The High Cost of Crappy Credit (Bestie Ep) #1083

Jan 2, 2026

Discover why bad credit can be like a power outage, causing far-reaching consequences. The hosts share personal anecdotes on the hidden costs of poor credit and how it impacts loans, insurance, and even job prospects. Learn the importance of healthy credit, why perfection isn't necessary, and practical steps to improve your score. They also discuss the generational differences in credit scores and provide tips on how to check your credit and repair it effectively. Tune in to avoid costly financial mistakes!

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INSIGHT

Bad Credit Causes Wide Downstream Damage

Bad credit isn't just a nuisance; it creates wide downstream costs across your finances.
Joel compares a poor score to an extended power outage that disrupts many systems.

ADVICE

Shop Rates — Small Percentages Add Up

Shop multiple mortgage quotes because even small rate differences cost tens of thousands over time.
Treat monthly savings from a lower rate as investment money that compounds toward long-term net worth.

INSIGHT

740 Is The Practical Credit Threshold

Scores above ~740 place you in top tiers and reduce costs significantly.
Staying in the 760+ range isn't necessary to benefit materially, but below ~680 becomes costly.

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Think back to the last time you lost power at your place. I’m sure it was an inconvenience- it was likely annoying to find yourself walking into a room and reflexively reaching for the light switch, even though the power was out. But the real problem with an outage are the downstream effects it has: food in the fridge spoils, traffic is a nightmare if the stoplights are out, folks even die due to extreme heat or cold. We’re less worried about a power outage and more worried about the mayhem that ensues. And in a similar way we’re less worried about silly credit scores and more worried about the negative impact that a crappy score can have on much of your personal finances. Listen as we discuss our stance on taking out loans, the high cost of neglecting your credit, and steps that you can immediately take in order to mitigate the knock-on effects of crappy credit.

Want more How To Money in your life? Here are some additional ways to get ahead with your personal finances:

Credit card perks: Check out our favorite credit cards that we use to maximize rewards and optimize our spending.
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Money Gears: knowing what to do with your money is crucial to your personal finance journey.
MG7: and maybe you’re well on your way to financial independence but you’re looking for some financial reassurance, that’s when heading over to HowToMoney.com/Advisor and getting matched with a highly vetted financial advisor makes sense.

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