You forgot to teach the end goal of a good credit score: max out every credit card and loan to buy a mansion in Florida and then hide behind the Florida Homestead Law to retire in a property that can't be repossessed.
My husband and I were able to build a great credit score debt free. We got approved for a bank CC first always paid if off every month along with our other bills. We then got other credit cards making sure every couple years we applied for more. We had a credit score that got us the lowest interest rate when we bought our first house. It is our only debt.
@@F_Du_Sea We played the long game. We were married at 18 and 19. Took our first cc out at 20ish. Our second at 23/24ish. Then no more credit cards were opened. It took us thirteen years to save up for our home after school, moves, military service etc. so opening those credit cards years ago had no impact on our credit score when it came to getting a loan. We had a long history of paying our credit cards and not going over that 30% limit. We usually put some small expense such as gas, Netflix etc. on a card and paid it off every month. Treating it like a debit card.
Applying for more I meant we applied to raise our credit limit. For example our first card had a $1k limit. Now that card has a 10k limit. We didn't apply for more cards.
the more I learn about this kind of stuff the more I am convinced my best option is to just not participate. I dont plan to ever finance a car, I will always buy used, and there is zero chance I will ever want to pursue a long term commitment like buying a house or starting a business in this country.
Buying a house as opposed to renting for the rest of your life is a really good idea. If you're renting for more than a thousand a month you might as well go try to find a house.
@@ethanseevers1775 I do want a house, just not in the United States. Credit scores are an American thing, they cease to matter once you leave the country.
Subscribed. Immaculate vibe. Tiny critique: I feel like video ended just a bit flat. I was really enjoying listening to the history of credit and then the videos just stopped. A solid couple closing lines would honestly do this kind of video really good. Again tiny critique but maybe something worth thinking about for your future videos. Can't wait to see more. .
Thank you! And welcome! I completely agree that the video ended too quickly. I felt like I was rambling in the last part of the video and ended up cutting out 2 minutes during the edit. In the future I'm planning to start scripting in a more structured way to hopefully avoid that problem. I'm a college lecturer so rambling off of summarized notes is my bread and butter, but that isn't necessarily the best approach to a TH-cam video. lol
I dont really understand this CUR because some people say use whatever as long as you pay it on time, and others practically tell me to not use my card, that I also need to still use to build credit
The idea that you need to use a credit card every month and then immediately pay it off has more to do with psychology than it has to do with your credit score. Credit companies will send a "snapshot" of your credit usage to credit raters at some random point throughout the month. That snapshot then determines your Credit Utilization Ratio. If you're the person who uses a credit card and then immediately pays it off, there's a decent chance that your CUR will end up being 0%. (Which doesn't hurt your score at all. It just doesn't help.) That said, using a card and paying it off immediately will still give you a positive payment history and will add to the length of time that you've been using credit. Both things which do add to your score. So all of these people are "right" in a sense. They just don't necessarily know why what they're doing is working. It's correct, just not """optimized""" around how credit scores truly work.
@@UrgentlyFiring thank you! I’ve heard some people mentioning making a payment before your statement to keep your CUR within the 10-30% that they suggest is this true?
No you don't need to play the credit card game anyway. I haven't had a credit card in over 5 years. Its much worse than what you said. They run around 10,000 experiments a year to get more consumers to change their habits and borrow more money. I have more money than I have ever had or thought I could have. Just by paying off all my debts and living debt free. I've never had so much freedom and options in life. I'm not a millionaire but I will be at this rate since I have more money to invest and save every month.
As a person that is black, i don't believe credit was designed for us to succeed at it all. I have a degree with no student loan, a car with no car payment, and I rent a cheap apartment that is 16% of my monthly income. Debt free is freedom.
As a person that is white I totally agree with you. I have two credit cards that I pay off almost as soon as I use them. They're both low limit cards that I don't intend to abuse.
The only thing I would say to your point is that unfortunately it seems you have to have credit to do anything. I'm in the process of buying a house and since I've never had any loans or any borrowed money I had no credit. I am on a credit building journey.
@@ethanseevers1775 I have gone through the process of owning property with no credit score. I went through manual underwriting to purchase a rental property that pays me passive income. After co-signing on a car, which turned a family member into my current worst enemy, I have zero desire to ever borrow money regardless of the reason. I wish you well on your credit building journey, and I hope you gain great wealth. I’m going on my 7th consecutive year with a 0 credit score.
You forgot to teach the end goal of a good credit score: max out every credit card and loan to buy a mansion in Florida and then hide behind the Florida Homestead Law to retire in a property that can't be repossessed.
Don't worry, that'll be in part 2!
@@UrgentlyFiring haha urgently waiting!
My husband and I were able to build a great credit score debt free. We got approved for a bank CC first always paid if off every month along with our other bills. We then got other credit cards making sure every couple years we applied for more. We had a credit score that got us the lowest interest rate when we bought our first house. It is our only debt.
I thought taking out credit cards lowers credit score? Usually by 100-150 points, no?
@@F_Du_Sea We played the long game. We were married at 18 and 19. Took our first cc out at 20ish. Our second at 23/24ish. Then no more credit cards were opened. It took us thirteen years to save up for our home after school, moves, military service etc. so opening those credit cards years ago had no impact on our credit score when it came to getting a loan. We had a long history of paying our credit cards and not going over that 30% limit. We usually put some small expense such as gas, Netflix etc. on a card and paid it off every month. Treating it like a debit card.
Applying for more I meant we applied to raise our credit limit. For example our first card had a $1k limit. Now that card has a 10k limit. We didn't apply for more cards.
the more I learn about this kind of stuff the more I am convinced my best option is to just not participate. I dont plan to ever finance a car, I will always buy used, and there is zero chance I will ever want to pursue a long term commitment like buying a house or starting a business in this country.
That is the best option. I don't have a credit score either.
Buying a house as opposed to renting for the rest of your life is a really good idea. If you're renting for more than a thousand a month you might as well go try to find a house.
@@ethanseevers1775 I do want a house, just not in the United States. Credit scores are an American thing, they cease to matter once you leave the country.
Thanks for the history segment!
Love the script. Cohesive and captivating thank you for informing me 👍🏼
this is really great content, keep it up!
Thank you!
Dude, just saw your linkedin premium video, really funny lmao.. Keep going!
Thank you so much!
Quality is great! Keep it up and its gonna sky rockets exponentially
That means a lot - thank you!
Subscribed. Immaculate vibe. Tiny critique: I feel like video ended just a bit flat. I was really enjoying listening to the history of credit and then the videos just stopped. A solid couple closing lines would honestly do this kind of video really good. Again tiny critique but maybe something worth thinking about for your future videos. Can't wait to see more.
.
Thank you! And welcome!
I completely agree that the video ended too quickly. I felt like I was rambling in the last part of the video and ended up cutting out 2 minutes during the edit. In the future I'm planning to start scripting in a more structured way to hopefully avoid that problem. I'm a college lecturer so rambling off of summarized notes is my bread and butter, but that isn't necessarily the best approach to a TH-cam video. lol
I dont really understand this CUR because some people say use whatever as long as you pay it on time, and others practically tell me to not use my card, that I also need to still use to build credit
Im fortunate enough to be in a situation and mindset that will allow me to avoid debt however I wish people weren’t so flippy floppy about the subject
The idea that you need to use a credit card every month and then immediately pay it off has more to do with psychology than it has to do with your credit score.
Credit companies will send a "snapshot" of your credit usage to credit raters at some random point throughout the month. That snapshot then determines your Credit Utilization Ratio.
If you're the person who uses a credit card and then immediately pays it off, there's a decent chance that your CUR will end up being 0%.
(Which doesn't hurt your score at all. It just doesn't help.)
That said, using a card and paying it off immediately will still give you a positive payment history and will add to the length of time that you've been using credit. Both things which do add to your score.
So all of these people are "right" in a sense. They just don't necessarily know why what they're doing is working. It's correct, just not """optimized""" around how credit scores truly work.
@@UrgentlyFiring thank you! I’ve heard some people mentioning making a payment before your statement to keep your CUR within the 10-30% that they suggest is this true?
@@junyaiwase To my understanding, yes! Credit isn't entirely in my wheelhouse as an economist, but that's my understanding of it.
No you don't need to play the credit card game anyway. I haven't had a credit card in over 5 years. Its much worse than what you said. They run around 10,000 experiments a year to get more consumers to change their habits and borrow more money. I have more money than I have ever had or thought I could have. Just by paying off all my debts and living debt free. I've never had so much freedom and options in life. I'm not a millionaire but I will be at this rate since I have more money to invest and save every month.
Say what you will about Dave Ramsey, but there is a reason why he calls that dumb and cash king.
As a person that is black, i don't believe credit was designed for us to succeed at it all. I have a degree with no student loan, a car with no car payment, and I rent a cheap apartment that is 16% of my monthly income. Debt free is freedom.
As a person that is white I totally agree with you. I have two credit cards that I pay off almost as soon as I use them. They're both low limit cards that I don't intend to abuse.
The only thing I would say to your point is that unfortunately it seems you have to have credit to do anything. I'm in the process of buying a house and since I've never had any loans or any borrowed money I had no credit. I am on a credit building journey.
@@ethanseevers1775 I have gone through the process of owning property with no credit score. I went through manual underwriting to purchase a rental property that pays me passive income. After co-signing on a car, which turned a family member into my current worst enemy, I have zero desire to ever borrow money regardless of the reason. I wish you well on your credit building journey, and I hope you gain great wealth. I’m going on my 7th consecutive year with a 0 credit score.
Your cat knows better ))
cat in background
Haha I should timestamp it at 1:30