Today let's talk credit and how to build up your credit score if you're someone who has less than stellar credit.
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00:00 - Intro
What's up you guys! Today, I want to talk about credit and the applicable steps you can take to raise your credit score!
01:31 - Why is Credit Important?
Credit scores are (in my opinion) one of the most important aspects of your life ESPECIALLY when you can use credit as a way to grow your wealth when you are young. With credit, you can do things like start a business, invest, buy a house...etc. So, if you screw up your credit at a young age, it can really jeopardize this.
01:40 - My History with Credit
I have spent my career with a very odd credit experience. I was fortunate to grow my credit early and as a result, I had a near 800 score when I was in my late teens and early 20's. But, a few years later I had a business close and as a result, my credit went down...bad. But over the years I have been taking actional steps to improve my credit and as a result, my credit has grown by 250 points in about 2.5 years.
03:38 - Take Inventory of Your Debt
The first step of improving your credit situation is addressing any outstanding debt issues, but before you can do that you need to figure out what debt you have. That brings us to step #1 - in this step I want you to thoughtfully sit down and figure out who you have debt with, how much it is for, and what the repercussions of that debt are.
04:23 - Prioritize Your Debt
Next, you need to prioritize your debt. What needs to be paid first? The reality is, not all debts are created equal, and sometimes you may need to pay off some debt before others.
05:12 - Who Needs to Be Paid Back?
Next is to figure out who you need to pay back, depending on the circumstance some debt may be a wash, others will need to be paid.
06:14 - Debt Lawsuit
Next, you need to understand that a lawsuit being filed against you IS a possibility especially if you have a lot of credit card debt that you don't have the ability to pay back. Understanding that this is a possibility and having a game plan in place in case this does happen is very important.
09:37 - Now Let's Improve Your Score
Now that you have addressed the pressing issues surrounding outstanding debt, now let's work towards growing your credit score.
10:18 - Use Cash For Everything
The first step is to be patient, and understand that you will most likely have to spend a long time paying cash for everything. When the wounds of your debt are still fresh, no one is going to improve you for a credit card. So you will have no other option but to use cash.
11:10 - Time to Get a Secured Credit Card
But, eventually, time will pass and your debt issues will be less fresh and once this happens you will be in a position to apply for a secured credit card. This is the best route to go down if you are someone wanting to rebuild your credit.
12:45 - Authorized User
In addition to getting a secured credit card, also asking a loved one to add you as an authorized user to their credit cards can do wonders to your score.
13:53 - Use Your Credit Card
Once you get your secured card, use it! Make sure to use the card often - just be sure to ALWAYS pay off the card in full every single month.
15:30 - Closing
As always, I hope you enjoyed this video! Make sure to smash the like button, subscribe button, and hit the notification bell and I will see you in the next one.
Disclaimer:
I am not a CPA, attorney, lender, or financial advisor. The content in these videos should not be construed as tax, legal, or financial advice...etc, and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a YouTube video for entertainment purposes ONLY.
#CreditScore #SecuredCreditCard #800
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