Credit Card & Borrowing Decisions

Credit Card & Borrowing Decisions

I have been all over the forums and I may have missed a few here and there so if this post is in the incorrect location, please forgive me.

The information below was given to me by an investor friend and said that I could post it here if I wanted to.

Hope that the below information helps any one of you out there with less than perfect credit.

Consumer vs. Investor

Millions of Americans are borrowing their way into financial hardship by not knowing how to use credit cards correctly. The situation is at epidemic perportions because of consumer spending patterns that encourage buying today with tomorrow’s income dollars. What’s at stake is your financial future and ability to save and invest.

One of the biggest problems with consumers is credit card debt, but most importantly is their consumer mindset. How you pay off the debt in a reasonable time frame, yet meet your financial obligations each and every month, can be a struggle. Paying off the debt is further complicated by the fact that credit card balances tend to be an ever-increasing moving target.

Most consumers want to finance their lifestyle vs. investing in their future. You need to ask yourself, out of all of my debt on my credit cards, how much of what I purchased is going to give me return on my money? If your answer is that 75% of what you have on credit cards is consumer items that are not giving you a return, you’re definitely in the consumer mindset mode. If you are not happy with that mindset, focus
on developing what we call an investors mindset.

Investors always ask themselves, “What is the investment”. Consumers ask themselves, “What does it cost”.

Your available credit and current balance reflected on your credit card statement is never your true balance. That’s because the credit card company prints statements periodically during the month and rarely at the end of the month to keep up with their transaction
workload. From the time of printing your statement to when you receive the statement, the balance could be different because there were pending merchant charges not included in your statement. Furthermore, you could have charged additional items in the interim.

It’s really easy to use credit cards and the use of them tends to be a painless transaction. What most Americans need is to think like an investor. We don’t suggest clipping up your credit cards, just temporarily stop charging on them, develop and implement a plan to restructure your debt. The second step is to begin tracking your credit card purchases
and outstanding balances daily. You must scrutinize your purchases by asking yourself, what will I gain out of my purchase. Only purchase items that you will make you money.

Just because you have taken a loan doesn’t mean that you have to pay it off in the time frames allowed by the creditor nor at the outrageous interest rates being charged.

More that 95% of all Americans feel that it’s their patriotic duty to be charged in excess of 18% per annum on their credit card balances. The truth is that most people purchase things based on how much the monthly payment will be. Because they know how much
they make on an hourly, weekly and monthly pay scale, and based on that they purchase items for luxury not out of necessity. You should keep at least 25% of your credit available in case of emergencies or bad times that are unpredictable. The other 75% should be available for investments not toys.

Different types of credit cards. You should carry credit cards that have no annual fee and a long grace period. This card is good for quick investments that you make. Say that you bought a piece of real estate and you put the down payment on the credit card and your credit card had a 30-day grace period. You would be using the banks money while your money sits and gains interest. Before your grace period is up, you would pay off the debt.

If you can‘t pay off your debt than your second choice is to have your investment to be on a low interest credit card. Banks are very competitive these days to keep you as a customer and to get new customers. Call the toll free number on the back of your credit card and ask them to lower your interest rate to 6% - 8% fixed. Tell them that you are getting several applications in the mail to transfer your credit card debt to a new low fixed interest rate. Which if you have credit cards you do get inedited with a lot of
applications so you know what we are talking about.

If you are not going anywhere with your customer service representative, ask to speak to their supervisor, most of the time the supervisor has authority to give you what you want. Tell them you would stay with them if they will lower you interest and raise your limits. You will be surprised what you
can negotiate, but if you don’t ask, you won’t get. Make it like a game and track you results.

For those of you that have no credit or bad credit, secured cards can be appealing. A secured card is when you put a certain dollar figure, and whatever you put up you can charge. This can be costly, but over time “some” banks will increase your limits without
you having to put up any more money. Make sure you are clear on what the banks policies are and how long you have to have the credit card before the bank will give you a unsecured line.

Check cards or debit cards are attached to your checking account. Your purchases are taking directly out of your checking account.

Here are some of the fees that come along with your credit card:
1. Interest rate
2. Late charges
3. Over the limit charges
4. Cash Advance fee
5. Annual fee
6. Credit insurance
7. Introductory Fees
8. Rebates
9. Additional perks

You must read the fine print on every application before signing it. Remember that all of the fees that a credit card company has is negotiable. Not all credit card companies will negotiate with you, but if you don’t ask, you won’t get.

Transferring one high interest credit card to a lower one is a good and smart thing to do. Most credit card companies will have a website that you can get approval and transfer money immediately, is an example.

Take Control Over Your Credit Cards

Freeze your consumer debt! Declare a moratorium on consumer credit card spending.
Contact your credit cards customer service department to negotiate lower interest rates and raising your limits.
 Contact new low interest credit cards to apply for. Don’t go crazy with it, do a few at a time, loading up your credit report with a lot on inquires doesn’t help your score.
 Track your purchases with a credit card log sheet or your checking account.
 Watch out for marketing ads that are to good to be true, always read the fine print or make sure the customer service representatives discloses all of the cost that are involved.
 Make extra additional payments to your principal balance.
 If you have a good insurance plan in place, cancel any credit life and disability insurance or charge card protection. This can be costing you as much as 8 – 10% interest yearly.
 Track your balance daily and record every transaction.
 Shift (consolidate) all your debt to a low interest credit card to reduce your minimum interest payments. This will reduce your interest charges while you are paying off the debt.
 When you begin charging after the moratorium, use either your low interest or long-float credit cards depending upon whether you intend to reduce your large balance over some reasonable period of time (no more
than 12 months) or pay off your credit card debt each month.

Use the Internet for your research to find no annual fee and low interest rate cards. Always read everything on the application. Taking just a few extra
minutes can save you hundreds of dollars in the long run.

If you are an overseas traveler, make sure you find out with your credit cards if they have an extra charge. Some don’t charge and some charge as much as
2% extra.

Platinum cards

If you have good enough credit platinum cards have a lot better benefits than gold or normal card. Typically platinum cards limits range from $5,000 to
$100,000. They generally have large cash advances.
Here is a list of credit cards for you to start your research with.

Next Card 888- 422-6596
Capital One 888-822-3397
B of A 888-948-2273
Wachovia 800-842-3262
American Express Blue 800-blue600

If you do go to or www.**** and research credit cards, you will find a lot to choose from. Do your research and don’t forget to ask for everything.


1. Increase your credit line limit
2. Borrow money with a co-signer
3. Apply for a new credit card
4. Start a second job (part-time) requiring no investment
5. Take out a bank loan
6. Increase your W-4 allowances at work
7. Cash in your vacation time
8. Take a pay advance from your employer
9. Cash in the surrender value of your life insurance policy
10. Borrow against your life insurance
11. Market something you already have
12. Hold a garage sale
13. Sell your baseball cards or other valuable collection
14. Refinance your home or second home


1. Clip newspaper coupons
2. Take out a membership to a discount program
3. Raise your deductibles on you auto insurance
4. Raise your home owners and/or renters insurance
5. Switch from universal or whole life to term life insurance
6. Cut your vices and turn them into cash
7. Cut the interest rates on your credit cards
8. Eliminate bank fees on your checking accounts


1. Adjust your take home pay by increasing your W-4 allowances
2. Increase your take home pay by using cost containment programs at work instead of buying insurance programs (Employer’s Benefit Program:
Cafeteria plan – Section 125)
3. Work overtime
4. Start a small business
5. Invest in real estate or the stock market



((S.N.O.B. = Society of Native Oregon Born.) This also works if you are from Ohio or Oklahoma.)

Credit Card & Borrowing Decisions

Alot to think about. Thanks.


Great information. Smiling

Thanks and good luck!

Cut Department Store CC

I think people should cut the department store, i.e. Macy's, JcP, etc credit cards. These cards are pretty much useless in my opinion. Use your credit card i.e. AmExpress and so on in times of emergency or to purchase appliances for your properties.


In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.