How to Build Credit from Scratch!

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  • Опубліковано 24 гру 2024

КОМЕНТАРІ • 292

  • @Asharra12
    @Asharra12 2 роки тому +183

    As an Australian, the fact that you need to do this is insane. As long as you pay your bills on time and have good saving history, that's enough of a credit history.

    • @TheRealE.B.
      @TheRealE.B. 2 роки тому +13

      As a symptom of how broken the system is, some credit companies have started offering paid services where they'll take a "closer look" at things like paying bills in order to boost your score.
      With that being said, building credit is really not hard in the U.S. unless you are abjectly poor, in which case it's only one of the problems keeping you trapped in a cycle of debt. As long as you make enough to pay for rent and groceries, it's pretty easy to get a high-tier score after a few years of a responsible credit card use. Which arguably makes the entire system more of a joke, since a good score doesn't even mean much. At some point, you reach a plateau where even rich people can't get a better score unless they do weird crap to get the number to go u artificially, which some people do even though banks don't care anymore beyond that plateua.

    • @TaliyahP
      @TaliyahP 2 роки тому +10

      "As long as you pay your bills on time"
      I mean you just described credit building... Things like your phone bill are reported to the credit bureaus.

    • @Asharra12
      @Asharra12 2 роки тому +1

      @@TaliyahP Yes, but you don't need to do credit cards and other stuff to get a good credit score was my point. Which is good because I'm firmly against credit cards and have never had one and never will. It's just living your life without doing anything special which is not what they were taking about in the video

    • @francischic7854
      @francischic7854 2 роки тому

      Heard you guys have a good education system too.

    • @daveyboy_
      @daveyboy_ 2 роки тому

      The bank ain't gonna let u buy a 400,000 $ house just cause u have money in your bank

  • @Jordan-fi5mp
    @Jordan-fi5mp 2 роки тому +499

    As a European who’s never had to deal with the ‘Credit Score’ system before, “Credit Builder Loans” sound almost like a scam! You end up paying a bank a small amount of interest to build a score that they use to assess you for THEIR OWN products!? How on earth is such a system even allowed? 🤯😨

    • @-my4skinwastakeninasickjew426
      @-my4skinwastakeninasickjew426 2 роки тому

      It is a scam. This is how the youth are stopped from buying cars and houses. Poor staying poor etc.

    • @yankeefederer1994
      @yankeefederer1994 2 роки тому +55

      All due respect, Europe's financial system is way worse at assessing non-performing loans. Even the most stringent German banks have a significantly higher level of bad debt they will eventually have to write off, and that will trickle into the economy at the worst possible time, like an impending recession/depression. So while America does have a harder system to build consumer credibility, it probably has a good reason for doing so.

    • @rameneater1437
      @rameneater1437 2 роки тому +1

      @@yankeefederer1994 the reason why we have a credit system in the US, is to keep minorities from buying houses. Look it up, it was created with the idea that black people wont be able to buy a house, and thus the white mans wealth is protected and redlining is legal again

    • @yankeefederer1994
      @yankeefederer1994 2 роки тому +7

      @@rameneater1437 Which is why everyone has to be vetted by the credit system today? Not saying one can't be discriminated on a loan application based on the ethnicity of the name, or other factors. But performance history is a very good way to figure out whether someone can/will pay back a loan.

    • @rameneater1437
      @rameneater1437 2 роки тому +35

      @@yankeefederer1994 it was CREATED with discrimination in mind

  • @tinywitch8677
    @tinywitch8677 2 роки тому +120

    My biggest tip as someone trying to start into credit. Automatic payments on credit cards so you never worry about forgetting!!! Use it on things that you normally spend like gas or groceries!!

    • @sor3999
      @sor3999 2 роки тому +12

      You should take the opportunity to evaluate your spending every month by actually looking at the bill. Automatic payments are nice, but if you're blind to the fact that you're incurring a $3000 a month spending debt against $2000 a month of income... the autopayments aren't going to help you here.

    • @lisakukla459
      @lisakukla459 2 роки тому +15

      @@sor3999 Setting up automatic payments doesn't mean you stop looking at your statements and monitoring account activity. Lol What a strange thing to assume.

  • @albear972
    @albear972 2 роки тому +96

    Even without watching this. Secured credit card! I did that as a 17 year old wayyyyy back many decades. And manage them well. I am proud to say that I have never once paid a cent in interest to a credit card company. Well, once or two times a bill got overlooked and I paid the stupid tax, late fees. My credit score is currently 842. I don't know what it takes to get to that magic 850.

    • @jeanp.5929
      @jeanp.5929 2 роки тому +12

      Yeah, that 850 is elusive. I'm at an 820 and I've done pretty much what you did.

    • @0_1_2
      @0_1_2 2 роки тому +5

      Humble brag

    • @bagery
      @bagery 2 роки тому +8

      Congrats! I Finally made it to 822 in my 40s after doing every wrong thing since college where they were staked out dispersing credit everyday. I cringe at how much interest I paid.
      Experian says I "need" mortgage exposure to go higher. Eff that. Would love a house but not at these modern prices and certainly not for a higher score.

    • @CentinalxGaming
      @CentinalxGaming 2 роки тому +7

      I started late at 22, so far so good sitting at a score of 745. The goal is to make it to the 800 club by the time I want to buy house.

    • @albear972
      @albear972 2 роки тому +4

      @@bagery You did well! The banks were looking for new -meat-, clients to snag. That wasn't cool. Cool that you didn't take the bait.

  • @TomMcMorrow
    @TomMcMorrow 2 роки тому +61

    I started my credit journey with a secured card, after a year I applied for a regular card at the same company. Now, 10 years later, my credit score is 800+! What a journey it has been.

  • @davidnievesjr.9478
    @davidnievesjr.9478 2 роки тому +64

    I started working on my credit a couple of months ago. I got a credit card with a $200 limit and I put my streaming (Netflix, Hulu, Amazon Prime) and car insurance on it on autopay. It all adds up to less than the $200 limit, but comes close. I paid the balance before the bill was due and my credit score went from non-existent to almost 700!

    • @rameneater1437
      @rameneater1437 2 роки тому +2

      Okay?

    • @luisandrade2254
      @luisandrade2254 2 роки тому +1

      How long did you take btw?

    • @davidnievesjr.9478
      @davidnievesjr.9478 2 роки тому +5

      @@luisandrade2254 Within the first month I used the card and paid the balance off several times before the first bill was even ready. Then, suddenly, I had a credit score.

    • @luisandrade2254
      @luisandrade2254 2 роки тому +7

      @@davidnievesjr.9478 wow that’s truly impressive glad for you

    • @michael567jober
      @michael567jober 2 роки тому +1

      would you have had those streaming services tho without credit? if not then you just playing yourself

  • @thehibernatingturtle4016
    @thehibernatingturtle4016 2 роки тому +12

    I work at a big five bank in Canada and for credit cards, only the primary cardholders credit bureau is reported on for any and all cards on the account. I remind my clients each time in depth that they are responsible for their authorized users spending. It can get ugly.

  • @mprime1716
    @mprime1716 2 роки тому +18

    Highly recommend starting at an early age to work on your credit. The earlier you can establish a good, long credit history, the more preferential interest rates you can get on a loan (like a car/mortgage). Also, once you graduate from secured cards, look into churning credit card points/perks.

    • @flopsinator5817
      @flopsinator5817 2 роки тому +1

      I'm confused, why on on earth would you borrow money for a car?

    • @Austin-fc5gs
      @Austin-fc5gs 2 роки тому +2

      @@flopsinator5817 they're not recommending borrowing money to buy a car, they're saying good credit history will give you a better interest rate on those loans

    • @flopsinator5817
      @flopsinator5817 2 роки тому +1

      @@Austin-fc5gs The first rule of buying a car: don't borrow money for it!
      It's just that OP and Two Cents make borrowing money for a car sound like the most normal thing in the world.
      It's horrible financial advice really.

    • @penultimateh766
      @penultimateh766 2 роки тому +1

      How about just buying a reasonable flipping car and house instead that you can actually afford?

    • @flopsinator5817
      @flopsinator5817 2 роки тому +1

      @@penultimateh766 For almost everyone it's virtually impossible to buy a house without borrowing money.

  • @kirkchambers5066
    @kirkchambers5066 2 роки тому +4

    This is Mr. Chambers' Financial Literacy class. We love the content. You guys do great work. We miss the mustache very much.

  • @SwordQuake2
    @SwordQuake2 2 роки тому +15

    That is insane. And some people think the USA is this amazing magical place where in actuality you are constantly predated on by every single institution.

    • @bishop51807
      @bishop51807 2 роки тому

      My dude poor countries, countries that are fighting armed conflicts, and the countries that are ran by dictators that America is a magical place. What conservative politicians fail to explain is that most of the people that come to America are usually desperate and are not coming from stable First World countries.

  • @Kris5344
    @Kris5344 Рік тому +1

    Important part about inquiries is that multiple inquiries for same purpose in a short time (in my case experience 2 weeks) count as one. So don’t let anyone scare you from shopping around for loan when buying a car.

  • @alekorgruene313
    @alekorgruene313 2 роки тому +7

    The piggyback method works extremely well. I went from an N/A to almost 800 in less than 4 months. Of course the person needs to be reliable.

  • @dbadaddy7386
    @dbadaddy7386 2 роки тому +5

    I remember going round and round with someone in a Usenet forum who insisted her being rejected for credit when she had only used cash was a moral judgment on her. She kept insisting she was a good person and "they" had no right to say she was bad. Myself and others tried to get her to understand what was in this video, but she insisted on being offended at being told she was a bad person, so we started ignoring her.

  • @MOBMJ
    @MOBMJ 2 роки тому +5

    the best way to use a credit card and not get into debt is use your credit card like a debt card. in other words use it like as if you have the money and pay it off right away.
    like lets say you go grab lunch and its $10 instead of using you debt card or cash you a credit card, when the statement posts to you account pay of the whole thing right away.
    not only will you stay out of debt but you'll build your credit fast too. for example I got my first card at 18 if was a secured card with a credit limit I had to pay up front in cash fast forward to today I'm 21 now with a 800 score and I have no debt, I pay off my cards in full every month.

    • @sor3999
      @sor3999 2 роки тому +1

      Yeah, debit cards and credit cards can functionally be the same. Just debit cards require the money in the account up front while the credit card is after the purchase. Only difference is the order here. But many young people treat getting a credit card as "free money" they somehow think they can just run away with lol.

    • @jollama
      @jollama 2 роки тому +2

      *debit

  • @EVO.0w0
    @EVO.0w0 2 роки тому +1

    1. See if one with good credit in your family will add you as authorize user on their credit card 💳
    2. If not go to for a secure credit from cap1, chase, or discoveror finance a watch at a jewelry store.
    3. Put automatic payment for statement balance.

  • @Rage_net
    @Rage_net 2 роки тому +5

    I am so thankful for you guys and the easy to
    Understand info you provide. I didn’t have the best parents growing up
    And they don’t exactly teach this important stuff in schools (although they should. I have never once used the Pythagorean theorem in my adult life but I digress) so I’m very thankful I happened upon this channel as I have learned so much. Thanks! :-)

  • @xpglr
    @xpglr 2 роки тому +4

    Two Cents coming in clutch as I learn to navigate adulthood

  • @Healthylifelex
    @Healthylifelex 2 роки тому +1

    Your tattoos are coming along! 🙂 I love these videos.

  • @Chubbylito11
    @Chubbylito11 2 роки тому

    In our country, we started using the credit score system and im glad to have built a good credit score since 2013!

  • @ChristopherJohnsonArtist
    @ChristopherJohnsonArtist 2 роки тому +1

    After being clueless with my first credit card when I was 19 or 20 when I didn't even have a regular income (why did they offer me one in the first place?) I totally misused it and then avoided using credit cards like the plague for the next two decades. I finally started using one (secured) last year and I was "graduated" as mentioned in the video to the unsecured with a higher limit. I admit I am still a little afraid of them, but thought that I probably should start generating a good credit history now that I have a better idea what I'm doing. 🙂 This time around it is a lot easier since everything is online. I don't have to mentally keep track and wait for the bill to arrive like before so I can quickly see my balance and pay as early and as often as I want.

  • @hersheyskwertz9315
    @hersheyskwertz9315 2 роки тому +12

    You two do such a great job!

    • @Haseri8
      @Haseri8 2 роки тому

      a great job would be listing the names and addresses of the people who set these policies

  • @Cory83
    @Cory83 2 роки тому +2

    Simplified, easy to understand and a great foundation block for new and tenured credit users! Great video, as always!

  • @pedrog5846
    @pedrog5846 2 роки тому +1

    Didn’t think a secured card can become unsecured, for anyone who hasn’t began, definitely look into that.

    • @jollama
      @jollama 2 роки тому +1

      Living under a rock huh?

    • @pedrog5846
      @pedrog5846 2 роки тому

      @@jollama Yep. No mortgage payments to worry about.

  • @luisandrade2254
    @luisandrade2254 2 роки тому +37

    This whole system sounds incredibly stupid to be completely honest if Americans want to use a credit score system they should at least allow for rent and bill payments to count towards credit worthiness

    • @sor3999
      @sor3999 2 роки тому +1

      It would if rent and bill payments were loaned money, but they aren't. You can absolutely treat credit cards and loans the same way, but that's the distinction.

    • @Skarpo89
      @Skarpo89 2 роки тому +6

      @@sor3999 But you do still need to pay month to month and thus can show you are responsible and can pay on time, which is what matters

    • @justanotherjessica
      @justanotherjessica 2 роки тому +2

      One of the credit reporting agencies does have something that allows certain bills to count towards your credit score. It's called Experian Boost. The problem is that it requires you to link your bank account so they can look through the transactions and verify that you're paying those bills which is a privacy nightmare IMO.

    • @james-wx6jh
      @james-wx6jh 2 роки тому

      @@sor3999 the power company runs my credit before hookup but dosent report unless i have delinquent bills

    • @bishop51807
      @bishop51807 2 роки тому

      That was the idea! it was intentionally rigged to keep poor people, black people, and migrants from climbing up the system.

  • @CaraMarie13
    @CaraMarie13 2 роки тому

    That's what I did. I added myself to my mom's credit card and my credit score shot up. Now that's a good cash free inheritance.

  • @sor3999
    @sor3999 2 роки тому +5

    A lot of these things described here sound like it was for people who ruined their credit worthiness. I never needed to do any of these things to start having credit. I was approved for a small limit credit card, like $1000, as a teenager and just used it like a debit card. Pay on time and slowly you build your credit profile. Nothing to it.

  • @FinancialShinanigan
    @FinancialShinanigan 2 роки тому +8

    If you're heading to college, don't get enticed by banks' student 0% APR offers unless you're going to stay on top of it.
    No need to graduate with both student loans and crippling credit card debt!

  • @yefreman_musica
    @yefreman_musica 2 роки тому

    Thank you very much guys!!

  • @PrecursorYang
    @PrecursorYang 2 роки тому +1

    Been watching you guys for years, here and there. Was a surprised that you guys have tattoos. That's cool that PBS let you guys have them.

  • @raynitaylor1912
    @raynitaylor1912 2 роки тому +4

    Man, this is something I had to deal with this. I hate credit cards with a passion though and never got them.

    • @jollama
      @jollama 2 роки тому +1

      Imagine hating free flights, free hotel stays and free global entry

  • @artemaeus
    @artemaeus 2 роки тому +4

    I'm about to be 33 and I've actually never heard of a secured credit card before o.o

    • @bishop51807
      @bishop51807 2 роки тому +1

      Yeah it's a product mostly offered by credit unions.

  • @SpacedOut997
    @SpacedOut997 2 роки тому +9

    Some services like Petal Card don't require you to have an existing score at all. They use history of checking accounts and savings accounts to see how well you manage money, and determine your eligibility based on that. I didn't have to put any money down either

  • @StarfleetUnderground
    @StarfleetUnderground 2 роки тому +3

    omg You have a tattoo sleeve!!!! That is so cool 😎🤘

    • @yabbaguy
      @yabbaguy 2 роки тому +1

      I don't want to give you too much heat, but it's great to see Philip doubling down on great fashion sense like the tattoos - though I wouldn't mind seeing the mustache again.
      Thank you for your videos as well; they genuinely helped me out a lot, I hope they stand to get lots of hits in the future, and I'll bet you know what I mean.

  • @BrandonMinguez
    @BrandonMinguez 2 роки тому +3

    One note about hard credit inquiries, when you're shopping for a mortgage from multiple banks, as long as you shop around within a short time period (I believe it's a few weeks) then it will only count as one inquiry.

  • @8aemi
    @8aemi 2 роки тому

    Love you guys :)

  • @tranger4579
    @tranger4579 Рік тому

    I started off with a capital one card with a 300 dollars credit limit and a 65 dollars anual fee. Used it purchase things using the rule of half. Jumped to 500, 1000, 1200.. limit 0 annual fee. Now I have 10 credit cards with a zero balance and an 830 credit score.

  • @IsaacKnowReally
    @IsaacKnowReally 2 роки тому +10

    I already know all this but it's everything I had to learn on my own in a 10min vid

  • @ESSHD
    @ESSHD 2 роки тому

    Thank You

  • @chevycomedychase6658
    @chevycomedychase6658 2 роки тому

    WORDS ARE NOT ENOUGH TO EXPRESS MY GRATITUDE TOWARDS YOUR KINDNESS TO OUR FAMILY WE ALL SAY THANK FOR GETTING THE SBA DONE.

  • @gilmendoza8092
    @gilmendoza8092 2 роки тому +4

    Dave Ramsey has entered the chat

    • @ericshang7744
      @ericshang7744 2 роки тому

      Sorry, he just exploded after hearing the word credit.

  • @theruffalo9200
    @theruffalo9200 2 роки тому

    YOUR ACT OF KINDNESS AND SERVICE SHOW HOW BIG OF A HEART YOU HAVE FOR OTHER. THANKS FOR THE SBA YOU SCUH AMAZING.

  • @raiyanahmed8427
    @raiyanahmed8427 2 роки тому +1

    Bring the moustache back.

  • @chrisconsorte7893
    @chrisconsorte7893 Рік тому

    I had to build my credit from scratch after I filed bankruptcy in 2011. I started out with a secured credit card. Then I applied for a car loan and regular credit card which I pay on time.

  • @user-kd5zg5ht2i
    @user-kd5zg5ht2i 2 роки тому +2

    If you are a student don’t waste your money on a secure credit card. The deposit might not get returned and you can get a student card simply by showing your acceptance letter or other prof that you are attending college. Use the card responsibly lie they said in the video.

  • @zants_
    @zants_ 2 роки тому

    2:57 In addition to this, for the *best* credit building keep it below 10%.

  • @ismaelhall3990
    @ismaelhall3990 7 місяців тому

    great channel

  • @avelineventer2482
    @avelineventer2482 2 роки тому +1

    I love these videos. They are super helpful. But most of them are about the American system. Where can I look for information about my own country? And how do I know if I can trust the information I get?

  • @ChristianAviles
    @ChristianAviles 2 роки тому

    Welcome back!

  • @financialwisdom432
    @financialwisdom432 2 роки тому +1

    Well done

  • @qwertykaitlyn
    @qwertykaitlyn 2 роки тому +7

    I remember being 21 with no credit when the bank teller first told me about a credit card and I remember thinking, you have my income right in front of you, I can't afford to pay anybody 🤣😅

  • @ecPaname
    @ecPaname 2 роки тому +3

    Biggest tip for younger kids is to be an authorized user on a parents credit card if they are responsible and also have good credit, apply for a credit card when you’re 18. And if you are able to be responsible keep opening credit cards to have more credit and that will lower your utilization score over the years.

  • @davidmilhouscarter8198
    @davidmilhouscarter8198 2 роки тому

    2:55 I have discipline and self-control. I only spend money that I already have.

  • @kevinc2061
    @kevinc2061 2 роки тому

    Nice sleeve Phillip!

  • @tiffariff
    @tiffariff 2 роки тому

    I NEEDED THIS FROM YALL THANK GOD. I’m a college student who has a 670 who hasn’t done anything to even get a credit score except check it. So yes, please show me the way

  • @whichwasher2007
    @whichwasher2007 2 роки тому

    Uk version is much much simpler. I got my first credit card with £2,600 limit and a 6.7% APR. 'Why so low' I asked. 'I've never borrowed any money, or had a loan or finance or anything'
    'Well, you have a high credit score. Because everytime you purchase something on your debit card. It takes several days to clear. Since all transactions you have done have all cleared on time. Its given you a good credit score'

  • @seancarnell1503
    @seancarnell1503 2 роки тому +2

    Can you (not should you, that's a whole different conversation) but can you add a minor child as an authorized user to start their credit history? Just by being a user do they get the affects or do "they" have to buy stuff on thier card?

    • @chancevicary1805
      @chancevicary1805 2 роки тому

      People do this and from what I have heard it is a good idea

  • @AbdulrahimBani
    @AbdulrahimBani 2 роки тому +1

    We miss the mustache

  • @michael567jober
    @michael567jober 2 роки тому +1

    i’m 35 with fair credit. never used credit cards but did car loans and healthcare loans. paid em all early. my question is where do i even start? i’m not a big spender. in fact i’m more on the cheap frugal lifestyle side so debt is very unattractive to me especially seeing what it can do to ppl that screw up. i just want my savings to go further and not sit losing value

    • @Marthastewart209.
      @Marthastewart209. 2 роки тому

      Read this book, or listen to audio book: "The Simple Path to Wealth".

    • @jollama
      @jollama 2 роки тому +1

      You act like you’ve never heard of Google

  • @Georgije2
    @Georgije2 2 роки тому +2

    This is a completely insane concept. In my country you just send your last 12 monthly salary statements to the bank and they calculate how much you can pay per month, and then just take the money out of your account every month right after you get your salary. Simple. You get the loan and the bank gets paid. Why would anybody want to waste time like this lending money to themselves with a pile of credit cards? You are just trying to hack a system that's not necessary in the first place.

  • @stinky2202
    @stinky2202 2 роки тому

    does Amazon pay later or any other no cost emi platforms count as credit

  • @stevenlerner5515
    @stevenlerner5515 2 роки тому

    the accuracy is just damn.... literally 16 percent

  • @lilyyoung1002
    @lilyyoung1002 2 роки тому +1

    Thanks for this video. I don't have much of a credit history at 19 and I don't have a credit card yet.

    • @Sonicfan138
      @Sonicfan138 2 роки тому +2

      Definitely a good time to start building your credit though! I got my first card at 19 and it allowed me to build up sufficient credit history to buy a house at 27, so definitely get to it!

    • @0_1_2
      @0_1_2 2 роки тому

      Don’t worry about any of this and just keep playing Minecraft

    • @lilyyoung1002
      @lilyyoung1002 2 роки тому

      @@0_1_2 I don't even play Minecraft

    • @lilyyoung1002
      @lilyyoung1002 2 роки тому

      @@Sonicfan138 I've been thinking about a secured card but I'm just not sure if I would be responsible with it since I don't work all year round right now because I'm a college student

    • @Sonicfan138
      @Sonicfan138 2 роки тому +1

      ​@@lilyyoung1002 That's ok! I would still highly recommend getting a secured card if it's available. If you don't have a regular income, just it a couple times a month (coffee, lunch etc) and pay off the balance. It's really never too early to start. And if you feel like you'd use it too much, don't carry it on your person at all times and don't use it for online purchases. Leave it in a drawer (secured, of course).

  • @vincentwong1127
    @vincentwong1127 2 роки тому +8

    That "Credit Builder Loans" sounds like a stupid idea

  • @davidmilhouscarter8198
    @davidmilhouscarter8198 2 роки тому

    0:33 If you want to know whether I pay my bills on time or not, you can contact Colorado Springs Utilities; you can contact Xfinity; you can contact State Farm; you can contact any number of contractors who have done work at my house; you can contact anyone whom I’ve ever paid…

  • @alikazmi6597
    @alikazmi6597 2 роки тому +2

    The very needed video amid global recession.

    • @fishroy1997
      @fishroy1997 2 роки тому +2

      Yeah always good to borrow during a recession.

  • @stevenlerner5515
    @stevenlerner5515 2 роки тому

    can you do one on how to get started buying places to rent on air bnb..... and run the numbers? I was looking into investments and loans i would need for that

    • @stevenlerner5515
      @stevenlerner5515 2 роки тому

      please and thank you. owning property and renting it on air bnb

  • @sunilashra7699
    @sunilashra7699 2 роки тому

    Please make a video on Grameen Bank model. Read his 3 books recently. Just amazing. It'll help many if you bring it to the fore.

  • @MaxwellPietsch
    @MaxwellPietsch 2 роки тому +1

    Wonderful video, as always. I'm curious what the backstory is to the very heavily laden sarcasm tones to the Patreon message at the end of the video 🧐

  • @edselgreaves6503
    @edselgreaves6503 2 роки тому

    In 2017 my credit cards got closed and went to collections, after I paid off my outstanding bill I was left with no credit history at all. Now I put $12,000 in a fixed deposit and got a secured credit card which I am using responsibly and paying off on time after getting my statement to build up my credit score again. Hopefully in about a year I can jump to an unsecured card and make up for my past mistakes.

    • @jollama
      @jollama 2 роки тому +1

      Imagine having to rebuild your credit

  • @pigpjs
    @pigpjs 2 роки тому

    My husband and I are going to put our son as an authorized user on our joint card. We're financially responsible and want to start building his credit score early.

    • @ecPaname
      @ecPaname 2 роки тому +1

      The best thing you can do. My parents did when I was younger and a month after I turned 18 it was so easy to open my open student credit card.

  • @kameshsobrajani9539
    @kameshsobrajani9539 2 роки тому

    I don’t have a credit score and i have 0 percent apr credit card for next 1 year should i pay full amount or minimum amount (since I am keeping that money in high yield saving account) and Also I am maintaining my credit utilization under 30 percent

  • @alexandervilla5673
    @alexandervilla5673 2 роки тому +8

    Meh. Credit score is currently 796. My credit score has only "mattered" the two times I've moved into an apartment/house on my own. Never had a car payment. And Manual Underwriting is thing when it's time to buy a house. So from my point of view credit scores are wholly useless things and a scam. 🤷‍♂️

    • @sor3999
      @sor3999 2 роки тому

      Just sounds like it was "useless" for you if you never got a mortgage or bought a car or need higher credit limits. And no one is going to "manual underwrite" your loan. You already have a known score and they will use it.

  • @SA-xt1gd
    @SA-xt1gd 2 роки тому

    My husband opened a secured credit card with a deposit of $550 few months ago we kept our utilization low and paid on time. Our score is now 708 but plan on boosting it and apply for a real credit card. Its so confusing when we speak with somebody from the bank about applying for a regular credit card but they speak in non understandable terms

  • @07_sev52
    @07_sev52 2 роки тому +2

    Lol remember when everyone was laughing at China's social credit score, which btw, was just a proposal and got nowhere near being approved.

    • @catkasimir
      @catkasimir 2 роки тому +1

      lie. It is being used.

    • @07_sev52
      @07_sev52 2 роки тому

      @@catkasimir A trial doesn't mean it's approved yet.

    • @corysturgis6660
      @corysturgis6660 2 роки тому +1

      It's real and thriving. Good documentary on it

  • @Therrhd
    @Therrhd 2 роки тому

    I love that shirt

  • @willmallory9085
    @willmallory9085 2 роки тому

    I hate the credit score algorithms because I paid off my car early to purchase a home and my score dropped.

  • @egal1780
    @egal1780 2 роки тому

    Just asking: doesn't paying Bills (Phone Bills and everything Else) build the Credit History?

  • @y.t1670
    @y.t1670 2 роки тому

    Didn’t know the utilization is also important! Before I thought it would be better to use as much as possible the credit card and pay it off on time. Need to change that behavior now 😅

    • @jollama
      @jollama 2 роки тому +1

      Living under a rock huh?

  • @OscarHernandez-dj3yv
    @OscarHernandez-dj3yv 2 роки тому +2

    I got my first credit card right at 18 to build credit. Now I'm 22 and i still have that card, plus one more i got a few years later, and a home mortgage. My credit score is at 799 🥳 and i never paid any interest on either of my cards!!

  • @penultimateh766
    @penultimateh766 2 роки тому

    Hey here's a genius concept: Don't spend money you don't have, then you won't need to borrow money.

  • @HeeminGaminStation
    @HeeminGaminStation 2 роки тому

    I heard that paying off a credit card immediately was bad for your credit is this true? I wanted to build credit by only buying gas for my car with my credit card and then just paying it off as soon as I got home but some people told me that would actually hurt my credit is this true?

  • @Andre-qo5ek
    @Andre-qo5ek 2 роки тому

    Can you explain why FICO fluctuates 50 points a month back and forth with no real change is spending habits?
    How paying off school loans took 90 points( never recovering)

    • @Marthastewart209.
      @Marthastewart209. 2 роки тому +1

      When you pay off a long term loan it may actually hurt your credit score. Credit score is not necessary about getting out of debt. It is about showing that you are a good borrower, can manage these debts and pay them on time. With the idea of letting you borrow more money.
      When you paid off the loan, it lowered your credit score because you have 1 less loan (amount of money lent to you) in your credit report. Also, it means you are now eligible to borrow more money from a new loan or credit card. So you are higher risk.
      Credit Reporting companies want to see you in debt. You appear to be trying to better yourself by getting out of debt.
      One last thing your credit card company or even local bank/credit union should have the ability to see a detailed report of your credit and why it is lowering or being raised. That can be accessed using a mobile app or web site easily.

    • @Andre-qo5ek
      @Andre-qo5ek 2 роки тому

      @@Marthastewart209. so i guess the question is, how do i stay debit free ( and moreso not have to pay usury charges [aka interest ] on anything ) while keeping a crdit score up?
      I spend money, i get a credit hit.
      I pay off debit, i get a credit hit.
      Its lose -lose.

  • @RaviolistRavioli
    @RaviolistRavioli 2 роки тому +1

    No wonder I kept getting dined a credit credit even though I have no credit history.

  • @itlog3722
    @itlog3722 2 роки тому

    I'm 24 and I never got a credit card. I have been paying my student loans consistently for 2 years now though, hopefully that counts. I gotta talk to my bank one of these days.

  • @Mantas002lt
    @Mantas002lt 2 роки тому

    Does anyone know if credit score exists in Europe?

  • @EarthsGeomancer
    @EarthsGeomancer 2 роки тому

    Is she pregnant? How exciting! 😊

  • @davida1810
    @davida1810 2 роки тому

    Sick arm tattoo bro

  • @fortkatana4u
    @fortkatana4u 2 роки тому +1

    Did he always had a sleeve ?

  • @luisduron2722
    @luisduron2722 6 місяців тому

    Ok

  • @Luis-lo8pj
    @Luis-lo8pj Рік тому

    Credit is the stupidest thing. They will give a 18 year old 100k plus in student debt but they wont give a 29 year old a loan because they have no credit history.

  • @exantiuse497
    @exantiuse497 2 роки тому

    @Two Cents
    This video has its comment section filled with scam comments. Please get rid of them, it hurts your own reputation and may lead to some of your viewers being scammed

  • @zodiacfml
    @zodiacfml 2 роки тому

    I still don't get this "utilization rate" thing which should not exist. For example, if one pays on time for several years, it renders the "utilization rate" factor useless. It could be useful to detect how a user in a financial bad situation vs the one who just usually pays late with low utilization

  • @koencooper3944
    @koencooper3944 2 роки тому +1

    You should do a video about passive income

  • @wanderlustwarrior
    @wanderlustwarrior 2 роки тому +1

    How can we know what caused changes to our scores?
    For example, after I paid off several of my student loans, my credit *dropped* by 10 points. I have no other debts and pay off my credit card before it's due. There were also no inquiries to my credit that I know of.

  • @merc7paul
    @merc7paul 2 роки тому

    Dave has entered the chat

  • @Badlex727
    @Badlex727 2 роки тому +1

    Been working for a financial institution for five years, and I have a question that I haven’t really been able to find the answer to. Is 30 days past due, from the date your payment was supposed to occur, or from the previous payment date? I’m guess it’s the former, but I’ve never gotten actual clarification

  • @rawfiul.
    @rawfiul. 2 роки тому +2

    Wow and i thought i never took any credit so banks will open heartedly lend me money

  • @saumitrachakravarty
    @saumitrachakravarty 2 роки тому +2

    I have heard that in US, credit score is higher for those who do not necessarily pay on time but make occasional late payments, compared to those who pay on time every time, all other factors being the same. The supposed logic behind this is, the former is more extortion-worthy and therefore more profitable to the banks, than the latter person. Is there any truth to this?

    • @matthijs.tieleman
      @matthijs.tieleman 2 роки тому +1

      No, this is absolutely wrong. Late payments lowers your credit score by a lot!

  • @robobrain10000
    @robobrain10000 2 роки тому

    best thing I did was get a student credit card. No approval needed based on income and builds history from an early age.

  • @gigngamer
    @gigngamer 11 місяців тому

    American madness !!