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Final Act of Leverage

April 1st, 2014 at 03:46 pm

Good evening SA Family.

As I blogged last night, it was a very busy financial day. Opening another account, applying for my second and third credit card and verifying the standing of my lines of credit and setting up auto bill to my credit card to start earning cash back rewards/gift cards (I am hoping to use it like a nice Christmas Club account)

Today, I am happy to report that I was approved for my final credit card! I received the email this afternoon! I am now the proud holder of $75k in available lines of credit.

God forbid, but If I ever need access to a large sum of money, albeit temporarily, I have the peace of mind knowing I am all set. Thanks Retired to Win for the support and encouragement! Jamie

4 Responses to “Final Act of Leverage”

  1. Rachael777 Says:

    So how did you do this.. what is your credit score. how did you get such large lines of credit (over time) or some trick to it. I really want to know. Reading you and Retire to Win makes me think the idea of lines of credit vs 100% cash sitting around for emergencies makes sense. I am not 'there' yet (still stabilizing) but want to get prepared to initiate this strategy the right way by learning from others. Please share details.

  2. rob62521 Says:

    Our financial advisor recommended that we try to keep an open line of credit in case we would need to borrow money. Glad it is working out for you! Woo woo!

  3. Mooshocker Says:

    Rob62521...thanks for the kind words. Yes, the power of credit and the liquidity of said credit is critical to the leverage one maintains during times of need or opportunities. Thanks again!

    Rachael...I have always maintained a FICO Credit Score of 790 or higher. It has fluctuated in the past, albeit slightly, due only to credit inquiries during times of mortgage applications, automobile purchases, etc. This in conjunction with my debt to income ratio makes me a good credit "risk" the lender(s). There really is no trick. On time payments for all reporting debts (actually, any debt should be paid on time whenever possible), living within ones means which usually translates into savings/investments of some kind (the banks look at this as unsecured collateral) and of course, free of judgments, liens, etc.

    I maintain ~$15k in "cash" in a moderate money market account. I have a debit card and checkbook attached to this account so it's very liquid. I also maintain $40k in direct lines of credit with my lender. This was achieved after years of growth. I started with $1k when I was young, borrowed, paid, applied and was awarded $5k, then over and over again until I stopped at $40k. The ability to obtain the two credit cards between Sunday evening and this morning was nothing more than one phone call and one on line application. That is the power of your FICO score and that is why so many finanical experts harp and harp and harp on its importance. Good luck and please feel free to reach out whenever you may need some suggestions. Jamie

  4. Rachael777 Says:

    Thanks jamie. I am sstill resurrecting my score (am at 680) but have a moderate start on rebuilding credit. I will work on that more after I refinance the house (my own.. see prior notes. I have a hard money loan that I need to refinance out of in the next 6-12 months) so do not want upset the apple cart until then. great job. It is fun to learn and get results isn't it? Smile

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