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We explain “tier one” of the credit card ladder, starter credit cards, suitable for building your credit or someone who is new to the USA.
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28 comments
1st to comment… 🥰
I have finished climbing the credit card ladder (well besides the invite only tier) and yet I still love to watch you break all this down.
I remember my 1st starter card! Wells Fargo Student Card co-signed by my parents 😄👍
Such a great video to explain the basics of people to start climbing the credit ladder!
Dude, this is a really informative video. I hope it's going to help some people save some serious money and increase their credit score. Thanks!!
My 1st credit card is the Wells Fargo Student CC. It has since been product changed to the Visa Signature Reward! It's my anchor in my age of credit!
Great breakdown and thank you for the overview! I am going to share this with my niece and nephew now.
The Yotta credit card doesn't require a credit check and has no annual fees. Your Yotta bank account is your credit limit. It acts like a charge card and doesn't let you carry a balance month-to-month. I tried it out since I had a Yotta account and there wasn't going to be any hard inquires. What is interesting is that they report to the credit bureaus that you've paid off on loan and not on a credit card.
Great breakdown! 🙌🏽
Ben do you know if the blue business cash can be product change to Blue business Plus?
I'm not sure if points are the way to go for me now I have mostly cash back cards
I just want to know if there's a way to product change If it doesn't work for me
BEN HEDGES THE GOAT 🐐
Nfcu platinum card was my first card. Got it as an emergency back up card when I was 18. I feared credit cards due to my parents having credit card debt. Glad I found the proper way to use cards now.
What's your opinion on Zolve & Sable cards?
It's been so long now, but I think my VERY FIRST card was a Bank of America card way back in like 2004 or something. There was no real rhyme or reason to getting this card as I had no idea wtf I was doing back then! 🤣
Your "Credit card ladder" is based upon its cost (mostly, aside from the predatory cards at the bottom). The higher on the ladder you are, it means you are rich enough to pay high annual fees (or perhaps dumb enough to pay money to banks).
I disagree with the "Credit card ladder". For example, most of my cards would fall into the second tier, namely because I go after "cash back" cards. But in your case, you have a lot of third or fourth tier cards. Does this mean you are above me? No. It means you are going after hotels, airfare and travel.
I motion to replace your "Credit card ladder" with my "Credit card fork". My fork has three tines ("tines" are the points or prongs on the end of a fork). This is based on the card's PURPOSE.
The handle of the fork is what you call "Tier 1". These are the predatory cards, secured cards and regular cards with no rewards. They are used for building credit.
Next, there are the three tines. These three are all EQUAL in progress. One is not better than the other.
The first tine is "Cash Back". These are mostly what you consider "Tier 2" on your obsolete "ladder".
The second tine is "Travel" and it includes a lot of what you call "Tier 3" and "Tier 4" on your obsolete "ladder". However, some cards may exist on more than one tine. For example, the Freedom Flex exists on both tine 1 and tine 2.
The third tine is "Flex". A lot of these match up with "tier 5" on your obsolete "ladder". These cards are for status. They help people compensate for "small" problems in the bedroom.
🍴
You should make a video discussing the top of top tier rewards programs like Delta 360, Marriott Cobalt, etc
you know what, when i came to the US in Jan., I successfully applied for the BOA Customized cash card in Jan. and travel reward in Feb. And I get my Chas Flex in April when I had my SSN.
Great video thanks right now I use the united airlines explorer card the best buy card the city rewards plus card and the m life las vegas card from the bank of Omaha I am not sure what amrican express credit card to get yet.
Tier 2 secured card or student card is a great way to enter the game. Great advice as always Shifu!
My starter card was the Chase Freedom Student and I’m sure glad I got that when I did! That was back before I was super into the credit card game but it really set me up for success early on. Great video Ben.
Tier 2 is where its at! 4-5% cashback on Everything for no extra effort is fantastic. No transferring points or waiting till off season or special deal to get best value. No AFs with a list of perks and credits to use in order make the card worth. Just simple, constant money back for living your life normally. T3-4 cards have the POTENTIAL to out earn T2 cards and by a lot if your really good at it but it takes a LOT more work as well. One day when Im retired (early if plans hold) and I can actually afford to travel Ill upgrade to a T3-4 setup buts its not worth and not necessary at this time. T2 cards are often looked down on and even labeling them so low tier reinforces the stereotype. Makes people feel like Tier 4 is the goal that everyone should aim for. Not everyone is taking 2-3 vacations a year to make these cards worth it. Absolutely nothing wrong with a strong No AF Cashback setup.
I’m curious why no one mentions the American Express Optima card. It’s invitation only if you really screwed up with American Express and can’t get a green card.
Do you consider the Amex platinum Goldman Sachs a tier 5 as that is invite only? I am trying to get that card but I can't find much online about it
When I started off I didn't even have to get a secured card, I started watching these videos at 17. It was my goal to enter the game unsecured. Went with a Discover Student card. Never regretted it, great bank with frequent and generous CL bumps. My tip for new Credit builders is to take it slow at the beginning. Get only 3 unsecured CC in the beginning year, space out your credit applications, the biggest risks big banks see is when new credit seekers have many open accounts in a short period or a ton of inquiries. Take it slow and everything will settle into place in 3-5 years. And by all means stay away from BoA.
I don’t have a credit score and i have 0 percent apr credit card for next 1 year should i pay full amount or minimum amount (since I am keeping that money in high yield saving account) and Also I am maintaining my credit utilization under 30 percent
Thanks to the name⏫⏫⏫⏫⏫⏫ above got my card from him am so happy it really work I got my bills paid
Thanks to the name⏫⏫⏫⏫⏫⏫ above got my card from him am so happy it really work I got my bills paid
Thank you for helping out👆👆👆you're the best in credit
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