The Candy Valentino Show: Navigating Economic Shifts: Tariffs, Economy, and Your Credit Score

Release Date: February 20, 2025

Introduction

In this episode of The Candy Valentino Show, host Candy Valentino delves into two primary topics that resonate deeply with entrepreneurs, investors, and individuals striving for financial freedom: improving your credit score and navigating the current economic shifts influenced by tariffs. Drawing from her extensive 25 years of experience, Candy provides actionable insights and strategic advice to empower listeners in managing their finances and understanding broader economic policies.

Wealth Habits Segment: Improving Your Credit Score

Responding to audience feedback, Candy introduces the Wealth Habits segment, inspired by her bestselling book Wealth Habits. This new weekly segment aims to equip listeners with personal finance strategies to enhance their financial well-being.

The Four A's to Better Credit

1. Always Check Your Credit Report

   • Importance of Regular Checks: Candy emphasizes the necessity of reviewing your credit report at least annually, preferably biannually, to ensure accuracy and detect any unauthorized activities.
   • Protection Against Identity Theft: Regular monitoring helps identify any fraudulent activities that could harm your credit score.
   • How to Access:
     • Many credit card companies, like Citibank, offer free credit report access through their online platforms.
     • Alternatively, listeners can obtain a free report from Experian.

   “Always check your credit report annually, or even twice a year, to ensure its accuracy and protect yourself against identity theft.”
   [02:45]

2. Always Pay Your Bills on Time

   • Significance of Payment History: Payment timeliness accounts for 35% of your overall credit score.
   • Strategies for On-Time Payments:
     • Set up automatic payments for at least the minimum amount due.
     • Use phone reminders to pay additional amounts, reducing principal balances on debts.

   “Your payment history makes up to over a third of your total Overall credit score, 35% to be exact.”
   [05:10]

3. Always Pay Down Bad Debt

   • Defining Bad Debt: Debts associated with depreciating assets such as cars, boats, and credit cards.
   • Prioritizing Debt Reduction: It's crucial to eliminate bad debt before investing, as high-interest debts like credit cards can negate investment gains.

   “You can't out invest bad debt. You can't put money in the market and get 10% on a return if you're paying 24% on a credit card interest rate.”
   [07:30]

4. Always Avoid Opening Too Many New Accounts

   • Impact on Credit Score: Opening multiple new credit accounts in a short period can negatively affect your credit score.
   • Best Practices: Limit the number of new credit applications and maintain existing accounts responsibly.

   “Opening up too many brand new accounts too often can actually hurt your credit score.”
   [09:15]

Additional Financial Strategies

• State of the Union Meetings for Personal Finances:

  • Purpose: Regularly assess personal income and expenditures to identify areas for saving and opportunities to increase earnings.
  • Implementation: Allocate one to two hours monthly to review financial statements, eliminate unnecessary subscriptions, and explore additional income streams.

  “Creating the habit that at least once a month you're going to spend an hour or two on your finances is one of the most important things you can focus on.”
  [10:50]

• Balanced Approach to Credit Management:

  • Maintaining a Healthy Credit Score: While some advocate for eliminating all debt, Candy suggests maintaining a credit score for emergencies, ensuring financial safety without over-reliance on credit.

  “Having a credit score that you can always fall back on because life is long and messy and things happen is a really great thing to have.”
  [11:35]

Economic Shifts Segment: Tariffs, Economy, and Your Credit Score

In a subsequent segment, Candy addresses the prevalent discussions surrounding tariffs and their implications on the economy and individual finances. Drawing from her appearances on Newsmax and Fox, she provides a nuanced analysis of President Trump's tariff policies and their potential impact.

Understanding Tariffs and Economic Strategy

• Reciprocal Tariffs with India:

  • Objective: Establish fair bilateral trade agreements to reduce the trade deficit and stimulate economic growth.
  • Current Scenario: India imposes tariffs ranging from 10-17% on U.S. goods, whereas the U.S. benefits from lower tariffs of 0-3% on Indian products.

  “President Trump is really saying, how can we bring some of these tariffs back now... to make sure that the American people are taken care of.”
  [13:20]

• Tariffs as a Revenue Source:

  • Historical Context: Prior to 1913, tariffs were a primary source of government revenue before the establishment of the income tax.
  • Modern Implications: Increasing tariffs can generate external revenue, potentially allowing for reduced domestic taxes.

  “Tariff is just a tax from other countries and bringing that revenue in is the way that our country operated prior to 1913.”
  [14:10]

Impact on Consumers and the Economy

• Short-Term vs. Long-Term Effects:

  • Inflation Concerns: While tariffs can lead to higher prices for imported goods, Candy argues that they are part of a broader strategy to create sustainable economic growth.
  • Egg Prices Exception: The recent surge in egg prices is attributed to a virus affecting chicken populations, unrelated to tariffs or inflation.

  “The eggs are going to come down too and we're going to get through this together.”
  [20:45]

• Broader Economic Benefits:

  • Supporting American Industries: By imposing fair tariffs, American businesses and workers are better positioned to compete, potentially lowering production costs and consumer prices in the long run.
  • Reduction in Government Spending: Increasing tariff revenue can help reduce government deficits, leading to lower inflation and interest rates.

  “When we stop printing money, when we stop overspending... that less spending, reducing the deficit, reducing spending is also going to drive down inflation.”
  [18:30]

Future Outlook

• Economic Growth Potential:

  • Optimistic Projections: With effective tariff policies and reduced government spending, Candy envisions a robust economic boom reminiscent of the 1990s.
  • Advice for Entrepreneurs: Utilizing financial tools like zero-based budgeting can help businesses navigate uncertain economic times by optimizing expenses and increasing revenue.

  “If you just use common sense approach, common sense economics... you can pretty clearly see... that all of this together... is obviously going to have a positive effect on every single hardworking American in our country.”
  [19:50]

Conclusion

Candy Valentino wraps up the episode by reinforcing the importance of proactive financial management and staying informed about economic policies. She encourages listeners to engage with her content across various platforms, including her latest book The 9% Edge, which offers further strategies for creating revenue and achieving financial freedom.

“Take out your phone, block two hours... invest two hours in your financial future, which is one of the most important things that you can focus on.”
[10:25]

Listeners are invited to share their takeaways, follow Candy on social media, and explore additional resources to continue their journey toward financial empowerment.

Stay Connected:

• Follow Candy Valentino: @candyvalentino on all social media platforms.
• Subscribe: YouTube channel for episode watchings.
• Website: candyvalentinoshow.com
• Book: The 9% Edge available on Amazon, Barnes & Noble, and local bookstores.

This episode provides a comprehensive guide to enhancing personal credit scores and understanding the intricate dynamics of current economic policies, equipping listeners with the knowledge to make informed financial decisions.