So secured credit cards, in my opinion, still the best way to build credit as a young adult middle-aged, older or rebuild your credit. Whatever the credit situation is, this is the best way to get back into shape, uh and really restart or start your financial journey. When i was 19 was when i was, you know, starting to make a little bit of money and wanted to get cell phones in my name. Couldn't do it uh credit cards wouldn't happen, and i was i was so confused.

I'm like i have a okay job. I don't have any debt. My my car that i bought for myself. My first little used car was paid cash and i didn't really understand why i wasn't getting approved.

So let's go right into this video about secured credit cards and what i think is still the best credit card for the year 2021, probably for the next couple years. All right, so a secured credit card secured credit card is very simple. I'll put it and break it down in the simplest terms, possible, easiest terms, all right, so, first and foremost secure credit card. It is secured.

Now we have two different types of credit cards. We have a secured. We have unsecured the ones that you see. Typically, the american express platinum card, the the chase freedom card.

Those credit cards are typically unsecured credit cards. What is an unsecured credit card? An unsecured credit card is a credit card that the banks do not require collateral collateral. In our terms, right now is money uh. It's all about the money.

When it comes to secure credit cards, they don't want a cell phone, they don't want the keys to your house. They don't want to collateral in your car. Nothing like that. The only collateral they want is the money.

Why do they have some customers who have unsecured and some who have secured well? Here are the more common reasons. The first reason you may be fresh and fresh means you may have no credit, zero credit or what they call you may heard of this. Before ghost credit, um, zero credit, ghost credit, no credit, no credit, history, lack of credit. History all comes down to pretty much, probably like a zero credit, so yeah some there are some people out there who have zero credit scores.

I was one of them like i said i couldn't get a phone, i couldn't get a um. I definitely couldn't get a car on my name. Unless i paid cash couldn't get any credit cards, i applied for every credit card company that you can think of, and nobody would give me a credit card. So one day i went to wells fargo and i was telling them about my issues and the personal banker inside of the office suggested that i get a secure credit card and at first i was kind of i was you know i didn't like it.

I had to give them 300 and at 19 i didn't have that much to give so, but it was an investment on myself and at the end of the day i needed it and there earlier i started the quicker i'd, be able to make more money, and You know all that good stuff, so i saved up for about a month or two which is not long and um gave them a 300 and they gave me a credit card. So what they do is they will give you pretty much one for one typically. So most banks will say: okay, if you give me 300, banks will have a minimum amount of money, so you can't give them five dollars. If all you have is five dollars.

Most banks have a minimum, sometimes it's 200, sometimes it's 300. Sometimes it's 500. wells fargo. At that time it could still be the same wells fargo one of 300 for their secured credit card.

I give them 300. They take that 300. They put it in a savings account that i cannot touch unless i close out the account and then they give me a credit line for 300 and every month keep in mind. I don't have access to that 300.

So now i'm using it like a regular credit card, i'm swiping the card and i still have to pay additionally for whatever i've swiped. So if i go to the uh local food store and i spend 15 bucks at the end of the month, i owe 15 bucks. If i go get gas, i have to, you know, spend money i have to i'm getting in the habit of paying uh. Just like a normal credit card user would so forget that security deposit - you don't have access to it, you're still paying additional every month.

The best way to do this is to really guys if you have the closer to zero utilization, the better to really build the credit rebuild the credit uh. That's the best way to do it. So if you got a 300 limit, i would say: go a little more than maybe 40 down to 30 bucks a month. Why it's you want to get into the practice.

They're! Not! I know guys there are some are going to say well, if you're paying an offer for every month, you can max it out. You are correct, but right now we are not worrying about that. We are, on a whole different level right now. The level we are on is the basics we want to stick to the basics we want to get into the habit of doing it this way.

So when you have all this credit at your disposal, you are still in this right mindset. Yes, there will be certain times where you do max your card out and you pay it off at the end of the month. So it doesn't matter, but let's stick to the basics right now: let's keep it simple right. 20.

10: the closer to zero utilization. So if you got 300, credit limit do 300 times 0.10, and that will be your monthly limit that you can spend on that card and you should pay it in full. You pay it in full. You don't give any interest to this bank.

This is what we're not here for we're here to build credit not to spend more money. So that's the best way to do it, um. So that's a secure credit card so, like i said, a lot of banks have different guidelines. There are some banks out here that will give you more money if you just give them a certain deposit but wells fargo.

They only gave me 300-300. After that, i would say two years: two years later i would say, or a year and a half um, they call graduation. I graduated from a secure credit card. They told me hey, we will give you this credit card now for 300 and we will give you your money back your 300 back, so they gave it to me in the form of a check and i still kept the credit card and i still have it To this day, because you want to keep this credit card open, especially if this is your first credit card, you want all of that history, you want it all.

So keep this credit card open. I don't care if this credit card gives you no points that has no benefits. If you feel like the benefits is giving you kind of don't meet your expectations anymore. Still, keep this card open, still, try to use it every month.

Keep it open by maybe putting a small recurring purchase on it every month, like netflix or your gym, membership um, or something like that um, whatever you want to do, just keep it open and keep it active once a month panel full keep that history. Okay. Now that's what i did for about a year and a half after that year and a half was done. I went to another bank and i applied for my first credit card and my limit was ten thousand dollars.

I wasn't making any more than maybe 20 grand a year, but because i had no debt, i had a great score. I think my score is in the low sevens. I got ten thousand dollars on my first unsecured credit card application and i still have that credit. Obviously too, the limit is still the same.

I don't use it as much um. I still use the here and there, but i still have it and it's important to really try to keep those cards in the beginning that you're building history with. So that was my journey. That's how you do it, regardless, if you are building credit or re-establishing your credit from mistakes that you've made it's okay to start over, it's okay, to make mistakes.

Nobody is perfect! Um, it happens to all of us. We all make small or minor mistakes and we learn from them. So that's the best way to do it. Now, i'm going to talk to you now about the best secured credit card.

In my opinion, the best secured credit card in 2021. In my opinion, is i'm gon na put it on the screen for you guys you can check it out with me. This is the discover it secured credit card hands down. In my opinion, the best secure credit card here is why one it's a real credit card.

So discover has unsecured credit cards and they have secured ones the discover it's secured and the discover it unsecured credit card. Look exactly the same, so it's not going to make any difference. It's refundable! It's a refundable deposit, some banks, i believe capital one may be one. I could be wrong, but they stopped refunding you your secured um deposit, all right, so that's you know.

I need my money back right come on guys. I need my money back. The only way you can get it back is, if you close the cart out, which is kind of productive most of the time. So you want to typically stick with banks that are giving you your money back, a refundable deposit.

They give you a refundable deposit up to the line that you were approved, so if you give them 300 they're going to give you that back after they feel like you have graduated, you earn two percent cash back at gas stations and restaurants on up to a Thousand in purchases each quarter, plus you earn unlimited one percent cashback on all that purchases automatically most secured credit cards will take advantage of you in this way one they will not give you cash back and points. There are some that do that you do give out there okay, so there are some credit cards that do give you points and cash back, but then it always comes down to two and that two is they're hitting with an annual fee and but but then that Unsecured version of that card has no annual fee, so this is the perfect card. It gives you cash back, it charges no annual fee and it gives you your fico credit score for free each month and it does the basics for you. It gets down to the basics um, so, let's see how it works.

How much do we have to put down uh? Let's see what we're putting down i'm gon na go on the website right now, for you guys and check this out, i'm gon na scroll through, so this card is for people new to credit, as well as people looking to rebuild. Those are the two things i just talked about, so we know that discover is trying to help you build or rebuild credit um. You are going to still get your credit, rather all that stuff. They still want you to obviously have a job, so you can um apply.

You need to at least be 18 and have a social security number and we're talking about the united states and also u.s address a u.s bank account etc. And yes, you can get your um secured deposit back in two ways. If you pay your balance in full and close your account, they will refund your security, deposit, um or they'll, and they automatically review your account starting at eight months to see if we can return your security deposit. While you continue to enjoy your car benefits, so they're really looking out for you okay now, this is how much they want, so they want a deposit of at least two hundred dollars, um.

That means 200 for okay. Let me check so, if approved, secure, a line with an equal security deposit, so that means two hundred dollars for a 200 credit line 500 for a 500 credit line. I would not go more than that. You don't have to just keep it simple.

You don't got to have a thousand dollars if the only one 200 just go ahead. I gave the minimum and i'm doing just fine with wells, fargo um and it builds credit responsibility. It gets you into the habit of paying your bill on time. You get you into the habit of um all that good stuff, and it also puts you on discovers radar for other credit cards in the future.

It puts you on other banks radar for having great credit and rebuilding your credit, all that good stuff um. So let's go over the other ones that they talk about. So here's discover just to kind of compare a refundable security deposit um. So they do some of them do capital one bank of america, city secured um they, but supposedly according to discover they don't automatically start reviewing your account after eight months um.

They all report to three major credit bureaus every month. If you're paying your bill on time or not so make sure you are um no late for you in your first payment, so discover we'll do that for you, let's keep it. Let's guys keep in mind, we don't want to be making late payments at all um. So i love it.

Um there's a lot more other benefits and stuff, but that's really the basics of this card, i'm not sponsored by them. I have no affiliate links for them. I just think that they do a really good job and i definitely want to give you guys the best card in 2021, like i said, for building your credit at 18 or for rebuilding your credit at 36. It does not matter.

There's one more thing we'll talk about: i won't go too much deep into it, but if you're somebody who's under the age of 18 - and you still want to build credit there's a way, i did it for my brother and i did a video on it. Um and i'll put it right here for you guys, you can check this out if you're under 18. For my younger subscribers. I appreciate all of you, so thank you for watching this long for this little quick gym.

But if you have someone like an older brother or your mother or your father - and they have great credit specifically on that one credit card, if they add you as an authorized user by the time, you're 18, you will have credit history. No, you do not have access to the credit card, they'll, probably chop it up or put it in the drawer somewhere. So you don't want access to it. You don't want to spend it, but as long as they have you on as an authorized user and their credit, history is great on that card.

Do not get added on a credit card that has been uh to collections a thousand times as always late. You do not want any business with that, because all of that history gets reported to you only the cream of the crop. For this, it's okay to be picky, it's okay, to turn it down. If it's not good enough for you, this is for you.

So if you're under 18, most banks started, i believe, like 14 15., i know american express started um. I think it's 13 or 14.. I put my brother on around 14 or 15. right now, he's sitting at like a 760 credit score all from him.

Just being the authorized user on my credit card and me being the responsible adult that i am and making my payments and it helped him out so now when he wants to go out here and get his first car, he wants to go out here and get A home after he's done his own credit building, he's a a step ahead of the game, and if he wants to get another, if he wants to get another credit card on his own, he should be okay. So that's a way to do it under 18.. This video was for my 18 and older, but that's it for the 18 younger, well sorry, 17 and younger, typically age, 14 to 17.. So i hope you guys enjoyed this video like i said you need to share this video to your friends and family, like this.

Video subscribe to this channel, if you want more content like this, this is the stuff that we need to learn in school. This is the stuff i was on the mythology in school, not this stuff, why the heck am i learning about mythology in school? Am i learning about stuff that we actually need to talk about on a daily basis? It's a reason we're not going to get into all that. It's a reason they want to teach us things that aren't necessary versus the things that are, but i'm here to teach you the things that are necessary. So i hope you guys like this video.

I will talk to you soon be safe, be well and get that credit journey. Start it rebuild it whatever it is. It's not too late. It's all too soon.

You.