Episode Transcript
Speaker 0 00:00:00 Hello, they're friends and welcome to Rewo Rewriting our Kids' Education podcast. I am your host Michelle, person and friends. We are on a journey. We are rethinking, reexamining and reeducating ourselves and our children. I was speaking with some friends the other day and we were lamenting about how useless pre-calc was, but how during our senior year of high school, they had us little ni naive 17 year olds thinking that functions and graphs held the key to a successful life. Well, I'm here to tell you that over 25 years later, they absolutely do not. But do you wanna know what we should have been learning about credit? What it is, how it works, and why we need it? My guest today, Ronnie Francois calls himself a credit hero and works with individuals and small businesses as a financial literacy advocate, educating them on the ends and the outs of the credit industry. According to financial blogger and personal finance expert, Aaron Lowry, your credit report and credit score are two of the most vital aspects of your financial health. How financially healthy are you?
Speaker 0 00:01:33 Society is becoming increasingly more dependent on credit to make purchases and other financial decisions. A good credit score is used for more than just getting a credit card or a loan. Credit scores demonstrate your history of paying your debts to entities that loan you money. But some employees are also beginning to run credit checks to see whether or not you can be trusted with company finances or other assets. If you have a history of not being financially responsible, you may run into problems finding work before you can buy a house. Mortgage lenders want to know that you won't default on your mortgage if you don't have good credit. The lender will consider it too risky to give you a loan. And if you're approved for that loan, your credit affects your interest rate. Interest rates directly impact your monthly mortgage payment or your car payment by increasing or decreasing the amount you are charged. Low credit scores will cause a loan application to be disapproved or approved, but at a much higher interest rate. So if credit is so important, why are we taught more about it in school? What should we know? Where should we be looking? Our guests today is here to help us answer a few of those questions. Ronnie Francois, thank you so much for being here with us today to talk about this important topic. Thank
Speaker 2 00:02:51 You. I definitely appreciate the opportunity.
Speaker 0 00:02:53 No problem. Like, so can you tell the viewers or the listeners right now, um, give us a little bit, bit before we delve into um, all the important information you have about financial literacy and, um, you know, the importance of credit. Tell the viewers or our listeners why we should be listening to you. Um, what, how did you, what's your background? How did you end up in teaching financial literacy and credit repair?
Speaker 2 00:03:15 Um, so I got, I got into financial service industry about 10 years ago. Um, I did about five years in life insurance industry and, you know, cause I always wanted to make a difference. I always wanted make a positive impact in my community throughout the United States. When I got to a point in my life where my credit was bad, um, it was so bad. I used to hope somebody would steal my identity. That's how bad it was. But, uh, of course that never happened. Cause if your credit is bad, nobody's gonna steal on unless they just practicing. And I went through like a lot of trials, a lot of errors, and I got to that point. I was like, you know what? I'm gonna just sit back for seven to 10 years cause it has to fall off eventually. Mm-hmm. <affirmative>. But then one thing I realized, you know, while I waiting at seven to 10 years that I was gonna have to get somewhere to live, I was gonna have to get a car.
Speaker 2 00:03:55 I was gonna have to, I was going to need credit along the way, right? So there's no way of getting around it. And then, and I'm like, well, I could just kind of, you know, just live off the bare minimum. But then I realized that I had kids and I'm like, well, you know, me having bad credit will have a negative impact on my household, my kids and my family. So I'm like, you know what? Lemme get my act together. Let me do it for my kids. Lemme do it for my family. Cause that's what most responsible adults do. Mm-hmm. <affirmative>, they have kids. And, but then when I found out, I found out there were just so many avenues about the credit industry, it was, cause there's over like 22 million people that do credit repair restoration. But I couldn't find the right one for me.
Speaker 2 00:04:34 And after like a lot of trials, a lot of errors, a lot of mistakes, about five years of studying and researching, I was able to get the credit game. And once I got it down pack, um, I've just been helping people throughout the United States, friends, family, strangers, read multiple books and multiple magazine tv. I mean, I lost the account podcast, but the whole point is I just want to share the message with the people giving free books, free eBooks, free advice, free consultation, anywhere that can make a positive impact I was willing to do. Cuz I know the importance of financial literacy.
Speaker 0 00:05:10 I love that. And then thank you so much for stopping by our podcast to educate our viewers. And, and so my question is, during all of this research, when you were at your financial, your lowest and as you rebuilt and as you've been helping everybody, what, what are the top three mistakes that you see clients make in regards to their credit?
Speaker 2 00:05:29 Well I think the first one is the first acknowledging that you have bad credit. Um, cause you know, most people just figure, if I don't talk about it, if I don't outta sight out of mind that it's just gonna go away. And it doesn't always happen like that. Mm-hmm. <affirmative>. So first you have to admit that, hey look, I need to say things seriously. I'm getting denied credit. I can't get my home. I can't live where I wanna live. I can't eat what I want. I can't drive, so let me fix it. Mm-hmm <affirmative>. And the second thing is to actually pull your credit and look at it. Uh, so a lot of people don't really know exactly where to go. Most people go Credit Karma and Credit Karma is not always accurate. They use third party companies, but um, you know, they don't realize that you could, through the free annual credit report.com, you can actually get a free copy of credit report, all three report once a year. Most people don't know that. So then, you know, then you have to look at it. And the third thing is taking the necessary steps to fix the problem. Um, cause first you have to acknowledge that you have credit issue second to look at it. And the third thing is to realize that you need help with it. And it's like a million different ways that you can actually fix it or get help with it. So those are the top three things.
Speaker 0 00:06:32 Well, that actually goes right into my next question because I think that a lot of people, a lot of pe a lot more people than I think, um, that, that we care to admit, recognize they have problems, but they just don't know how to at all address those issues. And it, and it can become kind of overwhelming if, if, if you know there's an issue. Um, what I, what I I say a lot of times is, you know, I have no problem solving, solving a problem, but I know the answer to. So, you know, if I'm, if, um, you know, I'm, I'm an educator, so if you, if you are going to come to me with a kid who was presenting with a behavioral challenge and you say, Ms person, hey, there's a kid in my class and I can't get them to sit still, I can't, hey, I can't workshop that problem cuz I know, I know what the problem, what the possible solutions are.
Speaker 0 00:07:17 I know what we can try. I have a whole arsenal, uh, in my tube belt that I can try to help you work through that problem. But if the same teacher comes to me and says, Hey person, there's a pipe that busts in my, in my classroom, can you help me? My answer is, no, I cannot help you because I don't know anything about that. I'm going to back away slowly from your classroom and I'm going to avoid your classroom. I'm gonna call my custodian. If my custodian doesn't come up, I'm going to pretend that that's gonna, I'm gonna pretend you didn't tell me that you're pipe burst because I don't know how to handle that situation. And I think a lot of us, we have no problem attacking the problems head on that we understand credit is so mysterious and credit has so many different facets that most of us, many of us do not understand it. Therefore we avoid it. And, and so I am wondering, in all the research that you did, what are some things, maybe three things that you've learned that you can share with us to help those of us who have no idea, um, where to even begin? And you mentioned getting a copy of your credit report that and then taking the steps. But what are the steps, I guess to, to help you start fixing your credit?
Speaker 2 00:08:28 Um, the first step, once you pull your credit to analyze it, look for mistakes, uh, and correct information, uh, derogatory items. But those stuff are like, they're like a weight. They're holding you down. Um, if you have a lot of negative violence on your credit report, there's only so much you can do to build it up if you have all this weight holding you down. So
Speaker 0 00:08:47 Gotta So let me, let me interrupt you for just a second. So just so our, our listeners who aren't familiar, when you get a copy of your credit report, it's going to list all the debt that people have said over the years that you have owed. And the first thing that he's saying that you should do is go through it and make sure you recognize that debt. Because sometimes, and it doesn't happen a lot, but sometimes it does, um, sometimes they debt will be attributed to you that you did not, uh, that you did not create. Case in point, I had a cousin who got, I couldn't understand why her credit was so bad, pulled her credit report her guardian. Um, and where this happens all the time, in, in, in black families, um, her guardian who was with her, used her name to get utilities, um, at a, at a place where she, they once lived then didn't pay the bill, the guardian didn't care, wasn't in her name. But when the, when the young lady went to go get her own credit, she was falsely being accused of having bad credit for a bill that she didn't create. Had she not pulled her credit, she never would've known. So the first thing you're saying is make, after you look at your credit, make sure that all the debt there that they're saying that you owe, it's actually yours. Okay, go ahead Rodney. What else? What else should they be doing?
Speaker 2 00:09:59 And then before we even get to the debt part, you wanna start the very top, your personal information, like you should only have one name, one address, one phone number. Cause if you have multiple name, multiple address, previous address, when the credit bureaus, when they go verify information, they going to compare it to those old addresses. So if you, if you, if you stay proactive, if you delete those old addresses, when it's time for them verified information, it's gonna make it a little harder for them to verified information because those old address not only your, um, not on your credit board. So as you gonna start the top, your personal information and then you go to the collections account, charge off derogatory item and you wanna tackle those items, it depends on the item. If it's medical collection charge, even hard inquiries, there's different ways you can tackle those.
Speaker 2 00:10:47 Um, so you know, it just depends what's on it. Uh, so once you tackle those negative items, now you can add positive credit. Uh, you know, the simplest way of adding positive credit is it's going on as authorized user on somebody else's credit card. So if you have a family member that have great credit with awesome payment history, they put you on as authorized users, they don't have to give you a card, they just put you on and in their positive history, who actually shows up, show up on your credit report. But the thing is, if they do something bad on that report, that's might of a negative impact on you too. That's why you have to get a responsible adult that has your credits. Very important. And then of course, you know, credit repaired, credit restoration, it's not an overnight process. Sometimes it takes time depending on credit situation. Um, it's not C dra if somebody prompts you some a cada, but they doing something illegal. Um, so you just have to, I mean, you know, if you have bad credit for 10, 20, 30, 40 years, um, you can't expect to be fixed, you know, in 3, 4, 5, 6 months. It's gonna take some time. It's a process. Mm-hmm.
Speaker 0 00:11:49 <affirmative>, I I love what you said about the authorized user. That's a, that's one of the cheat codes that I think that a lot of people don't realize that they can use. I know for, you know, I, I had, um, both my grandmother before she passed and my, my mom, um, that had some very, they, they had two cards. My grandmother had, uh, tons, she lived on her credit cards but was very responsible with them. And my mother had some, um, credit cards that, um, that she had that there are, that are seasoned, what they call seasoned meaning she's had them for a long time and they're not major cards, they're store credit cards. Um, but I remember when my mother added me, uh, as an authorized user to her Macy's and then her JC Penneys tho tho being added as a seasoned authorized user on those very well established lines.
Speaker 0 00:12:30 And they are, again, they are not Visa, amex, MasterCard, they're just seasoned store cards. Um, it, it did give my credit a boost. Um, and that was just like, she was just tired of asking me when I would call her and say, mommy, can I have like, and so she would just like, just go buy it yourself. And it was easier, um, for her to just like, have me go to the store and pick out what I wanted. So that's what we actually did not even do it for the, the purposes of being an authorized user and improving my credit. She just got tired of me calling her saying, can I have? And so at the, um, the, the lucky for me, the, the the uh, the extra bump I got on my credit was, was definitely well worth it and well appreciated. So. Thanks mommy.
Speaker 0 00:13:08 Um, so yeah, so authorized users are definitely, um, a great, great well kept secret in the world of, uh, in the world of credit restoration. You spoke a little bit about the time that it takes and the misconception that people think that they can fix their credit, um, overnight. Um, and I liked what you said, like, yo, you have to understand you, you've literally, you've taken 10, 15 years mucking it up. I can't fix it for you overnight. So can you talk a little bit about what should people expect, um, in terms of how long it takes and, and how much they should expect to spend it or should they expect to spend it? Is, is this something that they can do on their own or is this something that um, they should be employing the, the assistance of a credit repair hero like yourself?
Speaker 2 00:13:51 Um, so, so you know, there's a lot of things you can do on your own if you have the knowledge and the tools to do it. Um, so if somebody have the knowledge and the tools to do it, I would encourage 'em to do it. But if you don't, if you don't know the laws, uh, from the fair credit report and act the dues and the don't, cuz most consumers don't, don't know their rights. Um, most people never heard of FFC r a before fair credit report. And so they probably don't know no rules in the laws. And that's how my team we're able to get negative items off your credit report. We do thing called a factual dispute. We look at the negative items on your credit report and we take the law that they'll violate and then we are able to put a letter together for you for the dispute process to get started.
Speaker 2 00:14:33 So, you know, we have, we have a monthly plan available cause some people like the monthly plan and then we also have the, uh, this other package where you pay a, a certain fee upfront and then we pull your credit, we analyze it line by line, and then we put a package tailored just for your need. Uh, and then, so it's kind of like, you know, there is some stuff that you have to do on your end because just attacking just the negative item off your credit report, that's one step. But also, again, updating your personal information, putting a freeze on a secondary credit reporting agency, adding positive credit, you know, it's like four or five pieces that you have to do to make it work. Um, so again, it's, it's not overnight process and it really depends on the credit bureaus too, because they have 30, 45 days to respond when you dispute an item. And sometimes they do it within a couple weeks and sometimes they take the whole 45 days. Um, so again, that can take a little time too.
Speaker 0 00:15:28 So what if you were, if someone was, uh, saying, oh my gosh, my credit score is a, is a, is a 6 25 and, and my realtor told me I need to be at a seven 10, um, in order to be able to, um, to, to get this house, you know, I want, I need to get a loan, um, and I need a seven 10. If someone needed to gain, you know, I don't know, 60, 60, 70 points on their credit score. I know you probably, it's a case by case basis, but ballpark in it. What, what, what, what can people reasonably expect? How much time should they reasonably be expect for it to take to be able to boost your credit score?
Speaker 2 00:16:03 All right, so in a perfect world, um, they could take, you know, 30 to 90 days to see some type of results depending on the credit situation. And then they could be with us like six months to a year. Um, again, depending on the credit situation mm-hmm. <affirmative>, but let's just say somebody coming to me, they don't have no negative items on the credit report. May they got just a few hard inquiries. We could tackle those hard inquiries. They could probably come off within a few days, maybe like a couple weeks. I could, I could send em some trade lines, they can put them trade lines, the authorized user, a situation like that, isolated situation like that, they could probably see the score go up where it needs to be in like 45 days, maybe less. Again, it just depends cause what really matters, like if you have a lot of derogatory items on your credit report, say the, the less negative items you have on your credit, the easiest to build it up.
Speaker 2 00:16:51 Um, because if you have negative volume, the first thing is to get those negative items off. And sometimes that can be a little tedious. Um, sometimes stuff come off the first round, sometimes you have to dispute 'em two times, sometimes three times. It really depends. Again, that's why the factual dispute is so I important because we actually taking laws that's on the books and we tell 'em which law they're violating and then if they don't respond back within 45 days, they would say, Hey look, you gotta remove this negative violence because it didn't, because you did not respond in that amount of time. Then if they refuse, then would go over top of them and you know, uh, you know, after them for the violations. So it just depends. Um, cause there's a couple different avenues. There's a couple different ways it can go depending on the credit situation.
Speaker 0 00:17:35 Mm-hmm. <affirmative>. So I, for, for smaller issues, like, I mean as early as 45 days, if it's a, if some something simple like just removing something as impactful and you know, up to 90 days to, to maybe six months, um, even beyond that, if it's a a, you know, some really hard stuff that you have to get off. Um, so I think that that's a would you say that's fair? Some, you know, a fair
Speaker 2 00:17:55 Yeah, so the 45 days was the scenarios, like if they just had like some hard inquiries mm-hmm. <affirmative>, um, that was like the simplest, you know, like they applied for credit card, they didn't get approved or maybe they went to the dealership, they ran a credit like 20 times. You know, something like that. Cause those hard inquiries, they're not impossible at all, but they, they can come off pretty easily if you know the right method. Mm-hmm. <affirmative> and then adding a positive credit. Cause when you add a trade line sometime it could take 30, 45 days to that trade line to actually start reporting on your credit report. So,
Speaker 0 00:18:27 So what I'm hearing, uh, um, just like me family is um, you need to start looking at your credit probably three to six months before you decide you wanna make a big purchase because it's gonna take you a little bit of time to make sure that everything is in order. So I hope that that's what you guys are reading in between the lines here. Like this is not an overnight process unfortunately. And we have to do that because no one teaches us this stuff in school. So again, we're here on Rew woke, which is rewriting our kids' education because, and the reason I brought you on is because I wanted to talk about, um, good grief, you know, like what what should we be talking to our children about, um, in terms of financial literacy and credit so that when they walk into the dealership and you, you talk about this, um, Ronnie has a book and we're gonna drop some information about, um, one of his ebook.
Speaker 0 00:19:16 And he describes in his ebook, um, you know, walking into the dealership and being excited because he knows what car he wants. He's done the homework, he has picked out the model, he knows how much it costs, he has figured it all out and he walks into the dealership and he can't get the car. Um, and he can't get the car because his credit is messed up. And nobody ever explained to him how much of an impact not having the right kind of credit was gonna have on him being able to get the car that he wanted. Um, and so my question is, how many of our kids are gonna go through that very same exact thing. They know what they want, they've done the research, they, they've made sure they have the money and savings so that they can put a down payment on, they know that they can afford it and they walk into the, the, the, the loan office or you know, the go to the finance people and they're, and and they, and all of a sudden they're like, what's a credit report? What do you mean I can't get it? What do you mean my interest rate is not the advertised 0.5% and it's like 12.9. What do you mean that I need a co-signer? Like, like what do we do? How do we begin teaching our children? How early should we be talking to 'em and what should we be talking to them about?
Speaker 2 00:20:20 Um, so when my son, when he, cause I got two amazing kids. Um, my princess, he's 16, the young prince, he's 12. So I started talking, talking about credit at very young age when my son, when he was nine years old, we used to go to Neighborhood Apartment Complex, of course it was pre Covid of course we would talk to people about credit knock on the doors, give Fly. So he was already engaged at a very young age. And then when I wrote my first book Break, the Second Un Deliver bad credit, you know, he read a couple couple chapters in it. He thought it made sense at that time. My daughter, I think she was 15 at that time, she actually read it and she actually wrote me essay cause I was like, Hey I need you to read this book. I need you to write me essay on the book.
Speaker 2 00:20:58 Cause I wanted make sure it was simple enough that she could understand it. And then I had some friends that, you know, like in the thirties, forties where one friend, she actually read the book within six months of just reading a book, she was able to, you know, position herself get a house. So on my honest opinion, it is really depending on the kid, but I would say probably like 11 years old cause that was around the time that my son, you know, started reading my book. Um, and another thing that's important, um, sometimes as parents, you know, we'll tell our kids to do something but we won't explain to him why. Uh, say me for example, like I was younger, I give credit to my older brother. He used to always say like, you have to pay your bills on time. You have to pay your bills on time.
Speaker 2 00:21:35 But he never said, Hey look, paying your bills on time is 35% of your credit score. Maybe he didn't tell me that cuz he didn't know. But if he had a broke down to me like that, I'm like, oh, 35%, that's a nice big chunk. Now I know why I have to pay my bills on time. So if we explain to 'em why they should do it and the benefit of it, it'll make it a little easier for them to understand. Cause um, with kids, you know, they might not always do what you say, but they're always watching what you do. And some em, if you just hate the time just to break it down to 'em, that'll make it really, really simple. And of course credit something that's boring, it's not fun. Nobody likes to talk about it. But you have to. I mean, you know, as parents we have a gift that we understand our kids so we know how to deliver information to 'em in a way they understand it.
Speaker 2 00:22:16 So just make it part of the daily conversation. You know, just going to the park, going to the library, you know, just ask 'em, you know, count stuff, you know, give it to 'em in their allowance. But you have to make it part of the daily conversation. And I think that's the thing a lot of parents not doing. They will talk about it every now and then, but it's not like a regular thing at the dinner table or namely thing. So you have to, if you make it part of a daily conversation, I mean it'll stick with 'em a little bit longer versus just mentioning like every, you know, five or six years or whenever the bills due, when we get the credit card, they'll just make it for a daily conversation. They probably not gonna retain everything, but they'll remember them meeting potatoes when it comes to making those decisions as they get older.
Speaker 0 00:22:57 I love what you said, like starting young. I love it cuz I, I think a lot of people, um, don't give 11, 12 year olds credit. You know what I mean? But when, when you, that's like, that's middle school and, and middle school is, is when you are beginning to understand the world and your place in the world and you're beginning to think critically. Um, and so I think that 11, 12, 13 years old is a perfect time to start explaining, uh, to a child how the world works. And the other thing that I love that you said is, and and take the time to explain the why. Um, my mother, similar to your brother, um, would always make sure she was really big on, you know, I always pay I the pay my bills on time. 100% came from her watching her make sure that she would pay her bills on time and you know, she would freak out if she thought that she couldn't.
Speaker 0 00:23:43 Like it was a big deal, but I never understood why. Um, and, and, and no, and, and maybe and like you said, maybe your brother didn't exactly, couldn't exactly articulate that it was because if you don't, it will affect your ability to get credit in the future and by 30 it'll adjust, uh, um, affect your credit score by 35% guarantee she didn't know that she, I mean she might not know that right now. I'm gonna have to call her after I get done recording this. Um, but like I think that those are the types of explaining the why, um, and also talking to them young. I think both of those are very, very, um, important things that we can do to help, um, begin the, these very important conversations. Do you have any other, um, uh, resources or, um, classes or uh, books that you recommend that parents use to, to talk to their children about credit and, um, the importance of financial literacy?
Speaker 2 00:24:30 Um, I would recommend they can always get one of my books. I said the first one, um, cause it's called Break the Cycle. You don't have to live with bad credit because I felt like when it got to me, it was my turn to break the cycle. It was my turn to break that generational curse. So hit that book. It's about, um, 90 pages made by like 30, 35 pages or like just meat and potato about credit. And then they can break it down to the kids. They can tell 'em the five components that make up your credit score. They can tell 'em, you know, 30% is your crazy licensees. They can tell 'em like little, little micro little mini bites as they get older, they can retain those information. And also my second book, the 10 Credit Commandment, which my two kids are contributing author in that book. Uh, both of those books are very, very informational. Again, you know, some parents have kids, they're like little baby geniuses, you know, they might have a four year old. They can comprehend a book like that. I mean, I don't know, you know, kids getting smart and smartest self, it just depends on the parents. But I would definitely say get those books and you know, just break it down to 'em at their level of their understanding. And as they get older, um, you know, they'll understand the book even better.
Speaker 0 00:25:37 Where, uh, where can they find those books?
Speaker 2 00:25:40 Oh, both of my books. Both of my books on Amazon. Um, you know, and then also their ebook is also available too. So what I would do for you, for one of your guests, you know, whoever you select, I would actually have my assistance send them a free autograph copy of any one of the books that they choose.
Speaker 0 00:25:57 Okay. Uh, give us the two financial names of the two financial books again. So they can, um, speak in Link 'em in the, and the and the, the show notes
Speaker 2 00:26:05 Break the cycle. You don't have to live with bad credit. And then the second book's called The 10 Credit Commandments. And then, you know, they can, they can look at all my books about my name Ronnie Franco.
Speaker 0 00:26:15 Okay.
Speaker 2 00:26:15 That's very, very important.
Speaker 0 00:26:16 Awesome. Thank you Ronnie. I wanna thank you so much today for coming by and talking to us and, and giving us this information about the importance of credit and starting talking to our kids when they're young. Um, I, I know I got a lot out of it and I hope that our listeners did too. Thank you so much for coming today.
Speaker 2 00:26:33 Oh, thank you. I definitely appreciate the opportunity.
Speaker 0 00:26:36 Get a copy of your credit score, check it for errors, start talking to your kids young 11, 12, 13. Explain how credit works and how they can make sure theirs is strong. When the time comes together. We can make sure that our kids are better prepared financially than we were and that they have all the tools at their disposal to build a better tomorrow. Thank you again to our guest, Ronnie Francois. And thank you for listening. Show notes and resources and the things we discussed are available on our website at www, just like me presents.com. Share this podcast with other parents and educators in your circle and make sure you subscribe so you never miss an episode. If you like what you heard, leave us a review, reviews, help others discover our show and begin their woke journey. Have a great week. And remember, if our children can see it, they can achieve it.
