• Regis Arzu

Q & A Wednesday - How do you build credit when no one trusts you enough to give you credit?



Q: // Trey, Houston TX: I’m 19 and I was trying to apply for a credit card to build credit, because I know credit is important, but I don’t have any credit to apply for a credit card to build credit. That doesn’t make any sense. What do you recommend for me to build credit? Thank you


A: Trey, great job on knowing about your credit and looking in what you have to do to build it. You know how many people listening wish they knew what you know at your age? That’s awesome. So this is a common question for people with no credit or bad credit. How do you build credit when no one trusts you enough to give you credit.


OK, there’s two options here:

  1. If you have a parent that has good credit that has a credit card that they don’t use often. You can ask them to add you as joint in their credit card and you can build credit through their credit. You don’t even need the card... So if you’re a parent listening. Add your kid on the card and don’t even give them the card. They will build credit the fastest this way. You can share your credit history with them...

  2. Now the other way is to go to a bank or preferably a credit union and apply for this thing called a secured credit card. The only thing is that you need $300-$500 down for this. Depending on what the minimum the bank offers for a secured credit card. The way it works is that you give the bank $500 for example, and they hold your money and give you a credit card for $500. They hold on to it just in case you default and you can’t pay your credit card. Then there’s would be no risk for the bank. These are typically automatically approved because of the minimal risk.


Either of those two should work. You just have to save for the secured credit card, it’s worth it to build your credit. Now just an FYI, you will get the money back after 6 month to a year when you make the credit card unsecured.

Q: // (A loving mom): A loving mom writes - How do I set my son to be in a better position than me growing up? I made some pretty bad financial decisions, I owe to everyone, and I know I made all the wrong decisions when it comes to money. But I don’t want this life for my son. He deserves better. Thank you in advance


A: First and foremost mom. You are doing what you can do. It’s really hard and there may have been no one out there giving you this information I’m giving you right now so don’t be so hard on yourself. Honestly, it’s hard. This is a system where we are set up to fail, but with the right knowledge and information you don’t have to fail… So I have a few ideas for you. The first is, that you can open an account for him in a savings account and don't touch it until he is old enough. Another thing is that you can open a college savings account also known as a 529 Plan and don’t touch it until he is old enough, and the last thing is, that you can open a Roth retirement account for yourself. The good thing about a Roth Retirement account is that you can take out the amount you contributed without penalty, but you cannot withdraw the interest accrued or you will be charged a penalty fee. With this idea you could save up for retirement, but if your son needs it when he gets older, you can use it for him… Now, I don’t know if you caught it, but there’s one thing that all these things have in common. They all consist of savings and not having your son touch the money until he’s older. Imagine what you could’ve done with a few thousand dollars when you turned 18 or 21.

You can best inspire your child through your actions.

Now I want to give some advice… To you and any other parent listening trying to give their child a better life. I call it super mom or super dad syndrome. When you go hard for your kid, but don’t think about yourself… Listen, you can best inspire your child through your actions. You can best inspire your child as a role model. Meaning that you have to take care of yourself so that you can best take care of your child. You are a better contribution to your kids if you are in a better position financially. Try to work hard on fixing your situation now so he can know what it feels like to grow up with good finances. Or he can see your struggle to fix it and learn from your actions. Setting him up financially is great, but where will he learn what to do with it? And you really can’t give him advice he doesn’t see you taking. I mean you can, but trust me... He won’t listen. It just makes you feel better emotionally and financially as well. I wish you the best of luck. Hope that helps.

Q: // Julie : I own my home, I own my 11 year old car free and clear with no loan on it. Throughout the last few years I've accumulated $15K in Credit card debt due to my divorce. I want to pay them off and be done with my credit card debt, but it seems like I’m getting nowhere. What is your best recommendation on how to tackle the credit card debt?

A: First of all, I want to say I’m sorry ooor congratulations on your divorce. It happens. I also want you to know that I’ve seen a lot of situations that a divorce causes huge debt or bad credit. That is very common… Now this idea wouldn’t work for you because your car is fairly old, but for anyone else listening that this may apply too, if you have a car maybe less than 10 years and you owe less than what it’s worth. You can take out a loan on that difference and pay off your credit card. You will be paying off something with 21% interest with a loan that will be 3-5%. Another option which may apply to you Julie, is using the same concept for your home. If your home is worth $100,000 for example, and your mortgage is at $75,000, you can take out a loan for the difference between the two. You can take out a loan on the $25,000 difference. It’s called a second mortgage. So you could take out a loan from that difference to pay off your credit card. Once again, it wouldn’t get rid of the debt, but you would just be paying off a high interest loan with a low interest. It should make it easier for you to pay off. Or another option is that you can go old school just cut your card and put every extra money you have to your cards and do not use them at all. It’s hard to pay off your credit cards when you’re still using them.

Q: // Anonymous: I got furloughed and I don’t even know what that means. Feels like I got fired? What the difference is between furloughed, laid off, and fired? Or is there even a difference?

A: I’m so sorry you got furloughed Anonymous. It’s rough times right now. Now the good news is that you got the best one of the three. Which sounds weird, I know. Furloughed means that there is no work for you so you can’t work anymore, but you are still employed by your company, and even better than that, you still have insurance that the company is paying for you. Now being laid off means that the company cannot afford to employ you anymore and they have to let you go. In that case you are not employed and you no longer have insurance. And the last one is, getting fired, which means that you are not doing a good job at your work according to your employer and they have to fire you… In your case, you are doing a good job, unfortunately your job cannot afford to keep you for now, but they still want you employed and as soon as things get better, which they will. You have a job to go back to. Good Luck.

Q: // Anonymous: Someone sent me a link for Robin hood app I said this looks super easy then I’m like wait how do I know I’m gaining money? How does Robinhood work? How do I make money on this app? All tips are appreciated.

A: Hey Anonymous, I’m glad you’re looking into investing. So, one of the advantages of buying stock with Robinhood is its amazing interface. It’s literally made for beginners like you that don’t know a lot about stock. The app will give you recommendations. It will tell you when to Buy, hold, or sell stock. Always hold. It shows how much money you have invested in total and per stock. It also allows you to do a deeper dive into stock in case you want to read about a company. And best of all, its minimal cost. Free to $1 a month. Hope that helps. If you want my recommendation on a stock that will make you money is Hilton. It’s selling for $76.40 with the highest value being $115 a share. Hotels are doing horrible with this pandemic. So buying now is good. After the pandemic is over. People will travel hard and the stock will go up. Just my recommendation. I bought some shares of Hilton myself. Hope this helps. If you have any more specific questions, please continue reaching out to me. I’m rooting for you.

Q: // Joseph, Colorado : I had a call telling me that they have been trying to get a hold of me to get me my stimulus money. I have not received my money. I just hung up on them because I thought it was a scam. Now I'm second guessing myself. Was it a scam?


A: Interestingly enough, I got the same phone call. A few weeks ago I warned you all about some of these scams that is happening because of this stimulus money. So I want to tell you Joseph, you did the right thing. It was definitely a scam. If you haven’t received the money, you can check IRS.Gov/Coronaviras/Get-my-payment to find out where your money is. The physical checks went out last week so it may be coming to you via mail. The postal office is really backed up do to being so short staffed right now. The government will never call you to ask for your information or for money. Hope you get your stimulus money really soon. Good luck.

Q: // Katie, Atlanta: I got laid off and I'm waiting for my unemployment checks. I'm grateful I got my stimulus money, but when am I getting my unemployment money? I'm really stressed out. I've never been out of a job? And no one is hiring right now.


A: Aww man. I’m sorry Katie, I know these are stressful times. I’m so sorry you are going through this. Unfortunately I don’t have great news for you right now. A lot of states are having issues getting unemployment money to people. This is the most we’ve ever had people file for unemployment at one time. Ever! What that means is that everyone is waiting for this money right now. For whatever it’s worth, when you receive this money it will be back paid. A huge chunk of the 2 Billion dollar stimulus money went to states that need to pay out unemployment to its people. Meanwhile please take advantage of a few of the opportunities you have like skipping payments on mortgage or rent if possible, skipping payments on your loans, or temporarily getting your credit cards to 0%.. Now you can do all of these at once if your lender allows it. Hopefully some of those thing will keep you a float Hope that helps Katie. I’ll be praying for you and anyone else going through what you’re going through. Good Luck.

OK pain to progression family, hopefully there was some good gems for you in this episode. Remember you can send me your questions at my Pain To Progression Facebook Page or email me at paintoprogression@gmail.com

Also, be sure to tune in to my podcast where you I upload new episodes Monday, Wednesday, and Friday.


This information is for you to use and grow financially, but it’s also for you to share. Please subscribe and share. Paying this information forward is how we can help people like your fellow brothers and sister. Let’s learn this information they tried to keep us from and flip the world upside down.


Thank you so much for letting me serve you.




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