Tim and Matt are joined by Real Estate and Credit expert Jeremy Reece to give you the score on credit, why it’s so important, and the difference between good and bad debt.
Description
Tim and Matt are joined by Real Estate and Credit expert Jeremy Reece to give you the score on credit, why it’s so important, and the difference between good and bad debt.
We’ve all heard the ads, “We’ll give a loan to anyone! Bad credit, no credit? No problem!” What is the difference between bad credit and no credit though? As it turns out, history. You could have a credit score of 750, but without the extensive payment history to back up the score, you’ll have a difficult time securing a loan. Why is that? Well, you may have made a few payments on time, but there’s not enough data from a payment history to show that’s a consistent pattern of behavior.
That’s not to say you should go out and get a bunch of credit cards right now, either. Consistent payments, over time, only utilizing a fraction of the credit that’s available to you. That’s how it’s really done. It can’t be done overnight, but as the score builds, interest rates can potentially get better for ya and loans will be easier to secure, as well. Wait, though. What if you’re living paycheck to paycheck and there’s no room on the credit cards at all other than for the minimum monthly payment?
Well, Jeremy (and others) would argue there is, it’s just a matter of giving your expenses a good hard shakedown. Cut the fat where you can (and that can seem painful initially) and start making extra payments with the saved moneys toward the gnarliest bills. Over time the gnarliest bills will disappear and you’ll have more money to keep doing the same trick. Keep at it utilizing that snowball effect and over time, you’ll have debts paid off and extra cash in your account. …and guess what? That’s also roughly how compound interest works when working with trades such as covered calls or other cash flow strategies. So long as the funds don’t leave the system, they’ll keep working for you in the future, earning you more money.
Notes
- For your free 15 day Tackle Trading Pro trial membership, follow this link and fill out the form with the coupon code: theta
- Click Here to join us at Tackle Trading
- For more about Jeremy Reece’s company, ASFG, you can find the website right here: ASFG Link