HOW TO ESTABLISH CREDIT 2018

## The Power of Good Credit: How It Can Transform Your Financial Life ### Introduction In the intricate world of personal finance, one concept stands out as a cornerstone of financial stability and success: credit. Having good credit is more than just a number; it's a key to unlocking better financial opportunities, saving money, and securing your financial future. Here, we'll delve into the six compelling reasons why establishing good credit is crucial and provide you with actionable strategies to get you started. ## Why Good Credit Matters ### Lower Interest Rates A good credit score signals to lenders that you are a reliable borrower, making you less risky. This translates into lower interest rates on loans, whether you're buying a house, financing a car, or taking out a personal loan. Over the course of your lifetime, this can save you tens of thousands of dollars in interest payments[1][3][5]. ### Easier Home Buying and Renting When it comes to buying a house, a good credit score is often a necessity. Without it, you might need a significant down payment or a co-signer with good credit. For renters, a high credit score reassures landlords that you'll pay rent on time, making it easier to secure your dream apartment[1][3][5]. ### Better Car Financing Buying a car is a major financial decision, and having good credit can make a significant difference. With a good credit score, you can secure a car loan with a lower interest rate, saving you money in the long run. Without established credit, you might have to pay cash upfront or face higher interest rates[1][3][5]. ### Enhanced Job Prospects Some employers, especially in the financial sector, review credit reports as part of the hiring process. A good credit score can indicate financial responsibility and stability, potentially boosting your chances of landing a job[1][3][5]. ### Easier Business Financing Starting a business often requires a substantial loan from a bank. Without established credit, securing this loan can be challenging. A good credit score can make you a more attractive candidate for business loans, helping you turn your entrepreneurial dreams into reality[1][3][5]. ### Lower Insurance Premiums Your credit score can also impact your insurance premiums. Insurers often use credit-based scores to determine auto and homeowner insurance rates. With a higher credit score, you're likely to enjoy lower premiums, leading to substantial savings over time[1][3][5]. ## How to Establish Good Credit ### 1. Secured Credit Cards A secured credit card is a great starting point for building credit. It's backed by a cash deposit that you place into a CD with the bank. This deposit serves as your credit limit, and using the card responsibly can help you build trust with the bank, potentially leading to an unsecured credit card with a higher limit in the future[3]. ### 2. Credit Builder Loans Credit builder loans are designed to help you build credit by lending you money that you then repay over time. This loan is typically held in a savings account or CD until you've repaid it. This can be a powerful tool for improving your credit score, but it requires disciplined payments to avoid negative impacts on your credit[3]. ### 3. Co-Signers Having a co-signer with good credit can help you secure loans or credit cards that you might not qualify for on your own. However, this comes with significant responsibility, as the co-signer is equally liable for the debt. It's crucial to make payments on time to avoid damaging both your credit and the co-signer's[3]. ### 4. Authorized User Becoming an authorized user on someone else's unsecured credit card allows you to benefit from their good credit history. However, it's important to use this privilege responsibly, as racking up debt without paying it back can harm both your credit and the relationship with the cardholder[3]. ## Conclusion Building good credit is a journey that requires patience, discipline, and responsible financial habits. By understanding the benefits of good credit and taking the right steps to establish it, you can unlock better financial opportunities, save money, and secure a brighter financial future. ### Call to Action - **Start Today**: Whether it's applying for a secured credit card, considering a credit builder loan, or becoming an authorized user, take the first step towards building your credit. - **Educate Yourself**: Continuously learn about good financial habits and the importance of credit. - **Stay Disciplined**: Make timely payments and keep your credit utilization low. - **Share Your Knowledge**: Help others understand the power of good credit by sharing this article. By following these insights and taking action, you'll be well on your way to mastering your money and building wealth. --- #FinancialSuccess #GoodCredit #CreditBuilding #FinancialLiteracy #MoneyManagement #WealthBuilding #PersonalFinance # Script: 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.