What's up everybody, my name is Walt welcome back to my channel. If you're new, here we talk about travel, we talk about vlogs. We do vlogs, we'll talk about credit things like that. So if you're new - that's not justice to you just make sure you hit that subscribe button right up here again, I'm giving away an Amazon gift card once we hit 2000 subscribers, four of you will be able to get an Amazon gift card for $ 24.

All you have to do is subscribe and let me know you subscribe by commenting down in the video right here, so today's topic is going to be why or is credit and credit cards such an important part of anyone's life, younger people? You know middle age, a little older, it doesn't matter what the age range is. It's really important from eighteen plus, and I want to talk to you guys about that. Give you a pinions my story and a few ways as to why credit and credit cards are important, so let's get right into this video all right. So the first thing I want to talk about.

I want to talk about. You know what family with friends and what's the kind of society says about credit, especially with credit cards? They really like a lot of things. You'll hear is credit is bad. You know if you use credit cards, you know it messed up my life.

I can mess up your life, don't do it stay away from them their money hungry. They do this to do that. They take advantage of you. You know.

Credit is not needed. Use money instead of credit because you'll own anybody - and the thing I can say about these - are they're right. Everything that I just said is 100 % accurate, they're right, but they're right in their own means, and what I mean by that is you know, credit can hurt you credit can do you wrong. They can't take advantage of you.

You can't end up owing a lot of money. They're right, their opinions are 100 % correct, especially for their situations. You know, credit may have ruined our life. Credit may have done them wrong and in no way am I being rude or disrespectful, but that's in their opinions and that's in their way.

That's something that they did wrong. So, just like anything else in life, you know you'd go out there. You drive a car. You know knock on wood, but something bad could happen when you walk in outside your house today.

You know a car can mess up your life. Anything. You know you falling, you slipping you doing something. You can basketball, you, you know whatever you do, you can mess up anything anything could be messed up so and 9s without attend.

Do we stop doing those things? No, you know some people say is like playing with fire and all that stuff. I get it, but everything I mean everything I heard like you know: you're driving a car like that's the probably the best example. You know anything can happen again forbid it but and knock on wood, but it can happen so again. Their opinions are correct, but I'm again I'm not being rude.

Those are their opinions and these are mistakes that they made to Takano. Just sum it all up. These are mistakes that somebody made some point in their life that they just are making excuses. Now, instead of trying to change those actions, we're all here about, you know we can make mistakes and you know, being you know in this day and age, you can make mistakes and you can always learn from them and grow and improve yourself.

So they're right. The opinions are really really huge, but also opinions are credit is good for you. You can make a living from it. You can make some money from it.

I know a lot of people in here like Duane from how to build credit TV. You know you got wise flies points, pointers, shifu Sebby, they use points, they use credit cards, they use credit to their advantage and that's the other side of the the you know equation and their right to credit can be awesome for you. If you use it correctly. So those are the opinions when it comes to credit.

Let me tell you my story when it comes to credit. Just about five years ago I was 19 and one of the biggest issues I had was. I couldn't get anything and it wasn't because I didn't pay. My bills, that was probably my biggest see my biggest reasoning of me, not understanding.

At that point, I pay my bills on time. You know I paid my prepaid phone bill on time. Um, you know I paid you know. I went shopping.

I had money in the bank, you know I never was overdrawn on my checking and savings accounts. Why can't you? Let me credit, why can't you use my checking her savings and again this was five years ago. So it's different now with the new FICO score but five years ago, and it kind of still equates now. You know I pay my bills on time and it doesn't improve your score.

I'm certain bills. That was my issue being 19. You know I wanted. You know a nice phone, I didn't want prepaid anymore, I you know had some income coming in, I wanted an okay phone.

I wanted a you know, non prepaid plan so and I went to you know a couple of different stores and they said no, because you don't have credit at all. You have ghost credit. You have none even credit card companies, you know even I even got denied for the dis student cards. Like you know the discovered the discovere, I think is journey card.

I got declined for so many student cards. I had to come for everything and it was because I had no credit and it was um, I'm not gon na lie. It was definitely something to kind of sink in and be like. You think, you're doing really good.

For yourself. You got to kind of take a step back and said you got to improve, there's always room for improvement and a guy. I don't come from a wealthy family so and to be honest, financial literacy with as far as credit it was talked about, but it wasn't really broken down and, to be honest, I really didn't have anybody to really sit me down and say listen. This is what we're going to do.

We're gon na put you on our credit cards et cetera, and that's fine. I don't you know matter anything like that. It just it made sense for me to be in that situation and I had to be the one to break the cycle. So I'm sure you a lot of you can relate.

We may not come from wealthy families, I sure don't and we got to break the cycle. We got to break that cycle of just credit, it's bad or this or that or we're maxed out on our credit cards. So that's my story, and today I want to give you a few examples as to why credit is so important. I use my I actually went to Wells Fargo.

I got a secured credit card for about. I think five hundred bucks. I gave him five hundred dollars at that point in time and they took that five hundred dollars and what they did with the secured credit card is they used at five hundred dollars? They put it in a savings account that I couldn't touch, and that was my credit limit. So that's what a secured card is and I'll put a video up on here.

As far as secure credit cards on how to get approved for your first credit card, there was a really awesome video I did about a year ago to kind of go more in detail with secured credit cards and things of that nature. But that's what I did. I got a secured credit card within about a year. My credit score isn't like the mid-sixties, after maybe a year and a half of proper on-time payments, paying them full just using maybe like forty dollars a month on a five hundred dollar credit limit.

My credit score was in the mid-60s and I was pretty satisfied. I went from you know zero, it's about. You know the middle six is within about a year and a half and getting more credit cards. My first unsecured credit card was a ten thousand dollar limit.

So I went from five hundred dollars, so my first one being ten thousand dollars. It was amazing. I did not believe what they had told me. I mean it was so that's my story and that's what I'm here from here to help you guys so here at a few different ways on why credit is such an important factor for a life in just financial freedom in general.

Oh, the first thing is things are going to be cheaper, alright, and I can I'm talking about a PR which is annual percentage rate, which is interest on whatever you're trying to get whether that's a car loan, or just a personal, unsecured loan or you're trying to Get things like for me for an example like I said earlier with the phone, so I'm going to kind of show you a video right here while I'm talking. So if you see right here, I'm on the t-mobile website - and you know everybody - you know - we got an iPhone game - we got Samsung gang right now, I'm rocking a hot phone, I'm in the ecosystem, my iPhones, but just for this example we're going to do the Samsung S 10, plus, I think that's what it's called and I want to show you guys if you're, actually looking at my movements on the screen, you see they have credit, they have awesome credit, they have good credit and then they have no credit. And if you see me clicking the buttons for awesome credit versus good credit, which is kind of average versus no credit, you see the difference in the price you have to pay up front. I think the awesome credit was maybe like the mid twos and then like the okay credit was like the higher twos and then no credit at all was like you got to pay the full price on the phone.

That's a good example right there, that's the best way to kind of sum it up. You got to put out more money, even if you're not putting out interest or anything like that on the phone you got to dish out more money just from the get-go, because you don't have credit or you may not have the best credit and it can cost. You a lot of money, especially another good example, is with the interest rates. You know you can have an interest rate of you know, for example, unsecured home eight point.

Nine. Nine percent for like awesome, perfect credit all the way, maybe up to like 17 18 percent. For like not the best credit, so you know somebody who has a four thousand dollar loan. Let's say you and I we both have four thousand dollar loan.

Somebody has awesome credit. One of us has awesome credit and the other one has okay credit. It's the same amount of money, we're taking from the bank, I'm borrowing, but I'm gon na be paying more or you're gon na be paying more depending on which one of us has. You know you know, whoever has the higher credit score pays less.

So whoever doesn't pays more and it's still the same four thousand dollars, but I'm actually probably spending more than you are vice versa. Whoever has the better credit score. So that's the first thing it saves money. They could save you a lot of money, especially when it comes to interest rates and things like kind of simple things.

This is something that's kind of been new with, like the late-2000s, in my opinion, 2010 mm, you know getting a job now some jobs and it's not like you know, you're local, like you, know, just kind of basic standard like fast-food job or something like that. I'm talking more so, like maybe bank jobs, insurance, jobs, things like that we're actually giving advice to people. They want to do a credit pool on you. They want do a credit check, so nowadays you can actually not get a job or actually get a job by having a credit score and that's a good advantage.

If you can have and again it do. I agree with it. No, but this is what is. It is, it is what it is, and you know just kind of play the game as it is.

You know I don't agree with it, but if you can have a better credit score, but not it Mainland you a better job, so yeah you can actually get a better job from having a credit score or you can actually get disqualified from getting the job. If you don't have a good credit score, so it's very it's very crazy to kind of think about it. They judge you off of a number even with the jobs, but it's kind of the same thing with a piece of paper. You know they'll judge you with a degree, and that doesn't mean you're the smartest person or the most qualified person.

It just means you passed all your classes in college. Alright, you graduated, so it kind of makes sense. So getting a job is also very important to they actually will pull credit for that, not every job though, but sometimes they will so. The third one is going to be a mortgage mortgages.

Are everybody should want to have a mortgage one day in their life, or that is for ownership and you're kind of just going to live there or whether it's ownership and you want to rent or it's a flip like real estate purposes? But I think home ownership is also really important, and real estate is really good for financial freedom. I think I'm almost everyone, that's not a rapper or athlete, or something like that. Their success comes from real estate as well, so real estate. It's a really big one and that's a really good time to get in real estate.

So if you want a mortgage even even just to live once you have a family and you don't want to do real estate, you just want to live their mortgage is important. The credit is important and again, if you have a lower credit score, they can still get you a mortgage, but you're gon na have a lot more restrictions like FHA mortgage and things of that nature. So you want to make sure you have a important time. Sorry, a hi or you know, exceptional credit score because the higher you score, the lower your interests, the better the terms are etc.

So mortgage is really important. That's just another key factor, and almost I know I almost everybody wants a mortgage, so mortgage is also important for credit, starting a business whether that is you know going in, and you know most of the time when you're starting a business, you know you don't have The funds upfront so you're gon na go to a bank and ask for a loan or a credit card or something and if you don't have any business credit cuz. This is your first one they're going to pull your personal credit. If you don't have personal credit or things like that, the chances of you getting alone is slim to none.

So if you want to start a business, it's really important to so that was kind of just a quick one. If you did want to start a business, credit is important, got ta have personal credit to get in. So you get your foot in the door with business credit. It saves you money.

If you don't believe me, you know cards like this. The AMEX gold card, Amex Platinum Card Chase Freedom, so many different cards these cards. You know you got to have exceptional square to get and that's not to brag. That's just to be honest, but these things save you money.

They have awesome, signup bonuses. So, for example, a 60,000 points. If you spend five thousand dollars in the first three months or four months, it can give you a nice. You know at the very little at the very minimum redemption rate.

Sixty thousand points can be six hundred dollars. So that's six hundred hours you can use towards travel. You know transferred over to airline partners and actually saves you money. So when you're shopping, you know you're using your credit card, you getting points to actually put money back into your pocket, your travel and probably for free or for cheap, and I get there are so many channels here, including mine.

That kind of show you how to redeem points and stuff, so I'm not going to get into everything. Cuz, that's a whole different video, but again, like I said wise flies credit shifu, except how to book credit TV. They show you so many different ways that are all awesome channels on how to maximize your credit card points. Cash back and use it to your advantage.

So it can actually save you money on a broader scale and give you lifetime experiences that you may normally wouldn't do you know with their own money, for example, fleurs first-class tickets, hotels, vacations think that you may not normally do you actually now can do so because Of these signup bonuses from having credit cards and knowing how to use them just to make sure with the credit cards, we're paying them in full, and you know we're not in debt or anything like that, because not paying in a full being in debt. Interest starts to accumulate and that just you know, if you're going to be charged interest, it just makes an opal. It makes doesn't make sense at all so make sure you are using it to your advantage, paying it in full and knowing everything about your credit card. A lot of my friends and things like that.

They don't know the perks that they have on their credit cards and they're sitting there with a car that has roadside assistance. That's literally saving you money right there, but they have triple-a. They are paying a yearly fee for triple-a when they have a credit card right. There that may give them roadside assistance four times a year for free, so it makes sense and that's another way it could save you money.

Alright, so credit cards are important. They can give you lifetime experiences. They can give you cash back. Travel free travel, cheap travel, hotel statuses, you name it all of this, just for having a decent or a great credit score.

Now, the last and final thing - and I hope nobody has to go through this, but credit cards are also there for emergencies. Now, I'm always big on having a savings, account saving at least 10 to 15 % of your income annually. So you don't have to go through this, but we are still human. There are people who do live check to check and that's all running I mean that's.

That's that's the obvious, so credit cards can also be good for emergencies. Now I don't use my credit cards for emergencies, but when you never know so, emergencies are also a key point as well. If you're somebody who may have you know just car issues or something's happened to leak in the house or you know, you may have to get something with you, I don't know whatever: whatever happens new phone anything you know, computer broke down or something whatever happens and Credit cards - and this is again at the very least you know if it's an emergency, it's just put on your credit card and pay it. When you can, you know you have cars like American, Express when you have that I can pay overtime plan and that money is there for you for emergency purposes and again life happens.

So not everybody has a bunch of money in our savings account just to like dish out on a new car. Unexpectedly, some people have a lot of you know families and a lot of responsibilities. But if you have an exception of credit score - and you can kind of use that to your advantage, keeping your card at a zero balance, and so you may need it for emergency purposes really comes into play. A good emergency, probably like a better emergency.

Instead of like something catastrophic, let's just say, you're on vacation and your debit card is lost or something and when you travel guys, I hope you guys travel with more than one method of you know method to pay. So let's say you lose your debit card. If somebody steals it and you keep your credit card or another Deborah, you know another credit card or something like that somewhere else. Well, now you have that for your emergency and you can close your other card down because somebody stole it or was lost and now you're not stranded.

You have, you know more money to use to get you through until you get back home. So these were my reasons as to like credit and credit cards are really important. Again, I will have a video on how to get approved for your first credit card right in the description as well, but I'll also put it here as a suggestion for you guys, I definitely would suggest you watch it especially again for anybody who was in my Same predicament, who just could not get approved for anything, even if you're, in a situation where you know you're trying to rebuild, definitely check that video out so guys. Thank you much for tuning in make sure you subscribe again again, I'm giving away tube sorry for Amazon gift cards once we hit 2,000 subscribers, so four of you could possibly win a $ 25 Amazon cardigan just subscribe, and, let me know you've done so by commenting On the video below, I will also have t-shirts.

T-Shirts are actually on sale now, so that link is also in the description. If you want to support the channel, make sure you buy a t-shirt, the t-shirt says got credit. Has the credit card troll logo on it? My teacher is actually coming in the mail to actually be here tomorrow, so in my next video or the next one. After that I will be wearing my t-shirts.

I can show you what it looks like really good quality. I think I so sorry for the weird cutoff then that I'm recording on kind of just died. I was a credit for a long time, but that's the end of the video. If you have any other questions or concerns again, let me know make sure you subscribe.

I hope you enjoyed this video, make sure you share it if you found it helpful, have yourself a great day and thank you for tuning in.