Associates,

When I was a kid, my family had a full-blown Dave Ramsey revival. Credit cards? Burned at the stake. Debt? The devil’s playground. But fast forward to me, wide-eyed at 18, trying to buy my first house—turns out, lenders don’t take “good intentions” as collateral. Credit isn’t just a score; it’s one of the keys to unlocking your real estate dreams. Whether you’re team “cash-only” or just starting to dabble in the credit game, let’s cut through the confusion. Stick around—I’ve got three dead-simple ways to get started.

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​Newsletter Update: After our live Wealth Call with Rory Duddy fromFinancialPerformer.com this week (hosted by The Associate Community) we reached a whopping 76 subscribers! I can taste 100. Seriously, we are so close. If you would forward this email to just 1 friend today, I'd appreciate it so much! We can do this, just spread the word!

HELPFUL LINKS

• ​Become and Associate and watch the Intro to Bitcoin Class Replay FREE!​
• ​Do yourself a favor and read this instead of reading Dave Ramsey.​
• ​👉 My first credit card 💳 ! See if you qualify without credit pull!​
• ​This guy is often right about trends... His ideas changed my life.​
• ​I think you'll appreciate Bedros' Advice for 2025​

These links are here to help you take action and do what you learn in the lesson below...

Dave Ramsey, I Mean No Disrespect But... 🤦‍♂️

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Last week, we talked about building a power team—the group of professionals and advisors who will help you succeed in your real estate journey. The week before, we covered getting pre-qualified for a mortgage which, unless you've already mastered creative finance for real estate, means relying on your own cash, credit, and credentials to qualify for a mortgage. (If you're sitting on $1M, hats off to you. Feel free to pay cash for your properties 🔥)
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Here's the thing: getting pre-approved to buy your first property doesn't start with filling out a Uniform Residential Loan Application (URLA) at a bank. It actually begins sometimes years before that—when you start building your credit.

As a kid I didn’t think much about credit. It wasn't taught in school. In fact, my family had a Dave Ramsey phase before I was in the double digits. We all went into the living room one day and watched Dad cut up all the credit cards with a pair of tin snips. If anything, credit cards were flagged as evil.
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​Now, Ramsey's insights and training have had a tremendous impact on my financial life, I still listen to him from time, and recommend folks to watch his material. He teaches a zero-based budgeting approach that I also advocate for. His emphasis on personal responsibility and self-control is terrific. Next to none.
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But if you have ever tried to apply for a mortgage before, you know that there ain't no way you're getting a house without a credit score.
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So, the burning question is...
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How do you start building credit?

Here are three practical ways I recommend to start building or rebuilding your credit:

1. Get a Secured Credit Card

If you have done a YouTube search on how to build credit, getting a "Secured" credit card is the hot-button recommendation. Here’s how these cards work: you deposit a refundable amount (say, $200 or $500) as collateral, and the credit card issuer gives you a credit line equal to your deposit. You use the card for small, regular purchases—like groceries or gas—and pay the balance in full each month. This demonstrates responsible credit use and builds your score over time. Once you’ve established good habits, you can often transition to a regular, unsecured credit card. Often times your deposit is given back to you.

2. Auto-Pay Personal Loan

This is another creative way that I started to build my credit early on: I got my bank to give me a $500 loan, I took those proceeds and deposited them into a dedicated checking account, and I set up to auto-pay so the loan I took paid itself off. It cost me a few bucks in interest, but by the end of it, I had a credit score! There is a good chance that on of your local banks or credit unions will approve a setup like this for you. If you're just getting started, this is definitely something to consider! Making consistent, on-time payments will strengthen your credit.

3. Piggybacking

Piggybacking is one of the best ways to start building credit. It involves asking someone with a strong credit history—like a parent, close relative, or trusted friend—to add you as an authorized user on their credit card. Here’s the best part: you don’t even need to use the card. By being added to their account, their positive payment history gets reflected on your credit report, giving you a head start. Just make sure the person you ask has a stellar credit record and low utilization rates. This method works well for young adults or anyone new to credit, and is an easy sell because you can say "I don't even want the card." They can burn it or cut it with tin snips for all I care. We aren't trying to go on a shopping spree, we are just trying to leverage their existing record, with no harm to them.

Why Credit Matters More Than You Think

When it comes to real estate investing—or any major financial decision—lenders care about these main things: income, credit, and employment. All of these are integral, (particularly employment; more coming on that in future newsletters) but out of these, credit plays a big role. Why? Because it tells lenders whether you’re trustworthy with borrowed money. A strong credit score not only increases your chances of approval but can also secure you lower interest rates, saving you thousands or even tens of thousands of dollars or more over the life of a loan.

Here’s something else many people don’t realize: most lenders want at least two to three active credit lines on your credit report to qualify for a mortgage. These can include credit cards, personal loans, or auto loans.

Let me clue you in:
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Right out of high school shortly after I turned 18, I wanted so badly to buy my first house, and because I wasn't conscious of the information in the past few paragraphs, I was set back for YEARS. I didn't end up buying my first property till I was 21.
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This knowledge is gold.
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Please start building your credit now.
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Here are a few more tips before we part ways next week:

Maintaining Your Credit for the Long Haul

Building credit is just the first step.
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Maintaining it requires discipline and a solid understanding of what factors impact your credit score.
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We will go into more depth on this in the future, but here are a few of the most important rules of thumb:

• Payment History: This accounts for 35% of your credit score. Always pay your bills on time—it’s the single most important habit you can develop.
• Credit Utilization: Keep your credit card balances below 30% of your total credit limit. This shows lenders you’re not overextended.
• Credit Age: The longer your accounts have been open, the better. That’s why starting early matters.

If you’re serious about real estate—or any goal that requires financing—I urge you to consult with a lender early in your journey.
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They can provide personalized advice on what you need to qualify for that first real estate property, whether that’s additional credit lines, a longer credit history, or a more intentional career path.

In next week’s newsletter, we’ll dive deeper into credit maintenance, including strategies for improving your credit score and avoiding common pitfalls.
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Once again, if you’re just starting out, take these steps seriously—they’re the foundation for everything that comes next.

As always, I’d love to hear your thoughts and questions. What’s been your biggest challenge when it comes to credit? Let me know, by hitting reply and shooting me an email and we’ll tackle it together.
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Talk soon,
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-Jonathan

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​P.S.

This week we had an amazing turnout for our "Intro to Bitcoin" call with Rory Duddy from FinancialPerformer.com. Rory gave an incredibly insightful presentation, and answered our burning questions! If you missed it, please hit "reply" and shoot me an email; I will tell you exactly how to access the replay :)

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