Unboxing my First Credit Card at 18 (Chase Freedom Student)

It’s pretty hard with one hand not gonna lie. I see the chase freedom on here let’s go, yes, yeah I really hope this has like the fine print of might the card I got I got to like the student card okay so can see right here. I don’t think that any of my other personal stuff you see cash limit a credit limit 1000 cash access line 200, so enclosed is your new contactless card I so I’m gonna go ahead and cover this up real quick alrighty.

We’re back so got it all covered up right here you guys can check it out this is right there freedom student got my name on it Christopher Glaze basic a little credit card I know this is probably not the part you guys clicked on here to watch, okay here it is this is the perks okay so build your credit and earn rewards with freedom student.

Chase Freedom

One percent cash back automatically on all purchases. There’s no limit to how much you can earn them in a minimum to redeem your awards, and they will not expire as long as your account is open. $20 good standing rewards earn $20 good standing rewards after each account anniversary for the first five years credit limit increase earn a credit limit increase after five on-time monthly payments within ten months since account opening. When meeting credit criteria and free credit score so unlimited access to your credit score alerts and score simulator with credit journey wow that’s pretty cool I didn’t know about that I mean that’s one of the main reasons that I have this credit card is to build my credit score save a lot of money on down payment on a house lower interest rates if I need to finance anything and then ultimately to get qualified for better credit cards where I can earn more travel points and eventually earn more money more cashback better perks that sort of stuff so let’s go ahead and dive into the rest of this see if there’s anything worthwhile. Here credit limits $1000 payment due to every 27th of the month.

purchase APR

That’s good to know not the 31st, you always have at least 21 days to pay your bill and your due day is the same every month the purchase APR 17.24%. So this 17.24% is the interest rate that I will have to pay on the credit card. I plan on paying this off every month in full and probably only using about 20-30% of my total credit line so that’s about two to three hundred dollars just for food, gas, groceries.

Whatever I need to do so that’s basically gonna help build my credit score because when lenders are looking to give someone a loan and hopefully qualify me for better interest rates and basically get better deals Alright guys so right now I just want to sit down and talk about why I got this credit card and go a little bit more in-depth about the value this card is bringing me, and I know I already touched on it, but the first thing is building credit. Learn Paypal to Bank

What is difference between debit card and credit card?

The earlier I start, the easier it’ll be to get into that 700 FICO score range. So that if it does come time for me to purchase a house or rent an apartment or something. There would be a lot easier to new to negotiate you have a lot more leverage for the higher credit score.

It shows you’re not as risky as some other potential clients and a lot of cases. You don’t even have to put a security deposit down, if your credit score is high enough so that’s one good reason having a high credit score is good, and that goes along with a lower interest rate and financing a house with a mortgage. This could be a primary residence or if I get into rental property investing this would be great to get locked in mortgages at lower interest rates due to having a high credit score. Which in turn would save me tens of thousand dollars over the long run now the second reason is to get qualified for bigger credit card. Read also about Credit Card processing.

Chase Sapphire reserves

I’m sure if you guys have seen graham Stephan’s video about the 11 credit cards he has 11 credit cards and basically, he signs up for them because of the amazing perks that they offer all the travel points that you can get I know like the Chase Sapphire reserves offering 50,000 bonus points to sign up, I’m not sure you have to spend a certain amount of money, but I know that they are offering the 50,000 points for something and those credit cards are a lot better.

If you can get more that’d be great so there’s where that Chase Sapphire Reserve and all these higher exclusive credit cards would be a lot better to have and provide a lot more value and return over the long run especially if you’re using them frequently and putting a lot of money on them then these perks really start to return value to you, and you can’t qualify for these unless you have a track record of having credit so again this is where getting a credit card now helps save me time and money in the long term, along with gaining more points and bonus rewards for having it.

I previously mentioned they’re sort of opened my eyes to the perks of having a credit card especially at a young age. So you can start building that credit start, building your FICO score so you can get those reduced mortgage rates and honestly there’s a lot more than just like mortgage rates and financing stuff that you can get from having a high credit score. It can even come down to getting like better packages for your cell phone like unlimited talk, text, and data.

How to Resolve Credit Card debt

The next and final thing that I want to talk about with is the interest rate, so 17% is absolutely ridiculous you know stock market is historically returning I think 9.6% and a lowball estimate for this or any time cream would be about 8% and credit card interest at 17% so this is where you get into big money issues when you run into this revolving credit card debt that’s what they call them the revolvers where you’re just paying a minimum monthly payment, and then that debt just keeps snowballing and building every single month until you’re left hopeless, so that’s where that 17% comes into that’s how credit cards make their money is the people that are carrying a balance and that isn’t paying them off they, continue owing mor and more and on the flip side of that there are the deadbeats and the deadbeats are the people that use credit cards just to take advantage of the perks and rewards they offer, the cash the points they pay their credit cards off every single month. I hope you guys got some value out of this and if you guys did go ahead and hit that like button for me and consider subscribing if you haven’t this channel I just like to talk about financial stuff personal finances and investing and that sort of stuff so consider doing that if you haven’t and as always.

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