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

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all right so how can you start building your credit with no credit or even bad credit all right for those of you guys that don’t know me my name is Juan Valdez and if you haven’t already make sure you hit that subscribe button join the V fam the V p.m. is a community and a movement of people that are aspiring to conquer and do a lot more than what society has out for us to do so when it comes to credit a lot of you guys know or you may or may not know but pretty much at some point in time you guys are gonna need credit same thing with me everybody’s gonna need it you know me and my business partner Samir we actually got started in e-commerce and dropshipping and we were able to go from 0 to 200 24 grand a month you know utilizing credit if it wasn’t for actually for you know me having the credit available to start the business we probably would have wouldn’t have been able to scale to that amount and we definitely would have any other skill as fast because again the way that ecommerce works you know it takes some time after you make a sale too they get actually the money deposit in your account and you have to pay for ads and you know your products and things like that so obviously if you don’t have you know much resources when first starting off then they can limit your business and we first got started you know we didn’t have much resources we probably had $2,000 mats that we can afford to invest in our business so credit was huge for us but what I wanted to talk about today was two different ways you can actually start working on your credit even if you have you know no credit you know if you’re just getting started or even if you have bad credit right there’s a few resources that you can take advantage of and use you know to kind of get started right how to start building your credit with bad or no credit so for anyone just getting started it one thing that I thought was super funny is that when it comes out to getting started with credit it’s like a catch-22 because you actually need some type of credit or credit history to actually get credit so regardless like you’ve already gonna need credit at some point in time even just to get started with credit you need credit for anyone that’s just getting started right which credit maybe you might have you know let’s say you have a score under let’s say you have bad credit right you have a score under 600 which is completely fine because obviously we all got to start somewhere so there’s nothing wrong with that one of the ways you can get started is with the secured credit card and the second option you can also use for an you know if you have bad credit or no credit it what’s called a credit builder loan now this is actually pretty cool because when I was first getting started I actually didn’t know what a credit builder loan was and I’m actually just you know recently starting to learn more about it and how it works so I figured I’d also showed up with you guys because I know obviously you guys want to utilize different resources that could possibly help and you know some shortcuts that could help you save time and this credit building one is actually pretty cool and it’s one of them so the way I secured credit card works is pretty simple so basically you would go to a bank and you would deposit you know let’s say five it depends on the limit the limit you can it all depends on the bank and you know your credit and things like that but basically you would go to the bank you would give them a deposit of let’s say five hundred dollars and they would hold that as collateral and what they would do is it would then give you a credit card that has a $500 credit limit and you’d be able to use that credit card to pretty much buy anything the reason why they require that $500 deposit is so that they can have it as collateral because of course you’re coming in to them you know as a brand-new person with either bad credit or no credit so obviously they need to have some type of collateral in case you know you don’t have in case you can’t make your payments or you know for any reason you miss a payment or anything like that so obviously they need to have some type of collateral because you have no history this is actually a great way to get started because they pretty much you know guarantees even if you miss a payment they’re gonna have that money there you know available to you know secure that payment so usually ends up where secured credit cards is ends up being a great way to get started because you’re securing you know whatever you’re spending that it’s a pretty much already secured because you already had that deposit there in the first place so again this doesn’t mean you want to get crazy and just you know put down the deposit get the credit card then spend it right away you still want to watch how you spend you know with you know when you’re first getting these credit cards but this is one way you can get started in the best part is you know after you start building like that history know you’re paying it off on time you know and things like that they report all the history of your payments and everything to the credit bureaus and that starts to slowly build your credit now from there you can then like increase your credit line and things like that but this is a great way for anyone to get started with zero you know with no credit or even bad credit they do usually you can get approved for this you know almost all the time I would say because again you are giving the deposit for the credit that they’re giving you so it’s pretty much like you know guaranteed the next one is a credit builder loan now this is something again that I didn’t know too much about I actually just recently started finding out you know a lot more about it the way a credit building loan works it’s not like a traditional loan that you would get to get like a like a Lamborghini or to get at home obviously we want to get a loan for those things maybe later on at some point in our lives but what for anyone just building their credit you’re probably not gonna want to get a loan to get a car or get a house that you probably won’t be able to get one and if you do get one you’re probably gonna have like some insane you know interest rate so obviously you don’t want that all right so the way that credit building loans works is so you basically get a loan and the way that you know the loan works is that the bank you get the loan from they’ll take it and they’ll put it in a separate savings account and what you do is now you start to you know make your payments towards the loan that you have in that savings account and what happens is you know with that loan that you have out you actually get to you know obviously make your payment on time you get to practice on that but what happens is you also get to utilize you know the history of you paying your you know that same payment on time and they end up sending that credit history on to you know the different credit bureaus and that’s obviously huge because again if you’re taking out a loan you know you’re not spending it on just anything it’s actually a loan that’s gonna help you build your credit so it’s more of like an investment into yourself I think this is huge personally just because again it’s a real easy way to you know start getting that practice and getting in the habit of you know making your payments on time because again this loan is obviously you know not for something specifically but it’s more for your own credit so obviously if it’s something that is for your own credit and for your own good you’re gonna strive to make the payments on time at least I’d hope you do that’s that would be the right thing to do when it comes to credit building long you do have to look for specific banks that do them I don’t think every single bank does them but there is specific banks that do them and then what you want to do is you want to make sure you you know you go through everything and you find out you know what kind of interest is involved we know with that loan usually that there’s some kind of interest so I would then negotiate a little bit either with the same bank or maybe look at different ones that you can also take advantage of that may or may not have you know lower interest rate obviously the lower interest rate those of you guys that don’t know about interest rates basically the higher interest rate 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 end up paying long-term for the loan see you so you want to make sure you’re looking for one that has a lower interest rate now when you do both of these it’s pretty cool because they are what will happen is when you’re doing both it’ll actually start to build your credit a lot faster than just doing one so if possible definitely start off with a secured credit card because almost all the time you can do that now I secured loan you know that one’s a little might be a little bit trickier but it’s still very possible to do it you know after you started building credit history and has some trade lines in you know now you’re gonna have for anyone that doesn’t have a credit score after you start doing these things you basically now start to establish you know some type of credit score or you know some type of credit now now you’re officially gonna have some credit and it may you know it could be anywhere usually the credit score could be it starts off anywhere from the big companies are FICO and vantagescore those are the most commonly used scores and it starts off from as low as 300 or it could be as high as 850 so obviously you might when you’re first starting off you may be a little closer to 300 range but then from where from there obviously you’ll work your way up and if you have some type of credit already maybe below 600 you’ll just start to see obviously your credit increase you know by utilizing both of those strategies you start working on your credit as soon as possible there’s a huge benefit to it first indicates that you have a good history of paying things off you get to take advantage of lower interest rate right and this is gonna be huge because when it comes time for you to you know let’s say get a house or get a car latech Lamborghini I want to say that because obviously you know I like Lamborghinis if you don’t have good credit and you know you try to apply for a loan one they may decline you from the loan obviously so that will put you back from getting either the house the car we’re starting a business – if they give you the loan you’re gonna have a super high interest rate which again if you get a loan with super high interest rate you’re gonna end up paying you know way more on the loan than you’re supposed to right so obviously you want to try to avoid that yeah those are the big pretty much like some of the biggest – things so the ways you can avoid that is you know rather than you know spending your your time and resources trying to just go out there and first thing off the back like as soon as you get a job you start making some money try to you know that will depends of course if you have good credit or not if for anyone that doesn’t have good credit you know once you start making money or you know you can start getting more opportunities coming your way you want to make sure you not taking advantage you just trying to you know pull out a bunch of credit and get all these unnecessary things you would it would be more beneficial for you to work on establishing your cut it first before even applying for you know these different credit cards the ones that are different other credit cards that aren’t secured credit cards or you know any type of home mortgages or any type of cars or you know pretty much any type of loans or credit cards you want to stay away for when you’re first starting off and building your credit because when you’re applying for loans credit cards with a lower credit score what’s gonna happen is you’re again going to either get either decline the loan or are you gonna get a really high interest rate and you’re gonna end up paying a lot more for that loan or credit card then you would have if you would have just waited you know started to build your credit with either of these two strategies and then applying for these credit cards or loans you know later on again I want to make sure you guys keep those things in mind again credit is huge I personally wish I would’ve started learning about credit a lot sooner because for me like now that I’m constantly using credit for different things like you know investments credit cards and doing all these different things again they have to pull my credit for me to get a phone I was like you know if imagine if I didn’t have credit I wouldn’t be able to get a phone when I got my first car on first BMW luckily enough I’d already spent some time building my credit so all this hell’s 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 know move into an apartment or you know I’m moving into this apartment here I’ve already moved a few times here in California I’ve been able to utilize my credit and not have to have any types of high deposits and same thing with like buying a car if you have bad credit they usually quire a lot higher of a deposit and your higher interest rate so bottom line focus on building your credit start doing as early as possible it’s gonna be super beneficial in the long run if you guys did get value from this video make sure you give me a thumbs up also leave me a comment let me know you know what you’ve already done to establish and build your credit what things you’ve tried out what has worked what hasn’t you know give me some feedback and of course if you haven’t already make sure you hit that subscribe button join the V fam and I’ll see you guys in the next video [Music]

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