6 Credit Card MISTAKES To Avoid As A Beginner
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- Опубліковано 31 січ 2022
- In this video, we go over 6 credit card mistakes to avoid for beginners that are just getting started. These credit card mistakes are easy to prevent, but if you are only starting to learn about credit cards for beginners then you might not know what to look for. Hopefully, these credit card tips will be useful!
I know that there is a lot to learn about how to use credit cards the right way, so explain some of that in this video. Maybe you are trying to increase your credit score or maybe you want to learn how to stay out of credit card debt. Either way, these credit card beginner mistakes to know and avoid will help you to get and stay on the right track!
Make sure that you avoid common credit card mistakes such as applying for too many credit cards, maxing out credit cards, 0% APR credit cards, and more! I’ll explain all of these and others and why you should avoid these beginner mistakes in this video.
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0:53 - mistake #1: applying for too many credit cards at once
3:42 - mistake #2: getting the wrong cards, especially early on in your credit card journey
7:06 - mistake #3: maxing out your credit card, mistake #4: not treating your credit card as cash
10:20 - mistake #5: 0% APR offers
12:30 - mistake #6: closing a no-annual fee credit card
Bro thankyou
I got a capital one card but they closed the account but I chat with 1 of the credit bureau's and they said it was ok and I told them I might reopen up the account down the road I rather keep the 200 credit limit
ty bro this dude talks quite a bit
Thank you
I feel like schools should teach about this stuff. So many people aren't educated enough with finance and it ends up screwing them. I've always been the same as you where I basically use my credit card as a debit card. I'll only ever spend money if I have it. Valuable information as always Daniel!
100% and I don't know why schools can't at least teach some of it! But yeah that's the exact way to do it by treating credit cards like debit cards. Thanks as always for watching Tyler!
I don’t think it’s in their best interests,especially with credit cards.
My high school economics class taught us a lot about it so I’m surprised a lot of others don’t. I feel like it should be required to learn before you graduate
@@ashtynbullert9887 Oh wow, that's really awesome to hear that some schools are teaching it!
I took marketing and economics in high school and the curriculum included balancing check book, writing checks, credit scores/cards, loans, investing in stocks etc... that was in the early 90s and it was in the state of IA where the education system is good. I also took business keyboarding (typing), home ec ( cooking/food safety & sewing) & auto mechanics (basics of car maintenance. I don't have kids but I hear a lot of that stuff isn't an option now which is sad & scary !
Glad my Mom made me get my first credit card at 18! I’m 21 now and have 3 credit cards now with a monthly limit of 13K between all 3! Has definitely helped my score out a ton.
*⬆️🆙My man got my bank account and credit cards funded...Lamo081...he’s the besttt*
That first sentence really could have meant you have a bad story to tell or a good one
Im in the same boat however i opened my first at 19. I am 20 now and have 3 cards with a total of $11k in credit. Wish i did at 18 though. A year may not sound like much but i feel like i could’ve utilized even better with a year headstart.
Be very grateful for your mom for that. A lot of us were raised "never" to get a card cuz you'll just end up in debt. 34yo never had a card and looking up how to.. its sad
i wish my parents taught me about this and i regret not taking more business classes in school. im 22 and just now teaching myself how to build credit + how to be financially responsible in general
I recommend opening a separate checking account and transferring (at most) 30% of your credit limit into that account every month. Use that account to pay your credit card bills. That way, your credit is essentially backed up in cash, and you won't have to worry about overspending on your primary checking because the money has already been assigned.
Great tip
Oooo need to try that. Thanks for idea!!
that's actually a pretty cool idea/ strategy. I definitely like to keep my utilization at 10% or less recently it's gone up as I now funnel a lot of business expenses through it each month (though i pay off balance each month)
Can you elaborate this one? I am very new at this. Thanks!
@@Cheapshot7 the idea is if you keep your spending on your card at no more than 30% if you take out 30% of your earnings and put it in an account that’s designated for paying off credit card you won’t put yourself in a position where you can’t pay your card because you’ll have reserve funds
I'm 28 and just applied for my first ever credit cards. UA-cam has been my best friend over the last half hour.
I myself was guilty of a few of these when I first started out. My biggest mistake was carrying high balances before I understood about Credit Utilization. I luckily didn't ruin my credit and I'm now in a great place as far as my credit and the cards I have. I hope someone starting out sees this and finds the value in it. This is so great Daniel 🤙🏽
Thanks so much Mike! Yeah I was like you and higher credit utilization was probably the one that I was most guilty of early on, especially with lower credit limits on less cards compared to what I have today. But good that we both learned about what to do now! Appreciate the support as always here on the channel 👍
The good thing about credit utilization is that if you pay off your balances, you will see it immediately reflected in your credit score. That is unlike missing payments, closing old accounts, too many hard inquiries or an account going to collections, that will negatively impact your credit score for years (hard inquiries will drop off in a year or two depending on credit score model). Some credit utilization is actually a good thing, no credit utilization can reduce your credit score. I normally pay off all credit card balances at least weekly and always pay the statement balance every period to avoid interest charges, but I will let a balance carry over a statement period if I know that I'm about to apply for a loan (car loan, student loan, etc.) because that will temporarily increase my credit score.
@@johnmininger7472 Exactly! I didn't realize that at the time. My score just kept going up every bill I paid off. It was great 👍
@@johnmininger7472 cell phones would messed up your credit too & cable companies
Same thing happened to me and I was lucky enough to not destroy my credit without really understanding credit cards
My dad put me on his credit card when I was 16 and got a summer job. Super grateful.
One thing you forgot to mention with the first issue…average age of credit is part of your score. If you’re young and want good credit, you should try to get a card every 4-6 months. That way you can get a lot of cards early and it won’t affect your credit score as much as if you waited longer. If you have one credit card for 5 years, then get a new card, your average credit age is only 2.5 years. Whereas if you get a credit card and get another one within six months, if you keep your first one for 5 years and have had the other card for 4.5 years, the average credit age is 4.75 years. Much better in the long term to apply
Do i get a different credit card from the same bank or somewhere else from the original credit card? What do you think about store credit cards?
@@mas2108 I would generally stay away from store credit cards. They don’t have a lot of benefits and they’re hard to use outside of their store. I use bank credit cards. You can get multiple credit cards from one bank if you wish, I just try to have cards with 0 annual fee.
@@mas2108 also remember to only apply for a new credit card every 6 months. Any sooner and your credit score will feel it
@@trexasaurus5322 thanks
@@trexasaurus5322 will that ever put hard inquiries on your credit??
This is amazing advice everyone needs to listen to! Literally just by following your tips and tricks, people can easily avoid these mistakes which could be costly for their credit score! Great work Daniel!
Exactly the plan I’m following. Have had my Discovery it card for almost a year now and just applied for the chase freedom flex card and got approved. I’m excited.
I myself was a beginner about two years ago. And now watching this video makes me proud that at least I didn't make many mistakes back then 🙂. Very useful content Daniel! 👍 Keep up the good work !
Thanks so much for that, I appreciate it! Yeah its always good to be able to look back and see that you avoided certain mistakes. And now I'm sure you're even more aware of these mistakes after 2 years 👍
that's incredible! definitely some great points made. Keep crushing it
Thank you so much Danny! I came here for knowledge and you provided! I've been procrastinating credit cards for a while now & this video was broken down to the bone. You really gave all of the information I needed, so thank you once again for your hard work! Cheers.
These are great tips, especially the one about treating your credit card like cash! That is the most important one IMO since it puts you in the right mindset to use credit cards responsibly.
Thanks for saying that! Yeah I completely agree, that's the most important one because without it, you could easily overspend and possibly get into credit card debt
that's always been my strategy... i only use my card for things i'd pay cash for.. the card just give some added bonus points when you pay it off right away.
Fantastic video! Great graphics and examples. Easy to understand and good flow. Thanks! I currently do all these things but had watched many videos and podcasts to get to this general understanding. This video sums it all up nicely
Love seeing the growth in both video quality and subscribers from you. Great video!
Great video, Daniel.
Early on, I wasn’t tough enough on myself with not using credit space when I didn’t haven’t cash on hand, and I had to pay the consequences for a while.
Thanks Adam! Yeah that's a tough thing to overcome but now that you're looking back on it you've learned! Appreciate the comment man!
The whole system is a scam...I just had mine dropped for those same reasons and 50 points just for paying off my car...took me a year to get it to 700 and it dropped in a week smh ...something has to change
These are great tips, Daniel.
Great and informative video. Thanks Daniel!
hey thanks for making these videos, they're really helpful!
Thanks so much for saying that! I'm really glad to hear that they are helpful! I'm happy to make them because I love talking about this stuff 👍
Very informative, straight to the point, subscribed 🙏🔥
THANJS SO MUCH MAN GREAT VID! Good vibes
pretty solid advice that i wish i knew before going into credit cards. 9/10
You have the best platform for teaching about credit cards. Everyone else had me confused. Thank you and great job!
Thanks for the advice, I just got my discover credit card and I’ll keep information in my head
Wow! Thanks for this video.
Super clear and concise video. Love it!
Thanks so much for watching, glad you liked it!
Hey! I’m new to the channel. Found you in the suggestions. I’m like 10 videos in. Your content is awesome! I also love how you almost double your subscribers since December. You content shows for it. I myself am big into personal finance and credit cards. I would be interested in seeing some videos about how you budget around so many different cards. Also seeing how to best decide on which card to use when it comes cards with benefits versus getting those points. I personally have 5 cards which are some of the cards you got and I am due for another one but I am getting a little overwhelmed. I would love to what you think one should do how organizing and rotating cards and then building a budget around those. Again your content is awesome and glad I was able to to subscribe!
That's awesome to hear Cameron, so glad that you were able to find my channel in the suggestions! Love to hear the positive feedback from you!
Yeah I'd really like to make some videos like that! I'm going to be making a video on how I budget very soon actually, I think that is one that I'll be filming next week so I'll share the Google Sheet template that I made for that.
I really just sort of get an understanding of my cards over time because I've learned to take it slow with getting new ones and stuff like that. I have 9 at the moment and it can get a little tricky to remember everything but I always have a strategy in place that I change every few months or so too. I'll definitely be making more videos on how I manage my cards and my other financial information too
Terrific. Another tip for youngens - make sure you use the credit card a bit per month and pay it off in full, even $20. Not using it provides no credit history, which is bad too. Finding that first credit card can be overwhelming. Those Chase Freedom Cards are terrific first cards if a beginning can get in on them given the opening bonus, the low threshold of spend to earn it, and the width breadth of rewards.
As usual, super job Sir!
Thanks Scott! Yeah I agree, important to use that card each month, even just for a little bit here and there if you need to. Chase Freedom Unlimited and Flex are the 2 cards that I think everyone could easily get good value from!
100% definitely focus on making a purchase each month.. the more months of on time payments the quicker your score goes up
Okay so i got the discover it card and it put $200 for my limit and i heard that only use 10% of of the $200 so does that mean i only use $20? Also when you you say pay in full does that mean pay $200 or pay back only the money u spent?
@@ItsJesusss pay $20
@@ItsJesusss You're only supposed to use 10-30% which is my rule of thumb. The nice thing about the discover secured card is that you can pay it off several times a month. I just recently got my security deposit back, but I maxed out my 200 credit limit several times a few months and paid it off in full before the statement balance due date. I'm almost certain that statement balance due date is when they pull your credit score, so that's when you want there to only be a small balance or none at all.
This video was so well made and I agree with everything you said 100%!
Thank you so much for saying that, I appreciate it!
Thank you for this extremely engaging and instructive content. Im 28 years old and I truly appreciate your insight as I have a little experience with credit.
Dropping jewels again.. Thanks Daniel. Great video!
Thanks as always for watching Haas, always great to hear some good feedback from you! 👍
@@Daniel_Braun you're welcome.you're great at explaining credit.
Great work!
This mini-game we're all practically forced to play sucks major ass, but I appreciate that there are people like you trying to help out the new guy. It's much appreciated!
super cool vid
great video, love them man! road to 10k 🤙🏼👊🏼
Thank you so much, I appreciate it! Absolutely, hoping getting to 10k in a few more months!
Very informative thank you
hey im 18 and I've had my card for 4 months. very useful info. I've payed everything on time and im going for my first car soon. im a buisness major at community college for I have debt for college. Finance is very important but my life looks very different then my friends. Im alot more independent and doing stuff they won't have to figure out until years later. It will help me but I love doing well in these areas and using my money responsibly. im 19 soon so gotta keep going.
Same
Stay away from santander. If you absolutely have to. Refinance in 6 months at a credit union!
@@WGAGENCY hello! I’m abit confused on what a Santander is. I’m also on the same boat as the main commenter
@@Jxded_7 i seem to have left my comment under the wrong comment section but anyways santander is loan company that car dealers use for people with little credit history (alot young people), bad credit history, or both. They give people crazy high interests rates that know nothing about interests rates and people end up paying double of what a car is worth in the long run. I've heard of people paying their car payment for 4 years and have not even not even made a dent in actually paying for the car itself. Alot of young people get sucked in. Just trying to look out for the youth. Don't use them unless you absolutely have to. If you HAVE to refinance your car at a credit union 6 months later no a second over that.
I am 53 years old, and all my life I was raised If you don't have cash you don't need it... So me getting my very first credit card is astounding to me! I just want to make sure that I make no mistakes I want to hear from different sources. Let's hope I have a good handle on this... Lol The card should be here sometime within the next few days ☺️
Same! Im 51 and never used credit or had a credit card. About 4 months ago my debit had been fraudulently used while i was out of town on vacation so i thought i might just get a card as a "backup" in case it happens again, anyway long story short i got a basic chase card and a month ago got a better chase card the "freedom flex" and two weeks ago a Chase amazon prime rewards card. So now i have 3 and im going to just stick with these for awhile. The good thing about never having spent money i dont have it is unthinkable that i would not pay in full every month! My score is about 705 only 4 or 5 months into ever having credit so there is hope for us old holdouts lol. Best wishes
Thank you so much dude. I recently turned 18 and my parents would like to help me build credit. This video was and is so damn helpful 🙏
I love your videos! You're straight to the point and very informative. You teach me how to make credit cards work in my favor. Thanks for sharing!
Love this video
good video man. really simple to understand.
Thank you! Really glad to hear that it was simple to understand because that was my goal!
Dude, you are awesome. The information you give here and on your channel is something that so many young people don't have access to at their family dinner tables, and if they can only be lucky enough, one time, to be given a link to your videos and go watch, it can change their life for the better. Keep going, man. Thank You from me and on behalf of all those who otherwise would be non the wiser.
W asss vid bro learned so much and u simplifed it hella good
Hi Daniel. If people follow this spot-on advice, there is no way they can go wrong. Nice job!
great video thank you
Thanks so much Emilio! Glad you liked it 👍
When I first started I applied for about 4 cards and got 3 of them, the ones I did get were all secured cards that I put a $200 deposit on. (Discover card, Citi, & capitol) I'm about a year and 3-5 months into my credit journey & my score is 700-710. I've gotten my deposit back/graduated from my discover and Citi within a year and 2 months so those cards are now unsecured(I made sure to only apply for cards that will eventually graduate from a secured card into a unsecured card so that I wouldn't have to re apply for other cards in the near future) so instead of getting one card with a $600 limit that would be putting one payment towards my payment history now I have three cards that are each acquiring their own payment history so each month I have three payments going towards my name instead of just one. I guess one of the cons to this is that I possibly could of got a higher line of credit if I just put all my cash into one card then got an increase on that but for my situation I'm not trying to get as much credit as I can as soon as possible I'm just trying to slowly learn & grow at my own pace (Just what I did, hope this helps)
Great info! Thx for sharing. Also thx for getting straight to the point. I've listened to other UA-cam sites and they tend to babble. I don't have time for babble.
Thanks so much Tracy! Yeah I always appreciate it when creators get right to the point so that's what I try to do with all of my videos!
Thank you 🙏 As a 19 year old young adult I just got approved for my 1st credit card and I never had anyone to teach me stuff like this. I linked my bank account today apart of the set process and it asked to set up if I wanted to set up automatic payments and I said yes because I don't want to accidentally miss a payment but there was also option for the automatic payment to pay the minimum required amount or pay in full and I just put minimum required amount not knowing how the interest rates rates worked. This being my first credit card I have credit amount of 300 so 94$ purchase, while that isn't a lot would be a high percentage for me so I'll make sure to make partial payments to keep it low right before my closing date. Thank you again!
Nice! I’m 20 and i now have a $11k limit between 3 cards. I recommend using experian boost and linking any bills you pay (Phone bill, Rent, Car insurance,etc.) because it actually helps you by giving points towards your credit score! Good luck Katelyn :)
I’m a beginner right now I don’t have a credit card but I wanted to learn before I got one so I’d have some knowledge I really appreciate this video🙌
Just started my financial literacy journey and fixing my credit Great video Thank you!!! School should really teach this smh
This video is everything i need to know king! thank you! subbed been binging you for about three hours now haha!
Glad to hear it was helpful! Thanks so much for watching a bunch of my videos and subscribing - I really appreciate all that!
this is great information bro, u got a sub
Thank you so much for subscribing Reinaldo! Glad to hear you like the information and the video 👍
Very helpful, something that I feel everyone needs to be aware of is jumping on the first referral they see! I got the chase sapphire preferred and I got an intro bonus of 60,000 when there was an 80,000 point availiable just because I didn't try. I try to maximize my CPP by leveraging transfer partners (video coming soon about that) and so 20,000 extra points would hav ebeen worth a lot more. I've learned a ton from you channel Daniel, thanks!
Definitely agree with you Jackson, always important to get the highest sign up bonus! And I'll have to check out your upcoming video about transfer partners 👍
I’m forced to use a credit card to build my credit score for my first house. But thankfully, I’m very conservative with my money and use my credit card as a debit card to make sure I only pay for what I need and within my budget.
BTW, hearing all these horror stories of the average credit card debt being in the thousands is just ridiculous. It’s like both people are stupid for overspending on useless crap and the companies are actual slavers.
What a twisted world we live in.
credit cards are really great and useful and a quick way of building credit so don't feel bad about that.. check out secured cards and beginner credit cards to help build credit quickly. Let's build that dream
Yeah, I only talk credit cards with people the i believe have good spending habits. I hate to, but If I were to recommend certain people in my life that they could make money from credit churning , i know they would end up failing because of there habits and cause havoc on there credit.
@@thadszmaciasz8971 yea it’s a tough one because credit cards are mainly good for credit but if behavioral components aren’t right it can be a wreck
Let’s put it this way.. I’ve never read an article from a wealthy person identifying credit card points as to how they built wealth - though I post a bit on my own channel about credit cards
Well, in the event you use a term limited 0% interest card for a short term loan, ensure you have it 100% paid in full before the 0% interest offer expires. Otherwise you’ll be looking at 12-18 months of back interest. I made that mistake once.
Hey man just got my first credit card with Navy Federal yesterday. Just got a go rewards card, I need to start building credit. Thanks for the advice! Gonna binge watch your vids the rest of my shift!
Love to hear that you're starting to build credit, congrats on your first credit card! And also really great that you're binging my content, I hope it all helps to answer any questions that you might have. I'll have plenty of more content coming about some common credit card topics as well!
Great camera and edits. I have the M50 and love it
Thanks Garrett, I'm happy to hear that! Yeah I'm really liking the M50 and I just got a new Sigma 16mm lens so this was my first video with it! The lens is great too 👍
I just got my first credit card yesterday (Discover It Secured Card) and I am so excited to start this credit journey
Great video!! Thank you so much for the information, very clear and concise
I have a question about credit utilization... Do we need to use less than 30% each month? even if I pay in full each month?
When I was 16yrs old, I was working at a supermarket and wanted to open a bank account. There was a TD bank across the street, so I opened a checking accound and wanted to open a credit card account. The bank representative did not tell me that I needed to be 18 to apply, so I got denied. I tried again at 17, thinking I have a better chance and got denied again.
When I heard about Credit Karma when I turned 18, I found out my credit score at the time was at 350, which is crazy low for someone who doesnt owe any money to a bank.
I had to start off with a secure card where I had to deposit money and that was my credit limit.
Thank you boss
Thanks for recommending the CSP vs everyone pushing the CSR.
Thanks for giving good and helpful advice like the fact that a balance transfer card is often harmful to many because a missed payment equals high interest rates.
Good point about downgrading a card to no annual fee.
New subscriber.
appreciate the video ❤
Thanks so much for watching, glad you liked it!
I started my credit route avoiding literally all of these and my credit score is damn near perfect 😭🤘🏽
good for you!! i know that sounds sarcastic but its not meant to be.
Here I am 3 years after opening my first credit card and dealing with a little bit of trauma because it was overwhelming lol but it’s all paid off and my credit is soaring
Your videos are such high quality lol I loved watching it, (pro tip, using prime numbers like 7 or 11 are, for some reason, more eye catching to potential viewers😉👌🏻)
I wish you the best of luck in the future, your channels gonna be HUGE in the financial space man, no doubt in my mind
Thank you so much for saying all of that! Haha yeah funny enough I've heard the same thing about prime numbers in the video title and I've just been playing around with other numbers too. Good timing with this comment because my video that I'll be posting later today actually has the number 7 in it lol.
I really appreciate hearing that though, I love making these videos so I'm really excited to see where the channel goes! 👍
@@Daniel_Braun I’m excited to see where it ends up XD I’ve been addicted to credit and anything money since I was 15 and I’ve watched several of your videos at this point, you’ve got a huge future on youtube
Love to hear that support, that’s awesome! Thanks! Yeah I’ve been the same with personal finance topics since I’ve was in high school and college. I love talking about this stuff so I can’t wait to keep growing the channel!
Thank yoh for your help, its much appreciated. Just got my first card a month ago, using it like a debit card.
First time watcher here. I learned a good amount of credit card use in college but not this in-depth. Thanks for the info!
I just got my first card today and I wish I watched this video first lol. Either way..
When you talk about closing an account erasing your history with the company, are you talking about just the history itself or does it also subtract the score you built as well? I had just gotten an annual fee card and didn't even know about the downgrade option, so I'm just wondering if in the future it'll affect my score if I cancel (if there's no option for downgrade).
Tactics damn I fell for it!
Thank you!!
Thanks for watching!
I started with the freedom flex absolutely love it
I applied & received 5 credit cards from the span of June 1st 2021 to September 21 2021. But I am guilty of your second mistake. I applied for my 2&3 card just for the smaller signup bonus & now theyre in my closet since I wasn’t thinking about longevity. I only use them once every couple months.
Also the only time I took advantage of the 0% APR was when I knew I wasn’t planning on getting a new card soon, so I transferred $1k of my car loan payment to the credit card just because it was less than the car loan interest payment. & it still keeps my credit utilization just below 10%
Great video and tips Daniel!
Not always too bad to apply for a few cards but that is a lot pretty quickly haha. But as long as you're monitoring your credit score to see the impact then that can help you to decide how often to apply too! And at least you got the sign up bonuses for cards 2 and 3. Even without using them much anymore, its still good upfront value I'm sure.
But really good to hear that you put in a lot of thought into that 0% APR offer to save on interest! Not a bad way to do it with the way that you planned it out 👍
Thanks for watching Kyle!
@@Daniel_Braun Well thank you for your response!
for the most part I agree with this vid. However, in my situation I was more worried about having enough credit to pay for emergencies. As a beginner you typically have low limits which isn't very optimal when an emergency comes along. Therefore, I applied for as many credit cards as I could using the preapprovals I got in the mail. I wanted to have at least $10,000 in total available limit. In Dec 2020, I was glad to have this amount in place as I found myself living in an extended stay hotel for about a month. I could never have done so if I only had 1 or 2 low limit credit cards, but with 8 credit cards I was able to spread out my weekly charges so that my credit score didnt take a really huge hit.
You should not be using credit cards to pay for emergencies
THANK YOU 🤟💋
I applied for AMEX BBP and AMEX Gold card 20 minutes apart, on the same phone call haha.
I made quite a few mistakes as a young kid with credit cards. I was on road construction and practically lived off of my credit card. When I finished road crew, I didn't really have work but had like $6000 in debt, it hit hard, but finally paid off everything and now I'm back up and all good. Just spend what you can afford on your card, right now, I just use mine for bills and fuel for my vehicles. Which comes to roughly $600 or so a month.
Thank you I got my first credit card at 50 yrs old and I followed your advice, and my first credit score ever was good 👍🏼
New viewer of your channel thanks for the helpful tips I just wanted to recommend maybe making video more bite sized to keep the attention span of more listeners. I’ve seen the videos on your channel and I’m interested in watching them but they’re also very long. Just a recommendation.
Thanks!
Thanks so much for watching!
Great video. I’m new to credit. Should I use credit card on everyday items as food, groceries and devices? (Knowing I do have the money for it and can buy it with debit. And are there things you would not buy with your credit card?
As a fellow Braun who just got approved for his first card, thank you for this video
Haha great last name! And thanks for watching, glad to hear it was helpful!
2 things that I think are super useful to me: mobile banking and multiple payments per month
I check my cards usually every day and mobile banking apps make that super useful.
I get a paycheck every 2 weeks and I pay off all balances whenever I get paid. Being able to pay multiple times per month helps keep payments low
Hey I’ve been wanting to do this? Does This help your credit score?
@@valeriemiranda5896 TBH I'm not entirely sure, but I think it would have to help because when the statement balance comes, a good chunk will already be paid. That means you'll have a lower credit utilization which should improve your score (30% of score is credit utilization)
Why I'm not sure is because if you pay off your statement in full when it posts I don't think it logs any differently to the credit agencies. Full payment by 21 days should ensure no drop in credit rating
When I turned 18 I got an Amazon, jcp and Best Buy credit card and maxed them out, just last year I finished paying them off, wish I never done that at first but now I’m scared to get a new card I just applied for the Apple Card in march and just treated it like cash and it’s so much easier to manage now
One thing you gotta look at is your amount of money you spend in general. You see a lot of people on UA-cam posting free flights and hotels they got with their credit card, not knowing that many of them operate businesses where they spend very large amounts of money every month. If you're just a regular normie you gotta understand that just buying your groceries or gas on a credit card isn't just gonna land you all these benefits.
Yes indeed. I was at a point over a year ago to where I was spending 3k a day on Facebook ads with my amex gold card. Points racked up like crazy
@@WGAGENCY did you get invited to apply for the Black Card?
@@achavez78 nope. My brand was only doing about 9k a day in revenue . My buddy did though. He didn't get his invitation until about 3 years later with his store but he's been doing upwards 40-50k in revenue for years. That's for the big dogs
love your advice but the joker smile is sending me. love it tho
🙃
I just turned 15 and I’m able to apply for a credit card in 3 years but, I thought it’s nice to learn what I’m gonna go into
Great to hear that you're getting a head start, I love that! Thanks for watching
Could you cover deserve credit cards as well? Are they good for beginners?
This video really helped to understand the basics. Appreciate what you are doing!
Just depends if split payment on a big purchase coming up *on how many cards your going for sign up bonus* or just have ordinary spend going on for the next (few) months. And other factors such as credit history.
Yeah definitely, lots of other factors like those to consider as well!
Just subscribed 👍🏾👍🏾 Just got my first Two credit cards last month thanks very informational… I have a question I paid my balance off and haven’t been credited the full 300 back why is that?
That's great advice! I am 22 and I have my own small business and I want to scale it. And it's a financially clever move for me and my partner to get a credit card for out business. But I don't even have a personal one and neither does my partner! Should I prioritize getting one first? Also, what do I have to look for when I do my research? And can I apply for a credit card outside of my country?
Asking from EU, Greece 🤷♀
What's the business you guys have? If you want a credit card for your business, wouldn't it be better if you just took a small loan out instead?
Thanks for the advice! Fairly new to the whole credit card thing (About 7 months in) and I’m sitting on a FICO score of 759. Hope to build more of my credit history and aim for that 800 mark!
Right there with ya! Got mine 7 months ago too and sitting at a 767!
How did you get a 750? I’ve had mine for a year with a small loan and I’m barely at 620
@@carlaceciliaxx I’m guessing you used Discover cuz I also had a 767! It lowered down a couple of points because of a recent hard pull I did on another credit card. Good luck on your journey as well!
@@brbr3787 Not sure, but I did just start my credit history. I used the Discover secured card with a limit of $200. Paid on time, paid in full, and also made sure not to use more than 10% of my credit limit for credit utilization. So basically, not going over at least $20 on the card itself.
@@rawnuhld yes I did! How long did you wait to apply for another card after your discover? I've been wanting to get the freedom flex but Idk how big of a drop it will be to my credit score if I apply so soon (have only had my first credit card for 7 months)
Thank you!!! Fantastic video
Thanks so much Karina! Appreciate that!
If you can be responsible with credit cards you can easily get paid to use them through welcome bonuses and cash back. Avoid these mistakes and you're golden! Great video Daniel.
Hey Daniel, thanks for the video. Got a question for you. I am looking for a CC for myself and my partner (both of us are freelancers so no fixed income) we are Australians. With unlimited lounge access mainly in Europe. (not just the useless 2 access a year). I am really struggling to find something suitable. Your recommendations would be highly appreciated. Thanks
If your School offers business classes, sign up for them and take every single one that they offer. I took Personal Finance, Accounting 1-3, Sports Marketing, Entrepreneurship, Business Law, and also a speech class that cover advertisement and also mock business meetings/ presentations. Honestly if you’re only looking to know a basic knowledge for yourself, personal finance and accounting 1 will pretty much do the trick. I hate when people and my friends especially say that why didnt they teach us this in school and im like “they did” you just had to sign up for the classes and theyd argue back and say that “no like in basic classes” 😐 you really think they are gonna go over credit scores and W2 forms in history class
Depending on the situation, isn't it better to apply to around 2-3 in the same week period. I was under the assumption that points wise, you only get hit once for the hard inquiry if there are multiple attempts in a short period of time. Sort of like a cool-down period.
There might be some situations where only 1 hard inquiry is done for multiple cards but that is not the usual. From my understanding, each application could be each subject to a hard inquiry so I never try to do a "rapid-fire" application approach. I just wait a few months between applications and that has always worked best for me. Plus, it helps me to manage any minimum spend requirements for bonuses to one at a time
What you're referring to is when you're rate shopping for a car or mortgage loan. Banks will lump those inquiries together during about a 30 day period.
That doesn't apply to credit card applications. Some banks such as AmEx will only do soft pulls once you're already in their ecosystem but most banks will hit you with a hard inquiry for every credit card application.
Hey, new to this channel but love the content. Can you do a video on your travel experiences with Chase/Amex? I have heard negative stories about booking through Chase's travel portal and abysmal customer service. Maybe you can compare to Amex.
Thanks to your videos I've decided on a Chase Trifecta but am wary because of the horror stories I've heard from using Chase's travel services.
Thanks so much for saying that, I'm really glad that you found my channel! Yeah absolutely, I'd like to do a video talking about things like the portal and customer service with these 2 companies. I can tell you the Amex has very good customer service, but the points aren't as valuable in their portal. Chase has not so good customer service (I've had very long and frustrating calls with lots of transfers haha) but their portal gets much better value for your points with the Sapphire cards.
Good to hear that you've decided on the Chase Trifecta! I'd say its well worth it because the travel services that I've experienced have been very easy to use and good for me
Im 35 and started my first credit line last year with a citi secure card which means I opened the card with my own cash (up to 1500$) I spend a year building credit and paid it off and just got a check back for the cash I started with. And already at a 750 score. That's a new option for people