Alright, so I talked to Kris into doing another video here, we're gonna
talk about credit cards - my perspective and Kris' perspective. We're in
the linemen now but we didn't have the same same path with debt.
This video is sponsored by MyFirstVA.com. In fact, that's where we found the
virtual assistants that edited this video. I'll surf through more details
about that in a moment but now let me send you back to Kris. Kris, you talked
a lot about debt and how that is such a good thing. Oh my gosh, I'm so in love
with debt. I feel like that if I could marry debt, I would totally. I fully
understand that now but I come from our backgrounds, they've got a handful of all
these credit cards and team, you know, blur out the numbers that are
showing there but when I first learned about debt and building credit, I
knew the credit was a good thing so I got some credit cards but I used these
credit cards very irresponsibly and I got myself over $20,000 in debt as a
college student. Yeah, I'm trying to become a responsible adult
citizen, a contributing member of society. I mean, one thing that I did
and then and I don't want to hear some of your take on this is as I thought I
had enough money from a summer sales dump that I could have bought my car, it
was $8,000 that I found this guy was going to buy and I could have bought it
with cash but I thought I'm going to put half of it on credit card so that I can
build my credit right and then I ended up just buying ahead of money that I
actually had because I had all this credit, they can't give me more
more and more so anyway, I wanted you to talk to our audience, those about a
younger audience who's in this phase of building credit. Listen, I don't care how
old you are, it is so important to develop your credit. You need to get at
least three different credit cards. I don't care if the consignment or they're
only good for up to 100 or five hundred dollars, that's not what's important.
Your credit is an asset and you never know when you're gonna use it. I
obviously show people all day long how to do deals that don't take credit but
once in a while, deals do take credit or it can be an advantage to have good
credit so you gotta establish it which means you need credit cards however, if
you can't use them responsibly, I'd prefer you to cut them up and not have
them in the first place so these are some of the rules, Nate, that now for
young people that I really give them when it comes to establishing
your credit is I only want you to spend a couple hundred bucks a month on things
that you would pay for anyway with a debit card and all you're gonna do is
put it on a credit card and then at the end of the month, you're gonna pay it off
with the debit card. Now there are some people that will argue that you should
keep a certain balance of debt to show responsibility.. Listen. Your credit is
gonna increase it, it's gonna go up if you're just paying it off. It could
technically go up a little higher if instead of just paying it off you were
keeping a little bit of debt on there, here's the bottom line.. Once you start
tapping more than 30% of what's available and keeping it over
that mark, your credit is gonna get hurt. The banks are gonna say, dude, they're not
responsible to credit, they just know how to rack it up and they don't know how to
pay it off. Am I supposed to max out my credit card?
Absolutely, 100% heck no. So what I'm telling
you is get credit cards, get at least three. I don't care what kinds they are
because all we're trying to do is improve your credit score so the bank
will say you're worthy of this or worthy of that now if you ever get into this
situation where you're watching this you're like, well I got bad credit. Do
credit repair but don't let your credit hold you back from the next best deal
that's going on out there because 95% of the deals I do, I'm just not using my
credit but in the beginning before people will partner with you and believe
in you, you got to put your own stuff online, you got to put your own skin in
the game and credit is a great way to do that so now I just have to say, Nate,
because they're like, what does Kris mean that he's in love with debt, if debt
was a woman he would marry it make it his wife what I mean by that is that
there's two types of debt there's a good debt in a bad debt so like what Nate was
talking about was racking up twenty thousand dollars of what's called
consumer debt or he mentions a car. The cars of consumer debt and here's how you
know if it's a good debt or a bad debt, here's the litmus test. Does it
make money or cost money? If I buy a car then it costs me money but if I buy a
car from a dealer at wholesale and I resell it for $2,000 more then it's an
asset so the question is, does it make you money and if it's not making you
money then all you're doing is creating trouble for yourself, the liability that
you just really frankly you don't want to have. You want to stay as far out of
consumer debt as possible. Do not tolerate it, do not have it, just use it
short term in small amounts over time to tell banks, hey, I'm responsible for
credit. So just to kind of summarize this with a simple question or two, if I had
own credit card that's got a thousand dollar limit, I should take it to about
30% of that so I use about $300,000 of that? Nope, I'm
just saying you should never go over thirty percent of it. That doesn't
mean use thirty percent of it, it just means don't hang on to a balance more
than that. If you want to use one, two, three or even
four or five hundred dollars but it gets paid off at the end of the month, you're
good. Yes, you're paying it down to zero at the end of every month. I'm telling
you to pay it down to zero at the end of the month so that you don't get advice
like you did, you're like, I'm being responsible getting credit cards and
with just a little bit of advice you find yourself quickly buying more than
you can bite off and I'm just saying, just only spend it on stuff you can
pay off. But what if I've spent everything on my paycheck? Okay, my credit
card now has a balance of zero so I've got $1,000 of credit and then something
shiny appears and think, well, I just buy it now and I'll get more money, I'll pay
it down. Nope, if you cannot pay for it with your
normal income from your bills, do not buy it and do not do forward thinking. Do not
be like, I'm sure my next next summer I'm going to make a lot of money in summer
sales. Don't spend money you don't have, that's the worst habit thing
you can get into. I bring it up because that's really what I did. Obviously.
I'm gonna do so good this next summer so.. We've all done it, we all
get it, we all understand it. I'm building out my credit, taking my mentor's
advice, getting free cards and paying him off within 14 months,
I actually was credit worthy just barely to a bank so that I could actually get
my first home and as you all know, that changed, my entire history changed,
everything. No one was gonna bet on a dumb college kid but I bet on myself and
I'm glad my mentor had me get my credit in shape so that I couldn't make a bet
on me and get a bank to take it better because when I partner with someone, it's
just like a different bank except I think that it's easier than a bank. Banks
are freakin' difficult to work with. My SBA loan for my commercial deal took six
months, every I cross every teen if we see
something we don't like we don't like the color your panties, we're gonna deny
you and get upset at you so like, I hate that but we got to live with the banking
world, it's part of getting where we want to go. On the other
hand, I partner with people that are way less picky the banks. I like people as
opposed to banks and I'll do business with them and they'll make more money
than the banks will ever make off of me but I don't have to bring any money to
the table so I'm gonna partner with somebody. Thank you to MyFirstVA.com
for sponsoring this video. Imagine being able to hire your own full-time employee
and imagine that employee only costing you $400 per month. It's actually a real
thing. I've been doing it for over eight years, I have a whole team of people that
I've hired there. You can hire somebody for logo design, bookkeeping, article
writing, customer service, website design or video editing, you can actually do
your own custom search if you go to MyFirstVA.com, put in the criteria of who
you're looking for in your perfect virtual assistant and you'll have a full
time employee for 400 bucks a month. In the beginning, before you have that
credibility, you're partnering with your credit cards or you're partnering with
your banks, you got to keep your nose clean, you got to do a good job, that's
why we made this video. Hey, friends. Thanks for watching this video here and
Nate, thank you for being vulnerable and sharing your advice on how to not use credit
cards and what you've learned about now using them in a rockstar way. I
basically use them for business and making money or you can use them to get
yourself financially in a lot of pain of hurt, don't do that and make sure you
guys subscribe, ring the bell, we'll keep more this financial knowledge
and genius coming your way.