I’m an IDIOT for getting a credit card...

In response to my previous video, Unboxing The $10 Million Dollar Invite-Only Credit Card: The JP Morgan Reserve, here is exactly why getting a credit card can be a responsible choice…enjoy! Add me on Snapchat/Instagram: GPStephan

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Here is where people miss the point…having a credit card is NOT about debt, and using a credit card doesn’t mean you can’t afford something. When it comes to credit cards, there’s absolutely a RIGHT way to use them, and a WRONG way to use them…

The right way to use a credit card is to have the money available in your checking account, use the credit card to purchase the item, and then pay off the entire bill in full because you have the money available. This gives you a few perks:

1. First, you can do it for security. In the event someone takes your credit card and makes a purchase on it, most of the time credit card companies will reverse it, no questions asked.

2. Second, you have purchase protection. With the Amex Platinum, if any of my items are lost or taken within the first 90 days of purchase, I’m covered up to $10,000 PER OCCURRENCE. It also means that I get an EXTENDED WARRANTY.

3. Third, you have Credit Card membership perks…which would simply be too long to list here.

“Why would you need a credit card if you have that much money”

Answer: To get those sweet, sweet points. Check out this Billionaire who bought a $170,000,000 painting with Amex…not because he couldn’t afford it, obviously, but because he wanted the points.

This isn’t about going and spending money you don’t have, for points you don’t need…it’s about learning how credit works, and then USING this to your advantage. For me, I spend $0 in interest. NOTHING. On every single credit card I’ve ever had, I put every single purchase on the card and then PAY IT OFF IN FULL before it’s due…if you pay it back on time, in full, you pay no money to interest, and the credit card companies don’t get a dollar.

Credit is like playing with fire, you could either use the fire as a tool to keep you warm and cook your food, or you can burn yourself with it. Most people don’t have the financial literacy to use credit cards responsibly, and THOSE people, unfortunately, are the ones that make credit cards profitable for the rest of us. Credit card companies WOULD NOT be throwing us insane perks like if it wasn’t profitable…however, I want to change that. And the only way to change that is by showing people how to use credit cards responsibly and change the mindset away from “credit cards are evil,” to “credit cards are amazing WHEN USED RESPONSIBLY AND PAID OFF IN FULL WITH MONEY I HAVE IN MY BANK ACCOUNT RIGHT NOW INSTEAD OF PAYING IN CASH.” It’s really as simple as that.

For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com

Suggested reading:

The Millionaire Real Estate Agent

Your money or your life

The Millionaire Real Estate Investor

How to Win Friends and Influence People

Think and grow rich

Awaken the giant within

The Book on Rental Property Investing

Favorite Credit Cards:

Chase Sapphire Reserve

American Express Platinum