I just turned 20 last month and I’ve been watching your videos for a while I have 2 credit cards with 22,000 in limits and I only spend around 1k a month total on both and pay them off completely every month my fico score has skyrocket to a 760 and is still climbing thank you
How did you get 22000 if I may ask I’m 21 and I’ve had my first card since 18 and I have about 12 cards limits around 1500-4000 with a current score of currently 720
@@owbeontaylor953 my first card I had got a 2000 limit on it and I used that for about a year and I got a decent paying job when I applied for my next one and they just decided to give me a crazy limit on the next card
If credit cards are used responsibly, they can be a really powerful financial tool! The Chase Freedom Unlimited is my most recommended card for beginners on my channel and I am really glad that was one of my earliest cards. Great tips throughout this video Humphrey!
yeah, nobody taught me how to use my credit card. However, I didn't like debt so I rarely used it, and if I did I just paid it back when the bill came. I just treat my card as a debit card to collect points. So basically passing money from one hand to another.
I chose the Fidelity Visa Rewards as my first card. No annual fee and 2% cash back on everything which can be automatically invested into a Fidelity brokerage account. Decent way to passively supplement your portfolio.
@@albaniaball897 If you choose automatic redemption instead of on demand it’ll make a deposit to a Fidelity checking or brokerage account once you earn $50. Then in your brokerage account you can setup automatic investments. I have a separate account funded only by cash back money cause I think it’s fun to see how much “free” money I’ve earned.
Can you clarify how those percentage cashback rewards work and how to use them or redeem them in a proper manner? And can you also elaborate on what is the best way to aim for the signup bonus during the initial 3 month period? I'm assuming if it's no feasible to the individual then they should not worry about striving for that signup bonus? Thanks alot Humphrey been here since you started and it's great to see you having more subscriber and overall social media interaction 🙌🔥
The financial market has been a really tough one this past months, but I watched an interview on CNBC where the anchor kept mentioning "... LAUREN SIMMONS...". This prompted me to get in touch with her, and from October 2021 till now we have been working together, and I can now boast of $540k in my trading portfolio
1 and 2 are the best tips. Have definitely run into a few times where I've put the chicken before the egg and had to work hard to make sure I didn't carry a balance. Thankfully I was able to pay off a rather high statement balance e but I'm thankful to not get hit with that APR 🙌 I definitely didn't pick up the "right" 1st card and wish I would have seen this video when I was applying for it....
Legitimate newbie credit card mistake I’ve made was not knowing my cutoff date and paying the balance the day after… thankfully, they seemed to be lenient on that occasion lol
I think the 5% on gas for the Freedom unlimited is a temporary perk only offered to certain customers. the 5% on travel is for travel booked through the chase travel portal. that said, it's still a good starter card.
I’m still a little confused about closing credit cards. I also heard that it doesn’t actually impact your credit history as long as it was closed in good standing.
I’ve got a good one. Don’t get sucked into the 6/12/18/24 month 0% interest if you buy something over “x” amount, types of credit. Sure, it sounds good, and can be very beneficial when making certain purchases of $1,000 or more, but I would suggest waiting until you have the cash to pay for some items. For the most part, these types of credit lines have interest rates around the 25%+ mark.
Question I’ve been trying to answer about credit utilisation: if you are going to pay off your balance in full every month regardless, does how much you’re paying off affect your credit score? For example, is buying a single $5 coffee each month equivalent to buying $5000 worth of Pokémon cards each month if in both scenarios you pay off that $5/$5000 balance in full each month? Thanks!! Math/CS teacher here who also helps students with financial literacy 🤓
In order to build your credit score up fast, each month you need to have a balance of between 1% and 9% of your total available credit, which will include any card you or your cosigner/spouse have on any account that reports to the credit agencies. 0% doesn't help as much, as the credit score companies think that they're not being utilized.
@@IraTopp I’m not too sure about that strategy, it’ll simply cost you money since you’ll have to pay interest on that. What I have heard, haven’t tried it out myself but it’s making more than one payment on your card, so if you max your card out then pay it off in full and if you use it again then pay it off again, ideally within the same month that way there’ll not only be more than one payment but it’ll show you need a higher credit limit.
Card companies report that a payment has been made on time, and the balance, once a month. That might be good in the beginning, but as your limit increases over time, it's a bad strategy. I have 1 card, and after 23 years, has a $26500 limit, and that would cost a fortune. Started out with 500, and kept a small amount on it over time, which has seemed to pay off. You just need to show credit worthiness.
I opened a Chase Preferred Card for the sole purpose of buying my fiance's engagement ring and receiving their reward bonus. I got a $1,000 bonus for spending over some amount of money which the ring definitely covered. I don't use that card anymore though and it has a $95 annual fee so I will probably close it. I did the same with the Freedom card for $200 off a new Apple Watch. That is now my main credit card that I use AS CASH like Humphrey mentioned. I also use an Apple Card whenever I pay with Tap to Pay for the 2% cash back. Better then the Freedom's 1.5%. Unless it's for restaurants then the Freedom gives 3%. Long comment sorry 😅
Even if you close an account as long as it’s in good standing it shouldn’t really hurt you since it’ll stay on your report for 7 years anyway. Therefore the rest of the cards that you do have have time for them to “catch up”
First time commenting, really enjoyed the video, recently I a requested to my bank my first credit card with no annual fee and it is for miles. Was this a good choice for me?
For Mistake #6, I've had my credit card since 2005. I've paid ALL of my bills in FULL EVERY MONTH, however, I keep getting these "Offers" to increase my credit limit with a completely different rewards system. The issue I have with this new credit card is that they offer 3% on Food Purchases, however, they will only consider Food Purchases at an actual food store. The problem with that for me is that I do 95% of my weekly food purchases from WAL-MART & Amazon and therefore no 3% reward on those Food Purchases.
I wish I watched this 9 years ago when ai got my first credit card..... I was clueless back then when I saw my credit card balance I thought the balance showed how much money you have left to spend. 😂 still paying for that mistake now with a below average credit score :(
So is having low credit utilization better than having had no missed payments? Cause I often used to max out my little 1000$ credit card and paid it in full every month.
Great video as always! I also recommend trying to start your credit history as young as possible (i.e. authorized user on parent's card as a teenager). My very first credit card at 18 years old was a secured credit card through my local credit union. I haven't closed it because I'm afraid of mistake #6, but I hate knowing that I have money held up in an account that I don't even use anymore. I don't even live in the same city that the credit union where I opened it with is at anymore. Closing it would drop my average credit history from 5.2 years to 4.1 years. Currently have an 810 credit score with no plans for a new mortgage or car loan (or other equally big purchase) in the foreseeable future. Should I YOLO and close it? With that being said, I highly advise against secured credit cards in general unless it's your only choice (i.e if you're on a sort of credit score recovery plan due to some previous financial troubles). Lastly, another recommendation I have is to pay your credit card off more than one time a month (i.e. don't wait to pay it all off at the end of the cycle). This is because credit bureaus might be pulling your usage at a time when your balance is on the high end (whatever your version of high end is). So frequent payments is good to keep utilization low.
Close it to tidy up your financial life. The age difference for you isn't that much, your score won't be hit for long. Since you aren't planning on a major purchase you will be fine. Too much is made of this section of FICO score calculation. Too much is made of FICO scores to begin with.
Quality information my friend. Thank you. You’re a CFA? I would love to hear how that process went, your study routine, how long… etc. I know a few cfa’s and I’m always fascinated to hear how their process went because the exam is so dang hard
I have 1 credit card and my credit is above 800. If I did it in 6-7 years, anyone can do it. I believe some people should not get credits cards at all or as few as they can if they are planning to buy a house. Not everyone is responsible with their cards and end up having problems. I'm not here to judge, but to state mere facts.
Good evening Sir, I also have only one credit card. I have a 781 credit score when I my utilization rate is not 0%, but it drops to 761 whenever Experian checks that my card isn't carrying a balance lol. I treat it like cash. Do you expect it to get to 800 or higher with more time? I got it 1 year and 9 months ago, and I'm 21 years old. Thanks
Really enjoyed the video! Quick question. I got the Chase Unlimited about 2 months ago and it dropped my score from 700 to 690 (my first card) now it’s up to around 710. Even though it hasn’t been a long time can I apply for my next card?
Yup. I applied for two within the same month and got them. just make sure your credit score is favored for that card or else you might want to wait so you get accepted.
Thanks Scott. Recently was thinking of opening an account in another brokerage after losing so much. Mr Scott recommendation just come in time, he helped me to trade and recover with his unique strategies.
