My score is 820. I only travel in airports about twice a year so tier 3 is working great for me. I don’t make that much money either. But the house is paid for and so is my car. I carry NO balances and just collect rewards.
Tier 1: Least likely to get stolen Tier 2: Gonna get stolen. Tier 3: Gonna get you murdered. Tier 4: Bank already robbed you. Tier 5: You robbed somebody else.
I am a car dealer and it is scary how little the public knows about personal finance (especially credit). Credit is not taught in any public school system that I am aware of here in the US. How credit scores are calculated, what credit bureaus are (or which exist), what gets reported on your credit, etc. The same is true of retirement. If people were actually educated on what happens when you can no longer generate an income maybe some people would build a portfolio. If I would have saved through my 20's instead of blowing every dollar I had, I could have retired in my 40's.
So as long as schools teach kids how disgusting these bureaus have become, and that they don't give a crap about securing your mined personal data; unless you pay extra. :)
I won't consider credit as "personal" finance. Calling it personal finance is where a lot of people go wrong with credit. The best bet is to just avoid even starting with the mentality of borrowing.
This comment section is amazing.. all these people saying cc's are the devil obviously dont know how money works at all. Here is a free lesson. Step 1: use card Step 2: pay card... The end
The problem comes in when you spend more than you can pay and that is something that the cards make easy. It is better to not have them. They only provide instant gratification. If you can afford the thing you are buying, save up and pay cash.
Chris Moore you have a valid point...but why pay for an item using your debit card (which doesn’t help your credit score) when you can use a credit card (which if paid off, improves your credit score?) Like, if i have $500 for an item in my bank, yeah, i can buy the item outright, but i’d rather buy it with a credit card and pay off that with the $500 in my bank so i get a credit boost. Long term, the better my credit, the less roadblocks i encounter when buying bigger stuff like cars, houses and getting loans in general.
liveguy yeah but it also shouldn’t be based of credit , that’s stupid so if someone buys gas and pays it every day they deserve a home loan more then the guy who pays his bills on time cash and doesn’t buy shit he can’t afford it’s a double edged sword
You forgot to talk about the Bat Credit Card that Batman has in the "Batman and Robin" movie. You know, "Never leave the cave without it." That one must be Tier 6: Batman Only.
People don't like credit cards because they are afraid of the fact that they don't have self control. I understand and respect those that chose not to have credit, but don't blame the card and its process for your irresponsible behavior. This is the type of audience Mr. Dave Ramsey attracts. However, just because YOU can't handle the large responsibility of having CC's, doesn't mean you need to shame others that do. Everything in life is about perspective. We obviously are reaping the benefits and know what we are doing. Otherwise, we wouldn't have them. If you want to play it safe; don't go over a 10% utilization rate of your overall allotted balance, and pay that balance off every single month a few days before the due date. It's really that simple.
Also take into account the propensity for CC companies to screw over those indebted to them, especially poor under-educated people who have a hard time navigating the legalese of a contract and its not so surprising how people tend to regard CCs as a devil's trap. charging 40% on a 1000 dollar charge because you failed to pay off 1 dollar on the balance is just straight up usury imo.
I don't like credit cards and My score is over 800. You're an ass hole for making that generalization. Credit cards are not necessary for a good score, and because people don't want to use debt to buy groceries doesn't make them irresponsible, I'd say in makes them smart. The average household pays $thousands per year in CC interest. For what?
Credit Shifu and Ask Sebby are to the RUclips credit card game what Chase and Amex are to the points and miles game. These guys are the powerhouses! Thanks so much for the great content.
I had a quick silver for 3 yrs started at 500 ended at only 1500 with a credit score of 725....after 3 years i canceled it....and got american express now have 10k limit.im guessing ur intrest rate is through the roof my captial one was 26% my american express was 0% first 15 months....il never own a captial one card again....they are good starter cards though thats it
When you have over 1 million views on a video, it's good to have some friendly competition. Just like you, I love talking about credit cards & many things changed since 2017. As you mentioned, I did go ahead and update my title to add 2020. Thanks for your comment and I appreciate all your content and really enjoy these topics. Wish you all the best, you are an icon!
@@FalconChief222 1 trip is good. If you go to another country. The Reserve offers insurance if you rent a car with it so you don't need to pay 400 for the car rental agency insurance. It also offers money in case you are caught in a country and you need to be rescued. You get a free credit towards travel I think about 300 every year so the card is only a 150 ANNUAL Fee if you travel atleast once a year. So many perks man. Can't live without it
I stick to tier 2 as well. I use Costco card for gas, travel, dining and double cash for everything else. I do travel a few times a year, but have never thought about lounge access or baggage since I fly southwest a lot. Any reason to get a different card? Even the chase sapphire reserve with "$150" annual fee seems like a lot to try and make up with travel spending
Unless you churn credit cards. Consistently applying for and cancelling cards after using the benefits can be a way to really profit off of higher tiers without paying annual fees
This credit team is legit. Not like other large companies that make you do all the work yourself and just send out generic dispute letters. My Credit Group had a custom plan setup just for me. And so far it has worked great. I have went from a 554 to a 793 in 5 days. They get my vote! *MASTERCREDITFIX at GMAIL dot COM*
People who say they "hate credit cards" are irresponsible and don't know how to manage their money. Why wouldn't you want to get a free flight, or hotel upgrade or cash back on money that you would spend anyway? Credit cards are borrowed money, spend within your means. Use it, pay it off at the end of the month and get some cash back. Simple. If you don't like or don't believe in credit cards, go watch a different video. This channel is obviously not for you. Keep up the good work Credit Shifu, between you and Ask Sebby I have gained some really great knowledge and already am reaping in some great benefits.
The perks are not worth that much and too many people do spend more than they can afford because they only consider the monthly payment and not the amount they are paying on interest. I had over a dozen cards including three AmEx (Gold, Platinum and Green) and over 200k of credit card debt when I lost an 85k a year job and was unemployed for two years. My house was foreclosed on, and I had to declare bankruptcy. If you can afford to buy something, you can delay gratification, save up for it and pay cash. Actual money is the answer, not credit cards.
@chris moore. it wasn't the credit cards fault u charged up 200k.we all know an 85k a year job isn't guaranteed the next year so why go in debt 200k.credit is cards should be used to make money not go into debt.
321Ian123 the classic keyboard warrior, “like sheep being led to slaughter”. Stop trying to sound like your so intelligent, or like your really sticking it to the banks. Credit cards are a tool, but you must be careful to live within your means.
Me and 2 of my friends applied for Capital One Journey Rewards when we were 18 and I basically tanked my credit because I didn't know any of the stuff I do now. Fast forward to 2021, I'm 23 and in the last year my score went from 580s to 730s and I'm waiting on my Freedom Flex :)
I had a Amex card of less than $1000 limit but i needed a business card and better credit score so i could invest them all in my business, but as reality would have it i was only able to boost my credit score to a 740 with the help of a credit repair company. Now am more focused on having the best credit card. Thanks for such great information Credit shifu.
@@sarageralds7038 Thanks so much, they are called credit streamers. I started using this repair company last month and I already got some collections removed and also working on my bankruptcy. Thanks for this great opportunity.
I just wish Tier 3 and above offered rewards other than travel/business expenses. Until that happens, I'm perfectly happy with sticking with my Tier 2 cash back cards, which give up to 5 to 6% cash back for purchases.
Generally one is not putting a significant amount on a card and paying it back quickly and consistently unless one travel frequently. I have yet to think of something that would match that flow of funds. Perhaps if one subscribed to every subscription service out there that might get close. I feel like that is why there is a shift to travel perks as you go up in tier.
@@unknow123abc I run all my business expenses through my credit card to get 2% cash back. I'm in a similar boat as the OP. I can't find a use for cards above Tier 2. I use Citi Double Cash.
I worked for Merrick bank. Basic but a good card for credit building. Capital one platinum is great. After 6 months of on time high payments, I was given $3K credit increase. Remember folks, pay early, pay in large amounts and credit cards will bless you. Don't be late.
As someone who has a 750+ credit score I'm more than happy with "tier 2" credit cards. I have a Capitalone Quicksilver, a Chase freedom, and a few other cards. Cash back for me is simple and I usually use that as a gift to myself every year when I cash it in. The annual fees depending on the card I guess don't seem to outweigh the benefits unless you spend quite a bit. I'll probably keep using my Capitalone credit card for quite sometime. That's the only company that would touch me having very limited credit history.
Nice vid! Just got approved for AMEX Platinum with a little over a year credit history and 720 Equifax. I'm excited to say the least and the $550 annual fee is waived because I'm active duty military.
Excellent and accurate advice on all these cards. I have used everyone one of these cards in the order he talked about from Credit One with the annual fee and the Capital One Platinum and then the Discover It Card and then getting rewards etc. just pay the monthly payments on time and you will build your core. I was a 540 credit score 2 years ago and used the cards and paid on time and now I’m at 699 credit score!!
This is helpful and you made some good points, I was battling with my credit for so long and most of the things you mentioned are true. All newbie in the credit system needs to watch this video so you can build your credit score to a 814 just as I did.
So many comments saying not to get a credit card. If you want to make any larger purchases in life (cars, houses) and your not paying outright. You need good credit. Just buy what you know you can pay off. To buy a car you need at least a years worth of credit experience. I got a credit card at 17. Built up my credit for a year getting a score of 700+ and was approved for a car. I only put $50-$200 max a month on the cards ( that’s over three credit cards) even tho my limit is much higher. Don’t spend what you don’t have. I only use them for gas and groceries- and I have one for emergencies (vet bills etc) If you can only pay off $50 a month. Than only buy $50 worth of goods. Your credit score will still go up.
I started with Capital One platinum recently. In two months my score has gone up 30 points paying triple my minimum back one week early. Everytime. Make sure the funds you spend already exist in the future. I view it as swapped gratification.
I got a Chase Freedom unlimited 2 months ago. It is my first credit card. A credit limit of $1000 and 3% cash back on all purchases for 15 months and 0% interest. I had no credit before, and I’m 19 years old. I am making 23k a year and said I’m paying no rent is probably why they approved me but I got lucky this is a really good car I already have 4200 points collected
Amazons card is my all time favorite. I get free money just for shopping, and no fees. If you pay it off each month nothing is wrong with credit cards.
PSA for the ambitious college types: I'm a sophomore in college, have about two years of good credit history, a car loan, scores hovering in the mid-700s the last few months. I live with parents and have a decent job, but you can still pretty much guess my financial state. But a few days ago after constant researching for the best travel card I said fuck it, applied, and got approved for the Chase Sapphire Preferred card! It will cost you $95/year but if you think about it, just set aside $8/month while the 0% APR is in effect. Spotify Premium is literally more expensive than this card. And if you're keen on traveling once college ends like me, get this card because everyone I've talked to at Chase and irl all say this is the most versatile card for value when it comes to rewards.
I started a few online based businesses. Charged everything on my personal credit cards, as well as gas, and my rent. Payed it off in every month and got a Amex Platinum really easily.
I actually got an invitational letter this year for the centurion. I kindly refused and bought a Rolex with that money haha, I still have the letter framed. Lol
As a teenager that's soon to be entering the scary world of adulthood, it's nice to see some explanations. I don't want to get debt, so I guess it's best to just spend a little bit on the credit card that you know you'll be able to pay off at the end of the month, right?
As long as you understand that you will use the CCs for building up your credit score, to take advantage of the perks and not paying a single penny in interests, you'll be ok.
The best way to not get into cc debt is to treat it like your debit card if you only have 500 in your checking or saving account. Obv you shouldnt be going around charging 500+ on your credit card since you dont have the fund to pay that back. Most people who get stuck in debt charge a crap ton on their cc when their monthly income can’t cover that bill so they end up paying the minimum payment and then before you know it they have like months worth of debt with no way to pay for it. Just dont carry a balance pay everything off in full every month. Sit back collect the cash back and rewards that your cc offers and travel!!! Good luck
You can use your first CC for gas and nothing else. This isn't usually a lot of money each month and it's money you know you're going to spend anyway. So your monthly balance stays low. If you use 25 bucks at the pump, you make sure to put aside 25 bucks when you get home. Do that for each transaction and pay it all off at the end of the month. Just use discipline and don't use your gas money for anything but the CC and don't use the CC for anything but gas. This will show that you use your card / credit monthly and every month you pay your debt. Do this for a year or two and they will raise your limit. Your score will grow and you can then get another card with better rates / terms to use for other day to day spending. Pay them all off every month. If the next card is better, stop using the first one but don't close the account unless they are charging you for some odd reason for not using it. Keep that pattern going through life and you'll likely never be denied credit when you need it for a house or something. Cars are terrible for buying with credit. They instantly lose value when you drive off the lot, have high depreciation (usually), etc. Buy a used car in great shape for a good price and pay cash. Take care of that car, pay less on insurance since it's not financed and save money for a better car in the future. You don't need to keep up with the Jones' and have some flash ride that has you in serious debt and strapped for cash. Just get something dependable and reasonable that gets you to work and back reliably. Save your money for when you're stable and have a nice house.
Very good breakdown !!! I’m glad you explained the differences between the tier systems , credit worthiness, gross income and how it plays a role in your credit history. Good job 👍
Not sure if this exists in the US, but in the UK the Amex Platinum gives 1.25% cashback. Great way to boost credit by putting everything on the card and paying in full at the end of each month, whilst getting some money back.
Joe Gil i know! I was good for credit cards because I'm careful with money... Which is why i didn't want to bother with credit cards. Fuck i could have an 800 by now and a decade of history
Dave Ramsey is good for some things, no doubt (his plans for getting out of debt are pretty good from what I've heard, and he has great investing/savings tips). However his stance on credit cards is actually just ridiculous. If you lack self control and can't stay within your means, then you should not be getting a card. If you understand what's going on with your card, you can greatly benefit from it. Dave Ramsey speaks from his own personal experience for the most part, and this is not applicable to everyone. If you're uncomfortable with credit cards, then don't do it, it would probably be better. But because they don't work for you doesn't mean they don't work at all
I'm 18 and I know how stupid it is to use a credit card. Your paying hundreds of dollars a year when you have one. Rule of thumb is if you can't afford to buy something don't buy it!!
My credit limit got quite absurd given I had an unbelievably low income. I mean, I believe at the end of it my credit limit was about 5 times my monthly income? Yeah, that was a bit crazy.
It's not that unusual to get a $10,000 USD credit limit on a card if your credit history and score are good. The history will show that you pay back your debts and the score will help show that you don't really ever use that much credit so it's low risk for the lender that you will bankrupt and not payback the debt.
I know people that presently have bankruptcies on their credit profiles and yet were pre-approved for Amex Gold Premier Cards within just a few years of re-constructing their credit profiles with something as simple as a tier-1 Captialone card(coupled with responsible payment habits!). Many of these Banks and Institutions have lowered their standards in pursuit of reeling in customers to become more usable "products."
I think it's a bit silly to speak so poorly of credit cards, especially if there are cards with little to no annual fees. Why? 1) If you're paying cash, it rarely ever helps to get a price redux with cash unless it's a rather large purchase like a car, large appliance from independent store, etc. It greatly depends on the amount you spend and WHERE you spend it. 2) If you can make your normal purchases AND get a little bit extra back in your pocket, why would you not? You can learn how to leverage reward points or get straight cash back on cards and use it directly on your balance or consider it a "end of year bonus" and request your check every end of year, tax free. I have a business Cap One 2% cash back card. Last two years I've done my usual business spending with balances paid every month and come out with $11K 2015 cash back and $13K 2016 cash back. The point is to leverage the system in your favor. If you can't pay your bills on time or aren't a disciplined spender, DON'T get a card. If you are conscious of the dollars coming in and out of your home, make it work for you and it's extra money in your pocket. P.S. Other bonuses of many cards include 1) Free travel insurance 2) Free baggage fee coverage 3) Hotel upgrades 4) Free car insurance 5) Purchase protection 6) Upgraded shipping on purchases 7) Airport lounge entry 8) TSA precheck fees covered 9) Travel concierge 10) Uber fees covered up to certain amount
Spending on a card makes it easy to spend more than you would if you were paying cash. You spend more, without thinking about it, because it isn't your money. Not until the bill comes. There have been scientific studies on this. It activates different centers in the brain. Spending your actual money makes you think about it where throwing a card down doesn't. If you spend cash, you spend less. The perks are just not good enough to counter the costs. They don't give that stuff away, they are making mad money on you.
Chris Moore this makes no sense. Cash is an older commodity most young people that don't work for cash buy receive checks don't even pay for anything with cash. With Apple pay debit and credit cards cash is becoming obsolete. There is no excuse that you spend more with a card than with cash unless you are buying things you can't afford for the wrong reasons.
Chris Moore pay your card every month before it accrues interest and you will save more money this way and stop buying things you don't need. The companies make money from charging the places you buy things from for using their service hence why some places have started having a minimum amount you can spend in store on your card
Omg the comments about other comments are hilarious. I knew the sorts of cards that were out there so I was just interested in seeing how you'd display them. Great job btw. I used to have great credit but I ran in to hard times a few years ago and now I'm paying off debt and building it back up. I've been traveling a lot more about 6 times in the last 3 months. I don't think it'll stop so now I'm motivated to upgrade cards in the future. Thanks.
DuhAverageJoe if you have the money to spend a lot on it then go for it as you could get the black card otherwise just do it if. You can afford the signup fee
Just do it. They eventually stop sending you card offers, then you will wish you had gotten one of their cards. Worst case you stay in good standing with them. You ruin your credit because of life, but you still have a good history with them. So when you finaly rebuild and are at 680 or 670 they will likely still take you back. Other wise goodluck getting over 720. So just bite the bullet pay the fee.
Hello. I'd like to weigh in. I'm active duty military, and I find myself as a huge exception to all of your guidelines here. At about 2.5 years into my credit history and at 20 years old, my total credit limit is over 40,000 with 4 cards. One is 22,000 by itself. Interest rates are as low. 11.5 percent on that card, higher on my others. I am active duty military and I've had a car loan for about 1.5 years plus using and paying in full my cards every month. So, after a single year, I was nearly 19, just before my first car loan, I was approved for Amex platinum. My credit score was, according to Credit Karma, about 700. My annual income at that time was barely over 20,000. Is there an explanation for these things? Does being military affect my credit or eligibility in ways that I can't see? My parents credit is average. Does that influence me at all? They ever co-signed anything. My score is now 766 according to C.K. and I'm getting offers all over the place for low interest loans and cards. And I'm not even 21, and I still make around 25,000 a year. I'm still not even 21! It's like I'm on a fast track or something. Is it usually this easy or did I get a boost somewhere? PS: all American Express fees are waived, entirely, as active duty US military. I pay nothing for the benefits. Maybe it can be a note in a future video for your possible young military viewers who are new to credit.
Toxic9813 they just seen you have a stable income and a good credit history. Cards will be happy to give you cards so they can gain a life long customer. Remember too much available credit can be a bad thing. Just get what you need realistically.
Having available credit in excess is never a bad thing unless you abuse how much is available. It's always good to have a lot of available credit to keep your utilization low and amount available high.
The amex platinum isn't really difficult to get if you don't have anything bad on your credit report and have a decent income. I started credit building at 19 (I had no credit but also nothing bad on it) and a year later I had 7 credit cards and a 779 credit score. I pay all my cards bills on time with Autopay and at the time my stated income was only $35,000. Also I believe almost all card companies waive annual fee if you're active military.
Yeah we got Amex Platinum after about a year and a half of building credit, it was easier to get than the Sapphire reserve, which I had to call the reconsideration line for. I think because Amex Platinum is a charge card i.e. if you miss one payment they close your account, it is a bit easier to get.There are some people who say as long as your score is over 700 you can get approved for any card, which is sort of true as long as you have no bad information on your report. Your car loan would also look good on your credit report, they like to see different types of credit.
Toxic9813 - if these accounts were open prior to you being in the military, you can send them your papers to get the APR down to 6% APR. See: www.military.com/benefits/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html#close Also, thank you for your service!
On my 18th birthday, I received two credit cards. One from USBank, and one from Amazon. I paid 20$/month on those two cards, got two new lines when I turned 19, and one new line when I reached my year mark in the Air Force. Still stick to 20$/card. Also have a vehicle loan for 5500$. My credit score is 746 and I'm 20 years old. It doesn't take long to build up solid credit and it comes in handy quite often
Had a 610 credits score with no history last year. Got $400 secured card. Hopped up to a $4k limit Costco city card, and just last month I got a Chase Sapphire Reserve card at $11k with a credit score of 732.
I got my first CC in December of last year with Discover. $750 credit limit with my credit score topping 700. Got $12 worth of rewards so far, pretty exited tbh.
I make a little over 20k a year right now and I have a total credit limit of $30,000 spread out over 7 cards. I had a period of overspending and bad choices that I'm still paying down and have about 2k worth of debt but at the highest I had over 4k. My Chase Freedom has a limit of 6 thousand freaking dollars, I forget what it started out as but I never asked for an increase they did it multiples times themselves. Most of my cards have over a $3,000 limit. I was finally able to say enough is enough and am on track to have no debt in a few months but I can't even imagine how I would feel if I had even less self control and utilized all of the credit available to me. I would probably have hourly panic attacks. Part of me is glad that I have such a ludicrous limit in case of emergencies but god damn would I be fucked if I used all of it.
Yeah, usually you're able to get about 120% of your total income in available credit. When companies see you using their cards responsibly they want you to continue using them so they make money off interchange (swipe fees) fees. It's good to have a large amount in available credit, but you just need to be responsible with it. Companies are being more lenient now than they were in 2007-2010 so it's easier to get credit.
This is why you should get rid of most of the cards, if not all of them. Watch the Dave Ramsey videos about getting out of debt and staying out. If you save up an emergency fund, you don't need a card for emergencies. Dump the debt and live free. I had over a dozen cards and over 200k of credit card debt when I lost an 85k a year job and was unemployed for two years. My house was foreclosed on, and I had to declare bankruptcy. If you can afford to buy something, you can delay gratification, save up for it and pay cash. Actual money is the answer, not more cards.
Chris Moore Why would you have over 200k in credit card debt when you were only making 85k a year? I make about 60k a year and the highest I let my cards get is 4k.
Made it up to tier 3 so far. I did go backwards a bit in order to get a sign up bonus and lower my utilization. But hopefully by Christmas time next year, I can reach tier 4. That’s when I’ll be out of Chase’s 5/24 rule and I’ll go after the CSR.
At around 20 I got an AmEx Blue. According to this it's a Teir 2 card. It has no annual fee but I get points that I can use for anything (I mostly use them for amazon purchases). I've had the card almost 20 years now and the credit limit is higher than I'll ever need (over 20K) so that works fine for me. I love the features of the cards and the flexibility of the points. Since I'm not a heavy traveler, I don't think going to a different higher tier card would be useful for me. This video actually helped me see I'm right where i should stay.
For all the premium card haters, a run down...... Credit is a TOOL, not a LIFESTYLE. If you don't carry a balance, which you can't with a lot of Amex cards because they are CHARGE CARDS, then you can benefit from using someone else's money for the grace period. On top of that, you can enjoy the points and perks that come with them, for FREE or practically free, because you paid your balance in full when due. The "Prestige" that comes with some of the more expensive offerings, is only something that can only be justified if you can maximize the value (frequent travel for example) while minimizing the cost (use the credits and points, etc.) In other words, does it make financial sense? Think about whether you will actually benefit from ANY card before worrying about what it will do for your perceived status. A $500+ annual fee only makes sense if you can really enjoy the value the card can offer. P.S. The Shifu does an amazing job bringing this content to the masses. Please appreciate that as much as I do.
I have a Tier 1 credit card from Capital One. It's a big help for me on building my credit and hopefully in a few months or the next year i'll be ready for a Tier 2 credit card.
I have 799 credit score, an amex Blue Cash Preferred and no income . I needed to raise my credit limit to $10,000 and they actually did it in a few minutes over the phone lol I can't believe they actually did that but really do have the best customer service!
I have a hard time believing they approved you for a credit card with NO income, do you have large assets or when you applied did you report an income? That's something most companies will not approve you for regardless of score or age, you need to have an income so they know you'll pay them back.
I had one of their corporate cards for several years. I would pay the bill for it out of my own checking account and then my employer (who was shady as hell) would reimburse me…Anyway, they laid me off and I remembered how much I loved Amex customer service and thought to apply for a lower card…so I did and surprisingly they accepted me and then six months later, they even raised my limit. No, I don’t have any large assets but i have a chunk of change in my checking account but I'm not rich or anything.
Well when applying they ask for income... If you put 0 they probably wouldn't have accepted you, so did you put your previous income before lay off? Because that would make sense then.
One data point I'd like to add here. You mentioned the Capital One Quicksilver One card in your Tier two list and described cards in this range typically needing a mid 600s + credit score and having a $500 minimum credit line. The Quicksilver One was actually my very first credit card. I got approved for it with absolutely no credit history and was given a $300 limit. I don't know if this is something that happens regularly, but skipping the whole secured card/starter card tier was really nice.
worked for bank of America before, and trust you me, you should only use your credit card when your in a difficult situation or you have free interest rate on purchases(or any tier) for more then 12 months
Honestly for someone who's 18 with no credit or trying to recover from a bankruptcy or has little available credit etc.. Fingerhut is probobly the easiest credit line to get approved for.. of course it's all way over price junk but hey it's a boost in the right direction and they do report to credit bureaus.
with the capital One cards like the platinum credit card you can upgrade that to a quicksilver which will start running rewards and from the Quicksilver card you can upgrade to the venture card which earns you miles instead of cash back
If you're not card churning, you're missing out. Plain and simple. Take advantage of all those introductory offers and fly and stay around the world for free.
I had a really shitty credit score but I started to build it with FingerHut. They gave about $500 in credit so I would get random stuff and then pay it off. Since they report to the credit bureau my credit score went up a lot in a few months. It was good enough to qualify for a second tier credit card and I've kept it at that for a while now. My score now is very good and I manage it with credit karma to keep me informed.
I'd get a tier 4 card but I'm not paying a company an annual fee so they can make even more money off me and the places I shop so I'll stay with my tier 2 card
KawiET I have most of the t4 cards and they don't charge me annual fees. May b it's because they know they'll get canceled in a heartbeat. BTW haven't checked my credit or income in 20 years. Just keep sending me cards. Once you get a card they don't care, whatever you say is golden from there on.
Good luck with that, meanwhile you won’t be able to compete with all those “idiots” that wasted their time learning math and other things you feel are unnecessary.
My score is 791. Been building my score for about 6 years by using my credit card as my debit and paying it off. That’s all I did until I got my car. Be responsible and pay on time and the credit game is cake and will work for you instead of against
I was very happy to receive my American Express platinum card 2 years ago and I used it for a year until I stopped traveling for work. At the time my credit score was actually developing and it was around 660 and my income was bit higher than the American household average income. I really love American Express for their service. When I stopped traveling for work and I saw that gold card give me more perks for charging restaurant bills and groceries I switched from American Express platinum to rose gold. Although the fee is $195 a year but with the airline credit and other parks I get way more out of this card then the fee.
Chris Moore I got $60 bucks 😂 just for using a basic student credit card that discover offers. Didn’t pay a single penny in interests because I paid it all at the end of the month.
I still have my first credit card, Amex everyday. Had it for 4 almost 5 years now and have a 20,000 dollar limit. Never had to ask for an increase. Once I get sometime of my debt managed, going to go with the Amex gold charge card. Get them POINTS
I remember watching your channel a while back and I purchase a secure discover 200 deposit and I just graduated and my credit limit went up to 1500 dollars after a year and credit one bank increased to 400 to additional 200 dollars more
Income is about 30,000; credit history of only five years at the time with only three credit cards; got approved for the Citi Prestige last year, and I have been using it a lot since then. As he said, a balance of credit score goes into it, and I have only been using a credit card for my expenses since I got my first card at 18.
Travelers spend a lot of money from flights, hotels, to restaurants and services they spend while out on a vacation. People could easily overspend and not be able to pay within the billing period. One month of interest could easily cover the points they earned. Bonus points if the cardholder already had unpaid balances made from the previous trip. There are a lot of people who travel to search for “enlightenment” and clearly has no means to pay it.
Excellent video! Agree and support the logic of your rating tiers! I might suggest you consider adding Citi AA Executive Mastercard (Black) and Barclay's Blackcard to Tier 4 cards. Both provide concierge benefits, travel points, and Citi AA allows you and guest access to the Admiral's club. Barclay's also provides access to Priority Pass clubs. Both are in the range of $450-500 a year. Thanks
pavel merenkov I watch dave. I agree with him besides the credit cards. One can use them to their benefit with no interest being paid. Free money and points for doing purchases you would have done with cash anyways.
LarryM Yes and no. From one point yes you pay off the highest interest and you might start saving in the long term. But if you pay off the smallest debt first your now not paying interest on as many things. Example. Item #1 $100 #2 $75 #3 $25 #4 $14 $214 a month going to interest. If item 1 takes you lets say 5 years to pay off but item 4 you can pay off in 1 year. Why not just pay it off and save that interest $ to throw at more debts.
His argument is that most people have no self control (which is true) and CCs only lead to more debt, which they do in most people's cases. The only people who should get a CC are those who have proper self-control, and that pool of people is a lot smaller than you think. Most people should not have a CC. I'm someone who has the self-control for a CC and even I don't have one because my self-control is that great that I have no need for one. If you need a CC, you can't handle a CC. I agree with him for most people because it's only going to cause more debt for them because of how they turn into children when they get money. But for people like people who don't need one and have slef-control for one, I disagree with Dave. But majority of the time CCs are bad for a person to get.
Lnay Niang yeah making 30k I don't think you will be able to use all the benefits of the card because it costs money to get anything out of it. I make 4-5 x more and I barely can justify having it.
The platinum card isn't really that difficult to get if you have decent credit with no derogatory marks/bankruptcies/any charge offs or repossessions. It's even easier if you previously had a relationship with American Express before. In addition its a charge card, so they're more lenient than a credit card. You should check out the Ameriprise version, free annual fee for the first year. :)
It's $550/year not month. Also this person could be living at home with no bills/rent, $30,000 of pure disposable income. You also get a $200 airline credit which effectively makes the AF $350, plus the new Uber credits and lounge access.
I started with the Well Fargo Student CC with $1,200 limit at 16. Then moved straight to the Chase Sapphire Preferred at 19. Originally they denied me due to age/CC length of time. I appealed it and got approved a few months later for 10k limit. They just raised my limit when I turned 21 to 20k. Pretty sweet pulling out my card in front of friends at restaurants....I pay off my balance monthly btw...never ever paid interest in my life or late
I think your information about the credit limits of these cards are off. I have an amex blue cash (the no annual fee one) and it has a limit of $20k. However, my chase marriot premier card which you listed as tier 3, has a limit of only $6k despite being a higher tier than my amex. Amex also emails and mails me several times a month inviting me to apply for the amex platinum which i'd love to own, but don't because miss me with that $500 annual fee. Fuck that. Credit score of about 780-790 here
Rusty Shackleford The Tier 2 cards have lower standards so in comparison you get a much higher credit limit than average. The Tier 3 cards are more well suited for your score so you get an average credit limit.
Alas, only $500. They said they would give me a credit line increase after I pay on time the first 5 statements. And no, they did not give me the signup bonus or 0% apr period. They said my credit was not good enough for that. But hey, at least they approved me at all. It is still an Amex. Hehe.
$500? I thought the lowest Amex offered for credit limits was $1,000. That's interesting. Also when signing up online it shows what signup offers are available and you automatically get that offer if you're approved, they don't approve you and say your credit isn't good enough for this signup bonus. I think the Amex everyday is always 10,000 MR after $1,000 spend in 3 months but they have a 15,000 MR bonus that pops up sometimes. It's a foot in the door with amex though for future cards.
I remember they gave me a low credit line years ago, I can't remember if it was 500-1000 but i still got the rewards. Now they give me crazy amounts i will never use 25k+ per card.
Quick ad addendum to your point about “typical limits”: The bank that you use for your regular banking (direct deposit / checking account) will be more willing to give you a much higher limit since they can easily verify your income. Starting out with a 620-640 score I received cards from Capital One with limits of $4000 and $3500, Citi for $3000, and Discover for $2000 reporting an annual income of $120,000. Chase (whom I normally bank with), on the other hand, instantly approved me for Freedom with limit of $15,000 and Slate with limit of $12,000.
![[Full Guide] How to Climb the American Express Ladder in 2024](http://i.ytimg.com/vi/g5PdY-Kcduw/mqdefault.jpg)
![[Full Guide] How to Climb the American Express Ladder in 2024](/img/tr.png)
Tier One 0:30
Tier Two 2:24
Tier Three 3:38
Tier Four 6:15
Tier Five 9:01
12:10
Up you go sir
👐
VeNoM0619 Thanks saved me from having to watch the rambling
Not all heroes wear capes Alex G
My score is 820. I only travel in airports about twice a year so tier 3 is working great for me. I don’t make that much money either. But the house is paid for and so is my car. I carry NO balances and just collect rewards.
Just as it should be
@@SmartyPantsDumbShit Yeah, but you're accruing rewards for when you need them (for ex. family emergency a few states away).
JJ R good my nigga
Why must you boast about your credit score? Jk great job!
I want to be just like you.
Tier 1: Least likely to get stolen
Tier 2: Gonna get stolen.
Tier 3: Gonna get you murdered.
Tier 4: Bank already robbed you.
Tier 5: You robbed somebody else.
SnowblindOtter 🤣🤣🤣🤣
SnowblindOtter I do not understand this at all
Если хочешь избавиться от плохой кредитной истории, то глянь видео на моем канале
I'm dyingggg LMAOOOOO
😂😂😂
I am a car dealer and it is scary how little the public knows about personal finance (especially credit). Credit is not taught in any public school system that I am aware of here in the US. How credit scores are calculated, what credit bureaus are (or which exist), what gets reported on your credit, etc. The same is true of retirement. If people were actually educated on what happens when you can no longer generate an income maybe some people would build a portfolio. If I would have saved through my 20's instead of blowing every dollar I had, I could have retired in my 40's.
Chris Wesney i didn’t even know credit bureaus existed thanks schools
I don't even know any about this till now and I'm 20. So I really need help about all this stuff. Only thing I know is to save money. thats it
So as long as schools teach kids how disgusting these bureaus have become, and that they don't give a crap about securing your mined personal data; unless you pay extra. :)
I won't consider credit as "personal" finance. Calling it personal finance is where a lot of people go wrong with credit. The best bet is to just avoid even starting with the mentality of borrowing.
Well said, mr.
This comment section is amazing.. all these people saying cc's are the devil obviously dont know how money works at all. Here is a free lesson. Step 1: use card Step 2: pay card... The end
The problem comes in when you spend more than you can pay and that is something that the cards make easy. It is better to not have them. They only provide instant gratification. If you can afford the thing you are buying, save up and pay cash.
Chris Moore shut up
The type of people who say CC are bad usually get cash advance and spend it on frivolous crap like chains and rims.
Chris Moore you have a valid point...but why pay for an item using your debit card (which doesn’t help your credit score) when you can use a credit card (which if paid off, improves your credit score?) Like, if i have $500 for an item in my bank, yeah, i can buy the item outright, but i’d rather buy it with a credit card and pay off that with the $500 in my bank so i get a credit boost. Long term, the better my credit, the less roadblocks i encounter when buying bigger stuff like cars, houses and getting loans in general.
liveguy yeah but it also shouldn’t be based of credit , that’s stupid so if someone buys gas and pays it every day they deserve a home loan more then the guy who pays his bills on time cash and doesn’t buy shit he can’t afford it’s a double edged sword
great video. I managed to get my score up to 751 (and growing) at 22 years old through videos like yours!
You forgot to talk about the Bat Credit Card that Batman has in the "Batman and Robin" movie. You know, "Never leave the cave without it." That one must be Tier 6: Batman Only.
People don't like credit cards because they are afraid of the fact that they don't have self control. I understand and respect those that chose not to have credit, but don't blame the card and its process for your irresponsible behavior. This is the type of audience Mr. Dave Ramsey attracts. However, just because YOU can't handle the large responsibility of having CC's, doesn't mean you need to shame others that do. Everything in life is about perspective. We obviously are reaping the benefits and know what we are doing. Otherwise, we wouldn't have them. If you want to play it safe; don't go over a 10% utilization rate of your overall allotted balance, and pay that balance off every single month a few days before the due date. It's really that simple.
Also take into account the propensity for CC companies to screw over those indebted to them, especially poor under-educated people who have a hard time navigating the legalese of a contract and its not so surprising how people tend to regard CCs as a devil's trap. charging 40% on a 1000 dollar charge because you failed to pay off 1 dollar on the balance is just straight up usury imo.
I don't like credit cards and My score is over 800. You're an ass hole for making that generalization. Credit cards are not necessary for a good score, and because people don't want to use debt to buy groceries doesn't make them irresponsible, I'd say in makes them smart. The average household pays $thousands per year in CC interest. For what?
I can tell you fly as hell🤩
@@TruthAndMoreTruth if you have collateral with the bank than it's not really debt.
@@Rechard1107 WTF are you talking about? Using collateral to back credit doesn't make borrowed money any less borrowed, and is still very much debt.
Credit Shifu and Ask Sebby are to the RUclips credit card game what Chase and Amex are to the points and miles game. These guys are the powerhouses! Thanks so much for the great content.
James as been the best *14234516435*method to use when you want to end a relationship with someone
I had Quick Silver at $500. Now its at $7,000. Took about 3 years. Patience my friends. Had my score at 550 now its at 740 took about 3-5 years.
George W Bush that's wonderful! ! good 4 u:)
Dude, how???? I mean besides being president.
I had a quick silver for 3 yrs started at 500 ended at only 1500 with a credit score of 725....after 3 years i canceled it....and got american express now have 10k limit.im guessing ur intrest rate is through the roof my captial one was 26% my american express was 0% first 15 months....il never own a captial one card again....they are good starter cards though thats it
Capital One is very frugal at credit increases. It took several years to get to $9500.
Same here dude, only I got the Discover it Student card with $500 and after 2 years I'm at $7,000.
I feel like I made it by getting approved for a tier 2 card :).
When you have over 1 million views on a video, it's good to have some friendly competition. Just like you, I love talking about credit cards & many things changed since 2017. As you mentioned, I did go ahead and update my title to add 2020. Thanks for your comment and I appreciate all your content and really enjoy these topics. Wish you all the best, you are an icon!
Basically Tier 2 is best, beyond that you better travel and eat a lot to justify the annual fee
yes, although maybe not as much as you think. 2 or more trips a year can have the cards totally pay for themselves
I think even one trip a year can have the cards pay for themselves. Depending on the price
@@FalconChief222 1 trip is good. If you go to another country. The Reserve offers insurance if you rent a car with it so you don't need to pay 400 for the car rental agency insurance. It also offers money in case you are caught in a country and you need to be rescued. You get a free credit towards travel I think about 300 every year so the card is only a 150 ANNUAL Fee if you travel atleast once a year. So many perks man. Can't live without it
I stick to tier 2 as well. I use Costco card for gas, travel, dining and double cash for everything else. I do travel a few times a year, but have never thought about lounge access or baggage since I fly southwest a lot. Any reason to get a different card?
Even the chase sapphire reserve with "$150" annual fee seems like a lot to try and make up with travel spending
Unless you churn credit cards. Consistently applying for and cancelling cards after using the benefits can be a way to really profit off of higher tiers without paying annual fees
Your tier system went into great depths, very informative.
If you want a really quick method for improving your credit score then go here now: HootCredit.xyz
This credit team is legit. Not like other large companies that make you do all the work yourself and just send out generic dispute letters. My Credit Group had a custom plan setup just for me. And so far it has worked great. I have went from a 554 to a 793 in 5 days. They get my vote! *MASTERCREDITFIX at GMAIL dot COM*
Denzel Demond James as been the best *14234516435*method to use when you want to end a relationship with someone
People who say they "hate credit cards" are irresponsible and don't know how to manage their money. Why wouldn't you want to get a free flight, or hotel upgrade or cash back on money that you would spend anyway?
Credit cards are borrowed money, spend within your means. Use it, pay it off at the end of the month and get some cash back. Simple.
If you don't like or don't believe in credit cards, go watch a different video. This channel is obviously not for you.
Keep up the good work Credit Shifu, between you and Ask Sebby I have gained some really great knowledge and already am reaping in some great benefits.
The perks are not worth that much and too many people do spend more than they can afford because they only consider the monthly payment and not the amount they are paying on interest. I had over a dozen cards including three AmEx (Gold, Platinum and Green) and over 200k of credit card debt when I lost an 85k a year job and was unemployed for two years. My house was foreclosed on, and I had to declare bankruptcy. If you can afford to buy something, you can delay gratification, save up for it and pay cash. Actual money is the answer, not credit cards.
@chris moore. it wasn't the credit cards fault u charged up 200k.we all know an 85k a year job isn't guaranteed the next year so why go in debt 200k.credit is cards should be used to make money not go into debt.
What about the apr
You do realize if you pay off credit card debt, they call you a deadbeat right?
321Ian123 the classic keyboard warrior, “like sheep being led to slaughter”. Stop trying to sound like your so intelligent, or like your really sticking it to the banks. Credit cards are a tool, but you must be careful to live within your means.
Tier 2 is the sweet spot for most I believe. Tier 3 and above is worth it if you're gonna be traveling a lot staying in hotels
Me and 2 of my friends applied for Capital One Journey Rewards when we were 18 and I basically tanked my credit because I didn't know any of the stuff I do now. Fast forward to 2021, I'm 23 and in the last year my score went from 580s to 730s and I'm waiting on my Freedom Flex :)
I had a Amex card of less than $1000 limit but i needed a business card and better credit score so i could invest them all in my business, but as reality would have it i was only able to boost my credit score to a 740 with the help of a credit repair company. Now am more focused on having the best credit card. Thanks for such great information Credit shifu.
Sara Geralds, how did you get to that high credit score?
@@juliahewitt7772 With the help of a credit repair company.
@@sarageralds7038 How do I contact this credit repair company?
Request for a call or text using 775 468 3518
@@sarageralds7038 Thanks so much, they are called credit streamers. I started using this repair company last month and I already got some collections removed and also working on my bankruptcy. Thanks for this great opportunity.
10/10 channel. This should be taught in public schools.
Just turned 18 a month ago got my first credit card and now watching this i’d say i’m finally doing something good with my life
I just wish Tier 3 and above offered rewards other than travel/business expenses. Until that happens, I'm perfectly happy with sticking with my Tier 2 cash back cards, which give up to 5 to 6% cash back for purchases.
Gamer2k4 I agree.
Generally one is not putting a significant amount on a card and paying it back quickly and consistently unless one travel frequently. I have yet to think of something that would match that flow of funds. Perhaps if one subscribed to every subscription service out there that might get close. I feel like that is why there is a shift to travel perks as you go up in tier.
What card have you found that gives 5-6% back?
@@MYG The best cards only give 2% back overall. Some cards give 5% back on certain categories. That is what he's talking about.
@@unknow123abc I run all my business expenses through my credit card to get 2% cash back. I'm in a similar boat as the OP. I can't find a use for cards above Tier 2. I use Citi Double Cash.
I worked for Merrick bank. Basic but a good card for credit building. Capital one platinum is great. After 6 months of on time high payments, I was given $3K credit increase. Remember folks, pay early, pay in large amounts and credit cards will bless you. Don't be late.
As someone who has a 750+ credit score I'm more than happy with "tier 2" credit cards. I have a Capitalone Quicksilver, a Chase freedom, and a few other cards. Cash back for me is simple and I usually use that as a gift to myself every year when I cash it in. The annual fees depending on the card I guess don't seem to outweigh the benefits unless you spend quite a bit. I'll probably keep using my Capitalone credit card for quite sometime. That's the only company that would touch me having very limited credit history.
Nice vid! Just got approved for AMEX Platinum with a little over a year credit history and 720 Equifax. I'm excited to say the least and the $550 annual fee is waived because I'm active duty military.
Congratulations! And thank you for your service keeping the nation safe!
Michael Davis thank you for your service ✊
Good to see the military getting perks. About freaking time!
Michael Davis Thats awesome!!! Thank you for serving.
Michael Davis thank you for your service. hope all is well still two years later!
someone handed me a metal card at work, he purposely told me to slide it to show it off, it was amazing
Excellent and accurate advice on all these cards. I have used everyone one of these cards in the order he talked about from Credit One with the annual fee and the Capital One Platinum and then the Discover It Card and then getting rewards etc. just pay the monthly payments on time and you will build your core. I was a 540 credit score 2 years ago and used the cards and paid on time and now I’m at 699 credit score!!
This is helpful and you made some good points, I was battling with my credit for so long and most of the things you mentioned are true. All newbie in the credit system needs to watch this video so you can build your credit score to a 814 just as I did.
So many comments saying not to get a credit card.
If you want to make any larger purchases in life (cars, houses) and your not paying outright. You need good credit.
Just buy what you know you can pay off.
To buy a car you need at least a years worth of credit experience.
I got a credit card at 17. Built up my credit for a year getting a score of 700+ and was approved for a car.
I only put $50-$200 max a month on the cards ( that’s over three credit cards) even tho my limit is much higher.
Don’t spend what you don’t have. I only use them for gas and groceries- and I have one for emergencies (vet bills etc)
If you can only pay off $50 a month. Than only buy $50 worth of goods. Your credit score will still go up.
I started with Capital One platinum recently. In two months my score has gone up 30 points paying triple my minimum back one week early. Everytime. Make sure the funds you spend already exist in the future. I view it as swapped gratification.
Jake only 30points? mine went up 138points. They fucked you over
I got a Chase Freedom unlimited 2 months ago. It is my first credit card. A credit limit of $1000 and 3% cash back on all purchases for 15 months and 0% interest. I had no credit before, and I’m 19 years old. I am making 23k a year and said I’m paying no rent is probably why they approved me but I got lucky this is a really good car I already have 4200 points collected
Lol I got a credit one card, helps build some credit I guess. My credit score resembles a pothead’s favorite three digit number.
sad bro even my score is higher then that without a credit card
rayne shep my dog has a better credit score than me.
sithlordsoup 666 lol
WICKEDLEE LOOPY 420.
brutus301 yeah I’m gettin there, slowly but surely, reports are around the 580 mark so I’m progressing
Amazons card is my all time favorite. I get free money just for shopping, and no fees. If you pay it off each month nothing is wrong with credit cards.
PSA for the ambitious college types:
I'm a sophomore in college, have about two years of good credit history, a car loan, scores hovering in the mid-700s the last few months. I live with parents and have a decent job, but you can still pretty much guess my financial state. But a few days ago after constant researching for the best travel card I said fuck it, applied, and got approved for the Chase Sapphire Preferred card! It will cost you $95/year but if you think about it, just set aside $8/month while the 0% APR is in effect. Spotify Premium is literally more expensive than this card. And if you're keen on traveling once college ends like me, get this card because everyone I've talked to at Chase and irl all say this is the most versatile card for value when it comes to rewards.
David Bob dude if you are in college Spotify premium is only 5 bucks a month get your prices right /s
LarryM haha true though, I love my discounted music.
thedog556 I actually took a loan to buy a cheap car when I had the cash just to have something on my credit score
I started a few online based businesses. Charged everything on my personal credit cards, as well as gas, and my rent. Payed it off in every month and got a Amex Platinum really easily.
I actually got an invitational letter this year for the centurion. I kindly refused and bought a Rolex with that money haha, I still have the letter framed.
Lol
W?
Chris M if I was rich I would turn it down SPECIFICALLY because I’m rich
I just got a Discover card and I love it. Great customer service, great perks.
he broke but he has a $2500 retina iMac. Must have whipped out the Barclays
lol
hes broke because he bought that $2500 piece of apple crap
@@mwbgaming28 your name says it all
your point is?
@@mwbgaming28 boo
I loved your video...you are really good at explaining credit cards...and you are not confusing! Thank you soooo much.. LIFE SAVER!!
As a teenager that's soon to be entering the scary world of adulthood, it's nice to see some explanations. I don't want to get debt, so I guess it's best to just spend a little bit on the credit card that you know you'll be able to pay off at the end of the month, right?
Treat it like ur debt card
eri yeah basically 👌, spend only what you can afford to pay back
As long as you understand that you will use the CCs for building up your credit score, to take advantage of the perks and not paying a single penny in interests, you'll be ok.
The best way to not get into cc debt is to treat it like your debit card if you only have 500 in your checking or saving account. Obv you shouldnt be going around charging 500+ on your credit card since you dont have the fund to pay that back. Most people who get stuck in debt charge a crap ton on their cc when their monthly income can’t cover that bill so they end up paying the minimum payment and then before you know it they have like months worth of debt with no way to pay for it. Just dont carry a balance pay everything off in full every month. Sit back collect the cash back and rewards that your cc offers and travel!!! Good luck
You can use your first CC for gas and nothing else. This isn't usually a lot of money each month and it's money you know you're going to spend anyway. So your monthly balance stays low. If you use 25 bucks at the pump, you make sure to put aside 25 bucks when you get home. Do that for each transaction and pay it all off at the end of the month. Just use discipline and don't use your gas money for anything but the CC and don't use the CC for anything but gas. This will show that you use your card / credit monthly and every month you pay your debt. Do this for a year or two and they will raise your limit. Your score will grow and you can then get another card with better rates / terms to use for other day to day spending. Pay them all off every month. If the next card is better, stop using the first one but don't close the account unless they are charging you for some odd reason for not using it. Keep that pattern going through life and you'll likely never be denied credit when you need it for a house or something. Cars are terrible for buying with credit. They instantly lose value when you drive off the lot, have high depreciation (usually), etc. Buy a used car in great shape for a good price and pay cash. Take care of that car, pay less on insurance since it's not financed and save money for a better car in the future. You don't need to keep up with the Jones' and have some flash ride that has you in serious debt and strapped for cash. Just get something dependable and reasonable that gets you to work and back reliably. Save your money for when you're stable and have a nice house.
Very good breakdown !!! I’m glad you explained the differences between the tier systems , credit worthiness, gross income and how it plays a role in your credit history. Good job 👍
Not sure if this exists in the US, but in the UK the Amex Platinum gives 1.25% cashback. Great way to boost credit by putting everything on the card and paying in full at the end of each month, whilst getting some money back.
Thank you. This has been very informative. Your site is amazing. Keep it going
I could care less about tier 3! I want no annual fee and unlimited cash back!
so you want tier 2 cards.
Fantastic video, concise and informative! I support many of the other comments calling for finance to be taught as a high school subject.
Wish I knew this information at 18! Better late than never though. Thanks for the information. Subscribed!
Joe Gil this is absolute shit advice. It will ruin a 18 year old child’s life. Check out Dave Ramsey, and learn just how stupid this SHIT is
Joe Gil i know! I was good for credit cards because I'm careful with money... Which is why i didn't want to bother with credit cards. Fuck i could have an 800 by now and a decade of history
Bob Marley Dave Ramsey is a charlatan
Dave Ramsey is good for some things, no doubt (his plans for getting out of debt are pretty good from what I've heard, and he has great investing/savings tips). However his stance on credit cards is actually just ridiculous. If you lack self control and can't stay within your means, then you should not be getting a card. If you understand what's going on with your card, you can greatly benefit from it.
Dave Ramsey speaks from his own personal experience for the most part, and this is not applicable to everyone. If you're uncomfortable with credit cards, then don't do it, it would probably be better. But because they don't work for you doesn't mean they don't work at all
I'm 18 and I know how stupid it is to use a credit card. Your paying hundreds of dollars a year when you have one. Rule of thumb is if you can't afford to buy something don't buy it!!
Great videos. You helped me raise my credit score and take advantage of the rewards perks. Thank mate!
goldenboyx92 🎩
😁
👕👍Great!
👖
My credit limit got quite absurd given I had an unbelievably low income.
I mean, I believe at the end of it my credit limit was about 5 times my monthly income?
Yeah, that was a bit crazy.
It's not that unusual to get a $10,000 USD credit limit on a card if your credit history and score are good. The history will show that you pay back your debts and the score will help show that you don't really ever use that much credit so it's low risk for the lender that you will bankrupt and not payback the debt.
that's awesome!
I know people that presently have bankruptcies on their credit profiles and yet were pre-approved for Amex Gold Premier Cards within just a few years of re-constructing their credit profiles with something as simple as a tier-1 Captialone card(coupled with responsible payment habits!). Many of these Banks and Institutions have lowered their standards in pursuit of reeling in customers to become more usable "products."
That does not sound that crazy when your using monthly income. I think having 5x your yearly income sounds a little more out there.
Once the money keeps rolling they don't give a fuck.
You're the best. I appreciate that you took time to share all of this information with such clarification. Thank you.
I think it's a bit silly to speak so poorly of credit cards, especially if there are cards with little to no annual fees.
Why?
1) If you're paying cash, it rarely ever helps to get a price redux with cash unless it's a rather large purchase like a car, large appliance from independent store, etc. It greatly depends on the amount you spend and WHERE you spend it.
2) If you can make your normal purchases AND get a little bit extra back in your pocket, why would you not? You can learn how to leverage reward points or get straight cash back on cards and use it directly on your balance or consider it a "end of year bonus" and request your check every end of year, tax free. I have a business Cap One 2% cash back card. Last two years I've done my usual business spending with balances paid every month and come out with $11K 2015 cash back and $13K 2016 cash back.
The point is to leverage the system in your favor. If you can't pay your bills on time or aren't a disciplined spender, DON'T get a card. If you are conscious of the dollars coming in and out of your home, make it work for you and it's extra money in your pocket.
P.S. Other bonuses of many cards include
1) Free travel insurance
2) Free baggage fee coverage
3) Hotel upgrades
4) Free car insurance
5) Purchase protection
6) Upgraded shipping on purchases
7) Airport lounge entry
8) TSA precheck fees covered
9) Travel concierge
10) Uber fees covered up to certain amount
Spending on a card makes it easy to spend more than you would if you were paying cash. You spend more, without thinking about it, because it isn't your money. Not until the bill comes. There have been scientific studies on this. It activates different centers in the brain. Spending your actual money makes you think about it where throwing a card down doesn't. If you spend cash, you spend less. The perks are just not good enough to counter the costs. They don't give that stuff away, they are making mad money on you.
Chris Moore build self control
Chris Moore this makes no sense. Cash is an older commodity most young people that don't work for cash buy receive checks don't even pay for anything with cash. With Apple pay debit and credit cards cash is becoming obsolete. There is no excuse that you spend more with a card than with cash unless you are buying things you can't afford for the wrong reasons.
Chris Moore pay your card every month before it accrues interest and you will save more money this way and stop buying things you don't need. The companies make money from charging the places you buy things from for using their service hence why some places have started having a minimum amount you can spend in store on your card
I am assuming you mean free RENTAL car insurance. Sign me up for the credit card that gives me free car insurance for my primary car.
Omg the comments about other comments are hilarious. I knew the sorts of cards that were out there so I was just interested in seeing how you'd display them. Great job btw.
I used to have great credit but I ran in to hard times a few years ago and now I'm paying off debt and building it back up.
I've been traveling a lot more about 6 times in the last 3 months. I don't think it'll stop so now I'm motivated to upgrade cards in the future. Thanks.
AMEX keeps inviting me to sign up for a Platinum card, but that annual fee is steep to say the least.
DuhAverageJoe if you have the money to spend a lot on it then go for it as you could get the black card otherwise just do it if. You can afford the signup fee
Yeah pp
The perks shadow the fee immensely.
Just do it. They eventually stop sending you card offers, then you will wish you had gotten one of their cards. Worst case you stay in good standing with them. You ruin your credit because of life, but you still have a good history with them. So when you finaly rebuild and are at 680 or 670 they will likely still take you back. Other wise goodluck getting over 720. So just bite the bullet pay the fee.
If you travel a lot then get the card, if you don’t travel or live in airports, the gold or Chase Trifecta is better
Best explanation on US Credit Cards I have seen! You did awesome 10/10
They should include this tier next to card offers hahhaha
Hello. I'd like to weigh in. I'm active duty military, and I find myself as a huge exception to all of your guidelines here.
At about 2.5 years into my credit history and at 20 years old, my total credit limit is over 40,000 with 4 cards. One is 22,000 by itself. Interest rates are as low. 11.5 percent on that card, higher on my others. I am active duty military and I've had a car loan for about 1.5 years plus using and paying in full my cards every month.
So, after a single year, I was nearly 19, just before my first car loan, I was approved for Amex platinum. My credit score was, according to Credit Karma, about 700. My annual income at that time was barely over 20,000. Is there an explanation for these things? Does being military affect my credit or eligibility in ways that I can't see? My parents credit is average. Does that influence me at all? They ever co-signed anything.
My score is now 766 according to C.K. and I'm getting offers all over the place for low interest loans and cards. And I'm not even 21, and I still make around 25,000 a year. I'm still not even 21! It's like I'm on a fast track or something. Is it usually this easy or did I get a boost somewhere?
PS: all American Express fees are waived, entirely, as active duty US military. I pay nothing for the benefits. Maybe it can be a note in a future video for your possible young military viewers who are new to credit.
Toxic9813 they just seen you have a stable income and a good credit history. Cards will be happy to give you cards so they can gain a life long customer. Remember too much available credit can be a bad thing. Just get what you need realistically.
Having available credit in excess is never a bad thing unless you abuse how much is available. It's always good to have a lot of available credit to keep your utilization low and amount available high.
The amex platinum isn't really difficult to get if you don't have anything bad on your credit report and have a decent income. I started credit building at 19 (I had no credit but also nothing bad on it) and a year later I had 7 credit cards and a 779 credit score. I pay all my cards bills on time with Autopay and at the time my stated income was only $35,000. Also I believe almost all card companies waive annual fee if you're active military.
Yeah we got Amex Platinum after about a year and a half of building credit, it was easier to get than the Sapphire reserve, which I had to call the reconsideration line for. I think because Amex Platinum is a charge card i.e. if you miss one payment they close your account, it is a bit easier to get.There are some people who say as long as your score is over 700 you can get approved for any card, which is sort of true as long as you have no bad information on your report. Your car loan would also look good on your credit report, they like to see different types of credit.
Toxic9813 - if these accounts were open prior to you being in the military, you can send them your papers to get the APR down to 6% APR. See: www.military.com/benefits/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html#close
Also, thank you for your service!
I also have a tier system.
tear 1: use credit card, gets declined
tear 2: check balance and it's zero
tear infinity: check bank account savings = 0.
On my 18th birthday, I received two credit cards. One from USBank, and one from Amazon.
I paid 20$/month on those two cards, got two new lines when I turned 19, and one new line when I reached my year mark in the Air Force. Still stick to 20$/card.
Also have a vehicle loan for 5500$. My credit score is 746 and I'm 20 years old. It doesn't take long to build up solid credit and it comes in handy quite often
Had a 610 credits score with no history last year. Got $400 secured card. Hopped up to a $4k limit Costco city card, and just last month I got a Chase Sapphire Reserve card at $11k with a credit score of 732.
Last I checked I had a 420 credit score. Lit af bro.
I got my first CC in December of last year with Discover. $750 credit limit with my credit score topping 700. Got $12 worth of rewards so far, pretty exited tbh.
I make a little over 20k a year right now and I have a total credit limit of $30,000 spread out over 7 cards. I had a period of overspending and bad choices that I'm still paying down and have about 2k worth of debt but at the highest I had over 4k. My Chase Freedom has a limit of 6 thousand freaking dollars, I forget what it started out as but I never asked for an increase they did it multiples times themselves. Most of my cards have over a $3,000 limit. I was finally able to say enough is enough and am on track to have no debt in a few months but I can't even imagine how I would feel if I had even less self control and utilized all of the credit available to me. I would probably have hourly panic attacks. Part of me is glad that I have such a ludicrous limit in case of emergencies but god damn would I be fucked if I used all of it.
Yeah, usually you're able to get about 120% of your total income in available credit. When companies see you using their cards responsibly they want you to continue using them so they make money off interchange (swipe fees) fees. It's good to have a large amount in available credit, but you just need to be responsible with it. Companies are being more lenient now than they were in 2007-2010 so it's easier to get credit.
This is why you should get rid of most of the cards, if not all of them. Watch the Dave Ramsey videos about getting out of debt and staying out. If you save up an emergency fund, you don't need a card for emergencies. Dump the debt and live free. I had over a dozen cards and over 200k of credit card debt when I lost an 85k a year job and was unemployed for two years. My house was foreclosed on, and I had to declare bankruptcy. If you can afford to buy something, you can delay gratification, save up for it and pay cash. Actual money is the answer, not more cards.
Chris Moore dave Ramsey is the man
Chris Moore Why would you have over 200k in credit card debt when you were only making 85k a year? I make about 60k a year and the highest I let my cards get is 4k.
Jacob Whiting maybe interest was included
Made it up to tier 3 so far. I did go backwards a bit in order to get a sign up bonus and lower my utilization. But hopefully by Christmas time next year, I can reach tier 4. That’s when I’ll be out of Chase’s 5/24 rule and I’ll go after the CSR.
I got approved for a Amex ED (1k) with a income of 5K/yr and a score of EX750
At around 20 I got an AmEx Blue. According to this it's a Teir 2 card. It has no annual fee but I get points that I can use for anything (I mostly use them for amazon purchases). I've had the card almost 20 years now and the credit limit is higher than I'll ever need (over 20K) so that works fine for me. I love the features of the cards and the flexibility of the points. Since I'm not a heavy traveler, I don't think going to a different higher tier card would be useful for me. This video actually helped me see I'm right where i should stay.
For all the premium card haters, a run down......
Credit is a TOOL, not a LIFESTYLE. If you don't carry a balance, which you can't with a lot of Amex cards because they are CHARGE CARDS, then you can benefit from using someone else's money for the grace period. On top of that, you can enjoy the points and perks that come with them, for FREE or practically free, because you paid your balance in full when due.
The "Prestige" that comes with some of the more expensive offerings, is only something that can only be justified if you can maximize the value (frequent travel for example) while minimizing the cost (use the credits and points, etc.) In other words, does it make financial sense?
Think about whether you will actually benefit from ANY card before worrying about what it will do for your perceived status. A $500+ annual fee only makes sense if you can really enjoy the value the card can offer.
P.S. The Shifu does an amazing job bringing this content to the masses. Please appreciate that as much as I do.
I have a Tier 1 credit card from Capital One. It's a big help for me on building my credit and hopefully in a few months or the next year i'll be ready for a Tier 2 credit card.
I have 799 credit score, an amex Blue Cash Preferred and no income . I needed to raise my credit limit to $10,000 and they actually did it in a few minutes over the phone lol I can't believe they actually did that but really do have the best customer service!
I have a hard time believing they approved you for a credit card with NO income, do you have large assets or when you applied did you report an income? That's something most companies will not approve you for regardless of score or age, you need to have an income so they know you'll pay them back.
I had one of their corporate cards for several years. I would
pay the bill for it out of my own checking account and then my employer (who
was shady as hell) would reimburse me…Anyway, they laid me off and I remembered
how much I loved Amex customer service and thought to apply for a lower card…so
I did and surprisingly they accepted me and then six months later, they even
raised my limit. No, I don’t have any large assets but i have a chunk of change in my
checking account but I'm not rich or anything.
Well when applying they ask for income... If you put 0 they probably wouldn't have accepted you, so did you put your previous income before lay off? Because that would make sense then.
I work in credit, 100% of the time a $0 annual income will be declined on principal
One data point I'd like to add here. You mentioned the Capital One Quicksilver One card in your Tier two list and described cards in this range typically needing a mid 600s + credit score and having a $500 minimum credit line. The Quicksilver One was actually my very first credit card. I got approved for it with absolutely no credit history and was given a $300 limit. I don't know if this is something that happens regularly, but skipping the whole secured card/starter card tier was really nice.
worked for bank of America before, and trust you me, you should only use your credit card when your in a difficult situation or you have free interest rate on purchases(or any tier) for more then 12 months
Got my First Credit Card 2 years ago. Started with the Chase Sapphire Preferred. Just got my Amex platinum
Don't forget fingerhut if your super poor
Honestly for someone who's 18 with no credit or trying to recover from a bankruptcy or has little available credit etc.. Fingerhut is probobly the easiest credit line to get approved for.. of course it's all way over price junk but hey it's a boost in the right direction and they do report to credit bureaus.
with the capital One cards like the platinum credit card you can upgrade that to a quicksilver which will start running rewards and from the Quicksilver card you can upgrade to the venture card which earns you miles instead of cash back
If you're not card churning, you're missing out. Plain and simple. Take advantage of all those introductory offers and fly and stay around the world for free.
I had a really shitty credit score but I started to build it with FingerHut. They gave about $500 in credit so I would get random stuff and then pay it off. Since they report to the credit bureau my credit score went up a lot in a few months. It was good enough to qualify for a second tier credit card and I've kept it at that for a while now. My score now is very good and I manage it with credit karma to keep me informed.
I'd get a tier 4 card but I'm not paying a company an annual fee so they can make even more money off me and the places I shop so I'll stay with my tier 2 card
KawiET I have most of the t4 cards and they don't charge me annual fees. May b it's because they know they'll get canceled in a heartbeat. BTW haven't checked my credit or income in 20 years. Just keep sending me cards. Once you get a card they don't care, whatever you say is golden from there on.
I recommend buying take out and coffee with credit if you are a person who does that often it builds up fast
This is the type of shit that we should be learning in high school. Not that bullshit math crap we never use
Hextin that's what I've been saying but I think they want ever buddy in debt so were better work slaves
They want us ignorant and in debt my friend.
Matzpimp yo I think you skipped out the grammar and punctuation part of highschool lmao! That’s a huge jump 😂
Good luck with that, meanwhile you won’t be able to compete with all those “idiots” that wasted their time learning math and other things you feel are unnecessary.
It would be pointless explaining to you and your powder puff posse of winners that gave you a thumbs up why this sentiment is faulty.
My score is 791. Been building my score for about 6 years by using my credit card as my debit and paying it off. That’s all I did until I got my car. Be responsible and pay on time and the credit game is cake and will work for you instead of against
All the tier 4 cards are more easier to get then tier 2 cards!
I was very happy to receive my American Express platinum card 2 years ago and I used it for a year until I stopped traveling for work. At the time my credit score was actually developing and it was around 660 and my income was bit higher than the American household average income. I really love American Express for their service. When I stopped traveling for work and I saw that gold card give me more perks for charging restaurant bills and groceries I switched from American Express platinum to rose gold. Although the fee is $195 a year but with the airline credit and other parks I get way more out of this card then the fee.
I've earned 130 bucks so far this year from my credit card👌
I've earned so far 350 in 10 months no bad free money
How much did you have to pay in interest charges and fees?
Chris Moore not a single dollar, when you pay in full each month you don't pay interest.
Chris Moore I got $60 bucks 😂 just for using a basic student credit card that discover offers. Didn’t pay a single penny in interests because I paid it all at the end of the month.
I still have my first credit card, Amex everyday. Had it for 4 almost 5 years now and have a 20,000 dollar limit. Never had to ask for an increase. Once I get sometime of my debt managed, going to go with the Amex gold charge card. Get them POINTS
I got the capital one quicksilver with 580 credit scores on credit karma. Doesn’t look like you need mid 600s for it.
I remember watching your channel a while back and I purchase a secure discover 200 deposit and I just graduated and my credit limit went up to 1500 dollars after a year and credit one bank increased to 400 to additional 200 dollars more
To all those that are talking bad about credit. Not playing the game doesn't mean you win. You still lose.
Income is about 30,000; credit history of only five years at the time with only three credit cards; got approved for the Citi Prestige last year, and I have been using it a lot since then. As he said, a balance of credit score goes into it, and I have only been using a credit card for my expenses since I got my first card at 18.
What's with credit cards being so focused on traveling anyway? Was this some kind of old school cross marketing?
Travelers spend a lot of money from flights, hotels, to restaurants and services they spend while out on a vacation. People could easily overspend and not be able to pay within the billing period. One month of interest could easily cover the points they earned. Bonus points if the cardholder already had unpaid balances made from the previous trip. There are a lot of people who travel to search for “enlightenment” and clearly has no means to pay it.
This video really helped me and made me the reason why I want I should apply for it as far as credits Thank you so much
Subscribed, can you please do a review of the top rewards cards from Canada please?
Excellent video! Agree and support the logic of your rating tiers! I might suggest you consider adding Citi AA Executive Mastercard (Black) and Barclay's Blackcard to Tier 4 cards. Both provide concierge benefits, travel points, and Citi AA allows you and guest access to the Admiral's club. Barclay's also provides access to Priority Pass clubs. Both are in the range of $450-500 a year. Thanks
you should explain these steps to DAVE RAMSEY lol
pavel merenkov
I watch dave. I agree with him besides the credit cards. One can use them to their benefit with no interest being paid. Free money and points for doing purchases you would have done with cash anyways.
Isaac Spencer you should also disagree with how you pay off debt. You should always start with the highest interest not the smallest balance
LarryM
I don't have debt. Only so called debt I have are my credit cards that I pay the moment they post. So I don't classify that as a debt.
LarryM
Yes and no. From one point yes you pay off the highest interest and you might start saving in the long term. But if you pay off the smallest debt first your now not paying interest on as many things.
Example.
Item #1 $100
#2 $75
#3 $25
#4 $14
$214 a month going to interest. If item 1 takes you lets say 5 years to pay off but item 4 you can pay off in 1 year. Why not just pay it off and save that interest $ to throw at more debts.
His argument is that most people have no self control (which is true) and CCs only lead to more debt, which they do in most people's cases. The only people who should get a CC are those who have proper self-control, and that pool of people is a lot smaller than you think. Most people should not have a CC. I'm someone who has the self-control for a CC and even I don't have one because my self-control is that great that I have no need for one. If you need a CC, you can't handle a CC. I agree with him for most people because it's only going to cause more debt for them because of how they turn into children when they get money. But for people like people who don't need one and have slef-control for one, I disagree with Dave. But majority of the time CCs are bad for a person to get.
This is a very interesting video. My first credit card at age 18 was a Chase Freedom with 2200 USD limit.
All this time I thought my Mom's Amex Platinum was no biggie lol. Oh well.
Tier 3, almost !!!! I WANT THAT CHASE FLEX!!
I got my new Amex platinum card 💳 about 2 weeks ago with just $30.000 with credit score of 722 from credit Kama
That wasn't a smart move at all on that salary.
I make 3 times that and I have the AMEX Gold. I refuse to pay 500 a month for a charge card.
That wasn't a smart move at all on that salary.
I make 3 times that and I have the AMEX Gold. I refuse to pay 500 a month for a charge card.
Lnay Niang yeah making 30k I don't think you will be able to use all the benefits of the card because it costs money to get anything out of it. I make 4-5 x more and I barely can justify having it.
The platinum card isn't really that difficult to get if you have decent credit with no derogatory marks/bankruptcies/any charge offs or repossessions. It's even easier if you previously had a relationship with American Express before. In addition its a charge card, so they're more lenient than a credit card. You should check out the Ameriprise version, free annual fee for the first year. :)
It's $550/year not month. Also this person could be living at home with no bills/rent, $30,000 of pure disposable income. You also get a $200 airline credit which effectively makes the AF $350, plus the new Uber credits and lounge access.
I started with the Well Fargo Student CC with $1,200 limit at 16. Then moved straight to the Chase Sapphire Preferred at 19. Originally they denied me due to age/CC length of time. I appealed it and got approved a few months later for 10k limit. They just raised my limit when I turned 21 to 20k. Pretty sweet pulling out my card in front of friends at restaurants....I pay off my balance monthly btw...never ever paid interest in my life or late
I think your information about the credit limits of these cards are off. I have an amex blue cash (the no annual fee one) and it has a limit of $20k. However, my chase marriot premier card which you listed as tier 3, has a limit of only $6k despite being a higher tier than my amex. Amex also emails and mails me several times a month inviting me to apply for the amex platinum which i'd love to own, but don't because miss me with that $500 annual fee. Fuck that. Credit score of about 780-790 here
Rusty Shackleford The Tier 2 cards have lower standards so in comparison you get a much higher credit limit than average. The Tier 3 cards are more well suited for your score so you get an average credit limit.
Very educational. I hit that subscribe button halfway through the video
My aim is to get the AMEX Centurion (BLACK CARD) by 2020.
Why
I'll have it by 2019. Fuck with me.
Mine too buddy mine too
Maybe build a business worth multimillions. Then care about spending it.
That’s a weird goal.
I remember him...I saw this guy a while back. Very good info. Subscribing! 👍 👍
Amex approved me for the everyday card with a score of 697 and income of 16-18k.
JuxtaGenesis that awesome. Just use it as your debit card. 👍
That's awesome! Hopefully you got the 15,000 MR signup bonus version. Mind me asking what your credit limit is? Just curious.
Alas, only $500. They said they would give me a credit line increase after I pay on time the first 5 statements. And no, they did not give me the signup bonus or 0% apr period. They said my credit was not good enough for that. But hey, at least they approved me at all. It is still an Amex. Hehe.
$500? I thought the lowest Amex offered for credit limits was $1,000. That's interesting. Also when signing up online it shows what signup offers are available and you automatically get that offer if you're approved, they don't approve you and say your credit isn't good enough for this signup bonus. I think the Amex everyday is always 10,000 MR after $1,000 spend in 3 months but they have a 15,000 MR bonus that pops up sometimes. It's a foot in the door with amex though for future cards.
I remember they gave me a low credit line years ago, I can't remember if it was 500-1000 but i still got the rewards. Now they give me crazy amounts i will never use 25k+ per card.
Quick ad addendum to your point about “typical limits”: The bank that you use for your regular banking (direct deposit / checking account) will be more willing to give you a much higher limit since they can easily verify your income.
Starting out with a 620-640 score I received cards from Capital One with limits of $4000 and $3500, Citi for $3000, and Discover for $2000 reporting an annual income of $120,000.
Chase (whom I normally bank with), on the other hand, instantly approved me for Freedom with limit of $15,000 and Slate with limit of $12,000.
Yeah that’s a good tip. I was also able to get the Chase freedom as my first ever card since I was banking with Chase