Changeinadvance

2 Quick Credit Fixes You Probably Haven’t Considered.

A lot of what I discuss on here is how to build a business or what mindset to have or avoid. Every now and then though its finance time my friends.
Today I’d like to discuss two quick credit fixes for the average joe. Credit can make or make you and literally cost you 100s of 1000s of dollars over the course of a mortgage, car, or student loan.
So let’s save you Money!

-Increasing your existing Credit.
A quick fix that most everyone is going to hate me for suggesting is to INCREASE your credit limits by taking out more lines of credit and more credit cards. Consistent approvals and credit limit increases will increase your credit score and your ratios in a favorable manner. Every time you are denied you lose two points. When Amex gives you a new account with them and a low to high limit though, you win. Even a $300 dollar increase still adds to your available credit. You always want a lot of available credit. Now in this economy people are scared. They are avoiding credit, hoarding cash, and living in fear. Fear doesn’t feed the kids folks. Fear doesn’t have dividends that pay quarterly.
Increase your existing limits. Heck call every six months and ask for a credit increase. Speak cordially and state your case. Your case should be that you miss no payments and are a member in good standing etc. They can only say no right?
If that fails, ask for a reduction in the interest you are paying. Even a quarter percent will add up over time. And again-
They can only say no right?

-Debt to credit ratio.
This ratio should be below 30% percent ideally. If you reduce your spending and or pay down the amount you owe to that level or lower and keep it below said threshold you will win. Having a lot of credit is good. Its actually a high need in your personal life and in your entrepreneurial endeavors.
The more credit you have the better you are to meet fiscal challenges. Not necessarily to save your personal pockets- but in a business you may need it.

And using credit, BUILDS credit! Amazing system huh!
By reducing this ratio you will see great results in your credit report, credit score, and fico score.

-Lastly don’t cut up those cards too quick.
A lot of people think that rather than practicing self control it is easier to cut up the cards and end the access. And that’s fine- if you cut them up ONLY. A lot of people cancel their cards to avoid debt and cash flow slavery. However when you cancel one of your credit cards you shrink your income to debt ratio. Ex: before you had 3 cards with $3000 limits respectively. So you effectively had a $9000 credit limit. Now when you cancel card 1 you are down to $6000 of available credit. And if you use $3000 of said credit you have a 50% ratio-OUCH! Credit companies, banks, etc don’t like that ratio. If you had that third card you would have a 33% ratio- a preferred percent.
So folks. Be grown ups. Don’t use that card. Heck don’t even cut it up. We are grown ups. And we are entrepreneurs.
Self control is the basis to success so practice, practice, practice.

#thriveorsurvive.

“The lack of money is the root of all evil.”
-Mark Twain

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Tony@Changeinadvance.com
@changeinadvance
http://www.changeinadvance.com
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Tags: #thriveorsurvive, @changeinadvance, blog, credit, debt, finance, interest, Mark Twain, myfico.com, success