Does It Hurt Your Credit To Close A Credit Card - YouTube

Does it hurt your credit to close  your credit card? I'm gonna go  

details. Because some of you you're gonna be shocked at my answer

to what this is and it's opposite that you've  been told. So, the answer is absolutely never.

So, there's five things I'm going to talk about. Number one, how you even qualify for your first  

card at 18 years old and do it right? Number two, how to choose the first card? Which one should you

apply for? Number three, how to actually maintain  and get that good credit that you're going to need  

for the rest of your life? Number four, the best  strategy is to avoid paying interest and number

five which is really critical, do you ever shut  those cards down and when is it appropriate  

to shut a card down? Because there are  people out here on the internet saying,  

"You should not have cards and you  should pay them off and cut them up", 

and that's totally wrong  you'll destroy your credit.

So, let's begin. How do you qualify for your  first card? Well, I actually think that at  

14 years old you should start being taught  about credit cards and your parents out there  

yes. You're going to get the card  because you have to be 18 to have one  

and you're going to get a  small limit you could even

get a secured card. But  start at 14 giving your kid  

right, a credit card. Number one, it's  a safety measure. If they're out there  

they need they have an emergency. I don't know. They didn't have their

lunch food. They didn't have whatever they needed.  It's really it's a safety precaution in my mind.

As a single mom, it's really important. But it's  a small limit, they can't spend more than you know

whatever your limit is. Mine's 300 in a month and  we know exactly how that's going to be spent. We've

already talked about it. Some of you might  think that's too high then make it smaller.

At 18, how do you qualify for your first card?  Starts with the application. Believe it or not

you have to declare income. I don't know how many people blow their first application by  

saying, "I'm broke. I don't have any money.  I can't do anything. I'm a student". You're  

not gonna say any of those things, right. So,  you're going to start learning to make money  

and even if you say you make 8,000, 12,000. Remember parents, you can pay $12,550

before the kid has to pay taxes. So, start  at least with that. If the kid puts it at  

18 years old no income on that application.  They're going to get disqualified. They're not  

going to come back properly. So, I'm not saying  lie, I'm saying play the strategy. The system

is right here for you to do it, right. Also at 18  for those of you like that really want to do it,  

right, you're going to get incorporated. So, I'm  not going to get into that today. But I do want  

you to go to my search bar up above and I want you  to type in living corporate life, why get an LLC,  

how to do tax deductions. I want you to type  that in and really start studying and while  

you're there subscribe, put that notification  button-up, be with me five days a week.  

Let's get financially literate  together. 10 to 15 minutes a  

day is all I'm asking and I want it  every day. So, let's get the kid a

qualified card properly. Now, for  you parents or young adults out there  

if you've already blown your credit, call our  office. We have an amazing credit repair team  

and you're just gonna have to start  with your own personal credit repair.  

But your company can get  credit too. So, when you think

about what card should I get first. I'm a huge fan  of believe it or not American Express and Discover

because they have a lot of reward points. They can  

keep their interest rates  really low if not. I mean,

most of you can get interest free payment like zero percent for 21 months and if

you don't know how to do that again call  our office we'll help you figure that out.

This is not a game to just go to the internet on  some simple dot com and hope that you're going to

figure this out, right. The application has to be  right, the cards you qualify for, and get as much

as you can. But again, that's going to  be associated to the income and if you  

started a business those of you that are  adults, it drives me crazy when you say,  

"I have just a business startup. I make no  income." Why are they going to give you a  

line of credit? So, if you're working with  us you're going to have a revenue model.  

So, what are we revenue modeling  for? 5,000 a month, 10,000 a month,  

right. You might not be making it yet but you need  the business investment. Smart card companies know

that right. American Express is known for helping  small businesses. They have a great program.

Even Visa and MasterCard they have good programs.  

So, look at where you are,  what kind of income you have,  

and what you think your needs are going to be and  again, really look at the reward points. I mean,

if you use you know say 5,000, 10,000 a month on a card pay it off every month because

your company's making 30-40 thousand. Do you  know how much that adds up to? That's hundreds  

of thousands of dollars in points for a travel  hotels and other things that you might want to be

you know using your rewards for. So, number three, 

let's talk about your proper credit. How  do you get it and maintain it and remember,  

we have two things we're always  talking about in my conversation.

Your personal credit which is against your  social security number or your id number in  

any other country and you're corporate. So, at  18 years old right you're living in our world.

I want you to get an LLC or an  S corp. We'll help you decide  

which one don't run out to a dot com and  start getting corporate credit. I mean,  

we have clients that have been  with us for five-ten years that

have five or ten companies. So, can you imagine, their own personal credit and all these lines  

of credit because you have different levels of  income. Even if you just own rental real estate

that should be in its own company  and you should have the associated  

credit attached. So, how do you maintain  proper credit? I'm actually going to read  

it's quite a list and it's shockingly  different than you think, alright.  

So, number one, ideally, to maintain  proper credit. You ready for this?

You're gonna grow not immediately. But you're  gonna grow into six to seven credit cards with  

revolving lines of credit. Again, you're going  to use credit cards, pay them off every month,  

right, use those reward points it helps your  credit. If you use your debit card even in  

your corporate accounts you're taking money  straight out of your bank account. Why not  

use somebody else's money for 30 days?  Again, use debt wisely, right. Keep it 

as low as your interest rate. Pay it off  on revolving lines as fast as you can or  

just I mean every 30 days just have  it set up that it gets paid. Credit

cards again, they're an  option for short-term loans. 

What I love, love credit cards  for proper use of credit is for  

rehabbers. I love it in the real estate space because you can buy a house. You can

actually, pay vendors with credit cards. You can  

go buy supplies with your credit cards.  Direct sales companies if you needed to  

do some training you can use credit  cards. I can kind of go pretty wide

on how to use these credit  cards as investment cards  

as startup capital. It drives me crazy when I'm  on these social channels and you say, "Well,  

I don't you know, I have to have money to  make money", no, you don't. You can use  

investment lines but you do have to  make money, right. At the end of my

recording today, I'm going to give you  tickets to an event where you can get free  

leads and come and make some money. So, stay  tuned. A few other things for proper credit.  

I hate the word budget.  I want you to forecast. So,  

really organize your spending right and  make sure that you have enough that you

can pay those cards off. So, you keep the interest  low and you keep your credit high. As far as

transfer balances, you're going to have to  get some advice on that. There's actually  

software where we can plug in your numbers and our  experts would tell you do you need to transfer.  

Sometimes you need to transfer because they  just won't come off. Sometimes those 21%  

interest rates and you're just going to  have to slowly and very strategically  

offload those. So again, if you haven't  subscribed make sure you subscribe.  

Before I tell you the final two points and  please share this with other people. I mean,  

you're the sum total of who you hang out  with. So, if you're getting interesting

financial opinions from friends and family get  them on this channel. Have conversations every day

about money. You've got to grow these little money  muscles right now you got astro feed little guys.  

Time to grow up, all of you. So, best strategies  to avoid interest is to pay them off every month  

right and really watch those balances. If you  really got like and you're meeting me now and

you've got a little ridiculous you could do some  consolidation. There's huge fees involved in that.

So, I'd rather see you talk to some of our experts  about balance transfers and some of those things  

and probably the biggest thing to avoid high  interest and to keep your credit high which is  

shocking is make multiple credit card payments. So, instead of paying on the first and the 15th  

they're paying all four cards or five cards or  whatever you have off all in one day. Maybe you

have four cards let's use that as an example. So, week one, you'd pay off card one  

then you start using it again  very slowly and right responsibly  

and you're going to use card two, pay  that off on week two, three, and four. So,  

you always have money in the system. See,  what financial institutes are looking for  

is your financial literacy. Really, are you  responsible? Are you paying on time? Is there

always money in the system. The more money you 

have in the system that's  moving income and payments

the more credit you're going to get and the  lower interest that you'll have available to you.

Now, the big one is should you ever close a card? And the answer is absolutely not. So, without  

expert advice, you just don't go casually close  your card. Your watch, if you actually want to  

go try it your credit score could drop as much as  90 points. I've seen it with various individuals  

50 points, 70 points, 90 points, will drop your  credit score by just casually closing them. So,  

at least use them in small amounts like you don't  have to use you know thousands and thousands. So,  

maybe one use for gas, one use for food,  one you use for other home supplies,  

one used for business, you know your corporate  cards for your corporate supplies. So, 

use your cards properly really be  responsible if you think you're  

going to close them. Call our office talk  to our experts before you do that because I

don't want your credit score tanking. So, again,  if you're enjoying this let's stay together. Let  

me mentor you. I want you to go to the link below  and take my financial personality quiz. It's going  

to take about a minute. It's going to put you into  one of four categories and then right following  

that I'm going to send you out an application  to talk to one of my team members one one-on-one

about where you are financially. Whether  that's credit. Whether that's more money  

you want to make, investments, whatever you  want to talk about. And then from there,  

we're gonna hand you two tickets to my event I do  it every three weeks. You can come get free leads.  

You're there to make money it's a seven-hour  marketplace plus six hours of content  

the millionaire intensive that I teach.  So, please take advantage of my gifts, 

get financial illiterate,  we're gonna talk tomorrow.