Good Credit

never spend more than 33% on your credit cards limit and pay them off every month on time.

never miss a payment even if all you can pay is the minimum

debt to income is how much money you owe vs. how much money you make. once you get 2-5 times debt to income, good luck borrowing money

credit is for people with money already, once you are stable and you decide you want to replace your debit card with your credit card and spend with it, that's fine, just remember to be disciplined and responsible and stick to the rules.

if you intend to start business's using other peoples money, its important that you revolve your debt and treat it like a fine wine or elegent wife. try as hard as you can to never mess up and if you can succeed, the second you have a business idea worth discussing, you will get the funding you need with little to no push back.

feel free to increase your limits on your cards as you stabilize which will increase your purchasing power while also lowering your debt to credit (more credit means a better ratio)

be very careful with interest rates. often times finance companies prey on the poor and less fortunate. a young couple who may have had a child young needs a mattress but doesn't have 600 for a mattress and doesn't want to waste 300 on something that won't last, so they decide to try and finance but they are young and have no credit. A 3rd party finance company sets them up on a payment plan that when its all said and done will cost the young couple 1800 for the same product over 3 years. car companies like to charge crazy amounts for people who don't have great credit and mortgage companies are no different. anything over 5% on a mortgage loan is too high and anything over 17% on a car loan is too high. i would actually aim for something closer to 6-9% for a car and no more than 4% for a home.

on the contrary if you have next to perfect credit, more often then not you have the option of 0% financing, so take care of your credit for your own financial sake. for a home ownership, 3% is the best the average person can hope for even over 700 credit score.

be careful not to over extend yourself with too many lines of credit. when an emergency happens and you have to pay the minimums on 3 cards it's fesable, when you have to pay the minimum on 13 cards, you will see real quick how its practially impossible to balance with that kind of debt when you are having an off month or an emergency. always keep in mine your extra monthly capital before going into debt for anything you don't need. a good rule of thumb is to never go into debt for something you don't need unless you have the money to buy it outright, but would rather keep it and get a 0% payment plan for a short period of time.

for those looking to looking to rebuild credit, often times we just need to contact the debtor and consolidate our liabilites allowing us to become in good standing with the initial companies and have 1 large bill. this resets the negative history (which some would say its bad, but only for your score. debt free is better then good credit when credit was a problem for you initially.)

before you borrow for a business venture speak with as many experience people as possible and feel free to consult with our advisory team if you have questions, we are fixated on wealth management and creating systems that are organically stable. contact us today for questions.