Are you young?
Do you want to improve or establish your credit score?
Here is how I joined the 800 club in my 20s & how you can too.
Credit score is used for pretty much everything max here, and today I'm going to go over ways that I was able to get the coveted 800 score and a simple way that you can do exactly what I did. So you too. Can get the apartment, the loan or whatever, maybe just brag to your significant other. Here are the ways to get to a high credit score starting.
Now, the first thing, everyone, everyone, everyone, everyone must do is get educated. You're doing a good thing by watching these YouTube videos, but I'm only one perspective. You want a diversity of opinions, diversity of thoughts from many, many different sources. So don't just take my word for it too.
Plenty of other personal finance research. So watch YouTube videos, read books, listen to audio books. There are so many good resources out there for free and do your best to pace yourself. Don't read a hundred blog posts in one day. You will be overwhelmed and you'll retain about 3% of it. Take it in chunks.
Have a little bit every single day. Cause like exercise. You can't go 10 years without exercising. And run a marathon one day and expect to be in good shape. So little chunks every single day to start beginning your process of understanding finances. Cause believe me, there's a lot that I don't know. I don't know about 99.9%.
I know about 0.1%, a tiny, tiny fraction. So you can always learn, start early 18 years old credit card. Why, why. Why? Well, because that's how you get to 800 in your twenties. 18. It's pretty close to twenties. So you have to start early. Now that could be a very, very, very introductory card with a very teeny tiny limit, a couple hundred dollars maybe.
And that is the start. Cause if you don't start early, you're going to be 30 years old with no credit and good luck renting a house, buying a house or buying a car on credit. It won't happen. And before you even get the first credit card, which has shows to step back is if you're not disciplined and you can't find a way to become disciplined with money, don't apply for anything.
You must become disciplined. And it takes work because marketing and every single newsletter you're getting your email wants you to buy something today. FOMO, you were going to miss out. If you don't get in on this sale right now. And that's how marketers hack your brain to buy their product. So if anything I do is unsubscribed from every single newsletter.
That's trying to sell me something unless I'm actually planning to make a purchase. So every single clothing outlet I've ever subscribed to is now unsubscribed. I know I'm sad about it. But not really because I'm now pursuing the goal that I want, which is a little more financial freedom. And to begin to be honest, I have enough clothing for me, myself and I for the next 10 years.
And that discipline takes time. Don't expect yourself to be a superhero and finance after reading seven blogs in seven days, it's theirs. There is no get rich quick scheme period. Period. So be disciplined and be diligent in your research and understanding more and more, but you got to start early. So you get the first credit card ASAP.
What I did for my younger brother is I actually put him on as a authorized user on some of my accounts. So it doesn't quite bump you as much as it can, if your primary user actually go in the responsible. But if you can be added as an authorized user to someone, your parents, most likely your parents.
Your grandparents, whoever it is some person who has a very big credit, good credit score, they can add you as an authorized user on the credit card. You don't even need the card. It just helps starting to build that credit profile. Always pay the balance off in full, no matter. What don't keep 30%. Don't keep 20%.
Don't take 10%, keep 0%. You want to use these credit cards simply to build credit so you can get to the 800. At some point it takes time. It takes diligence. It takes many, many months of this, so it's not going to happen quickly, but no matter what, whether you put $10 off a hundred or 10,000 paid off at the end of every single month, paying bills has never been easier.
I have every single credit card. Which was almost 20 now a lot. It's a lot, every single credit card is on autopay, which means I don't have to think about it. It is paid no writing tricks and no paying manually. My time is way too important and way too sweet to be spending on a website. That's trying to sell me yet another financial product.
Again, going back to the I'm subscribed. Don't do it. Make your life easier. Set everything up on auto pay through your checking account. I promise you this will save hours every month just by itself. Alright, so you were approved for your first credit card. That is awesome. You will begin receiving all of these mail offers.
Yes. Physical mail to your address. Four different credit cards. I've had many over the years and most of them go on the shredder cause I don't need anymore. Period, except every single one, because you're more likely to be approved if they sent you an invitation letter, all the ones that have a 0% annual fee repeat 0% annual fee, don't do any of those annual fee things yet, maybe when you're on the upper echelon of society and you need the American express.
Centurion black card because you travel 300 days out of the year, but that's a different future that doesn't exist right now. So 0% annual fee and not the introductory $0 million. Some people say, or some credit cards are 0% for the first year, zero, zero, no annual fee for the first year. Then it goes up to a hundred dollars.
Don't fall for that. Just. Find out the ones that have the zero annual fee, no matter what, for every single card put a small recurring bill, one of my cards has Spotify. The other one has my Google account for the business. There are many different things that you can put that are very, very small. So add each one to the cards and having auto pay.
So you don't even see it. You just see the $10 going out of your checking account each month, which is no big deal, but you want to do this because. Whether it be $10 or a hundred or a hundred thousand, they'd show us as a paid bill on time. Green little check Mark. My favorite little check Mark. And the more check marks you have.
The higher your score goes. And then lastly, the one I actually just implemented more so recently, probably the last year or so is don't use them in the day today. Yes. People are going to say, but what about the rewards? The one to 5%? Well, there are many studies done that show that people who use credit cards are far more likely to spend more money than they had planned.
And that's the whole idea. Have a plan and execute it. Credit cards. A lot of times throw people off their plan. I'm not saying you are going to throw off the plan, but I know for me, when I have a credit card, it doesn't feel like real money. It feels like plastic, which is what it is or metal depending upon the card.
And you can spend it so much more quickly. I can. So this morning I had to fill up my truck calf to the person on the front social distancing, of course, but even I'm doing that. Because you don't need to use them on the day to day, the points are not worth it. I know personal finance, people are not going to like that, but it's not, you are more likely to spend money, more money than you had anticipated, which means if you spent 10 extra dollars, the 1%, I'm not a math major, but 1% is not equal to long story short.
You will spend more most likely. So don't use it today. I actually put all my in my safe, so I have to end up the combination just to open them. You don't have to go that extreme, but keep them somewhere safe because you really don't need them on day to day. Well, that's how I made it to 800 or eight. Oh two, I guess.
Now, anyway, some, some of them are seven 98, 808 Oh five. It really doesn't matter. Once you get up to the a hundred. Compared to eight 50, it makes almost no difference. But that being said, what other things are to be accounted for? What other ways have you guys got? Awesome credit score, comment below, make sure to subscribe and like the video.
And I will see you guys on the flip side.