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BE CAREFUL USING CREDIT KARMA - WHAT YOU SHOULD KNOW - YouTube
Channel: Bob Sharpe
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Credit Karma. It offers you a free
ability to look at your
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credit score to see if you're doing well
with your credit or not so well
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but is it legit the title of this video
is
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be careful and i'm going to share with
you today in this video
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what you need to know about credit karma
how it pulls your data
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how it reports your data and i'm going
to share with you my own
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credit score and my own review with
credit karma
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coming up next stay tuned well hey if
this is the first time you and i have
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met
my name is bob and i help people crush
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debt build wealth and live
their ultimate sweet life so if you're
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into personal finance and learning how
you can build wealth and get
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weekly tips and strategies for your
personal wealth subscribe today to
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become a sweet lifer
right now so let me get started credit
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karma i was looking around for the
reviews just like you and i want to
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start at the beginning of this video and
let you know
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that i am not getting paid by anybody to
do this review
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that's not the point of sweet life money
in this channel i'm not here to be a
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sellout i'm here to give you
my own personal reviews on things based
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on what i find
and i've been hearing a lot of things
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about credit karma so i figured
okay first let me see what kind of
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reviews are out there so i
looked around and there's a lot of hate
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about credit karma
so i said you know what heck with it
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it's free
i'm just gonna go to creditkarma.com and
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sign up so i did
and uh you know i i'm gonna give you my
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review in just a moment i'll be honest
with you you know you've been following
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my channel
you know and if you haven't i'm a big
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follower of dave ramsey
and you know papa dave will not be happy
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right now that i'm talking about
credit scores because credit scores to
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him is an i love debt score
well but to be honest this is the one
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place where i kind of stray away from
that piece because
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nowadays credit scores are kind of
important i mean for your mortgage and
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for loans and things like that if you
need them
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and honestly sometimes even jobs now
look at your credit score
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so i think it's important to if you're
smartly managing
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how you handle your money your credit
score
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will come along as a positive benefit
and not a negative benefit
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now credit karma what they use is a
calculation called
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vantage score three vantage score
is a just basically a way of taking the
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information from the credit reporting
agencies such as transunion
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equifax and experian and reporting out
what that score is based on your credit
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history there's also other things like
fico you might have heard about the fico
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score right
they have uh fico one two three right
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now fico eight is kind of the main way
that a lot of lenders
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pull your credit score so fico 8 is
definitely something to look at
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and coming up soon is fico 10. so really
quick
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don't want to bore you i'll put another
video on this a little bit later but
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fico 10 what they're going to do with
that
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is actually do some trend data so in the
last 24 months
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did you carry a balance on your credit
cards and things like that
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month over month over month did you
consolidate loans
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in any period of time so fico 10 is
going to give lenders
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an even more deeper look into how you
handle your debt and how you handle your
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money
so credit karma uses vantage 3.0 and i
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think right there is why a lot of people
get upset
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and there's a lot of reviews out there
saying that credit karma
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is not correct well that's why i say be
careful
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because you could go into one of those
review and just say oh wow looks like
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there's a lot of hate toward credit
karma
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but if you got the hacks if you've got
the tips right here from the suite life
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money channel
you'll know how you can handle this a
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little bit better so with the vantage
score it's just a different way of
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reporting
vantage what they do is they basically
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take a combined set
of credit reports and that's how they
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basically assume your calculation on how
well your credit is
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whereas fico they look at millions of
credit reports from millions of
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different people
and based on your performance with the
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top
five ways that they look at your credit
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that's how they assign you a particular
score
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so that's the first thing to be careful
of is the reviews that say credit karma
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is
is completely off i i don't think it's
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really
necessarily that i think it's a
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difference between the calculations now
i want to give you my personal credit
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karma review so the first thing i did
credit karma.com as i mentioned earlier
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i plugged in my email and signed up
i will tell you first of all it was very
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quick and very easy
that was kind of crazy how fast this
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worked literally it was within minutes
and all of a sudden i had my
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my credit scores i had a little bit of
my credit reporting
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and it was very clean looking and to the
point so a lot of times i use
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annualcreditreport.com in fact i'll link
that video above if you want to check it
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out
on how i pull my annual credit report
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from the three major
reporting agencies but with credit card
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i was like wow this was quick
another thing i was a little worried
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about though is because i signed up with
my main primary email
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i was like crap why did i do that
because now what's going to happen is
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credit karma
is going to send me an email every week
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every day
every hour trying to get me to buy
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something so they can make some money
but i will say now after a month i have
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not received any emails from them
except for the very first verify your
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email
that pretty much anybody sends when you
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sign up for something so
that actually surprised me now you might
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wonder well how does credit come and
make money i'm getting all this stuff
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for free and you can check it anytime
you want for free how do they make money
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well here's where the catch is here's
another thing to be careful of
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credit karma makes money based on what
you do on their website with
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getting a loan or getting a credit card
so what they're going to do is they're
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going to say here's your credit score
here's a little bit of your credit
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report and here's the credit cards we
recommend based
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on your current state so that's where
you need to say stop
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hold on i don't need any more credit
cards i just need to understand what my
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credit score is and my credit report
the moment that you apply for a credit
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card or a loan that's how credit carmen
makes their money now of course if you
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want to support them by all means do it
but i do warn you don't just get a
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credit card to have a credit card you
got to be smart
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with how you manage your credit and your
money so
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i have over an 800 credit score and i
have had an 800 plus credit score which
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is excellent
for a very long four years okay uh if
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you're not aware the
highest credit score you can have in the
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850. so uh
if you want to know how you can get an
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800 credit score based on what i've
learned
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what i want you to do is comment below
and say show me that 800.
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put that in the comments below show me
that 800 and i will make a video on
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the exact steps that i used to turn my
credit score around and keep
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it up in the 800s for years and you can
do this as
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quick as 30 days so comment below but
let me let me kind of go over some
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things first of all
creditkarma.com you can get that vantage
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score if you want to get a fico 8
of course you can go to myfico.com but
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that costs money so how might you be
able to do this for free
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well there are certain credit cards that
part of your membership of owning that
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credit card
they'll actually provide your fico score
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for free using
fico eight okay so if you want a
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difference between
the vantage thing that i talked about
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earlier and the fico eight
that's a great way to do it i have two
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credit cards that do that for me
my city card and my amex card so citi
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card what they use is
equifax that's how they get their
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information using fico 8
and then amex what they use is experian
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again fico 8 so that gives me a chance
to
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look at that from that perspective and
then look over at credit karma which
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uses
both transunion and equifax and i can
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get a whole well-rounded number
so i'll link the credit cards i use
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below if you want to check those out if
you want to get one of those
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so let me share the difference okay so
with citi
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fico eight typically when a lender pulls
your credit report
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fico is where they're going to go so
that's going to be your most accurate
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way of knowing it
but i will tell you between equifax of
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my city card
and credit karma credit karma was
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actually reporting
lower by almost 30
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points so right around 809 on credit
karma and 833 on city
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that's a big difference so a lot of
people think that credit card gives you
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higher and sometimes it can give you a
higher score but in my case they're
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actually giving me a lower score
based on the vantage 3.0 calculation
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method now
between amex fico 8 experian and credit
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karma's vantage 3.0 under transunion
there was only a difference of one point
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so again both above 800 but
regardless of that you know it was a
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fairly good accurate
representation now one thing i'll say
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that i really like about credit karma is
on their website
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they give you tips and tricks on how to
improve your credit so even if you have
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a credit score of 600 or 700
regardless of the bloody calculation
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this is a great way to learn more about
how you can improve your credit score by
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simply going to their website and
checking out the information that they
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provide you
absolutely free so they'll give you tips
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and tricks
again don't fall for getting more credit
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cards what you need to do is focus on
the information provided there my credit
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karma review is i'm going to give them
a thumbs up on this only because if you
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go
into this free website with the mindset
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of knowing the calculation method that i
shared with you in this video
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you can then be careful about how you
understand the process
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and then if you do want to get a loan or
you do want to get a credit card
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take advantage of understanding your
well-rounded picture
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get a credit card or get something that
may give you a free
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provided fico 8 or fico 10 score
look at credit card to get the vantage
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score as well
and then you can kind of average that
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out and say okay i bet my credit score
when my lender
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pulls it will be right around this and
that is
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how you can have a hack to take full
advantage of credit karma
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i hope this video was helpful give me a
like if it was comment below if i missed
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anything or if you have any questions
about what i
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ask about i'm very active on this
channel and will reply to you as soon as
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i can
but most importantly subscribe to get
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more great videos just like this coming
to you weekly
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uh and by the way continue to live your
sweet life
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have an awesome day and we'll see you
next time
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