I've been warned multiple times that credit cards could literally get you in HUGE trouble if you don't use it wisely. This video is exactly what most people needs!
@@Randomperson-yr3gp"most people" should stop being stupid tbh, credit cards are not even that hard not to f up with, you just have to use your brain and not spend more than you need
Credit cards only really make sense in the US, where card companies get 2.5% money out of every transaction and so can provide money back etc, whereas EU ruled it anticompetitive or smth and the cap is like .2% so it acts as debit with allowed temporary debt, aka not worth it@@PacThePenguinBoi
Why is having willpower and being financially responsible so difficult for people? I have a $24,000 credit limit and my highest ever utilization was $4000 and it’s been 10+ years.
A little correction to Credit usage keeping it under 10% but above 0% is actually how to best increase your score to be in top tier 800+ range. 20-30% does work at first if building credit, but once you have an established score you need to switch to the 1%-10% usage range and let that report to the bureaus for best results
What affects credit score? *PAYMENT HISTORY (35%)* : tracks if you pay on time. Late payments hurt your score. Tip: set up auto-pay to avoid missing payments. *CREDIT UTILIZATION (30%)* : how much credit you use versus your limit. Tip: keep usage under 30%. *CREDIT AGE (15%)* : average age of your accounts. Tip: keep old accounts open. *CREDIT MIX (10%)* : variety of credit types you have. Tip: only open accounts you need. *NEW CREDIT (10%)* : frequency of credit aplications.
Dude. You’re awesome for teaching this. You’ll out beat Brainrot content. Keep posting this for us younger generations because now I’m eager to learn something 😭🙏
Don’t let this scare you from getting a credit card. You just have to know yourself and be able to be honest with yourself. If you don’t think you are ready or responsible enough to have one, wait on it. If you are responsible enough to pretty much use it as a debit card by paying it off every month, then there is nothing to worry about.
Credit cards are way better than debit cards when used responsibly. Many credit cards offer cashback and other rewards you should be taking advantage of.
Or don’t be stupid, spend the money you DO have, NOT money that the credit card gives you. You are making a $100 purchase with your money? Great, use your credit card to make that purchase and pay it back with YOUR money. You take advantage of credit score, points, cash back, perks, free stuff, more respect, greater deals, quicker approval of loans and borrowing. Just by using your own money… It’s not that hard, if you don’t have enough money to make a purchase in the first place, don’t use your credit card, because that’s not your money, it’s the banks money. No interest, no disadvantages, just reaping benefits for using a companies credit card.
Because parents don't teach their kids how to use them. Credit is a tool like a hammer or a saw. When used correctly it can help build your future, but when used incorrectly it can cause great pain.
My social studies teacher told us in a loud voice “DON’T BUY ANYTHING ON CREDIT.” Because he was so loud and wary for our future I will always remember that
My parents wanted my credit score to be built from as young as possible, so they got me a credit card as soon as I turned 13. It was obviously not my money until I got my summer job, but the credit score was built from a young age
A good trick is to stay under 10% utilization, but always use your credit card frequently, and ask for limit increases (so you can spend more while keeping under 10% utilization) You will be viewed as low risk because you’re not reliant on the credit card, but at the same time you still give a company business by using it frequently. Also you can max out your credit card without it affecting your score, you just have to pay it off to below 10% utilization or pay it off fully before your cc statement comes out.
@@thats_thepoint_x3574 From what I’ve learned in my personal finance classes, needing a credit score is not required to do things like renting an apartment, going to college, or getting a car. You may have a higher initial deposit for getting things like an apartment, but credit scores are not required for living.
@@thats_thepoint_x3574 from what I’ve learned in my personal finance classes, a credit score isn’t needed to do things. You may need a slightly higher deposit, but it isn’t really necessary for anything
@@thats_thepoint_x3574 from what I learned in school, you do not need a credit score to do things like buy a house, rent a hotel, or buy a car. Your deposit may be higher, but it’s not required
I remember the advice from my financial class in high school was to never use a credit card for emergencies. They can be expensive and the debt will only put you in a worse position. Make a rainy day fund, and don't pull from it unless you absolutely need to.
So the thing with that is that you won't have a credit score which is fine if you never intend to own a house (or anything else that requires more money than a normal person can reasonably expect to pay in cash) or are in a position to inherent one. For most people what they'll want to do is get a credit card with no monthly payment and try to increase the credit limit once a year or so while never using them. You can also grab additional cards in the same boat. This will result in a high credit limit with no credit utilization, which will result in a high credit score. That way if you ever need a loan (for, I don't know, a home or car or medical expenses) you'll have a good credit score to use for a lower relative payment.
It can be smart to leverage good credit to take out loans and using a credit card. If you know how to live within your means and pay off your balance every month, why not use a credit card for added security and benefits like points? Why buy a vehicle you can purchase cash, if you can qualify for a low interest rate, and invest your money somewhere that makes more money than the interest? There are right and wrong ways to use the tools.
The problem is that loans are often needed to pay for things like college and housing. You should still try to minimize credit and loans as much as possible though
I mean sure, if you never plan to take out any loans or a mortgage. But if you want to borrow any money ever, you need a credit history, and a credit card is the easiest and safest way to start that.
Utilization is not a problem here. It does affect your score, but it has no memory, meaning that once you improve it, that history wont affect your standing
One of the tips at the end is to set up auto pay. This definitely can work for some people, but personally I think setting a reminder in your phone to manually do it is better. It helps you keep track of your spending when you have to go in each month and look at your payment and click all the buttons yourself. It really helps me avoid the trap of running my credit bill up without noticing. However, that’s just what works for me, if auto payment helps you more then that’s great too!
I think auto-pay is good for those cards you barely use. put a subscription on there, don't think about it, the lender doesn't cancel your card and you can still keep track of your manual expenses by paying those off normally
The only true worry you have to have is a missed/defaulted payment and too many inquires. Those two things, only time will be able to fix. Everything is relatively easy to fix.
If utilized correctly, credit cards are a great tool for your finances. As long as you stay under 10% credit utilization, you can pay for most things using credit and get cash back which pretty much works as a small discount on everything. Just remember to only spend what you CAN pay off BEFORE the statement is due.
I pay my card down to zero every month and tend to keep my utilization around 25% (though I’m trying to get it lower). I treat it like a debit card and there are 2 reasons I’m using credit instead: 1) building credit and 2) milking the companies for all they’re worth. Cash back points are free money if you never carry a balance.
If you're afraid of credit cards and use debit, you can use your credit card like a debit card. Just pay your card off weekly or every few days if you're extra concerned 🤷🏻♂️
Ex bank employee, while credit CAN be useful, it can also be detrimental as well. As you use it, you pay an interest on what you buy. This equates to you paying the bank to increase your score. An example, you have a 3% interest credit card and buy a 100$ pair of shoes. Those shoes now will be 103$ and that extra 3$ just goes to the bank, in exchange for building a good relationship with the bank. You are buying favor, at the cost of artificial inflation. Some people keep a credit card for emergencies, but this doesn't build credit very fast unless you have a lot of emergencies. Or you can use that 3$ in a savings account, and have a savings plan such as saving 3% of each transaction in a savings account. For example, that 100$ pair of shoes is still now 103$ bit that 3$ gets added to a savings account, and will generate risk free low interest that will compound over time. One method uses debt, one method you are your own loaner, as you saved a nest egg and have more control.
In Germany even normal bank accounts count into the credit score. So annoying as I would like to have a ton of them to get better organized (unfortunately you can't make something like folders or envelopes on bank accounts to keep the overview which money is for what) but that would ruin my credit score. But on the upside the credit score in Germany isn't that important as it is in the US. It still is important but more like "as long as you don't have a bad one, it's ok"
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
I'm so glad my school has a finance class requirement
Fr man, I remember learning all this.
oh my
My school doesnt even bother in teching us anything useful, just the same as all years 😭😭🙏 get me out of that school
Are there any free online resources that you're aware of in regards to financial advice?
Wait you have a class that teaches you useful stuff to survive in the real world?
Now that’s what I CALL. KNOWLEDGE!!!
u mean power
@ that would be a funny twist
it is knowledge alright knowledge that is useless knowledge for how to spend more money and be in more debt
Yoooo a blue S
@@Sami-f1t2t I take it you we’re sort of twinning in your eyes
A few Lego sets draining the $2000 is pretty accurate
lmao I'm glad someone caught that
Real. And even more if they are from Star Wars
that arent a few
Respect for spending it on Lego though 🔥💯
Ong@@Taco_Trash
This'll probably help me in a few years. I'll definitely come back
currently saving to watch later
I’ll be here to help you remember
Don't use credit
This is only useful in the US so if uou live in a different country then don’t use this
See ya and good day
Thanks man, i needed that video for me now...😅
im not even an adult
@silinicityYT One day you will be...
@@Ehhehehehehjethat phrase hits hard now
Blud was playing Uno Credit Card at the start
@@Kauan176ProBr😭😭
I've been warned multiple times that credit cards could literally get you in HUGE trouble if you don't use it wisely. This video is exactly what most people needs!
need not needs
_gets credit card and never uses it_
That’s why most people shouldn’t get a credit card and should stick with a debit card
@@Randomperson-yr3gp they should it'snetter for loans and stuff they just don't know debit card are cheeks
@@Randomperson-yr3gp"most people" should stop being stupid tbh, credit cards are not even that hard not to f up with, you just have to use your brain and not spend more than you need
Thank you so much for your advice I have been a long time fan❤❤❤❤
You’re drawings are amazing
this is why im getting a debit card, there's no way dealing with all that
You can live a great life without a credit card, too, it’s just modern day now credit is everything and now it’s harder.
Credit cards only really make sense in the US, where card companies get 2.5% money out of every transaction and so can provide money back etc, whereas EU ruled it anticompetitive or smth and the cap is like .2% so it acts as debit with allowed temporary debt, aka not worth it@@PacThePenguinBoi
Yeah stay out of debt it’s a sink hole that’s hard to get out of once you get in
Why is having willpower and being financially responsible so difficult for people? I have a $24,000 credit limit and my highest ever utilization was $4000 and it’s been 10+ years.
@@totallysawthat due to society brainwashing people leading them to buy useless stuff theyll never really truly need
I am glad my Personal Finance teacher showed your channel. You helped me alot with banking savings ect ect.
Great Depression unit in high school history got my ass ready to never buy something I ain’t got cash for in my pocket in the moment.
A little correction to Credit usage keeping it under 10% but above 0% is actually how to best increase your score to be in top tier 800+ range. 20-30% does work at first if building credit, but once you have an established score you need to switch to the 1%-10% usage range and let that report to the bureaus for best results
Okay why are those credit cards that he drew and colored so satisfying to look at 😂
Buddy is just way too chill ngl💩💩💩💩
What affects credit score?
*PAYMENT HISTORY (35%)* : tracks if you pay on time. Late payments hurt your score.
Tip: set up auto-pay to avoid missing payments.
*CREDIT UTILIZATION (30%)* : how much credit you use versus your limit.
Tip: keep usage under 30%.
*CREDIT AGE (15%)* : average age of your accounts.
Tip: keep old accounts open.
*CREDIT MIX (10%)* : variety of credit types you have.
Tip: only open accounts you need.
*NEW CREDIT (10%)* : frequency of credit aplications.
It's pretty hard to see what he wrote, so
अगर रउरा एकर अनुवाद कइले बानी त एकर मतलब बा कि रउरा लागत बा कि हम लाइक आ पिन के हकदार बानी🤪. Hope this helps
And you can’t forget about following Gohar
This is very accurate, my finance class show us that chart and it seems like making late payments is the heaviest so most people gotta be careful
@@Otilia-oz4bb It's not hard to see what he wrote.
Nahh everyone i knew at my community dont even use credit cards 😂
Me too
You're missing out on some sweet rewards.
Thanks, I needed this 😭
i’m that friend… he went straight to the LEGO aisle
Idk man.. those legos were a GREAT investment.
Keep them sealed in an airtight container in a dry, cool room for 3 decades and you could triple your money pretty easily.
But my cart would be full of ninjago sets and how tf am i supposed to pay that cuz all ik is that my parents wont
Really the lesson here is don't buy useless shit you can't afford..
When one short teaches me more useful info than 4 years of high school.
This man has raised a generation ❤️ Respect 🔥🔥🔥
Dude. You’re awesome for teaching this. You’ll out beat Brainrot content. Keep posting this for us younger generations because now I’m eager to learn something 😭🙏
mango mango mango + still water + noradrenaline + jonkler laugh + phonk + balkan rage + those who know 💀
Nah dude sprunkivis too far deep into my i pad kid brother’s mind
@@Linicity who’s sprunkvis
Don’t let this scare you from getting a credit card. You just have to know yourself and be able to be honest with yourself. If you don’t think you are ready or responsible enough to have one, wait on it. If you are responsible enough to pretty much use it as a debit card by paying it off every month, then there is nothing to worry about.
My guy went from helping me with my college app to giving me financial advice. Respect
starter pack ahh youtube channel ( no hate your vids are rlly helpfull)
This is what my 12 year old granddaughter will watch once she has a phone. Thanks, Gohar!!!!!
Your a grandma🤨🤨
Cool
@@Geenaxxso?
Is he real or completely predator i cant tell..
@@eriktokar4487what are you even saying
Bro went from saving my grades to saving my life..
I respect him for spending all his money on Lego
My school doesn’t have a financial class. This is MUCH appreciated
Don't understand how people think credit cards are free money, when in reality it's just a Buy now Pay later scheme.
Because they are overconfident in their ability to pay all that back in time. They don't think about consequences.
Gohar teaching me about credit score
"money you can borrow" does NOT mean "money you have."
Bro spent $2000 on 3 lego death stars... so accurate though
If you don't need credit literally don't ever get a credit card, and even then there are much smarter and safer ways to build credit
Credit cards are way better than debit cards when used responsibly. Many credit cards offer cashback and other rewards you should be taking advantage of.
Or don’t be stupid, spend the money you DO have, NOT money that the credit card gives you.
You are making a $100 purchase with your money? Great, use your credit card to make that purchase and pay it back with YOUR money.
You take advantage of credit score, points, cash back, perks, free stuff, more respect, greater deals, quicker approval of loans and borrowing. Just by using your own money…
It’s not that hard, if you don’t have enough money to make a purchase in the first place, don’t use your credit card, because that’s not your money, it’s the banks money.
No interest, no disadvantages, just reaping benefits for using a companies credit card.
Thanks for the tutorial ❤❤❤❤❤
Why do people always think they have free money with credit cards😭🙏
Because credit card companies pay a lot to make you think that way
Because parents don't teach their kids how to use them. Credit is a tool like a hammer or a saw. When used correctly it can help build your future, but when used incorrectly it can cause great pain.
Because they lack common sense.
Do they? It's mostly a straw-man argument/example.
@ not exactly some people do spend without thinking about costs
My class in high-school literally just taught me this, i have a whole powerpoint in paper on how credit cards work and stuff
Just only spend money you actually have...
Or close to have, i boght a fridege for 5k, and pay it of in 2-3 momths out of the gate 😂. The money was alredy saved up.
I have learned more from this man than schools ever taught
My social studies teacher told us in a loud voice “DON’T BUY ANYTHING ON CREDIT.” Because he was so loud and wary for our future I will always remember that
I buy everything on credit lol, the trick is to ignore the credit line and only spend as much as you have in your bank account.
You know it's really a good day when Gohar uploads
Gohar putting all of the Lego sets back on the shelves after filling up his cart 😂
Bro the props look so good
Fun fact: You can like a comment by double tapping it and reply by triple tap 🃏🌟😂...........💜💜.........💋............🧡
Bot
My parents wanted my credit score to be built from as young as possible, so they got me a credit card as soon as I turned 13. It was obviously not my money until I got my summer job, but the credit score was built from a young age
bro if i act like that with my credit card my credit score gonna be in the negative 💀
in today's economy ahh
Debit card
@@Randomperson-yr3gp
A good trick is to stay under 10% utilization, but always use your credit card frequently, and ask for limit increases (so you can spend more while keeping under 10% utilization)
You will be viewed as low risk because you’re not reliant on the credit card, but at the same time you still give a company business by using it frequently.
Also you can max out your credit card without it affecting your score, you just have to pay it off to below 10% utilization or pay it off fully before your cc statement comes out.
This is definitely gonna help when my parents let me out the attic! Thanks Gohar!
why am i getting the diddy vibes
@ Idk but I’m pretty sure my parents ain’t diddy
Why is bro managing my life 💀
Yo, gohar, my guy also likes Lego Star Wars, just like me, bro I guess I’m not the only indian Lego nerd
I find your videos verder helpful❤❤
Yes, thank you for this advice.
I’m not even in high school yet, but it’s good to know this stuff early on.
One of the many many reasons to never use credit and always pay cash
Unfortunately paying always with cash doesn't build you the much needed credit score.
@@thats_thepoint_x3574 From what I’ve learned in my personal finance classes, needing a credit score is not required to do things like renting an apartment, going to college, or getting a car. You may have a higher initial deposit for getting things like an apartment, but credit scores are not required for living.
@@thats_thepoint_x3574 from what I’ve learned in my personal finance classes, a credit score isn’t needed to do things. You may need a slightly higher deposit, but it isn’t really necessary for anything
@@thats_thepoint_x3574 from what I learned in school, you do not need a credit score to do things like buy a house, rent a hotel, or buy a car. Your deposit may be higher, but it’s not required
I remember the advice from my financial class in high school was to never use a credit card for emergencies. They can be expensive and the debt will only put you in a worse position. Make a rainy day fund, and don't pull from it unless you absolutely need to.
That's why you just don't get a credit card and don't take out loans.
Yep and don’t go in debt to go to college if you don’t even know what you want to do
So the thing with that is that you won't have a credit score which is fine if you never intend to own a house (or anything else that requires more money than a normal person can reasonably expect to pay in cash) or are in a position to inherent one.
For most people what they'll want to do is get a credit card with no monthly payment and try to increase the credit limit once a year or so while never using them. You can also grab additional cards in the same boat.
This will result in a high credit limit with no credit utilization, which will result in a high credit score. That way if you ever need a loan (for, I don't know, a home or car or medical expenses) you'll have a good credit score to use for a lower relative payment.
It can be smart to leverage good credit to take out loans and using a credit card. If you know how to live within your means and pay off your balance every month, why not use a credit card for added security and benefits like points? Why buy a vehicle you can purchase cash, if you can qualify for a low interest rate, and invest your money somewhere that makes more money than the interest? There are right and wrong ways to use the tools.
The problem is that loans are often needed to pay for things like college and housing.
You should still try to minimize credit and loans as much as possible though
@ I mean technically you don’t need a loan for those things and you don’t even need to go to college
I can't watch your videos normally knowing how they are made after the behind the scenes video😭😂
Life hack...... don't get a credit card.
You are welcome
I mean sure, if you never plan to take out any loans or a mortgage. But if you want to borrow any money ever, you need a credit history, and a credit card is the easiest and safest way to start that.
Thank you so much, i needed that information
Utilization is not a problem here. It does affect your score, but it has no memory, meaning that once you improve it, that history wont affect your standing
One of the tips at the end is to set up auto pay. This definitely can work for some people, but personally I think setting a reminder in your phone to manually do it is better. It helps you keep track of your spending when you have to go in each month and look at your payment and click all the buttons yourself. It really helps me avoid the trap of running my credit bill up without noticing. However, that’s just what works for me, if auto payment helps you more then that’s great too!
I think auto-pay is good for those cards you barely use. put a subscription on there, don't think about it, the lender doesn't cancel your card and you can still keep track of your manual expenses by paying those off normally
Thanks for the stuff that will help me in a few years
The only true worry you have to have is a missed/defaulted payment and too many inquires. Those two things, only time will be able to fix. Everything is relatively easy to fix.
If utilized correctly, credit cards are a great tool for your finances. As long as you stay under 10% credit utilization, you can pay for most things using credit and get cash back which pretty much works as a small discount on everything. Just remember to only spend what you CAN pay off BEFORE the statement is due.
I pray that you won't secretly make a video giving the worst info you can because im trusting you with every fibre of my being.
I like how he ticked the blue card with a pencil but it's clearly texter...
I pay my card down to zero every month and tend to keep my utilization around 25% (though I’m trying to get it lower). I treat it like a debit card and there are 2 reasons I’m using credit instead: 1) building credit and 2) milking the companies for all they’re worth. Cash back points are free money if you never carry a balance.
My man bought Legos. He knew his priorities.
You are such a good video maker ❤
The legos we’re personal 😭💀
Hey Gohar, I have a big test soon.😭🙏 can you make a video of what to do the day before
Pure knowledge. I pay off full balances before making purchases
I'm glad that one of my teachers taught us how credit card works
This man spent his whole bank account on paper 💀
The font at the end is so delicious looking and i ate it
If I just followed Gohar”🔥🔥🔥🔥🔥🗣️🗣️🗣️🗣️🗣️🗣️
Amazing drawings as always
From school tips to money tips. He’s a legend.
I love his credit card drawings 😮
this one video single-handedly gave me more useful knowledge then me going to school my whole life
Spending your credit on Legos is respectable
that check mark appearing was cleeaaann
A few Lego sets draining the $2000 is accurate
How does Gohar teach how the bank works:- ❤️🎁❌✔️💖🙏🏽👏🏽👍🏽
Bank lore :-💥✊🏽🗣️🔥🤡🤬👹💀☠️
Gohar for example what if you need to spend more than 30% for health purposes, rent, etc. Do you still lise credit score?
I mean the lego was justified...
Gohar, you have no idea how much you are helping me and teaching me dude. Keep making awesome content!
If you're afraid of credit cards and use debit, you can use your credit card like a debit card. Just pay your card off weekly or every few days if you're extra concerned 🤷🏻♂️
Thanks Gohar, very cool 👍
In the USA, everything is overpriced because everyone can and is encouraged to get a loan for everything.
Gohar is such a helpful RUclipsr ❤
So glad to have this guy and not school
$2000 dollars worth of legos is nuts
“Your friend-“
You lost me there.
nah even gohar is telling us to cheat 💀
He went from carrying us to college to carrying us in life
Ex bank employee, while credit CAN be useful, it can also be detrimental as well. As you use it, you pay an interest on what you buy. This equates to you paying the bank to increase your score. An example, you have a 3% interest credit card and buy a 100$ pair of shoes. Those shoes now will be 103$ and that extra 3$ just goes to the bank, in exchange for building a good relationship with the bank. You are buying favor, at the cost of artificial inflation. Some people keep a credit card for emergencies, but this doesn't build credit very fast unless you have a lot of emergencies. Or you can use that 3$ in a savings account, and have a savings plan such as saving 3% of each transaction in a savings account. For example, that 100$ pair of shoes is still now 103$ bit that 3$ gets added to a savings account, and will generate risk free low interest that will compound over time. One method uses debt, one method you are your own loaner, as you saved a nest egg and have more control.
Spending all you money on legos is so real
In Germany even normal bank accounts count into the credit score. So annoying as I would like to have a ton of them to get better organized (unfortunately you can't make something like folders or envelopes on bank accounts to keep the overview which money is for what) but that would ruin my credit score. But on the upside the credit score in Germany isn't that important as it is in the US. It still is important but more like "as long as you don't have a bad one, it's ok"