Transcription
Beautiful People is working on backlit. In other videos, on this video, I want to answer this question that I actually seen on my YouTube channel. So somebody left a comment on the Capital One Platinum secure credit card video. They said, "I am beyond frustrated. I'm well confused with this card and I've been looking for different videos to answer their questions." So let me just sum it up because it's a lot on here.
So basically, they got a 200 secure credit card. They put that deposit down on their credit card. Um, and they're saying they're, they're not sure what's supposed to happen. So we're going to go over after you put the deposit down on it, like what's gonna happen with it. And then also, they say out of 200, um, they made a 50 purchase. So they spent the fifty dollars on it and then now they have remaining credit line of 150. So they're saying like, at this point, what are they waiting to do? Like they're lost. Like, am I waiting on my payment day to pay the fifty dollars back that I spent? Because I don't have one yet. Somebody helped me.
So I seen this, I'm like, let me answer this one because they're gonna definitely need this. And I just remember to not know him much. And I swear, it's just a key, a few things that we need to learn and then we'll have it. So let me say this. Um, we all secure your credit cards. Secure means that you have to put money down on it. Um, so when you put money down on your credit cards, then that's what your credit limit is going to be. You're not going to get that money back until you close your account for some cards. But some cards, like the Capital One Platinum credit card, this one actually graduates to an unsecured credit card. So they may tell you to go ahead and put down two hundred dollars, or they may say 49.99, and then they'll send you a 200 credit card. So this one usually after six months, they say as little as six months after six months of making your payments on time, so make sure you put your credit card on autopay, six months of paying your credit card off on time, then they'll make it unsecured, which means they'll send your 200 back and then they'll increase your limit. So I just did a video of somebody else saying that there's, um, went from three hundred dollars and then him going all into three thousand dollars. That's just making sure that you're paying it off on time. So that's why I said putting on autopay.
Okay, and that's what happened like around six, seven, eight month mark. Now, when you have your credit card, a credit card, it has a limit on how much you can spend. When you spend that money, whatever you spend on it, like in your case, you spend fifty dollars on it. I'm gonna kind of talk to the person that's here too. I thought it'd be easier. So in that your case, you spend 50 on your credit card, you have a 200 limit. Um, that means that you've still got a hundred and fifty dollars to spend. You are going to get a due date. Don't panic about that. You're going to get a due date and once it's due, um, you should go ahead and make sure you pay it a few days before your due date, or make sure you have it set up on autopay. And I like, um, my autopay. I like for all of my credit cards to be paid a few days in advance, um, just so I can confirm that the payment is made because one of my biggest things was just making sure I pay certain bills on time. That's where I messed up at. So I like to pay mine a few days ahead of time. You can pay yours on your due date and they may not tell you to pay the full fifty dollars. They may say just pay twenty five dollars. But if you do that, that they're going to charge you interest, which means they're going to make money off of you. Which I always tell people to pay your, whatever they say your balance is, which is going to be 50, pay that by your due date. But they're going to give you a due date on, um, that credit card. But you can continue to use your credit card, um, freely if you choose to. Really make sure it gets, um, a good increase. You could technically, and listen to this carefully, you can technically spend the whole 200 on it. You can, and then you can pay it off. You don't have to wait till your due date to pay it off either. You can pay it off right now if you wanted to. You don't have to have a due date. You can pay your credit card, you can use it, wait till your purchase posts. They have to post. Use it. Two days for purchases to post. They're busy. Be pending. Once they post, you can pay it off right then and there. A lot of people do that just so that the credit card companies can see that they need a higher limit. So they'll use the two hundred dollars and say it's the fifth. Their bill is not due on the 24th and they'll use the 200 and they'll pay it back off on the seventh because that's when it's going to post. They'll pay it back off and then they'll turn around and use the 200 again. They'll just make sure that they use that credit card for all of their bills. Like they have to pay a bill. That's when you just use a debit card. They'll use their credit card and they'll pay it right off. So you have to just make sure you pay about a due date.
Now say in this case with that person where we talked about, they, they used it, paid it off, used it, paid it off. When you pay it off, you technically paying that minimum balance. So if you don't have, so if you were to use it again before your due date and you have a 200, um, balance on your credit card again, you technically already paid the minimum balance, which is what they're going to request, like this probably 25. You already paid that. So you technically don't have to pay anymore. You can just let that balance sit on there. You don't have to use your credit card again. I mean, you don't have to pay it again. So just keep that in mind that you could use your credit card, you can pay it off. You only have to pay your credit card once per month technically. You're going to have one due date per month and they're going to try to get you just to pay the minimum. I suggest you pay whatever your balance is. I suggest you pay that balance, um, every month. That would be my, my suggestion. That way that they don't charge you interest at all.
And then some of these credit cards will give you rewards. So this credit card don't necessarily give you rewards, but say if you were to get like the Discover it secure, they're going to give you two percent back. So you know, you may get twenty dollars in rewards first, but you know, using this credit card, but if you pay interest on it because you're not paying your balance in full, um, you really putting at twenty dollars and giving it back to them. It's not extra for you. So I usually tell people to make sure that they're paying their statement balance in full. So if you want to make sure that this graduates, just make sure that you have it on autopay, which is one of the key things for you. Just make sure you have it on autopay and don't spend more than you can pay back. Um, because say what your credit card with Capital One, you have a 200 limit. So you really don't want to, um, let them report to the credit bureaus, which is, um, say on your due date, once you pay that, they're going to create a statement for you in a few days and your statement is going to show your new due date, your new balance and whatever your balance was at that time. When your statement comes up, they're going to report that to the credit bureaus. You really don't want them to report for this credit card more than ten dollars because that will be a five, that would be five percent of the credit card. If you, if you let them report, um, too high of a balance, it looks like you've been maxed out your credit card and you're like desperate for money. That's kind of what it looks like because they want to show every time they report to the credit bureau, you want to show that it's a very, very low balance and that you can manage credit without using too much. So just make sure that you keep your balance low on this credit card and I think that you'll be fine.
Don't forget that autopay is going to be very, very important. So whenever that due date is, it's going to be automatically paid. And put it a few days before your due date. Again, you can go in here, pay it at any time. Um, you don't have to wait to your due date. You can pay it early if you want to. You don't have any annual fees where you have to pay a certain amount every year. Some credit cards do, but with this one, you don't. You should get your money back. Get about six to eight months. Just make sure that you're paying it on time and you're trying to keep the balance low on those statements. That's really the key. And that is a lot of other credit card companies is going to offer you more credit. And when they offer you more credit, you can decide if you want to get that credit card and then you'll apply the same thing with that one. You just want to make sure that you do not have a high balance reporting to the credit bureaus. Um, so don't have a high balance left over, left over on your due date because anything that's left over that you did not pay is going to get reported to the credit bureaus and then it's gonna make it harder for you to get other credit cards or even for this one to possibly graduate. So that's kind of how it works. And you can see right here, you just make your deposit, deposit more, and then you can raise your limit up to, um, a thousand dollars. So that's good. And then using this card, um, responsibly is going to be an unsecured credit card. But I hope this helps. Um, I think that's kind of like more of the basic information when it comes out to these credit cards. Let me know if you have any questions. We can give them a call and you can like pick my brain about a few things. But, um, but I'll see you guys in the next video. Go ahead and drop your questions down below.