Let’s debunk the myth that “credit cards are for poor people.”
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47 comments
Wealthy people don’t carry much cash. They want their cash in the bank and don’t come into contact with it until they need it.
I buy almost everything on my card and pay the balance immediately.
Credit card rewards are equal opportunity. So long as you pay off your balance immediately, you don’t pay interest and you get something back for spending you were going to do anyway.
Bruh no it’s not- if they can’t afford to pay it off each month it is DEFINITELY not for them
The problem with credit cards is that people spend more than what they make that’s why they always have debt and they never be able to payoff their debts!
try master card
I have had a credit card about 20+ years. I got it when I was unemployed. I use it like a check or cash. No annual fees. I don't use a card for places that add a percentage for credit cards. I get a kick back on the card. Credit scores are not what people think they are. I remember a business teacher that said he took out a personal loan just to build up credit. How stupid can you get? Just taking out a loan and keeping up on payments will LOWER your credit score. I bought my first house with a low rate loan and NEVER had a loan before. Somebody will float your loan unless you are an unbelievable risk. If you have a card, spend within your means and never pay interest on it.
Being in debt to a credit card company means sleepless nights. Only use one if you intend to pay off the full amount every month, thereby avoiding huge interest charges. Set up a direct debit with your bank, and that way you never forget to pay on time. Used properly, and wisely, the credit card is a good friend to have.
Yuup I pay off ever month. 26,000 max 15,00- min plus I get free money.
New subscriber, second video and your throwing mad gems 💎 🔥
I appreciate channels like Sebby's because it provides some financial education. If this education were avaliable from school age, people would understand how credit works long before they're eligible for it themselves – that's the best way to prevent people getting into debt – not hoping people will abstain.
Brian Evans you idiot
Thanks for the content you make. I just hit my 30s and have only ever had my military star card as a credit card. They just seemed like too much of a hassle and I was hardcore Dave Ramsey as well. Now that I recently discovered all the credit incentives for military, I'm gonna take the plunge.
If you have to explain why credit cards are beneficial to someone, they're not the best financially.
This guy
How many cards do you have sebby?!
Yea I’m poor keep scrolling 😭 I rarely travel so I’ll use the points / cash back as statement credits
Credit for poor people and investors for rich ppl
What advice would you give someone who can't even get a secured credit card i.e. myself cause I've been a victim of identity theft. How would you recommend me trying to get credit?
right on the face!
First and foremost: if anyone is carrying a balance they're losing. I only use credit cards because carrying cash is not something I'm interested in. I don't wait until the end of the month to pay off my debts. I pay them off by the end of the week. And since I only use credit cards I figure I can make them work for me so I got into the points game and it's been working well for years. I'm never paying a cent of interest.
It depends on a person’s experience with credit cards. Credit cards are a great way to earn free travel, food, etc. but if your not responsible and pay them every month the interest will kill the rewards.
Great job! Thats what I call vibrating at a higher frequency.
@Sebby "one of the more productive ways of me wasting my time" LOVE this quote! My spouse thinks I have gone mad in an excel book that started out listing subscriptions, I just explain it to her and other ppl that look at credit cards quizzically as the modern equivalent of coupon clipping
…yeah….lambda school has a suuuper mixed reputation. It's by no means something I'd be pointing folks to…
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Who would think credit cards are for the poor???? If you're poor and use credit you're SCREWED! If you only buy what you can afford and always use credit you get the benefits of credit.
For 40 years I was cash only….having parents that were VERY irresponsible with money and getting themselves in debt trouble I always thought credit was a trap. My father had also co-signed on a student loan for me and when he went bankrupt it defaulted on me. So my credit was crap…couldn't even get a capital one if I tried. A few years ago I started my own business (completely self financed….big mistake) and when things got tough I went to the bank to try and get a line of credit…well, of course I was denied. So I decided I was done.
I spent the next week tracking down the financer for the loan that defaulted and finally found someone that informed me that it was outside the statute of limitations and was written off. I reported it to all the credit agencies and within a month it was gone! My credit score went from low 600s to mid 600s in a short time as a result. So I applied for an Amazon Prime credit card…figuring that would be an easy one to get since it's pretty specialized..and I was approved for $5000! I used it for a few months and paid it off every month after statement close and got my credit up to about 700. So I applied for a Discover It Garnet….and got it with a $3500 limit! Used it for a few months and they raised my limit to $7000.
After a few months of paying properly and keeping up my credit screw went up and up until it was finally into the mid 700s. So I applied for an AMEX Blue Cash Preferred card. And I was approved for $10k! Again, I made sure ALL my cards were always cleared at statement closing and never paid interest and kept my balances under 20% and my credit score kept growing! I finally got it to 800 so I applied for an AMEX Gold. I got it with NPSL!!!!
After a few months of paying it perfectly every month my credit score is now 830! I checked my history and in Jan 2018 it was 660. I checked and I made over $2500 in rewards last year. So it turns out my fear was unfounded. If you are irresponsible and use credit cards as EXTRA cash you're screwing yourself. If you use them as a discount card and a path to better/more credit…you are on the right path. Sorry for the long response, just wanted to give my background and why I now understand that credit is NOT a trap…cash is the trap.
Well researched and well presented Thank You!
I grew up believing credit was evil. Now I have credit, I appreciate it. I live within my means and I am debt free. However, I like knowing I have credit just in case.
Poor people don’t have a credit score to apply for a house loan,vehicle loan etc let alone be approved for a credi card.
Premium cards such as Platinum Amex gives great returns as long as you use it wisely and my preference is cards.
When it comes to using Credit Cards The specific person is the one who builds debt, the card itself does not build debt. You can have a card not use it at all which is stupid because your aren't reaping the benefits of the rewards or you can get it rack up your balance and trash your score and up with you guessed it a bunch of debt just don't be stupid with your credit and you'll be fine and with youtube university aka ask sebby, Credit shift and a bunch of other channels you can learn how to best utilize credit cards to benefit you and if your hear you should already know that. This is the best time to be and starting a credit history because of the free education that is out there right now any my age (in there 20's ) should be taking advantage and should look at having awesome scores and history by the time their fifty instead of trying to rebuild their credit like most of our parents out their who no fault of their own had no one to teach them. Educate yourself and go get those Rewards. A message from someone who use to fear credit cards for what how my family used them when I knew I needed it decided to dive in and get education before acting on it now I have a full credit card plan thanks to these channel's. Keep making these great videos Sebby‼️‼️‼️‼️‼️‼️‼️‼️‼️‼️‼️‼️
Brian Evans got told.
Working in accounting, I like to find every penny I can get so using CCs with cash back rewards for everyday purchases is a no brainer.
I just found one of your videos and started binge watching. Wow! I have learned so much. Thank you for dropping so much knowledge. I will be watching more.
Income inequality is such a canard. I work hard everyday to make myself less "equal" financially. I'm not a commie, so I'm fine with that.
I use my credit card for all my purchases, but I never carry a balance. I have a 800+ FICO.
Lol if credit cards were only for poor people there would be no Amex Black Card or JP Morgan Reserve or CIti Chairman card
Ways that companies counter act this is by adding fees to CC users. Gas stations typically offer "discounts" to people who pay with cash.
Credit cards are only for poor people? Where do I sign up?
I only use cash to pay my family! Lol! Credit Cards are so convenient! Plus I made $300 cash on my charges for one card last year purchasing every day expenses! I don’t pay credit cards, they pay me! They are just the middle man!
Why am I addicted to this channel? I literally found it because of the offer I received for the Platinum Amex and now I can't stop watching it. Thank you Sebby for all the information.
If you're rich, you either borrow against your mour securities, or put it on credit. Ideally, you do both. You never sell your holdings, you just borrow. No taxes on borrowed money, unlike income. Reduce income to 0. Borrow for everything. When you die, pass your stock down to your children. The cost basis will be stepped-up, and they will never need to work a day in their lives. This is how tax law currently works in America. Once you get to ~50 million or so, you and your offspring will never need to work ever again. Broken? Yes. Intentional? Also yes.
You’re speaking facts!
The rule is simple only use credit on something that will make you money
Half of the U.S. population only holds a high school diploma so it's just an excuse because they don't have the ability to maximize benefits and/or they don't have the discipline. If you were going to buy something anyways, might as well get a perk for it. Who buys a TV these days and brings 2k cash. That's just stupid lol
It is a nice hobby that gives you a chance to earn some enjoyable rewards.
all great info but you missed the main reason to use credit cards, it puts a separation between the crook and your bank. If a crook swipes your debit card your bank may become empty right before rent is due, now what are you going to do? if they max your credit card you still have the money in your bank to pay bills.
Keep up the great videos
I use a credit card for everything to maximize my spending AND protect my cash.