So one of the things that I do in my
day to day is I'm a credit specialist specializing in
mortgage scoring. Right, so I deal with a lot of
people who can't see the clos on their home, who
need a few more points to get obtain a home loan. Now,
this is one of the things that I see so much,
and we need to change it. So when it comes
(00:56):
to married couple spouses, make sure that the accounts are
evenly distributed, right, So make sure make sure that one
spouse does not have all of the is not the
primary account holder account owner of all of the accounts,
and then the other spouse usually like to stay at home.
Spouse is just co signed on all of the accounts.
(01:18):
There is something within the Credit Card Act of two
thousand and nine that says on every credit card application,
legally you can use what's called household income. So if
you're a spouse, if you have a spouse that maybe
does not make a lot of money or you know,
stays at home, as opposed to them just being a
co signer an authorized user on all of spouse's one accounts,
they can apply using the income. They can apply using
(01:41):
their spouse's income. So make sure that they still have
credit cards, home loan or not home loans, but loans
and installments in their name as owner. Because when you
only have co signed accounts authorized user accounts, then you're
never going to unleash your true borring power because it's
based on someone else, regardless of who it is. So
make sure, yes, I'm glad you asked that question, because
(02:04):
that man that having so often like, it'll just it'll
be one person has great credit and then one person
has subpart credit because they don't have any they haven't
built any credit.
Speaker 1 (02:14):
And that's if you're married, Yeah, your specific boyfriend, then
you broke up.
Speaker 3 (02:19):
Good luck.
Speaker 2 (02:20):
Oh well, yeah, to speak on that co signing, No, no, no, no,
I won't co sign. I'm not going sign for nobody
because that affects you.
Speaker 3 (02:28):
Like, if you co.
Speaker 2 (02:29):
Sign for someone and you can have amazing credit, if
they choose to not pay it or you know, run
up your card, you are responsible for that when it
comes to co signing. When it comes to authorized users,
authorized users, they don't have any legal binding to that account,
so they can run it up, they can spend every
dollar and it still is going to be your fault
(02:51):
when you co sign for someone that if that account
goes derogatory, it's going to affect both persons credit report.
Speaker 3 (02:58):
You can't do nothing about it.
Speaker 4 (03:00):
So what about credit consolidation? Is that always the most
beneficial way to kind of manage multiple.
Speaker 2 (03:07):
No, it's not that chips away at your credit age drastically.
So now it like when it comes to like student
loans and things of that nature, sometimes that it's worth it, right,
But when it comes to just consolidating your everyday credit cards,
I don't always recommend it, unless like you're just trying
(03:27):
to prevent bankruptcy or something like major like that.
Speaker 3 (03:29):
But consolidation. I'm not the biggest fan of.
Speaker 2 (03:33):
Just because it doesn't really aid to you improving your
borring power.
Speaker 4 (03:38):
So if people will have bad credit and they're trying
to improve their credit, what's the steps to actually go
from you know, having issues bad credit to having better credit.
Speaker 2 (03:49):
Yes, the good thing about having bad credit is you
have a lot of points that you can obtain. Like,
the lower your credit score is, the more points you
can grab. Right, So, my favorite thing when helping some
one with their credit is when they do have a
low credit score, because it's so easy to get those points.
You just have to understand that obtaining those points will
not come from just repairing your credit or disputing your
(04:11):
credit record. It's going to come from building credit. That
is where the points are released from. Right, So, making
sure if you have bad credit, if you have collections,
charge offs, whatever, there is no nothing that will help
you other than building credit. Making sure that you have
those those four accounts to credit cards, to installments, one
(04:31):
short term, one long term. Making sure you do not
pay off that installment early, the short term installment specifically
because you want to build credit.
Speaker 3 (04:40):
Right. Also, if you are if you do have collections,
challenging those.
Speaker 2 (04:45):
Right, if they get removed, great, but if they if
they do not get removed, you still can have good
credit with collections because the older a collection gets, the
less impact that it has on your score. The more
credit that you've established since the collection will help you
sort of undo bad credit.
Speaker 3 (05:03):
Right. I think I had. It was one account that
I could not.
Speaker 2 (05:07):
Get removed, and again that did not stop me from
getting credit cards or buying a home and things of
that nature because I had established credit that spoke to
my financial habits, my current financial habits more than those
old collections.
Speaker 3 (05:22):
Right.
Speaker 2 (05:23):
But yeah, so making sure you have your building credit,
that's what people. People will say, I have bad credit,
so I'm just not going to touch my credit for
seven years. It's the worst thing you can do, because
that's seven years of wasted time where you can build credit.
Speaker 3 (05:35):
You can come back from collections.
Speaker 2 (05:37):
I've never I've never, and I have helped thousands, I've
looked at thousands of credit reports. I have never seen
a credit report that is irreparable. Ever, and I didn't
seen three hundred credit scores. That's the you know, that's
the lowest credit card you can get, the lowest score
that I've seen fycal score was a three to eleven
The lords right, No, it was so the lowest score
(05:57):
you can get a three hundred three the lowest, or
you can get three hundred the highest you can get
this a fifty. I've seen a three eleven credit scored.
People think that because they have bad credit, they know
they're just doomed.
Speaker 3 (06:08):
For the next seven years. It's not true.
Speaker 2 (06:10):
Build credit and you will get credit points when you
add your credit card.
Speaker 3 (06:14):
And the first month, the first month that you get
a credit card.
Speaker 2 (06:19):
Please, everybody who's watching this, if this is your first
credit card, do not allow that first month to be
wasted on reporting a zero dollar utilization because a lot
of people get their credit cards and they're scared to
use it, so they'll just like whatever, like keep it
in their pocket or keep it in their wallet.
Speaker 3 (06:34):
When you activate that card, you.
Speaker 2 (06:36):
Typically are going to be mid cycle, depending on how
long your bank took to mail it to you. Go
get some gas, go buy some chips, go do something
so that you have at least one to three percent
reporting that first time. The reason why it's important the
first time is because when your credit card hits your
credit report for the first time you open yourself up
to utilization, because if you don't have any credit cards,
(06:58):
you're not getting a single point out of of the
one hundred and sixty five points.
Speaker 3 (07:01):
That are that are allotted for you credit utilization.
Speaker 2 (07:04):
So when you first get your credit card, make sure
that you report a very small, a very small balance.
So the second that that credit card hits your credit report,
which is usually like sixty days after you get it,
you'll see you'll see you should see a large increase
in your credit score.
This is the other part because we talk about the
things that credit can affect, right, obviously your score, but
it could affect loans and sometimes employment. But it also
could affect relationships. This is important, right because you said
you need to have maybe three to four items on
your credit report, and some people when they're in relationships.
We've seen I'm going to get a car, I didn't
(00:21):
get approved. Can you co sign?
Speaker 2 (00:23):
I love this? Well, yeah, asking a good question. This
is this is why.
Speaker 1 (00:27):
Yeah, we've been known to do so talk about that.
I mean, yes, co signing could be less.
Speaker 2 (00:36):
So one of the things that I do in my
day to day is I'm a credit specialist specializing in
mortgage scoring. Right, so I deal with a lot of
people who can't see the clos on their home, who
need a few more points to get obtain a home loan. Now,
this is one of the things that I see so much,
and we need to change it. So when it comes
(00:56):
to married couple spouses, make sure that the accounts are
evenly distributed, right, So make sure make sure that one
spouse does not have all of the is not the
primary account holder account owner of all of the accounts,
and then the other spouse usually like to stay at home.
Spouse is just co signed on all of the accounts.
(01:18):
There is something within the Credit Card Act of two
thousand and nine that says on every credit card application,
legally you can use what's called household income. So if
you're a spouse, if you have a spouse that maybe
does not make a lot of money or you know,
stays at home, as opposed to them just being a
co signer an authorized user on all of spouse's one accounts,
they can apply using the income. They can apply using
(01:41):
their spouse's income. So make sure that they still have
credit cards, home loan or not home loans, but loans
and installments in their name as owner. Because when you
only have co signed accounts authorized user accounts, then you're
never going to unleash your true borring power because it's
based on someone else, regardless of who it is. So
make sure, yes, I'm glad you asked that question, because
(02:04):
that man that having so often like, it'll just it'll
be one person has great credit and then one person
has subpart credit because they don't have any they haven't
built any credit.
Speaker 1 (02:14):
And that's if you're married, Yeah, your specific boyfriend, then
you broke up.
Speaker 3 (02:19):
Good luck.
Speaker 2 (02:20):
Oh well, yeah, to speak on that co signing, No, no, no, no,
I won't co sign. I'm not going sign for nobody
because that affects you.
Speaker 3 (02:28):
Like, if you co.
Speaker 2 (02:29):
Sign for someone and you can have amazing credit, if
they choose to not pay it or you know, run
up your card, you are responsible for that when it
comes to co signing. When it comes to authorized users,
authorized users, they don't have any legal binding to that account,
so they can run it up, they can spend every
dollar and it still is going to be your fault
(02:51):
when you co sign for someone that if that account
goes derogatory, it's going to affect both persons credit report.
Speaker 3 (02:58):
You can't do nothing about it.
Speaker 4 (03:00):
So what about credit consolidation? Is that always the most
beneficial way to kind of manage multiple.
Speaker 2 (03:07):
No, it's not that chips away at your credit age drastically.
So now it like when it comes to like student
loans and things of that nature, sometimes that it's worth it, right,
But when it comes to just consolidating your everyday credit cards,
I don't always recommend it, unless like you're just trying
(03:27):
to prevent bankruptcy or something like major like that.
Speaker 3 (03:29):
But consolidation. I'm not the biggest fan of.
Speaker 2 (03:33):
Just because it doesn't really aid to you improving your
borring power.
Speaker 4 (03:38):
So if people will have bad credit and they're trying
to improve their credit, what's the steps to actually go
from you know, having issues bad credit to having better credit.
Speaker 2 (03:49):
Yes, the good thing about having bad credit is you
have a lot of points that you can obtain. Like,
the lower your credit score is, the more points you
can grab. Right, So, my favorite thing when helping some
one with their credit is when they do have a
low credit score, because it's so easy to get those points.
You just have to understand that obtaining those points will
not come from just repairing your credit or disputing your
(04:11):
credit record. It's going to come from building credit. That
is where the points are released from. Right, So, making
sure if you have bad credit, if you have collections,
charge offs, whatever, there is no nothing that will help
you other than building credit. Making sure that you have
those those four accounts to credit cards, to installments, one
(04:31):
short term, one long term. Making sure you do not
pay off that installment early, the short term installment specifically
because you want to build credit.
Speaker 3 (04:40):
Right. Also, if you are if you do have collections,
challenging those.
Speaker 2 (04:45):
Right, if they get removed, great, but if they if
they do not get removed, you still can have good
credit with collections because the older a collection gets, the
less impact that it has on your score. The more
credit that you've established since the collection will help you
sort of undo bad credit.
Speaker 3 (05:03):
Right. I think I had. It was one account that
I could not.
Speaker 2 (05:07):
Get removed, and again that did not stop me from
getting credit cards or buying a home and things of
that nature because I had established credit that spoke to
my financial habits, my current financial habits more than those
old collections.
Speaker 3 (05:22):
Right.
Speaker 2 (05:23):
But yeah, so making sure you have your building credit,
that's what people. People will say, I have bad credit,
so I'm just not going to touch my credit for
seven years. It's the worst thing you can do, because
that's seven years of wasted time where you can build credit.
Speaker 3 (05:35):
You can come back from collections.
Speaker 2 (05:37):
I've never I've never, and I have helped thousands, I've
looked at thousands of credit reports. I have never seen
a credit report that is irreparable. Ever, and I didn't
seen three hundred credit scores. That's the you know, that's
the lowest credit card you can get, the lowest score
that I've seen fycal score was a three to eleven
The lords right, No, it was so the lowest score
(05:57):
you can get a three hundred three the lowest, or
you can get three hundred the highest you can get
this a fifty. I've seen a three eleven credit scored.
People think that because they have bad credit, they know
they're just doomed.
Speaker 3 (06:08):
For the next seven years. It's not true.
Speaker 2 (06:10):
Build credit and you will get credit points when you
add your credit card.
Speaker 3 (06:14):
And the first month, the first month that you get
a credit card.
Speaker 2 (06:19):
Please, everybody who's watching this, if this is your first
credit card, do not allow that first month to be
wasted on reporting a zero dollar utilization because a lot
of people get their credit cards and they're scared to
use it, so they'll just like whatever, like keep it
in their pocket or keep it in their wallet.
Speaker 3 (06:34):
When you activate that card, you.
Speaker 2 (06:36):
Typically are going to be mid cycle, depending on how
long your bank took to mail it to you. Go
get some gas, go buy some chips, go do something
so that you have at least one to three percent
reporting that first time. The reason why it's important the
first time is because when your credit card hits your
credit report for the first time you open yourself up
to utilization, because if you don't have any credit cards,
(06:58):
you're not getting a single point out of of the
one hundred and sixty five points.
Speaker 3 (07:01):
That are that are allotted for you credit utilization.
Speaker 2 (07:04):
So when you first get your credit card, make sure
that you report a very small, a very small balance.
So the second that that credit card hits your credit report,
which is usually like sixty days after you get it,
you'll see you'll see you should see a large increase
in your credit score.
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