HOW TO ESTABLISH CREDIT 2018

In this video I'm going to teach you four ways to help establish your credit and get, you on the road to financial success., Welcome to WhiteBoard Finance where we help you master your money and build your, wealth., Today we're going to be talking about establishing credit., But first I want to get into six reasons why establishing credit is so important., The first is lower interest rates having an established credit score and a good one at, that., We actually help you become less risky to the banks., This means that they'll give you loans with a lower interest rate., This will save you literally tens of thousands of dollars over the course of your lifetime., Buying a house., Guys buying a house is actually really dependent upon how credit worthy you are if you don't, have credit., You're most likely not going to get approved for a mortgage unless your spouse or significant, other has a really good credit score or if you come to the table with a lot of cash as, a downpayment., Renting a house or an apartment., Landlords look at credit scores., I'm a landlord myself and when I see someone with a high credit score that shows me that, they're most likely going to pay rent every month., They're less risky as a tenant., Now if you don't have an established credit score it's going to be much more difficult, to get a landlord to rent a house or an apartment to you., Buying a car., Buying a car is one of the biggest financial purchases that we're going to make in our, lifetime., So it only makes sense to have a good established credit score in order to get a loan and a, low interest rate on that vehicle if you don't have established credit., You're most likely going to have to pay for the car in cash., Number five getting a job., Believe it or not employers look at credit scores to see if you have an established credit, or a positive credit score., They'll consider someone else for the position., If your credit score is low or not established Number Six starting a business., Some people go the friends and family route when asking for a loan or borrowing money, but a lot of traditional businesses you need to go to a bank in order to get a good chunk, of change., If you have no established credit chances are the bank is not going to lend you that, money., Now that we've gone through six benefits of establishing your credit here are four ways, to actually do so., The first is with a secured credit card with a secured credit card is backed by cash that, you put into a CD and is deposited with the bank that you'll be getting your secured credit, card from., So essentially you use it like a regular credit card except you have essentially a limit for, the amount that you deposited., So if you deposit five hundred dollars they will give you a five hundred dollar secured, credit card meaning that you can only charge up to five hundred dollars and that card at, any given time., So you can use it like a regular credit card for gas food bills things like that., And it's not meant to be used forever., The goal is to build up enough credit or trust with the bank that you get the secured credit, card from in order to get you an unsecured credit card with a higher limit., Number two credit builder loans credit builder loans are a great way to bump up your credit, score from 40 to about 100 points within six months., What this is is essentially a loan to your self held by a bank., What you do is you give the bank X amount of dollars let's call it a thousand dollars., Guys they take their thousand dollars and put it into a savings account or a CD., Think of this as a forced savings plan then., Then they issue a loan against that thousand dollars to yourself which you then pay off, every month., Once it's repaid you get that money back plus the interest that you've accrued over the, time that it's been in that CD or that savings account., This can also be a double edged sword guys because if you don't make the payments on, this loan it can also hurt your credit score as well as improve it., A good website that does this is called self lender dotcom., If you want to learn more about them check the description below and I'll leave a link, to that website., Number three get a coast Seiner., Equally responsible for the debt is one of the biggest problems with getting a code Seiner., And this is a great way to ruin a relationship if you don't pay back your obligation., Say for example you want to go get a car that you didn't have the established credit for, a parents or a significant other Kingo co-sign and that car with you., However if you don't make the payments the payments go back on them., The Coast seiner and that can also hurt their credit as well., Number four authorized user on someone else's credit card., What this does is it allows you to piggyback on someone else's unsecured credit card utilizing, it just like it's your card their limit is your limit and vice versa., However just like the getting a coast seiner you're not obligated to pay back the debt., And that's also a great way to ruin a relationship if you rack up a lot of credit card debt on, someone else's card and you don't pay it back., Chances are they're not going to be too happy with you guys., And there you have it establishing and maintaining good credit can save you literally tens of, thousands of dollars over the course of your lifetime., If you want to consider a credit builder loan please check out the description below., I'll leave a link to self lender dot com and guys if you've got any value out of this video, whatsoever please comment like and subscribe., It really helps support the channel., Thank you and have a prosperous day., Yeah., Hey do you think that you could co-sign on this loan for me., No it won't be like last time I promise., I got the cash., I just can't get the loan., I don't have established credit yet., No., Hello.