FREE Credit Card For Beginners Course 2021 | EVERYTHING You Need To Know

yo what is going on you guys welcome back to another video if you're watching this now and you're a beginner or you don't know too much about credit cards this video is perfect for you if you're starting out as a noob or a beginner that's completely okay because i'm gonna take you in your little infant stage all the way into an expert now before we get started with this video i do need to say if you guys want to get all of the value from this you need to go ahead and paypal or venmo me two thousand dollars right now this is really valuable information and i'm not gonna get started until you guys do that one hour later just kidding that is not me and we're not doing any of that this video is completely free of charge most quote unquote gurus will charge you thousands and thousands of dollars for all the information that i put together in this video like i said it has taken me multiple years in order to learn everything i did and i am going to compile this all into this jam-packed video right here so i will declare this right now the most valuable video that you can watch in personal finance and credit cards and on youtube make sure you guys watch the whole thing because by the time you are finished watching this video not only will you have all this new information and knowledge in order to make more money but you will also get a couple free gifts i got some free gifts for you guys towards the end of the video we'll be talking about that as well but if you are new to the channel my name is brian thank you all so much for joining i have this dope presentation uh powerpoint slide that i've been making for the past five days that is finally ready so i can make this video and start teaching you guys so if you are new welcome let's get started alrighty guys so this is the ultimate credit card guide on youtube like i said it's completely free i highly recommend you guys to take some notes try to be in distracted a free area or maybe if you're driving in a car that's completely fine too oh my gosh my mic just fell technical difficulties hold on ladies and gents i'm glad this happened now before we okay i think we're good oh my bad y'all already guys like i said earlier this is going to be the ultimate credit card guide on youtube if you're in distract to free area make sure that you get away from that very important video i encourage you guys to take some notes have a little bit of mineral water next to you i got that topo chico if you all know what i mean ah all right let's get started all right so introduction who am i and why should you listen to me this is me right here all right guys so just to introduce myself my name is brian i have over 250 000 subscribers on youtube the reason why that's significant is because a majority of those subscribers came from me posting credit card content for the past two years i've helped hundreds of thousands if not millions of people educating themselves in the world of credit cards and finance so my subscriber count is kind of like the social proof that i have with the amount of people that i've influenced if you don't trust me you can just go on my youtube channel and click through some of my older videos to see what i am talking about i'm also the founder of tcs it's a facebook group we have almost 30 000 members on there and i have 15 plus credit cards myself and i've accrued well over a million points in under two years right now i do believe about 1.5 maybe close to 2 million points and next slide i was a speaker for a conference it's known as finance buzz if you all click on some of these links you'll be able to see what i'm talking about just so you guys have proof of who i am i think it's always important to know exactly who your teacher or educator is i have been featured in forbes consumer affairs wwd and cnbc just click on any of these it'll take you to my website and you can go ahead and see exactly what i'm talking about right there one last thing i did do an interview for a netflix documentary show it is actually pretty popular uh but because they have not been released yet i can't say exactly what the name of it is i mean instagram post uh saying um i was in it and they emailed me telling me like i can't be doing that right now until the episode comes out but that's just like another bit of social proof in this space just for you guys when that episode comes out i will be posting it over on my instagram so go follow me there and i might do like a whole episode of me like reacting to my scene in that documentary all right so we have some free gifts and resources that you guys can check out as well we have the facebook community like i mentioned a little earlier in this video we also have the discord it is completely free to join if you guys click on the presentation it'll actually give you the direct link in order to sign up for what i am talking about i will have the download link for the ultimate guide complete for free link down below in the description so if you want to follow along or you want to share this presentation with someone else you can go ahead and do that and follow along or you can just simply just watch this youtube video everything will also be linked down below in the description alongside free money stocks credit card referral links they support my channel as well they're at no cost to you if you don't use those links it's completely completely okay if you want to take your friend or your sister's referral link for some of these credit cards i actually recommend you guys to do that go ahead and help out your family member but if you want to support this channel and you don't have any family members or friends that have some of these credit cards where you can use links for you can actually go ahead and click on some of these to use mine so right here if we click on my top 10 credit card list it'll actually give you the list of my favorite credit cards the ones that i personally use and it'll also take you to some additional links so i have random stuff in here acorns ebates uh 250 dollars in bitcoin with block buy two free stocks with weibull so all of this link down below in the description if you guys want to support the channel okay i do have to mention we do have an advertiser's disclosure just to let you guys know just to be transparent they do give me a small commission you don't have to use it if you don't want to okay so for this video here's the outline on what we're going to talk about so first we're going to be talking and discussing the benefits of credit cards and why it's so important number two we're going to talk about the do not rules of credit number three we're going to be just going over how you can get started number four before we even talk about which credit cards are the best we have to understand the basics of credit because it's it goes a lot further than you actually would think we're going to talk about why credit is a lot better than debit i know i have a lot of beginners out here who are probably transitioning over from a debit card so we're just going to be covering all of our basics and make sure that you at least know the proper fundamentals before we get into some of the harder things we're going to get into credit score 101 it's incredibly important to know exactly what makes up your credit score if you ever want to get a house if you ever want to finance that dope whip okay you're going to need to know exactly what makes up your credit score number seven most importantly we're going to talk about how to make money with credit cards there's no point in getting these cards if you're not going to make money if you're not going to benefit from them so we're definitely going to be going over that number eight we're going to be going over the multi-tier credit card system this is something i personally made okay this is all things that took me a very long time in order to figure out the pros and cons so i can give you guys the best amount of information on top of that we have the god tier credit cards some of the cards that i think everyone needs to add into their wallet we'll talk about number 10 how to apply for your first credit card number 11 credit card sequence roadmap so which credit card you should apply for what you should get after that number 12 unlocking your card's full potential no point in getting these cards getting approved having the best ones if you don't know how to unlock the full potential we're also going to be talking about point redemption that is another important aspect if you want to fly for free if you want to travel the world whatever benefit you're looking for it really starts with knowing how to redeem those points and then number 14 be a paladin i hope i spelled that right right there but being a paladin just means you're wise you know exactly what to do next and you're just smarter than you were before all right guys so we are now in the next slide and this is benefits of credit cards to start out number one with convenience very easy credit cards are just simply a lot easier and more convenient to use than if you're using cash or even a debit card which comes with a lot of compromises if you aren't liquid if your paycheck isn't rolling in and you have a debit card in your wallet and you might go negative on a large purchase credit cards don't give you that type of limitations they do come with credit limits which we will discuss later on in this video but they are just way more convenient in terms of trying to pay for different items number two security if you lose your wallet if someone pickpockets you and you only had a debit card in there and that was access to your main checking account you have pretty much lost that money okay if someone pickpockets you and you have credit cards in there that money that they take or that those charges that they rack up they all go into pending charges that the credit card issuers at this at an instant moment they will go ahead and make sure that those charges are canceled it's not your money when you have a credit card it's the bank's money they're gonna do everything they can in order to make sure that they are not losing losing out on money uh to a lot of the scammers or pickpocketers or whatever the case may be so you actually have a lot more security a whole new layer compared to if you're using cash which is gone or debit cards which is pretty much gone as well credit cards if you lose it you can just cancel it you can lock that card there's a lot you can do if you happen to ever lose your wallet now credit cards also come with free money free travel free food it's all just free stuff so free money comes in many different ways whether it's cash back whether it's a welcome bonus which we'll talk about or it's additional benefits so a good example is my american express platinum card oftentimes it'll give me an amex offer where if i shop at a particular store like home depot or they recently had a best buy promotion if i go to best buy and i spend fifty dollars they'll give me fifty dollars back you can get free travel with your credit cards you can get free food with your credit cards now with american express cards or even other issuers you can find that you're able to get different types of food credits to like uber eats grubhub seamless many different restaurants as well now for number six there is a community aspect behind owning credit cards as well you'll realize that the travel industry is actually pretty dang big and you'll meet a lot of great people within this industry and some of them are multi-millionaires some of them are just college students some of them are teachers nurses it's a huge diverse group which i've also seen within our facebook community and just the youtube community that i've built over the past few years and it's amazing you can find connections anywhere if you're trying to become an entrepreneur you'll oftentimes meet someone who is very successful in there and the community aspect is just amazing i've had instances where i'm traveling out of state and i run into people who are also in the credit card hobby so it is absolutely amazing i think whenever you're making free money and and you have like a common interest with other people from around the world the community aspect just comes naturally and it's awesome number seven flex value this is pretty much owning some of these credit cards and just knowing that it does come with a little bit of prestige if you have a janky little debit card from wells fargo or something it's not the same as if you're slapping down an american express platinum or even a centurion card so it does give you a little bit more prestige i do have a lot of metal cards and i do have a partnership with a company that can transform any plastic card into a metal card they're called lion credit card um i will have them listed down below in the description as well if you guys use my link let him know i sent you i know the owner of that company really good i've been using him for the past few years and i can tell you that i've made some incredible business connections and networking and i know it's not too important but i do get compliments all the time on my credit card and just people asking me what i do why i have this and things like that so you definitely get a little bit more respect if you care about those things not a huge deal but if you want to sign up for something like that i have it listed down below in the description of my video it does also come with purchase protection for number eight as a benefit of credit cards purchase protection is absolutely amazing so i've had this instance before in the past i bought a pair of apple airpod pros you guys know how expensive they are you don't want to lose them at all i actually went ahead and lost one of my airpods all i had to do is call american express because i put that purchase on my platinum card and instantly they sent me a credit back for the amount that i got and i was able to buy a new pair i made a youtube video on that a long time ago as well if you buy something you want protection or you want extended warranty it doesn't beat what the credit card companies can offer to you so if you are buying a new macbook if you're buying a pair of shoes and somehow it goes outside the return warranty call the number on the back your card they will help you out it is amazing so for number nine concierge this comes with some of the more elite credit cards and this is pretty much like having you know in batman when you got alfred and he's got his little waiters thing and he helps you with whatever you need this is kind of like that he's not going to be physically in there in person but if you need a digital concierge when i was back in los angeles before the whole pandemic hit i actually used this a few times there were a lot of expensive restaurants i was trying to eat at but i didn't make a reservation too i called american express concierge and they got us seated that same day and i i called the restaurants beforehand they said i couldn't american express concierge went ahead and did that for me uh for number 10 there are private events whether that is within the community or within the events that the credit cards hold so chase often has this american express had some pop-up stands especially in new york too they just give you like free food free goodies and if you're at for example like a car show so i was at sema is one of the biggest car shows in vegas they actually had an american express little rest area where you can chill in there sit in there you can use their wi-fi get free food get free free drinks it was absolutely amazing i went ahead and did that and just by trying to get in the ticket of requirement was showing them that you had an american express card under your name so you do have access to things when sports begin to open up american express chase city capital one a lot of these credit cards have their own box office seats so you can buy it through the bank and they will give you some vip seats which is awesome too so for number 11 this is going to be membership perks now you can get a ton of different membership perks just off the top of my head i have ubereats gold that came for free or i have a membership subscription now to the com app with american express there are always these random type of membership perks that come along with it and if you own certain cards they will give you status at hotels now in order to get status at hotels it will often take you multiple trips at that particular hotel within a span of a year in order to get that status so just by signing up for some of these cards they'll give you like hilton diamond status marriott gold status brian who cares about status why does that matter if you want free sweet upgrades if you want free hotel rooms if you want them to just treat you a lot better and notice that you have status this is something that you would want to pick up now for number 13 we have bookkeeping if you have personal credit cards and business credit cards it makes it a lot easier so if i am buying something for the youtube channel like a new camera or a new lens instead of putting that on a regular credit card personal credit card i can put that on my business credit card and then my accounting firm is able to differentiate that very easily towards the end of the year you do not want to mix up personal and business expenses too much so it makes bookkeeping a lot easier too especially if you're a young entrepreneur or a business owner as well number 14 the benefits of credit cards hands down it builds credit history credit history is important if you're trying to get your first auto loan your mortgage many other things personal loans or if you're trying to lease an apartment they're oftentimes going to ask you what your credit history is like number 15 this also gives you access to zero percent or low interest cash so uh normally if you want access to liquid money or you want like one of those uh same-day quick loans i think they call them shark loans as well you're gonna have to pay a lot of interest but if you know exactly which credit cards are offering some promotions you can get no interest on your credit limit for up to 15 months that means i can borrow money from the bank i won't have to pay any additional interest that's free money that i can use for my business i can flip shoes or i can reinvest or even just pay off some other type of debt that i have or if if a family member needs a card in order to pay for their food this is just one easy way to get by so credit cards aren't all that bad people often confuse them and say that they're a very predatory source and if you're dave ramsey fan or follower you know that he often conveys to people that this is something you never want to touch it's completely bad but i'm going to try and logically depict a lot of these misconceptions that exist now for 16 this is leveraging opm this is related to what i just said with number 15. opm is actually other people's money you may not be able to see it right now because my chat bubble is right there but opm is other people's money you'll see a lot of millionaires a lot of billionaires they oftentimes don't use their own cash they will oftentimes leverage the amount of margin that they have so whether it's investing into stocks or you're trying to buy more equipment leveraging other people's money becomes incredibly important especially if you know and confident that you're able to get a positive roi on top of the low interest or even no interest promotion cards so those are all the benefits so far of credit cards hopefully this has you interested let's talk about how you can get started with this next so before moving on we do have to talk about the credit card cheat sheet there are going to be a lot of acronyms and terms that are going to come up that you guys may not understand so within the forums people are often going to say cc which stands for credit cards cu which is credit unions dp which is a data point fr is a financial review why mmv which means your miles may vary if i say your miles may vary it means what is applicable to me may not be applicable to you it is dependent on each person now hp or sp stands for hard pull or soft pull whenever you do apply for a credit card if it gives you a hard pull it's gonna show it on your account if they do a softball it's not gonna give you any notification hard pulls will temporarily lower your credit scores soft polls will not kyc know your consumer laws know your customer laws goes interchangeably pf personal finance so spouse msr which is minimum spend requirement is the amount that you need to hit or spend within a certain amount of time in order to get a bonus or a promotion for and sub stands for welcome bonus so if you sign up for a card oftentimes it's going to give you a sub which is a welcome bonus so we got a couple more um huka is hang up and call again if you are getting declined for a credit card and the rep is just not cooperating with you you can huka hang up and call again get a new rep and see if they can help you out ur's the ultimate rewards uh program or portal loc is line of credit af is annual fee ein is employer identification number this is similar to your social security number just associated with your business fv stands for flex value pc is product change cli is credit limit increase fr financial review if you mess something up if you are trying to game the system and you get hit with an fr or financial review you have to submit all of your information your income your taxes a lot of things in order for them to clear it if you don't pass financial review with a credit card company they will shut down your account rat team also known as rewards abuse team pot stands for pay overtime this is a feature that comes with credit cards if you're working with a charge card like we'll talk about later on in this video pay over time is something that they are trying to introduce i don't recommend people to sign up for pay overtime unless they're giving you a promotion there are a lot more credit card acronyms so c i c c i u c i p c f u c f c s p and c s r this is all acronyms for different chase cards chase in cash chase inc unlimited chase inc preferred chase freedom unlimited chase freedom chase sapphire preferred chase sapphire reserve this isn't necessarily too important but it's just good to know if you ever see these acronyms that especially start with a c most often times i am talking or people are talking about chase cards so you got the gold plat business plat the bce blue cash every day bpp blue business plus so there are some cardinal rules of credit cards that you should not ever do to start you don't ever want to carry a balance on your credit card unless you are under a promotion right now so if it's like a business credit card not reporting on to your personal credit score or you have that zero percent or very low interest and you absolutely need to i feel like those may be the circumstances where it's acceptable but just as a disclaimer there's no point in getting these credit cards doing everything i'm going to teach you if you plan on carrying a balance and paying interest the points will just not add up or just be equal to the amount of interest that you're paying number two do not just use one credit card people oftentimes sign up for one card and think they are done you want to diversify your portfolio you want to have a number of different cards and you want to know exactly when to use them in order to maximize the amount of money you can get back number three do not cancel or ever close a credit card people think that if they're not using a card it's okay to cancel it or close it if you do that you will hurt your credit score if you have a credit card that's been with you for five to ten years and it's your oldest credit card and you decide i don't want to use it anymore literally just don't use it anymore maybe every month put like a small five dollar charge on there buy a pack of gum or something so the banks don't close it on you but when you close or cancel a credit card something bad happens where you lose all that history associated with that card so you've been paying it off diligently for five six years and then you close it you lose all of that and your score will go down significantly i wish more people knew about this too many people dm me and say that they closed it they don't know what to do next it's too late by then number four do not try to game an ms so ms stands for manufacturer spending and there are people who will go ahead use credit cards buy gift cards and try to game the system for everyone i know who does this they have gotten caught if not gone a financial review at some point in their life i don't recommend this i believe you can make just as much money by using credit cards like the banks intended and you'll still be able to get free flights free hotels for the rest of your life completely for free okay so you don't have to game or ms in order to find success in this there was recently a wall street journal article where a guy uh i believe it was like 300 000 of ms that he was doing and he got caught and he's working with the irs right now really interesting article for you guys to check out if you're interested in learning about how deep it goes and let me tell you it goes really deep i know some of the players in this game that ms millions and millions of dollars i don't recommend it i see people doing it it's just not my cup of tea number five avoid cast cash advances or pot so you can use your credit cards in order to get a cash advance that's going to have a separate interest rate the pot is the payover time like we mentioned earlier i often times do not use any of those features because it means you're going to pay additional interest on that amount so you want to avoid that as much as you can so getting started what's a credit card and how does it work just for my news so credit cards have a credit limit that you can make purchases on and repay on a later date very simple okay the banks will award you with a credit limit say a 500 and every month you loan that money from them so i'll buy a pack of gum for ten dollars i'll buy a chipotle burrito for ten dollars i'll buy um some topo chico for five dollars 25 right there of the bank's money that i use and then i just pay them back at the end of every month and when you pay them back you don't have to pay any interest on this amount you're just using the money that they have for you pay it back you're good to go and then you reap the benefits i'll talk more about what a credit card works in a different type of analogy later on in some slides so debit verse credit this is a question that many people have why would you want to use credit cards over debit cards so let's talk about this a debit card it doesn't build you credit it doesn't build you history it doesn't do anything at all you have to pay in real time so if i use my debit card and i buy a tv if i don't have a thousand dollars in my bank account i can't buy that tv debit card you don't pay interest which is nice but you don't get points either and for debit cards you could be liable for fraudulent charges if someone steals your debit card they have access to it like i mentioned earlier you are screwed with credit cards it helps you build credit you could pay it off later meaning if i buy a thousand dollar tv right now i don't have to pay it off till the end of the month so that could help if you are waiting for a paycheck or whatever it is like i mentioned earlier you could pay interest if you do not pay off that full amount that's when credit cards don't make sense but credit cards also have a fraud protection as well what is better debit or credit credit all the way if you have a debit card go cut that up or put that somewhere in your house where no one will ever be able to find it there's no need for you to carry a debit card around unless you want quick access to atm cash but other than that for security reasons if you're living in the city somewhere do not use a debit card to carry that around with you it's dangerous okay so what is credit credit is simply the ability to borrow money or access goods or services with the understanding that you'll pay at a later date we know what credit cards are credit works in a general sense so i have eg lending a flake money so a good example of how to explain credit because you're going to hear about this throughout school as you grow up as you become an adult or maybe if you're already an adult you already know what this means but you never had like an exact definition so in terms of credit if i so i had a friend growing up and and when i played rugby i had this this friend he would always ask all of us for money right he would ask for like hey 20 dollars brian can you spot me 20. and um i would go in and spot him that money and he would tell me look i promise i'll pay you back in a week he would not pay me back in a week and to my understanding to what we agreed upon he would so i don't always reach out to him be like yo where's my money where's my money said you're gonna pay me back and after nagging him like five ten times i was able to get my money back that person that friend that i had right there i would consider him a very high risk i would give him a low credit score because he couldn't pay me back on time another example is if i had a good friend who said yo brian i'm in a tough spot i need a hundred dollars to pay my cell phone bill i promise i'll pay you back on this day and if i don't i'll pay you interest on that amount or i'll just pay you interest anyways if he goes ahead takes money from me i give it to him and then he pays me back on that specified time or even a few days earlier i would consider him to have good credit so imagine that on a large very very large scale if you want to do that with an auto loan where cars are worth 20 to 100 000 if some if you borrow money from someone and you promise that you'll pay that full amount in like 48 or 72 months and you aren't able to you are showing them that you don't have good access to credit your credit score is probably butthole okay so make sure that if you are in the world of trying to get money you pay back on time that's simply how it works so maintaining a good credit score is critical to financial stability and leverage this is the most important thing statement that i can find i need you guys to ingrain that in your head if you have a good credit score it shows banks institutions and other people in your life that you know how to use money you know how to pay back and you're not just over leveraged in debt and you don't ever know exactly when you're going to be able to pay that amount off so good credit versus bad credit if you have good credit you're going to have more available credit limits you're going to have higher approval odds and you're going to get better interest rates if you have bad credit and you pay late you're going to get smaller lines of credits you're going to get denied for a lot of loans so even if you want to get a car for like five thousand dollars they oftentimes won't even approve you for that you'll get the highest of the high interest rates and you pretty much have less freedom if you can't buy the home you want or the car you you want to have you don't have the freedom in this world so is a higher credit score really better and the answer is yes take a look at this if you have a credit score in the 500 to 589 range right here you'll pay an interest of up to 16 i have friends who literally pay 16 interest on their car and i told them what in that if you have a higher credit score you'll know that you can get an interest rate of three percent it's not bad you can find interest rates of two percent now so check out credit unions if you are paying an interest rate of anywhere from four to whatever percent higher than that try to bring your interest rate lower okay i will save you money just by doing that and that's the beauty of credit you can optimize different aspects of your life and make sure that you're not overpaying an interest which really compounds over time so there are three major credit bureaus the credit scoring algorithm is always changing and recently the government too with joe biden they're trying to implement a whole new type of credit scoring system but what you have to know is that you have the creditors you have the applications you have the debt collectors they are all data sources they send their information off to the credit bureaus equifax experience transunion they all give you three different credit scores so you don't have one credit score you have three different ones that's why if you go to a mercedes-benz versus going to i don't know volkswagen if one of them is pulling from equifax and the other person is paying or the other institution is pulling from experian you're going to see two different scores because they have different scoring algorithms so how do you build credit this is actually a lot easier than you think so number one pay off all your credit obligations on time if i pay off my rent every single month on time my credit will go up if my credit score is associated with this institution or my building same with credit cards same with your auto loans if you have a payment due date and you pay it off on time your credit score will go up that's as easy as you want an 850 credit score is that what you want paid off on time and do that for many many years that's it now number three another way to just build credit is first by monitoring your credit history regularly so you can't build on things that you don't know you can't build on things where you feel like you're doing well on but in reality you're actually not doing a good job if you want to get a free credit report online go to annualcreditreport.com this is what everyone uses this is what most financial institutions pull from when i had my identity stolen and they swiped everything this is what i used in order to start fixing things so what makes up your credit score so your credit score is pretty much a pie and this is always changing as well too but for the most part we'll start with payment history this is 35 this is what makes up a large majority of what your credit score is this is why i say don't miss your payments if you do your score is going to go down 30 of this is how much money you owe or your utilization so if you have a thousand dollar credit limit and every single month you use 900 of it your utilization is 90 that is not good you want to keep your utilization low you can pay off your cards early or you can sign up for cards with american express and they don't report utilization 15 of it goes to new accounts 10 of it goes to length of history and then the other 10 is types of credit to student loans mortgages you want to have a wide variety of different credit that you have you don't want it to just all be be beginner basic credit cards you want to have different things that can boost your score so new accounts and hard pulls is closely correlated so whenever you apply for a new credit card account and it adds to the amount that you have they say that you shouldn't have too many credit cards this really doesn't affect you too much at all so i wouldn't worry too much about that either in terms of your credit score as long as you pay it off on time that's really the main thing that you need to know a lot of this helps but it's not huge so how do you raise your credit score fast i got this little okja little photo right here and this is because we're going to talk about piggybacking so if you want to raise your score fast and it's absolutely trash find a family member find a close friend there are services that you can pay online which i never ever recommend don't ever get a trade line which is what they call them in order to improve your score so how does this improve your score when piggybacking credit the authorized user gets a cardholder's full account history reflected on their own credit report which can have a positive effect on their score that is it so if i have a 800 credit score and i add you as an authorized user onto my account i pretty much transfer all of that history onto you and that will raise your score the fastest the most drastically out of any other method that i know online so if you have a bum credit score right now and you're trying to improve it you got to find someone with a good credit score if they add you as an authorized user you don't have to use their account it doesn't do anything to them they simply just send the data off virtually and you'll be set you'll be good to go and the next reporting month you'll see that your score went up so i've seen people who literally went from a 500 credit score all the way into the 700 and 800 range just by doing piggybacking so how do we make money from credit cards this is where things get juicy we know everything now about how a credit score works how the fundamentals basics of it all let's talk about some more fun stuff now so right here on your screen i have the sign up application page for a card called the chase freedom flex card this is a no annual fee card and right here as an example there are two ways that you can make money just by signing up for this card after you spend 500 in purchases in three months this is known as the welcome bonus or the minimum spend requirement you will get 200 cashback so that means if i spend 500 i get 200 cashback on my account that's absolutely amazing so if i wanted a a 30 40 discount on a ps5 it was 500 bucks i get a ps5 for 300 bucks right now i could use that extra 200 cashback for the video games and the controllers or whatever you want that's one way that you can make money from credit cards easy ways no string attached the second way is by earning cash back by the by the amount that you spend so on top of the money that you get from the welcome bonus you actually accrue something called cashback or points so right here you have an example so you can earn five percent uh so you can earn five percent on up to fifteen hundred dollars on combined purchases in bonus categories so every three months chase will send you a little calendar on what categories give you five percent this could be gas stations this could be restaurants this could be um the dining hall i don't know they come out with random different categories every single time you get five percent you get three percent on dining at three percent of drug drug store purchases now i know this doesn't seem like much but if you're spending thousands of dollars and that accrues just over time and and you keep balling out this five percent three percent it really begins to add up over time but like you see on your screen a majority of the easy points is going to come from the welcome bonus and this is why i recommend people to sign up for new cards as much as possible because this will always be the little five percent that you get back on some of your purchases so another card to show you guys an example of some of the free money you can get with this platinum card right here just by owning this platinum card you'll get a hundred dollars in statement credits for purchases at saks fifth avenue so this is split up fifty dollars every six months i always buy myself cologne i get free cologne uh i oftentimes don't like to buy that stuff because i feel like it's overpriced so i get it for free just by owning some of my credit cards so brian which cards do we start with first it seems like there are hundreds of cards out here and i want to pick the best one that is right for me so i got you guys all set on this okay so when you're first starting out and you don't have any credit you can start out with something known as a secured credit card you don't really have to be too picky with this there really isn't the best secure credit card out in the world there are a good variety of them and oftentimes they will just do the basics well enough for you to get started so with this i have the capital one platinum card and if you guys click on this card or you click right here you'll actually be able to open up the application for it as well in case you were interested so this right here the way it works is first you have to actually give them a security deposit so in order to get started with a credit card if the banks don't know who you are and they can't trust you yet and you can't get approved for any of these cards you got to start with a secured card what this means is you will give them money so say i give them 50 or 100 that is my money i will have that as a credit limit for that card you will eventually get this back when you're able to show that you're able to use a credit card responsibly over the next few months but a secured credit card is pretty much like the beginner training wheel since starting out if you can't get approved for any real normal card i was frankly enough able to i would start with a secured card first they'll give you a smaller credit line okay they will boost your score it will give you your deposit that's how easy it is so if you do have a secured card make sure you use it for a couple months the next thing that you can do is to get a beginner starter card now we have a lot of different options for this these are some of my favorite ones if i click on this beginner starter card link you'll actually be able to pull up the ones that we're talking about as well on creditcards.com so we see this load here are some of the different products now a beginner starter card is gonna allow a lot of new applicants to get in but most importantly they have no annual fee they don't have a high minimum spend requirement either so for like the freedom flex card i don't have to spend three thousand dollars in three months i can spend 500 in three months which any normal person should be able to do so the chase freedom cards are absolutely amazing if you want to get started american express has some beginner cards as well we have bank america on here city double cash another great beginner starter card and we also have the apple cart on here which is pretty popular as well i recommend starting out with the chase freedom card or the freedom unlimited if you can chase doesn't like new applicants so i'll give you guys like a full blueprint on what you can actually do next slide so like i mentioned chase does not like new applicants but their points are flexible and easy to use if you're a beginner it's just gonna be a lot more easier to navigate through chase just because it is so ui and uh a lot more friendly the chase freedom flex card is now mastercard but i haven't had any issues with that card either if you are using american express for example it's less accepted at least in the korean restaurants and some of the places that i go to in my area american express has just extraordinarily expanded over the past few years and that is actually something that they're focusing on one thing i do want to mention with american express though is that they do like new applicants they do like strangers entering and if you do want to get started you can't get approved for the freedom flex card the next thing i would recommend is the american express so for our next slide this is going to be all about the most optimum plan that you can find so here is actually what i recommend i recommend you to start by building a relationship with some of these banks and institutions primarily chase now the reason why we start with chase is because they have something known as the 524 rule meaning you can only get five cards within 24 months so if you get six seven cards you're gonna be locked out for two years and you won't be able to get any more chase cards this is why it doesn't make sense to get all other uh branded cards you can't get an american express card you can't get all these and then try to apply for chase you're gonna have to wait two years they do this they are smart about it this is a rule that's been around for a very long time so what i recommend if you can't get approved for the freedom flex or the freedom unlimited card immediately start here get a personal checking account with them okay you can use it for one to two months you can show that hey you are a real person you're not a scammer you're not someone from another country you're actually trying to be a real customer get a business bank account or a personal bank account whatever situation you're in then apply for one of these cars chances are you'll get approved make sure that you have a decent score okay if you have a score of 500 or 600 you may not get approved for this i recommend to work up to a 700 credit score hold the card for two to three months okay what you want to do after that is look into the chase sapphire preferred this card is great because it comes with a very high welcome bonus it comes with an annual fee as well but you can always downgrade it or cancel this card you could downgrade it into the freedom unlimited do whatever you want but it's a great card to hold for a year just because of that welcome bonus you can get so what i did after the chase sapphire preferred card is i immediately got the american express gold card it's my staple card that i still use today it's one of the best dining cards that you use and if you go grocery shopping and you don't want to use the freedom flex card you can go ahead and use the american express gold card and you can still get 4x on your purchases after this it's a little bit more advanced you can really do whatever you want but i personally recommend you to look into the business credit cards so many points so many benefits so many advantages if you are an entrepreneur if you don't have a business at all make sure you watch my full business credit card guide on youtube as well that video has like a hundred thousand uh views people email me all the time saying it's helped them out so much too so this is really the roadmap that i would personally go with now your miles may vary you do not have to follow this if this does not make sense for you if you're not a traveler if you like cash back if you don't like amex if you don't eat out if whatever the reason is if you don't want to follow this it's completely okay this is personally what i believe is just the generic best routine to go but if you're like a low income college student right now and you're barely making ends meet it may not make sense in order to pick the gold card or the the preferred card because these cards do have annual fees so here are some of the mid-tier cards that i'm going to recommend to you guys we have the gold card here we have the world of height here we have the marriott bonvoy business the sapphire preferred the cash preferred and then the amazon visa prime these are what i would consider the annual fee cards but i feel like it's such a good addition to the wallet so out of all the cards i have i have four i five of the cards listed on this screen right here i love my world of hyatt it's a 95 annual fee but the reason why it makes sense is because it gives me a free hotel night every single year so if a hotel night cost me 200 300 that i get for free my annual fee of 95 dollars automatically gives me the difference of whatever that free hotel night is so this is really meant for anyone who travels i know there are heights everywhere near me i know their heights in new york and dc and i personally love height it's my favorite hotel chain all i have to do is drive three hours to new york i get a free hotel night and that is just by holding this card marriott bon voy business same exact principle you get a free hotel with them any marriott in the world every single year you get the welcome bonus you get the cash back categories and then you also get status associated with those cards so mid to your car mid-tier cards let me say they're valuable they're stapled to your wallet but if you don't want to pay annual fees and you don't travel i would understand why i would say though if you want the most maximum amount of benefits from credit cards you need to make sure that you unlock these mid-tier cards so on the next slide here we have the god tier cards and this is extremely important in understanding exactly what the late game phase of credit cards is so when you first get into the credit card game i know how overwhelming it could be you want to make sure that you apply for all the right cards you want to make sure that you make right moves there aren't that many credit cards out here yes in in the grand scheme of things with different credit unions and banks and all these other companies like target or i think dick's sporting goods has their own card or the macy's card there are a lot of credit cards but in terms of the more valuable and viable options i feel like the learning curve may be steep but it it really just fizzles out pretty quickly so i'm sure you can go from beginner to an expert in the credit card industry in the matter of less than a year it really doesn't take that much work as long as you are diligent you're involved in a community and you are semi-smart if you're watching this video i know that you're smart so i won't even question that at all so the god tier cards i have the american express platinum card the business platinum the chase sapphire reserve the jp morgan the american express centurion and the hilton honors guard i have the platinum card i'll click on it right here it'll take you to the links that'll show it to you i have the business platinum as well and if you guys want to sign up for the centurion card you can't actually sign up for it but you can request to get invited for it so you can go ahead and do that you need to have an american express card linked already as well under your name in order to qualify for that so the hilton honors these are all amazing cards they all come with great benefits it's going to be a little debatable on the centurion card and the jp morgan card but at least for these four right here i would consider these the god tier cards because yes they have high annual fees but oh boy do you get some insane benefits so i'll share with you later on this video my spreadsheet on these two cards and how much money i was able to make so business tier is a whole nother world there are so many associated benefits with business tier credit cards and some of the things i'm going to mention to you is that they do not report onto your personal credit report you get higher credit limits you get insane benefits it helps you with bookkeeping the list goes on and on these are my favorite business credit cards it's the american express blue cash the american express blue business plus the american express business platinum the business unlimited business preferred and the business cash i have most of these guys on the screen right here and the annual fee really isn't that significant because it mainly just comes from the business platinum which you don't have to get if you don't want but it still adds a great addition plus another thing business credit cards don't affect different rules like the 524 rule which can be a real pain in the butt so before we get started with the next few slides i wanted to talk about some quick tips that are going to be very important if you do apply for any of these cards you have to make sure the biggest thing is your personal credit score if your credit score is under 700 work on your credit score first okay make sure you can pay off that debt make sure if you have any remaining balances you get that squared away and if you have any people in your life to get added as a authorized user also known as piggybacking that we talked about earlier make sure you go ahead and do that but if your score is good and you do get declined for a card let me share with you this extremely important tip so if you do get denied for a card all you have to do is google reconsideration line for that particular card companies so a lot of these card companies actually have specific algorithms that determine whether or not you get approved or denied for that card if you get like a pending request like we need you need to wait seven to ten days and we'll may mail you a letter just wait for that to come in oftentimes you still get approved for that but if you do get denied which happens pretty often i would not get upset about that or feel some type of way because it just happens to the best of us it's it's happened to me call the reconsideration line okay this is a manual person let them know exactly what your story is hey i found out i got declined can you tell me why they'll say hey i think your account history is low or it's kind of suss that your account your income is a little low and you just have to tell them what situation you're in hey i want to build a relationship with you guys i prefer you over this competitor and i want to keep working with you these are real people on these reconsideration lines and they will oftentimes make a change in the algorithm for you so you can get approved so if you can't get approved for any type of credit card call the reconsideration line get a person on there they want to make sure that they do a good job for you oftentimes they don't want to disappoint people so find that line and call them it works for a lot of people now i do also have to talk about covid pandemic and approval rates this is really important too because the banks have been affected some of the hardest in in the coven pandemic so uh banks rely heavily on tne which is travel entertainment there's a lot of money in that industry and because of the pandemic when that got cut they were really afraid we saw interest rates continuing to go up people who were getting foreclosed on and evicted and it was just not a good situation i i believe there's a lot of ptsd that the banks have from uh the different uh recessions that we've had in the past so they've been really really cautious and what this means is approval rates since the pandemic has started has gone down significantly so if you had a 680 credit score i know you could get approved about a year ago before the pandemics started for cards like the gold card or even the platinum card but they made it a lot harder now because they they want to reduce that risk they don't want people who have a high chance of defaulting on the bank's money to be a consumer so you'll notice that during the copa pandemic approval rates went down because of the vaccine because everything happening right now it is starting to go back up it is nowhere near where it was before this whole thing started so keep in mind that if you don't get approved it is also circumstantial because of the current climate of what's going on okay so the next thing we're going to talk about is unlocking your card's full potential we just talked about some of the cards that you would consider getting hopefully you have a clear idea whether you're a beginner and you have to get a starter card or you know the chase freedom flex card is the next thing you need or maybe you're more of an intermediate traveler and you have the platinum card how can you unlock that card's full potential how can you unlock that card's benefit so as an example we have the gold card and the flex card on your screen with the gold card you can find yourself getting forex back on restaurants or ordering takeout or delivery or just any food that you're trying to dine in at with the chase freedom flex card you'll get three percent on dining and restaurant and drugstores and one percent back on everything else to me it's a no-brainer to know what cards you have to use but say you're in a situation where you have both the gold and the freedom flex guard you got to do the math in your head and you got to realize what points you value more do you like american express points more because you can transfer them out or do you prefer to just accrue a lot more chase ultimate reward points and maximizing your card's potential it all starts by using and knowing exactly the right card in your wallet so for number two it's all about earning the welcome bonus if you want to maximize it you have to make sure that you get the welcome bonus every single time the chase freedom unlimited we've used this example a few times now if you spend 500 you've got 200 back that is one example but other cards like the platinum card it requires sometimes for you to even spend like 10 000 or 15 000 in three months most people won't be able to even make that money in that amount of time on based on your general average salary of your american which is like 50 60 grand a year depending on where you live you're not going to be able to spend 10 15 grand in those three months but if you are getting close to that amount you can use different services that will help you reach it so if you feel like you can't earn the welcome bonus on a card i would hold off on making some bigger purchases if you're trying to get a new phone if you're trying to get a new computer don't get that just yet make sure you hold off on it and then apply for the card and then put those purchases on that card once you have some money saved up because you definitely don't want to get interest trying to chase some of these welcome bonuses either so a good example of this is plastiq you can pretty much use this to pay rent or other utilities that you may have what they do is they allow you to use your credit card pay on plastiq and they will mail a check out to whoever you want in order to gain the points so for where i live say for example rent here which is 2500 a month if i got a new credit card i want to be able to pay my rent with my credit card so i can get that minimum spend requirement like we talked about earlier for the sign up so here we have with plastiq they allow you to do that i actually have a special link for you guys in the description on my video or somewhere on this slide in the beginning where if you use that they'll give you 1500 fee-free dollars so they'll charge you a small fee in order for this to happen just so they can stay alive as a business their public offer offers you no fee-free dollars but i did manage to work with plastiq great people over there and they did send us a link for our audience to use so you guys can also go ahead and do that so number four you want to make sure that you use all benefits and credit associated with the card here are just some screenshots of my american express business platinum or some of the credit cards that i have and what i was able to do in 2020 i have this as a pdf so this is pretty much telling you guys exactly what i paid annual fees and how much net profit i made and i go really in depth in details like even to like the airline incidental fee credits or the purchase protection i got so a lot of this actually gives me a very good idea on the benefits and credits that each credit card has if you have a card like the platinum card you get a lot all right you get the saks fifth avenue credit the business platinum gives you the dell.com credit you get free money and if you don't use it every single year you're throwing away money you're just ripping up 100 bills and putting it down the drain that's not something you want to do all right so the next thing that you need to know about is point redemption so there's no point in accruing 1 million 2 million or 5 million points if you don't know how to redeem that properly to maximize that value so if a million points is equivalent to ten thousand dollars ten thousand dollars is still great ten thousand dollars worth of free money but you can do a lot better than that if you can get a redemption where your points are worth five cents or ten cents per point that ten thousand dollars goes from fifty thousand to even a hundred thousand dollars in travel rewards so point redemption is actually an incredibly important aspect of knowing how to use your credit cards it's then just figuring out exactly what you can do to maximize that so this will oftentimes come in the form of business class flights if you transfer your points they will give you a redemption of 5 10 15 cents per point which is absolutely amazing yes business class flights are naturally more expensive they'll be like a couple thousand dollars but if you do want to experience prestige at some point in your life and you don't want to pay 25 000 in cash you could pay 5 000 worth of cash in the equivalent of points and get that redemption so in terms of point redemptions there are three ways that you can go about it you have in-house redemption you have two transfer partners and you have number three cashing out with schwab let's go over all three of them so in-house redemption is extremely easy i have my chase pulled up just as an example to show you but with chase right here they'll give you this whole drop down menu on different ways that you can redeem your points if i chase ur points i can buy things on amazon i can buy things on apple i can buy apple air pods with my points or i can just get simple cash back i can pay for my dinner with this i can get gift cards i can pay myself back i can transfer to travel partners i can travel i can buy experiences so they'll do like custom art viewings or like real neat things like that or if there are any weird deals with other companies say like roomba's doing like a little uh chase ur point deal you can get your points and put it into any of these categories this is what i would consider an in-house redemption they will give you an idea of what your points are going to be worth so if you guys look on your screen it's hard to read this but i have about 600 000 points with chase right now and that's equivalent to 7 600 would travel or pay yourself back but if i do gift cards and chase dining you'll see that six hundred thousand points is worth six thousand dollars so it's clear that if i use my points for other things travel pay yourself back they'll pay me a little bit more so they'll give me like a 1.5 cent redemption compared to the one cent to one point redemption so on here next this is the chase ultimate rewards portal this is where you can use your points and oftentimes find a much better redemption i use this and still find myself getting a two cent to two point redemption so instead of this being six hundred thousand points if i'm able to score the right deal and i get a two cent for two point redemption that's worth fifteen thousand dollars so the second thing that you can do is transfer your partners so the second thing that you can do is transfer your points out to different partners this is extremely extremely important because this is where you can find those massive deals so with other youtube channels like sebby mandy they do a really good job of this as well or prince of travel my friend ricky you're able to get your points transfer them out to different partners like air lingus or whatever airline you have and when you go international you start getting huge huge redemptions especially when you start upgrading your seats so if you want to find a transfer hack this is a resource that you can use this is called award hacker so we'll just use this as an example so say i open up a ward hacker this is going to show me exactly which way i can transfer my points a really good resource i'll go from my area we'll do baltimore bwi and i want to go to los angeles because i love my la people so right here it'll tell me exactly which points i can use so mr is membership rewards this is american express you are his ultimate rewards right here if i wanted to travel for 20 000 points i can transfer my membership rewards it will tell you exactly what you should do i could transfer it over to kathy pacific right here get those miles okay and then redeem that for a ticket and if american express on their platform is doing an incentive and sometimes they do they're like if you transfer it out to a partner will give you an additional like 200 points on top of that they'll do like random promotions uh especially before this pandemic had started i'm sure they'll pick that up again uh if i wanted to use my ultimate reward points and tr uh transfer that out it'll actually tell me right here so ultimate rewards i could transfer to united airlines and you'll see the redemption that you get if i transferred my marriott bon voy points i'd get a 1.38 mileage uh plus redemption so you'll see one cent at one point not competitive not the best marriott bon voy they overvalue their points which so it's not worth as much either and you'll see that you get a different redemption so as long as you study this and understand how it works you'll be good to go so the third option that you have is charles schwab cash out so this is actually really interesting because what you can do is get a better redemption on your cash so instead of just doing a one cent to one point redemption you can get a one cent to 1.25 redemption so if you have millions of points this actually begins to add up it's really easy to use all you do is apply for the card once you get approved you have access to this you then put in your card number and then you choose the amount of points you want to cash out so i have about 500 000 points with american express i could get 6 000 i believe uh 300 around that number sixty three hundred dollars worth of uh cash and that's a little better than just cashing my points out one to one so they'll give you that additional 125 dollars instead of the uh regular amount if i had 300 000 points so for the next slide we have exactly what is next let's talk about what you should do you know how to redeem your points we talked about credit cards we talked about your credit score how do we move forward from here so i wanted to share with you first my current personal finance setup in terms of credit card rewards i feel like this really does touch upon the overall general personal finance industry so i'm just going to go over right here exactly some of the different resources that i use because a lot of you guys always ask me brian what do you use for your checking account what do you use for stocks so right here for my checking account i have my charles schwab account i have my savings account with yada savings i have my business checking with jp morgan or another company called oxygen coming up with stock brokerages i still use robinhood weeble in public with credit cards i have my gold platinum and freedom on top of um with my credit cards guys ah crap it's over here i have two full credit card binders i don't want to show you guys inside of them because my numbers are not taped up right now but um i have a lot of my credit cards so my gold platinum and freedom are actually what i use mainly in my wallet i think my wallet is over here so i i daily drive those credit cards just because it's a lot easier now but whenever i am working on a new credit card that's when i'll throw that in my wallet i'm looking to get another hotel credit card soon i just find a lot of value in those so that is something up that is up next on my list if that makes english that makes no english so after that we have my crypto portfolio so this is block by coinbase and crypto.com amazing different resources and then for my online shopping portal if you guys do any shopping online use ebates they'll give you additional percentage additional cashback for that amount which is amazing all right guys so for the final notes this is incredibly important as well your miles will vary a ton so what this means is what matters for me is not always going to matter for you everyone has different spending habits everyone prefers different things some of you guys may love capital one or city and some of you guys may hate american express i love american express i love chase it may be different for whatever reason it is maybe you live closer to some of these banks or institutions or maybe you just like to live a more simple lifestyle so just understand that everyone is different everyone has their own spending habits it's all unique stuff and it's all good whatever you choose number two you have to realize this one question right here what do you value so are you looking to get into credit cards to get cash back this is someone like dave hansen who has a youtube channel he loves cashback he doesn't care about points and all that but i love points i don't really care about cashback i would rather be able to travel in luxury get my immigrant parents to fly back to their home country in a first class business class flight without having to pay real money for it what do you value the most now the third thing that you guys have to realize is patience is the key you don't have to apply for all these cards overnight you don't have to think that you need to become a pro in in the span of a day patience is key especially in the credit card industry take your time apply for these cards do research and know exactly what you're getting yourself into now i do have extra lessons on my youtube channel so this is going to be all about the trifecta guides i've talked about the american express trifecta the chase trifecta i have a full business credit card guide video it's like a 40 minute long video as well on youtube it has over 100 000 views a lot of people love it i have other videos talking about how you can get a hundred thousand dollar credit limit increases or credit limit tips i also have some instant approval hacks where if you're not getting approved for credit cards i talk about on my channel and what you can do to do so so make sure you guys check out those resources and we are on on the last slide right here like share and subscribe guys i really appreciate you guys watching this video till the end and if you did watch this video till the end i'm going to leave like a secret little code or something type in ball type in b-a-l-l and i i guess that's just going to be our code that i know you guys watch this video all the way till the very end if you guys did enjoy this video please comment down below as well just like let me know hey brian i really love this like long ass video that you did it really did help me out there was a lot of value in it and i can definitely do a lot more on this on some more complicated topics as well but hopefully this video was able to help you guys out like always don't forget to download this presentation if you guys want to and also check out the links down below in the description so i have all the credit card links for you guys to check out i have stock brokerages weeble two free stocks at the time this recording get up to eighteen hundred dollars back you can get robinhood stocks down below you can get public stocks down below check out blockbuy you get up to 250 and um uh cryptocurrency and bitcoin you can also get coinbase ten dollars what else do we have we got so much crypto.com we have 25 so if you even just end up signing up for all of those you're just getting free money in your pocket uh some of them do require you to deposit like anywhere from five dollars to even a hundred dollars most of them don't require you to deposit but if you do deposit money it'll increase your chances of getting a higher bonus so make sure you guys go ahead and check that out like always thank you all so much again for watching don't forget to follow me over on instagram creditbryan and uh yeah i've been talking for a while mouth is up it'd be like that so thank you all so much again for watching much love to you have a great day and peace out

Channel: Brian Jung

Views: 168,243

Rating: 4.95262 out of 5

Keywords: Credit Cards, Credit For beginners, Credit card churning, Credit card hacking, Credit card 101, Credit Brian, Credit Card Guide for Beginners, Chase, American Express, Chase Freedom, Credit Card Guide

Id: DI16evt55rU

Length: 64min 9sec (3849 seconds)

Published: Thu Mar 11 2021