Answering the Web’s most searched questions pt.6
Updated: Nov 23, 2022
I remember watching G.I. Joe cartoon reruns as a kid. They would always end the episode with a positive message to keep kids on a good path.
One of the quotes I remember most from the show was, "...knowing is half the battle."
That quote always stuck with me and helped motivate me as I taught myself the secrets of business credit. A little more than a year of researching helped me secure a $50,000 business credit card with 0% interest.
Once I learned the secrets to scaling a business through business credit cards, I wanted to share this information with other entrepreneurs who were making the same mistakes I did.
So let's get empowered and learn more about credit cards!
Are credit cards secured or unsecured?
Secured and unsecured credit cards are two separate things.
Think of it like automatic and manual transmission cars. Both do the same thing, there are just different ways to operate them.
Unsecured cards are your traditional credit cards. You have a card with a set spending limit and keep building up your debt until you max that card out.
A secured card works differently: you put money on a credit card before you use it. In essence, you are the one who sets your spending limit, not the bank. It's a preloaded card that still impacts your credit score.
These cards are a little harder to qualify for if you have a less-than-favorable credit score. Thankfully, my Credit Stacking mentorship teaches you methods to improve your credit score and qualify for the right credit cards.
Are credit cards with annual fees worth it?
Usually, there is a connection between cards with high annual fees and the benefits they offer.
A card with a high spending limit and a 4X point reward system will usually have a higher annual fee than a card with a lower spending limit and, say, a 2X point reward system.
So in my personal opinion, I feel like they are worth it.
That being said, there are ways you can get around the annual fees. Members in my Credit Stacking mentorship know there are ways to get out of paying an annual fee.
It's not illegal and it won't hurt your credit. It's a sweet hack you can use that the bank doesn't want you to know about. So empower yourself and learn how!
When do credit cards charge interest?
I say "0% interest" a lot in my blogs. But that doesn't last forever.
A 0% interest rate is limited to a certain window of time. Sometimes it is for 12 months, other times it's for 36 months. Whatever the time granted, its window of time is the secret to success in scaling your business.
If you have a $50,000 spending limit on your card with 0% interest for 18 months, you have 18 months to max out your card and then pay off that debt without worrying about interest.
Rather than growing your business paycheck to paycheck, you can become self-funded and then use the income you make from your business to pay off your debts as you scale.
Now you know how easy it is, you have the power to scale your business and fund your next big idea! Come join our Credit Stacking community and learn more skills to help prepare you for success.