In this episode of Pink Money Podcast, Jerry Williams welcomes back financial advisor Grace McLen to tackle one of the most important (and sometimes intimidating) money topics—credit. Together, they break down how credit scores are calculated, why checking your report regularly matters, and what to do if you’re facing collections or identity theft. From rebuilding with secured cards to negotiating with lenders, Jerry and Grace share practical, real-world strategies to help you protect, repair, and strengthen your credit.

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Season 1 Money Basics & Mindset Debt & Credit

Jerry and returning guest Grace McLen break down how credit really works—what builds your score, what tanks it, and how to bounce back. They cover payment history vs. utilization, disputes, collections, medical bills, secured cards/loans, becoming an authorized user, and why proactively calling lenders beats hiding from the mail—plus LGBTQ-specific notes on identity-theft risks and victim-compensation resources.

Key takeaways

  • Your FICO score recipe (typical weights): Payment history 35%, utilization 30%, length of credit 15%, new credit/inquiries 10%, credit mix 10%.

  • Never miss minimums. One 30-day late can sting for years; autopay the minimum, then pay extra.

  • Keep utilization low. Aim under 30% per card (under 10% is gold).

  • Don’t rush to close old cards. Age matters.

  • Dispute errors fast. Pull all three bureaus and fix mistakes within 30 days.

  • If you can’t pay, call first. Hardship plans, forbearance, or income-based options beat a late mark.

  • Rebuild strategy: secured card or secured loan + small monthly charges (gas/groceries) + pay in full.

  • Collections 101: Negotiate in writing; try for “pay-for-delete” and keep proof.

  • Medical bills: Talk to hospital billing; ask about financial-assistance/charity care or victim-comp funds.

  • Protect yourself: Freeze credit at all 3 bureaus; unfreeze when you need to apply.

Chapter markers (approx.)

  • 00:39 — Why credit matters (rates, jobs, deposits)

  • 07:05 — What’s in a score (and what isn’t)

  • 08:16 — Utilization explained

  • 10:08 — Reports vs. scores (and where to get each)

  • 12:23 — Freezes, fraud, and checking accuracy

  • 13:34 — Bad/No credit: where to start

  • 15:56 — Call the lender before you miss a payment

  • 18:20 — How credit impacts jobs, insurance, deposits

  • 19:00 — Medical bills & assistance programs

  • 22:42 — Dealing with collectors (and your rights)

  • 31:25 — Going from low-600s upward: a one-year playbook

  • 36:01 — Snowball/avalanche teaser & wrap

Action steps (listeners can do this week)

  1. Pull all 3 reports at AnnualCreditReport.com and scan for errors.

  2. Set autopay for at least the minimum on every account.

  3. Calculate utilization per card; plan payments to get each under 30%.

  4. Rebuild kit: open one secured card (or small secured loan), charge a tiny recurring bill, pay in full monthly.

  5. If struggling: call lenders; ask for hardship/forbearance or income-based plans.

  6. Freeze your credit (free) at Equifax, Experian, TransUnion.