This is the finale of the 4-part video series about getting a credit card for the first time in 2022. How have you been following? Make sure to watch parts 1 to 3 and this episode so you can properly get a credit card. So, stay tuned and learn more about how to get a credit card for the first time in 2022.
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Key Moments In This Episode ======================== 00:00 Intro & Summary 00:30 What To Do When Your Application Is Declined 01:41 What Can Professionals Do For You 02:28 What Is The Reality That Leads To Disapproval 03:12 What To Do When Your Score Is Below 680 03:43 What Is A Light Credit 04:02 What Is A Secure Credit Card 05:32 What Are The Best Reward Cards 06:43 What Are Personal And Business Credit Cards 07:08 When Does A Business Card Come Into Play 08:34 Where Do You Need To Go Right Now
What To Watch Next ======================== How To Get A Credit Card For The First Time In 2022 | Part 1 • How To Get A Credit Card For The First Tim...
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About Loral Langemeier ======================== Loral Langemeier is a money expert, sought-after speaker, entrepreneurial thought leader, and Five Time New York Times best-selling author who is on a relentless mission to change the conversation about money and empower people around the world to become millionaires.
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This video provides a comprehensive guide for first-time credit card applicants, focusing on the credit scores required for approval, strategies for improving low scores, and the different types of credit cards available to build a financial profile. It also distinguishes between personal and business credit cards and their impact on credit reports.
How to get a credit card for the first time in 2022. This is part four, the finale. Now,
in this video, we're going to kind of wrap it up. We're going to talk about how to accelerate your
scores, how to accelerate your opportunity to get more money, and how do you really get into
that utilization. So stay tuned. And if you didn't watch one, two, and three, you're going
to have to get caught up. So go watch them. Come back to watch part four. It all goes together.
Now, typically, most banks are going to look for a 680 score or higher to open a credit card. Now,
that might vary a little bit if you have a relationship. So if you have a Wells Fargo
or Chase checking account, savings account, and you have a few thousand dollars in there,
and you've had it for a while, they might give you a credit card with a lower credit score because
they say, hey, we have cash in our account. We know you have 10,000 in cash in our account.
So we're comfortable giving you a thousand dollar credit card with a 640 credit score,
because we know you have 10,000 in the bank. So it's not a hard and fast rule. But typically,
we're looking at 680 or higher to get approvals. If that's not the case, and you have a score
lower than that, if you're in the four or five low 600s, we can definitely have you reach out
to a professional. I have a credit repair guy named Hiram. I know that Eileen also does a
great job with that. And they can look at your credit and say, hey, your score is 480 because
A, B, C. If you fix A, and you fix B, and you fix C, we're going to get you to 700.
And once you get it to a 700, you can apply for a credit card. You can apply for a car loan,
and you're going to get approved. The best course of action, if you're getting a decline,
or if you know your score is in the low sixes or 500s, is to have a professional look at your
score and your credit report. I know Laurel has resources that do this very well. And they can
look at your score and evaluate why is it there, and what can we do to get it higher.
And lastly on this is, just the reality of it, is if you have a 550, you're not going to get
approved for a credit card. So I would not even bother applying because you're going to
apply for a card. They're going to pull your credit, which adds an inquiry. So every time
you apply for a credit card, a car loan, a personal loan, any type of debt instrument,
the bank will pull your credit. They'll pull Experian, TransUnion, and Equifax. So you're
going to get an inquiry on your credit report to each bureau. The more inquiries you have,
your score drops more. So if you were at a 550, and you apply for three credit cards,
and you get three declines, you're adding six to nine inquiries on your report for that,
and your score is going to go down to a 530. So if you know that you're below 680 by a large margin,
I would say at this point, don't apply for a credit card. Talk to Laurel and her team,
have one of the professionals look at your credit report, see why your score is being dragged down,
fix that, and then apply. You don't want to add inquiries to your report
knowing it's going to be declined. It's just going to lower your score more.
This page, we have just a couple of different links to cards that I've personally kind of
been working with and banks that I know are lending right now. So the first two are, if you
have light credit below 680, pedal one is a kind of a starter card. They do a $500 minimum limit,
and it goes up to 3000. So they're kind of giving you a starter credit limit to see how you do with
that. And if you're able to responsibly use that, you can then apply for other cards that have
higher limits. The second one is going to be a secured card. If you guys don't know what that
means, a secured credit card means that they'll give you a $1,000 credit limit if you give them
a $1,000 deposit. So basically they are taking $1,000 retainer and letting you charge on the
card as you please. And it's a way to build your credit. So if you're unable to get an unsecured
card, if you have some cash you can put up against a secured credit card, it's a very good way to
start building your credit history. This is a Discover card, and then your credit report will
show a Discover credit card opened May of 2020. Six months from now, it's going to say,
hey, I've had this credit card for six months. I've been using it every day for the last six
months. And then Chase Bank will see that and say, oh, they've had Discover card for six months.
They've had no issues. I'll give them a Chase card now for $2,000. So it's a very good way to
build your credit if you're unable to get an unsecured card first. Below that, we have the
0% offers. So these are two credit cards that are offering 18 months of interest-free. So if you're
about to graduate or you have a business you might want to start up and you want to leverage
some interest-free money to start that, these are two of the best cards out there.
They have 18 months of interest-free. So you have a year and a half before you're paying
any interest on these cards. You're able to take that money and invest it into marketing,
buying some materials, invest it into purchasing some goods to sell, and you can use that for a
year and a half without paying interest. And then lastly are the best rewards cards.
And these are ones that are going to give you cash back, travel miles. This might be something
you want to look at down the line after you're a bit more seasoned with credit. But as your
credit profile grows, your score gets stronger. There are a lot of ways you can leverage good
credit into these types of cards. And every time you spend, you spend something, you get cash back
or you get points. And again, personally, I have an American Express card for each of my businesses.
And I have, I think, 2.4, 2.5 million points accrued on those. So I took my fiance out to
Europe for two weeks and we basically went for two weeks on points. We didn't spend a dollar.
So these can be very powerful as you grow your credit profile. You have businesses that are
open down the line. These can be great ways to leverage that to get travel points,
travel miles for your business or for yourself and use those as your credit grows.
TBG says, do you follow the same process for a business credit card?
So maybe some distinctions on that. So now is there a difference between
buying a credit card at the bank versus these online? So maybe speak to those two questions.
Absolutely. So let me do the first one from TBG first. For a business credit card,
it's going to be the same process. Now, let me quickly go over the pros and cons of a business
credit card. The biggest pro for a business credit card is that it does not report your
personal credit. So when you're young and you're trying to grow your credit, I would actually
suggest doing a personal card because that's going to show on your report and it's going to
help you build credit history. Now, a business credit card comes into play and I'll use myself
again as an example. I'm spending $300,000 to $400,000 a month on one business credit card.
If that showed my personal reports, I would get hammered. I would have a 550 score because I'm
going to have a ridiculous amount of debt on my report every month that's going to look bad on me.
So the business credit card hides that. And when you pull my personal report,
you can't see I have $300,000 out on a business credit card. It's hidden from my personal side.
So that lets me leverage that credit to put into my business without affecting me personally.
So that's going to be very good for you as you take a few years to grow your personal credit.
Then if you have an LLC, which will help you set up, you have an LLC that's making a little bit
of money, you apply for a business credit card, and then that's going to be separate. You can
use that to grow your business and any debt on there will not affect you personally.
That's a very powerful tool that you can use, but I think it's probably going to be best
as you have a year or two of personal history built up.
So thank you so much, Ryan. Appreciate you.
Thank you, Laurel. Thank you guys so much for listening.
Ask me any question, make a request. I have a free membership and I have $17
membership where you can text me 24 seven. You actually get to be live on some phone
calls with me a couple of times a month. So let's get connected. Let me help you.
I'm going to be your mentor with money.
