WEBVTT 1 00:00:00.160 --> 00:00:47.679 Oh bed thatsar. Hello and welcome to the show. This 2 00:00:47.920 --> 00:00:51.320 is the Cult of Conspiracy and I am the Cajun Night, 3 00:00:52.039 --> 00:00:54.399 I'm raven Ly, and today we are going to be 4 00:00:54.479 --> 00:00:57.560 talking a little bit about finance, a little bit about 5 00:00:57.560 --> 00:01:00.719 some math, a little bit about some the background and 6 00:01:00.759 --> 00:01:07.799 the evils behind the credit score, my favorite subject ever. Yeah, yeah, 7 00:01:07.840 --> 00:01:10.040 I know that this might sound a little dry on 8 00:01:10.079 --> 00:01:12.680 the onset to all the good cult members, but I'm 9 00:01:12.680 --> 00:01:14.439 just gonna be honest with you. I didn't know much 10 00:01:14.480 --> 00:01:15.560 about credit scores. 11 00:01:16.000 --> 00:01:18.480 I still I've heard all sorts of wild shit about 12 00:01:18.480 --> 00:01:19.200 credit scores. 13 00:01:19.200 --> 00:01:22.200 I've heard that the really rich people tell you not 14 00:01:22.280 --> 00:01:24.519 to have any credit score, that they just pay for 15 00:01:24.560 --> 00:01:27.120 everything in cash, and like, fuck the credit score, it 16 00:01:27.120 --> 00:01:30.480 doesn't matter. I've heard, you know, make sure, for obviously, 17 00:01:30.519 --> 00:01:32.400 from when I was a kid, make sure your credit 18 00:01:32.480 --> 00:01:34.799 score is like in the seven eight hundreds, which I 19 00:01:34.840 --> 00:01:38.239 did have almost eight hundred at one point in life. 20 00:01:38.239 --> 00:01:42.560 Be life in so two divorces royally fucked my credit score. 21 00:01:42.599 --> 00:01:44.560 At one point in time, I was like a low seven. 22 00:01:44.640 --> 00:01:47.799 I felt good about myself. Divorce happened, it dropped down 23 00:01:47.840 --> 00:01:50.920 to the mid threes, and then you know, I built 24 00:01:50.959 --> 00:01:53.519 it back up to about the high sixes at one 25 00:01:53.560 --> 00:01:56.439 point in time, and then I haven't looked, and to 26 00:01:56.480 --> 00:01:59.359 be completely honest with you, I'm afraid to look right now. 27 00:01:59.400 --> 00:02:01.879 And that's fine. Here's the deal. Like you're saying here, 28 00:02:02.560 --> 00:02:05.480 the rich people don't have credit scores because they buy 29 00:02:05.519 --> 00:02:07.879 things cash. I'm sure there is some sort of a 30 00:02:07.920 --> 00:02:10.439 credit score associated with their name, but they're not worried 31 00:02:10.439 --> 00:02:12.800 about what their score looks like to get approved for 32 00:02:12.879 --> 00:02:16.439 a loan, because, if anything, they'll just use one of 33 00:02:16.439 --> 00:02:19.240 their assets as collateral for a loan if they want it. 34 00:02:19.280 --> 00:02:21.400 And to be honest with you, the ultra elites, that's 35 00:02:21.400 --> 00:02:24.199 all they ever do. They don't actually have. You know, 36 00:02:25.240 --> 00:02:28.080 I saw something recently how California is trying to tax 37 00:02:28.560 --> 00:02:31.879 the wealthiest one percent of like ten percent of their 38 00:02:32.240 --> 00:02:34.199 of their assets right off the rip, like they have 39 00:02:34.240 --> 00:02:36.759 to cut a check. And that's why Elon and a 40 00:02:36.759 --> 00:02:39.280 bunch of other rich people left California because let's say 41 00:02:39.319 --> 00:02:41.960 he's worth one hundred billion, just throwing out a number here, 42 00:02:42.800 --> 00:02:46.520 they act as if he has a billion dollars in 43 00:02:46.560 --> 00:02:49.400 the bank ready to go. That's not how that goes. 44 00:02:49.439 --> 00:02:53.080 It's tied up in assets. It's tied up in percentage 45 00:02:53.080 --> 00:02:56.360 of ownerships of stocks, all shores, accounts, things like this. 46 00:02:56.919 --> 00:02:59.120 And then the other side of that is if just 47 00:02:59.159 --> 00:03:02.039 throwing out that are arbitrary number for the arbitrary guy here. 48 00:03:02.080 --> 00:03:03.719 I know Elon's not worth a hundred billion to hear 49 00:03:03.759 --> 00:03:07.960 me up. If he was to sell percentage of ownership 50 00:03:08.080 --> 00:03:11.520 in Tesla to make that payment, that tanks the stock, 51 00:03:11.599 --> 00:03:14.159 which makes all of his other assets drops, which makes 52 00:03:14.240 --> 00:03:17.800 the amount that he's worth drops. It's psychoticness that what 53 00:03:17.840 --> 00:03:19.479 they're trying to do in California. But neither here nor 54 00:03:19.520 --> 00:03:20.240 there right. 55 00:03:20.520 --> 00:03:24.080 So does the credit score actually matter for people like 56 00:03:24.159 --> 00:03:24.479 you and I? 57 00:03:25.000 --> 00:03:28.319 Yes, for people like the wealthy elite, that's not even 58 00:03:28.360 --> 00:03:30.680 the thing they really consider. That's like, what's the gas 59 00:03:30.759 --> 00:03:33.680 prices right now? They don't give a fuck they have drivers. 60 00:03:34.159 --> 00:03:37.080 I mean, but I've heard like in between people, a 61 00:03:37.120 --> 00:03:39.479 lot of people are like, fuck, credit score, like doesn't 62 00:03:39.479 --> 00:03:42.240 even matter. I'm like, I really feel like it does matter, though. 63 00:03:42.479 --> 00:03:43.919 But it's one of those scenes that they don't really 64 00:03:43.960 --> 00:03:46.719 teach you though, unless your parents teach you. They don't 65 00:03:46.719 --> 00:03:48.560 teach you in high school, which I think that is 66 00:03:48.800 --> 00:03:54.159 absolutely ridiculous. They should teach children about finance's credit cards, taxes. Hell, 67 00:03:54.240 --> 00:03:56.879 I am ridiculously dumb when it comes to taxes. My 68 00:03:56.960 --> 00:03:57.960 mom is the brilliant one. 69 00:03:58.360 --> 00:04:01.520 And it's like, okay, why did nobody even get like 70 00:04:01.599 --> 00:04:03.479 a basic course on this? Right? 71 00:04:03.879 --> 00:04:05.759 And so today we are going to do a little 72 00:04:05.800 --> 00:04:08.039 bit of a deep dive into that course and talk 73 00:04:08.080 --> 00:04:11.039 about how the system is rigged against you through no 74 00:04:11.159 --> 00:04:14.360 fault of your own. Here's the deal, here's the background 75 00:04:14.400 --> 00:04:17.759 to this ravenly debt has been a thing since the 76 00:04:17.839 --> 00:04:22.439 beginning of time. Right, Obviously that's nothing new. But if 77 00:04:22.480 --> 00:04:26.160 you had to guess where did credit scores come from? 78 00:04:26.800 --> 00:04:28.920 Ooh, didn't it come from? 79 00:04:29.279 --> 00:04:33.560 Potentially the crash the almost crash in the market, like 80 00:04:34.319 --> 00:04:36.279 way way back in the day. I'd say in the 81 00:04:37.000 --> 00:04:38.839 early nineteen hundreds, or actually I think it was the 82 00:04:38.879 --> 00:04:41.399 eighteen hundreds, right, they kind of like decided on it 83 00:04:41.519 --> 00:04:43.399 and then they pushed it forward. 84 00:04:43.240 --> 00:04:45.600 In the nineteen hundreds. I might be speaking out my ass. 85 00:04:45.759 --> 00:04:47.480 No, No, to be honest with you, I would have 86 00:04:47.560 --> 00:04:49.519 given just about that kind of an answer before I 87 00:04:49.600 --> 00:04:50.600 did some research on this. 88 00:04:52.199 --> 00:04:55.399 Prepare this is like sixteen hundred's with the Kings and 89 00:04:55.480 --> 00:04:58.120 this is like a debt score, credit score situation. 90 00:04:58.600 --> 00:05:02.319 Raven Ravenlee and all the good cult members. If you 91 00:05:02.439 --> 00:05:06.519 do not know, no, oh my god, no, all right, 92 00:05:06.560 --> 00:05:09.720 do I promise the window. I had no idea where 93 00:05:09.800 --> 00:05:12.240 this came from, and now that I know this, I'm 94 00:05:12.279 --> 00:05:15.079 actually pretty fucking pissed off about it. I'm gonna be honest, 95 00:05:15.120 --> 00:05:16.120 I'm a little hot right now. 96 00:05:17.120 --> 00:05:19.480 If this is something like that just came about in 97 00:05:19.560 --> 00:05:21.439 the last like fifty years, I gonna be livid. 98 00:05:21.759 --> 00:05:24.639 Oh oh, it's so funny that you would use that 99 00:05:24.839 --> 00:05:28.959 specific number. But we're gonna get to it, so all right, Okay. 100 00:05:29.439 --> 00:05:34.560 Background to this, In the mid nineteen fifties, two dudes 101 00:05:35.480 --> 00:05:40.399 named Isaac and Fair decided to start the Fair and 102 00:05:40.600 --> 00:05:47.439 Isaac Company Fico Fight. Oh they are the ones that 103 00:05:47.600 --> 00:05:51.120 decided on an arbitrary number to try to make banking 104 00:05:51.319 --> 00:05:55.800 and loan approval more streamlined, right, because think about how 105 00:05:55.839 --> 00:05:58.920 people had to get loans throughout the course of the 106 00:05:59.319 --> 00:06:02.160 vast majority of human history. It was always about going 107 00:06:02.199 --> 00:06:04.920 to a loan officer, a wealthy financier, or whatever the 108 00:06:05.000 --> 00:06:07.959 case was. But aside, let's just talk about the United States, Okay, 109 00:06:08.040 --> 00:06:10.399 let's talk about in just the United States of America 110 00:06:10.920 --> 00:06:15.439 nineteen forties. You are a family and you want to 111 00:06:15.480 --> 00:06:18.519 get approofd for a loan for some land, a new house, 112 00:06:18.879 --> 00:06:21.279 a business venture, whatever the case would be. You would 113 00:06:21.360 --> 00:06:23.920 go to your local bank or even if it was 114 00:06:23.959 --> 00:06:26.680 a credit union, a national, what doesn't matter. You're going 115 00:06:26.759 --> 00:06:29.480 to the loan house essentially, and you would have to 116 00:06:29.560 --> 00:06:32.120 dress nice. You would have to show all this documentation 117 00:06:32.319 --> 00:06:35.639 to make it worth the bank's time to really approve 118 00:06:35.680 --> 00:06:38.560 you of this loan. But it only came down realistically 119 00:06:38.720 --> 00:06:40.879 to the loan officer to give you the thumbs up 120 00:06:40.920 --> 00:06:43.439 her thumbs down. Now, there were some pros and cons 121 00:06:43.480 --> 00:06:46.879 that came with that right. For instance, the loan officer 122 00:06:47.000 --> 00:06:50.439 who says, well, okay, this person has never been approved 123 00:06:50.439 --> 00:06:53.360 of a loan before, but I went to high school 124 00:06:53.360 --> 00:06:55.439 with his daddy, and I know the people. I know 125 00:06:55.560 --> 00:06:57.480 his family and where he comes from, and I know 126 00:06:58.240 --> 00:07:01.480 that he was taught how to handle his finances properly. 127 00:07:01.560 --> 00:07:03.720 You know what, This might be a large loan, but 128 00:07:03.839 --> 00:07:05.600 I know his people. I'm gonna go ahead and prove 129 00:07:05.680 --> 00:07:10.399 this advertly. Let's say that it was a black family 130 00:07:10.759 --> 00:07:13.879 and we're talking about the nineteen fifties, they're probably gonna 131 00:07:13.920 --> 00:07:18.279 get denied outright. Oh and how about women, right, did 132 00:07:18.360 --> 00:07:20.000 you know that it was illegal for women to get 133 00:07:20.079 --> 00:07:24.160 large loans without their husbands up until the seventies. Yeah, 134 00:07:24.240 --> 00:07:24.959 I'm not shocked. 135 00:07:25.040 --> 00:07:26.560 I'm not surprised, to be honest with you. 136 00:07:27.040 --> 00:07:29.920 Well, when I say that, that sounds a bit misleading. 137 00:07:30.040 --> 00:07:33.959 It was state to state, but more often than not, yes, 138 00:07:34.040 --> 00:07:36.279 you're not gonna have some woman try to do to 139 00:07:36.319 --> 00:07:40.360 guess with states. Honestly, most of New England and most 140 00:07:40.399 --> 00:07:41.480 of the West coast, New. 141 00:07:41.720 --> 00:07:44.319 New England, Oregon, all places. 142 00:07:44.120 --> 00:07:46.600 Oregon, Yeah, most of the West coast. You gotta keep 143 00:07:46.600 --> 00:07:49.800 in mind, like California was not liberal up until like 144 00:07:49.920 --> 00:07:50.480 the eighties. 145 00:07:51.279 --> 00:07:53.920 I was honestly thinking like Midwest. For some reason in 146 00:07:54.000 --> 00:07:56.560 my mind, I was like Midwestern kind of situation. 147 00:07:57.240 --> 00:08:00.600 Most country are most countries, most counties, and those states 148 00:08:01.120 --> 00:08:04.160 had pretty strict laws on that because they didn't want 149 00:08:04.199 --> 00:08:06.600 women walking out on their husbands or doing these types 150 00:08:06.600 --> 00:08:09.160 of things. Because keep in mind, most women didn't work 151 00:08:09.600 --> 00:08:12.399 up until like I mean, yeah, we had the Industrial 152 00:08:12.480 --> 00:08:14.439 Revolution and then World War Two. A lot of women 153 00:08:14.480 --> 00:08:16.480 went to the factories, but you didn't have a lot 154 00:08:16.519 --> 00:08:20.000 of women clocking in to have full time jobs until 155 00:08:20.120 --> 00:08:22.560 the fifties and sixties more often than not, and then 156 00:08:22.560 --> 00:08:25.199 the seventies is when that really became full swing. Women 157 00:08:25.319 --> 00:08:29.399 empowerment was the shit. So up until that point, if 158 00:08:29.439 --> 00:08:32.080 a woman was to take a large loan, her husband 159 00:08:32.080 --> 00:08:34.679 would be on the hook for her loans. So it 160 00:08:34.799 --> 00:08:36.840 was seen as a way to protect this guy's interest 161 00:08:36.879 --> 00:08:39.039 because let's say he has a wife who's a shopaholic. 162 00:08:39.440 --> 00:08:41.960 He's over here working some nine to five job, making 163 00:08:42.039 --> 00:08:44.559 his payments, all the things, but then his wife takes 164 00:08:44.559 --> 00:08:47.559 out a ten thousand dollars loan beknownst to him, with 165 00:08:47.759 --> 00:08:49.720 no way of paying it back. Now he gets a 166 00:08:49.799 --> 00:08:52.240 knock on the door asking where the money's at, and 167 00:08:52.360 --> 00:08:54.440 he knew nothing about it. So, and I'm not saying 168 00:08:54.480 --> 00:08:56.679 that this is justification, because a lot of times these 169 00:08:56.720 --> 00:08:59.480 women were looking for loans to try to better themselves, 170 00:08:59.519 --> 00:09:01.840 better than face whatever the case was. Especially when it 171 00:09:01.879 --> 00:09:04.519 comes to racial discrimination. You would have a black family 172 00:09:04.600 --> 00:09:07.480 that moved to a new town. Maybe they moved from 173 00:09:07.960 --> 00:09:10.799 the Southern States and they moved up north, and they're 174 00:09:10.879 --> 00:09:12.879 just trying to, you know, break out and start their 175 00:09:12.960 --> 00:09:16.159 own thing, put down roots up North. But the problem 176 00:09:16.240 --> 00:09:19.039 is with no loan history, they are left at the 177 00:09:19.679 --> 00:09:23.039 behest of whatever the loan officer feels about them. And 178 00:09:23.120 --> 00:09:27.600 it was basically it was basically vibes based like that 179 00:09:27.759 --> 00:09:29.679 was it if you get a good feel for this person, 180 00:09:29.759 --> 00:09:31.440 or if you don't, and if maybe you have some 181 00:09:31.639 --> 00:09:35.159 racial ideologies to it or some sexist ideologies to it 182 00:09:35.240 --> 00:09:37.320 or whatever. It really came down to the loan officer. 183 00:09:37.919 --> 00:09:41.600 So the credit score was invented as a way to 184 00:09:41.799 --> 00:09:46.879 try to standardize these things. But here's the problem. They 185 00:09:47.039 --> 00:09:50.480 used all of the old data to make their algorithm. 186 00:09:51.559 --> 00:09:57.399 So whenever the credit score was started by fair in ISAAC, 187 00:09:58.120 --> 00:10:01.080 essentially they were using all of the data that said, well, 188 00:10:01.159 --> 00:10:03.200 I don't know if we can trust a woman for 189 00:10:03.320 --> 00:10:06.159 this type of loan. Oh wait a minute, that black 190 00:10:06.279 --> 00:10:09.360 family from Alabama, I don't know about all that. And 191 00:10:09.480 --> 00:10:11.840 it wasn't even a person that was approving this. It 192 00:10:11.919 --> 00:10:14.559 was an arbitrary number that the banks could use as 193 00:10:14.600 --> 00:10:17.279 a shield to say, hey, wait a minute, we didn't 194 00:10:17.399 --> 00:10:20.639 deny the loan. This arbitrary number said that it'd be 195 00:10:20.720 --> 00:10:22.759 too risky for our bank to give the loan. 196 00:10:23.639 --> 00:10:25.639 So where do they get the information from, like what 197 00:10:25.960 --> 00:10:29.039 data did they pull because there wasn't really a lot 198 00:10:29.080 --> 00:10:32.559 of data collection happening prior to nineteen fifty. 199 00:10:32.960 --> 00:10:35.600 Oh, Raven, I'm so glad you asked this question. And 200 00:10:35.720 --> 00:10:37.480 then the best part, what are they doing with that 201 00:10:37.639 --> 00:10:41.399 data now? Because they're just selling it to insurance company? Yeah, 202 00:10:41.399 --> 00:10:43.000 we're gonna get to it. We're gonna get to it. 203 00:10:43.080 --> 00:10:45.600 All good cult members. And you know what, I got 204 00:10:45.639 --> 00:10:48.159 some articles to share. I got a video we're gonna 205 00:10:48.159 --> 00:10:49.480 play at the end. That kind of brings it all 206 00:10:49.559 --> 00:10:50.039 to a head. 207 00:10:50.080 --> 00:10:50.240 Here. 208 00:10:50.799 --> 00:10:52.639 If you would like to see what we are talking about, 209 00:10:52.720 --> 00:10:54.759 see our faces, see the articles and the videos and 210 00:10:54.759 --> 00:10:56.279 all the things, then what you needed to do is 211 00:10:56.360 --> 00:10:58.960 go to Patreon dot com slash Cult Conspiracy Podcast. That 212 00:10:59.039 --> 00:11:00.600 link is down in the show's below. It is the 213 00:11:00.679 --> 00:11:03.919 only place to get these shows. Well, I might as 214 00:11:03.919 --> 00:11:05.279 well just give it now. That is the only place 215 00:11:05.279 --> 00:11:11.039 to get these shows absolutely. But also you will get 216 00:11:11.039 --> 00:11:12.759 to see the articles, you get to see the videos, 217 00:11:12.799 --> 00:11:14.679 and you'll get these shows a couple of days in advance, 218 00:11:14.720 --> 00:11:17.720 if not up to a week in advance sometimes, But 219 00:11:17.840 --> 00:11:19.519 that is only for the lowest tier. If you go 220 00:11:19.679 --> 00:11:21.279 to that third eye all the way Open tier. You'll 221 00:11:21.279 --> 00:11:23.120 also get to join us every Tuesday night for our 222 00:11:23.159 --> 00:11:25.679 Cult Member Live That is Tuesday nights at nine pm 223 00:11:25.720 --> 00:11:28.600 Central Time. It is a fun time. It's unhinged. I 224 00:11:28.679 --> 00:11:30.519 feel like last night we spent way too much time 225 00:11:30.600 --> 00:11:33.000 talking about the most disturbing things. But you know, that's 226 00:11:33.039 --> 00:11:33.960 what the Tuesdays are for. 227 00:11:34.080 --> 00:11:35.080 I'm just not gonna talk about it. 228 00:11:35.559 --> 00:11:38.360 It's there, it's there if the Cult members, it's out 229 00:11:38.399 --> 00:11:46.039 on the ether, so you know it's out that whole thing. Also, 230 00:11:46.200 --> 00:11:48.559 if you go to that Maniac tier, you will not 231 00:11:48.679 --> 00:11:52.000 only get all these exclusive offers, but you will also 232 00:11:52.080 --> 00:11:56.120 be getting exclusive merchandise opportunities and a care package sent 233 00:11:56.200 --> 00:11:59.320 to you packaged by our wonderful Raven Lee. But also 234 00:11:59.480 --> 00:12:01.200 we have some well what's going on on the Patreon 235 00:12:01.279 --> 00:12:03.240 that raven Lee is spearheading. Go ahead and tell them 236 00:12:03.279 --> 00:12:05.480 about it, raven It is our book club. 237 00:12:05.799 --> 00:12:08.679 You can join our book club every Sunday night. We're 238 00:12:08.759 --> 00:12:10.799 going to go between one to two hours where we 239 00:12:10.960 --> 00:12:13.360 discuss a book of choice. We're going to take an 240 00:12:13.480 --> 00:12:16.759 entire month to read a book. We have a whole bowl, 241 00:12:17.080 --> 00:12:19.759 it's really fancy with my top aware bowl that we 242 00:12:19.840 --> 00:12:22.039 pick from and We're just going to read it and 243 00:12:22.120 --> 00:12:24.320 break it down and have discussions about what do we 244 00:12:24.440 --> 00:12:27.240 think what kind of topics. Right now, we are going 245 00:12:27.320 --> 00:12:30.519 to start reading How Jesus Became God. No, it is 246 00:12:30.600 --> 00:12:33.240 not a Christian echo chamber. This is actually a book 247 00:12:33.279 --> 00:12:36.000 that was given to us by our resident Jew, and 248 00:12:36.440 --> 00:12:38.759 it is a book about You said it. 249 00:12:38.799 --> 00:12:40.919 Was heretical, Oh, heretical. 250 00:12:41.000 --> 00:12:43.039 Yeah, so I've read some of it a little bit, 251 00:12:43.120 --> 00:12:44.799 like I've listened to it on because you can get 252 00:12:44.840 --> 00:12:47.480 this book on audio and purchase it as well. 253 00:12:47.559 --> 00:12:50.720 We are starting February first. Officially, you do have to 254 00:12:50.759 --> 00:12:52.919 be a third All the Way Open member or a 255 00:12:53.039 --> 00:12:56.639 Maniac member and uh yeah, come join us. It's going 256 00:12:56.679 --> 00:12:57.080 to be great. 257 00:12:57.200 --> 00:12:59.159 I think we have quite a few people already that 258 00:12:59.279 --> 00:13:02.440 are signed up for it, so we're just gonna bullshit. 259 00:13:02.559 --> 00:13:04.320 We are not going to release this, so it is 260 00:13:04.440 --> 00:13:06.799 an exclusive thing for those. 261 00:13:06.720 --> 00:13:10.360 Tiers absolutely, So without further ado, I'm going to go 262 00:13:10.399 --> 00:13:12.720 ahead and share the screen at this time and we 263 00:13:12.840 --> 00:13:16.120 are going to learn together good cult members about credit 264 00:13:16.440 --> 00:13:21.159 credit scores, the banking industry, the financial system, and how, 265 00:13:21.639 --> 00:13:25.039 through no fault of your own, you're being screwed because 266 00:13:25.080 --> 00:13:27.960 of the demographic that you happen to fall into. Banks 267 00:13:28.000 --> 00:13:30.679 do not approve loans based off of what you have 268 00:13:30.879 --> 00:13:33.519 done in your credit history. They're doing it off of 269 00:13:33.600 --> 00:13:35.639 what other people that look like you, that live in 270 00:13:35.679 --> 00:13:37.759 your area, that make close amounts of money to you, 271 00:13:38.120 --> 00:13:41.279 have done, and they're basing this off of that. What 272 00:13:41.679 --> 00:13:44.159 Oh yes, oh yes, it has nothing to do with you. 273 00:13:44.799 --> 00:13:47.639 It never has. For the record, let's say, and just 274 00:13:47.720 --> 00:13:48.360 throwing this out. 275 00:13:48.399 --> 00:13:50.879 You're seeing the demographic of those around you as like 276 00:13:50.960 --> 00:13:53.399 a collective. So if you live in an area where 277 00:13:53.879 --> 00:13:56.279 half the people are shit and don't know how to 278 00:13:56.399 --> 00:13:57.440 manage money, suck. 279 00:13:57.519 --> 00:14:02.039 It's what So here's the deal, bullshit. I'll give you 280 00:14:02.080 --> 00:14:04.639 a great example of this. Let's say that you pay 281 00:14:04.679 --> 00:14:07.480 your rent every month on the first of the month 282 00:14:07.559 --> 00:14:11.919 without fail for twenty years. The credit bureau doesn't give 283 00:14:11.919 --> 00:14:15.000 a fuck about that, because if your landlord never reported it, 284 00:14:15.360 --> 00:14:16.639 what difference does it make to them? 285 00:14:17.120 --> 00:14:20.399 Okay, so it's only taking the native stuff that gets reported, though, 286 00:14:20.399 --> 00:14:22.440 and that's how it's lowering your credit score. It's not 287 00:14:22.519 --> 00:14:24.919 actually raising your credit score for when you're actually doing 288 00:14:24.919 --> 00:14:25.399 the right thing. 289 00:14:25.679 --> 00:14:27.879 Yes, and we are going to talk about what goes 290 00:14:27.919 --> 00:14:30.799 into your credit score here in a bit. And although 291 00:14:31.039 --> 00:14:32.919 there's tons of these websites that I have pulled up 292 00:14:32.919 --> 00:14:35.159 that are all financial institutions and things like that, and 293 00:14:35.200 --> 00:14:36.399 they're trying to make it sound like this is a 294 00:14:36.480 --> 00:14:39.440 really good thing. I want everybody, as we're reading these 295 00:14:39.519 --> 00:14:41.840 articles to look at it and think of it critically 296 00:14:42.200 --> 00:14:44.240 and think about what the drawbacks of everything that's going 297 00:14:44.320 --> 00:14:46.720 to be said actually is. So let's start off from 298 00:14:46.720 --> 00:14:49.039 the beginning here. We're talking about how women were denied 299 00:14:49.120 --> 00:14:52.000 loans a lot of times. So we're ethnic minority groups 300 00:14:52.039 --> 00:14:54.639 and it varied place to place, and I understand that. 301 00:14:55.240 --> 00:14:58.879 But okay, this article here from the Competitive Enterprise Institute. 302 00:14:59.200 --> 00:15:01.919 It says, yes, when had access to credit before nineteen 303 00:15:01.960 --> 00:15:06.200 seventy four, But I want you to hear what type 304 00:15:06.320 --> 00:15:10.120 of credit they had access to before I even start raven. 305 00:15:10.600 --> 00:15:13.240 If you had to guess what type of credit and 306 00:15:13.320 --> 00:15:17.159 I don't mean a credit card, I mean like running 307 00:15:17.159 --> 00:15:17.960 a tab so to. 308 00:15:18.000 --> 00:15:19.559 Speak, what do you makeup? 309 00:15:20.200 --> 00:15:22.799 Because it's been proven that even in wartimes, women will 310 00:15:23.039 --> 00:15:24.759 make sure that they are able to at least buy 311 00:15:24.759 --> 00:15:28.279 a lipstick. Okay, I just I would assume it had 312 00:15:28.320 --> 00:15:30.600 to do with makeup. Or it would have to do 313 00:15:30.720 --> 00:15:33.480 with the door to door salesman coming and by doing 314 00:15:33.639 --> 00:15:37.240 the dishwasher. The refrigerator was a big thing that you 315 00:15:37.320 --> 00:15:38.320 got had to put on loan. 316 00:15:38.600 --> 00:15:42.759 Sure, but they couldn't do that without their husband's signature. 317 00:15:42.799 --> 00:15:44.240 Though that's fair. 318 00:15:44.519 --> 00:15:47.799 Yeah, I can't think of maybe clothing, groceries. 319 00:15:48.559 --> 00:15:49.120 Groceries. 320 00:15:49.200 --> 00:15:51.120 Okay, So let's talk about it as much as this 321 00:15:51.240 --> 00:15:54.200 article is saying, yes, women had access to credit, it's like, 322 00:15:55.600 --> 00:15:57.919 but did they did they actually to the level that 323 00:15:58.000 --> 00:15:59.960 we are talking about here, So let's break this down 324 00:16:00.200 --> 00:16:03.159 here and again, we were talking about American history, and granted, 325 00:16:03.279 --> 00:16:06.720 America's history is not all sunshine and rainbows. We have 326 00:16:06.840 --> 00:16:10.240 had a very troubled and ugly and fucked up past, 327 00:16:10.320 --> 00:16:12.519 but we have to acknowledge that pass to understand how 328 00:16:12.559 --> 00:16:14.399 we got to where we're at now so that we 329 00:16:14.519 --> 00:16:17.080 also can learn from it and teach the younger generation. 330 00:16:17.600 --> 00:16:20.799 Because up until nineteen eighty nine, this wasn't a thing 331 00:16:20.879 --> 00:16:22.679 that was used in loans. 332 00:16:23.559 --> 00:16:25.639 Yeah, it was an eighty nine. 333 00:16:26.200 --> 00:16:28.720 Credit scores were invented in the fifties, but they weren't 334 00:16:28.759 --> 00:16:31.360 actually used until the nineteen seventies, and they didn't become 335 00:16:31.799 --> 00:16:35.720 a national a nationwide standard. I was gonna say a 336 00:16:35.799 --> 00:16:38.480 national standard or a nationwide standard. I just combined words 337 00:16:38.519 --> 00:16:40.720 because that's what I'd be doing sometimes. But it didn't 338 00:16:40.720 --> 00:16:43.519 become a national standardized metric until eighty nine. 339 00:16:44.399 --> 00:16:47.559 Yeah, oh my god, it's thirty six years old. That's it. 340 00:16:48.080 --> 00:16:51.399 Here we are, here, we are so now our entire world. 341 00:16:51.279 --> 00:16:55.159 Is run off this bullshit elaborate random score and. 342 00:16:56.720 --> 00:16:59.440 Made by two guys in the San Francisco apartment in 343 00:16:59.480 --> 00:17:02.480 the nineteen fifties. And before you ask good cult members, no, 344 00:17:02.960 --> 00:17:06.880 neither of them, I thought, so. No, neither of them 345 00:17:06.920 --> 00:17:07.359 were Jewish. 346 00:17:09.640 --> 00:17:10.640 That's not what I was thinking. 347 00:17:10.720 --> 00:17:10.880 I was. 348 00:17:11.200 --> 00:17:13.079 I thought you were gonna say neither of them were gay, 349 00:17:13.119 --> 00:17:16.319 and I was like, oh maybe it was like I 350 00:17:16.359 --> 00:17:17.559 don't know why that matters. 351 00:17:17.599 --> 00:17:19.720 Were like, okay, no, No, before you're thinking and we're 352 00:17:19.720 --> 00:17:21.640 talking about the guys that invented credit scores for the 353 00:17:21.680 --> 00:17:24.160 banking and all this, my initial thought was, oh, here 354 00:17:24.240 --> 00:17:27.279 we go as the Jews. No, actually, neither of them 355 00:17:27.359 --> 00:17:32.599 were Jewish by dissent or by religion. Shockingly, I honestly 356 00:17:33.200 --> 00:17:34.880 no one was more shocked to find that out than me. 357 00:17:35.039 --> 00:17:37.599 I'm gonna be honest. But anyway, let's get into it now. 358 00:17:37.680 --> 00:17:40.480 Let's talk about some women, dude. So this was actually 359 00:17:40.480 --> 00:17:42.839 written in March of twenty twenty five. So March is 360 00:17:42.960 --> 00:17:45.839 Women's History Month, a time to acknowledge and celebrate many 361 00:17:46.039 --> 00:17:48.839 firsts quote unquote for women in public life. One of 362 00:17:48.880 --> 00:17:51.079 those first is the ability for American women to open 363 00:17:51.160 --> 00:17:55.039 a credit card independently without a husband or father's co signatory, 364 00:17:55.440 --> 00:17:58.440 following the passage of the Equal Credit Opportunity Act the 365 00:17:58.559 --> 00:18:01.880 ECOA by congres in nineteen seventy four. We're gonna talk 366 00:18:01.960 --> 00:18:04.000 more about that one in particular in a bit, but 367 00:18:04.039 --> 00:18:07.880 here we go. This bill prohibited discrimination in credit transactions 368 00:18:07.920 --> 00:18:10.960 based off of sex or marital status, and is generally 369 00:18:11.039 --> 00:18:14.960 considered a landmark for women's financial independence. However, this is 370 00:18:15.039 --> 00:18:18.599 only partly true. I will give at least the little addendum. Now, 371 00:18:19.160 --> 00:18:23.640 the ECOA and the Fair Housing Market Act, and these 372 00:18:23.720 --> 00:18:28.359 things are the reason, the only reason why credit scores 373 00:18:28.400 --> 00:18:31.839 ever got implemented in the first place. Again, these were 374 00:18:32.079 --> 00:18:34.359 now being used as a shield to protect the banks 375 00:18:34.359 --> 00:18:38.279 to where I didn't my loan officer didn't deny the loan. 376 00:18:38.640 --> 00:18:41.400 They had a low credit score. That's it. Was seen 377 00:18:41.599 --> 00:18:48.240 as a non judgmental risk assessment, you know, data, and 378 00:18:48.599 --> 00:18:50.039 it seemed like it was too much of a risk 379 00:18:50.079 --> 00:18:52.039 for us to do. Say. Well again, we'll get to 380 00:18:52.119 --> 00:18:54.759 that more in a bit, but the seventies is specifically 381 00:18:54.880 --> 00:18:58.200 why it even got started. Implemented, the ECA made it 382 00:18:58.279 --> 00:19:01.480 illegal for banks to discriminate based on sex or marital status. 383 00:19:01.720 --> 00:19:04.519 The law didn't grant women access to credit, but rather 384 00:19:04.720 --> 00:19:08.079 formalize their ability to sue for discrimination. Much like women 385 00:19:08.160 --> 00:19:10.759 had been voting in American election since the seventeen hundreds, 386 00:19:10.799 --> 00:19:13.480 before the passage of the nineteenth Amendment to the Constitution, 387 00:19:13.960 --> 00:19:17.240 women had also been navigating loans, credit, and financial systems 388 00:19:17.279 --> 00:19:21.480 long before the nineteen seventy four law. Okay, women could 389 00:19:21.599 --> 00:19:26.000 vote in this country, before women's suffrage became a national standard. However, 390 00:19:26.799 --> 00:19:31.160 the stipulations to who was allowed to vote realistically came 391 00:19:31.240 --> 00:19:34.440 down to money and land ownership. And if you there 392 00:19:34.480 --> 00:19:38.240 were women that, through inheritance or through their own grit whatever, 393 00:19:38.839 --> 00:19:42.880 did own land and were able to vote. But y'all, 394 00:19:42.880 --> 00:19:48.160 I gotta understand, this was the vast, vast minority. Like 395 00:19:48.359 --> 00:19:51.440 overall hell, most women couldn't even read in this country. 396 00:19:52.400 --> 00:19:55.559 Well that and also if they were found out to 397 00:19:55.640 --> 00:19:58.559 be voting, it was a huge thing too because how 398 00:19:58.680 --> 00:19:59.319 dare she so? 399 00:20:00.000 --> 00:20:02.880 But again that depended on the place. Like if you're 400 00:20:03.039 --> 00:20:06.119 a woman who is a member of a very well 401 00:20:06.200 --> 00:20:09.039 to do family, a very well known family from New 402 00:20:09.160 --> 00:20:11.960 York or from Boston or whatever the case, and they 403 00:20:12.079 --> 00:20:15.599 know that you specifically to your name, own fifty acres 404 00:20:15.640 --> 00:20:18.119 of land, and they know all of your people, no 405 00:20:18.200 --> 00:20:20.799 one's really gonna batten eye when you go in to 406 00:20:20.880 --> 00:20:23.079 cast your vote. But it wasn't like somebody from rural 407 00:20:23.160 --> 00:20:26.359 Kentucky was about to be bop up in here not 408 00:20:26.480 --> 00:20:28.799 be able to read the ballot and just cast their vote. 409 00:20:28.839 --> 00:20:30.839 The woman was gonna get shown the door. And so 410 00:20:30.960 --> 00:20:33.920 it varied. But like I said this article, what happened. 411 00:20:33.960 --> 00:20:37.000 If what happened if the woman wasn't married and like 412 00:20:37.160 --> 00:20:38.920 her father was dead, then it had to be like 413 00:20:39.000 --> 00:20:41.960 the next of ken, like her brother or her uncle. 414 00:20:42.240 --> 00:20:45.279 Yeah, you would have to have some sort of a 415 00:20:46.200 --> 00:20:49.480 male family co signer for pretty much any big financial 416 00:20:49.559 --> 00:20:52.799 movie tried to make. And that was also a really 417 00:20:52.960 --> 00:20:54.960 dangerous thing for a lot of women too, And that's 418 00:20:55.000 --> 00:20:58.640 why the old age was like, if you're single, by 419 00:20:58.759 --> 00:21:02.000 twenty one, So you're gonna die alone. You're just gonna 420 00:21:02.000 --> 00:21:04.480 be an old spinster lady. Basically, you what do you 421 00:21:04.559 --> 00:21:07.119 mean you're not married with two kids by twenty Are 422 00:21:07.160 --> 00:21:10.839 you crazy? That's you're on a time clock lady. Like 423 00:21:11.119 --> 00:21:14.680 it was a crazy, crazy mindset that went. And for 424 00:21:14.799 --> 00:21:16.920 the record, not just American culture, that was a lot 425 00:21:16.960 --> 00:21:20.759 of European culture as well, but these women, especially if 426 00:21:20.799 --> 00:21:25.279 they most women weren't accepted into job markets right and 427 00:21:25.440 --> 00:21:28.200 there there were certain crafts and certain jobs they could hold. 428 00:21:28.640 --> 00:21:31.079 They would get paid substantially less than their male counterparts 429 00:21:31.119 --> 00:21:32.960 for probably doing the exact same word, And I don't 430 00:21:33.039 --> 00:21:37.920 mean a few cents less, like it would be substantial realistically, 431 00:21:39.920 --> 00:21:42.519 very much so, very much so. And so it seemed 432 00:21:43.079 --> 00:21:46.240 like it was the better choice for a woman, a 433 00:21:46.359 --> 00:21:49.720 young woman to marry somebody and if she does earn 434 00:21:49.759 --> 00:21:51.400 a paycheck and all these things in fine, or she 435 00:21:51.440 --> 00:21:52.920 could be a stay at home on whatever the case 436 00:21:52.920 --> 00:21:57.160 would be. But it was seen even within themselves as like, Okay, 437 00:21:57.240 --> 00:21:59.240 it's a way better option for me to marry a 438 00:21:59.319 --> 00:22:02.480 guy and deal with some shit then have to work 439 00:22:02.559 --> 00:22:04.640 for pennies on the dollar and hope that I can 440 00:22:04.680 --> 00:22:06.559 afford to feed myself for the rest of my life. 441 00:22:06.880 --> 00:22:09.240 So it was the system was rigged in that way. 442 00:22:09.960 --> 00:22:10.160 It was. 443 00:22:10.319 --> 00:22:10.960 It was a mess. 444 00:22:11.079 --> 00:22:13.720 But anyway, So valu value in vodka, men. 445 00:22:14.440 --> 00:22:17.599 Valume in vodka? You mean laudnum and whiskey. Man to 446 00:22:17.680 --> 00:22:19.160 what level? I'm talking the Old West? 447 00:22:19.960 --> 00:22:21.559 I know. I was just saying a lot of women 448 00:22:21.640 --> 00:22:23.079 were take that valume too. 449 00:22:23.319 --> 00:22:26.759 So yeah, when volume became a thing that was inqual too. 450 00:22:26.880 --> 00:22:29.920 Valume and vodka, yep, that was the whole vibe. Just say, 451 00:22:29.960 --> 00:22:31.160 you know, get through the day. 452 00:22:31.960 --> 00:22:35.720 I guess I'm But anyway, I just so were clear. 453 00:22:36.000 --> 00:22:40.200 The article made that sound a little misleading. Women were 454 00:22:40.240 --> 00:22:43.559 not voting in the seventeen hundreds. A select few women 455 00:22:44.640 --> 00:22:48.160 over the entirety of the states had that ability. But anyway, 456 00:22:48.200 --> 00:22:51.920 moving on here. In the nineteenth century, both single and 457 00:22:52.279 --> 00:22:55.480 married American women relied on local stores and small businesses 458 00:22:55.559 --> 00:22:59.279 for credit. These businesses often granted credit based on personal 459 00:22:59.359 --> 00:23:02.640 trust and reputation, allowing women to purchase necessary items even 460 00:23:02.720 --> 00:23:06.359 without ready cash. A charge account at a general store, restaurant, 461 00:23:06.480 --> 00:23:08.640 or similar establishment could be settled at the end of 462 00:23:08.640 --> 00:23:11.359 the week or paid periodically, like in the TV show 463 00:23:11.480 --> 00:23:14.000 cheers a place where everybody knows your name, it's hard 464 00:23:14.079 --> 00:23:16.039 to skip out on a bill and easier for a 465 00:23:16.079 --> 00:23:19.480 business to give grace to customers who needed this. Non 466 00:23:19.640 --> 00:23:24.240 mandated localized credit access was part per particularly Jesus, particularly 467 00:23:24.319 --> 00:23:27.079 important to women. So that's what I mean. If you 468 00:23:27.240 --> 00:23:30.119 had miss Smith, and you know, Miss Smith is gonna 469 00:23:30.119 --> 00:23:32.640 come in and she's getting groceries for her family, and 470 00:23:32.720 --> 00:23:35.640 her husband gets paid twice a month, right but she 471 00:23:35.759 --> 00:23:38.920 needs those groceries right now, the clerk at the store 472 00:23:39.000 --> 00:23:40.799 would give her a little bit of leeway and give 473 00:23:40.839 --> 00:23:42.920 her some credit. But that's also miss Smith, you know 474 00:23:42.960 --> 00:23:45.839 what I mean, Like your kids probably played t ball together, 475 00:23:46.039 --> 00:23:47.920 Like it's you know who she is, and you know 476 00:23:48.039 --> 00:23:50.079 she's good for it, so you would have some leniency. 477 00:23:50.160 --> 00:23:53.519 But it was very locally based. It wasn't to a 478 00:23:53.680 --> 00:23:54.920 national credit because. 479 00:23:54.720 --> 00:23:58.559 There's no paper trail, so there's no actual quote unquote 480 00:23:58.599 --> 00:24:01.720 credit score. Have word of mouth through people. That doesn't 481 00:24:01.720 --> 00:24:04.279 really matter to the banks because even if you're trying 482 00:24:04.279 --> 00:24:07.160 to get a loan, you have nothing to show for 483 00:24:07.400 --> 00:24:08.400 that you actually are. 484 00:24:08.400 --> 00:24:12.359 Worth a lick or your words, so exactly, and it's 485 00:24:12.480 --> 00:24:16.680 a whole system just to you know, that's essentially it. 486 00:24:16.880 --> 00:24:22.359 And so when fair and ISAAC founded Fiico and they 487 00:24:22.480 --> 00:24:27.000 started making these arbitrary credit scores, they were using data 488 00:24:27.839 --> 00:24:30.160 from the past few decades. And here's the problem, like 489 00:24:30.279 --> 00:24:33.599 you just said, if there's no data on women, or 490 00:24:33.680 --> 00:24:37.440 on minority groups, or on this bump fuck nowhere town, 491 00:24:38.039 --> 00:24:41.119 then how are you going to compare anything against anything. So, 492 00:24:41.880 --> 00:24:44.839 believe it or not, the credit score actually ended up 493 00:24:44.880 --> 00:24:48.160 screwing more people over especially in the beginning, than it 494 00:24:48.240 --> 00:24:50.359 did help them. And then these people had to start 495 00:24:50.599 --> 00:24:52.680 establishing credit. And we're going to get more into what 496 00:24:52.839 --> 00:24:55.559 you have to do to establish credit. They don't want 497 00:24:55.599 --> 00:24:58.559 you to pay off your debts. That's another thing too. 498 00:24:58.599 --> 00:25:00.240 If you were to go right now and pay off 499 00:25:00.319 --> 00:25:02.039 every single one of your credit cards, pay off your 500 00:25:02.079 --> 00:25:04.319 car note, pay off your mortgage, and they look at 501 00:25:04.359 --> 00:25:07.000 your debt to income ratio, right and you're thinking that's 502 00:25:07.000 --> 00:25:09.839 an important factor. No, you just fucked yourself. 503 00:25:10.319 --> 00:25:14.119 They want you to have that generating Yes, you have 504 00:25:14.200 --> 00:25:16.319 to establish your payments, you have to be able to 505 00:25:16.440 --> 00:25:19.759 show that your trustworthy to pay your payments on time. 506 00:25:19.839 --> 00:25:21.000 But you don't want to pay the minimum. 507 00:25:21.240 --> 00:25:22.880 You want to pay a little bit above the minimum, 508 00:25:23.160 --> 00:25:25.119 So that way you can pay a little bit of 509 00:25:25.200 --> 00:25:26.960 the interests but not all the interests. 510 00:25:27.000 --> 00:25:29.799 And it's a whole thing. But that's how the market 511 00:25:30.039 --> 00:25:33.720 for the doorder door salesman came about as well, So 512 00:25:33.839 --> 00:25:36.039 it all was tied in conjunction to each other. 513 00:25:36.319 --> 00:25:39.599 Plus the consumerism model. I'm wondering if they had a 514 00:25:39.720 --> 00:25:44.119 hand with the consumerism situation. So that way, hey, this 515 00:25:44.319 --> 00:25:47.559 allowed you to take this line of credit to be 516 00:25:47.640 --> 00:25:49.720 able to buy these fancy things. Plus they had the 517 00:25:49.799 --> 00:25:53.279 television going where it was showing like, well, look if 518 00:25:53.359 --> 00:25:57.079 you just had this really awesome you know, refrigerator has 519 00:25:57.119 --> 00:26:00.359 all these compartments, you'd be such a better housewife. This 520 00:26:00.559 --> 00:26:02.920 is what you need, or hey, this is what you 521 00:26:03.079 --> 00:26:05.759 need to look more like a man. And then you 522 00:26:05.839 --> 00:26:08.119 have people coming around and like, oh now this will 523 00:26:08.160 --> 00:26:10.839 help boost your credit score. This will actually build it 524 00:26:10.960 --> 00:26:13.880 for you. Yeah, it's quite intelligent design, I'll say that. 525 00:26:14.359 --> 00:26:17.880 So that wasn't the intent when they made the credit score. 526 00:26:18.039 --> 00:26:20.640 They were actually trying to streamline. And I'm not saying 527 00:26:20.680 --> 00:26:22.960 that Fair and Isaac were like good dudes. I don't know, 528 00:26:23.440 --> 00:26:27.240 I'm putting them into the neutral category. Honestly, they they 529 00:26:27.400 --> 00:26:29.559 started this, they weren't bankers. One of them was a 530 00:26:29.640 --> 00:26:32.559 mathematician and one of them was an engineer, right, and 531 00:26:32.680 --> 00:26:36.160 they were trying to hedge their bets on human behavior 532 00:26:36.799 --> 00:26:40.920 and putting a number designation on a certain group of people. 533 00:26:40.960 --> 00:26:43.279 And I don't mean all white people all black people. 534 00:26:43.799 --> 00:26:46.480 That's not what I'm saying here. It's more like, Okay, 535 00:26:47.640 --> 00:26:54.440 a white guy from Jackson, Mississippi, who earns X amount 536 00:26:54.480 --> 00:26:58.920 of dollars every year. People like that. There's let's say 537 00:26:58.960 --> 00:27:02.400 there's two thousand of this particular type that's living in Jackson, 538 00:27:02.400 --> 00:27:05.759 Mississippi at this time. How many of them defaulted on 539 00:27:05.920 --> 00:27:08.440 their payments last year? How many of them their houses 540 00:27:08.480 --> 00:27:11.400 went into foreclosure and things like this? Okay, pretty much 541 00:27:11.440 --> 00:27:13.000 all of them made their payments on time. There were 542 00:27:13.039 --> 00:27:16.000 some ones intoosies, but overall they did. None of them 543 00:27:16.079 --> 00:27:18.200 foreclosed on their homes. How some of them even bought 544 00:27:18.240 --> 00:27:22.200 bigger homes. Okay, that group needs a higher credit score. 545 00:27:23.400 --> 00:27:25.880 That's essentially what it was. And so I don't think 546 00:27:25.920 --> 00:27:28.039 that they were doing it to fuck over anybody, at 547 00:27:28.119 --> 00:27:31.279 least on the onset. But later on it became that 548 00:27:31.880 --> 00:27:35.200 because the credit scores that they designed or at least 549 00:27:35.359 --> 00:27:38.880 how it was intended was to give basically a streamlining 550 00:27:38.960 --> 00:27:42.480 to bank officers and banks in general approving or denying loans. 551 00:27:43.160 --> 00:27:49.000 It wasn't trying to make the consumer market get interest 552 00:27:49.119 --> 00:27:53.680 generating in therefore profit generating debt. At least that's not 553 00:27:53.839 --> 00:27:54.599 what it seemed. 554 00:27:55.160 --> 00:27:57.200 But maybe that's not what it intended. But when the 555 00:27:57.440 --> 00:28:01.640 consumerism models and those people came about and saw this happening, 556 00:28:02.119 --> 00:28:05.279 how did they introduce us though into the banks? That's 557 00:28:05.279 --> 00:28:07.519 what I'm wondering. How did this even get picked up? 558 00:28:07.640 --> 00:28:11.599 Because people have ideas every day, but nothing come You're 559 00:28:11.599 --> 00:28:15.720 talking about changing the entire course of American history and 560 00:28:15.880 --> 00:28:17.160 changing how we do everything. 561 00:28:17.519 --> 00:28:20.079 Yeah, so, how the hell did you even come about? 562 00:28:20.359 --> 00:28:21.319 I don't understand you. 563 00:28:21.359 --> 00:28:25.559 Ever heard of Equifax TransUnion? Yes, yeah, we're gonna be 564 00:28:25.599 --> 00:28:27.440 talking about those in a bit, because that's pretty much 565 00:28:27.440 --> 00:28:31.640 where it took its turn. And this was in the eighties. Yeah, okay, 566 00:28:32.160 --> 00:28:35.039 So anyway, prior to the nineteen seventies, marriage too often 567 00:28:35.119 --> 00:28:38.720 dictated the terms by which women accessed credit, since married 568 00:28:38.759 --> 00:28:42.119 women's prosperity or property was also owned by their husband's 569 00:28:42.279 --> 00:28:46.400 only unmarried women could independently form contracts and engage in litigation. 570 00:28:47.039 --> 00:28:49.079 That's the author of to Her Credit Rights. In her 571 00:28:49.119 --> 00:28:52.319 book examining finances of women during the America's eighteenth century 572 00:28:52.359 --> 00:28:56.039 revolutionary period, she found that quote women in Boston and 573 00:28:56.160 --> 00:28:59.680 Newport appeared in debt litigation as creditors and debtors in 574 00:29:00.319 --> 00:29:05.839 equal proportions. However, quote women's credit networks were predominantly local 575 00:29:06.319 --> 00:29:10.279 end Quote women routinely made purchases on credit, signed contracts, 576 00:29:10.319 --> 00:29:13.400 participated in court cases, and settled debts. At that time, 577 00:29:13.680 --> 00:29:16.880 married women also commonly extended lines of credit to their 578 00:29:17.000 --> 00:29:19.279 unmarried friends, which is true, but again they had to 579 00:29:19.319 --> 00:29:21.720 have the funds on standby to do such, and there 580 00:29:21.799 --> 00:29:24.240 wasn't many women that could qualify for that. But anyway, 581 00:29:25.319 --> 00:29:28.440 a hallmark example of a revolutionary araw woman navigating the 582 00:29:28.519 --> 00:29:32.119 financial system is Abigail Stoneman, a widow who open and 583 00:29:32.240 --> 00:29:35.079 operated inns in t and tea shops in New England 584 00:29:35.119 --> 00:29:38.119 in the seventeen hundreds. Also, if anybody's curious about her, 585 00:29:38.519 --> 00:29:42.839 that is a fascinating woman to look into. This chick, 586 00:29:43.799 --> 00:29:46.319 and she was a widow. She inherited these things because 587 00:29:46.359 --> 00:29:49.160 her husband died. She picked up the ball and ran 588 00:29:49.279 --> 00:29:51.519 with it, and if I'm not mistaken, she might be 589 00:29:51.640 --> 00:29:56.160 the first millionaire on the US continent. Really I think so, 590 00:29:56.599 --> 00:29:59.359 or at least the first female millionaire. But something no, actually, 591 00:29:59.400 --> 00:30:02.599 excuse me. The her female millionaire was a black woman 592 00:30:03.039 --> 00:30:08.119 who developed a makeup line specifically for black women. I 593 00:30:08.319 --> 00:30:09.720 think this was in the nineteen twenties. 594 00:30:09.799 --> 00:30:12.119 As a matter of fact, I know you're talking about. 595 00:30:12.160 --> 00:30:12.960 I can see her face. 596 00:30:13.160 --> 00:30:14.720 Same. She was riding in the back of a drop 597 00:30:14.799 --> 00:30:16.680 top caddy like she was a pimp because she was 598 00:30:17.400 --> 00:30:20.799 anyway moving on here. So she extended lines of credit 599 00:30:20.880 --> 00:30:23.720 to other business owners and her own customers. In fact, 600 00:30:23.759 --> 00:30:26.279 there were so many documented appeals in local newspapers by 601 00:30:26.359 --> 00:30:30.519 creditors like Stoneman requesting repayment from debtors. So again, she 602 00:30:30.839 --> 00:30:34.359 was the exception, not the standard. But credit access differed 603 00:30:34.359 --> 00:30:37.599 from state to state. For example, in eighteen forty eight, 604 00:30:37.640 --> 00:30:40.359 the Married Woman's Property Act passed in New York and 605 00:30:40.519 --> 00:30:43.079 established that a woman was no longer liable for her 606 00:30:43.200 --> 00:30:47.640 husband's debts, could enter contracts on her own, was able 607 00:30:47.720 --> 00:30:50.720 to collect rent or receive an inheritance in her own right, 608 00:30:50.880 --> 00:30:53.359 and could file a lawsuit on her own. Behalf the 609 00:30:53.440 --> 00:30:56.880 act became a model for other states. So again, as 610 00:30:56.920 --> 00:30:59.160 long as she was not liable for her husband's debts, 611 00:30:59.640 --> 00:31:01.519 otherwise they would take it out of the estate and 612 00:31:01.599 --> 00:31:04.039 she would become a poor widower, which you know anyway, 613 00:31:04.640 --> 00:31:07.200 So the rise of the department stores and catalogs. By 614 00:31:07.200 --> 00:31:10.119 the late nineteenth and early twentieth centuries came the emergence 615 00:31:10.160 --> 00:31:13.319 of department stores and mail order clothing catalogs like you 616 00:31:13.359 --> 00:31:16.640 had mentioned, raven Larger businesses were able to offer more 617 00:31:16.720 --> 00:31:20.680 formalized credit options catering to women's shopping experiences. The quote 618 00:31:20.720 --> 00:31:24.640 unquote charge plate, akin to a in store card, was 619 00:31:24.720 --> 00:31:27.680 somewhat of a predecessor to modern credit cards. Although single 620 00:31:27.720 --> 00:31:30.400 women faced more challenges in securing credit, they could still 621 00:31:30.400 --> 00:31:33.559 apply and receive credit by providing proof of financial stability. 622 00:31:33.960 --> 00:31:37.039 Over time, these store accounts, costly to maintain and collect on, 623 00:31:37.480 --> 00:31:40.240 gave way to portable credit cards managed by banks that 624 00:31:40.319 --> 00:31:44.279 could be used at other stores. So now, leading up 625 00:31:44.359 --> 00:31:48.240 to the ECOA, in the early nineteen seventies, women's organizations 626 00:31:48.319 --> 00:31:52.200 gathered testimony from women nationwide describing their hassles receiving letters 627 00:31:52.240 --> 00:31:55.480 of credit and financial services from local banks. These letters 628 00:31:55.519 --> 00:31:57.920 were presented in a hearing before the National Commission on 629 00:31:58.079 --> 00:32:01.480 Consumer Finance in May of nineteen seventy two. This and 630 00:32:01.559 --> 00:32:05.400 subsequent hearings helped inform the nineteen seventy four bill. Although 631 00:32:05.440 --> 00:32:07.599 the bill was passed, it did not guarantee that women 632 00:32:07.799 --> 00:32:10.839 or women owned businesses would be considered credit worthy by banks. 633 00:32:11.200 --> 00:32:14.319 It merely allowed them to pursue legal recourse for discrimination 634 00:32:14.480 --> 00:32:15.519 based on sex. 635 00:32:16.200 --> 00:32:20.079 So that is wild to me. This was so this 636 00:32:20.400 --> 00:32:23.319 was not very long ago, but real shit. And it's 637 00:32:23.480 --> 00:32:26.119 just it's crazy to me when people like get all 638 00:32:26.200 --> 00:32:28.720 huffy and puffy when women mentioned things like this, and 639 00:32:28.839 --> 00:32:31.799 it's like, this was not very long ago, but this 640 00:32:31.960 --> 00:32:34.880 didn't just affect us. So disabled people weren't allowed to 641 00:32:34.920 --> 00:32:38.000 get shit either. All the minority groups were not allowed 642 00:32:38.039 --> 00:32:38.839 to get shit either. 643 00:32:39.000 --> 00:32:42.880 Like overall, it affected a large amount of people, and 644 00:32:43.200 --> 00:32:45.799 it's it's crazy that this was Like my parents were 645 00:32:45.880 --> 00:32:50.000 living through this time. Oh, my grandparents were here thriving 646 00:32:50.039 --> 00:32:53.519 and doing everything else. So my grandma actually owned the 647 00:32:53.640 --> 00:32:56.839 nursing homes. And I don't want to misspeak, but I 648 00:32:57.119 --> 00:33:01.200 think that she opened the first one and like seventy six, 649 00:33:02.079 --> 00:33:05.440 I remember, right somewhere around there, and I know that. 650 00:33:05.559 --> 00:33:06.519 I mean, she was married to. 651 00:33:06.559 --> 00:33:09.920 My grandfather, you know, then they eventually divorced and he 652 00:33:10.039 --> 00:33:13.160 passed and stuff. But I remember, like they've talked about, 653 00:33:13.440 --> 00:33:15.279 you know, the struggles of trying to get credit and 654 00:33:15.359 --> 00:33:17.799 all this stuff. I just never even really paid attention though, 655 00:33:17.799 --> 00:33:19.680 because when I was younger, I was like, I mean, yeah, 656 00:33:19.720 --> 00:33:23.279 everyone struggles to get credit cards whatever. Right now, knowing 657 00:33:23.440 --> 00:33:25.720 like the history of it, it's like, oh no, you 658 00:33:26.000 --> 00:33:29.119 like really mean you couldn't have get help because you 659 00:33:29.200 --> 00:33:31.880 had to have your husband sign on it in nineteen 660 00:33:32.079 --> 00:33:32.880 seventy four. 661 00:33:33.359 --> 00:33:36.599 Yeah, and again, this didn't make it easier. This just 662 00:33:36.720 --> 00:33:39.319 meant that the women could sue the bank. And I 663 00:33:39.359 --> 00:33:42.079 don't know if y'all know right right, but I don't 664 00:33:42.079 --> 00:33:43.799 know if y'all know this or not. But the banks 665 00:33:44.119 --> 00:33:46.839 got money, and they got money to hire the best 666 00:33:46.960 --> 00:33:50.079 lawyers on the planet. So let's say you have some 667 00:33:50.599 --> 00:33:54.279 some woman, some little, some little woman in your little 668 00:33:54.359 --> 00:33:57.119 town that got tonied for a little bank woan, and 669 00:33:57.240 --> 00:33:59.960 she's gonna take you to whittle court. Meanwhile, you're hiring 670 00:34:00.160 --> 00:34:02.039 like the best lawyer's money can buy to make her 671 00:34:02.079 --> 00:34:04.759 seem like an idiot. So just because they could take 672 00:34:04.880 --> 00:34:07.200 legal recourse that didn't really pan out for them very 673 00:34:07.240 --> 00:34:08.320 well more often than not. 674 00:34:09.159 --> 00:34:12.119 So can you imagine this that? And of course immigrants too. 675 00:34:12.079 --> 00:34:15.159 Oh same shit, Like yeah, I mean, it's the the. 676 00:34:15.199 --> 00:34:18.159 Amount of people that had had to deal with this, 677 00:34:18.320 --> 00:34:18.880 it's crazy. 678 00:34:19.079 --> 00:34:22.159 So keep in mind, we feel we allegedly put a 679 00:34:22.280 --> 00:34:25.320 guy on the moon before a woman could get a 680 00:34:25.440 --> 00:34:27.360 bank loan without her husband in tow. 681 00:34:28.320 --> 00:34:30.800 You know, everyone's gonna be like, you're a firm or nurse. 682 00:34:30.679 --> 00:34:34.760 I said, allegedly. And also, now fuck that, dude. If 683 00:34:34.800 --> 00:34:37.079 a woman could earn her her daily bread on her own, 684 00:34:37.159 --> 00:34:39.400 she should be able to get a loan. That's fucking retorted. 685 00:34:40.079 --> 00:34:42.719 Same with anybody else besides just men. 686 00:34:43.440 --> 00:34:46.079 So but even that, though only select few of men, 687 00:34:46.159 --> 00:34:49.000 let me, let's be really clear, there's only a margin 688 00:34:49.079 --> 00:34:50.360 of men that were allowed. 689 00:34:50.039 --> 00:34:52.840 To pretty much get loans. Everyone else was pretty much fucked. 690 00:34:52.639 --> 00:34:55.480 So pretty much, it's wild. It had to be the 691 00:34:55.559 --> 00:34:57.920 right type of guy, and it couldn't just be white guys, 692 00:34:58.000 --> 00:35:00.800 because like what about the Italian You know what I'm saying. 693 00:35:00.800 --> 00:35:02.239 I had to be the right type of white We 694 00:35:02.280 --> 00:35:04.960 couldn't have those guys getting loans. Go, you're kidding me. 695 00:35:05.320 --> 00:35:07.519 The Polish. You're going to give a loan to a 696 00:35:07.559 --> 00:35:13.199 Polish guy. Come on, now, the fucking Irish, mister bank officer, 697 00:35:13.599 --> 00:35:16.519 you just gave a loan to an fucking gypsy. Come 698 00:35:16.559 --> 00:35:18.679 on now, you see, you see what I'm saying. So 699 00:35:18.760 --> 00:35:21.840 it wasn't just well the Jews, they always got there, 700 00:35:25.000 --> 00:35:28.039 But the reality is it wasn't just all white men. 701 00:35:28.559 --> 00:35:31.880 It was a very select group of waspy, fucking guys. 702 00:35:32.239 --> 00:35:35.320 And that was that was basically it. And so moving 703 00:35:35.480 --> 00:35:40.039 on in the nineteen seventies, they passed the ECOA and 704 00:35:40.280 --> 00:35:44.000 now banks started and again they started getting some litigation. 705 00:35:44.239 --> 00:35:45.920 They started getting some people sue them, but they could 706 00:35:45.960 --> 00:35:48.679 afford the lawyers, and that was fine, but it got 707 00:35:48.719 --> 00:35:50.559 to a point to where they could no longer foot 708 00:35:50.599 --> 00:35:53.519 the bill for this mini legal fees. So now that 709 00:35:53.880 --> 00:35:58.320 credit thing, that that that the Fiico company, remember hearing 710 00:35:58.320 --> 00:36:01.039 about that, this these two dudes in California. They made 711 00:36:01.079 --> 00:36:04.719 this number, and it sidelined itself for a good while. 712 00:36:04.840 --> 00:36:09.000 Because a bank officer's got power, right, and I'm not 713 00:36:09.079 --> 00:36:13.280 saying like stroking your own ego power, but human intervention 714 00:36:14.000 --> 00:36:17.920 at the time seemed better for business than an arbitrary number, 715 00:36:18.239 --> 00:36:21.840 because some of these things could work in your favor. Right, 716 00:36:21.960 --> 00:36:25.440 Let's say that this loan officer who isn't worried about 717 00:36:25.480 --> 00:36:27.559 some credit score thing, it's all about how he felt 718 00:36:27.639 --> 00:36:31.000 about the individual. He can approve loans for a buddy 719 00:36:31.039 --> 00:36:33.840 of his, he can deny loans for an enemy of his. 720 00:36:34.480 --> 00:36:36.760 He can use this as a way to keep minority 721 00:36:36.800 --> 00:36:39.480 groups down. He could use this to elevate certain things 722 00:36:39.519 --> 00:36:42.239 in his town and work deals in backdoor kickbacks and 723 00:36:42.280 --> 00:36:45.440 shit like this. So the banks were not super jazzed 724 00:36:45.519 --> 00:36:47.880 up to grab hold to this whole credit score thing 725 00:36:47.960 --> 00:36:52.000 when it first came out, But once the nineteen seventies happened, 726 00:36:52.320 --> 00:36:55.000 they realized, oh wait a minute, we could use this. 727 00:36:55.559 --> 00:36:58.519 This could now be a shield to protect our loan 728 00:36:58.639 --> 00:37:02.760 houses because now our officer didn't deny you this loan 729 00:37:02.840 --> 00:37:05.840 because you're a black woman, you have a low credit score, 730 00:37:06.239 --> 00:37:08.760 and that you're gonna you're gonna sue a number. You're 731 00:37:08.760 --> 00:37:11.400 gonna sue the credit bureau, that's not the bank. You 732 00:37:11.480 --> 00:37:12.360 see what I'm saying here. 733 00:37:12.840 --> 00:37:16.960 Credibly shady shit anyways, though, Oh when they put shit 734 00:37:17.039 --> 00:37:19.760 on your credit score though, like and you can't get 735 00:37:19.800 --> 00:37:20.159 it off. 736 00:37:21.639 --> 00:37:22.440 I've petitioned the. 737 00:37:22.480 --> 00:37:27.199 Credit bureaus for like seven years to remove one thing 738 00:37:27.760 --> 00:37:31.159 that is completely false and it is messed with my credit. 739 00:37:31.239 --> 00:37:35.400 All this time they refuse. I've sent in documentation, I've 740 00:37:35.519 --> 00:37:37.880 called them, I'm evil them. I've done all this stuff, 741 00:37:38.119 --> 00:37:39.639 and I know people that have gone on and gotten 742 00:37:39.719 --> 00:37:40.639 so many things removed. 743 00:37:40.679 --> 00:37:44.559 And it's like, I who's doing this? Is? Is it? Ai? Like? 744 00:37:44.920 --> 00:37:47.159 Who is actually behind all this exactly? 745 00:37:47.360 --> 00:37:50.719 And that's the other thing. All these companies that claim, oh, 746 00:37:50.800 --> 00:37:52.440 you give me six months and I could have your 747 00:37:52.480 --> 00:37:56.199 credit score improved by two hundred points, they can because 748 00:37:56.239 --> 00:37:58.920 they're working the system, and it doesn't Actually they're not 749 00:37:59.079 --> 00:38:02.360 doing things to your finds. You're not paying off your 750 00:38:02.440 --> 00:38:05.039 debts in a different way than you normally would. They're 751 00:38:05.119 --> 00:38:07.800 shifting some numbers around to make the algorithm play more 752 00:38:07.840 --> 00:38:09.679 to your favor to make you have a higher credit 753 00:38:09.719 --> 00:38:12.440 score for that moment in time. In another six months, 754 00:38:12.480 --> 00:38:14.199 if you do nothing, your credit score go back to 755 00:38:14.239 --> 00:38:16.159 where it once was. But we're gonna talk about that 756 00:38:16.519 --> 00:38:18.119 a little bit later when we talk about the five 757 00:38:18.199 --> 00:38:20.599 key principles to what gives you your credit score and 758 00:38:20.719 --> 00:38:23.320 look at those a little more in depth. But as 759 00:38:23.360 --> 00:38:27.320 we're talking about this, all this, the banks, the credit scores, 760 00:38:27.360 --> 00:38:30.800 the bureaus, all of this go off of predictive analytics, 761 00:38:31.519 --> 00:38:34.960 which is modern risk management. And this is what is 762 00:38:35.079 --> 00:38:38.119 being used for your credit score. This is from Carrington 763 00:38:38.280 --> 00:38:40.840 Labs dot com. And we're gonna read a little bit 764 00:38:40.840 --> 00:38:43.320 about it. And again they're going to word this and 765 00:38:43.440 --> 00:38:45.519 spend it in a way that makes it very good. 766 00:38:46.079 --> 00:38:48.039 All of us should be using this in our lives, 767 00:38:48.079 --> 00:38:49.760 and it's gonna make it sound like this is clearly 768 00:38:49.840 --> 00:38:52.320 the smartest way to do it. Think about all of 769 00:38:52.360 --> 00:38:53.039 what I'm about to read. 770 00:38:53.119 --> 00:38:55.719 Credit the number do I know? Like where do? I 771 00:38:55.800 --> 00:38:57.480 still don't get where they got the number? 772 00:38:57.679 --> 00:39:00.440 Like I get the used mathematics and stuff, but if 773 00:39:00.519 --> 00:39:03.440 there's no data collection throughout the country, they just pulled 774 00:39:03.480 --> 00:39:06.320 a number out of their ass and was like close enough. 775 00:39:06.559 --> 00:39:08.760 Essentially, that's how they got the baseline. And the credit 776 00:39:08.800 --> 00:39:12.280 scores have been they've they've been altered and shifted a 777 00:39:12.320 --> 00:39:14.440 little here and a little there over the decades. Don't 778 00:39:14.440 --> 00:39:17.599 get me wrong, but when FIKO first started it, it 779 00:39:17.800 --> 00:39:20.280 was off of whatever data the banks are willing to 780 00:39:20.320 --> 00:39:23.159 give them at that time. And again, if this one 781 00:39:23.280 --> 00:39:26.039 bank has approved zero loans to black people for the 782 00:39:26.119 --> 00:39:29.320 last fifty years. That data is getting entered into the system. 783 00:39:30.519 --> 00:39:33.480 I just don't see how he would have gathered enough data. 784 00:39:33.800 --> 00:39:37.559 Enough banks would be willingly giving over people's information to 785 00:39:37.760 --> 00:39:42.119 collect data to make an algorithm to see exactly. 786 00:39:41.719 --> 00:39:44.519 How this works. Like, it's just it's all bullshit. I 787 00:39:44.559 --> 00:39:45.599 feel like it completely. 788 00:39:46.039 --> 00:39:48.760 And then and then the fact that we still use 789 00:39:48.800 --> 00:39:50.559 it though today, Like I understand trying to get a 790 00:39:50.599 --> 00:39:54.320 standardized metric system at least so that way we could 791 00:39:54.400 --> 00:39:58.960 try to eliminate discrimination and all of that, I'm totally behind. 792 00:39:59.000 --> 00:40:02.159 That problem is is now you've created a whole situation 793 00:40:02.280 --> 00:40:04.280 where it's just bullshit, it's fake. 794 00:40:04.679 --> 00:40:04.920 It is. 795 00:40:05.079 --> 00:40:07.039 And then people have to live their lives by this 796 00:40:07.119 --> 00:40:09.440 credit score and it doesn't affect the elite and the wealthy, 797 00:40:09.719 --> 00:40:12.679 it affects everybody else below that. And then we're all 798 00:40:12.800 --> 00:40:15.079 sitting here trying to pay off debt, but don't pay 799 00:40:15.119 --> 00:40:17.719 off too much debt, and you know, let's make sure 800 00:40:18.079 --> 00:40:20.400 don't open too many credit cards. My mom had a 801 00:40:20.480 --> 00:40:20.960 credit card. 802 00:40:21.039 --> 00:40:21.440 I'm glad. 803 00:40:21.719 --> 00:40:24.119 This is really random, but my mom had this Nordstrom 804 00:40:24.159 --> 00:40:26.840 credit card, which is a clothing company O North. 805 00:40:26.840 --> 00:40:29.199 She's had it since she's had it since she was 806 00:40:29.559 --> 00:40:31.400 I think sixteen or seventeen years old. 807 00:40:31.480 --> 00:40:32.840 So that's our longest line of credit. 808 00:40:32.960 --> 00:40:34.599 Yeah, longest line of credit. Right. 809 00:40:35.320 --> 00:40:37.840 Nordstrom's like two years ago, two or three years ago, 810 00:40:38.360 --> 00:40:41.840 they got bought out. Their credit system got bought out 811 00:40:41.920 --> 00:40:44.920 by another company, and they went and they raised their 812 00:40:45.480 --> 00:40:48.519 interest rates. I think it was like seventy nine percent 813 00:40:48.719 --> 00:40:51.960 or something obscene like it went from like fifteen percent 814 00:40:52.079 --> 00:40:55.239 to an obscene amount, don't I don't know the exact number, 815 00:40:55.280 --> 00:40:58.639 but I know it was like a crazy high high number. 816 00:40:59.159 --> 00:41:01.760 And my mom's like, I've had this credit card since 817 00:41:01.800 --> 00:41:05.440 I was sixteen, seventeen years old, and now I'm gonna. 818 00:41:05.239 --> 00:41:09.519 Have to close it. Her score dropped twenty three points 819 00:41:09.679 --> 00:41:11.679 because she closed that credit card. 820 00:41:12.039 --> 00:41:17.039 Only twenty three points. Yeah, Raven, Raven, it was. 821 00:41:17.480 --> 00:41:21.039 But for my mom, that hasn't eight hundred like she felt, 822 00:41:21.119 --> 00:41:23.639 so I think it was she felt some type of way. 823 00:41:23.679 --> 00:41:25.840 But she closed another card too, and that dropped even more. 824 00:41:25.920 --> 00:41:28.320 It dropped like a huge amount, and she was pissed 825 00:41:28.639 --> 00:41:30.199 the day. Paul and knew all this stuff. 826 00:41:30.800 --> 00:41:32.559 Yeah, but you got to understand old people feel some 827 00:41:32.599 --> 00:41:34.639 type of way about their credit score, especially when they 828 00:41:34.679 --> 00:41:36.440 work like all their life to have like an eight 829 00:41:36.519 --> 00:41:37.599 hundred plus, which is. 830 00:41:37.639 --> 00:41:40.000 Crazy because it wasn't even a thing until eighty nine. 831 00:41:40.679 --> 00:41:44.039 But like, okay, but no, look, I got divorced my 832 00:41:44.199 --> 00:41:47.599 first divorce, my credit score was over a seven hundred. 833 00:41:47.960 --> 00:41:50.840 The day my divorce got finalized, it dropped to a 834 00:41:50.880 --> 00:41:51.519 three point fifty. 835 00:41:53.280 --> 00:41:55.760 That's insane. Yeah, I know that my mom's dropped. I 836 00:41:55.800 --> 00:41:58.119 think a couple I mean, but when I was married 837 00:41:58.159 --> 00:42:00.519 and got divorced and stuff, mine dropped I think a 838 00:42:00.679 --> 00:42:04.679 hundred points yeahbe almost one hundred. And it had nothing 839 00:42:04.719 --> 00:42:05.639 to do with me either. 840 00:42:05.559 --> 00:42:09.639 Nothing, how it actually happened. It actually had nothing to 841 00:42:09.800 --> 00:42:11.920 do with you, Raven. It had everything to do with 842 00:42:12.159 --> 00:42:15.360 the predictive analytics and the risk management. 843 00:42:15.480 --> 00:42:20.280 I got divorced, and now I became a higher risk category, right, Yeah, yeah, 844 00:42:20.400 --> 00:42:22.239 that's what I thought. Yeah, because you're a because you 845 00:42:22.280 --> 00:42:23.840 don't have as study of an income. 846 00:42:24.159 --> 00:42:28.199 Because statistically, a woman living in your section of Louisiana 847 00:42:28.280 --> 00:42:31.639 who has recently divorced is more likely going to start 848 00:42:31.719 --> 00:42:34.199 defaulting on some loans that she has and missing some 849 00:42:34.320 --> 00:42:37.679 payments from time to time. That is what the FIICO 850 00:42:38.079 --> 00:42:41.360 decided arbitrarily. That has nothing to do with you personally, 851 00:42:41.440 --> 00:42:43.280 even if you have never missed a payment and even 852 00:42:43.320 --> 00:42:45.280 paid a little more each time and all that, that 853 00:42:45.320 --> 00:42:47.760 has nothing to do with your credit score at all. 854 00:42:49.000 --> 00:42:50.119 I actually didn't know any of this. 855 00:42:50.599 --> 00:42:52.960 I didn't either, which is why I'm fucking pissedl now. 856 00:42:53.599 --> 00:42:55.000 Yeah who. 857 00:42:55.280 --> 00:42:57.559 I had to calm down before I started this episode 858 00:42:57.599 --> 00:43:00.320 because as I'm as I learned all this and looking 859 00:43:00.360 --> 00:43:03.039 at what my credit score currently is, which I'm I'm 860 00:43:03.800 --> 00:43:05.079 guessing great. 861 00:43:04.920 --> 00:43:07.000 Now I'm gonna have to look at mine, God damn it. 862 00:43:07.119 --> 00:43:09.559 But be careful if you check it too many times, 863 00:43:09.960 --> 00:43:11.519 they'll also kid deed. 864 00:43:11.760 --> 00:43:14.800 I don't fucking understand this whole thing. It's because when 865 00:43:14.800 --> 00:43:17.400 you're easy, how Yeah, when you keep us down in every. 866 00:43:17.239 --> 00:43:20.159 Way, whenever you do a pull on your credit score, 867 00:43:20.800 --> 00:43:24.199 they the bureau sees it as the only reason somebody 868 00:43:24.280 --> 00:43:26.159 would pull this. You are allowed to pull it like 869 00:43:26.239 --> 00:43:28.400 once or twice a year for no reason in you're fine, 870 00:43:28.639 --> 00:43:30.360 But if you pull it too many times, they're like, oh, 871 00:43:30.440 --> 00:43:32.159 the only reason you would have had this pulled is 872 00:43:32.199 --> 00:43:33.840 if you were trying to get approved for a loan, 873 00:43:34.199 --> 00:43:36.039 And if we see no new debt to your name, 874 00:43:36.320 --> 00:43:38.760 but you pulled your credit score six times this past year, 875 00:43:39.119 --> 00:43:42.639 that must mean that you got denied four times for loans. 876 00:43:42.760 --> 00:43:44.199 So we're gonna go ahead and den you a couple 877 00:43:44.239 --> 00:43:48.079 points there. Yeah, man, I just looked at mine. 878 00:43:48.079 --> 00:43:48.800 I want to look at it. 879 00:43:48.960 --> 00:43:50.920 I warned you. I fucking warned you. 880 00:43:52.079 --> 00:43:53.880 Wow, that's that's rough. 881 00:43:54.159 --> 00:43:56.480 Good cult members, if you're listening, don't don't go do that. 882 00:43:57.000 --> 00:43:58.679 Don't go do that. Just do what you're supposed to do. 883 00:43:59.159 --> 00:44:01.480 Call one of these row companies that's supposed to help 884 00:44:01.519 --> 00:44:03.320 you with your credit score. They can look at it 885 00:44:03.400 --> 00:44:06.079 without it dinging you as an individual, look at it. 886 00:44:06.079 --> 00:44:07.760 On your you can leave it on your bank account, 887 00:44:07.880 --> 00:44:09.920 like Chase Bank. That's what I'm looking at. Chase Bank 888 00:44:09.920 --> 00:44:11.079 will tell you everything you want to know. 889 00:44:11.480 --> 00:44:14.960 They're pulling it from Equifax, huh, which is one of 890 00:44:15.000 --> 00:44:17.719 the three main top dogs in this country. And yes, 891 00:44:17.800 --> 00:44:19.599 if you pull that too many times, it's still going 892 00:44:19.639 --> 00:44:20.000 to hit you. 893 00:44:22.119 --> 00:44:23.199 I'm gonna cry right now. 894 00:44:23.920 --> 00:44:24.400 I'm sorry. 895 00:44:24.480 --> 00:44:25.880 Read the article. I'm gonna cry. 896 00:44:26.119 --> 00:44:28.639 So let's learn a little bit here from Carrington Labs 897 00:44:28.639 --> 00:44:31.960 about the role of predictive analytics in modern risk management 898 00:44:32.079 --> 00:44:38.119 and strengthening credit quality. Strengthening credit quality, predictive analytics drives 899 00:44:38.440 --> 00:44:41.679 could be your key to better credit quality, tackling rising 900 00:44:41.760 --> 00:44:45.719 critical criticized loans, and strengthening risk management in today's tough 901 00:44:45.880 --> 00:44:50.599 economic climate. In today's volatile economic environment, credit quality has 902 00:44:50.639 --> 00:44:53.880 become a growing concern for US lenders and financial institutions. 903 00:44:54.239 --> 00:44:57.400 Recent reports, such as those from the SMP Global show 904 00:44:57.440 --> 00:45:01.599 a significant rise in criticized loans, with some institutions nearing 905 00:45:01.719 --> 00:45:05.960 levels not seen since the Great Financial Crisis. These trends 906 00:45:06.039 --> 00:45:09.480 underline the pressing need for robust, proactive credit risk management 907 00:45:09.559 --> 00:45:14.800 to safeguard institutional stability and ensure regulatory compliance. Predictive analytics 908 00:45:15.119 --> 00:45:18.039 is emerging as a critical tool for addressing these challenges, 909 00:45:18.320 --> 00:45:23.119 providing lenders with actionable insights to navigate evolving risks and 910 00:45:23.320 --> 00:45:27.000 maintaining healthy portfolios. Essentially, it's saying that this is making 911 00:45:27.039 --> 00:45:28.880 it to where banks know to loan you or not 912 00:45:29.079 --> 00:45:31.320 loan you things based off the market value, not off 913 00:45:31.360 --> 00:45:34.519 of you as an individual. But let's read more credit 914 00:45:34.599 --> 00:45:38.559 quality challenges facing US lenders and financial institutions, because yes, 915 00:45:38.960 --> 00:45:44.559 the banks, they are in trouble. These financial institutions. They 916 00:45:44.639 --> 00:45:47.280 need help, y'all, they need your thoughts and prayers all. 917 00:45:47.440 --> 00:45:49.400 I love how they always when they talk about the 918 00:45:49.599 --> 00:45:53.000 national debt for the United States, it's like some g 919 00:45:53.239 --> 00:45:55.599 rano mass number like they threw out in the ether, 920 00:45:55.800 --> 00:45:59.320 and it's like, there's no actual tangible money. There's not 921 00:45:59.400 --> 00:46:03.400 like a mountain of gold sitting somewhere and a dragon's 922 00:46:03.480 --> 00:46:04.280 watching over it. 923 00:46:04.400 --> 00:46:08.480 And that's the amount that we owe. It's literally just like, yeah, 924 00:46:08.559 --> 00:46:10.360 you owe a couple trillion, It's whatever. 925 00:46:10.639 --> 00:46:12.920 No, Fort Knox is empty. We sold all that to 926 00:46:13.000 --> 00:46:14.800 Europe over the past couple of decades, which, as a 927 00:46:14.840 --> 00:46:16.559 matter of fact, we might even do a whole episode 928 00:46:16.599 --> 00:46:19.880 on that, by the way, because the movement of gold 929 00:46:19.920 --> 00:46:21.760 from point A to point B is something that can 930 00:46:21.960 --> 00:46:25.760 absolutely be tracked and has been tracked. And I feel 931 00:46:25.760 --> 00:46:27.679 like a lot of people we get we talk about 932 00:46:27.719 --> 00:46:29.960 that a lot like Fort Knox is empty. Our Boni's 933 00:46:30.000 --> 00:46:32.880 not gold backed anymore. But ba bop no, no, really, 934 00:46:33.360 --> 00:46:34.239 like America has. 935 00:46:34.280 --> 00:46:37.760 No gold like, so we just I don't want to understand. 936 00:46:37.760 --> 00:46:40.679 It's all fiat currency. It's all how our dollar is 937 00:46:40.760 --> 00:46:43.639 wagered against other dollars from around the world, off of 938 00:46:43.760 --> 00:46:46.199 other countries based off of how our economy and our 939 00:46:46.239 --> 00:46:48.599 GDP is doing and how the oil prices are looking. 940 00:46:48.679 --> 00:46:49.840 It has nothing to do with us. 941 00:46:51.239 --> 00:46:54.119 That's just crazy. Yeah, the whole money system in America 942 00:46:54.280 --> 00:46:55.079 is insane to me. 943 00:46:55.760 --> 00:46:58.920 Yeah, as of this moment, the US dollar is still 944 00:46:59.039 --> 00:47:02.000 top dog. It's still the international trade currency because of 945 00:47:02.079 --> 00:47:05.079 the petro dollar and all these things. It's great, we 946 00:47:05.280 --> 00:47:07.719 are we are closer now than we have ever been 947 00:47:07.800 --> 00:47:10.119 before to that being dethroned. And a lot of people 948 00:47:10.119 --> 00:47:11.639 will say it's because of crypto. A lot of people 949 00:47:11.719 --> 00:47:13.039 say it's because of bricks. A lot of people will 950 00:47:13.039 --> 00:47:15.960 say it's because of Trump. But there's multiple levels to that. 951 00:47:16.079 --> 00:47:19.360 There's not one solid answer. There's a few answers that 952 00:47:19.519 --> 00:47:24.679 all tie into one amalgamation of butt fuckery that has 953 00:47:24.760 --> 00:47:27.639 screwed us as far as our our finances are concerned. 954 00:47:27.960 --> 00:47:30.920 But that is a talk for another day. Good cult 955 00:47:30.960 --> 00:47:33.400 members stand by for the Fort Knox Being Empty episode. 956 00:47:33.400 --> 00:47:34.719 I've actually been wanting to do that for a couple 957 00:47:34.760 --> 00:47:36.480 of months, so I'll do it. I'll do a deep 958 00:47:36.519 --> 00:47:39.119 dive on that one here soon anyway. So again, the 959 00:47:39.199 --> 00:47:43.079 credit quality challenges facing the US lenders and financial institutions 960 00:47:43.280 --> 00:47:46.960 for yeah, for real, right, criticized loans defined as loans 961 00:47:47.000 --> 00:47:50.320 with potential weaknesses that could jeopardize repayment are becoming an 962 00:47:50.440 --> 00:47:56.559 increasing burden for banks. For banks, so a loan that 963 00:47:57.159 --> 00:48:00.360 has an issue with maybe this loan won't be re paid. 964 00:48:01.000 --> 00:48:03.760 That's bad for the banks, not the person who's getting 965 00:48:03.760 --> 00:48:06.400 their house foreclosed on, because again, the credit doesn't give 966 00:48:06.400 --> 00:48:09.239 a fuck. If you lost your job, got hurt and 967 00:48:09.320 --> 00:48:11.719 can't go to work, that they couldn't give a fuck less. 968 00:48:12.159 --> 00:48:15.320 It's all about your actionable debt, which we're gonna talk 969 00:48:15.360 --> 00:48:20.519 more about. Factors contributing to this trend include persistent inflation 970 00:48:20.719 --> 00:48:25.480 and its impact on borrowers' ability to meet obligations. Okay, 971 00:48:25.679 --> 00:48:27.760 this is accurate. Inflation goes up and people are having 972 00:48:27.800 --> 00:48:31.440 trouble making their payments fair enough. Rising interest rates putting 973 00:48:31.440 --> 00:48:35.519 pressure on debt servicing costs. That's the thing. Interest rates 974 00:48:35.519 --> 00:48:37.119 are high as fuck, and Trump's trying to fight that 975 00:48:37.239 --> 00:48:39.159 right now, but he's doing it in a way that 976 00:48:39.239 --> 00:48:42.440 could lead to mass inflation, which we talked about quantitative 977 00:48:42.480 --> 00:48:45.079 easing on the last episode of The Cajon Night, which 978 00:48:45.079 --> 00:48:46.280 we're not going to get into that, right now, but 979 00:48:46.519 --> 00:48:48.639 that's an accurate statement to say that interest rates are 980 00:48:48.639 --> 00:48:52.880 also screwing over the customer challenges and underwriting standards during 981 00:48:53.000 --> 00:48:57.639 periods of rapid loan growth housing bubble. Essentially, that's the 982 00:48:57.760 --> 00:49:02.440 housing bubble. Kind of a surmised into a one sentence statement. 983 00:49:03.079 --> 00:49:06.559 These challenges highlight the importance of taking more vigilant and 984 00:49:06.679 --> 00:49:10.519 forward looking approaches to credit risk management, where early identification 985 00:49:10.719 --> 00:49:14.880 of an at risk loan can mitigate potential losses. They're 986 00:49:14.880 --> 00:49:16.800 saying it's going to be hard to get loans because 987 00:49:16.800 --> 00:49:19.119 if it's too risky, they're just gonna say no. So 988 00:49:19.320 --> 00:49:23.559 why vigilant credit risk management is essential. Effective credit risk 989 00:49:23.760 --> 00:49:27.519 management goes beyond reactive measures. It requires a proactive strategy 990 00:49:27.559 --> 00:49:31.400 that leverages data to predict and address potential issues before 991 00:49:31.480 --> 00:49:34.880 they escalate, i e. Denying a loan before it gets 992 00:49:34.920 --> 00:49:36.719 approved so that the bank doesn't lose any money on 993 00:49:36.760 --> 00:49:40.840 the whole shebang. Vigilance is particularly critical in the current 994 00:49:40.960 --> 00:49:45.400 regulatory landscape, where institutions face heightened scrutiny and reputable risks 995 00:49:45.519 --> 00:49:49.840 tied to credit quality quality. Key components of robust credit 996 00:49:49.920 --> 00:49:54.079 risk management include real time monitoring of loan performance and 997 00:49:54.199 --> 00:49:57.760 borrower behavior. They're watching your dollars and they're watching your 998 00:49:57.840 --> 00:50:00.719 numbers to see up, down, left, right, how things are flowing. 999 00:50:01.039 --> 00:50:03.400 And not for you as an individual, for a lot 1000 00:50:03.440 --> 00:50:06.360 of people that look like you, that make similar money 1001 00:50:06.599 --> 00:50:08.800 like you, that live in the area that you live in. 1002 00:50:09.360 --> 00:50:11.519 It's all about the the litmus test. It's like the 1003 00:50:11.559 --> 00:50:15.199 biggest VENN diagram ever. So they're talking about real time 1004 00:50:15.280 --> 00:50:19.199 monitoring all these things, which ties into data collection. We're 1005 00:50:19.199 --> 00:50:20.400 gonna get to that in a bit, which I do 1006 00:50:20.480 --> 00:50:25.480 believe ties into AI comprehensive portfolio segmentation to identify high 1007 00:50:25.559 --> 00:50:29.280 risk segments, essentially noticing that, hey, you got this guy 1008 00:50:29.320 --> 00:50:32.039 who's buying a bunch of toys. He just got him 1009 00:50:32.039 --> 00:50:34.960 a good job and how hit paying industry, and he's 1010 00:50:35.000 --> 00:50:37.800 buying a bunch of toys. But this is also seasonal work, 1011 00:50:37.880 --> 00:50:39.559 and give it another eight months and he'll be out 1012 00:50:39.599 --> 00:50:40.960 of a job, and all this shit's going to get, 1013 00:50:41.039 --> 00:50:45.920 you know, repossessed, things like this, right. Adoption of advanced 1014 00:50:45.960 --> 00:50:50.679 tools that integrate predictive capabilities to uncover emerging trends in 1015 00:50:50.800 --> 00:50:54.119 borrower risk I e. Credit score. 1016 00:50:54.719 --> 00:50:55.559 Yeah, that's crazy. 1017 00:50:56.280 --> 00:50:58.280 I mean I looked up while you're talking about like 1018 00:50:58.440 --> 00:51:01.800 risks for the banks and stuff. So from twenty from 1019 00:51:01.840 --> 00:51:04.840 two thousand and one to twenty twenty six, five hundred 1020 00:51:04.840 --> 00:51:06.800 and seventy banks. 1021 00:51:06.559 --> 00:51:10.679 Have failed and closed. Yeah, and it's just talking about 1022 00:51:10.920 --> 00:51:14.559 that since the seventies and another five hundred I guess 1023 00:51:14.599 --> 00:51:19.719 have closed major factors due to economic recessions and financial crisis, 1024 00:51:20.400 --> 00:51:25.840 mergers and acquisitions. It's talking about like the stability of 1025 00:51:25.880 --> 00:51:29.000 the bank. The smaller banks, they can't handle loaning stuff 1026 00:51:29.039 --> 00:51:30.519 out and them not getting paid back. 1027 00:51:31.239 --> 00:51:33.519 Yeah, a lot of these mom and pop banks. And 1028 00:51:33.599 --> 00:51:36.320 by mom and pop banks, I mean like, I don't know, 1029 00:51:36.440 --> 00:51:41.679 let's just throw it out the first National Firefighters Credit 1030 00:51:41.840 --> 00:51:45.360 Union or something, right, or you're a Red River credit 1031 00:51:45.480 --> 00:51:48.880 union or or any of these little small financial institutions 1032 00:51:48.920 --> 00:51:50.559 that might be local to you. Yeah, they might have 1033 00:51:51.039 --> 00:51:53.400 four or five buildings, but it's not like this is 1034 00:51:53.440 --> 00:51:56.639 a national bank or a national credit union or anything 1035 00:51:56.719 --> 00:52:00.400 like that. Right when the financial crisis hit, a lot 1036 00:52:00.480 --> 00:52:05.239 of these places got fucked hard, and then you had 1037 00:52:05.760 --> 00:52:09.039 the capital ones, the Chase banks, right that would come 1038 00:52:09.119 --> 00:52:11.480 in and would buy up these mom and pop shops 1039 00:52:11.960 --> 00:52:15.239 in some big merger, some big acquisition. Whatever. The case was, 1040 00:52:15.880 --> 00:52:18.239 and then realize that all these loans are really bad 1041 00:52:18.280 --> 00:52:21.079 for their bottom dollars, so they just shut them down. Yeah, 1042 00:52:21.440 --> 00:52:23.239 and that's how it works in the world a big business. 1043 00:52:24.199 --> 00:52:26.480 It's crazy. Is that reminds me of like Amazon and 1044 00:52:26.519 --> 00:52:27.679 Walmart and Target. 1045 00:52:27.920 --> 00:52:32.400 Yes, exactly the same concept with businesses as it is 1046 00:52:32.480 --> 00:52:33.000 with banks. 1047 00:52:33.639 --> 00:52:37.360 Absolutely, but it's not a monopoly because if there's at 1048 00:52:37.440 --> 00:52:39.960 least like two or three top dog banks out there 1049 00:52:40.079 --> 00:52:44.039 that are competing quote unquote against each other, then it's 1050 00:52:44.079 --> 00:52:45.760 not a monopoly for them to pull up and just 1051 00:52:45.800 --> 00:52:47.880 shut down all the local mom and pop shops and 1052 00:52:47.920 --> 00:52:50.840 then once everything's gone and they're the only bank in town, 1053 00:52:51.039 --> 00:52:52.800 jack up interest rates to a level to where the 1054 00:52:52.840 --> 00:52:57.599 people are fucked. That's not illegal because there is another 1055 00:52:57.679 --> 00:53:01.159 bank you could go to. Yeah, I know. It doesn't 1056 00:53:01.199 --> 00:53:03.639 all have to be tied into JP Morgan, although it 1057 00:53:03.679 --> 00:53:08.079 pretty much all is tied into anyway anyway. So anyway, 1058 00:53:08.360 --> 00:53:11.239 in a summary of this article, here the key takeaways. 1059 00:53:11.639 --> 00:53:14.800 Number one, the risk in criticized loans highlights the need 1060 00:53:14.880 --> 00:53:19.599 for proactive and vigilant credit risk management to safeguard institutional stability. 1061 00:53:20.000 --> 00:53:22.400 They're saying that we need to lean more heavily into 1062 00:53:22.559 --> 00:53:24.960 this arbitrary credit score that ain't got shit to do 1063 00:53:25.039 --> 00:53:28.639 with you. Number two, Predictive analytics offer a powerful tool 1064 00:53:28.719 --> 00:53:32.840 for identifying early warning signals, optimizing risk mitigation, and enhancing 1065 00:53:32.880 --> 00:53:36.280 decision making. They're saying that the bank officers no longer 1066 00:53:36.360 --> 00:53:39.239 have to rely on their intuition about if a bank, 1067 00:53:39.599 --> 00:53:41.039 if a loan is going to be a good one 1068 00:53:41.119 --> 00:53:44.840 or not. They could use this number to say, hey, 1069 00:53:44.880 --> 00:53:46.760 I'm sorry I didn't approve you of the loan because 1070 00:53:46.760 --> 00:53:48.760 you have a low credit score. And they're doing that, 1071 00:53:49.000 --> 00:53:53.119 Like they said, an early warning signal, optimizing risk mitigation 1072 00:53:53.320 --> 00:53:55.519 is to protect their own ass. That's all it's ever 1073 00:53:55.599 --> 00:54:00.360 been about. And then number three, by adopting explainable AI 1074 00:54:01.400 --> 00:54:05.360 and forward looking strategies, banks can strengthen credit quality, ensure 1075 00:54:05.440 --> 00:54:09.719 regulatory compliance, and drive sustainable growth. Hey y'all, remember how 1076 00:54:10.039 --> 00:54:12.960 we've been talking right for about a year now about 1077 00:54:13.000 --> 00:54:16.000 how the AI is all actually just collecting your data. 1078 00:54:16.400 --> 00:54:19.840 That's all it's actually about. It's about spying on you. Yeah, 1079 00:54:20.679 --> 00:54:23.079 it's gonna get to a point, and it's already there, 1080 00:54:23.079 --> 00:54:26.079 in my opinion, where the AI that's operating on your 1081 00:54:26.199 --> 00:54:29.199 phone is watching every single app that you're on. They're 1082 00:54:29.280 --> 00:54:33.039 watching your TEAMU orders, they're watching your Amazon orders. And 1083 00:54:33.519 --> 00:54:35.760 keep in mind, this same data knows how much money 1084 00:54:35.760 --> 00:54:38.199 you have in your bank account and what your average 1085 00:54:38.239 --> 00:54:41.239 household income is on a monthly basis. They're gonna start 1086 00:54:41.320 --> 00:54:44.639 using that along with everything else, to decide if you, 1087 00:54:44.880 --> 00:54:50.400 as an individual, are a risky loan or not. And 1088 00:54:50.480 --> 00:54:52.840 then they're going to compare it against the national average 1089 00:54:53.039 --> 00:54:55.719 or the credit score. It's all tied together here. 1090 00:54:56.880 --> 00:54:59.280 Well, what's interesting is you can actually go in and 1091 00:54:59.559 --> 00:55:02.280 if you you use certain apps or you try to 1092 00:55:02.320 --> 00:55:05.559 pay for certain things, they actually link your bank accounts 1093 00:55:05.679 --> 00:55:10.119 to them. So like a firm or shop, you can 1094 00:55:10.280 --> 00:55:12.880 link your bank accounts to it, and they actually monitor 1095 00:55:13.039 --> 00:55:16.880 your bank accounts through the data collection, and it will 1096 00:55:17.360 --> 00:55:20.159 it's easier quote unquote for you to pay, but it 1097 00:55:20.320 --> 00:55:21.920 monitors everything that you're doing. 1098 00:55:22.360 --> 00:55:24.559 And this is also why I've told so many people 1099 00:55:25.239 --> 00:55:30.599 do not use Klarna or any of these other loan things. Listen, 1100 00:55:31.119 --> 00:55:33.719 I know I use it a good bit. If you 1101 00:55:33.840 --> 00:55:36.599 are in a position where you literally have to make 1102 00:55:36.639 --> 00:55:38.960 this two hundred dollars expenditure happen and you have no 1103 00:55:39.079 --> 00:55:42.000 other way. Basically, use Klarna as if it's a loan shark, 1104 00:55:42.599 --> 00:55:45.480 that it should be your last resort. If you're using 1105 00:55:45.559 --> 00:55:49.719 Klarna to put a Chipotle order on a payment plan. 1106 00:55:50.599 --> 00:55:53.039 I can't express in words how fucked you're gonna be 1107 00:55:53.119 --> 00:55:55.360 when you try to apply for an actual loan for 1108 00:55:55.440 --> 00:55:57.400 a car, a house, or whatever, and they're going to say, hey, 1109 00:55:57.440 --> 00:56:00.519 wait a minute. In twenty twenty five, you open sixty 1110 00:56:00.679 --> 00:56:04.400 five individual lines of credit and how many of those 1111 00:56:04.440 --> 00:56:06.840 did you actually pay off? Because how many people are 1112 00:56:06.960 --> 00:56:08.920 thinking about that. Oh God, I forgot I bought you 1113 00:56:09.039 --> 00:56:11.079 pote off of Klarina three months ago. I better pay 1114 00:56:11.119 --> 00:56:13.840 that shit off before it gets reported. Clarina is reporting 1115 00:56:14.000 --> 00:56:17.400 every single thing to the credit bureau everything. 1116 00:56:19.079 --> 00:56:22.119 It's oh they they report everything, and you they they 1117 00:56:22.280 --> 00:56:24.480 remind you and all the stuff. But you know they 1118 00:56:24.519 --> 00:56:26.320 will report the shit out of you. 1119 00:56:26.559 --> 00:56:29.360 So if you're gonna use Klarna or and that's just 1120 00:56:29.440 --> 00:56:32.840 one example, there's there's a few, uh you know, small 1121 00:56:33.079 --> 00:56:37.480 instant loan acceptance apps out there, and shit, if you're 1122 00:56:37.519 --> 00:56:40.519 going to use it, use it as the same level 1123 00:56:40.559 --> 00:56:44.320 as you're going to a mafia boss to get an 1124 00:56:44.360 --> 00:56:47.440 amount of money because you have no other options. If 1125 00:56:47.480 --> 00:56:51.199 you're using it to buy your lunch. Then we got 1126 00:56:51.280 --> 00:56:53.280 we got problems, big problems. 1127 00:56:54.760 --> 00:56:57.159 Yeah, it's it's tough because some of those things, like 1128 00:56:57.239 --> 00:56:59.679 they like the affirm will give you a large amount 1129 00:56:59.679 --> 00:57:02.360 of credit it, Yes they will, you like a seventeen 1130 00:57:02.400 --> 00:57:05.079 thousand dollars credit line. Fuck yeah, they will, and they 1131 00:57:05.159 --> 00:57:07.639 can give you it will give you cash pay, like 1132 00:57:07.920 --> 00:57:10.199 if you need cash. It will be able to sync 1133 00:57:10.280 --> 00:57:12.440 to your Apple Pay and you can use your Apple Pay, 1134 00:57:12.920 --> 00:57:15.440 or you can use use it as like an Apple Pay, 1135 00:57:15.840 --> 00:57:17.679 and you can request it however much you want. So 1136 00:57:17.760 --> 00:57:20.079 you want three hundred dollars, then you add in the interest, 1137 00:57:20.159 --> 00:57:23.760 so you do three fifty, and then whatever you don't 1138 00:57:23.880 --> 00:57:28.239 use it just sits there. So yep, it's a smart 1139 00:57:28.320 --> 00:57:30.679 way to help people in one way, but it's also 1140 00:57:30.719 --> 00:57:32.920 another way to fuck you completely in the other on 1141 00:57:33.039 --> 00:57:33.559 the back end. 1142 00:57:33.679 --> 00:57:37.519 So exactly. So, now as we're talking about all these things, 1143 00:57:37.599 --> 00:57:40.400 let's learn a little bit more about Bill Fair and 1144 00:57:40.559 --> 00:57:45.079 Earl Isaac, the visionary founders of the Fair Isaac and 1145 00:57:45.199 --> 00:57:50.360 Company aka FICO, the data analytics firm now known globally 1146 00:57:50.440 --> 00:57:56.559 as FICO, the data analytics Firm. That's all FICO is 1147 00:57:56.800 --> 00:58:00.400 it's not a credit bureau it's a data analytics firm 1148 00:58:00.960 --> 00:58:03.400 that is being used by the credit bureaus. 1149 00:58:04.920 --> 00:58:07.559 That's crazy. So we base our entire lives off of 1150 00:58:07.639 --> 00:58:10.320 this thing that's not given okay. 1151 00:58:10.280 --> 00:58:12.960 Has nothing to do enoughing, So the partner should do 1152 00:58:13.039 --> 00:58:16.639 with something exactly the meeting at SRI. So Bill Fair, 1153 00:58:16.719 --> 00:58:20.719 an engineer, and earl Isaac, a mathematician, met while working 1154 00:58:20.880 --> 00:58:24.920 at the Stanford or Stanford Research Institute SRI in the 1155 00:58:25.079 --> 00:58:30.039 early nineteen fifties. There's also some some conspiracy surrounding SRI. 1156 00:58:30.239 --> 00:58:32.880 To be completely honest with you, the company launch was 1157 00:58:32.920 --> 00:58:36.039 in nineteen fifty six. They founded their company with an 1158 00:58:36.079 --> 00:58:40.119 initial investment of just four hundred dollars each. This is 1159 00:58:40.159 --> 00:58:42.559 a small thing. They were just trying to crunch numbers 1160 00:58:42.599 --> 00:58:44.119 to make loans dollars. 1161 00:58:44.159 --> 00:58:46.440 They were able to change everybody's lives. 1162 00:58:46.519 --> 00:58:50.719 For the forever essentially. And again, most banks didn't really 1163 00:58:51.320 --> 00:58:53.800 do anything with this for a couple of decades because 1164 00:58:54.400 --> 00:58:57.000 they saw it as it took power away from them. 1165 00:58:57.320 --> 00:58:59.239 It took power away from their loan officers, it took 1166 00:58:59.239 --> 00:59:02.519 power away from the and now anybody could get approved 1167 00:59:02.559 --> 00:59:05.760 for a loan that could have some dangerous implications, you 1168 00:59:05.800 --> 00:59:07.599 know what I'm sarreing. Especially, that was the mindset of 1169 00:59:07.599 --> 00:59:11.079 the nineteen fifties original office. They began operating in a 1170 00:59:11.119 --> 00:59:14.920 small studio apartment in San Rafael, California, right outside of 1171 00:59:14.920 --> 00:59:19.239 San Francisco. The core philosophy their business was built on 1172 00:59:19.360 --> 00:59:23.760 the then radical idea that data and mathematical algorithms could 1173 00:59:23.800 --> 00:59:27.840 improve business decisions by making them more objective and consistent. 1174 00:59:29.000 --> 00:59:31.400 Right there there. Again, I don't think they had the 1175 00:59:31.480 --> 00:59:34.920 intention of fucking anyone over They were saying, like, so 1176 00:59:35.039 --> 00:59:37.719 you got this guy who has never done anything wrong, 1177 00:59:37.800 --> 00:59:39.760 but he just got denied alone over here. And you 1178 00:59:39.840 --> 00:59:42.440 got this other guy who he's getting approved for everything 1179 00:59:42.480 --> 00:59:44.480 even though he defaults on stuff, but his buddy is 1180 00:59:44.519 --> 00:59:47.079 the bank teller. Like, we've got we gotta find some 1181 00:59:47.119 --> 00:59:49.480 way to standardize this and try to make it equal. 1182 00:59:49.960 --> 00:59:53.280 I don't think they set out to fuck people, at 1183 00:59:53.360 --> 00:59:57.760 least not in the onset, but as all good things do. 1184 00:59:59.000 --> 01:00:01.000 Let and you know, let's let's go a little bit 1185 01:00:01.039 --> 01:00:03.000 deeper into at least one of them. So William Fair, 1186 01:00:03.039 --> 01:00:04.800 this is actually his obituary. I'm not going to read 1187 01:00:04.800 --> 01:00:08.000 the entire thing, but this is also pretty impressive, so 1188 01:00:08.119 --> 01:00:10.920 his company began in nineteen fifty six as Fico Right. 1189 01:00:11.000 --> 01:00:13.840 He was an engineer, and we talked about earl Isaac. 1190 01:00:15.000 --> 01:00:17.760 Over the years, the company gained success by providing analytics, 1191 01:00:17.840 --> 01:00:22.239 software services, and Fico Scores, the most used credit scores 1192 01:00:22.320 --> 01:00:25.239 in the world, not the US, the world, to help 1193 01:00:25.320 --> 01:00:29.199 financial service companies decide how to do business. Customers included 1194 01:00:29.239 --> 01:00:34.119 credit card issuers, banks, retailers, auto companies, and utilities. Its 1195 01:00:34.199 --> 01:00:37.960 early success included work with Conrad Hilton, who hired Fiko 1196 01:00:38.079 --> 01:00:41.440 to design, program and install a billing system for Carte 1197 01:00:41.480 --> 01:00:45.119 Blanche in nineteen fifty seven, a nineteen sixty three job 1198 01:00:45.199 --> 01:00:48.639 from Montgomery Ward building a credit scoring system for that 1199 01:00:48.760 --> 01:00:53.079 department store chain. Fair moved his company in nineteen sixty 1200 01:00:53.119 --> 01:00:56.599 one to San Francisco's Financial district and in the nineteen 1201 01:00:56.639 --> 01:00:59.800 seventies worked with the Connecticut Bank and Trust and Wells Fargo, 1202 01:01:00.280 --> 01:01:03.840 among other firms. In nineteen seventy seven, the company implemented 1203 01:01:03.880 --> 01:01:06.840 the first credit scoring system at a European bank, and 1204 01:01:07.000 --> 01:01:10.039 five years later opened its first European office in Monaco. 1205 01:01:10.719 --> 01:01:14.920 Of course it was Monaco, I know. Between nineteen sixty 1206 01:01:15.000 --> 01:01:17.639 and his retirement in nineteen ninety one. Fair served as 1207 01:01:17.719 --> 01:01:20.480 president of his company and later as chairman and technical 1208 01:01:20.519 --> 01:01:24.400 consultant to his firm and subsidiary, Dyna Mark, Inc. The 1209 01:01:24.519 --> 01:01:26.800 year he retired, the company made its credit bureau risk 1210 01:01:26.840 --> 01:01:31.800 scores available to at all three major US credit reporting agencies. 1211 01:01:32.360 --> 01:01:33.880 We're going to talk about those here in a bit. 1212 01:01:34.000 --> 01:01:36.639 That's the Equifax and the TransUnion, all the things. 1213 01:01:37.360 --> 01:01:40.039 Anyways, So well, I mean, Wells Fargo is under a 1214 01:01:40.079 --> 01:01:42.519 lot of scrutiny too because of the scandal with the 1215 01:01:44.280 --> 01:01:47.320 the causes and consequences, the fake account scandal, with the. 1216 01:01:47.400 --> 01:01:50.440 High pressure sales culture that led to the widespread fraud 1217 01:01:50.519 --> 01:01:55.639 and massive fines in corporate reform. Yep, it happened last 1218 01:01:55.719 --> 01:01:58.519 year in December and December twelfth, I think is when 1219 01:01:58.559 --> 01:02:02.639 it around that time. Well here is Wells Fargo bank 1220 01:02:02.679 --> 01:02:06.559 accounts scandal involved creation of millions of consumer accounts services 1221 01:02:06.639 --> 01:02:10.639 without consumer knowledge or consent over a period of years. 1222 01:02:10.719 --> 01:02:14.599 The widespread misconduct under sorry, I can't see what these glasses. 1223 01:02:14.679 --> 01:02:15.039 I get it? 1224 01:02:17.159 --> 01:02:18.440 Where am I public trust? 1225 01:02:18.559 --> 01:02:22.519 And expose a toxic internal culture driven by aggressive sale targets. 1226 01:02:22.840 --> 01:02:26.039 The fallout led to a massive financial appenalties and sweeping 1227 01:02:26.119 --> 01:02:29.960 regulations overnight that started. So yeah, they got in trouble, big, big, 1228 01:02:30.159 --> 01:02:33.800 big time, because from two thousand and two to twenty sixteen, 1229 01:02:34.199 --> 01:02:37.920 there was like three point five million potential unauthorized accounts 1230 01:02:37.960 --> 01:02:41.159 that were created that were checking savings, credit cards, et cetera. 1231 01:02:42.000 --> 01:02:46.079 And it was all used to drive up the cross 1232 01:02:46.239 --> 01:02:49.760 sailing and strategy to be able to change the algorithms 1233 01:02:49.880 --> 01:02:53.119 and data collections, and they use phony information. 1234 01:02:53.760 --> 01:02:55.679 There's actually a lot of it. There's a lot of. 1235 01:02:55.719 --> 01:03:00.280 Scandal around Wells Fargo itself. Actually that was my first 1236 01:03:00.320 --> 01:03:03.119 bank I ever had, and I had for like decades. 1237 01:03:03.119 --> 01:03:06.920 So there's gonna be some chicanery anytime you've got that 1238 01:03:07.119 --> 01:03:09.159 level of money being moved from point to point B. 1239 01:03:09.400 --> 01:03:12.440 So any of them, Honestly, I wouldn't be surprised if 1240 01:03:12.679 --> 01:03:15.360 Capital One and Chase and all these other big dogs 1241 01:03:15.480 --> 01:03:19.440 also have a long list of skeletons in the closet 1242 01:03:19.480 --> 01:03:19.960 so to space. 1243 01:03:20.000 --> 01:03:24.239 Well, you know Zell, right, uh huh transfer Zell. So 1244 01:03:24.960 --> 01:03:27.519 I'll give a little back story of this because I 1245 01:03:27.880 --> 01:03:30.599 actually went I actually had an open investigation with the 1246 01:03:30.639 --> 01:03:34.320 police about Zell and Chase Bank. So a few years 1247 01:03:34.320 --> 01:03:37.440 ago I got a phone call that was from a 1248 01:03:37.559 --> 01:03:40.719 Chase number. It was actually the Chase bank number. It 1249 01:03:40.880 --> 01:03:43.360 was not it was actually it was a person. And 1250 01:03:43.480 --> 01:03:46.800 so they went through the entire fraud thing. Now, I've 1251 01:03:46.880 --> 01:03:50.000 called the fraud company of the fraud department before many times, 1252 01:03:50.039 --> 01:03:51.719 so I kind of already had an idea of what, 1253 01:03:52.000 --> 01:03:54.519 you know, they're gonna ask me all the things they 1254 01:03:54.679 --> 01:03:56.719 called me because I had just tried to make a 1255 01:03:56.800 --> 01:03:59.480 purchase five minutes prior and I got flagged with a 1256 01:03:59.519 --> 01:04:02.679 fraud alert. They called me using the bank number, and 1257 01:04:02.679 --> 01:04:05.159 I was like, okay, went through all the steps, the 1258 01:04:05.239 --> 01:04:07.760 same steps that you always go through. They already had 1259 01:04:07.800 --> 01:04:10.239 my bank account information. They already had my bank account 1260 01:04:10.320 --> 01:04:14.840 number and everything. And I was really leary because they 1261 01:04:14.880 --> 01:04:17.119 were like, look, we need to transfer this money. I 1262 01:04:17.199 --> 01:04:19.599 happened at the time. I had just gotten a paycheck 1263 01:04:20.360 --> 01:04:22.880 and it was like a thousand dollars and they're like, 1264 01:04:22.920 --> 01:04:25.239 we're gonna have to transfer this thousand dollars out of 1265 01:04:25.280 --> 01:04:29.280 this bank account because you're already flagged for fraud. Now 1266 01:04:29.440 --> 01:04:31.440 multiple times, which I did, I could see on my 1267 01:04:31.719 --> 01:04:33.119 thing I was hit with fraud. 1268 01:04:33.599 --> 01:04:35.679 Well, they had hit my actual score with. 1269 01:04:35.760 --> 01:04:39.440 Fraud, and so they transferred it via ZEL, the first 1270 01:04:39.480 --> 01:04:42.159 time I've ever used ZEL, and I had never used it. 1271 01:04:42.239 --> 01:04:44.960 I didn't really know much about it, and they supposedly transferred. 1272 01:04:44.960 --> 01:04:47.559 I had two bank accounts, and I was like, well 1273 01:04:48.480 --> 01:04:48.840 I could. 1274 01:04:49.280 --> 01:04:51.199 They're like, you need to do this. Long story short. 1275 01:04:51.239 --> 01:04:51.960 I was really stupid. 1276 01:04:52.000 --> 01:04:53.599 I was really high stress that day, and it was 1277 01:04:53.719 --> 01:04:56.000 just one of those things of like I'm listening, but 1278 01:04:56.039 --> 01:05:00.719 I'm not fully listening. I realized within five seconds of 1279 01:05:00.800 --> 01:05:03.199 it happening. I was like no, like this is fake. 1280 01:05:03.639 --> 01:05:06.000 And I was like, no, I do not give you authorization. 1281 01:05:06.119 --> 01:05:07.679 Blah blah blah. They hung up on me. 1282 01:05:07.800 --> 01:05:10.320 I called right away to Chase Bank, and I actually 1283 01:05:10.400 --> 01:05:12.519 went and drove into the Chase Bank. I happened to 1284 01:05:12.559 --> 01:05:16.480 be right down the street, and they both on the 1285 01:05:16.599 --> 01:05:19.159 phone and in bank told me there's nothing they could 1286 01:05:19.199 --> 01:05:21.559 do about it, because if you actually go and read 1287 01:05:21.800 --> 01:05:24.840 all the information when you sign click that button about 1288 01:05:25.000 --> 01:05:28.480 zell and you call the numbers that are associated, they're 1289 01:05:28.519 --> 01:05:33.440 all offshore bank accounts, banking facilities. There's no one to 1290 01:05:33.519 --> 01:05:36.760 actually talk to. There's no one that's actually running it. 1291 01:05:37.199 --> 01:05:41.119 It's being filtered through offshore accounts via the big corporations, 1292 01:05:41.440 --> 01:05:43.119 And when I went to the police station and filed 1293 01:05:43.159 --> 01:05:45.559 a report because I was like, look, if you're not 1294 01:05:45.639 --> 01:05:48.440 going to help me, and this was literally a minute ago, 1295 01:05:49.079 --> 01:05:50.719 and you're not going to do anything to stop the 1296 01:05:50.760 --> 01:05:52.960 money from being taken out of my bank account because 1297 01:05:52.960 --> 01:05:55.039 they could stop it. They easily could have clicked the 1298 01:05:55.079 --> 01:05:58.039 button yea and stopped it before it went out, and 1299 01:05:58.159 --> 01:06:00.360 I actually traced back like where it was going is 1300 01:06:00.400 --> 01:06:01.800 going to a California location. 1301 01:06:02.280 --> 01:06:04.679 It hadn't processed all the way through. They refused to 1302 01:06:05.280 --> 01:06:05.519 do it. 1303 01:06:05.960 --> 01:06:08.719 So when I talked to the police and the fraud 1304 01:06:08.800 --> 01:06:11.039 department and all of that, they told me that they 1305 01:06:11.159 --> 01:06:15.440 believe that the banks are actually stealing money from people 1306 01:06:15.920 --> 01:06:18.159 and they're removing it and taking it and filtering it 1307 01:06:18.239 --> 01:06:20.639 into other things, because I'm not the first person that 1308 01:06:20.679 --> 01:06:24.639 they've had that actually explored the numbers inside of the 1309 01:06:24.880 --> 01:06:27.039 thing that you actually signed, because I was calling all 1310 01:06:27.039 --> 01:06:30.280 the numbers. I sat on the phone and it's total 1311 01:06:30.320 --> 01:06:32.519 offshore accounts. There's no one on the other end to 1312 01:06:32.639 --> 01:06:36.159 really help you do anything. And the guy, the police officer, 1313 01:06:36.320 --> 01:06:38.039 was like, you're not the first and not going to 1314 01:06:38.079 --> 01:06:39.920 be the last. We really do believe that some of 1315 01:06:39.960 --> 01:06:42.559 the banks are actually stealing money from the people, and 1316 01:06:42.719 --> 01:06:45.639 because they're using Zell, you sign a document that like 1317 01:06:46.119 --> 01:06:48.519 they're not liable, they're supposed to be. They're supposed to 1318 01:06:48.559 --> 01:06:50.719 be so in certain states they're supposed to be able 1319 01:06:50.760 --> 01:06:52.719 to pay you back. I think up to five thousand 1320 01:06:52.760 --> 01:06:54.760 dollars that you can prove that was fraud and all 1321 01:06:54.800 --> 01:06:57.480 of this stuff. There's certain there's like an act and 1322 01:06:57.559 --> 01:06:59.360 people went after it, and you can look up YouTube 1323 01:06:59.400 --> 01:07:03.760 videos about it. But the vast majority of people are 1324 01:07:03.840 --> 01:07:06.079 having money stolen from them, and they believe that the 1325 01:07:06.159 --> 01:07:08.840 banks are stealing it and they're using Zella as the 1326 01:07:08.880 --> 01:07:10.639 whole as the gimmick. 1327 01:07:10.719 --> 01:07:11.199 Pretty much. 1328 01:07:11.440 --> 01:07:13.199 Oh, I believe that one hundred percent. And I have 1329 01:07:13.280 --> 01:07:16.199 a hard I got a feeling here, Like you said, 1330 01:07:16.320 --> 01:07:19.360 state to state, Louisiana is the only state that operates 1331 01:07:19.440 --> 01:07:21.519 under Napoleonic law. So I have a weird feeling that 1332 01:07:21.599 --> 01:07:23.440 you did not, in fact get that money back. 1333 01:07:24.000 --> 01:07:26.599 I never got the money back. Chase Bank was pretty 1334 01:07:26.639 --> 01:07:31.360 much just like suck. Yeah, you know, the actual cause 1335 01:07:31.800 --> 01:07:34.519 so it went it could it was being transferred to 1336 01:07:35.000 --> 01:07:39.000 a Bank of America supposedly, and the Bank of America 1337 01:07:39.239 --> 01:07:41.639 fraud department. I actually talked to the manager of that 1338 01:07:42.400 --> 01:07:45.760 was super helpful and was like, look, you're not the 1339 01:07:45.840 --> 01:07:48.880 first person i've seen, and I can't physically stop this. 1340 01:07:49.440 --> 01:07:51.960 I can't do anything. I can see your money. 1341 01:07:51.800 --> 01:07:55.199 Coming to us quote unquote, and he's like, but if 1342 01:07:55.280 --> 01:07:58.599 it disappears, He's like, I'm telling you it's going into 1343 01:07:58.639 --> 01:08:01.719 offshore accounts because I can't even stop it even though 1344 01:08:01.760 --> 01:08:04.519 I can see it, and I'm so sorry, and it's 1345 01:08:04.599 --> 01:08:08.480 a whole underbelly scheme. And ever since then, I just 1346 01:08:08.519 --> 01:08:11.920 don't use Zell for that reason alone. But I will 1347 01:08:12.079 --> 01:08:15.400 say that when I really dug deep into it, I 1348 01:08:15.639 --> 01:08:19.439 believe that the money is being funneled for other purposes, 1349 01:08:19.800 --> 01:08:24.000 and it's being taken from US normal citizens and used 1350 01:08:24.079 --> 01:08:26.439 for whatever dot dot dot you want to look at 1351 01:08:26.479 --> 01:08:28.039 it for through the banking systems. 1352 01:08:28.319 --> 01:08:30.560 I think the last time I looked at the statistic, 1353 01:08:30.680 --> 01:08:34.800 it was like, every second, isn't it ten Americans suffer 1354 01:08:35.039 --> 01:08:39.199 some sort of fraud. I don't know it's a six. 1355 01:08:39.439 --> 01:08:42.880 I forget what it was, but basically, every second there 1356 01:08:43.000 --> 01:08:45.000 is bank fraud, whether it's with a credit card or 1357 01:08:45.000 --> 01:08:47.079 whether it's your bank account or a transfer going wrong 1358 01:08:47.159 --> 01:08:50.079 or whatever the case. Yeah, they are absolutely siphoning money 1359 01:08:50.199 --> 01:08:52.439 off the American people. Now, some of that, you're right, 1360 01:08:52.640 --> 01:08:56.119 is from offshore people that are scheming. Some of that, 1361 01:08:57.640 --> 01:09:00.600 in my humble opinion, is being done by the American 1362 01:09:00.680 --> 01:09:03.720 banking institution because, like we just heard about from Wells 1363 01:09:03.760 --> 01:09:07.560 Fargo and then from other banks that are in serious 1364 01:09:07.680 --> 01:09:10.960 financial dire streets right now, they got to make their 1365 01:09:11.000 --> 01:09:13.880 money somehow, and it's not good. It's I mean, yeah, 1366 01:09:14.000 --> 01:09:16.479 it's theft. It's all it ever is. But so is taxation. 1367 01:09:16.520 --> 01:09:19.840 If we're gonna get on this, so, I mean, anyway, so, uh, 1368 01:09:20.000 --> 01:09:21.760 let's talk about this now. This is a deep dive 1369 01:09:21.880 --> 01:09:26.479 into the Fair Isaac Corporation, also known as FICO. So 1370 01:09:26.800 --> 01:09:29.920 the Fair Isaac Corporation has achieved what few companies ever do. 1371 01:09:30.439 --> 01:09:33.880 It's become practically synonymous with the service it provides. The 1372 01:09:34.039 --> 01:09:37.880 ubiquitous FICO score underpins the vast majority of consumer lending 1373 01:09:37.960 --> 01:09:41.359 decisions in the US, giving FICO a toll booth like 1374 01:09:41.439 --> 01:09:46.000 position in the credit ecosystem. This entrenched role, coupled with 1375 01:09:46.119 --> 01:09:49.399 the savvy management and high margin business model, has turned 1376 01:09:49.439 --> 01:09:53.520 FICO into a profit machine for long term shareholders, which 1377 01:09:53.560 --> 01:09:58.800 is very true. They are the spot. There's yeah, they 1378 01:09:58.920 --> 01:10:01.960 quote unquote have their subsidies and these other three that 1379 01:10:02.039 --> 01:10:04.600 we'll talk about in a bit, but it all basically 1380 01:10:04.680 --> 01:10:08.960 goes through Fico. Right, It's like what was it when? 1381 01:10:10.319 --> 01:10:15.600 Was it Vanderbilt or was it Morgan who basically whenever 1382 01:10:15.640 --> 01:10:18.520 the monopoly laws came into play they forced him to 1383 01:10:18.680 --> 01:10:21.760 break apart. Or maybe it was Dale Carnegie. Honestly, whenever 1384 01:10:22.000 --> 01:10:25.039 the monopoly laws came into play, he was forced to 1385 01:10:25.159 --> 01:10:27.199 break up. Oh it was oil, it was it was 1386 01:10:27.439 --> 01:10:30.720 Standard Oil. They forced him to break up his business 1387 01:10:30.880 --> 01:10:34.840 into ten other businesses, but they didn't say anything about 1388 01:10:34.920 --> 01:10:38.279 him having a controlling interest in each of these businesses. 1389 01:10:38.640 --> 01:10:41.800 So he turned one business into ten businesses, all of 1390 01:10:41.840 --> 01:10:44.800 which he owned and operated, not a sole prietorships. They 1391 01:10:44.800 --> 01:10:48.399 were on boards, but he owned majority shares. So essentially, 1392 01:10:48.760 --> 01:10:52.159 the government forced him to make himself even more fabulously 1393 01:10:52.199 --> 01:10:54.560 wealthy than ever before and was able to make it 1394 01:10:54.680 --> 01:10:58.920 go more diverse and more illegal. So it's basically the 1395 01:10:59.000 --> 01:11:00.640 same thing that FICO has done. 1396 01:11:01.960 --> 01:11:02.119 Well. 1397 01:11:02.239 --> 01:11:05.399 Fiico is in bed with Blackrock, Oh, yes, cooperate. 1398 01:11:05.640 --> 01:11:09.399 They collaborate on financial analytics and risk manament management. 1399 01:11:09.520 --> 01:11:10.079 Solutions. 1400 01:11:10.399 --> 01:11:14.000 Their leadership extend includes the executives that work both for 1401 01:11:14.199 --> 01:11:19.279 Fiico and Blackrock, focusing on strategy partnerships. The companies operate independently, 1402 01:11:19.359 --> 01:11:22.439 but leverage each other and use uses their strength and 1403 01:11:22.479 --> 01:11:26.880 financial technology. Their joint efforts aim to enhance decision making 1404 01:11:27.439 --> 01:11:31.359 in credit, risk management and investment strategies. Also, when I 1405 01:11:31.479 --> 01:11:33.920 looked up really quick about you know, total loss for 1406 01:11:34.119 --> 01:11:37.319 fraud last year. So in twenty twenty two, it was 1407 01:11:37.399 --> 01:11:39.840 eight point eight billion, in twenty twenty three it was 1408 01:11:39.880 --> 01:11:42.199 ten billion, in twenty twenty four it was twelve point 1409 01:11:42.359 --> 01:11:45.640 five billion, and in twenty twenty five it is still 1410 01:11:45.800 --> 01:11:48.640 rising because they haven't finished out the quote, but it 1411 01:11:48.760 --> 01:11:51.479 was that sixteen point two is where they're estimating it. 1412 01:11:52.079 --> 01:11:56.760 We have three hundred and sixty million Americans and we 1413 01:11:56.880 --> 01:11:59.760 have sixteen billion loss to fraud. 1414 01:12:00.640 --> 01:12:04.239 They're still determining it right now, but we'll use twenty 1415 01:12:04.279 --> 01:12:08.680 twenty four's solidified number, which is twelve point five billion dollars. 1416 01:12:08.880 --> 01:12:09.359 Just a fraud. 1417 01:12:09.479 --> 01:12:12.680 But that's my point. So essentially six million. 1418 01:12:12.800 --> 01:12:15.399 Six million people. Wait is that million? 1419 01:12:15.479 --> 01:12:19.000 Yep, six million people in twenty twenty four over six million, 1420 01:12:19.000 --> 01:12:19.920 it was almost seven million. 1421 01:12:20.279 --> 01:12:23.000 So continuing on. It says Fiico's dominance and credit scoring 1422 01:12:23.039 --> 01:12:26.600 and analytics provides a robust mote that should persist over 1423 01:12:26.640 --> 01:12:29.159 the next three years, supported by steady growth in its 1424 01:12:29.239 --> 01:12:33.760 core scoring business, expanding adoption of its decision software platform, 1425 01:12:34.199 --> 01:12:37.880 and pricing power that has proven willing to flex. The 1426 01:12:38.000 --> 01:12:42.399 company's strengths and industry standard product, deep integration with customers, 1427 01:12:42.640 --> 01:12:46.800 hefty cash flows position it well to continue compounding value. 1428 01:12:47.199 --> 01:12:49.439 So basically they're saying that it's going to keep going 1429 01:12:49.520 --> 01:12:52.880 up no matter what you do. That said, strategic challenges 1430 01:12:52.920 --> 01:12:55.960 are on the radar. A competing credit score is slowly 1431 01:12:56.079 --> 01:13:00.159 making in roads. This would be called Vantage Score. This 1432 01:13:00.359 --> 01:13:04.760 is Fico's competition. Finally they have another group that's willing 1433 01:13:04.840 --> 01:13:07.000 to combat them in some way, shape or form. But honestly, 1434 01:13:07.039 --> 01:13:10.960 it's it's more of the same. It's not better for anyone. 1435 01:13:11.039 --> 01:13:13.239 It's doing the exact same thing that Fiico does, just 1436 01:13:13.279 --> 01:13:16.119 taking data for people just like you and doesn't take 1437 01:13:16.199 --> 01:13:20.159 you into account as an individual. But anyway, it's slowly 1438 01:13:20.199 --> 01:13:23.159 making in roads. Regulators are eager to foster more competition, 1439 01:13:23.319 --> 01:13:28.239 and Fiico's valuation already reflects high expectations. Despite these caveats. 1440 01:13:28.279 --> 01:13:30.840 I view Fico as a confident long term hole for 1441 01:13:30.920 --> 01:13:33.720 the three year horizon. It's a unique franchise that has 1442 01:13:33.760 --> 01:13:36.840 repeatedly proven its resilience and ability to innovate. The stance 1443 01:13:36.880 --> 01:13:40.039 here straightforward, stay invested for the long haul, but keep 1444 01:13:40.039 --> 01:13:43.199 an eye on the emerging risks that could test Fiico's fortress. 1445 01:13:44.159 --> 01:13:48.359 This was published March of last year. Fiico hasn't lost 1446 01:13:48.439 --> 01:13:51.920 anything like at all. So the background up we talked 1447 01:13:51.920 --> 01:13:56.199 about Bill Fair and Earl Isaac. We talked about how 1448 01:13:56.239 --> 01:13:59.079 they got started here and an era wind loans were 1449 01:13:59.119 --> 01:14:03.880 approved based on personal judgment and a handshake institution. Fair 1450 01:14:03.960 --> 01:14:07.920 in Isaac's analytic approach was a bold gamble early on 1451 01:14:08.039 --> 01:14:10.840 the customer or. The company built custom scoring systems for 1452 01:14:10.920 --> 01:14:15.399 individual lenders, crunching numbers on borrowed IBM computers to predict 1453 01:14:15.520 --> 01:14:19.520 who would repay alone. These efforts gradually succeeded the concept 1454 01:14:19.560 --> 01:14:24.119 of credit scoring in American finance by nineteen eighty nine. Again, 1455 01:14:24.239 --> 01:14:30.000 nineteen eighty nine, Fico introduced the first general purpose FICO score, 1456 01:14:30.359 --> 01:14:33.800 a three digit number that could encapsulate a person's credit risk. 1457 01:14:34.439 --> 01:14:38.039 It was an instant hit. Lenders car craved a quick, 1458 01:14:38.159 --> 01:14:41.880 objective way to evaluate borrowers, and FICO delivered. Yeah, the 1459 01:14:41.960 --> 01:14:45.039 banks weren't like super jazzed again, but they also saw 1460 01:14:45.119 --> 01:14:47.079 this as a great way to have some sort of 1461 01:14:47.159 --> 01:14:52.239 a legal shield to protect their lending institutions from lawsuits 1462 01:14:52.279 --> 01:14:54.680 for you know, who got denied alone and for what reason. 1463 01:14:55.600 --> 01:14:58.239 A inflection point came in nineteen ninety five when a 1464 01:14:58.359 --> 01:15:01.359 US mortgage giants you probably heard of them, Fannie May 1465 01:15:01.760 --> 01:15:05.880 and Freddie Mack, endorse the FIGHTO scores for virtually all 1466 01:15:06.279 --> 01:15:11.079 home loans they purchased. From that moment, Fighto's score became 1467 01:15:11.119 --> 01:15:14.399 the de facto passport to credit in America. By the 1468 01:15:14.520 --> 01:15:17.039 year two thousand and estimated seventy five percent of all 1469 01:15:17.159 --> 01:15:21.840 mortgage applications were being decided with a FICO score. So 1470 01:15:21.960 --> 01:15:25.479 it went that quickly crazy. From eighty nine to ninety five, 1471 01:15:25.600 --> 01:15:28.960 it went from becoming a standardized thing to being what 1472 01:15:29.079 --> 01:15:32.079 you would need to get a home loan. By two thousand, 1473 01:15:32.279 --> 01:15:35.119 it was pretty much all you needed. Then we had 1474 01:15:35.159 --> 01:15:38.560 the housing bubble happen, and now the good luck getting 1475 01:15:38.560 --> 01:15:42.039 a home loan without a credit score. Good good fucking luck. 1476 01:15:42.159 --> 01:15:45.119 But anyway you can't, no way, there's no fucking way. 1477 01:15:45.159 --> 01:15:47.000 You can't get a car, You can't get anything. You 1478 01:15:47.159 --> 01:15:48.520 have to have a credit score. 1479 01:15:48.439 --> 01:15:52.199 Unless you're paying cash, unless you are coming with cash 1480 01:15:52.319 --> 01:15:52.800 in hand. 1481 01:15:53.159 --> 01:15:55.000 Than fun, I'm pretty sure you still have to have 1482 01:15:55.159 --> 01:15:57.479 a like you still have to have a certain amount 1483 01:15:57.520 --> 01:15:58.199 of credit score. 1484 01:15:58.960 --> 01:16:01.920 I don't know, honestly, I've never bought a car out right. 1485 01:16:02.199 --> 01:16:05.359 I'm I feel like you're supposed to have a specific 1486 01:16:05.479 --> 01:16:08.319 at least some type of credit score. I don't know. 1487 01:16:09.119 --> 01:16:10.720 That's maybe. 1488 01:16:11.479 --> 01:16:14.840 As Fiico's influence grew, its business evolved, which started as 1489 01:16:14.840 --> 01:16:18.960 a niche consulting outfit, morphed into a software scoring powerhouse. 1490 01:16:19.319 --> 01:16:21.640 The company went public in nineteen eighty seven and rode 1491 01:16:21.640 --> 01:16:24.399 a wave of adoption as banks, credit card issuers, and 1492 01:16:24.560 --> 01:16:28.840 even government agencies embraced its tools. In a quirky anecdote, 1493 01:16:29.119 --> 01:16:33.079 the IRS in the nineteen seventies used fiicos analytics to 1494 01:16:33.199 --> 01:16:39.199 help identify tax evaders, illustrating how broadly applicable Fiico's model became. Yeah, 1495 01:16:39.239 --> 01:16:42.159 the IRS and Fico, I know, as we're talking about 1496 01:16:42.199 --> 01:16:45.399 the financial institutions. Oh, they have been intringed with each 1497 01:16:45.439 --> 01:16:49.600 other since the seventies, even before credit scores became a 1498 01:16:49.640 --> 01:16:55.600 widely used metric. The irs is already using Fico. Yeah so, anyway, 1499 01:16:55.640 --> 01:16:58.439 through the nineteen nineties and two thousand, fair ISAAC, which 1500 01:16:58.479 --> 01:17:02.439 eventually rebranded some as Fico, rolled out products beyond the 1501 01:17:02.479 --> 01:17:05.680 classic credit score, from fraud detection systems for credit card 1502 01:17:05.760 --> 01:17:09.159 transactions to marketing analytics that help banks cross sell to 1503 01:17:09.239 --> 01:17:12.279 the right customers. But at its core, the Fico score 1504 01:17:12.359 --> 01:17:15.840 remained the crown jewel. It seeped into American lexicon. What's 1505 01:17:15.840 --> 01:17:18.039 your Fyco score? And now they don't even say that, 1506 01:17:18.119 --> 01:17:20.399 it's just what your credit score, even though that's exactly 1507 01:17:20.479 --> 01:17:23.760 what it means. It became a common phrase and customers 1508 01:17:23.800 --> 01:17:27.800 began actively tracking that magic number. In twenty thirteen alone, 1509 01:17:28.199 --> 01:17:32.680 lenders purchased over ten billion Fico scores to evaluate borrowers, 1510 01:17:32.960 --> 01:17:38.960 a testament to how embedded Fyco's product had become twenty thirteen. 1511 01:17:39.680 --> 01:17:42.239 And that's the thing. They're selling this to the banks. 1512 01:17:42.239 --> 01:17:45.159 They're not giving this information, not giving these data analytics. 1513 01:17:45.760 --> 01:17:48.119 They were running credit scores, which they had to pay 1514 01:17:48.199 --> 01:17:51.640 Fico for. And all it is is arbitrary analytics that 1515 01:17:51.720 --> 01:17:55.119 has nothing to do with the individual. It's just its algorithms. 1516 01:17:56.880 --> 01:17:59.199 Oh my god, and everything is based on it. 1517 01:18:00.000 --> 01:18:02.880 I didn't realize though, that everybody around you is impacting 1518 01:18:02.920 --> 01:18:03.640 your credit story. 1519 01:18:03.680 --> 01:18:05.239 I thought that was like a personal thing. 1520 01:18:05.640 --> 01:18:09.000 No, no, it is everything other than you believe it 1521 01:18:09.079 --> 01:18:09.199 or not. 1522 01:18:10.239 --> 01:18:11.319 That's that's wild. 1523 01:18:11.760 --> 01:18:14.800 So this is actually the fyco website right now. And again, 1524 01:18:15.439 --> 01:18:18.039 Fico is not a lending institution. And again, before I 1525 01:18:18.079 --> 01:18:21.720 started this research, I honestly didn't know. Fico is a 1526 01:18:21.920 --> 01:18:27.119 lending analytics software company helping businesses in eighty plus countries 1527 01:18:27.199 --> 01:18:30.720 make better decisions that drive higher levels of growth, profitability, 1528 01:18:30.960 --> 01:18:36.079 and customer satisfaction. Not consumer satisfaction the bank who's using 1529 01:18:36.159 --> 01:18:42.279 ficos satisfaction over eighty countries. So damn near half of 1530 01:18:42.319 --> 01:18:45.760 the countries on Earth are using the fair and ISAAC 1531 01:18:45.880 --> 01:18:48.279 companies numbers and analytics and data. 1532 01:18:48.720 --> 01:18:51.039 So it's a global thing that they were impacting. Wow, 1533 01:18:51.119 --> 01:18:53.760 that's yeah, just some off some bullshit numbers. 1534 01:18:54.199 --> 01:18:56.520 So reading in here, it says powering decisions that help 1535 01:18:56.560 --> 01:19:01.079 people and businesses around the world prosper FCO's roundbreaking use 1536 01:19:01.199 --> 01:19:05.600 of big data and mathematical algorithms to predict consumer behavior 1537 01:19:05.680 --> 01:19:09.720 has transformed entire industries. Goddamn right, it has. The company 1538 01:19:09.760 --> 01:19:12.960 provides analytics, software and tools used across multiple industries to 1539 01:19:13.079 --> 01:19:16.800 manage risk, fight fraud, build more profitable customer relationships. Again, 1540 01:19:17.279 --> 01:19:20.720 by customer, they mean banks, not us, optimize operations, and 1541 01:19:20.760 --> 01:19:24.079 meet strict government regulations. Many of our products reach industry 1542 01:19:24.119 --> 01:19:27.760 wide at adoption, such as the FICO Score, the standard 1543 01:19:27.800 --> 01:19:31.119 measure for consumer credit risk in the United States. Fyco 1544 01:19:31.239 --> 01:19:36.039 Solution leverage open source standards and cloud computing to maximize flexibility, 1545 01:19:36.399 --> 01:19:40.199 speed deployment, and reduce costs. The company also helps millions 1546 01:19:40.239 --> 01:19:44.079 of people manage their personal credit health. By that, they mean, 1547 01:19:44.239 --> 01:19:45.920 like you just did raven when you just pulled your 1548 01:19:45.960 --> 01:19:48.800 credit score, that's all it was. Yeah, your bank just 1549 01:19:49.039 --> 01:19:53.840 paid Fico for that number. Really, the banks don't have 1550 01:19:54.000 --> 01:19:56.680 this just in house. They still have to use Fico 1551 01:19:56.800 --> 01:19:59.319 for all of it. So every time you pull a 1552 01:19:59.359 --> 01:20:02.119 credit score, Fico's getting a penny on the dollar on 1553 01:20:02.239 --> 01:20:05.119 that on that information. 1554 01:20:05.319 --> 01:20:09.000 Just be having a revolving credit score then, because like 1555 01:20:09.199 --> 01:20:11.520 or just access to it, because you can go to 1556 01:20:11.600 --> 01:20:13.840 your bank and it just is sitting there, You're able 1557 01:20:13.920 --> 01:20:16.199 to just look at it. Now you can go into 1558 01:20:16.279 --> 01:20:17.720 it and click on it and it'll break down some 1559 01:20:17.800 --> 01:20:21.319 of the stuff and you get like messages actively from 1560 01:20:21.720 --> 01:20:25.199 I think it's TransUnion that you get messages from, and 1561 01:20:25.319 --> 01:20:28.359 that it tells you like, hey, you're laid on this, Hey, 1562 01:20:28.479 --> 01:20:29.600 this got reported here. 1563 01:20:29.720 --> 01:20:30.439 Hey this is this? 1564 01:20:31.079 --> 01:20:33.439 I bet it's one of these three. Is it Equifax, 1565 01:20:33.560 --> 01:20:35.039 Experience or TransUnion? 1566 01:20:35.920 --> 01:20:38.279 TransUnion is normally the one that likes to talk to 1567 01:20:38.319 --> 01:20:40.640 people the most. The other ones are more difficult to 1568 01:20:41.760 --> 01:20:43.680 get a hold of. When you're trying to put like 1569 01:20:43.760 --> 01:20:46.479 a freeze on your credit. Yeah, which is a whole 1570 01:20:46.560 --> 01:20:48.199 thing in and of itself too, is you can put 1571 01:20:48.239 --> 01:20:49.880 a you can call and put a freeze on your 1572 01:20:49.960 --> 01:20:54.479 credit to avoid fraud. And so when you decide to 1573 01:20:54.560 --> 01:20:57.479 do that, you can actually do a temporary one. You 1574 01:20:57.600 --> 01:20:59.520 can do one where you call in and you can 1575 01:21:00.239 --> 01:21:02.199 put it on and then you can release it for 1576 01:21:02.399 --> 01:21:04.800 twenty four hours, and so in twenty four hours you're 1577 01:21:04.840 --> 01:21:07.479 going to use it for some dot dot dot. There's 1578 01:21:07.520 --> 01:21:09.079 a lot of different things that you can do. You 1579 01:21:09.159 --> 01:21:10.880 can call them and talk to them about all sorts 1580 01:21:10.880 --> 01:21:13.159 of stuff. I just happen to know because of that situation, 1581 01:21:13.439 --> 01:21:17.039 I was really proactive and trying to not have fraud 1582 01:21:17.119 --> 01:21:17.880 happen to me again. 1583 01:21:18.399 --> 01:21:22.439 So here's the deal. Equifax, Experience, and TransUnion are the 1584 01:21:22.560 --> 01:21:26.760 three major US credit bureaus or reporting agencies that collect 1585 01:21:26.800 --> 01:21:29.560 your financial data like payment history, debts, and loans to 1586 01:21:29.760 --> 01:21:33.079 create credit reports, which lenders use to assess your credit 1587 01:21:33.159 --> 01:21:36.399 worthiness for loans, credit cards, and rentals, with each bureau 1588 01:21:36.479 --> 01:21:40.920 maintaining slightly different information lending or leading to potentially varying 1589 01:21:40.960 --> 01:21:44.479 credit scores. They are essentially your financial life, and you 1590 01:21:44.560 --> 01:21:47.760 can get free copies of your reports annually, annually being 1591 01:21:47.880 --> 01:21:50.159 once a year. Once a year you can get a 1592 01:21:50.199 --> 01:21:53.039 free report without it dinging your credit right from each one. 1593 01:21:53.079 --> 01:21:54.840 Hard It's a hard poll, is what it's called. 1594 01:21:55.079 --> 01:21:58.439 But here's the deal. Here's how they generate your credit score. 1595 01:21:58.800 --> 01:22:03.239 They use different algorithms like FCO or vantage score to 1596 01:22:03.399 --> 01:22:06.680 calculate credit scores based on information in your reports, reflecting 1597 01:22:06.720 --> 01:22:09.880 your credit risk. Again, very little of that has to 1598 01:22:09.960 --> 01:22:12.239 do with you as an individual. All of it has 1599 01:22:12.279 --> 01:22:14.600 to do with what the FICO algorithm told them. 1600 01:22:15.199 --> 01:22:15.800 That's crazy. 1601 01:22:15.920 --> 01:22:19.600 And then if you file bankruptcy, So you go to 1602 01:22:19.680 --> 01:22:22.199 court and you file bankruptcy, there's like different chapters that 1603 01:22:22.279 --> 01:22:25.479 you can file. Did you know that you actually still 1604 01:22:25.640 --> 01:22:28.760 pay your monthly thing? And then the court is supposed 1605 01:22:28.800 --> 01:22:32.560 to pay the companies, but a lot of times they don't. 1606 01:22:33.119 --> 01:22:36.000 So even if you've been paying on time, the minium 1607 01:22:36.239 --> 01:22:39.279 do and you decide, you know what, I'm too overwhelmed 1608 01:22:39.520 --> 01:22:41.560 and I don't know if I'll be able to do this, 1609 01:22:42.119 --> 01:22:44.720 and you go and you file a type of bankruptcy. 1610 01:22:46.039 --> 01:22:48.880 You're still paying the bankruptcy court, but that money just 1611 01:22:49.000 --> 01:22:51.119 kind of disappears into the ether if you don't go 1612 01:22:51.199 --> 01:22:52.119 all the way through with it. 1613 01:22:52.600 --> 01:22:55.399 It is a business move. That's why when people bring up, 1614 01:22:55.520 --> 01:22:58.399 you know, Donald Trump file for bankruptcy four times, and 1615 01:22:58.560 --> 01:23:00.399 it's like, okay, wait, wait, wait, wait wait one of 1616 01:23:00.479 --> 01:23:03.920 his businesses declared bankruptcy four times. But that wasn't because 1617 01:23:03.960 --> 01:23:06.399 it was a failed business venture. That was a play. 1618 01:23:06.880 --> 01:23:09.199 That is what the wealthy elite do to get out 1619 01:23:09.239 --> 01:23:11.199 of paying large sums. They pay a little bit here 1620 01:23:11.239 --> 01:23:12.920 and there, and then they default and it goes off 1621 01:23:12.960 --> 01:23:13.960 into the wind. 1622 01:23:15.439 --> 01:23:18.319 Well, so no, the you still have to pay back 1623 01:23:18.399 --> 01:23:22.840 these creditors, right, the creditors. You're paying the bank, you're 1624 01:23:22.920 --> 01:23:27.159 paying the government the money that they're supposed to work 1625 01:23:27.199 --> 01:23:28.680 with them to pay off all of this. 1626 01:23:28.840 --> 01:23:30.159 And it's supposed to be a whole thing. 1627 01:23:31.399 --> 01:23:33.840 I didn't, So there was a time when I looked 1628 01:23:33.880 --> 01:23:37.239 into doing it, and I know some people that didn't 1629 01:23:37.319 --> 01:23:39.479 go all the way through almost but they paid a 1630 01:23:39.600 --> 01:23:42.079 bunch of money up front, like a couple thousand dollars 1631 01:23:42.159 --> 01:23:44.680 upfront to continue paying the creditors. 1632 01:23:45.000 --> 01:23:48.880 They sent the creditors a check for seven dollars or 1633 01:23:49.000 --> 01:23:51.520 for no joke, a dollar twenty five. 1634 01:23:51.840 --> 01:23:53.800 It was just some sort of payment, it didn't matter, 1635 01:23:54.279 --> 01:23:55.199 it was in six months. 1636 01:23:55.239 --> 01:23:59.399 But so that tanked their credit even worse then just 1637 01:23:59.520 --> 01:24:03.439 having this quote unquote bankruptcy. So they pulled out last 1638 01:24:03.479 --> 01:24:05.920 minute and they actually never went through the bankruptcy, but 1639 01:24:06.000 --> 01:24:08.199 it still shows on their credit score today. 1640 01:24:08.880 --> 01:24:10.560 But if it's after seven years. 1641 01:24:10.520 --> 01:24:12.800 You've never got that never money, that money that they 1642 01:24:12.920 --> 01:24:15.479 paid in never got given back to them, and it 1643 01:24:15.600 --> 01:24:17.680 never got given to the credit score. 1644 01:24:17.560 --> 01:24:18.279 The credit people. 1645 01:24:18.600 --> 01:24:20.920 But if it's after seven years and it's no longer 1646 01:24:21.279 --> 01:24:23.600 on your credit, but you still have to pay back 1647 01:24:23.640 --> 01:24:26.199 that debt later on, but the instant even if you 1648 01:24:26.239 --> 01:24:28.600 paid a one lump sum, now it's back on your 1649 01:24:28.680 --> 01:24:31.000 credit and then it's it's yes, there's a process to 1650 01:24:31.079 --> 01:24:31.399 this shit. 1651 01:24:31.439 --> 01:24:34.159 And again charge off is the if you people can't 1652 01:24:34.279 --> 01:24:37.720 pay the money that they're they owe. The charge off 1653 01:24:37.800 --> 01:24:40.960 is where it's at. Yeah, really, so like the charge 1654 01:24:41.000 --> 01:24:45.000 off is what the bank is willing to take. So, hey, look, 1655 01:24:45.159 --> 01:24:48.479 I've paid this amount of money. I can't keep paying 1656 01:24:48.560 --> 01:24:51.479 this twenty thousand dollars bill. What are you willing to 1657 01:24:51.640 --> 01:24:55.800 take from me? In either I think it's either upfront 1658 01:24:56.039 --> 01:24:58.800 or like three lump sums. What are you willing to 1659 01:24:58.960 --> 01:25:01.600 take to get a least some money extracted from me? 1660 01:25:01.960 --> 01:25:03.720 Then they'll charge you off and you can never open 1661 01:25:03.800 --> 01:25:05.319 up a line of credit or credit card with that 1662 01:25:05.399 --> 01:25:08.199 company again. And it says charge off on your report. 1663 01:25:08.640 --> 01:25:11.319 But it's better than filing for bankruptcy. And there is 1664 01:25:11.359 --> 01:25:13.760 a way to like actually work with them to pay 1665 01:25:13.880 --> 01:25:16.960 that off instead of getting to where you're so screwed 1666 01:25:16.960 --> 01:25:19.079 and you have all this debt that's behind and all that, 1667 01:25:19.359 --> 01:25:22.600 because that actually hurts your credit score worse than if 1668 01:25:22.640 --> 01:25:24.279 you just charge off the fucking thing. 1669 01:25:24.439 --> 01:25:26.520 So it's it's a whole game. 1670 01:25:26.600 --> 01:25:28.600 But nobody tells you about this, and nobody, I mean 1671 01:25:29.119 --> 01:25:31.520 nobody even knows because you see all these different things 1672 01:25:31.560 --> 01:25:33.560 that are happening with different people. Everyone's trying to do 1673 01:25:33.640 --> 01:25:38.279 different things and I mean the bankruptcy conversation. It sounded 1674 01:25:38.359 --> 01:25:42.079 so enticing when I was like in a real struggle 1675 01:25:42.159 --> 01:25:44.479 in a point. Thankfully I didn't go through with it, 1676 01:25:44.640 --> 01:25:46.479 But yeah, I know, I know a lot of people 1677 01:25:46.560 --> 01:25:48.720 that have had to go through with those type of things. 1678 01:25:48.800 --> 01:25:51.640 But the elites, they operate in their own system that 1679 01:25:51.800 --> 01:25:54.880 doesn't apply. Whatever they do does not apply to us 1680 01:25:55.359 --> 01:25:55.880 down below. 1681 01:25:56.359 --> 01:25:58.800 So I don't think people realize that. The people are like, well, 1682 01:25:58.840 --> 01:25:59.960 they do it, then why can't we do? 1683 01:26:00.479 --> 01:26:03.439 Because my love, they're up here, yeah, up in the sky. 1684 01:26:03.800 --> 01:26:05.439 Think of it like they're up in the sky and 1685 01:26:05.479 --> 01:26:07.720 we're down here in the dirt. Like that's we're two 1686 01:26:07.760 --> 01:26:08.800 different playing fields. 1687 01:26:08.880 --> 01:26:10.600 Oh that's how they see it. That's for damn sure. 1688 01:26:10.880 --> 01:26:12.479 And then again, oh yeah, weird. 1689 01:26:12.560 --> 01:26:12.840 Nothing. 1690 01:26:13.159 --> 01:26:15.800 They're not dealing with a Fico credit score. They don't 1691 01:26:15.800 --> 01:26:17.640 have to worry about that, but we do. And there's 1692 01:26:17.680 --> 01:26:20.880 pretty much no way to escape that. So Fico's fortune 1693 01:26:20.960 --> 01:26:24.199 five hundred clients. Fiico's clients include more than half of 1694 01:26:24.279 --> 01:26:27.159 the top one hundred banks in the world, not in 1695 01:26:27.159 --> 01:26:31.199 the US, in the world, we are talking about the Rothschilds, 1696 01:26:31.239 --> 01:26:34.560 we are talking about all these global banking conglomerates. All 1697 01:26:34.720 --> 01:26:37.760 of them are using Fiico. More than six hundred personal 1698 01:26:37.840 --> 01:26:41.680 and commercial line issuers in North America and Europe, including 1699 01:26:41.760 --> 01:26:45.960 the top ten US personal line issuers, four hundred plus 1700 01:26:46.039 --> 01:26:49.560 retailers and a general merchandisers, including one third of the 1701 01:26:49.640 --> 01:26:53.199 top US retailers, are the top third of the top 1702 01:26:53.239 --> 01:26:57.000 one hundred US retailers, ninety five of the one hundred 1703 01:26:57.119 --> 01:27:00.560 largest financial institutions in the US, and all one hundred 1704 01:27:00.640 --> 01:27:02.800 largest US credit card issuers and more. 1705 01:27:03.680 --> 01:27:05.760 All of them, that's insane are. 1706 01:27:05.720 --> 01:27:09.279 Using fight Goo. Yeah, because they see it as a 1707 01:27:09.319 --> 01:27:14.520 way to streamline the approval or denial of loans in general. 1708 01:27:14.720 --> 01:27:17.640 Which if it streamslines it time is money. It saves 1709 01:27:17.720 --> 01:27:20.039 them money. It also gives them some sort of a 1710 01:27:21.319 --> 01:27:24.680 legal shield in case someone tries to sue them for 1711 01:27:25.079 --> 01:27:30.199 you know, unlawful practices or you know, discrimination or whatever else. Now, 1712 01:27:30.279 --> 01:27:34.000 let's talk about the e CooA, the Equal Credit Opportunity Act. 1713 01:27:34.079 --> 01:27:36.279 I pulled this up off of the Federal Trade Commission here, 1714 01:27:36.279 --> 01:27:37.960 and just so we're all clear about what this is. 1715 01:27:38.600 --> 01:27:42.199 This Act, Title seven of the Consumer Credit Protection Act, 1716 01:27:42.399 --> 01:27:47.039 and I quote prohibits discrimination on the basis of race, color, religion, 1717 01:27:47.359 --> 01:27:52.319 national origin, sex, marital status, age, receipt of public assistance, 1718 01:27:52.960 --> 01:27:56.560 or good faith exercise of any rights under the Consumer 1719 01:27:56.640 --> 01:28:00.840 Credit Protection Act. The Act also requires creditors to provide applicants, 1720 01:28:00.960 --> 01:28:05.600 upon request, with the reasons underlying decisions to deny credit. 1721 01:28:06.319 --> 01:28:09.960 The Dodd Frank Act added, among other things, a requirement 1722 01:28:10.039 --> 01:28:13.680 that creditors provide two applicants a copy of all appraisals 1723 01:28:13.880 --> 01:28:17.000 and other written valuations used in connection with the applicants 1724 01:28:17.039 --> 01:28:20.880 application for the first lean loans secured by a dwelling. Okay, 1725 01:28:20.920 --> 01:28:23.119 so here's the thing we need to take away on 1726 01:28:23.199 --> 01:28:27.199 this one. All this meant is that they can't deny 1727 01:28:27.319 --> 01:28:30.439 you based off of some arbitrary thing. They have to 1728 01:28:30.680 --> 01:28:35.760 provide you with the reasons underlying their decisions to deny credit. 1729 01:28:36.520 --> 01:28:40.359 This specifically is when the banks were like, wait a minute, 1730 01:28:40.720 --> 01:28:43.920 those guys out in California, they made that number thing. 1731 01:28:44.000 --> 01:28:44.319 What was that? 1732 01:28:44.640 --> 01:28:47.039 It's a scale from three hundred to eight hundred, and 1733 01:28:48.039 --> 01:28:50.560 we could just use that and it would take away 1734 01:28:50.840 --> 01:28:54.199 all of the legal precedents to say, why this young 1735 01:28:54.279 --> 01:28:57.159 black couple was denied a home mortgage, Well, that's because 1736 01:28:57.199 --> 01:28:59.199 you have a low credit score. Well why do we 1737 01:28:59.239 --> 01:29:00.960 have a low credit score where I make good money, 1738 01:29:01.000 --> 01:29:03.000 I pay my bills, I do this allics, And you 1739 01:29:03.079 --> 01:29:05.000 need to get with one of these credit bureaus and 1740 01:29:05.079 --> 01:29:07.079 you need to try to up your credit score and 1741 01:29:07.159 --> 01:29:08.560 come back to us in a couple of months and 1742 01:29:08.600 --> 01:29:11.439 maybe we'll make something happen. You see what I'm saying. 1743 01:29:12.359 --> 01:29:16.840 Yeah, yeah, that's correct. This is the crazy, crazy little 1744 01:29:17.119 --> 01:29:19.039 thing that I didn't even know about. To be honest 1745 01:29:19.079 --> 01:29:19.720 with you, and. 1746 01:29:19.760 --> 01:29:22.680 Then to tie this in, are the credit bureaus selling 1747 01:29:22.760 --> 01:29:26.760 your data? Yes, credit bureaus sell your data and this 1748 01:29:27.000 --> 01:29:31.199 practice is legal under the Fair Credit Reporting Act. So 1749 01:29:31.359 --> 01:29:36.000 whenever the credit bureaus report your data, not your payment, 1750 01:29:36.079 --> 01:29:40.079 hit with your data to the local insurance companies and 1751 01:29:40.199 --> 01:29:44.199 to local online sales groups and advertisement agencies and all 1752 01:29:44.199 --> 01:29:47.439 of these things, this is all legal under the Fair 1753 01:29:47.560 --> 01:29:50.800 Credit Reporting Act. It's all within the fine print here. 1754 01:29:51.319 --> 01:29:54.399 They primarily sell it to lenders and other businesses. Other 1755 01:29:54.560 --> 01:30:01.039 businesses for permissible purposes, that is, in quotations they uh 1756 01:30:01.199 --> 01:30:06.000 such as evaluating applications for credit insurance or employment, and 1757 01:30:06.199 --> 01:30:09.560 for marketing offers to you have been pre screened for. 1758 01:30:10.600 --> 01:30:11.880 So how do you think this is going to tie 1759 01:30:11.920 --> 01:30:14.479 into the whole situation that's happening in the UK with 1760 01:30:15.079 --> 01:30:19.199 them pushing for virtual money, Like they're just gonna get 1761 01:30:19.279 --> 01:30:20.399 rid of the dollar pretty. 1762 01:30:20.199 --> 01:30:22.119 Much, so it's gonna fuck them harder. 1763 01:30:22.920 --> 01:30:25.760 It's because like if they're if they're using fico pretty 1764 01:30:25.800 --> 01:30:29.760 much globally and they're basing all of our information off 1765 01:30:29.800 --> 01:30:31.840 of people around us. What if you live in a 1766 01:30:31.960 --> 01:30:34.279 high end area but you're super poor and the person 1767 01:30:34.359 --> 01:30:36.399 next to you super rich, and the person on the 1768 01:30:36.439 --> 01:30:39.239 other side of the median, Like, what what is that 1769 01:30:39.399 --> 01:30:42.159 going to look like for all three of those families, 1770 01:30:42.359 --> 01:30:45.479 Because it's going to just change screw up everybody's credit 1771 01:30:45.880 --> 01:30:48.279 sucks the sac on top of that, they can shut 1772 01:30:48.439 --> 01:30:50.680 this off, like what if you're too much of a risk, Okay, 1773 01:30:50.760 --> 01:30:53.119 well just we're just gonna deny you food. Then I 1774 01:30:53.199 --> 01:30:56.560 guess because you're not playing along in X, Y and Z, 1775 01:30:56.720 --> 01:30:57.680 your political. 1776 01:30:57.359 --> 01:31:00.800 Views are crazy. But don't worry, fyco. Your credit score 1777 01:31:00.920 --> 01:31:03.319 is just shit because you know you haven't paid your 1778 01:31:03.359 --> 01:31:05.119 bills correctly, and it's. 1779 01:31:05.000 --> 01:31:07.439 Not even you. It might just be people in your 1780 01:31:07.560 --> 01:31:10.680 quote unquote demographic that haven't paid their bills, your area, 1781 01:31:10.840 --> 01:31:14.199 your race, your your age bracket, your line of work, 1782 01:31:14.279 --> 01:31:16.920 whatever the case is, right, but don't worry Raven. Religion, 1783 01:31:17.199 --> 01:31:20.880 it could be, but don't worry Raven. They have social 1784 01:31:20.960 --> 01:31:23.800 programs funded by the state, So even if you can't 1785 01:31:23.800 --> 01:31:27.000 afford to feed your family, don't worry. Uncle Sam will 1786 01:31:27.000 --> 01:31:29.039 take care of You're in the UK, I guess jolly 1787 01:31:29.079 --> 01:31:32.439 old King will take care of you. And it's just 1788 01:31:32.800 --> 01:31:35.279 gonna be a thing where you're gonna rely more heavily 1789 01:31:35.399 --> 01:31:38.239 on the state to afford everything, and you're gonna have 1790 01:31:38.319 --> 01:31:40.800 to just suckle at the government's teat to survive. And 1791 01:31:40.880 --> 01:31:41.760 that's the whole goal. 1792 01:31:43.239 --> 01:31:45.399 So they can feed you like you know, bugs and 1793 01:31:45.520 --> 01:31:47.079 slop and call it food. 1794 01:31:47.640 --> 01:31:50.720 Yeah actually, yeah, yeah, it's like snow piercer. 1795 01:31:50.880 --> 01:31:52.000 But like, we're not on a train. 1796 01:31:52.800 --> 01:31:55.840 So how is your shit? 1797 01:31:56.760 --> 01:31:58.000 So how do we really think about it? 1798 01:31:58.039 --> 01:32:00.920 It's like hmm okay, So how is your data sold? 1799 01:32:01.239 --> 01:32:05.600 The major credit bureaus Experience, TransUnion and Equalfax and inovis 1800 01:32:05.840 --> 01:32:08.359 for anybody who uses that one collect vast amounts of 1801 01:32:08.399 --> 01:32:11.479 personal and financial information and package it for sale to 1802 01:32:11.720 --> 01:32:15.159 third parties trigger leads. So when you apply for a loan, 1803 01:32:15.359 --> 01:32:18.760 a mortgage or auto loan, the inquiry on your report, 1804 01:32:18.960 --> 01:32:22.239 triggers quote unquote the bureau to sell your information as 1805 01:32:22.319 --> 01:32:26.039 a trigger lead to other lenders. These other companies then 1806 01:32:26.159 --> 01:32:29.680 contact you with competing offers via phone, email, and mail. 1807 01:32:30.239 --> 01:32:32.199 So there's pre screened offers like you talked about, and 1808 01:32:32.199 --> 01:32:35.399 then there's other business purposes. But but how do you 1809 01:32:35.520 --> 01:32:38.319 stop the sale of your data? There is opt out 1810 01:32:38.399 --> 01:32:41.920 of pre screened offers. There is websites you can go to. 1811 01:32:42.279 --> 01:32:44.640 There's phone numbers that you can call, and one of 1812 01:32:44.680 --> 01:32:47.319 them is opt out prescreen dot com. There's a total 1813 01:32:47.359 --> 01:32:50.439 free number as well. You can choose to temporarily opt 1814 01:32:50.520 --> 01:32:53.560 out for five years or a permanent one. It requires 1815 01:32:53.640 --> 01:32:57.279 mailing and assigned confirmation form. But you can fight the 1816 01:32:57.319 --> 01:32:59.720 good fight and get your data to not be sold 1817 01:32:59.760 --> 01:33:03.600 by your credit bureaus. But more often than not, people 1818 01:33:03.640 --> 01:33:06.880 don't know about this. So for the vast majority of 1819 01:33:06.960 --> 01:33:10.960 people experience TransUnion and equal effects have been selling your 1820 01:33:11.000 --> 01:33:15.960 financial data, your address, your income, your all the things, 1821 01:33:16.239 --> 01:33:17.399 all your shopping. 1822 01:33:17.079 --> 01:33:17.960 Hair adventures. 1823 01:33:18.039 --> 01:33:19.479 Oh yeah, all of it. Can they can sell? 1824 01:33:19.800 --> 01:33:22.279 I mean like you can look. 1825 01:33:22.239 --> 01:33:26.000 At Chase Bank will break down your expenditures and it 1826 01:33:26.039 --> 01:33:28.159 will break it into categories and I'll give you like 1827 01:33:28.239 --> 01:33:30.119 a nice little pie chart and give you all the 1828 01:33:30.159 --> 01:33:32.600 sorts of stuff of you know, hey, you spent x 1829 01:33:32.640 --> 01:33:34.920 amount of money on entertainment, you spent x amount of 1830 01:33:34.920 --> 01:33:37.399 money on restaurants, you spent x amount of money on groceries, 1831 01:33:37.520 --> 01:33:41.119 others this, that, and then Chase loves to sell your data. 1832 01:33:41.279 --> 01:33:43.960 Oh yeah, because it links to all sorts of stuff 1833 01:33:44.000 --> 01:33:47.199 and you can actually see where it talks. It tells you, hey, 1834 01:33:47.640 --> 01:33:50.520 you know, we're sending this over here to optimize your 1835 01:33:50.680 --> 01:33:52.840 consumer I forget the way they. 1836 01:33:52.760 --> 01:33:54.600 Put it, but it's pretty much consumer profile. 1837 01:33:55.079 --> 01:33:57.960 Yeah, your consumer profile, and it's this and that, and 1838 01:33:58.000 --> 01:34:00.720 it's I mean, I get it. Like most people don't 1839 01:34:00.720 --> 01:34:03.439 really give a shit because like, okay, they're tracking every 1840 01:34:03.560 --> 01:34:06.399 single thing about us. But I wonder, as we're shifting 1841 01:34:06.439 --> 01:34:11.199 into the age of serious AI potential control and everything's 1842 01:34:11.239 --> 01:34:13.399 going to be linked together, and our entire lives is 1843 01:34:13.439 --> 01:34:17.319 going to be linked to whatever we do via you know, spending, 1844 01:34:17.439 --> 01:34:20.760 social score, political views, all of that. 1845 01:34:21.279 --> 01:34:24.239 I wonder how much this FICO score is going to 1846 01:34:24.279 --> 01:34:24.760 play into this. 1847 01:34:25.159 --> 01:34:28.880 Oh, I think it's going to be heavily involved. Heavily involved. 1848 01:34:29.399 --> 01:34:31.560 Maybe if the fifteen minute cities get up and running. 1849 01:34:31.560 --> 01:34:32.800 They're going to move people into. 1850 01:34:32.720 --> 01:34:36.479 Categories or they'll guarantee you. Basically, you moved into a 1851 01:34:36.560 --> 01:34:38.920 fifteen minute city. Well there's an extra two hundred and 1852 01:34:39.000 --> 01:34:40.359 fifty points on your credit. 1853 01:34:40.159 --> 01:34:44.520 Score maybe if they can get put into certain locations. 1854 01:34:44.560 --> 01:34:47.159 So like this is the eight hundred score area. 1855 01:34:47.359 --> 01:34:48.319 This is this area. 1856 01:34:48.800 --> 01:34:50.560 Like all of these scenes are driven, kind of like 1857 01:34:50.600 --> 01:34:52.520 when you're in school and you get driven to want 1858 01:34:52.560 --> 01:34:55.199 to get that A plus because you get actually you 1859 01:34:55.319 --> 01:34:57.720 get a candy or you get five minutes extra at recess. 1860 01:34:57.920 --> 01:35:00.199 So hey, if you do X, Y and Z, you 1861 01:35:00.279 --> 01:35:03.039 get moved up in the bracket. This comes with these 1862 01:35:03.199 --> 01:35:05.720 benefits and look you're in a fifty minute city. So 1863 01:35:05.840 --> 01:35:07.239 then they all link together. 1864 01:35:07.680 --> 01:35:09.199 Yep, it's smart. 1865 01:35:09.399 --> 01:35:11.039 I'll give them that. It's really intelligent. 1866 01:35:11.319 --> 01:35:13.920 So now let's go to park pocket guard here. When 1867 01:35:14.000 --> 01:35:17.680 we're credit Scores invented a complete history of credit scoring. So, 1868 01:35:18.119 --> 01:35:20.840 believe it or not, credit goes back, at least what 1869 01:35:20.960 --> 01:35:22.800 we know of credits today actually goes back to the 1870 01:35:22.840 --> 01:35:25.520 eighteen hundreds. The FICO score didn't come around to the 1871 01:35:25.600 --> 01:35:28.479 nineteen fifties, but it's not the eighteen hundreds. In the 1872 01:35:28.520 --> 01:35:30.399 way you would think it was like in eighteen forty one, 1873 01:35:30.439 --> 01:35:32.479 and it was in England. But we're good to I 1874 01:35:32.640 --> 01:35:35.039 was right though, you were right right. But like I said, 1875 01:35:35.079 --> 01:35:36.760 credit score is different than credit. 1876 01:35:37.560 --> 01:35:39.840 That's true, that's true. I knew credit though, was around 1877 01:35:39.880 --> 01:35:40.880 the eighteen hundreds. 1878 01:35:40.960 --> 01:35:43.159 So absolutely, So let's get into it here. So credit 1879 01:35:43.239 --> 01:35:45.560 scores play a big role in our money lives today. 1880 01:35:45.920 --> 01:35:48.319 The affect whether we get approved for home loans, car loans, 1881 01:35:48.399 --> 01:35:50.840 or even apartments. But when did credit score start and 1882 01:35:51.000 --> 01:35:54.119 what did people use before this system? Learning about the 1883 01:35:54.199 --> 01:35:56.800 credit score history helps us understand how we move from 1884 01:35:56.840 --> 01:36:00.800 personal opinions to computer based scoring. So when did they start? 1885 01:36:00.880 --> 01:36:03.720 The first credit score came out in nineteen eighty nine. However, 1886 01:36:03.800 --> 01:36:06.399 the idea of checking if someone could pay back money 1887 01:36:06.439 --> 01:36:09.439 has been around much longer. The three big the three 1888 01:36:09.479 --> 01:36:12.159 big credit reporting companies worked with Fico to create what 1889 01:36:12.239 --> 01:36:14.920 we now call a credit score. The first widely used 1890 01:36:14.920 --> 01:36:17.439 Fiico score was launched in nineteen eighty nine. We talked 1891 01:36:17.439 --> 01:36:20.600 about that this change was huge for how banks looked 1892 01:36:20.640 --> 01:36:22.920 at bar wars. Instead of making choices based off of 1893 01:36:23.039 --> 01:36:26.640 personal feelings or biases, they started using number based systems 1894 01:36:26.680 --> 01:36:29.720 that worked the same way for everyone allegedly, even though 1895 01:36:29.760 --> 01:36:33.119 that's not exactly accurate. So what people used before credit scores, 1896 01:36:33.439 --> 01:36:36.119 before credit scores existed, getting a loan was very different. 1897 01:36:36.399 --> 01:36:38.840 What was used before them was a Lenders looked at 1898 01:36:38.880 --> 01:36:42.960 things like what other people said about you, your payment record, 1899 01:36:43.239 --> 01:36:47.000 your character, and sometimes they even visited your home. People 1900 01:36:47.039 --> 01:36:48.920 who wanted loans had to meet with lender's face to 1901 01:36:48.960 --> 01:36:51.039 face and try to convince them that they were trustworthy. 1902 01:36:51.560 --> 01:36:53.640 This old way took a lot of time and had 1903 01:36:53.760 --> 01:36:57.520 many problems. Decisions often depended on who you knew or 1904 01:36:57.640 --> 01:37:01.079 social status, and sadly you're the race or gender. This 1905 01:37:01.279 --> 01:37:04.680 made the system unfair for many people. So credit reporting 1906 01:37:05.119 --> 01:37:08.239 started in eighteen forty one. So people tried to make 1907 01:37:08.279 --> 01:37:11.520 this process better As early as eighteen forty one. After 1908 01:37:11.600 --> 01:37:15.319 the money crisis of eighteen thirty seven, which happened partly 1909 01:37:15.399 --> 01:37:19.000 because credit was too easy to get, Lewis Tappan or 1910 01:37:19.079 --> 01:37:21.920 Tapin' I don't know, saw that businesses needed a better 1911 01:37:22.000 --> 01:37:26.000 way to decide who invented credit decisions? Yeah, So in 1912 01:37:26.079 --> 01:37:30.239 eighteen forty one he started Tapin's Mercantile Agency, the first 1913 01:37:30.319 --> 01:37:34.359 credit reporting company in America. Before there was credit scoring, 1914 01:37:34.439 --> 01:37:37.279 there was a business credit reporting. This was different from 1915 01:37:37.359 --> 01:37:42.600 checking individuals individual people's credit risk. Business credit reporting helped 1916 01:37:42.640 --> 01:37:46.039 store owners figure out if other businesses could pay their bills. 1917 01:37:46.479 --> 01:37:49.439 In eighteen forty one, the Mercantile Agency asked people across 1918 01:37:49.560 --> 01:37:52.600 the country for information to organize a bar wars quote 1919 01:37:52.680 --> 01:37:57.319 unquote character and money. But this information was too personal 1920 01:37:57.399 --> 01:38:00.840 and often showed unfair opinions about race, class, and gender. 1921 01:38:01.399 --> 01:38:04.199 So why was the credit scores invented? We talked about 1922 01:38:04.199 --> 01:38:06.560 that already, but you know, just giving it over here, 1923 01:38:07.279 --> 01:38:10.399 getting rid of the old of the personal biases. Always 1924 01:38:10.439 --> 01:38:13.039 of checking credit, we're heavily influenced by a personal relationship, 1925 01:38:13.159 --> 01:38:16.359 social class, race, and gender. Credit scoring systems were built 1926 01:38:16.399 --> 01:38:20.039 to make more fair and standard checks, making things faster. 1927 01:38:20.479 --> 01:38:22.880 Checking credit by hand took too long and cost too 1928 01:38:22.960 --> 01:38:26.880 much money. Automatic scoring systems let lenders handle applicants much 1929 01:38:27.000 --> 01:38:29.560 faster and cheaper. I mean, think about that too. If 1930 01:38:29.560 --> 01:38:31.800 you were a loan officer at a bank, and depending 1931 01:38:31.840 --> 01:38:34.159 on the status of the loans that you were approving, 1932 01:38:34.760 --> 01:38:37.079 you might only get two or three of those done 1933 01:38:37.119 --> 01:38:39.560 in a day. Now, with a credit score, it's I 1934 01:38:39.640 --> 01:38:41.840 mean as soon as you could pull that number and 1935 01:38:41.920 --> 01:38:45.039 see if it's above a certain amount, then cool. If not, well, 1936 01:38:45.159 --> 01:38:46.960 too bad. So sad, here's the print out. Get out 1937 01:38:46.960 --> 01:38:47.439 of my office. 1938 01:38:48.319 --> 01:38:51.319 I mean, the algorithm though, tells them yes or no, exactly. 1939 01:38:51.319 --> 01:38:53.399 It's not even. It's not even not to the people anymore. 1940 01:38:53.479 --> 01:38:54.199 They have no say. 1941 01:38:54.279 --> 01:38:56.560 It's about the algorithm. It takes all of your information, 1942 01:38:56.720 --> 01:39:00.359 it generates it through and then it decides if you're worth. 1943 01:39:00.199 --> 01:39:00.520 It or not. 1944 01:39:00.960 --> 01:39:03.119 Because it's gonna like if you buy a car, it 1945 01:39:03.239 --> 01:39:07.000 tells them all three of the different scores and then 1946 01:39:07.039 --> 01:39:09.960 it averages them out, and then it debates about if 1947 01:39:10.159 --> 01:39:12.520 the then it gets sold to the banks in whichever 1948 01:39:12.640 --> 01:39:15.359 bank decides that maybe you're worth it or not is 1949 01:39:15.439 --> 01:39:16.560 the ones that will pick it up. 1950 01:39:16.600 --> 01:39:18.560 And if there are no banks that are wanting you, 1951 01:39:18.640 --> 01:39:19.680 then you don't get to buy a car. 1952 01:39:19.840 --> 01:39:22.039 But some of the banks will be like, okay, i'll 1953 01:39:22.119 --> 01:39:25.319 take it, but your interest rate is like sixty two percent, 1954 01:39:25.520 --> 01:39:28.319 Like it's right, they can, and they'll bump the interest 1955 01:39:28.399 --> 01:39:31.079 right up because of your credit score, because it's not 1956 01:39:31.199 --> 01:39:35.119 good enough and you have stuff deming your credit report, 1957 01:39:35.359 --> 01:39:35.640 and so. 1958 01:39:37.119 --> 01:39:39.520 You know, it's it's a whole thing it is so. 1959 01:39:39.640 --> 01:39:42.760 For anybody who didn't know. FICO scores ranged from three 1960 01:39:42.920 --> 01:39:46.279 hundred to eight fifty. Higher numbers show better ability to 1961 01:39:46.359 --> 01:39:48.840 pay back loans, and this scoring system has become the 1962 01:39:48.960 --> 01:39:52.319 industry standard used in most lending decisions today, and not 1963 01:39:52.439 --> 01:39:54.720 just on a personal level, even a business level. So 1964 01:39:55.000 --> 01:39:57.399 do other countries have credit scores? We just talked about that. 1965 01:39:57.560 --> 01:40:00.199 FICO is in eighty plus countries, but I'll bring a 1966 01:40:00.199 --> 01:40:02.439 couple of them here. The United Kingdom uses credit scores 1967 01:40:02.680 --> 01:40:05.880 from companies like Experience, Equal Facts and TransUnion, but with 1968 01:40:06.000 --> 01:40:09.079 different number ranges. Canada has a similar system to the 1969 01:40:09.199 --> 01:40:11.800 United States, but with their scoring ranges from three hundred 1970 01:40:11.840 --> 01:40:12.680 to nine hundred. 1971 01:40:13.239 --> 01:40:16.760 Germany uses other people had some do I know, I 1972 01:40:16.800 --> 01:40:18.680 thought this was an American thing. I'm not gonna lie 1973 01:40:18.680 --> 01:40:20.000 to you. I mean I felt like there was some 1974 01:40:20.199 --> 01:40:22.439 type of something for other countries. I just didn't know 1975 01:40:22.520 --> 01:40:24.960 that it was FICO in particular. 1976 01:40:24.880 --> 01:40:27.920 Basically, I mean, but they they might call it something else, 1977 01:40:28.000 --> 01:40:33.039 like for instance, in Germany they use SHUFA sc CHUFA scoring, 1978 01:40:33.399 --> 01:40:35.720 but it's still using fika's data. So I mean, it 1979 01:40:35.800 --> 01:40:38.039 is what it is, and it works differently from the 1980 01:40:38.159 --> 01:40:40.479 US system, but it's still pretty much the same thing. 1981 01:40:40.520 --> 01:40:41.880 It works a little different as far as the numbers 1982 01:40:41.880 --> 01:40:45.920 are concerned. Australia has detailed credit reporting with multiple credit agencies, 1983 01:40:46.239 --> 01:40:49.119 so again this is being used for uh. This is 1984 01:40:49.319 --> 01:40:52.920 how credit scores changed modern life. Since they started in 1985 01:40:52.960 --> 01:40:55.720 eighty nine, credit scores have completely changed how Americans get 1986 01:40:55.800 --> 01:41:00.159 credit and financial services. They have become key factors in 1987 01:41:00.399 --> 01:41:05.359 home loans, credit card applications, apartment riddles, insurance cost. Yes, 1988 01:41:05.920 --> 01:41:08.960 your credit score matters in the realm of how much 1989 01:41:09.119 --> 01:41:12.920 insurance you pay. Job screening. I have had my credit 1990 01:41:13.000 --> 01:41:16.359 pulled multiple times when I got jobs for different plants 1991 01:41:16.399 --> 01:41:19.800 and refineries. Yes, because they need to know. Oh yeah, 1992 01:41:20.079 --> 01:41:22.760 because this this, and I had it broken down for 1993 01:41:22.840 --> 01:41:25.880 me like this. The company needs to know if you're 1994 01:41:25.960 --> 01:41:28.880 the type of guy or girl that goes out and 1995 01:41:29.000 --> 01:41:31.760 makes a bunch of purchases that you can't back and 1996 01:41:31.920 --> 01:41:34.880 now you're gonna be coming to work worried about other 1997 01:41:35.000 --> 01:41:37.880 things other than work, or you're gonna be trying to, 1998 01:41:39.159 --> 01:41:41.760 you know, take out loans and use certain things as collateral, 1999 01:41:41.960 --> 01:41:44.840 or whatever the case. It seemed as very risky on 2000 01:41:45.000 --> 01:41:50.119 a employment standard to have a bad credit score as well. Okay, yeah, okay, 2001 01:41:50.520 --> 01:41:54.399 and utility deposits anyway, all right, moving on to the 2002 01:41:54.479 --> 01:41:57.840 next thing. So this is what is in your FICO score. 2003 01:41:58.479 --> 01:42:02.359 There's five category that they look into. Here, let's talk 2004 01:42:02.399 --> 01:42:05.000 about it here. Thirty percent of your FYCO score is 2005 01:42:05.039 --> 01:42:09.760 the amounts that you owe, ten percent is new credit, 2006 01:42:11.319 --> 01:42:16.520 fifteen percent is length of credit history, ten percent is 2007 01:42:16.560 --> 01:42:20.720 your maximum credit, and thirty five percent is your payment history. 2008 01:42:20.760 --> 01:42:24.560 And again, some of that is per the individual, a 2009 01:42:24.680 --> 01:42:27.640 lot of it goes more towards the demographic of the whole. 2010 01:42:28.239 --> 01:42:30.600 I just don't see how they can use the demographic 2011 01:42:30.680 --> 01:42:34.399 around you to influence your FYCO score a. 2012 01:42:34.560 --> 01:42:38.159 Wild because it's easier that way, it's quicker. They don't 2013 01:42:38.199 --> 01:42:41.600 have to pull they don't have to pull Jacob's total 2014 01:42:41.680 --> 01:42:44.039 financial history from the time I was eighteen to now. 2015 01:42:44.560 --> 01:42:47.239 They could pull some key factors from it. Sure, they 2016 01:42:47.239 --> 01:42:50.039 could look at every loan that has my Social Security 2017 01:42:50.119 --> 01:42:52.760 number attached to it, for sure, absolutely, But then when 2018 01:42:52.760 --> 01:42:55.439 it comes back to you know, payment histories and the 2019 01:42:55.560 --> 01:42:59.319 max credit and what's considered new credit, they're looking at 2020 01:42:59.359 --> 01:43:02.840 different facts for that. These percentages aren't exactly as clear 2021 01:43:02.960 --> 01:43:07.800 cut as as they might sound. Honestly. So let's see here, 2022 01:43:08.199 --> 01:43:10.640 let's go down that buy Fico's own metrics. 2023 01:43:10.680 --> 01:43:10.800 Here. 2024 01:43:10.840 --> 01:43:13.039 This is myfyco dot com that I'm on right now. 2025 01:43:13.239 --> 01:43:16.880 So payment history, Yeah, we're starting there. The first thing 2026 01:43:16.960 --> 01:43:19.359 any lender wants to know is whether you've paid past 2027 01:43:19.399 --> 01:43:21.720 credit amounts on time. This helps the lender figure out 2028 01:43:21.760 --> 01:43:24.680 the amount of risk it will take on when extending credit. 2029 01:43:25.119 --> 01:43:28.840 This is the most important factor in a FYCO score. Sure, sure, 2030 01:43:29.319 --> 01:43:32.199 but again that is if you were making payments that 2031 01:43:32.319 --> 01:43:36.520 were reported to the credit bureau. If you're renting from 2032 01:43:36.600 --> 01:43:40.199 somebody who doesn't report it, then it doesn't matter the 2033 01:43:40.279 --> 01:43:44.680 amounts owed. Having credit accounts and owing money on them 2034 01:43:44.960 --> 01:43:47.439 does not necessarily mean you are a high risk borrow 2035 01:43:47.560 --> 01:43:50.640 or with a low FICO score. However, if you are 2036 01:43:50.760 --> 01:43:53.720 using a lot of your available credit, this may indicate 2037 01:43:53.800 --> 01:43:56.760 that you are over extended, and banks can interpret this 2038 01:43:56.880 --> 01:43:59.920 to mean that you are at a high risk of defaults. 2039 01:44:00.960 --> 01:44:03.800 So let's say you're approved for ten thousand dollars worth 2040 01:44:03.840 --> 01:44:06.239 of credit. You need to use it, otherwise it's going 2041 01:44:06.319 --> 01:44:08.479 to look like inactive credit with that's not good. That's 2042 01:44:08.520 --> 01:44:10.560 not going to generate income, that's not going to generate 2043 01:44:10.640 --> 01:44:13.199 interest for banks. You can't have that. You need to 2044 01:44:13.319 --> 01:44:15.760 use it, but you don't need to use nine thousand 2045 01:44:15.800 --> 01:44:18.239 of that ten. Maybe use like one thousand of that 2046 01:44:18.359 --> 01:44:20.640 ten and pay it off incrementally in these types of things, 2047 01:44:20.760 --> 01:44:24.359 right anyway, length of credit history in general, having a 2048 01:44:24.399 --> 01:44:26.760 long ait credit history is positive for your FCO score, 2049 01:44:26.880 --> 01:44:29.760 but is not required for a good credit score. And 2050 01:44:29.920 --> 01:44:31.520 of course that makes sense as well. They want to 2051 01:44:31.560 --> 01:44:34.720 know if you're somebody who has participated in the economic 2052 01:44:34.800 --> 01:44:37.279 system for a few years or a few decades. This 2053 01:44:37.439 --> 01:44:41.680 matters credit mix. FIGHTO scores will consider your mix of 2054 01:44:41.760 --> 01:44:46.199 credit cards, retail accounts, installment loans, finance company accounts, and 2055 01:44:46.359 --> 01:44:49.119 mortgage loans. Don't worry, it's not necessary to have one 2056 01:44:49.199 --> 01:44:52.960 of each. Well, thank fucking god, go ahead, no kidding, 2057 01:44:53.119 --> 01:44:56.640 Like yeah, they want to know if you have, you know, 2058 01:44:56.920 --> 01:44:59.920 all these different types of loans and different types of debt, 2059 01:45:00.399 --> 01:45:02.760 or you just you know, you own your own your 2060 01:45:02.840 --> 01:45:05.039 home outright, but you only have like two car loans. 2061 01:45:05.479 --> 01:45:08.279 That's that's not a very diverse debt portfolio, you know 2062 01:45:08.319 --> 01:45:10.640 what I mean. That's not good for business. And then 2063 01:45:10.760 --> 01:45:14.119 new credit research shows that opening several credit accounts in 2064 01:45:14.159 --> 01:45:17.239 a short amount of time represents a greater risk, especially 2065 01:45:17.319 --> 01:45:20.600 for people who don't have a long credit history. What's 2066 01:45:20.640 --> 01:45:22.680 crazy about that one is to get approved from my 2067 01:45:22.800 --> 01:45:25.840 card note I had to take on a five hundred 2068 01:45:25.880 --> 01:45:29.600 dollars credit card. Why did I have to open a 2069 01:45:29.840 --> 01:45:34.079 small line of credit to get approved for my car loan? Well, 2070 01:45:34.119 --> 01:45:36.079 it's because it helped your credit score. It's like, that's 2071 01:45:36.159 --> 01:45:38.760 fucking retarded out loud. But they would not let me 2072 01:45:38.840 --> 01:45:41.079 leave that lot until Capital want top prove me for 2073 01:45:41.159 --> 01:45:44.840 a five hundred dollars card, which I'm not using. I 2074 01:45:44.920 --> 01:45:46.960 don't need it. My credit score is fucked anyway, I 2075 01:45:47.039 --> 01:45:52.039 just got forced whatever. But anyway, So now interesting, what's 2076 01:45:52.079 --> 01:45:53.800 your thoughts on all this? Raven? Look like you're reading 2077 01:45:53.840 --> 01:45:55.239 in on some I am. 2078 01:45:55.279 --> 01:45:57.079 I'm listening to you, but I'm reading in on an 2079 01:45:57.199 --> 01:46:01.239 article that says Fico Fire's back call Vantage Schooler and 2080 01:46:01.319 --> 01:46:05.399 the credit Bureau a de facto monopoly. And it's from 2081 01:46:05.479 --> 01:46:08.399 last year and apparently they felt some type of way 2082 01:46:08.720 --> 01:46:13.600 about the mortgage company's decisions by using Vantage Score as well. 2083 01:46:14.239 --> 01:46:15.239 And I was just reading. 2084 01:46:15.279 --> 01:46:17.920 I just opened it, and so I was like, hmm, interesting, 2085 01:46:18.039 --> 01:46:22.239 but it's it's talking about how the federal Housing Finance 2086 01:46:22.319 --> 01:46:28.319 Agencies decided to sponsor and accept Vantage Score four point zero, 2087 01:46:28.880 --> 01:46:31.439 and it was owned, it's owned by three major It's 2088 01:46:31.520 --> 01:46:35.119 owned by the three major US credit bureaus, Experience, ECOFAX, 2089 01:46:35.199 --> 01:46:40.079 and TransUnion, and so true, FIICO is pissed because they 2090 01:46:40.199 --> 01:46:43.319 opened up their own shit and told FICO pretty much like, 2091 01:46:43.920 --> 01:46:45.439 I guess we'll work with you if we have to, 2092 01:46:45.960 --> 01:46:49.079 right right, Yeah, And so I was just kind of 2093 01:46:49.119 --> 01:46:49.720 glancing through. 2094 01:46:49.800 --> 01:46:51.319 I was trying to read what they said about it 2095 01:46:51.439 --> 01:46:51.840 and stuff. 2096 01:46:51.920 --> 01:46:54.800 But I don't think Fair and Isaac had that interest 2097 01:46:54.880 --> 01:46:59.159 in mind. I honestly think that they might maybe maybe they. 2098 01:46:59.119 --> 01:47:01.680 Were doing it for a good Who owns FICO? 2099 01:47:01.840 --> 01:47:03.800 Now, Oh, they're a public trading company. 2100 01:47:04.640 --> 01:47:07.560 Mm so, because when I was looking into it, Vanderberg 2101 01:47:08.960 --> 01:47:13.159 they were talking about how they base their credit behavior 2102 01:47:13.760 --> 01:47:15.840 that they work with FICO hand in hand on the 2103 01:47:15.880 --> 01:47:18.800 credit behavior side. So black Rock works on the other 2104 01:47:19.239 --> 01:47:23.880 side of it, Vanderberg being Vanguard and Vanguard excuse me, 2105 01:47:24.039 --> 01:47:26.479 but ah, yeah, they work on the other part of 2106 01:47:26.600 --> 01:47:32.199 it with the with a credit behavior aspect, and so 2107 01:47:32.359 --> 01:47:35.119 they're kind of split between all of them. What they're 2108 01:47:35.159 --> 01:47:38.680 doing with FICO and then Equo Facts, Experience and Transusion 2109 01:47:39.000 --> 01:47:42.640 Union decided that they wanted their own, so they own 2110 01:47:42.880 --> 01:47:43.560 vantage Score. 2111 01:47:44.039 --> 01:47:45.399 It's a de facto monopoly. 2112 01:47:45.439 --> 01:47:47.640 If anyone thinks that they're going to get going to 2113 01:47:47.760 --> 01:47:50.399 lower pricing in the long term, it's just a mistake. 2114 01:47:50.680 --> 01:47:53.279 They're going to have all the power, is what Fico 2115 01:47:53.920 --> 01:47:55.239 said about. 2116 01:47:54.960 --> 01:47:58.720 This in reality. In reality is because Fiko understands that 2117 01:47:58.800 --> 01:48:01.119 this is their only comp petition, so they're trying to 2118 01:48:01.119 --> 01:48:02.199 make it seem like they're evil. 2119 01:48:03.159 --> 01:48:05.239 So it says and they are effectively going to be 2120 01:48:05.279 --> 01:48:08.279 able to control not just Vantage Score and the credit 2121 01:48:08.560 --> 01:48:10.640 report pricing, but they're going to be able to actually 2122 01:48:10.680 --> 01:48:13.479 control Fiico Score and squeeze us out of the market. 2123 01:48:14.000 --> 01:48:17.720 They will eventually be no choice in this market because 2124 01:48:17.800 --> 01:48:19.960 they have actually become a facto and that is the 2125 01:48:20.039 --> 01:48:22.399 mortgage professional American company that said that. 2126 01:48:23.119 --> 01:48:27.520 Yeah, so it's a really it's shitty all the way around, 2127 01:48:27.720 --> 01:48:29.199 And again I don't think that was what it was 2128 01:48:29.239 --> 01:48:31.439 intended for, but that is what it has become. 2129 01:48:33.119 --> 01:48:36.880 So yeah, I mean, they we so they charge interesting, 2130 01:48:37.079 --> 01:48:40.039 so we are transparent about what our prices are and 2131 01:48:40.159 --> 01:48:44.720 nobody else in this ecosystem is we charge ecosystem. 2132 01:48:44.960 --> 01:48:45.920 We charge four. 2133 01:48:45.840 --> 01:48:48.680 Point nine four dollars and ninety five cents as royalaty 2134 01:48:48.720 --> 01:48:51.279 fees for the fight Go score, and that's where the 2135 01:48:51.359 --> 01:48:55.159 transparency starts and ends in terms of approximately one hundred 2136 01:48:55.159 --> 01:48:58.720 and twenty dollars credit report costs. It is if it 2137 01:48:58.880 --> 01:49:01.760 is try management that one hundred and twenty four dollars, 2138 01:49:01.920 --> 01:49:04.199 we are fourteen dollars and eighty five cents. So the 2139 01:49:04.279 --> 01:49:07.039 vast majority of eighty five percent of the cost is 2140 01:49:07.159 --> 01:49:10.119 not coming from FICO. So they're pretty much arguing that 2141 01:49:10.640 --> 01:49:13.680 trans that vantage point is going to take over everything, 2142 01:49:13.920 --> 01:49:18.640 force FICO to cause to increase their rates of how 2143 01:49:18.720 --> 01:49:20.840 much it is to actually get it, and then they're 2144 01:49:20.880 --> 01:49:23.760 going to squeeze out everybody else overall. 2145 01:49:24.520 --> 01:49:27.199 I believe it one hundred percent. Actually, now the credit 2146 01:49:27.239 --> 01:49:29.479 bureaus have decided they don't want to use FICO anymore 2147 01:49:29.520 --> 01:49:32.239 because they could just keep that shit in house and 2148 01:49:32.359 --> 01:49:35.640 make that money for themselves. Yeah, that's that's asa. 2149 01:49:36.600 --> 01:49:39.560 They're still utilizing FICO in a way and forcing their 2150 01:49:39.600 --> 01:49:40.880 hand to raise their costs. 2151 01:49:41.399 --> 01:49:45.079 Yeah, that's crazy. So now we're going to cut over 2152 01:49:45.119 --> 01:49:47.399 to a video from the One and Only King Trout 2153 01:49:47.399 --> 01:49:49.239 and if you haven't checked him out. I highly recommend him. 2154 01:49:49.399 --> 01:49:51.840 I love this dude's content, but he's going to kind 2155 01:49:51.880 --> 01:49:54.439 of round out this episode for us and tell us 2156 01:49:54.439 --> 01:49:57.119 a little bit more about the whole system, if you will. 2157 01:49:58.079 --> 01:50:01.359 Millions of Americans were now in digit files, and in 2158 01:50:01.520 --> 01:50:06.640 nineteen eighty nine, nineteen eighty nine, less than forty years ago. 2159 01:50:07.319 --> 01:50:10.720 Everybody thinks credit scores have been around for eternity. Nope, no, 2160 01:50:11.159 --> 01:50:16.199 like your grandpa was born before credit scores existed anyway. 2161 01:50:16.359 --> 01:50:19.479 In nineteen eighty nine, Fiico convinced these three companies to 2162 01:50:20.079 --> 01:50:24.239 standardize the score that they evaluated you with, not because 2163 01:50:24.359 --> 01:50:26.680 it was the best or made the most sense, but 2164 01:50:26.800 --> 01:50:30.720 because it was the easiest to scale, and bing bang boom, Overnight, 2165 01:50:30.840 --> 01:50:34.439 a private company's imaginary, made up number became the gatekeeper 2166 01:50:34.520 --> 01:50:37.119 to determine whether or not you can get a mortgage, 2167 01:50:37.399 --> 01:50:40.800 or a car, or an apartment or some jobs. There 2168 01:50:40.920 --> 01:50:43.640 was no vote held, no law was enacted, and there 2169 01:50:43.720 --> 01:50:48.039 was no public debate, just spreadsheets. Credit scores didn't rise 2170 01:50:48.079 --> 01:50:50.840 to prominence because they're fair. They rose to prominence because 2171 01:50:50.880 --> 01:50:55.560 they made it easier and more streamlined for banks, insurers, corporations, 2172 01:50:55.600 --> 01:50:58.680 and landlords to streamline the process by which they approve 2173 01:50:58.880 --> 01:51:02.039 or deny you. They turned financial life into something that 2174 01:51:02.119 --> 01:51:06.760 could be automated, controlled, and monetized. Your FYCO score uses 2175 01:51:06.840 --> 01:51:11.319 five major weighted categories your payment history, your credit utilization, 2176 01:51:11.720 --> 01:51:14.800 the length of your credit history, your credit mix, and 2177 01:51:14.960 --> 01:51:18.479 your new credit. But inside those categories are hundreds of 2178 01:51:18.640 --> 01:51:22.479 sub variables. Time since your last miss payment, size of 2179 01:51:22.520 --> 01:51:25.600 that last miss payment, your balance relative to your limit, 2180 01:51:26.640 --> 01:51:29.880 the velocity at which you spend money, and hundreds of 2181 01:51:29.920 --> 01:51:33.439 other variables. Also, the model doesn't care if you've paid 2182 01:51:33.479 --> 01:51:36.840 your rent on time every month for the past twenty years. 2183 01:51:37.439 --> 01:51:40.680 If your landlord wasn't reporting it to the bureau, it 2184 01:51:41.159 --> 01:51:43.640 never happened. The thing that most people don't seem to 2185 01:51:43.760 --> 01:51:46.760 understand is that these credit scoring systems do not want 2186 01:51:47.000 --> 01:51:52.600 zero debt. They want active, predictable, interest generating debt. If 2187 01:51:52.640 --> 01:51:55.279 you pay off all your cards, your utilization goes to zero, 2188 01:51:55.680 --> 01:52:00.479 your activity drops, and your profit profile disappears, which to 2189 01:52:00.720 --> 01:52:06.880 the model that looks like risk Because inactive debtors don't 2190 01:52:07.039 --> 01:52:21.800 make them money. You're rewarded for being in debt responsibly, 2191 01:52:22.279 --> 01:52:24.760 and that is why people like me who do not 2192 01:52:24.960 --> 01:52:27.880 maintain debt and buy nearly everything. 2193 01:52:27.680 --> 01:52:29.720 With cash that I actually have. 2194 01:52:30.039 --> 01:52:31.920 That's right, I don't have a credit card. 2195 01:52:32.159 --> 01:52:32.720 I never have. 2196 01:52:33.520 --> 01:52:36.840 People like us have credit scores live in the pod, 2197 01:52:37.000 --> 01:52:40.359 eat the bugs, stay in forever. Debt credit models aren't 2198 01:52:40.520 --> 01:52:46.119 simple formulas. They use logistic regression, survival analysis, machine learning models, 2199 01:52:46.199 --> 01:52:50.760 and cohort behavior tracking. They're working off the history of 2200 01:52:51.600 --> 01:52:54.920 millions of borrowers. What do all of those fancy words 2201 01:52:54.960 --> 01:52:58.159 that I just said mean? Basically, in summary, your credit 2202 01:52:58.199 --> 01:53:02.760 score isn't necessarily determined by your behavior. A lot of 2203 01:53:02.840 --> 01:53:06.119 it is determined by the behavior of people who they 2204 01:53:06.199 --> 01:53:11.159 have decided these agencies have decided are mathematically similar to you. 2205 01:53:11.760 --> 01:53:14.279 And that's why it can get pretty funny. You and 2206 01:53:14.439 --> 01:53:17.000 someone else can do the exact same thing, and one 2207 01:53:17.039 --> 01:53:19.800 of your credit scores goes up and the other goes down. 2208 01:53:20.319 --> 01:53:20.520 Why. 2209 01:53:21.119 --> 01:53:24.479 Well, because you're in different cohorts, your risk groups are different, 2210 01:53:24.560 --> 01:53:28.239 your statistical twins behave differently, and the system isn't tracking 2211 01:53:28.640 --> 01:53:32.960 what you did, it's tracking what people statistically similar to 2212 01:53:33.119 --> 01:53:37.239 you are likely to do next. The credit scoring models 2213 01:53:37.239 --> 01:53:41.199 are also proprietary. This means you can't audit them. You 2214 01:53:41.279 --> 01:53:45.239 can't really know what's actually taking place. Behind the scenes. 2215 01:53:45.760 --> 01:53:49.760 There's no meaningful way the challenge any errors, and you 2216 01:53:49.880 --> 01:53:54.000 can't prove discrimination. You're judged by a system that you're 2217 01:53:54.079 --> 01:53:59.159 not allowed to understand. Slave to the financial algorithm. Credit 2218 01:53:59.199 --> 01:54:02.439 scores whenever about helping people. That are about scaling debt, 2219 01:54:02.600 --> 01:54:07.439 reducing lender risk, automating social sorting, and turning your financial 2220 01:54:07.520 --> 01:54:11.079 life into a data pipeline. Your future is decided by 2221 01:54:11.119 --> 01:54:15.560 a probability curve, not because you're bad, but because an 2222 01:54:15.600 --> 01:54:19.800 equation decided that somebody like you once was, stay in 2223 01:54:19.880 --> 01:54:24.520 debt forever and consume, consume, consume. It's good for the economy. 2224 01:54:26.079 --> 01:54:29.560 I do, in fact love King Charles's content, and he 2225 01:54:30.439 --> 01:54:33.039 was not wrong on any of the things that he 2226 01:54:33.199 --> 01:54:36.079 just listed. Just are all clear here. So with all 2227 01:54:36.199 --> 01:54:39.079 that being taken into account, here you see what I'm 2228 01:54:39.079 --> 01:54:41.159 saying that your credit score actually, yes, some of it 2229 01:54:41.279 --> 01:54:43.560 has to do with you, but primarily it has to 2230 01:54:43.640 --> 01:54:46.920 do with the statistics of other people that fall into 2231 01:54:47.000 --> 01:54:49.560 a certain demographic that you had no say so in. 2232 01:54:50.920 --> 01:54:53.039 That's wild to me. I had no idea. I really 2233 01:54:53.079 --> 01:54:55.960 thought this was solely just a you thing. That's what 2234 01:54:56.119 --> 01:54:58.800 I least was taught. I mean, I felt like I 2235 01:54:58.960 --> 01:55:01.880 opened up a bank account when I was fourteen. I 2236 01:55:01.960 --> 01:55:04.920 got my first credit card when I was fifteen, because 2237 01:55:04.920 --> 01:55:08.279 I started working when I was fourteen, and so I, like, 2238 01:55:08.640 --> 01:55:10.760 I would charge one hundred dollars and then I would 2239 01:55:10.800 --> 01:55:12.960 pay it down over two times. And I would do 2240 01:55:13.039 --> 01:55:14.960 that because I was supposed to build my credit. So 2241 01:55:16.239 --> 01:55:18.000 you know, that's that's what I was taught to do. 2242 01:55:18.640 --> 01:55:21.279 I didn't realize that I went off everyone around me too. 2243 01:55:21.800 --> 01:55:24.520 I figured it was just, you know, solely me, I'm 2244 01:55:24.560 --> 01:55:26.880 in control. But I never understood when I got divorced 2245 01:55:26.960 --> 01:55:31.239 why my credit score drops so significantly versus being married. 2246 01:55:31.319 --> 01:55:33.199 I just didn't understand. I was like, I didn't open 2247 01:55:33.199 --> 01:55:34.640 anything up, we didn't charge. 2248 01:55:34.680 --> 01:55:36.239 You know, you're not alloted of charging thing or do 2249 01:55:36.319 --> 01:55:38.640 anything while you're going through the divorced proceedings. 2250 01:55:38.720 --> 01:55:41.640 So yeah, the fuck. But it had nothing to do 2251 01:55:41.760 --> 01:55:44.359 with that, believe it or not. It had everything to 2252 01:55:44.479 --> 01:55:48.520 do with other people like you in your tax bracket 2253 01:55:48.680 --> 01:55:51.760 in your area of the country who are recently divorced 2254 01:55:51.880 --> 01:55:55.159 are more likely to start making some outland just expenditures, 2255 01:55:55.479 --> 01:55:59.199 possibly even lose their job, possibly foreclothes on a house, 2256 01:55:59.560 --> 01:56:02.680 possibly start selling some assets, whatever, the case is, it 2257 01:56:02.800 --> 01:56:05.079 had nothing to do with what you had going on. 2258 01:56:05.479 --> 01:56:07.840 It had nothing to do with your finances. It had 2259 01:56:07.840 --> 01:56:12.119 everything to do with statistics that didn't favor you for 2260 01:56:12.239 --> 01:56:14.840 people that were going through a very similar situation to you. 2261 01:56:15.800 --> 01:56:19.039 And that's how credit scores are actually made. And like 2262 01:56:19.119 --> 01:56:21.640 he had said, there's no way of auditing this, there's 2263 01:56:21.680 --> 01:56:24.720 no way of reaching out to TransUnion and being like, hey, 2264 01:56:25.560 --> 01:56:28.920 I looked at the print out of what you said 2265 01:56:29.079 --> 01:56:31.600 about my credit history, and I have a couple of 2266 01:56:31.600 --> 01:56:35.640 discrepancies I wanted to iron out with you. No, that's 2267 01:56:35.680 --> 01:56:38.359 how this works. That's how any of this works. You're 2268 01:56:38.399 --> 01:56:39.720 at the behest of these companies. 2269 01:56:40.319 --> 01:56:43.000 You can change certain things, but it's I mean, it 2270 01:56:43.079 --> 01:56:43.680 takes so much. 2271 01:56:43.760 --> 01:56:46.119 Like I said earlier, I've been trying for years to 2272 01:56:46.199 --> 01:56:48.640 get stuff removed from mine. I know people that have 2273 01:56:48.760 --> 01:56:52.159 removed a shit ton of stuff off of their credit scores. 2274 01:56:52.640 --> 01:56:57.119 But there's sometimes you can be able to change things. 2275 01:56:57.159 --> 01:56:58.960 Sometimes you can't. You can talk to them and you 2276 01:56:59.000 --> 01:57:02.439 can call them, but they don't always help. 2277 01:57:02.600 --> 01:57:04.680 I mean, was kind of a but you don't. 2278 01:57:04.840 --> 01:57:07.079 I never knew that it was going off everyone else, 2279 01:57:07.199 --> 01:57:10.239 So I mean, and then when you have stuff linked 2280 01:57:10.239 --> 01:57:14.000 to your exes. That stuff I've always wondered if it's 2281 01:57:14.079 --> 01:57:15.560 still somehow us connected. 2282 01:57:15.760 --> 01:57:18.520 Because I noticed that he asked me. 2283 01:57:19.439 --> 01:57:21.520 He's like, hey, my credit score has dropped a good 2284 01:57:21.560 --> 01:57:24.800 bit has yours. I went and looked, mind dropped thirty 2285 01:57:25.159 --> 01:57:27.800 points too, just like his dead, even though we have 2286 01:57:27.920 --> 01:57:30.920 nothing connected. At the exact same time, it didn't make 2287 01:57:30.920 --> 01:57:31.600 any sense to me. 2288 01:57:32.159 --> 01:57:36.680 Oh, my first divorce, my credit score dropped significantly. My 2289 01:57:36.800 --> 01:57:39.079 ex wife's dropped thirty points. 2290 01:57:40.640 --> 01:57:41.439 That's so weird. 2291 01:57:42.039 --> 01:57:44.039 Continuing on with that of how in the hell does 2292 01:57:44.079 --> 01:57:46.600 that make sense? I was the one that was pretty 2293 01:57:46.680 --> 01:57:49.520 much the breadwinner the entire time we were married. All 2294 01:57:49.560 --> 01:57:52.119 of the loans ran my name, and I never defaulted 2295 01:57:52.199 --> 01:57:56.039 on a single payment on anything. Ever, So just because 2296 01:57:56.119 --> 01:57:59.600 I was a man, my credit score took a massive hit. 2297 01:57:59.720 --> 01:58:02.960 There was no rhyme or reason behind that, except now 2298 01:58:03.079 --> 01:58:06.239 we know statistically other people. 2299 01:58:06.760 --> 01:58:10.119 That look like wowing outs after divorce, so people are like, yeah, 2300 01:58:10.199 --> 01:58:11.199 fuck your credit score. 2301 01:58:11.399 --> 01:58:13.920 Basically, they saw me as a high risk, and they 2302 01:58:13.960 --> 01:58:16.479 didn't want me as a recently divorced man who had 2303 01:58:16.560 --> 01:58:19.119 a stable job and all these things. They didn't want 2304 01:58:19.199 --> 01:58:21.479 me going and start and get approved for some very 2305 01:58:21.640 --> 01:58:24.960 high loans. I wasn't going to go buy a new truck. 2306 01:58:25.279 --> 01:58:27.399 I wasn't about to go buy a house somewhere. I 2307 01:58:27.560 --> 01:58:30.039 was no, No, they were trying to keep me in 2308 01:58:30.159 --> 01:58:34.359 a certain left right lateral limit. Essentially. 2309 01:58:35.239 --> 01:58:37.319 I'm curious to see how this ties in as we 2310 01:58:37.439 --> 01:58:42.359 move forward with the fifteen minute cities, with the AI situation, 2311 01:58:42.680 --> 01:58:45.760 with digital currency and all of these things, how this 2312 01:58:45.960 --> 01:58:49.399 is going to continue moving on, and how this was 2313 01:58:49.560 --> 01:58:51.479 just kind of a shot out of cannon, like, Hey, 2314 01:58:51.560 --> 01:58:54.079 we did this experiment, We got this data that we 2315 01:58:54.279 --> 01:58:57.000 like quote unquote, are using and they push forward and 2316 01:58:57.079 --> 01:59:00.600 now have changed globally everyone's lives. I don't think the 2317 01:59:00.680 --> 01:59:02.680 guy was malicious in doing it, but I think that 2318 01:59:02.760 --> 01:59:05.640 it is turned into something once it got hold of 2319 01:59:05.920 --> 01:59:07.560 you know, once Blackrock got a hold of it and 2320 01:59:07.640 --> 01:59:10.560 everybody else. I think they were able to capitalize on 2321 01:59:10.600 --> 01:59:13.239 the consumer as an aspect and be able to push. 2322 01:59:13.119 --> 01:59:14.439 Forward gaining more money. 2323 01:59:14.520 --> 01:59:17.239 I mean, the more BROOKEI you are, the better little 2324 01:59:17.359 --> 01:59:19.279 worker soldier you're going to be because you're going to 2325 01:59:19.359 --> 01:59:20.720 go to work, you're going to pay your bills, and 2326 01:59:20.760 --> 01:59:22.680 you're gonna just got to try to survive. You're not 2327 01:59:22.760 --> 01:59:24.920 going to really question what's going on around you because 2328 01:59:24.960 --> 01:59:26.600 you don't have the time to do it. You're not 2329 01:59:26.680 --> 01:59:28.239 going to question what they're putting in the food because 2330 01:59:28.279 --> 01:59:29.600 you don't have time to go out and grow your 2331 01:59:29.600 --> 01:59:33.920 own damn food. Like it all ties into everything collectively 2332 01:59:35.199 --> 01:59:35.760 kind of crazy. 2333 01:59:36.239 --> 01:59:38.880 One hundred percent agreed. And that's the thing no one 2334 01:59:39.039 --> 01:59:42.159 taught us about credit scores. No one taught us about 2335 01:59:42.520 --> 01:59:45.800 how actually a debt to income ratio, while that is important, 2336 01:59:46.319 --> 01:59:49.399 is not the only factor. The actual factor is that 2337 01:59:49.479 --> 01:59:52.199 it goes off of algorithms and statistics on people that 2338 01:59:52.399 --> 01:59:54.680 look like you, that make similar money to you, from 2339 01:59:54.760 --> 01:59:57.000 your area of the country, that have been going through 2340 01:59:57.039 --> 01:59:59.319 some very similar life things that you might be going through. 2341 02:00:00.159 --> 02:00:01.880 On the back end of that, all of that data 2342 02:00:02.079 --> 02:00:04.439 is being sold to other companies so that they can 2343 02:00:04.520 --> 02:00:07.359 start bombarding you with offers for things that you didn't 2344 02:00:07.399 --> 02:00:10.199 even want. But it doesn't matter. The credit bureaus are 2345 02:00:10.239 --> 02:00:13.199 making money handover fists on a you getting trying to 2346 02:00:13.199 --> 02:00:16.039 get approved of these loans, and b the data that 2347 02:00:16.079 --> 02:00:18.800 they're selling to these advertisement agencies on the back end, 2348 02:00:19.199 --> 02:00:21.159 And on top of all of that, under this big 2349 02:00:21.359 --> 02:00:24.239 umbrella at the very tippy tippy top is the fair 2350 02:00:24.359 --> 02:00:30.039 and ISAAC Company aka Fiico, And so many people have 2351 02:00:30.399 --> 02:00:33.880 no idea where that number comes from. This arbitrary number 2352 02:00:33.920 --> 02:00:36.520 that decides what you can and can't do with your finances, 2353 02:00:36.600 --> 02:00:39.920 that credit score, it actually has very little to do 2354 02:00:40.039 --> 02:00:42.199 with you as an individual. I feel like not enough 2355 02:00:42.239 --> 02:00:44.319 people know about that, so that good cult members is 2356 02:00:44.319 --> 02:00:48.000 why I decided this episode needed to happen. And I'm 2357 02:00:48.079 --> 02:00:51.079 hoping that everybody has learned a little something from this episode. 2358 02:00:51.119 --> 02:00:53.199 Hopefully you gained a little knowledge. You might be a 2359 02:00:53.239 --> 02:00:56.039 little pissed off a lot. Yeah, you might be a 2360 02:00:56.079 --> 02:00:58.399 little pissed off. I know I am, But you know 2361 02:00:58.520 --> 02:01:01.800 that's okay. That's okay. This knowledge exchange has happened and 2362 02:01:01.880 --> 02:01:04.119 we can all move forward and grow through it together. 2363 02:01:04.960 --> 02:01:06.920 And if you're gonna make some sort of a big expenditure, 2364 02:01:07.119 --> 02:01:12.119 A have like half upfront if possible. And B if 2365 02:01:12.159 --> 02:01:13.680 you want to try to fuck with your credit score, 2366 02:01:13.840 --> 02:01:16.359 call one of these companies and they can do some 2367 02:01:16.520 --> 02:01:19.039 things to adjust your credit in like two months. But 2368 02:01:19.199 --> 02:01:22.640 understand it's not gonna They're not changing your debt, they're 2369 02:01:22.680 --> 02:01:25.439 not changing your payment history. They're moving a little bit 2370 02:01:25.479 --> 02:01:27.199 of things from point A to point B to make 2371 02:01:27.239 --> 02:01:30.079 those statistics look better on those five points that they're 2372 02:01:30.079 --> 02:01:31.479 actually pulling for your credit score. 2373 02:01:33.239 --> 02:01:34.279 Yeah, that's crazy. 2374 02:01:34.520 --> 02:01:36.399 I am actually going to check out that opt out 2375 02:01:36.439 --> 02:01:39.640 of the prescreen dot com thing. I'm definitely gonna check 2376 02:01:39.640 --> 02:01:42.039 that out and probably fill it out because I don't 2377 02:01:42.079 --> 02:01:43.079 want my data being shared. 2378 02:01:43.159 --> 02:01:44.840 I'm gonna be honest with you. I'm kind of over it. 2379 02:01:45.199 --> 02:01:47.680 Yeah, same, same, But again, that only gets shared, well, 2380 02:01:47.680 --> 02:01:50.560 at least that is only for opting out of your 2381 02:01:50.640 --> 02:01:52.720 data being shared when you apply for a new loan. 2382 02:01:53.039 --> 02:01:55.800 Whatever data they already have on you, they're sharing that. 2383 02:01:55.840 --> 02:01:58.439 They're getting paid for that. But let's say you want 2384 02:01:58.520 --> 02:01:59.960 to go for a new car or you want to 2385 02:02:00.159 --> 02:02:01.880 do a trade in, and you need your credit score 2386 02:02:01.920 --> 02:02:04.039 to get pulled. You have to sign up for these 2387 02:02:04.079 --> 02:02:06.720 websites or call the toll free number prior to going 2388 02:02:06.760 --> 02:02:09.319 to the car dealership so that they know that. But 2389 02:02:09.439 --> 02:02:11.279 it's the car dealership has nothing to do with that. 2390 02:02:11.680 --> 02:02:13.840 They need the numbers so that they can approve or 2391 02:02:13.920 --> 02:02:16.760 deny your loan. It has nothing to do with the dealership, 2392 02:02:16.760 --> 02:02:18.279 But it has nothing to do with the mortgage company. 2393 02:02:18.279 --> 02:02:20.039 It has to do with the credit bureaus themselves. 2394 02:02:20.960 --> 02:02:25.399 Okay, yeah, all right, well, hey, I learned a good 2395 02:02:25.439 --> 02:02:25.960 bit about this. 2396 02:02:26.680 --> 02:02:29.159 R Yeah, good cult members, we want to hear from you. 2397 02:02:29.359 --> 02:02:31.359 What do you think about all these things? Do you 2398 02:02:31.439 --> 02:02:34.000 think that the financial system is completely screwed? Do you 2399 02:02:34.079 --> 02:02:36.359 think that we're idiots for not knowing these things? And 2400 02:02:36.399 --> 02:02:38.640 apparently all adults know this. I have a hard time 2401 02:02:38.680 --> 02:02:41.479 believing that, but fine, whatever, tell us what you think 2402 02:02:41.479 --> 02:02:43.239 about a good cult members. But before I give that 2403 02:02:43.239 --> 02:02:45.359 shameless plug, as they're talking about the financial system and 2404 02:02:45.399 --> 02:02:47.239 all the things, I also want to make a mention. 2405 02:02:47.319 --> 02:02:48.399 If you would like to get your start in the 2406 02:02:48.399 --> 02:02:50.760 buying and selling and trading of gold and silver bullion, 2407 02:02:50.800 --> 02:02:52.720 then go to the link in the description to cocsilver 2408 02:02:52.840 --> 02:02:54.960 dot com and get your start today. When you fill 2409 02:02:55.000 --> 02:02:56.800 out your information, Our homeboy Wayne Clark would be the 2410 02:02:56.800 --> 02:02:58.279 one to reach out to you and get you square Toway. 2411 02:02:58.359 --> 02:03:00.920 Listen as they're talking about these credit scores talking about 2412 02:03:00.960 --> 02:03:03.319 loans that you can get approved or denied for. There's 2413 02:03:03.359 --> 02:03:05.279 also this other thing where maybe you don't have money 2414 02:03:05.319 --> 02:03:07.720 to put up you know, as a as upfront payment, 2415 02:03:08.000 --> 02:03:10.000 but you may have something that you could use as collateral. 2416 02:03:10.439 --> 02:03:14.119 Silver and gold bullion is excellent tangible collateral that you 2417 02:03:14.159 --> 02:03:16.760 could use to get approved or denied for certain loans, 2418 02:03:16.800 --> 02:03:19.039 regardless of a credit score. It's one of those things. 2419 02:03:19.399 --> 02:03:21.880 Silver right now is over ninety five dollars an ounce. 2420 02:03:21.960 --> 02:03:23.920 When we started this affiliate program, it was just over 2421 02:03:24.000 --> 02:03:27.079 thirty dollars an ounce, while it's still affordable to get some. 2422 02:03:27.199 --> 02:03:28.600 I know that might sound like a lot of money 2423 02:03:28.640 --> 02:03:28.960 to people. 2424 02:03:29.039 --> 02:03:29.520 I hear you. 2425 02:03:29.960 --> 02:03:32.640 But even if you just start getting a coin here there, 2426 02:03:32.960 --> 02:03:35.079 every couple of months, you might order a new coin, 2427 02:03:35.159 --> 02:03:37.439 a new little piece, whatever the case. They have a 2428 02:03:37.560 --> 02:03:40.560 wide wide range of different things that you can buy 2429 02:03:40.720 --> 02:03:43.640 off of the coc Silver website. Go check it out 2430 02:03:43.680 --> 02:03:45.560 today get your start in the buying and selling of 2431 02:03:45.640 --> 02:03:48.520 the precious medals. But another way, good cult members, that 2432 02:03:48.560 --> 02:03:50.000 you could support the show and let us know what 2433 02:03:50.079 --> 02:03:53.079 you think about the financial system, FIICO, the credit bureaus, 2434 02:03:53.199 --> 02:03:54.920 all of these things we want to hear from you 2435 02:03:55.039 --> 02:03:57.760 would be too, Please hit the five stars at the 2436 02:03:57.760 --> 02:04:00.319 shares of Licenscrit's comments, Legal Postter Reviewer shares your friends 2437 02:04:00.319 --> 02:04:02.119 of Faily Sheriff and We're here's the deal. The more 2438 02:04:02.119 --> 02:04:04.760 activity are Gouden sees across all the listening platforms, the 2439 02:04:04.840 --> 02:04:06.720 more we get promoted and more potential listeners who could 2440 02:04:06.720 --> 02:04:08.319 then become potential cult members like the rest of you. 2441 02:04:08.439 --> 02:04:10.319 Final lydies and gentlemen, why are you ready? Go check 2442 02:04:10.319 --> 02:04:12.319 out None Mystics Jonathan shown getting the same lover and 2443 02:04:12.359 --> 02:04:13.800 inspect over there with the five star reviews and the 2444 02:04:13.840 --> 02:04:16.399 positivity in the comments. Come check out The Cajun Night 2445 02:04:16.640 --> 02:04:19.000 and come join each of us for our individual Patreon 2446 02:04:19.079 --> 02:04:21.199 lives we host every Wednesday night at nine pm Central. 2447 02:04:21.319 --> 02:04:22.800 Links to those are in the description as well. 2448 02:04:22.880 --> 02:04:23.560 And we thank you. 2449 02:04:23.640 --> 02:04:25.880 Everybody's already gone and done so. And with all of 2450 02:04:25.960 --> 02:04:30.520 this being said, this was a beautiful and informative episode 2451 02:04:30.680 --> 02:04:34.119 of the Cults of Conspiracy. Now I'm the Cajun Night 2452 02:04:34.359 --> 02:04:37.399 and Rave and there's one very important, extremely vital piece 2453 02:04:37.439 --> 02:04:39.880 of information needs to learn. Just as center as human 2454 02:04:40.000 --> 02:05:16.520 as possible, No pass your blaser