Can you imagine having 220 credit cards with $2.7 million in credit limits?
Sound too good to be true?
It’s possible that you can raise your credit limit by the millions once you understand how credit works and you leverage that knowledge.
In Mike’s video, he shares the four pillars of million dollar credit and how to leverage it properly.
He had opened lines between those 220 credit cards, 2.7 million dollars.
Today we’re going to talk about a really cool topic that, I’m going to bring so many nuggets to you that it’s going to be unreal. I’m going to give you some really cool things that are going to help you along the way in your credit game.
So let’s talk about this.
First thing you want to know is why did they not teach us this in schools? Schools don’t talk about financial literacy, schools don’t talk about credit, schools don’t talk about what you should do with credit cards, they don’t talk about this kind of stuff.
So that’s why you have to rely on places like Tradeline TV because we’re going to give you the education you need that you didn’t get from mommy and daddy or your teacher.
So, quick story and then we’re going to get right into it.
Quick story, met a kid, okay, 220 credit cards. He had 220 credit cards, he had opened lines between those 220 credit cards, 2.7 million dollars, 2.7 million dollars in credit cards. 20 million reward points. And here’s the craziest thing, he’s only 20 years old. This is a 20-year-old kid who was able to establish this in a year and a half.
So from the time of 18 1/2 years old, he started with a credit score of 579. He was able to work himself up to 775 roughly score, about 200 points and accumulate over 200 credit cards.
Now, there are four pillars that we’re going to talk about…
Pillar #1: Credit Limits
You have to have good credit. Obviously, he’s not getting 200 credit cards with bad credit. So one of the things we need to first identify is what is your credit score because that’s going to be very important.
If you’ve got a horrible credit score, then we have a separate conversation where we need to talk about credit sweep, we need to talk about removing the negative items.
But first, let’s talk about what your credit score is. Maybe you don’t have any credit, maybe you have credit but you don’t have a lot of credit, so here’s a really cool thing.
First and foremost, you’ve got to start getting at least one credit card. So if you guys don’t have any credit, I want you to open up a credit card.
If you have zero credit, your goal is to open up a credit card. You’re not going to get a whole lot of initial credit limit which we’re going to talk about in a second, how to do some of that to fix you up a little bit. You’re not going to get a whole lot, $20,000, $30,000 limit right off the rip, but you need to start somewhere.
All this bad talk about how credit cards are bad and this Dave Ramsey stuff and all this bullshit about how you don’t need to get credit cards. Look, man, the rich get richer and the poor get poorer for a reason because once you go on a downward spiral, nobody wants to deal with you anymore.
The rich get richer because they start accumulating more credit cards and lines of credit and businesses. You want to be part of this group, you don’t want to be part of the group that doesn’t do anything about it, doesn’t take action, and you’re the kind of person who continues to spiral down each year.
So I’m going to ask you to open a credit limit. The card could be 500, 1000 bucks, whatever the case is, but I need you to open up a credit card first.
Now if you have negatives, I’m just going to cover this topic really quick, if you have negatives, cfpb.gov. This is a nugget that I wasn’t going to share, but you know how I am. I share all my nuggets with you. It’s like McDonald’s man. Share my nuggets, but check this out cfpb.gov.
Go there, dispute if you have any information, if you need help with it, guys we can help you here with that as well. But dispute the information, they have 14 days to get back with you legally to let you know if it is valid or not.
Pillar #2: Credit Line Increase (CLI)
Now let’s talk about the second pillar for a second, because this is a cool trick that not a lot of people know about. Credit line increase, CLI. Once you start getting one or two credit cards, what I want you to do, is I want you to start increasing your limits on those. Now the thing about credit line increase that’s very important, is that you have a relationship.
99% if not 100% of banks are based on relationships. What that means is, you’re not going to go in, open up a credit card and then a day later asking for an increase. Doesn’t typically work like that. They want to see that you are making payments on time.
This particular kid that we’re talking about uses a what they call a two to six-month rule, some people as early as two months by making payments on time for two months, you can go in for the credit line increase, sometimes it may take six months. But the key is this when you call for your credit line increase, you have to remember that these credit card companies, they’re getting tons of calls; all they get is rude people calling in, ask what’s going on with my credit card? It’s a low limit, you got to slash this.”
What you need to do when you call in, is you need to be nice. I need you to spend about a minute or two, building rapport. How was your day? Where are you from? Where’s your family from? How’s the weather there? They have time. Spend about a minute or two minutes with these people building rapport. That is the key to credit line increases. Trust me when I tell you, they can make an exception on the back end because you’re nice. These people get nasty calls all day, you don’t want to be one of them. Be nice, two to six months, making payments on time, tell them to look at your credit report, have someone analyze the credit report, right there, they can do it. Check you out, make sure you’ve been on time.
Now, I want you guys to use what they call the 93% rule. I talk about this all the time, how utilization should be at 7%. I want you to keep your payments, let’s use an example, you get a $1000 credit card, 7%, 70 bucks. That’s the most that I ever want you to spend on that card. If you spend more than $70, do not go in for a line increase that fast. $70 or less on that $1000 card. It’s called the 93% rule and it works like a charm. Once you spend a little bit of money, then you can go in and say “Look, man, look at me, I’ve had perfect payment history, I know how to manage my accounts, I never went over 7%, have a nice day, bada bing, bada boom.” Get yourself a line increase.
There’s a couple of other tricks that we will talk about. I’m going to have you guys contact us about, that I want you to use inside of that call. Obviously again I don’t have the time to share that with you today. But I do want to share it with you because there are a couple of things outside of just being nice that I want you to say on the phone that helps. A couple of other nuggets I want to share with you.
Pillar #3: Travel Rewards
250, third pillar. This is the third pillar. The third pillar is travel rewards. This particular kid that I’m talking about, travels the world for free. Because he’s accumulated so many points, so many rewards. And by doing that, by having 200 and some cards, he was able to, I saw the stack, literally saw the stack, he had $25,000 in just gift cards and then literally he … some of these cards will give you a significant amount of points that you can use towards travel. I do recommend Chase Sapphire, I love the card. Chase is one of these cards that allow you to have five accounts with them, but they do really good on rewards.
Pillar Number 4: Cash Back
Another really good one, that I’m going to give you guys a tip on, is going to be American Express.
American Express has one of the best cashback, that’s the fourth pillar, your cash back, you get rewards and you get cash back, but they have one of the best. All your platinum cards with the face on the front, all your everyday card, platinum, blah, blah, blah, they have the best rewards.
Now, you’re not going to know this but it’s called MR. MR stands for membership rewards. Membership rewards – you would think that, which a lot of people think, let’s go for the cash back on it, let’s go for the ones that say oh I can get 1% back on this on gas, and 2% back on dining, 3% back on travel, and they think that’s better.
But what we have found, and again, a lot of people will know this, you’re going to want to look for membership rewards. One particular card will give you 250,000 membership rewards points. That you can convert to cash. That particular line gives you 1.25% of per point. So you get a membership reward point, that equals 1.25 cents. If it gives you 250,000 membership reward points and each one equals a penny point two five, that’s nearly $2000 that you can cash out on just signing up.
So if you guys don’t know that, that’s why I’m bringing these nuggets to you. But in terms of your cashback, American Express is your hands down … also American Express is known to give one of the highest credit limits. They have the Black Card, they have the Unlimited, they have a lot of very high-end cards that you can continue to raise in credit limits, so they’re one of the highest.
Guys I know I don’t have a whole lot of time on the videos, but I definitely wanted to share these four things with you. It starts with your credit, the first thing.
We don’t want to get into points and rewards and how to get a credit line increase if we can’t get our first credit card. Our first credit card is going to be depending on your credit score. Who wins when you have a bad score? The banks win, credit card companies win, car dealerships win, mortgage companies win. You don’t win. You guys owe it to yourself to have a better score.
Listen if you can’t do it for you, do it for your family. Do you know what I’m saying?
So I’m going to ask you guys to call us up. Give us a ring, we’re not going to bite. We’re not a disease. Okay, call us up. Take the first step and action. We’ll give you a free consultation, see where you’re at currently. Our staff is trained to make sure that they get you to the right option. There’s no obligation. Everything is free. So literally, if you want to make a purchase, absolutely. If you don’t, that’s great. But at least you know where you stand. That’s the purpose of us coming to you guys every single day so we can bring this education.
And again, make the phone call, take action. Let’s look at where you’re at, along these four pillars and then we can get a course of action of how we’re going to move forward.
Until tomorrow, take care.