Credit and interest rates are two things we truly need to understand to pursue financial independence. They are two bricks in your foundation. We live in a capitalist society and this means we can use other people’s money to either our benefit or detriment.
Shane Heizer, one of our team members at Carson Wealth joins us today to speak about the world of credit. How does it work? How can we use it to our benefit? Are we thinking of interest rates wrong?
Banks make money by lending money. A lot of people can use this borrowed money to help their situations. Credit can save you a lot of money or end up costing you a lot if you are not careful.
Shane discusses what impacts your credit score including hard hits and soft hits. He also goes over effective ways to boost your score whether through credit cards, installment loans, or mortgages. Usually, a good mix of the three is preferable.
Lastly, we cover interest rates. When it comes to interest rates a lot of people get hung up on the percentage. Shane explains that it’s important to think critically about interest. If you are paying a loan off quickly you may be restricting your current cash flow and hurting your overall financial plan. It’s best to discuss your strategy with an advisor.
You’ll want to ask yourself if you are giving up control. Think about the overall volume of what you are paying and how that impacts you. Debt is not always bad, but liabilities can be.
Make sure to check out our debt efficiency score PDF to see how quickly you should be paying off debt: W2W Debt Efficiency
TIMESTAMPS
1:10 – Welcome Shane Heizer
3:26 – Why is credit important?
6:38 – Credit score
7:31 – What affects a credit report?
10:33 – Cash in a bank
14:22 – Soft pull
15:50 – Interest rate efficiency
20:12 – Refinancing
21:58 – Debt liability
23:28 – Debt efficiency score
RESOURCES
About our guest:
https://www.carsonwealth.com/team-members/shane-heizer/
More Episodes: https://www.theway2wealth.com/
More About Scott Ford: https://www.carsonwealth.com/team-members/scott-ford/
Subscribe to our YouTube Channel: https://bit.ly/354Pd2M
Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. 19833 Leitersburg Pike, Suite 1 Hagerstown, MD 21742. Guests are not affiliated with Cetera Advisors Networks LLC, or CWM, LLC. Opinions expressed by the presenter may not be representative of Cetera Advisors Networks LLC, or CWM, LLC.
