So basically we should get a credit card and just use 30 percent of it each month and pay it back on time or ahead so we don’t get charged interest and that’ll also improve our credit
From 1:06 if you pay back your entire balance before the bill is due, you won't owe any interest BUT if you don't pay back the full balance, the remainder begins to accrue interest...
You know in Kuwait, they have a totally different way of doing credit cards. They just deduct whichever is the highest between minimum charge per month and the percentage of the outstanding amount and then they return back the money into the credit card, which you can use again immediately. You don't incur any penalty. It doesn't end and you don't have to worry about your credit score.
A little bit, yes. But the difference is that by using the credit you can also generate cash back, points, or rewards, as well as improve your credit score.
@@motleyfoolmoney wait so can’t I use the cash I get from the credit card to pay for something then just pay it back with the cash I got from the credit
im guessing the main reasons to use a credit card is because a) some purchases can only be made with a credit card and b) sometimes you wont have money in your bank account because your job hasnt paid you yet so you use your credit card in that moment and pay back that money when you get paid i only got a credit card cause my dad said having no credit rate is like having a bad one, especially when the time comes to buy a car/house
@@andres.rivera.1821I look at credit cards as reserve. Almost like a rain water container for when times get tough, then use the rain water collected. Another analogy would be a food pantry. You want to stock up on food when it's cheap and then use it when needed. Of course the food will expire so you want to use the food in the pantry and replenish it with food with a more recent expiration date.
So is this summary correct? So credit card is a safety net between your bank account and the bank you owe the money. You basically spend the banks money and not your own but have to pay it pack on time to avoid interest and earn rewards. Debit cards instead charge your bank account and are more for reciptable / severe if money is lost there and trying to get it back. So credit card is a safer way of paying.
This is why I never even got a credit card. Until I was 30. No debt whatsoever even now. The fact there are confused kids on here is why I never messed with it. Use it to pay for things you already have money for. Then make sure it’s paid on time. Many cards have automatic monthly pay. You should set that up.
So do people in the US actually pay stuff with their card even though they have no money in their bank? I have a credit card but I'd never spend more than I have stored in my bank account. The full credit card spendings at the end of the month will automatically get subtracted from my bank account. It seems so weird to me how normalized it is in the US to just buy stuff even though you have no money.
@@yericapalot6134 That'll depend on the CC company. Usually, if you don't use it for a year they might cancel it, but a lot of companies will never cancel a card.
Sorry for this stupid question but, lets say you dont touch the credit card for a month, do you need to pay more interest or just the monthly/annual fee?
I'm young but I'm trying to learn as much as I can. U said u get a limit to the amount of cash u can borrow right, if say I borrow more than 50 percent of the cash I can get each month but I pay it off before the due date, does that have a negative impact ? Cuz I thought about just borrowing cash each month but only what I know I can pay back before the month ends and carry up my credit score really fast or is that not how it's done ?
i’m wondering this too! if i use my credit card for a purchase online, and immediately make a payment to the credit account, how does that look? edit: i looked it up and it doesn’t really matter as long as you aren’t late on the payment
@@jamielynn1210 its been three weeks and ive still not gotten a reply sooo IDK?? not sure if where you are you have a Teachers Credit Union like we do here in Tulsa OK but I just started building credit and put $250 in the bank and got a loan against it to pay back within 6 months and instead of using the money, I put that $250 in another account and set it up to auto pay back the monthly fee each month for 6 months on the loan until paid off and than my $250 became free again and in just six months I had gone from no credit to a 600 credit score. It peaked at 640 a few months back but because of lack of activity it dropped so apparently you have to keep using and replenishing, using and replenishing, or it drops this whole credit thing is gay! anyways best of luck Gurl pete
@@omarbermejo3294Lets say I had a credit card that started off with $0 balance. If I bought something for $10, I would wait a day or two to see that $10 show up on my current balance. Because if I tried to pay it down on the same day I bought it, it might still show up as $0 and they wont let me make any payments until that $10 shows up.
Parent haven’t taught me anything about money , I have a credit card but my mum manages it… I have less than a year to move out due to personal reasons with them and now at the age of 17 I’m having to learn stuff they should’ve taught me as parents
When you get a card, on the account page with the CC company there will be a option to add your bank account details. From there you can either login every month and pay manually, or setup automatic payments.
How does the payment is structured? You pay off the amount you spend or the credit card company determines the amount you should pay every month? Thanks for your input
@@SniperinShadow Just only the statement balance? Question, so if my CC limit is £1000, and so I only spent max £100 in one month. How much do I pay back before the period end? - The full £100 or say £90?
You ideally want to pay off the ENTIRE outstanding balance on your card or as much as possible. If you spent $100 and can't pay back $100, try to pay $70 or $80. Credit card companies will offer you a very low monthly payment, such as only $15 per month, but that's because they want you to carry a balance that will accrue interest.
I know how it doesn't wrk....I bout an item 3 times on transaction cuz it was on sale 80% discount....then they shut down my use of access until I send an id of me....cuz of security....yet they call my same number asking for monthly payments....well logic says if it ain't me...then they shouldn't call my number asking for payments....I'm soooo letting it go to collection ...cuz it's a broken policy....that holds no water..r logic n it....
There are a few cards that charge annual fee which is listed in the Terms and Conditions, but with the vast majority of cards, there are no fees if you are not using them.
No, their are no maintenence charges. That's why you have to keep them active. Buy gas, soda, chips, food, pay it back so they don't close it. Do it every 6 months to a year.
I’m out of my home country and security team of my bank keeps cancelling my debit, even though I’ve told them countless times my travel specifics. so I was thinking about getting a credit card and only using it in emergencies(when my debit won’t work) Good idea or no?
No you don't. There are some cards that will charge an annual fee just for having the card, and that's listed in the Terms & Conditions before you apply for the card.
does the bill automatically get charged or do i have to make sure to do it manually somehow? also, how do i pay off what i spend before the period where i have to? if anyone can help me out thanks
Your credit card won't automatically get paid off unless you've set up a recurring or minimum payment within the system. The payment due dates should be clearly outlined, either online or on the paper credit card statements you receive. Does that answer your questions?
On the account page with your CC company, there will be a link to add your bank account info (routing and checking account info), which is usually listed in your checkbook or your bank's account page.
Nothing. There's a small chance that if you don't use a card for a long time (more than a year), the card company might call and ask that you cancel the card, but it's not common.
Wrong banks are in the business of purchasing securities not lending money. The bank is just lending your credit back to you in the form of a loan. They use your application to apply for your credit on your behalf from the Fed based on your Social Security Number Account and notes are issued ie. Securities
But the problem is when you start a credit card , you put money already in the card , isn’t that your own money and not the banks money , so therefore why do I owe them money for spending my own money , I’m still confused on this part can someone explain to me please 🙏
I think you're talking about a secure credit card. Secure credit cards are backed by money you put down. Once you establish yourself as a credit worthy individual with a secure credit card you then begin to get unsecured offers.
Why is online identify theft even a problem? Can’t it be easily solved by just using ur debit or credit card to buy a gift card? Then spend that gift card online.
Is it recommended for furniture purchases? I have never used a CC before but I recently moved to a new place with no furniture of my own other than a dining table. So I am trying to, slowly but surely start getting the bedroom stuff etc.
Balance on a Debit card means you have money on the account. Balance on a credit card means you owe that amount to the bank. It's the most confusing thing to me. Can a Credit card even have money deposited?
@@Jesus-o7v9x I have an Amex and I have money on it. I'm just treating it like a bank account even though it's a credit card. The whole concept is lost on me. To me it's just money on account. If someone asks me what my balance is I will say how much is on my account and they will be confused and it will be a memorable moment we'll treasure forever.
Read the fine print. Better yet in god we trust. No no better better yet in debt we trust. You can always file BK no worry. Interest, balances, profit it’s all numbers and it’s infinity. Word of the day: Abundance Your wish is my command. You’re now wealthy AF!
Bruh what is the point of credit cards when its the same thing as using cash or debit card? Just so that u can improve credit score? Really?? Dumbest thing ever created and people fall for it
1 month later: I 100% agree with this, however, nowadays, especially in the U.S, credit is very needed. I can have over 100k in my debit, but without any credit, I can't make certain purchases. It's dumb ik.
These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any idea on how to earn better on the short run?
The benefits are the points. I have a credit card that gets me 6% off all grocery purchases, another one that gets me 5% off fuel purchases, 3% off restaurant purchases, etc. You also get fraud protection, and a bunch of other perks.
So basically we should get a credit card and just use 30 percent of it each month and pay it back on time or ahead so we don’t get charged interest and that’ll also improve our credit
@@brandonbaer9552 Give this guy a clap seriously that's super helpful thank you
@@DaPurpleWarrior your welcome
@@brandonbaer9552 h
@@brandonbaer9552 where do I pay it back, with my debit card?
@@brandonbaer9552 I'm even more confused I'm 17 so I'm trying to learn as much as I can, I'm always working to get money to start of on
Again thanks for our school system for not teaching this. Salute sir👏.
Funny enough they do, Most people just choose not to take it! Financial Algebra goes over all of this plus more
@@sleepo5881 not high school sir:(
It's weird cus my last year of high-school there was a optional class that actually taught you this socks it had to be a optional class
@@kurisublu2 For me its mandatory. I'm here for my high school econ class. So, yay, I understand taxes and credit now!
For real
Mom tried so hard to explain this to me, but it did not click whatsoever. Thanks for this video, man.
From 1:06 if you pay back your entire balance before the bill is due, you won't owe any interest BUT if you don't pay back the full balance, the remainder begins to accrue interest...
You know in Kuwait, they have a totally different way of doing credit cards. They just deduct whichever is the highest between minimum charge per month and the percentage of the outstanding amount and then they return back the money into the credit card, which you can use again immediately. You don't incur any penalty. It doesn't end and you don't have to worry about your credit score.
So basically we should get a credit card because it’s better then a debit card but we should treat it like a debit card.
A little bit, yes. But the difference is that by using the credit you can also generate cash back, points, or rewards, as well as improve your credit score.
@@motleyfoolmoney wait so can’t I use the cash I get from the credit card to pay for something then just pay it back with the cash I got from the credit
So yes, exactly what you said
Thank you for the video mane, people like you in this new day age really are the hero’s that don’t wear capes
Hello, I want to start investing, but I'm unsure where to start. Do you have any advice or contacts for assistance?
It's prudent to seek expert advice when creating a solid financial portfolio due to its complexities.
The truth is, you can't succeed without a reliable person like Naomi
Naomi's distinctive strength is her pragmatic approach, setting her apart from other brokers who often set unrealistic goals and fail to deliver
So, you all know her too? Her success story is everywhere!
If someone is straightforward and skilled in their work, people will always recommend them. I appreciate her honesty.
Thanks a lots sir, very informative and straight forward. Have a nice day and be safe
Thank you school for not teaching us these kind of stuff instead teaching us things like philosophy
Hey philopophy is cool 😢
😂😂😂
im guessing the main reasons to use a credit card is because a) some purchases can only be made with a credit card and b) sometimes you wont have money in your bank account because your job hasnt paid you yet so you use your credit card in that moment and pay back that money when you get paid
i only got a credit card cause my dad said having no credit rate is like having a bad one, especially when the time comes to buy a car/house
I mostly use the B option, especially when paying for gas. A coworker told me to only use it if you have to so that you won't have to pay back so much
@@andres.rivera.1821I look at credit cards as reserve. Almost like a rain water container for when times get tough, then use the rain water collected. Another analogy would be a food pantry. You want to stock up on food when it's cheap and then use it when needed. Of course the food will expire so you want to use the food in the pantry and replenish it with food with a more recent expiration date.
So basically when you use your credit card for something, you should pay it back ASAP and then your monthly bill will either be less or none at all?
Yes that’s what I got. So you can use it to build credit with like gas and groceries
So is this summary correct?
So credit card is a safety net between your bank account and the bank you owe the money. You basically spend the banks money and not your own but have to pay it pack on time to avoid interest and earn rewards.
Debit cards instead charge your bank account and are more for reciptable / severe if money is lost there and trying to get it back. So credit card is a safer way of paying.
My brain hurts
dont worry man! mine too. fuck i don't understand these shits.
Means this isn't a good enough video.
No Fr 💀😭 I feel like Patrick star
I got stuck at the APR and it’s the reason why I searched this video. I still don’t get it
@@mr.paralysis9161whats so hard about cc ? Not that hard
I pay everything before my due date is that better then acutely paying when it’s so post to be paid
Sad that I’m just now looking this up at 27 but here we are 😂
Don't worry we are in this together ❤️. Late bloomers shine the brightest
I always waited because I’ve heard so many people going crazy with credits cards so it made me have anxiety.
I just turned 20 and now looking bc I tried to get stuff and was told “you have to buy it in full” 💀
Same here lol
27 year to 😂😂😮
Thanks 4 the informative video! I haven't used any type of credit card yet! So I'm looking for insightful info like yours!
This is why I never even got a credit card. Until I was 30. No debt whatsoever even now. The fact there are confused kids on here is why I never messed with it.
Use it to pay for things you already have money for. Then make sure it’s paid on time. Many cards have automatic monthly pay. You should set that up.
So do people in the US actually pay stuff with their card even though they have no money in their bank? I have a credit card but I'd never spend more than I have stored in my bank account. The full credit card spendings at the end of the month will automatically get subtracted from my bank account. It seems so weird to me how normalized it is in the US to just buy stuff even though you have no money.
The most informative video about this.
Im getting one and I'm going to save up to pay it off however I'll use it for emergencys
I want to start investing but don't know where to begin. Any advice or contacts for help?
It's wise to seek professional guidance when building a strong financial portfolio due to its complexity
Talking to financial advisors like Naomi Dean to reshape your portfolio is a smart move.
Certainly! I diversified my $25k portfolio across different markets.
I made a net profit of around $115k by investing in high dividend yield stocks, ETFs, and equity
That woman is a genius
What happen we have the credit card and we couldn’t use it for few months.. like there is no purchase done… so does that lower the credit score?…
Credit card inactivity, over a long period of time, can result in your card being closed so using it occasionally is recommended.
@@motleyfoolmoney how long til they close the account ?
@@yericapalot6134 That'll depend on the CC company. Usually, if you don't use it for a year they might cancel it, but a lot of companies will never cancel a card.
Sorry for this stupid question but, lets say you dont touch the credit card for a month, do you need to pay more interest or just the monthly/annual fee?
6 million Ugandan dollars
I'm young but I'm trying to learn as much as I can. U said u get a limit to the amount of cash u can borrow right, if say I borrow more than 50 percent of the cash I can get each month but I pay it off before the due date, does that have a negative impact ? Cuz I thought about just borrowing cash each month but only what I know I can pay back before the month ends and carry up my credit score really fast or is that not how it's done ?
What do you mean “50 percent of the cash”?
what if you pay it back a few hours later after you spend the money using the credit card? do you have to wait the whole month to build credit?
i’m wondering this too! if i use my credit card for a purchase online, and immediately make a payment to the credit account, how does that look?
edit: i looked it up and it doesn’t really matter as long as you aren’t late on the payment
@@jamielynn1210 its been three weeks and ive still not gotten a reply sooo IDK?? not sure if where you are you have a Teachers Credit Union like we do here in Tulsa OK
but I just started building credit and put $250 in the bank and got a loan against it to pay back within 6 months and instead of using the money,
I put that $250 in another account and set it up to auto pay back the monthly fee each month for 6 months on the loan until paid off and than my $250 became free again and in just six months I had gone from no credit to a 600 credit score.
It peaked at 640 a few months back but because of lack of activity it dropped so apparently you have to keep using and replenishing, using and replenishing, or it drops this whole credit thing is gay! anyways best of luck Gurl
pete
@@myice-creamdreams3421 thank you kind soul
just got my first credit card n my anxiety is bouncing
😂
Knowledge is power and will counteract your anxiety.
How long should you wait to pay your purchases off. A week ,a month daily can it be paid after the purchase is made?
Repay your purchases as quickly as you'd like - the sooner you pay them off the lower your credit usage will be, which is good for your credit score.
Thank you
So its possible to pay it as soon as you use it?
@@omarbermejo3294Lets say I had a credit card that started off with $0 balance. If I bought something for $10, I would wait a day or two to see that $10 show up on my current balance. Because if I tried to pay it down on the same day I bought it, it might still show up as $0 and they wont let me make any payments until that $10 shows up.
So ideally we have to pay it down as soon as possible we got the bill, if were not able to do that then we need to rethink our urgency of using cc
Very helpful tips!! Just got approved credit card loan 😌😌
Fantastic!
@@motleyfoolmoney proud of myself 💗
Very good guide. Thank you very much ❤😊
Wow this taught me everything i need to know, thanks 👍🏾
Will I still be charged interest if I pay it on the due date? I have auto pay and that’s the only option.
So the accumulative daily balance is only if you don't pay your required monthly balance?
Yes
No it's not they still charge U daily whether U the monthly required or not, they only stop the daily when you pay everything u owe them back
Parent haven’t taught me anything about money , I have a credit card but my mum manages it… I have less than a year to move out due to personal reasons with them and now at the age of 17 I’m having to learn stuff they should’ve taught me as parents
What I don't understand is how do you pay it back. Does it pay itself automatically if u have money in ur bank account or u have to do it manually?
If think you have to pay it manually unless you have automatic payments activated
When you get a card, on the account page with the CC company there will be a option to add your bank account details. From there you can either login every month and pay manually, or setup automatic payments.
How does the payment is structured? You pay off the amount you spend or the credit card company determines the amount you should pay every month? Thanks for your input
You pay off the Statement Balance
@@SniperinShadow Just only the statement balance? Question, so if my CC limit is £1000, and so I only spent max £100 in one month. How much do I pay back before the period end? - The full £100 or say £90?
You ideally want to pay off the ENTIRE outstanding balance on your card or as much as possible. If you spent $100 and can't pay back $100, try to pay $70 or $80. Credit card companies will offer you a very low monthly payment, such as only $15 per month, but that's because they want you to carry a balance that will accrue interest.
@@mi3helle707£100 or as close to £100 as you can. Otherwise they'll charge interest on your unpaid balance.
This helped a lot
Thank you
Really great video 👍
I know how it doesn't wrk....I bout an item 3 times on transaction cuz it was on sale 80% discount....then they shut down my use of access until I send an id of me....cuz of security....yet they call my same number asking for monthly payments....well logic says if it ain't me...then they shouldn't call my number asking for payments....I'm soooo letting it go to collection
...cuz it's a broken policy....that holds no water..r logic n it....
Everything I own is paid for....I can go w/bad credit for 5 to 7 yrs from collection....I'll just be n credit jail for awhile ..
If I had credit card, but I am not using it, is there any maintanence charges will apply?
There are a few cards that charge annual fee which is listed in the Terms and Conditions, but with the vast majority of cards, there are no fees if you are not using them.
No, their are no maintenence charges. That's why you have to keep them active. Buy gas, soda, chips, food, pay it back so they don't close it. Do it every 6 months to a year.
I’m out of my home country and security team of my bank keeps cancelling my debit, even though I’ve told them countless times my travel specifics. so I was thinking about getting a credit card and only using it in emergencies(when my debit won’t work)
Good idea or no?
This seems like a good idea to me. Just be aware of card skimming and things like that
So basically dont spend more than you can afford and pay your bill ahead of time and your golden?
Thaks really great vidm quick and imformative
Do you have to pay a monthly fee just for having the card?
I dont think so
No you don't. There are some cards that will charge an annual fee just for having the card, and that's listed in the Terms & Conditions before you apply for the card.
does the bill automatically get charged or do i have to make sure to do it manually somehow? also, how do i pay off what i spend before the period where i have to? if anyone can help me out thanks
Your credit card won't automatically get paid off unless you've set up a recurring or minimum payment within the system. The payment due dates should be clearly outlined, either online or on the paper credit card statements you receive. Does that answer your questions?
what if you don’t use the credit card??
I just want to build my credit I don’t know how to start
When I make a first purchase, do I have 30 days from the time I used the card or do I have until the end of the calendar month I am currently in?
Your credit card will have a payment schedule but that varies by card; if you log into your account you should see payment due dates.
And how do I pay to those credit cards? Via debit card?
On the account page with your CC company, there will be a link to add your bank account info (routing and checking account info), which is usually listed in your checkbook or your bank's account page.
Thanks 🙏🏿
👌👌👌 amazing content
What happens if you spend zero dollars on a credit card?
Nothing. There's a small chance that if you don't use a card for a long time (more than a year), the card company might call and ask that you cancel the card, but it's not common.
Great video thanks for the explanation
Very informative and thorough video!
THANK YOU!!!!!
Wrong banks are in the business of purchasing securities not lending money. The bank is just lending your credit back to you in the form of a loan. They use your application to apply for your credit on your behalf from the Fed based on your Social Security Number Account and notes are issued ie. Securities
So are you saying that a credit card is a treasury security?
Thanks
Thank you!
I’m so dumb this information just go over my heads
I work more and get more done from home because I don’t have a commute or distractions.
who asked?
But the problem is when you start a credit card , you put money already in the card , isn’t that your own money and not the banks money , so therefore why do I owe them money for spending my own money , I’m still confused on this part can someone explain to me please 🙏
I think you're talking about a secure credit card. Secure credit cards are backed by money you put down. Once you establish yourself as a credit worthy individual with a secure credit card you then begin to get unsecured offers.
Great! Thank you.
Why is online identify theft even a problem? Can’t it be easily solved by just using ur debit or credit card to buy a gift card? Then spend that gift card online.
Very useful to see this ads! Thanks
Is it recommended for furniture purchases?
I have never used a CC before but I recently moved to a new place with no furniture of my own other than a dining table. So I am trying to, slowly but surely start getting the bedroom stuff etc.
I have, but paid at least 100 to $200 a month on the card. Sometimes I have been able to pay it off when I can.
wooow.amazing info
Balance on a Debit card means you have money on the account. Balance on a credit card means you owe that amount to the bank.
It's the most confusing thing to me. Can a Credit card even have money deposited?
Yes you can deposit money into a credit card, it's called a payment.
@@Jesus-o7v9x I have an Amex and I have money on it. I'm just treating it like a bank account even though it's a credit card.
The whole concept is lost on me.
To me it's just money on account.
If someone asks me what my balance is I will say how much is on my account and they will be confused and it will be a memorable moment we'll treasure forever.
"An honest man is one who knows that he can't consume more than he has produced."
Ayn Rand
This is need to be thaught at school
Wait a second... So I borrow my own money to pay back my own money... I don't understand this shi
That’s just how the US works or it in general just to show your responsible
Agreee
How can you check your APR?
If you have an online account it should show it somewhere in there
Very good to
Read the fine print. Better yet in god we trust. No no better better yet in debt we trust.
You can always file BK no worry. Interest, balances, profit it’s all numbers and it’s infinity.
Word of the day: Abundance
Your wish is my command. You’re now wealthy AF!
well I fucked up this month lol
Damm I should have waited to buy this ps5 smh 🤦🏾♂️ I swear my dad was right I gotta make smarter choices on what I really need and don’t need.
HUH?
Bruh what is the point of credit cards when its the same thing as using cash or debit card? Just so that u can improve credit score? Really?? Dumbest thing ever created and people fall for it
1 month later: I 100% agree with this, however, nowadays, especially in the U.S, credit is very needed. I can have over 100k in my debit, but without any credit, I can't make certain purchases. It's dumb ik.
To build credit to buy a house won't ever be able to buy a house without it...
@@StevenVasquez-v2nyou can’t even buy a house today with how the market is and inflation
it’s just not as beneficial anymore.
These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any idea on how to earn better on the short run?
As a european, i dont understand creditcards. The way the banks work here, work just fine tbh. I dont see the benefit of a creditcard
The benefits are the points. I have a credit card that gets me 6% off all grocery purchases, another one that gets me 5% off fuel purchases, 3% off restaurant purchases, etc. You also get fraud protection, and a bunch of other perks.
@@basedbulgarian511 i see :)
H
Cash Choubey
47190 Hyatt Ridges
Thank you!
Thanks