HOW TO BUILD CREDIT W_ NO OR LOW CREDIT SCORE (TOP 5 CREDIT CARDS)
Feb 13, 2023
auto_awesome
In this podcast, the hosts cover a wide range of interesting topics including the best credit cards for beginners, navigating the credit card industry, upcoming parties and merchandise promotions, addressing accusations against Ruby Rose, the importance of savings for property investing, the benefits of using a credit card, strategies for building credit with no or low credit score, the importance of keeping old credit lines open, and credit cards for building credit.
01:32:43
AI Summary
Highlights
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Paying bills on time is crucial for maintaining a good credit score.
Keeping credit utilization low is important for maintaining a good credit score.
Becoming an authorized user on someone else's credit card can help build credit.
Negotiating with collections agencies can help clear debt and improve credit score.
Deep dives
The Importance of Paying on Time
Paying your bills on time is crucial for maintaining a good credit score. Late payments can significantly impact your credit and lead to a decrease in your score. It is important to be diligent and make payments on or before the due date to avoid negative consequences.
Managing Credit Utilization
Keeping your credit utilization low is important for maintaining a good credit score. Aim to keep your utilization under 30%, with even lower percentages being beneficial. Utilization can be managed by paying off balances regularly and spreading out expenses across different credit cards.
Benefiting from Becoming an Authorized User
Becoming an authorized user on someone else's credit card can help you build credit if you have no or bad credit. By being added to the account, you can benefit from their positive payment history and credit limit. This strategy can give you a jumpstart in improving your credit score.
Working with Collections Agencies
Dealing with collections agencies can be daunting, but often they are willing to negotiate settlement amounts or payment plans. This can help you clear debt and improve your credit score. It is important to communicate with the collections agencies and work towards reaching a resolution.
Seven Ways to Improve Your Credit Score
1. Pay your bills on time, 2. Keep your credit utilization low, 3. Become an authorized user on someone's credit card, 4. Dispute any credit card issues, 5. Diversify your credit mix, 6. Use secured credit cards, 7. Add a mix of credit types.
Credit Card Options for Building Credit
1. Discover it Secured Credit Card, 2. Capital One Platinum Secured Credit Card, 3. OpenSky Secured Visa Credit Card, 4. Self Visa Credit Card, 5. Pedal One Visa Credit Card, 6. Built MasterCard Credit Card.
Tips for Using Credit Cards to Build Credit
1. Pay your balance in full and on time, 2. Keep your utilization low, 3. Dispute any false debts, 4. Work on building positive credit history, 5. Consider credit line increases after responsible use, 6. Utilize credit mix, 7. Consider credit cards that allow rent payments, such as Bilt MasterCard.