The Journey of Building Credit: Tamaya Robles' Essential Advice

In an episode of the MindShift Power Podcast, we had the privilege of diving into the valuable insights of Tamaya Robles, a credit repair expert and owner of FixMyCreditNow850.com, based in California. Hosted by the dynamic Fatima Bey, this episode explores essential tips for teens on building and maintaining good credit.

What Is Credit?

Tamaya begins by explaining the basics of credit: "Credit is basically when you have a contract to borrow money from an entity, usually a bank, and you're agreeing to pay it back over time with interest." She emphasizes that credit plays a crucial role in various aspects of life, including purchasing cars, homes, and managing credit cards.

Common Mistakes to Avoid

Tamaya highlights common mistakes that people often make right out of high school. "Not educating yourself on what credit is and how it works before you become an adult is a major mistake," she advises. She encourages teens to start understanding credit early on to avoid costly errors in the future. "Practicing paying for things on time, even if it's a membership fee or a cell phone bill, helps build good habits," she adds.

Secured Credit Cards

One of the practical steps Tamaya recommends for teens is getting a secured credit card. "A secured credit card is where you give the bank some money upfront, and they give you a credit card with that amount," she explains. This helps build a credit history without the risk of running up debt.

Why Credit Matters

Tamaya explains the significance of credit in achieving financial goals. "You want to use other people's money to build your future," she says. She emphasizes that good credit allows you to access better loan terms and higher limits, which can be beneficial for both personal and business finances.

Building Equity

The conversation also touches on the concept of equity. "Equity is the value that builds up in an asset, like a home or even certain valuable items," Tamaya explains. She advises focusing on purchases that appreciate in value over time, such as real estate, to build wealth.

Advice for Teens

For teens looking to start their credit journey, Tamaya offers practical advice. "Talk to your parents about adding you as an authorized user on their credit cards," she suggests. This can help establish a credit history early on. She also recommends paying for small expenses, like a phone bill or rent to parents, and having these payments reported to credit bureaus.

Entrepreneurial Insights

Tamaya also shares valuable insights for teens interested in entrepreneurship. "Understand credit and know the laws in your state," she advises. She emphasizes the importance of keeping overhead low and building a strong credit profile for both personal and business purposes.

Final Thoughts

Tamaya's insights are a powerful reminder that building good credit is a crucial step towards financial independence and success. By starting early and practicing discipline, teens can set themselves up for a secure financial future.

Ready to dive deeper? Listen to the full episode of the MindShift Power Podcast with Fatima Bey The MindShifter here: https://www.buzzsprout.com/2217223/episodes/14203863