This post is on how to build credit, how to start credit, how to maintain and establish good credit.
Previously I was talking about how to get a secured credit card to start your credit, after three months of you managing the utilization on this card, meaning hang it on one time, Capital One began to send me credit card qualifications in the mail and this one has my name on it, and it basically says 'hey you have you are pre-approved for a credit line up to $1,500.'
Although I'm pre-qualified, if they send me this amount it doesn't mean that you have to use all of that money. You have to do the utilization ratio divided whatever amount comes in the mail and divided by three, so this was the first thing that they sent me in the mail. After they saw that I was responsible which I am, then a few weeks later my capital one card came in the mail. Now, this has a thousand dollars on it but dividing it by three. I only want to use about three hundred and thirtysomething dollars on it and not to go above that or beyond that unless I need to.
It's all about the history on these accounts, these are trade lines whatever is on your credit report as far as credit cards, and whatnot those are called trade lines, and what the whole goal is to consistently build it, consistently show act two.
Let's say you have a crappy job, even this can work even if you're on minimum wage. If you have a minimum wage job or whatnot, let's just say McDonald's pays you $400 every pay period, this is $400, this $400 is supposed to go into your bank account. $400 is in my bank account, you want to basically split that up between these cards now, between these two cards, it has $1,200, $1,200, so that is available to you if you need it.
If I don't know card breaks down, if it's an emergency you have $1,200 that then you have access to, you don't have to ask your parents, your friends, you don't have to borrow it from anybody. This is how much you have available to you on your own, once again $60 $300, I don't want to go over any of that if only $400 is in your bank account because it's about paying it back on time repeatedly month at the after month after month after month.
That's the whole goal, I'm just trying to educate those who don't know anything about credit man. If you start in high school or college or what that the benefits of it is that you don't need a cosigner, when you want to buy a car - if you want to buy a house or anything else, I mean overall is building your credit, and the reason why we have credit is so that people can trust us. Basically like I said cash is gold, this post was about starting credit by yourself.