Understanding and MASTERING Credit Cards

so I wanted to do a thing about finance and money are for several things articles books everything might hand understand money and truly understand how it works for me it's because I just feel like we really don't understand money like people in general don't understand Lenny how it works and how to get it to work for you I'm not rich I'm not a millionaire but I have managed to get my credit score over and seven hundred wins in a year maybe a year in like two three months so let me just break it on to you college and I'll start in the college you're going to see all of these credit card companies on campus they're going to be selling you stuff they're going to be giving you free t-shirts and to be honest I started from every credit card because I want to teach you this in college I'm sure a lot of you did if you're in college now you probably did that or you may be going to do that but that's how it all gets started so when you get this credit card you don't understand anything about it you don't know how to use it you're just like okay this is free money I have money I know how to pay it back at some point but I still have money now but I don't have so you're all excited this is the way that credit work your credit to debt ratio is what makes your scores go higher so let's say you have one credit card that's worth a thousand dollars if you want $800 on it using eighty percent of your credit student ratio so this means that you only have 20 percent credit and eight percent debt you don't want this to other lenders and you don't look good on your credit so far the credit score that looks really bad so the trick to credit is you're supposed to only utilize less than 30 percent of your actual credit so if you have a thousand dollar credit card or a thousand dollar credit limit you're technically only going to be using 300 hours at a time now I get it you're part of that why do I get it out loud I can't use the whole thing you can use it but you have to pay it off or get it below 30 percent before the cycles date now these are terms that you need to know familiarize yourself with understand learn them look them up truly truly study them two things your insightful close date on your credit card statement and when the credit card is reported to the credit call up your credit card company ask them those those two questions one in high cycle close date and what is the car purporting to the agency now here's the trick to credit right to credit card that people don't know the cycle closed date is different from your due date in your mind you're thinking well as long as I pay whatever I have to pay before my due date I'm good your due date means nothing the credit card company just made up that date as a random date that they want their money by it has nothing to do credit matter help me in any kind of way other than you paying off whatever the minimum is of course but the credit card due date really means nothing if you're not like understanding what the cycle dated so let's say you have a credit card that's due on the first you're responsible to the clothes until the tenth so you pay off your card on the first thinking oh I'm doing the right thing I'm a good civilian I'm doing wonderful to do if you have my credit card buffers or pay the moment it doesn't matter because you pay that off or you pay your minimum payment on the first your cycle doesn't close until the 10th you not have nine days that you're selecting your card and you're charging it back up the chances are that you are charging more than 30% of that credit to debt ratio that we were talking about right so between the first and the 10th you've now charged over a 30 percent so the test comes around and your cycle has closed the cycle closed date if it's all attendance there according to the agencies within one to two business days from that cycle closing so here in cycle closes on the 10th they're reporting it to the agencies around the 12th so everything that you spent between the 1st and the 10th is now going to reflect what your credit is and what your credit score is going to be when you get to court on the 12th so yeah you pay off the balance on the 1st but that doesn't matter because what you start in between the 1st and the 10th is what's going to count for what your credit score is going to be and what you look like to lenders because now your cycle closes on 10 be reported on the 12 so here is the trick to understanding well how do I make this work from how does it work in my favor once you figure out these two dates the cycle clothing and what it's being reported to the agency this is how cell work in your favor number one piece that duty he's been due date that the credit card company is tell you that you have to pay your bail imbalance by and painted it on bounce so let's say your minimum balance is $25 pain is at $25 by the first and the best thing to do is to have auto-debit from your debit account to auto-debit that on the first so that no matter what they're always going to get their minimum payment they can never say you're late on any payment so pay their minimum balance on your due date which is going to be whatever that days we're using the first for the purpose of this video pay your minimum balance by the first between the first and the pen that's when you paid that lump sum off you can spend whatever you want to person at it but by the time the tenth comes you need to have the entire balance or something that reflects less than 30 percent you just have at least 70 percent of the card basically to spend that much but you want to get it below 30 percent so again if your limit is $1,000 and you spent nine hundred you want to go ahead and pay off a good $700 by the tenth because again remember that that crazy where it's like a koala day using green wingding cycle clothes it is when you want to pay yourself off by or you want to get below the 30% ratio by the cycle of day so again your minimum payment is due on the first let's take $25 pay that $25 on the first when the night rolls around and I kind of give myself a day or two before the days that they actually give me to give myself some cushion so that if something happens the paper doesn't go through for another 24 hours I still have that one two today buffer so what day your cycle closes on the 10th on the 9th that is when you want to pay down whatever balance that you have or you want to get under that 30% bracket so again if that credit card is $1,000 and you charge that I'm going to and dollars you want to get it to be under $300 I would say number 200 to be safe by the tank because that's your cycle clothing so now those 140 days after the 10th 11th of the 12th would it be reported to the credit agencies they're not going to see they don't know anything about that $900 that you spent because guess what you covered it by the time that cycle closed out so now we get reporting on the alum there's a 12-8 now shows that you've used less than 30% of your actual credit so you have 70% of credit less to use like your 70% good to the present world that's how you're being looked at like you have 70% of credit less than that's how good you are so again familiarize yourself with these to turn call your credit card companies and ask ask them these two things they're going to be confused and I'm going to know what's going on and we have to put you on hold and they have to look some stuff up because again credit is really complicated I don't understand why it was it meant for us to get it I can't you understand but it is one of those things where they're going to be confused so you want to just make sure you get those two answers out of them they're going to tell you a bunch of stuff and I hate when I call and I ask you a question a direct question you don't give me their answer so please remember to stick to these two things ask them one is your spot a cool closed date and when is the data they report it to the agency guarantee they're going to be one to two days apart from each other so they tell you the 10 the close date the credit reporting day maybe 12 maybe 13 14 whatever it is but it's going to be a few days before that cycle close date and that's the trip to credit it's just that easy you can keep your score up you can keep your score high with just these using we're going to advise the college students don't get a whole bunch of credit cards don't I know everybody's saying oh it's going to follow up system here is blah blah blah but these days credit card companies are coming for you and they are waiting for you at the door so they heard about you so don't even try ours because you don't know what's going to happen in seven years you don't know what your life is going to be like you may want to buy get a condo evening I mean it so many things that you want to do with your life post college that when you're in college you don't really understand what's going on all of that is over you pull cops they don't get a bunch of credit cards get one just get one because you have no credit if you don't have a credit card so this get one card don't get an outstanding balance they want to increase your balance don't increase an assumed you understood those two things that I've just talked about the cycle closed date and the date is reported do not increase your valve again until you understand those things and you've been paying on it and you see it working for you and you see your score rising because that's when you really know that you've got this thing down and you understand credit so it's just that simple don't live outside of your means don't spend more than you have here's the other big secret to the credit card thing how it increased my core here's the trick you have a debit card and you have a credit card right let's say you have a job and you're getting a dart deposit twice a month okay you did our deposit into your debit card account and checking account customer your credit card to do once a month here's what you're going to do you're going to leave your dental card at home I know what you're thinking I may need to take a shower leave your debit card at home only take your credit card and spend whatever you normally spend on the debit card spend that on the credit card even better things make sure it's a rewards card a card that is rewarding you for using it a card that is going to give you at least 1.5% cash back or higher so I have capital Doug Carlin gives me 1.5% cash back on all of my purchases so use your debit card leave it up running all this you leave your car home and use your credit card as if it were your debit card so you're at the grocery store you're swapping tickets for Subway you're going to the movies wherever you're going likewise like on your credit card keep in mind what that balance is people don't go over the balances whatever you charge up you're not going to pay off with that test that you're getting on the 1st and 15th so to check then you get a month our deposit into your debit account you're going to pay off in full what you spend on the credit okay so you understand what's happening here you're using the credit card as a debit card so you're getting paid for using your own money regardless now this only works if you apply that concept I explained earlier where your understanding the cycle closing and the data gets before this only works if you're paying off your balance less than 30 percent of what your card is worth before the cycle closing again this only works that way don't just go out and spin it like a debit card and then when you get your dollar deposit from their job you're like oh this is my money no this is the money that you spent so just pay it off that will wait 5% cash back is going to add up depending on how much you're spending so you can make that money back that you're spending you just have to use it in those too late so England clued in to close this video out one call your credit card company ask them when the cycle closed date is it is different from your due date not going to tell you all we doesn't matter know you want to know the cycle closed dated to pay off the minimal payment on the credit card companies due date but when your cycle closed they comes pay off your card either in full or less than 30 percent okay you want to have more than 70 percent of what you owe on the card by this cycle closing you have to pay off more than 70 percent of what you owe on the card if it's $1,000 current and you use up about not you want to pay off at least $700 that's going to come in where you were spending your credit cards like your debit card when you're darted deposit comes from your job and your paycheck is serviced depositing into your debit account that money now is going to be used to pay off what you use on the credit card when you reflect it like a debit card okay now when you if you don't have a credit card you think about what kind of hard to get the best advice is one get a rewards card roller cards get a card that has no transaction fees no ATM fees okay Capital One has a really good no hassle card it's the Platinum Visa card that card has no international fees that card has no trends around which has that should be no what is it making you 1.5% cash back like that's a decent card to start off with follow these things and I guarantee your credit score is going to go up it's going to be really good no one talks about it this is I don't understand I watched in the Orman a lot and there's certain thing that you talked about that helps you I'm hoping that I can put this in layman turn so that you could understand exactly how credit works and how it can work for you then believe you're headed for I'm telling you right now I came from a really really low place in my credit score when I graduate from college I had like six credit cards I know what I was doing all of them was charged up people were sending me letters just was going to collection but I couldn't understand and now I finally understand and I got my credit score above the 700 I promise to God that I would relay this message to you and I would help someone else because I was in the bad place when I got in from college I was just like honey who helped no one probably there's no class ecology at pages news it's so funny how this was the first appearance in the real world but you guys are from houses like what's it you want to go back to college just where do people get their masters it's like food so I'm hoping to this helps you please come in a little let me know if you're going through any financial problems you know let me know just helped you at all or if you have any questions or you confuse or whatever I just smiled it this thing came off as clear as it possibly could be so thanks so much for watching I'll see you in the next video

Channel: StyleNina

Views: 147,854

Keywords: how to build credit, how to raise your credit score, credit score to buy a house, how do credit cards work for beginners, credit cards for bad credit no deposit, credit cards for beginners with no credit, credit score hack 2020, credit cards 101 how to build your credit score asap, how to improve your credit score fast, credit scores fully explained, how to increase your credit card limit, understanding and mastering credit cards, understanding credit cards, mastering credit cards

Id: PcC6m7bEIM4

Length: 13min 41sec (821 seconds)

Published: Sat Feb 18 2017