The first credit card most of us get are store credit cards, however, usually, those are the worst to get.

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1. The reason these Credit Cards are Bad is because of this
– The rewards are restricted only to the store
– The apr is super high
– They are also not travel friendly
– I remember when you could use them at certain stores too

The truth is this:
– They give you these credit card and usually a 20-50% discount sometimes
– Because they know for a fact you are more likely to spend more money on the credit card
– Which translate to more sales for them, and because they don’t actually hold any of the debt (it’s not really their problem if you pay or you don’t pay )

Now the APR is insane
– Between 25-35% and the average person is going to have a balance
– So that 20% discount is instantly going to get added back if you’re not paying your balance in full each month
– And on top of that, you’re are probably going to use it, to main a good credit score

They are not travel friendly:
– They have insane foreign transactions fees, interest and don’t give you any more benefits aside from the store benefits
– My mom got a card behind my back from children’s little place, and she literally used it once or twice, and that’s it
– And she doesn’t use it for anything else

2. Why people get these Cards although they suck
– Demand and supply: people want a product (problems), so companies help them finance it ( solution )
– Instant gratifications, I sign up and I can now get points and a discount
– And they tell you can build credit fast ( but that’s fake news )

The truth is this:
– They offer you 3 main traps to reward your brain
– Simplicity to sign up, pay later, and earn while paying
– It takes less than 2M to sign up for one of these credit cards ( and every time I see someone signing up I feel like telling them don’t do it )
– Pay later: if you can afford something, why not buy it now and pay off interest-free of 6 months or 12 months or sometimes even 18 months
– Earn Cash Back: this means more loyalty because you get a discount sometimes and when you spend you get money back

However:
– Simplicity is not always good ( it benefits the company to make things easier like amazon has the one-click buy and sales went up )
– Pay of time: well most people run out of time and then get stuck with massive debt ( don’t buy things you can’t afford )
– Rewards: imagine spending $1 and getting back 5 pennies ( it’s a bad deal )

Tip: it’s just instant gratification, and these companies have quotas to fill.

3. Building your credit score correctly
– Some of these cards can get discontinued which will then affect your credit score
– Carrying a balance will also affect your credit score
– The only truth they say, is that it’ll help you build credit but it’ll be the wrong way

My recommendation:
– – get 3 credit cards that are good and you like ( for me, discover, capital one, and Barclaycard one I still use )
– I put a small bill on each ( Netflix, phone bill, and interest bill)
– Each month they get paid in full, my credit use stays down, I build a payment history and my credit score goes up

Results:
– My current credit score is 767, and I have a line of over 30k and I only use $200 bucks per month and that’s it
– No crazy debt, no overspending, and no paying interest.

Secured Credit Cards video: https://www.youtube.com/watch?v=Q_pQXIukCBo

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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