Here’s what I’m going to tell you. Don’t ever depend on one of anything when it comes to credit.

Really, that applies in pretty much every area of your life. There’s a few exceptions, but for the most part, do not have yourself depending on one thing of anything. “Well, Mckenzie, I don’t do credit cards.”

Listen, credit cards don’t do you. Let’s get it straight. And the reason they don’t do you is that you’re irresponsible, you have no idea how to manage credit, so that’s why I do this channel.

You could have a hundred credit cards if you knew what you were doing.

Problem is you guys are out there just getting credit cards, spending and maxing them out, and not paying it back.

And you’re screwing up your credit in the meantime.

This does not get 50 credit cards so I can just max out my credit cards on shoes and vacations and hotel stays and Yeezies and suits and big watches and fancy cars.

That’s not what credit cards are for. Credit cards are for building credit.

So it’s not that you don’t do credit cards. It’s that they don’t do you because you’re not managing them correctly.

What we’re going to talk about is the benefits, first understanding the scoring model, and then we’re going to talk about one major benefit of having multiple credit cards.

First, let me share with you, I have over 20. Why do I have so many credit cards?

Well, there’s a lot of reasons, but first, we’re going to get into the actual scoring model so you understand why it’s better to have 20 than one.

The first thing you need to understand is if you guys already have credit cards, do not ever close the oldest account that you have.

I run across this in so many factors where people are saying, “I closed down my credit card, because I wasn’t using them,” and that could not be bigger of a mistake in the credit world.

The reason for it is because your time and your length of history is a huge factor in you getting more credit cards.

I did a credit.

I did a video where I said this dude had a million, whatever it was, dollars in credit, and everybody said, “Why do you need so many credit cards? Why do you need so many? Why do you need all that open revolving?”

I’ve got a quarter-million dollars in credit lines open currently myself, and I’m going to share with you at the end of this video why it’s important to have that.

The first thing we’re going to talk about is you would say, “Why?” And then I’m going to say back to you, “Why not?” And then you’re going to say, “Well, how am I going to manage that? Why do I need that much?”

Why don’t you need that much?

See, the thing about it is people who have given up on themselves in credit or in finances are usually the people that are going to tell you this.

Why do you need a million dollars in the bank? Why do you need a million dollars invested?

Slow down. Take it easy.

These are things that we hear because people have given up on themselves.

So when they give up on their selves, the natural thing for them to think of is why are you doing it?

You don’t need all that.

You’re good where you’re at. Take it easy.

Fly under the radar. Don’t toot your own horn.

You’ve heard these things, and really it’s just a matter of them saying to themselves, “I’ve given up and I don’t want to see people succeed.”

Or it’s them protecting you.

Usually, a family member or somebody will protect you by saying these things because they don’t want you to get hurt.

So what I’m asking is for you guys to expand your mind. Think differently. It’s 2019.

A lot of what we had in schools didn’t teach us finance. It didn’t teach us credit.

We had mom and dad who was basically our mentors growing up.

They were the ones who would help us with understanding credit.

How does it work?

What happens here?

And because they are there to protect you, that’s what they’ve done from the time that you were knee-high to a grasshopper.

Till today as an adult, you’ve listened to them. And so it’s getting out.

It’s unwinding everything that we’ve heard.

So I say why not?

Because when you understand the benefits of credit cards and leverage, at the end of this video, you’ll say, “You know what?

It does make sense. It does make sense.” So let’s talk about most of my credit cards are free.

Now, I do have one or two credit cards that charge me like $25 a year, and I have another one that’s a little bit higher.

It’s like $400 a year.

It’s one of these Amex cards, I think. Kind of ridiculous. But for the most part, all of my credit cards don’t cost me a penny to have them.

So what does that show the credit card companies when I get another credit card, which I’m going to talk about the major secret here of getting them.

Why when they see 30,000, 50,000 credit limit, 100,000 credit limit.

When they see that, do you think they’re more apt to giving me more credit or do you think they are probably unlikely and say, “Hey, we’re not going to give you any more credit”?

They’re going to say they want to give you more credit.

Now, am I ever going to use $250,000 of credit? No, of course not.

In fact, I only use about 3%. I may throw 2000 here on one, 1,500 here.

Sometimes I’ll go and I’ll put $5,000, and I’m going to show you the benefit of that in a second, on a card.

But I use it for stuff that I’m already going to spend with cash. That’s the kicker, guys.

You have to understand that when you’re spending money on credit cards, don’t use it for random shit that you don’t need.

Get credit cards that you need that you’re using already that you’re spending cash on.

So when I tell you the secret at the end, you’re going to say, “, yeah, cool. It makes sense now. Why does he have 20 credit cards?”

I’m also going to show you how to really leverage credit cards at the end of this video as well, so stay tuned.

Now, length of time is very important. Don’t ever close an old account, because if you close your oldest account, you’re dropping your history.

Your overall history loses and your score drops.

The other thing is your debt to ratio. Now, let me ask you this question.

If I have 20 cards and $250,000 in open line of credit and I decided I want to spend $5,000 on whatever the hell I want to do.
Say I want to go on vacation.

I spend $5,000. But let’s say I only have one credit card with 10,000 credit limit and I just spent $5,000 on that card.

What do you think happens to my utilization? 10,000 card just spent 5,000 on it. Now I have a 50% utilization.

So you’re more likely to drop your credit score on a $10,000 card when you have to make a decent purchase, and this goes for anything. 1,000 or 5.

You have a $1,000 credit card and you spend 700 bucks on it. Now you have a 70% utilization.

What that means is total credit limit to the amount that you’re spending on that credit. So $10,000 credit limit, and I’m spending 7,000.

Now I’m spending 70% utilization.

It works the same thing with 1,000. 1,000 credit limit.

I’m spending 700 bucks on it. Now I have a 70% utilization.

Do you think that if I have 250,000 and I spent 5,000? I can’t even do the math that fast, but it’s under 5%.

Under 5% utilization. Very low. Much lower than that.

Or is it better to have one credit card with a $5,000 credit limit and spend 3,000 on it and now my score tanks because of utilization?

So having more cards is not a bad thing. What’d you guys don’t want to do, and this is where the education comes in.

Do not spend money foolishly on credit cards. It’s not about going out and putting a car on it or putting vacations on it.

You have to use the money for credit purposes only.

And if you can use the money, like I just redid my kitchen.

When I redid my kitchen, and I’m going to share with you why this is important, I put $5,000 on a credit card.

I had some updates done, but I’m going to share with you why that’s important.

But the key, guys, is to make sure that you use credit for credit building purposes only.

Do not use it for just for anything. Use it for the purposes of this stuff that you already are buying.

And guess what? Do you think that you want to have 20 credit cards and miss a payment?

You have 20 credit cards. Guys, it’s not like I just like I’ve got 20 credit cards. What am I going to do?

You miss one payment, your score is going to be trashed. I’ve never had a late payment and I’ve never had a missed payment in the history of having credit. So why?

Because I set up automatic payments, and I tell you guys this time and time again.

Set your credit cards up, especially if you have multiple cards. You don’t want to forget one.

Set it up on auto-pay. When you set up on autopay, it automatically deducts the money from your checking account on X date, which is usually two days before the due date.

You won’t miss a payment, because if you miss a payment and then you say, “Well, I caught it up the next month,” it does not take away the missed payment.

So having multiple cards is actually a really, really good thing.

It opens up your credit lines.

You don’t ever close your oldest account. You keep building.

You keep raising your credit limits, and eventually one day you’ll be able to get a $50,000 credit card from American Express or from Chase.

I just give you a few of them because I already have those. Or you can pay cash for the rest of your life.

If it makes sense for you to pay cash for the rest of your life because you don’t feel like you can manage credit, then you’ve got to go back and watch all my videos, because I’m teaching you guys every single day what to do and what not to do.

Manage credit like a tool.

Manage it every single day. The more you pay attention to something, the more you can take care of it.

It’s like a woman. The more you take care of her, the more she flourishes.

It’s like money. The more you pay attention, the more you get.

The more you pay attention to credit, the better your credit gets.

You put your attention on anything for any significant amount of time and it usually will come true.

So the main thing that I want to share with you guys today is this.

I opened up a couple of credit cards. Now, why it’s better to have 20.

Well, number one, I don’t have to pay for travel anymore. Let me give you a couple of things why 20 credit cards are better. You get bonus points.

This is the holy grail of credit cards. Bonus points. I’ve got nearly a million bonus points.

What that means is I can fly up to California and back probably 20 times and stay in five-star hotels along the way on my three-week vacation and not pay a dime, because some of the cards that have bonus points, like for example, you can get 100,000 bonus points from Chase Sapphire just by opening an account.

Now, remember I told you the story about me doing my kitchen.

You have to spend $5,000 on this credit card in order to get the 100,000 points, and you had to do it within 90 day period.

I was already doing my kitchen, so instead of taking $5,000 out of my checking account and putting it towards my kitchen, I said, “Let me use the $5,000, put it on the Chase Sapphire.

I get my 100,000 points. I pay it back in cash.” All I did was take the money and put it on this card instead of my debit card.

Now, I paid back the balance in full, because I was going to spend it in my checking account anyway, so now I put it on the card.

I get my points and then I take my cash and I put it back on the card.

So now the card is paid off, but in the meantime, I have 100,000 points,.

I’ve accumulated so many points that when I travel, I don’t have to pay for airfare.

If I go see a family member, if I’m traveling to one of maybe Grant’s events, maybe I’m traveling to go on vacation, whatever the case is, you have enough points to travel.

You also can stay in hotels for free. They use your points.

So that’s another reason which, in my opinion, is well worth it.

Not only am I building credit, but I’m also being able to travel for free and stay at hotels for free.

So that’s another really, really big benefit to having all the credit cards.

The other thing is this.

I’m going to leave you with this.

We have an opportunity here where you guys can make passive income, and what I mean by that is this. If you’ve got credit cards that are in good standings, decent credit limits, I don’t care, 3000 or higher, and they have at least six months of history and you say, “Mckenzie, I want to make money using my credit.”

We have a program here where you can share your good credit with those who could use credit. People would contact us every day are looking for cars, credit cards, homes, start a business.

Maybe they’re trying to get loans.

Maybe they’re trying to get equipment loans, regular personal loans, but they can’t because their credit’s just not there yet.

And then we have the side with the people who have good credit, who are saying, “You know what? I’m willing to share my good credit.”.

On my credit card is an extremely safe way for you to make money. Passive income.

If you’re looking for a side hustle or you’re looking for a way of making passive income every single month and you’ve got a card that fits, never had a late payment, decent credit limit over 3000, and the utilization is under 20%, then send us an email, cardholder@MckenzieAdams.net

Communicate. If you send us an email there, we’ll be able to get some information from you.

Get you set up. Not only can you be helping a lot of people along the way, but you’re also going to get paid every month as well.

I’m going to leave you with that. More is always better in the credit world.

Learn how to leverage money so that way when you need it, it’s there.

Let me share one more thing with you before I leave.

Do you think it’s better to have no credit cards or to have 20 when a family member gets sick or there’s a hospital trip that has to be, or maybe you decide one day that you want to go on vacation? It’s there for emergencies.

Whether you use it or not, it’s always better to have more credit than less, so don’t go with the old school philosophy, “I don’t use credit cards.”

That is an old school mentality for people who don’t know how to manage credit, so they say they don’t do credit cards, because they know they can’t pay it back. So they say things like, “I don’t want any credit cards.”

Well, at least in their own mind, they think that they can’t pay it back, so why have it?

But that’s old school mentality.

You should have credit cards for emergencies.

You should have credit cards so you can travel when you want.

You should have credit cards to make passive income.

You should have them just so you can leverage in general.

Live life on your terms, not somebody else’s.

I’ll leave you with that. Thank you, guys!!!