Getting into credit management, how do you build credit and this is where credit card companies are making so much money off of us.
Younger people don’t really understand it. You just keep getting credit card after credit card maxing it out and not paying the balance and that’s the most important thing. Just to have that discipline which a lot of people don’t want to say like 99% of people don’t. That’s why these companies have no problem lending all this money to you.
When you’re young or old, it really doesn’t matter. So, the keys to credit management; get your first credit card. Everything that you put on it, whether it’s gas, netflix, books, make sure you pay that balance within the month. It’s super simple. All you got to do is be disciplined and if you want to continuously build your credit score and get it higher and higher, you need to have at least three credit cards and make sure to put your Netflix, your Apple music, just a little things on there.
So, if you have a thousand dollar limit, you should stay under $100. I mean obviously you can go more than that. But, you know as far as reporting to like FICO etc you want to stay under that 10% market, you just want to pay the full every single month.
Now, let me get you into the reality of things. It’s so easy to tell you what you should do. But, you know the reality is I personally have almost $100,000 of student loans that I’ve been paying like a lot of money and I don’t even use my degree.
You’re still gonna put that in perspective is the amount that you’re paying for college going to benefit you when you graduate that value you know are you gonna have a hundred thousand dollar student loan, get out of college, work up to the point where you’re making easily enough to just pay that. Student loans aren’t really a bad thing. But, that’s just something to be aware of.
Because you’re disciplined doesn’t mean you don’t fall off the wagon every once in a while. It is really easy to swipe your card over and over and over and then that monthly bill comes up and you’re like how am I gonna pay this and then you get stuck paying interest.
Sometimes, you might be doing exactly what I said; you pay your balances in full, but then your tyre blows out, your windshield gets cracked, you’re sick, you got a medical bill, you know this or that. I think a lot of people try to preach a message, but they’ve never been through.
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