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How do they go in there brittany does beat the bush many of you in my credit card videos have asked me given a certain situation how to improve your credit now i realize in responding to all these comments i generally give a certain path of what you need to do however i never made a video outlining this exact path so this is what this video is about you’ll see that
A lot of my other videos about building credit there’s a lot of detail about each and every single item that i do here in this video i’m just going to tell you what you need to do rather than tell you every single detail and the reasons behind it if you want to find out more information about those details you can just watch those individual videos that i have
Now this video is about building credit from scratch if you have a credit score anywhere from zero to four hundred laxity that’s really really low and this is where we’re going to start from first thing you do go to annualcreditreport.com did a free credit report you don’t have to pay a thing unless you really want the credit score get this free credit report read
Every single line of all three credit reports and if you see any errors call the phone numbers on it and make that correction with the credit company you don’t actually have to pay for actual credit score because you can actually get this for free through credit cards if you want to you can also get a credit score from two of the credit bureaus from credit karma
Some people come to me and say hey i have credit card debt collections and also credit card debt how do i improve my credit score well first thing you need to do of course is to pay off the collections and pay off your credit card debt of course it’s very important to gather enough money to pay off collections because that means you’re meeting your obligations once
You do that of course your credit score is going to improve paying credit cards that also improve your credit score even if you’re in good standing because it lowers your utilization ratio you might ask hey how do you save enough money to pay off your credit card debt and pay off collections well you minimize your spending to a bare minimum you save just one month
To three months worth of the emergency fund and anything over that over this you pay your collections pay your credit card bills and make sure you pay all those down to zero and you’ll see very very good things happening the next thing you can do is have someone that you trust and someone that trusts you as well to have them add your name to their credit cards if
They’re very responsible with their credit card it’s going to help your credit score another thing you can do is have the same person add your name to their car loan perhaps because if they keep on paying their car loans on time it’s going to show up on your credit report as something that’s good and then it’s going to improve your credit score as well if you do
Not have any credit cards at all you need to get a secured credit card the secured credit cards tend to be easier to get because they are secured with your own cash you have to pay money into it in order to spend money sometimes there’s also an annual fee depending on how bad your credit is after you get this credit card of course every time you spend money on it
You need to pay on time might wrinkle building credit really quickly on secured credit cards is that you really need to spend up to the limit of the credit card now you only want to use money that you would anyway not actually try to spend money on it just to reach the limit after you spend to the limit on the secured credit card that you do it once a month you’re
Going to start to notice that hey you really need more credit and you’re very responsible because you pay it all off after a couple of months you can ask for a credit limit increase and perhaps you might have a $1,000 secured credit cards which means you have to pay more money into the credit card in order to reach that limit so this is what i call using the credit
Card really really hard in an effort to boost your total credit limit because that’s what you want to do in order to improve your credit score while you’re pushing your credit card really hard of course you’re going to be utilizing your credit card very high which means your utilization ratio will be very high which means your credit score won’t be so good in the
Meantime what you can do actually is to pay off everything except two dollars and one cent before the statement date now if you confuse about statement dates and due dates i have a video just on that topic and it takes a while for me to explain the next thing you can do is do a self lender loan which is basically you pay into an account and it looks like on the
Credit report that it’s a loan at the end of one year where you make all these monthly payments into it you actually get this money back from a cd account and you actually have a chunk of money gets returned to you the net effect of this you end up paying something like 70 80 dollars for one year however the advantage here is that it looks good on your report and
You’re paying for the privilege here in order to have something look good on the report i’ll leave that video over here if interested and also leave the link down below on where you can get the self lending loan by the way if you do get the self lending loan through my link down below you will help in s at this channel if you’re in a state or in a different country
That does not help self lender available to you you can go to a local credit union and get an actual credit builder loan this is where you actually take a loan out from the credit union and you make monthly payments back in so it’s a little different than a self lending loan because when you put money into a self lending loan it keeps you from spending it however
When you do a credit union credit builder loan you get a whole bunch of money and you might be tempted to spend this instead the other big loan such as student loan car loans personal loans mortgages you just have to make sure those are in good standing that you pay every single month you do not necessarily have to pay those off in full in order to get your credit
Report to look really good the credit report really just tracks to see if you are responsible pair of debts you do not necessarily have to pay all those debts in full especially because they’re so big it’s going to be really harder to like a lifetime commitment to pay off a mortgage actually the more important thing is to pay off your credit card debts because
That has an immediate impact on your utilization ratio finally when your credit score reaches about 650 and you should be able to do this quite quickly probably within a year then you should look to apply for unsecured cards the idea here is that you want more unsecured cards on your credit report then secured ones perhaps a year after you get your unsecured cards
You might want to cancel out all your secured cards because the fact of having a secured cards on your credit report it’s going to make it look really bad because the people that own secured cards are generally people that do not have really good credit when you do go apply for an unsecured credit card i would recommend going for something that has a lower credit
Score requirements such as a discover it credit card so this is a very very quick rundown i have very detailed information on each one of these steps this is just like a really quick what you should do type of video don’t forget to give me a like on this video comment down below let me know if this video helps you and if it helps you improve your credit score by
Many many points don’t forget to leave me a comment down below if you’re interested in supporting this channel don’t to check out my audible link down in the video description below and if you don’t like the audiobook or the service itself you can cancel before the trial period expires and you can still keep the audiobook so it’s a free audiobook for you and you
Can still help benefit this channel if your interviewer games i have a 30-day free trial for a game fly down below where if you just try this out you will also get this free trial and you can still help enough at this channel as well i have a patreon over here and also don’t forget to subscribe thanks for watching
Transcribed from video
[SelfLender Sponsored] How to Build Credit from Scratch | BeatTheBush By BeatTheBush
