In this video we are talking about building credit. This is actually super important for a lot of different aspects of life! For example, if you want to buy a house or a car and you need to take out a loan, chances are that you will need credit! If you don’t have credit you aren’t able to get a loan for these things, and this could put you in a position where you have to rent or save up for longer to buy something in cash. If you wanted to buy a rental property and rent it out to people, you would need credit in order to get the loan, but if you have credit and it is just bad credit, then you might be able to get a loan, however the loan will probably have a much higher interest rate, which ends up costing you more money. So starting now and building a good foundation for credit is super important and can end up saving you a lot of money in your life and can actually help you get free money! So if you don’t have credit at all then I would recommend getting either a secured credit card or you could open a self lender account. Personally I have done both and I would recommend doing both to people because it will help build your credit more than if you just do one.
I think the best secured credit card for people who are looking to start building credit is the discover it secured card, it is the only secured card that I know of that offers rewards, and you can actually get 2 percent cash back on your first year with this secured card! You can also get 50 dollars as a free credit statement if you apply with the link in the description! The second best secured card to get would be the capital one secured card, this one doesn’t have rewards but it is a good card, and I actually have both of these cards!
Now self lender is a little different it actually isn’t even a credit card it is basically a service that lets you take out a loan, but instead of you getting that money and being able to spend it, self lender holds onto it and you pay it off over the course of a year. After the year is over you have built up some credit and then they give you the money that you have been paying off the loan with back. This is a great option for anyone who needs help saving up more money because you are able to save up money for a year with this service and it also helps your credit!
Now if you are new to credit I am going to give you the rules that I live by to get the best credit score I possibly can!
1. Always pay off your credit card in full at the end of every month! Always!
2. Never miss a payment!
3. Never let your balance on your credit card get higher than 10 percent, if it does get higher then pay some of it off so it is below or closer to 10 percent when your billing statement comes through.
4. Use apps like Credit Karma and Mint.com to help you track your credit and money.
Now if you do all of these things you will build up your credit to a very good place in a matter of months.
Links:
- M1 Finance, This app will help you invest into the stock market as well as index funds, I love this app and if you want $10 free, then sign up using this link:
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- Self lender build your credit score with no hard pulls and no secured cards!
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Ting get cheaper cell service by switching to ting and bring the phone you already use! Use the link below when you sign up and get 25 dollars off your first month!
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- Get a free stock on Robinhood when you sign up using my link!
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