How to Build Credit from Scratch! 

As a symptom of how broken the system is, some credit companies have started offering paid services where they'll take a "closer look" at things like paying bills in order to boost your score. With that being said, building credit is really not hard in the U.S. unless you are abjectly poor, in which case it's only one of the problems keeping you trapped in a cycle of debt. As long as you make enough to pay for rent and groceries, it's pretty easy to get a high-tier score after a few years of a responsible credit card use. Which arguably makes the entire system more of a joke, since a good score doesn't even mean much. At some point, you reach a plateau where even rich people can't get a better score unless they do weird crap to get the number to go u artificially, which some people do even though banks don't care anymore beyond that plateua.

"As long as you pay your bills on time" I mean you just described credit building... Things like your phone bill are reported to the credit bureaus.

@@TaliyahP Yes, but you don't need to do credit cards and other stuff to get a good credit score was my point. Which is good because I'm firmly against credit cards and have never had one and never will. It's just living your life without doing anything special which is not what they were taking about in the video

Heard you guys have a good education system too.

The bank ain't gonna let u buy a 400,000 $ house just cause u have money in your bank

You should take the opportunity to evaluate your spending every month by actually looking at the bill. Automatic payments are nice, but if you're blind to the fact that you're incurring a $3000 a month spending debt against $2000 a month of income... the autopayments aren't going to help you here.

@@sor3999 Setting up automatic payments doesn't mean you stop looking at your statements and monitoring account activity. Lol What a strange thing to assume.

It is a scam. This is how the youth are stopped from buying cars and houses. Poor staying poor etc.

All due respect, Europe's financial system is way worse at assessing non-performing loans. Even the most stringent German banks have a significantly higher level of bad debt they will eventually have to write off, and that will trickle into the economy at the worst possible time, like an impending recession/depression. So while America does have a harder system to build consumer credibility, it probably has a good reason for doing so.

@@yankeefederer1994 the reason why we have a credit system in the US, is to keep minorities from buying houses. Look it up, it was created with the idea that black people wont be able to buy a house, and thus the white mans wealth is protected and redlining is legal again

@@rameneater1437 Which is why everyone has to be vetted by the credit system today? Not saying one can't be discriminated on a loan application based on the ethnicity of the name, or other factors. But performance history is a very good way to figure out whether someone can/will pay back a loan.

@@yankeefederer1994 it was CREATED with discrimination in mind

Okay?

How long did you take btw?

@@luisandrade2254 Within the first month I used the card and paid the balance off several times before the first bill was even ready. Then, suddenly, I had a credit score.

@@davidnievesjr.9478 wow that’s truly impressive glad for you

would you have had those streaming services tho without credit? if not then you just playing yourself

Yeah, that 850 is elusive. I'm at an 820 and I've done pretty much what you did.

Humble brag

Congrats! I Finally made it to 822 in my 40s after doing every wrong thing since college where they were staked out dispersing credit everyday. I cringe at how much interest I paid. Experian says I "need" mortgage exposure to go higher. Eff that. Would love a house but not at these modern prices and certainly not for a higher score.

I started late at 22, so far so good sitting at a score of 745. The goal is to make it to the 800 club by the time I want to buy house.

@@bagery You did well! The banks were looking for new -meat-, clients to snag. That wasn't cool. Cool that you didn't take the bait.

I'm confused, why on on earth would you borrow money for a car?

@@flopsinator5817 they're not recommending borrowing money to buy a car, they're saying good credit history will give you a better interest rate on those loans

@@Austin-fc5gs The first rule of buying a car: don't borrow money for it! It's just that OP and Two Cents make borrowing money for a car sound like the most normal thing in the world. It's horrible financial advice really.

How about just buying a reasonable flipping car and house instead that you can actually afford?

@@penultimateh766 For almost everyone it's virtually impossible to buy a house without borrowing money.

Yeah it's a product mostly offered by credit unions.

Yeah, debit cards and credit cards can functionally be the same. Just debit cards require the money in the account up front while the credit card is after the purchase. Only difference is the order here. But many young people treat getting a credit card as "free money" they somehow think they can just run away with lol.

*debit

Exactly

My dude poor countries, countries that are fighting armed conflicts, and the countries that are ran by dictators that America is a magical place. What conservative politicians fail to explain is that most of the people that come to America are usually desperate and are not coming from stable First World countries.

It would if rent and bill payments were loaned money, but they aren't. You can absolutely treat credit cards and loans the same way, but that's the distinction.

@@sor3999 But you do still need to pay month to month and thus can show you are responsible and can pay on time, which is what matters

One of the credit reporting agencies does have something that allows certain bills to count towards your credit score. It's called Experian Boost. The problem is that it requires you to link your bank account so they can look through the transactions and verify that you're paying those bills which is a privacy nightmare IMO.

@@sor3999 the power company runs my credit before hookup but dosent report unless i have delinquent bills

That was the idea! it was intentionally rigged to keep poor people, black people, and migrants from climbing up the system.

Imagine hating free flights, free hotel stays and free global entry

The whole credit score system is a usury based scam.

Never lose your critical thinking skills. Even if your friends are all doing it.

a great job would be listing the names and addresses of the people who set these policies

I don't want to give you too much heat, but it's great to see Philip doubling down on great fashion sense like the tattoos - though I wouldn't mind seeing the mustache again. Thank you for your videos as well; they genuinely helped me out a lot, I hope they stand to get lots of hits in the future, and I'll bet you know what I mean.

Sorry, he just exploded after hearing the word credit.

Living under a rock huh?

@@jollama Yep. No mortgage payments to worry about.

People do this and from what I have heard it is a good idea

Definitely a good time to start building your credit though! I got my first card at 19 and it allowed me to build up sufficient credit history to buy a house at 27, so definitely get to it!

Don’t worry about any of this and just keep playing Minecraft

@@0_1_2 I don't even play Minecraft

@@Sonicfan138 I've been thinking about a secured card but I'm just not sure if I would be responsible with it since I don't work all year round right now because I'm a college student

​@@lilyyoung1002 That's ok! I would still highly recommend getting a secured card if it's available. If you don't have a regular income, just it a couple times a month (coffee, lunch etc) and pay off the balance. It's really never too early to start. And if you feel like you'd use it too much, don't carry it on your person at all times and don't use it for online purchases. Leave it in a drawer (secured, of course).

Read this book, or listen to audio book: "The Simple Path to Wealth".

You act like you’ve never heard of Google

please and thank you. owning property and renting it on air bnb

Imagine having to rebuild your credit

Living under a rock huh?

lie. It is being used.

@@catkasimir A trial doesn't mean it's approved yet.

It's real and thriving. Good documentary on it

The best thing you can do. My parents did when I was younger and a month after I turned 18 it was so easy to open my open student credit card.

Just sounds like it was "useless" for you if you never got a mortgage or bought a car or need higher credit limits. And no one is going to "manual underwrite" your loan. You already have a known score and they will use it.

When you pay off a long term loan it may actually hurt your credit score. Credit score is not necessary about getting out of debt. It is about showing that you are a good borrower, can manage these debts and pay them on time. With the idea of letting you borrow more money. When you paid off the loan, it lowered your credit score because you have 1 less loan (amount of money lent to you) in your credit report. Also, it means you are now eligible to borrow more money from a new loan or credit card. So you are higher risk. Credit Reporting companies want to see you in debt. You appear to be trying to better yourself by getting out of debt. One last thing your credit card company or even local bank/credit union should have the ability to see a detailed report of your credit and why it is lowering or being raised. That can be accessed using a mobile app or web site easily.

@@Marthastewart209. so i guess the question is, how do i stay debit free ( and moreso not have to pay usury charges [aka interest ] on anything ) while keeping a crdit score up? I spend money, i get a credit hit. I pay off debit, i get a credit hit. Its lose -lose.

But without the credit system any poor person could just navigate life without discrimination. Who would provide our prison labor? 🤷‍♀

@@hollyelbik5288 other people also duckduckgo sucks and is spyware

@@killertigergaming6762 Also look up mudsill theory if you want to laugh or cry or both.

How? You used co-signer?