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Transcript

THE CREDIT SCORE GAME: HOW TO BEAT THE FINANCE BROS AT THEIR OWN GAME · Triple Da Money

• 0:00
  SPEAKER_01: Bro, I just found the cheat code to life.
• 0:02
  SPEAKER_02: You found another hack on TikTok, didn't you?
• 0:05
  SPEAKER_01: Alright, fine.
• 0:06
  SPEAKER_01: You got me.
• 0:07
  SPEAKER_01: It was a TikTok.
• 0:08
  SPEAKER_01: But what if I told you there's just one number?
• 0:11
  SPEAKER_01: One singular number that decides if you get a Corvette or a 2003 Civic with a cracked windshield.
• 0:17
  SPEAKER_01: That's not how that works.
• 0:19
  SPEAKER_00: He's not wrong, actually.
• 0:20
  SPEAKER_01: What?
• 0:21
  SPEAKER_00: There's one number, and it basically decides your whole entire financial life.
• 0:25
  SPEAKER_00: And you probably want to know how to win that game.
• 0:27
  SPEAKER_01: We're winning the game today, boys.
• 0:29
  SPEAKER_00: This is the hack to win the credit score game and win big in life.
• 0:32
  SPEAKER_01: For real.
• 0:33
  SPEAKER_01: Let's get into it.
• 0:35
  SPEAKER_00: Okay, forget banks, forget numbers.
• 0:37
  SPEAKER_00: Imagine you loan Brandon$5 for lunch.
• 0:40
  SPEAKER_01: Classic.
• 0:41
  SPEAKER_01: I'm always too broke for lunch.
• 0:42
  SPEAKER_00: Does he pay you back?
• 0:44
  SPEAKER_01: No.
• 0:44
  SPEAKER_01: That's ridiculous.
• 0:46
  SPEAKER_01: I pay you back sometimes.
• 0:48
  SPEAKER_00: So next time he asks for lunch money, what do you say?
• 0:51
  SPEAKER_02: I say pay me back double.
• 0:53
  SPEAKER_02: Or you're not eating.
• 0:55
  SPEAKER_00: Exactly.
• 0:56
  SPEAKER_00: That's a credit score.
• 0:57
  SPEAKER_00: It's the world keeping track of whether you pay people back.
• 0:59
  SPEAKER_00: Banks, landlords, car dealers, they all check your credit score before they trust you with money.
• 1:04
  SPEAKER_00: High score, they're like, hey, that's a great deal.
• 1:07
  SPEAKER_00: Come on in.
• 1:08
  SPEAKER_00: Low score, they're like, pay me back double, or you're not eating.
• 1:11
  SPEAKER_01: Oh, okay.
• 1:12
  SPEAKER_01: That's actually a clean analogy.
• 1:14
  SPEAKER_01: So my credit score is just my reputation?
• 1:17
  SPEAKER_00: Your financial reputation.
• 1:19
  SPEAKER_00: Yes.
• 1:20
  SPEAKER_01: Oh bro, I'm cooked.
• 1:22
  SPEAKER_00: Credit scores go from 300 to 850.
• 1:25
  SPEAKER_00: Here's the tier list.
• 1:26
  SPEAKER_01: 300 to 579, that's a noob.
• 1:30
  SPEAKER_01: That's rough.
• 1:31
  SPEAKER_01: 580 to 669, that's grinding.
• 1:36
  SPEAKER_00: Still struggling to get approved for stuff.
• 1:38
  SPEAKER_01: 670 to 739, that's solid.
• 1:41
  SPEAKER_01: And 740 to 799, that's ranked up.
• 1:45
  SPEAKER_01: And 800 plus is God tier.
• 1:48
  SPEAKER_01: I need to be God tier.
• 1:53
  SPEAKER_00: God tier means you walk into a dealership and they're approving you within 30 seconds.
• 1:58
  SPEAKER_00: You've got the lowest interest rate, and people treat you like you've got money before you even spend it.
• 2:02
  SPEAKER_02: Okay.
• 2:03
  SPEAKER_02: I actually didn't know that part.
• 2:05
  SPEAKER_00: Most people don't.
• 2:06
  SPEAKER_00: Your score is built on five things.
• 2:08
  SPEAKER_00: I'll make it fast.
• 2:09
  SPEAKER_01: Let's go.
• 2:11
  SPEAKER_00: One, do you pay on time?
• 2:13
  SPEAKER_00: That's 35% of your score.
• 2:15
  SPEAKER_00: The biggest one.
• 2:16
  SPEAKER_01: Alright, that's easy.
• 2:17
  SPEAKER_01: Pay your bills.
• 2:18
  SPEAKER_01: Got it.
• 2:19
  SPEAKER_00: Two, how much of your credit limit are you using?
• 2:22
  SPEAKER_00: You should be staying under 30%.
• 2:24
  SPEAKER_00: If you've got a thousand dollar limit, don't spend more than$300.
• 2:28
  SPEAKER_02: Why not use all of it?
• 2:29
  SPEAKER_02: It's your money.
• 2:30
  SPEAKER_00: Because then the bank thinks you're desperate, and desperate people do not get good rates.
• 2:35
  SPEAKER_02: It's actually messed up.
• 2:37
  SPEAKER_00: 3.
• 2:37
  SPEAKER_00: How long have you had credit?
• 2:39
  SPEAKER_00: Longer is better.
• 2:41
  SPEAKER_00: 4.
• 2:41
  SPEAKER_00: The different types of credit you have.
• 2:43
  SPEAKER_00: 5.
• 2:44
  SPEAKER_00: How often you're applying for new credit.
• 2:46
  SPEAKER_00: Every time you apply for a new credit card, it dings your score a little.
• 2:49
  SPEAKER_00: So don't just go and sign up for every credit card you see.
• 2:52
  SPEAKER_01: So the game is pay on time, don't max it out, keep it in for a long time.
• 2:58
  SPEAKER_01: Got it.
• 2:58
  SPEAKER_01: I'm taking notes.
• 3:00
  SPEAKER_02: But wait, how do you even start building credit?
• 3:02
  SPEAKER_02: I don't have credit, so I can't get credit.
• 3:05
  SPEAKER_00: Exactly the trap.
• 3:06
  SPEAKER_00: So here's the move nobody tells you about.
• 3:08
  SPEAKER_00: When you turn 18, go to the bank and hand them$300, and in return, they'll give you a$300 credit card.
• 3:14
  SPEAKER_00: Spend a little on it every month.
• 3:16
  SPEAKER_00: Groceries, gas, whatever.
• 3:18
  SPEAKER_00: Just make sure you stay under the 30% utilization rate every month and pay it off completely every single month.
• 3:25
  SPEAKER_00: Don't carry over a balance.
• 3:26
  SPEAKER_01: Why can't I just leave a little on there?
• 3:28
  SPEAKER_00: Because the interest rate on a credit card is 21%.
• 3:32
  SPEAKER_00: If you buy a$200 Xbox on credit and pay the minimum every month, that Xbox ends up costing you$260 and takes you a year to pay off.
• 3:42
  SPEAKER_02: That is a robbery.
• 3:43
  SPEAKER_00: That's the game.
• 3:44
  SPEAKER_00: If you don't know the rules, you lose.
• 3:46
  SPEAKER_00: And if you do know the rules.
• 3:48
  SPEAKER_01: Free Corvette.
• 3:49
  SPEAKER_00: Free Corvette.
• 3:50
  SPEAKER_00: Speaking of which.
• 3:52
  SPEAKER_01: Okay, we've been waiting for this.
• 3:54
  SPEAKER_01: Break down the Corvette.
• 3:55
  SPEAKER_00: Alright, real life.
• 3:56
  SPEAKER_00: Most people buy three cars and a house before they turn 40.
• 4:01
  SPEAKER_00: Let's run the numbers on what those cost you with a bad score versus a god tier score.
• 4:05
  SPEAKER_00: Car number one,$30,000.
• 4:08
  SPEAKER_00: God tier player, that's 4.7% interest.
• 4:11
  SPEAKER_00: That's$561 a month.
• 4:13
  SPEAKER_00: Newt player, 16% interest and$730 a month.
• 4:18
  SPEAKER_01: That's$170 more a month.
• 4:21
  SPEAKER_00: Over five years?
• 4:22
  SPEAKER_00: That's over$10,000 extra just on one car.
• 4:26
  SPEAKER_00: Three cars over your lifetime?
• 4:28
  SPEAKER_00: That interest adds up to$30,000.
• 4:31
  SPEAKER_02: $30,000 just on cars?
• 4:34
  SPEAKER_00: Now the house,$300,000 and a 30-year mortgage.
• 4:38
  SPEAKER_00: It's God tier and around$1,900 a month.
• 4:41
  SPEAKER_00: The noob player,$2,065.
• 4:44
  SPEAKER_00: The same exact house.
• 4:46
  SPEAKER_00: Over 30 years, the noob player pays$56,000 more.
• 4:52
  SPEAKER_01: $30,000 on cars,$56,000 on a house.
• 4:58
  SPEAKER_00: That's$86,000.
• 5:02
  SPEAKER_00: And we're not even done.
• 5:03
  SPEAKER_01: We're not done?
• 5:04
  SPEAKER_00: Bad credit means deposits.
• 5:06
  SPEAKER_00: An apartment, they might make you pay two or three months of rent up front instead of one.
• 5:12
  SPEAKER_00: Electric company, gas, phone plans, they all check your credit too.
• 5:16
  SPEAKER_00: Bad score, that means cash deposits every single time.
• 5:20
  SPEAKER_00: Money sitting there, doing nothing instead of being in your account and making you more money.
• 5:25
  SPEAKER_02: So it's not just the interest, it's cash locked up everywhere.
• 5:30
  SPEAKER_00: Overall, bad credit versus good credit over a lifetime of purchases, that's enough money to buy a Corvette in cash.
• 5:39
  SPEAKER_01: They just gave a Corvette to the bank.
• 5:41
  SPEAKER_01: I need a secured credit card like today.
• 5:44
  SPEAKER_00: Here's the whole game in 30 seconds.
• 5:47
  SPEAKER_00: One, get a secured card at 18.
• 5:50
  SPEAKER_00: 2.
• 5:50
  SPEAKER_00: Use less than 30% of the limit.
• 5:52
  SPEAKER_00: 3.
• 5:53
  SPEAKER_00: Pay it off in full every month.
• 5:55
  SPEAKER_00: 4.
• 5:56
  SPEAKER_00: Never miss a payment.
• 5:57
  SPEAKER_00: 5.
• 5:58
  SPEAKER_00: Don't apply for a bunch of credit cards at once.
• 6:00
  SPEAKER_01: Do these five things.
• 6:02
  SPEAKER_00: And by the time you're in your 20s, you're God tier and you're getting the best rates.
• 6:06
  SPEAKER_00: You get approved in seconds, and you get to keep tens of thousands of dollars that other people just hand over to their banks.
• 6:13
  SPEAKER_02: This is the stuff they should have taught us at school.
• 6:15
  SPEAKER_00: Should have, but they didn't.
• 6:17
  SPEAKER_00: And that's why we're here.
• 6:18
  SPEAKER_02: We literally just gave you a free Corvette.
• 6:20
  SPEAKER_02: You're welcome.
• 6:21
  SPEAKER_02: We're triple the money, and it looks like your Corvette is on us.