Best Way To Build Credit With A Credit Card

The best way to build credit with a credit card. I am a massive fan of credit card. Appropriate use, not sloppy use. So many people are so freaked out with the whole debt conversation because you don't understand debt. So let's start with a definition. Debt is the cost of money. So you are either going to have a credit card as a high interest payment, so you're going to pay to use that card, which is a ridiculous model. There are cards that start at 0% and you can keep them at 0%. But debt is also people paying you interest for the use of your money. Call it hard money loan or a note holder. So I'm a note holder in many, many cases where people are paying me anywhere between 12, 14, 16% interest to use my money. So it's just the cost of money, but there is such a negative connotation to having debt, holding debt, arbitraging debt, and really using it properly. It's fascinating to me. So it makes it challenging to teach many of you how to use a credit card right. So let's talk about how do you qualify for your first card? And this is critical at 18 years old and how to do it right. Second, how do you choose the right cards and then use them appropriately? And last, how do you properly use those cards to build wealth and use it for a family legacy? So first, how do you get your first card? Well, you don't apply for one, you apply between four to six cards at one time. And you have to put in income projections. Now that's not what they're going to say on the application. It's going to say, how much income do you make? So you can imagine an 18 year old or somebody, even like I've done a lot of work with football players in college, they're not counting their whole scholarship, which many times those scholarships and some of the athletes now get NIL money. I mean, some of them are making 70, 100, and $250,000. If you are only making a small amount of money, but you plan on getting a job, so at least put 24 to $36,000. Now you can't be fraudulent, but put your projected income, not what you're making today, so you can get some room to move on that credit card. You want to do that in a 24 to 36 hour timeframe, because they're going to be pulling hard pulls on your credit. So your credit will go down if you do it effectively all within 24 hours, and you apply, say, to four to six cards, and you really want four to six, because you want to pull once, your credit score should only go down maybe 10, 20 points at the most. If you do this sporadically, you do one, and the next month do one, and the next month do one, over the course of, say, six months, and you apply for six, you're probably going to go down 60 to 100 points. So it's really imperative that your first cards are done very quickly in the same timeframe. Now the cards that don't matter as much are your bank cards. So say you bank at Chase, or Wells, or Citibank, or wherever you bank, those cards that come with your debit and credit with that bank account, you want both. You want the debit, just in case you need for emergency situations, we'll put that debit card away, because a debit card is pulling money straight out of the cash balance of your account. Why not use the credit card where you have 30 days to use their money and pay it off in full? That's how you keep 0%. So let's just say appropriate use of a card. And how do you choose cards? Let's do both of these. So appropriate use of a card, say you get four, and you want to assign them very purposeful direction. So for example, my daughter's 18, she'll be going to college next year. So she will end up walking out with four, at least four cards. One will be for gas, one will be for food and coffees and things like that. One will be for her schooling specific to track her schooling, you know, books, supplies, things like that. And one will be for other housing and personal items. So very specifically aligned on how she uses them. She will be required to pay them off every 30 days. Now, if you get yourself in a little bit of a bind, we have over 500 funding sources that can help you get back to 0%, refi them to 0%. Do not go to the National Debt Reliefs and all those reconciliation places. They're going to charge you a fortune. It's going to cost you a ton of money. And I just saw one of those contracts recently. It's a 30 year contract, and there isn't a way out. I sent it to one of my lawyer friends, and I said, how does somebody get out of this? They're going to charge them more than the debt was, but their payment looked like they could handle it. Because remember, people are wired to can I afford a monthly payment? Not like, do I want to look at debt? Like I don't even look at a monthly payment. I don't look at like price tags. I look at how much are we making? How much can we save? How much are we margining? Where do you actually get to keep? That's how an entrepreneur thinks. So many of you, you're thinking so improperly about debt. When you grab my book, which I need you all to grab my book. I'm going to give you the first three chapters of The Millionaire Maker right now. Read the first three chapters, do a gap analysis, fill it out, call our office and ask to do a one-on-one session. Then go ahead and get the whole book. I'm actually just doing a whole reprint of stock. So go ahead and order the book. And at the end, page 194 is how we get you out of debt millionaire style. And it's a very compounded power down process to pay off debt. Now, how do you choose cards? Choose real bank cards. Like again, get American Express, get a Discover, get Chase, get Citibank. You want to get the big banks. You don't want little retail. You know, Home Depot's for Home Depot. What's it going to get you some discounts over at Home Depot? But retail cards are for retail purchases. We're not lifestyle people or investment people. That's not going to impact your points like overall. It's actually doesn't affect your overall FICO score. So you want big banks. And here's the truth, the financial system. It tracks your financial viability based on how much are you making? How much are you spending? How much can you pay off? I mean, I've paid off well into six figures of credit cards just in one month because of the amount of either ad spend or marketing or things that we're doing inside the company. So the amount of money in and the amount of money out affects whether they're going to give you more and expand your limits. The one thing is in the beginning, when you work with us and you get say a company, an LLC or an S Corp or a C Corp, and when these are all US terms. Principle wise, it's the same all over the world. Those accounts have corporate credit. So there's you and your social security number. And then these companies have corporate credit. So you have a card, they have a card. You will in the first three to five years, depending on your personal credit, will impact whether you have to personally guarantee these. But then after three to five years, you want to make sure your social security number gets off those business cards. And it's a pure business card in the tax identification number right by itself. So before I continue, I want you to subscribe to the channel. I have so much to teach you about this. This topic specifically, I have hours to teach you. So I have a huge playlist. Make sure you go grab it up in the search bar, go through the playlist and really understand the use of a debit card versus a credit card. I'm a huge fan of a credit card because of now the following. So once you've subscribed, I want you to share it with 10 friends. And I want you to totally understand the use of a credit card properly. Because when you arbitrage your credit card, that's using it fully. You're going for points. Those points convert to airplane miles. I mean, talking to big banks, not the retail stores, they don't count. That's why retail cards are just my opinion, more of a nuisance and a cost. And they all ratchet up to a high 20% for interest if you don't pay them off. So just stay with the big banks for credit cards. Pay it off every month. If you get behind and get out of cycle, we'll teach you how to get back to it. So for using it for wealth, I mean, just recently we've helped a client get $160,000 of 0% for 21 months. He's a fixer and a flipper. So he's going to go use it. He's going to put his own down payment. One of the cards actually has 20,000. He could use it as a down payment. He could use the rest to do the fix, pay it off, flip the house, pay off all the cards, get him back to zero while they're at 0% for 21 months and then go again and then go again. So there's a lot of ways to build wealth by using your cards properly. And I'm going to say aggressively, but the biggest key I would say is don't do it without a mentor or coach. Don't just go try these strategies and try to make it up and then end up in a huge pile of debt because you didn't know how to use it right and you didn't know how to invest it properly. So if you have any questions, go to asklauriel.com, A-S-K-L-O-R-I-E-L, ask a question, make a request. We'll be back tomorrow.