Episode 2

2 - How to Start Building Credit as a Young Adult

Episode Summary

In this episode of Get Real Wealthy Season 3, Quentin talks about building your credit and why it's important.

Quentin says that a lot of the things we're going to do while investing require some credit. You can start without credit, but for growth and scaling, you need good credit. It allows banks or other institutions to track how well you repay funds you borrow. We are moving from a money-based system to a credit based economy. He adds, "If we are good with our credit, we will be able to borrow more, and if we can borrow the right type of debt, we're going to be able to create wealth from that, and if we borrow the wrong type of debt, then we're going to have to pay for that for years and years and years."

Choosing the correct type of credit card and the financial institution behind it is crucial, as it builds credit with a credit history. He says that you should only borrow what you plan to pay back. So whatever you put on your credit card, you will pay it back that same month, if you can, or within two months. It's okay to carry a bit of a balance because you want to show that you can pay it back, and if you do that, you start to build credit over time. Things like car loans, and mortgages, are also great ways of building credit.

Quentin says there are also services like Borrowwell or Credit Karma you can use to look at your credit. Another tip, especially if you're young or having trouble with credit, is to get paper statements, especially at the beginning, for tracking so that you can cross off what you paid back and what you borrowed in a month. He adds that little things come up, but remember, what you're doing is you're building a credit history; the better you can utilize this credit, the easier it is for you to borrow later on.

In conclusion, he says that if you haven't done so, go out and apply for credit. Whatever that looks like for you, start asking questions about getting some credit, which is also your next assignment.

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About the Podcast

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Get Real Wealthy
A Real Estate Investers Journey

About your host

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Quentin DSouza

Quentin D’Souza is a multiple award winning Real Estate Investor, and a trusted authority on real estate investing. He is an Ontario Certified Teacher and holds two university degrees, which includes a Master’s in Education. Quentin has appeared on local and national television and radio, interviewed in national publications, and has been a keynote speaker to large audiences of real estate investors. He owns a real estate portfolio in excess of $80 million dollars of assets under management across Canada and the US and transacted on 80+ properties since 2004. Quentin is the author of several books available on Amazon. He is also mentors real estate investors as the Chief Education Officer of the Education for Canadian Real Estate Investors and Durham Real Estate Investors Club.