GMC PT.2
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you know the vibes y'all motivate me. So it's only right to motivate to today. I'm gonna be giving you all a part two on credit. So I hope you already, let's go. Let's get it Lift off when the clock has started. Roger zero J. and I feel fine t minus 15 seconds guidance is internal 12 11 10 9 ignition sequence. Start 654321 lift off we have a liftoff. I believe you can do whatever you set your mind to. You just gotta do two things you would you stay visionary and lock in your yeah you gotta take a chance to life man, can't play it safe y'all you gotta jump, you gotta go for. I'm gonna show you how great I am. Yeah good morning, good afternoon, good evening it no matter what time of day it is because an honor to have you tuned in and listening to the our your motivation podcast. So I decided to do give me credit part two because I felt that in a way of my explanation I probably could have confused some people as far as breaking down the aspects of credit the factors and all that good stuff. So I'm gonna just go for those again briefly and also put you all on some credit card to Chaka start out with. So these are the five factors That make up your overall credit score 100%. So you got your on time payment history. Credit utilization, your length of credit history, the total number of credit lines and your number of credit inquiries. So first and foremost You're on time payment history that makes up 35 pay your bills on time. You know one way to avoid from not paying. Well one way to make sure that you pay on time every time when it comes to credit cards and just whatever you spend just pay that in full every single time. You know don't don't let interest build up on you or any of that. I mean at the least you can pay your minimum but people usually get in debt when they just focus on the minimum rather than paying the full balance. So just pay your balance off in full every time. So you're on time payment history makes up 35% of the score. Remember that 2nd you got your credit utilization That makes up 30 and that's just how much, how frequent you're using your credit card. So you just want to monitor how much you're using that. Um And I'll as I get to this other um as I get to one of the other factors I explain a strategic way To avoid from hitting that 30%. Alright 3rd your length of credit history That makes up 15%. Your length of credit history is based on your average length of credit history. So how long you've had credit established. So basically if you were to close an account then that would reduce your credit score. So if you can whatever card that you get try to keep it open as long as possible because that's gonna lengthen your average length of credit history so long you have your credit accounts open the better because that's going to help your average length of credit history, fourth your total number of credit lines. So that's just how many credit lines you have available to you. So like I said I was gonna hit on a strategic method on how to Avoid hitting that 30% mark as fast. Um so when it comes to your total number of credit lines, the more credit you have available, your overall credit that keeps you from hearing at 30% credit utilization mark. So Having much because you have like say the more the better. So if you have multiple credit cards with high credit limits data keep you from hitting that 30% mark. So you can spend more if you want to but you just have to stay disciplined and mindful of the other factors which is your on time payment history and all that good stuff. So Just be mindful of that and that's 10 And then 5th on the list you got your number of credit inquiries and that's just any hard inquiry that is done when you go to apply for whatever you're applying for a new credit or loan or whatever the case may be. Um you just want to make sure you're not continuously or frequently applying for new credit cards or loans because that's gonna make you look like a risky bar and when you look like a risky bar or people are going to be less willing to lend you money or approve loans and different things like that. So you just want to be mindful of that that you're not just applying, applying applying because they're gonna look at you as a risky bar and you don't want to be listed as a risky bar. All right so like I said man I'm gonna put you out on a few beginning credit cards. Um I'm sure as most of you can realize I am a beginner myself. Um They say credit score ain't ain't too bad but we're gonna build and get out of credit right together. So you know So the first one I got on the list man this this is a good one. Well at least I think so because the way that is established I mean you really can't lose. You got the chime credit builder card. Now this is a secured credit card with no interest or annual fees and there is no credit check to apply. So you don't even have to worry about any hard inquiries as I was just mentioning being hit or showing up on your credit report because they don't care there is no minimum security deposit required. So however much you put on your time credit building card that's how much is on there and it's kind of like it pays itself because they have this thing called safer credit building. So basically whatever you have in your account that pays your balance and they don't have any fees. So it's just like all the all the reporting is your on time payment history. So as long as you have some money in that account you're good. No worries. And a statistic that I got down is on average users increased their score by 30 points with regular on time payments within six months. So as long as you have that safer credit building feature turned on your good. Now normal credit card do not operate like this. You got to pay your own bills and be on top of you know your stuff but you ain't got to worry about that with time because they're gonna get you right. So starting out it's good but you be mindful that once you get in the real credit game it's not gonna work like that. But it is good to start out with because anybody can apply as long as they have a time a time account. Second on the list. We got discovered it they discovered it secured credit card on this credit card. There are no annual fees. Uh for this credit card you need to put down the minimum security deposit of $200. Uh you can put up to 2500 but it's all up to you with this card, you can earn 2% cash back at gas stations and restaurants on up to $1000 each quarter. So every three months You get unlimited 1% cash back on all other purchases besides gas stations and restaurants. And this credit card has an annual percentage rate Of 22.99%. So we'll say 23%. So you start with the secure credit card and after eight months uh discover they will review your account, see if everything is in good standing. And then you will progressively graduate to unsecured credit card. So you have a higher credit limit and you'll get that money back um which you put down as collateral when you first established that secure credit account. Um Next on the list. Um This is more so for or the military folks um or just navy federal account holders. But we got the navy federal in reward secured credit card. So with this credit card there are no annual balance transfer, foreign transaction or cash advance fees. The minimum deposit you gotta put down is 200. And it's basically built on the same process as discovered it. But even faster um You get one point for every dollar you spend. So they're gonna match you on that As an annual percentage rate of 18%. Um After three months you could be eligible for an upgrade on your credit limit. So they're going to reveal account just like I said uh discovery it will see if everything is in good standing. And then they're gonna actually, if you want to increase and every time they actually if you want to increase just get it and they don't necessarily mean you got to spend all your money because you got an increase that's just going to help you because if you are using your credit card frequently, like I mentioned earlier, That's going to keep you from hitting that 30% credit utilization. So to hire your credit limits is on whatever card you have Or whatever card you get, try to get the highest credit limit you can because that's going to keep you from hitting that 30% mark. So yeah, three months you could be able to form upgrade on your credit limit. Then at six months they'll come back and reveal account again and review it just to see if you qualify for cash rewards. Unsecured credit card or whatever other unsecured credit card that you may be interested in. And as a bonus, I just put this one down here. This really this really strictly for the military folks. And this is uh the military Star card and this is an unsecured credit card. There are no late annual or over limit fees has an angry percentage rate of 10.24%. And then with this car is really budget friendly. So whatever your budget is, you can break down your payments on 36 months, 48 months or 60 months, you know what I'm saying, basis on however you want to do it. You know what I'm saying? So have you want to establish your payments on whatever you may purchase? You can do that. So it's real, it's real clutch And like I said 80% is raised 10.24%, which is very very low. Um They have a lot of promotions and then they also be having other things like a first day purchase discount. So they'll take like probably 100 and something off depending on what you're purchasing, whatever the promotion maybe. But they're definitely so some love to you. And then in addition to that credit limit, You get $1,000 military clothing line. All right. So that's all I got for you today, man. Um I guess I just briefly went over the five factors that make over your overall credit score. Put you out on a few beginning credit cards to start out with to get your credit established. So hopefully helped you out. You'll start being all credit man, because we are gonna be great together of course as I'm learning the game, I'm gonna put you out on game, you know, we're family. So we're gonna get together that being said, just know these two words right here. Stay vision there. Mhm. Hey, good people. If I motivated you in today's episode, it's only right to motivate me too. So make sure you subscribe and leave a review. Remember? Stay visionary. Mhm. Mission completed.