Finessing the Plug: How and Why I Have Over $100k in Available Credit

Yes, you read that title right, over $100k in available credit. You’re probably wondering why would someone have this much available credit and why would they need it! You’re probably also wondering how does one get that much credit. Well, stop wondering and keep reading, I GOT THE ANSWERS SWAY!

Momma’s Warning! 

At this point, I’m addicted to credit! Every time I get a new a credit card or credit limit increase, it’s a thrill. My mom always says, “Why do you need more credit. Don’t get tempted to use that credit card without having the money to pay it off.” Ma dukes is right and makes a good point. To have high credit limits means you need restraint. Restraint to not throw your life away by spending $50k of money that’s not yours and going bankrupt ( this thought runs through my mind everyday).

The Finesse

I use my credit cards three different ways, and I have three rules I follow to keep me accountable.

The three ways I use my credit limit is to finesse my credit score, to finesse credit card companies to give me more credit cards, and to make “real” money.

Building credit

I won’t go into detail on how it builds my credit, because I already wrote about this in a previous blog post,  3 Ways To Quickly Increase Your Credit Score. Just know the higher your available credit is, the lower your credit utilization is, which increases your credit every time. Yes, every time I get a credit limit increase on one of my cards (every 3 to 6 months) my credit increases! Find out how to get credit limit increases by reading my last blog post: 

 https://thetalented6.com/blog/build-credit-fast

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Attracting Credit

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I attract more credit with my high credit limits. When I apply for credit cards, creditors see my high credit limits. My other credit cards make it easier to not only get a credit card from that company, but instead of starting me out at a $3k limit, they start me out at an $8k limit. Which builds my credit even more!

Leveraging Credit

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I also make money with my credit cards because I use my high limit cards to invest. It took me years to build one of my credit card limit’s over $25k. Once I got there, I thought how I could leverage my credit to make money. I wanted to do something with a healthy return, so I decided to flip a house all on my credit card. You’re probably wonder why I would do such a thing, what about the monthly interest and the monthly payment? Well, over the years I also negotiate down my interest so instead of having a 23.99% interest rate, I have a 14.99% interest rate, and I used a 0 interest balance transfer check to turn my credit into cash for a small 3% fee on the back end. I’m expecting to make $10k to $20k from the three house flips I plan to do within the year with my borrowed money. $10k to $20k profit, and all I had to pay was a 3% fee on the back end to turn my credit into cash. I’m looking at potentially almost doubling my investment, and I was able to do this because of my high credit balance. Is there risk of me losing it all and going bankrupt, yeah sure. There’s risk associated with everything, but having a plan and confidence is key. Though it doesn’t lower your risk, it increases your chance of succeeding!

Quick Note: Balance Transfer offers usually only last 12 to 18 months depending on the type of transfer you use. Also, your monthly payment is usually 2% of your total balance. $30k balance = $600 monthly payments. So plan accordingly*

The Rules:

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I only have three rules when it comes to my credit card usage.

Never have more than 3 credit cards in use at one time.

  • This keeps the payments low. If you fall on troubled times, you only have to pay 2 or 3 minimum payments not 7 or 8 payments. A $50 minimum payment on 3 credit cards is $150, but a $50 minimum payment on 8 credit cards is $400. Only use 2 to 3 credit cards max, at a time.

Never carry a balance on a credit card that is accruing interest

  • Try to pay off all credit cards in full each month if they are accruing interest. If a new credit card or a new offer you accept from your credit card company allows you to have interest free purchases ( which happens, call and check what free offers they have going on) then I don’t mind carrying a balance on those cards. Just make sure to pay them on time and to pay the full balance before the offer expires

Never max out your credit card.

  • Never max out a credit card! Never, never, never. No need to explain here, it’s just bad for business. 

How I Did it

Now how did I do this? Years and years of calling credit card companies and requesting limit increases. Years of paying on time, and keeping low balances. All of this is detailed in my last post ( link above). Call your credit card company and request a limit increase along with a lower interest rate every 3 to 6 months. If they say no, ask again in 3 months. Set a reminder in your calendar app to do this like clock work!

Finessing the plug is easy when you have the tools and resources to do so! Leverage your credit to increase your credit score, and your pockets if you don’t mind taking the risk!

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