Kak
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YES YES YES!!! Credit is like an investor. It can help you grow. The debt to stay away from is CONSUMER debt. I have a high 700s credit score and I would not be able to run my business the way I do if I didn't.
I always purchase inventory on credit. This actually allows me to sell my inventory before I even pay for it.![Wink ;) ;)](/community/imgs/emoticons/em-wink.png)
Keep turnover high and you won't even feel credit card interest.
The way I started was a crappy card from capital one. They gave me like a $500 limit. I used it for daily expenses and paid it off multiple times per month. After about a year I applied for a Chase Sapphire card with a $5000 limit. Got it. Dropped the Capital One POS that was only up to $750 at that point. A few months later I got a Amex Green card, I have used this card daily since for personal expenses, you can't carry a balance.
About 6 months after that I got an Amex Simplycash and a United Explorer card.
About 6 months after that I got an Amex Blue Business card, which is a pretty damn hard one to get.
Then came a business LOC from the bank.
-The biggest metric for your credit score is the ratio of your used credit to what you are offered by the creditor. Keep this below 50%.
-Another important metric is length of open accounts. Keep this in mind when signing up for credit cards. No annual fee cards can sit in a sock drawer until they expire and send you a new one and help your credit for free.
-TOO MANY INQUIRIES ARE BAD. Don't keep applying to amex platinum and shit right now, they will decline you and make it harder to get the one you would have been approved for. The green charge, after a year can be upgraded to any of the charge cards except black if the benefits packages are worth it. Ill probably bump up to the preferred rewards gold.
If you have a job, I would not finance anything whatsoever. I know I recommend vehicle leasing and stuff, but that is for people who are self sufficient and do not rely on a job. More debt while you have a job is more entrapment. I think if you added ALL of my consumer debt right now it wouldn't be over about 3k. It will also be paid down to nothing at some point in the next 30 days like I do every month.
Business debt is another story. It is 7k in debt and climbing. But every time I buy inventory my asset value separates itself farther and farther from the debt level, hedging my investments across the board.
If I would change anything from the above, it would be not messing with chase at all. The cards suck compared to amex.
I always purchase inventory on credit. This actually allows me to sell my inventory before I even pay for it.
![Wink ;) ;)](/community/imgs/emoticons/em-wink.png)
Keep turnover high and you won't even feel credit card interest.
The way I started was a crappy card from capital one. They gave me like a $500 limit. I used it for daily expenses and paid it off multiple times per month. After about a year I applied for a Chase Sapphire card with a $5000 limit. Got it. Dropped the Capital One POS that was only up to $750 at that point. A few months later I got a Amex Green card, I have used this card daily since for personal expenses, you can't carry a balance.
About 6 months after that I got an Amex Simplycash and a United Explorer card.
About 6 months after that I got an Amex Blue Business card, which is a pretty damn hard one to get.
Then came a business LOC from the bank.
-The biggest metric for your credit score is the ratio of your used credit to what you are offered by the creditor. Keep this below 50%.
-Another important metric is length of open accounts. Keep this in mind when signing up for credit cards. No annual fee cards can sit in a sock drawer until they expire and send you a new one and help your credit for free.
-TOO MANY INQUIRIES ARE BAD. Don't keep applying to amex platinum and shit right now, they will decline you and make it harder to get the one you would have been approved for. The green charge, after a year can be upgraded to any of the charge cards except black if the benefits packages are worth it. Ill probably bump up to the preferred rewards gold.
If you have a job, I would not finance anything whatsoever. I know I recommend vehicle leasing and stuff, but that is for people who are self sufficient and do not rely on a job. More debt while you have a job is more entrapment. I think if you added ALL of my consumer debt right now it wouldn't be over about 3k. It will also be paid down to nothing at some point in the next 30 days like I do every month.
Business debt is another story. It is 7k in debt and climbing. But every time I buy inventory my asset value separates itself farther and farther from the debt level, hedging my investments across the board.
If I would change anything from the above, it would be not messing with chase at all. The cards suck compared to amex.
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