How to Build Credit with BAD Credit or NO Credit | Juan Valdez

0 all right so how can you start building your credit without any credit or perhaps bad credit all right for those of you people that dont know me my name is Juan Valdez and if you have not already make sure you hit that subscribe button join the V fam the V p.m. is a neighborhood and a movement of individuals that are desiring dominate and do a lot more than what society has out for us to do so when it comes to credit a great deal of you people know or you may or might not know but practically at some point in time you men are gon na require credit same thing with me everyones gon na need it you know me and my company partner Samir we actually got started in e-commerce and dropshipping and we had the ability to go from 0 to 200 24 grand a month you understand making use of credit if it wasnt for actually for you understand me having the credit offered to begin business we probably would have wouldnt have actually been able to scale to that quantity and we definitely would have any other ability as quick because once again the way that ecommerce works you know it takes a while after you make a sale too they get actually the cash deposit in your account and you have to pay for advertisements and you understand your products and things like that so certainly if you do not have you understand much resources when first starting then they can restrict your service and we initially began you know we didnt have much resources we most likely had $2,000 mats that we can afford to buy our service so credit was huge for us but what I desired to discuss today was 2 various methods you can actually begin working on your credit even if you have you know no credit you know if youre simply getting started or perhaps if you have bad credit right theres a few resources that you can take advantage of and use you understand to kind of get started right how to begin constructing your credit with bad or no credit so for anybody simply starting it one thing that I believed was super funny is that when it comes out to getting going with credit its like a catch-22 since you in fact need some kind of credit or credit history to actually get credit so regardless like youve currently gon na need credit at some point in time even just to begin with credit you require credit for anybody thats simply getting started right which credit maybe you might have you know lets say you have a score under lets say you have bad credit right you have a score under 600 which is totally great since obviously all of us got to start someplace so theres nothing incorrect with that one of the methods you can get started is with the secured credit card and the 2nd alternative you can likewise use for an you know if you have bad credit or no credit it whats called a credit builder loan now this is really quite cool because when I was very first starting I actually didnt understand what a credit builder loan was and Im actually simply you know just recently starting to find out more about it and how it works so I figured I d likewise appeared with you guys because I know undoubtedly you people wish to make use of various resources that might perhaps assist and you understand some faster ways that might help you conserve time and this credit structure one is really pretty cool and its one of them so the way I protected charge card works is pretty basic so essentially you would go to a bank and you would transfer you know lets state five it depends upon the limit the limit you can it all depends upon the bank and you know your credit and things like that however basically you would go to the bank you would provide a deposit of lets say 5 hundred dollars and they would hold that as security and what they would do is it would then provide you a credit card that has a $500 credit line and you d have the ability to utilize that credit card to quite much buy anything the reason they require that $500 deposit is so that they can have it as security because of course youre being available in to them you referred to as a brand-new person with either bad credit or no credit so certainly they need to have some type of collateral in case you understand you do not have in case you cant make your payments or you understand for any factor you miss out on a payment or anything like that so clearly they require to have some kind of security due to the fact that you have no history this is actually a fantastic way to start because they basically you know guarantees even if you miss a payment theyre gon na have that cash there you know readily available to you understand secure that payment so typically ends up where secured credit cards is ends up being a fantastic method to get started because youre protecting you understand whatever youre investing that its a practically already protected due to the fact that you currently had that deposit there in the very first place so again this doesnt mean you wish to get crazy and simply you know put down the deposit get the charge card then spend it right now you still want to watch how you spend you know with you understand when youre very first getting these credit cards but this is one way you can start in the best part is you know after you start developing like that history know youre paying it off on time you know and things like that they report all the history of your payments and whatever to the credit bureaus which begins to slowly develop your credit now from there you can then like increase your credit limit and things like that but this is an excellent way for anybody to get going with no you understand without any credit and even bad credit they do generally you can get authorized for this you know almost all the time I would say since again you are giving the deposit for the credit that theyre providing you so its practically like you understand ensured the next one is a credit builder loan now this is something again that I didnt understand excessive about I actually simply recently began discovering you understand a lot more about it the way a credit building loan works its not like a standard loan that you would get to get like a like a Lamborghini or to get at home clearly we wish to get a loan for those things possibly later on at some time in our lives however what for anyone simply developing their credit youre most likely not gon na wish to get a loan to get a vehicle or get a home that you most likely wont be able to get one and if you do get one youre probably gon na have like some crazy you understand rates of interest so undoubtedly you dont desire that all best so the method that credit structure loans works is so you essentially get a loan and the method that you know the loan works is that the bank you get the loan from theyll take it and theyll put it in a different cost savings account and what you do is now you start to you understand make your payments towards the loan that you have in that savings account and what takes place is you know with that loan that you have out you actually get to you know clearly make your payment on time you get to practice on that but what occurs is you likewise get to use you know the history of you paying your you understand that same payment on time and they end up sending that credit report on to you understand the various credit bureaus and thats clearly huge because again if youre taking out a loan you understand youre not investing it on simply anything its in fact a loan thats gon na help you construct your credit so its more of like an investment into yourself I believe this is huge personally just because once again its a genuine easy method to you know start getting that practice and getting in the practice of you know making your payments on time because again this loan is undoubtedly you understand not for something particularly however its more for your own credit so certainly if its something that is for your own credit and for your own great youre gon na make every effort to make the payments on time at least I d hope you do thats that would be the ideal thing to do when it pertains to credit building long you do need to try to find particular banks that do them I dont think each and every single bank does them but there is particular banks that do them and then what you wish to do is you wish to make certain you understand you go through whatever and you discover you understand what sort of interest is included we understand with that loan generally that theres some sort of interest so I would then work out a bit either with the exact same bank or perhaps take a look at various ones that you can likewise take advantage of that may or may not have you know lower interest rate certainly the lower interest rate those of you guys that do not understand about rates of interest generally the greater rates of interest you get on a loan the more you end up paying long-term for the loan the lower interest rate you get the less you know you wind up paying long-term for the loan see you so you want to make sure youre searching for one that has a lower rates of interest now when you do both of these its pretty cool since they are what will happen is when youre doing both itll in fact begin to build your credit a lot faster than just doing one so if possible absolutely start with a protected credit card since nearly all the time you can do that now I secured loan you know that a persons a little might be a little bit harder but its still really possible to do it you know after you started constructing credit rating and has some trade lines in you understand now youre gon na have for anyone that doesnt have a credit history after you begin doing these things you basically now begin to develop you know some type of credit rating or you know some type of credit now youre officially gon na have some credit and it might you know it might be anywhere normally the credit rating might be it starts anywhere from the huge business are FICO and vantagescore those are the most typically utilized ratings and it begins from as low as 300 or it could be as high as 850 so obviously you may when youre first starting you may be a little closer to 300 variety however then from where from there obviously youll work your way up and if you have some kind of credit already maybe listed below 600 youll simply begin to see obviously your credit boost you know by utilizing both of those strategies you begin working on your credit as quickly as possible theres a big advantage to it initially indicates that you have an excellent history of paying things off you get to take benefit of lower interest rate right and this is gon na be substantial due to the fact that when it comes time for you to you understand lets say get a house or get an automobile latech Lamborghini I wish to say that since clearly you understand I like Lamborghinis if you do not have excellent credit and you understand you attempt to request a loan one they may decline you from the loan clearly so that will put you back from getting either the home the car were starting a business – if they provide you the loan youre gon na have a super high rates of interest which once again if you get a loan with very high rates of interest youre gon na end up paying you understand way more on the loan than youre supposed to right so clearly you wish to try to prevent that yeah those are the big pretty much like some of the most significant – things so the methods you can avoid that is you understand instead of you understand spending your time and resources attempting to simply head out there and initially thing off the back like as quickly as you get a task you start making some money attempt to you know that will depends naturally if you have excellent credit or not if for anybody that doesnt have good credit you understand as soon as you start making money or you understand you can begin getting more opportunities coming your way you want to ensure you not capitalizing you just trying to you understand take out a bunch of credit and get all these unnecessary things you would it would be more helpful for you to deal with establishing your cut it initially before even making an application for you understand these different charge card the ones that are different other credit cards that arent protected charge card or you know any kind of home mortgages or any kind of vehicles or you understand pretty much any type of loans or charge card you desire to keep away for when youre first beginning and constructing your credit since when youre using for loans credit cards with a lower credit rating whats gon na occur is youre again going to either get either decrease the loan or are you gon na get a really high rate of interest and youre gon na wind up paying a lot more for that loan or charge card then you would have if you would have just waited you know begun to develop your credit with either of these two methods and after that making an application for these credit cards or loans you understand later on once again I wish to ensure you people keep those things in mind once again credit is substantial I personally want I wouldve begun discovering credit a lot faster because for me like now that Im constantly using credit for different things like you understand financial investments charge card and doing all these various things again they need to pull my credit for me to get a phone I was like you understand if envision if I didnt have credit I wouldnt have the ability to get a phone when I got my first vehicle on first BMW thankfully enough I d currently invested some time constructing my credit so all this hells able to get the BMW not have much of a deposit down and not have as high as interest so obviously able to utilize my credit for that and also when I you understand move into a house or you understand Im moving into this house here Ive currently moved a few times here in California Ive been able to utilize my credit and not need to have any kinds of high deposits and exact same thing with like buying a car if you have bad credit they usually quire a lot greater of a deposit and your greater rates of interest so bottom line concentrate on constructing your credit start doing as early as possible its gon na be super useful in the long run if you men did get value from this video make sure you give me a thumbs up likewise leave me a comment let me understand you know what youve currently done to develop and construct your credit what things youve experimented with what has worked what hasnt you understand offer me some feedback and obviously if you have not currently make certain you struck that subscribe button join the V fam and Ill see you men in the next video [Music] Check out More: BEST BUDGETING & & SAVING MONEY TIPS + INSPIRATION TO REACH ANY GOAL IN LIFE

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