What We Should Have Been Taught About Credit

Happy Memorial Day Weekend!! As I promised, I would give you some tips and actionable ideas in the oncoming weeks and I’m here to fulfill my promise.

Let’s get to it. So many of us are in pursuit of that coveted 750 credit score. Some of us are even going after that elusive 800 club. There is nothing wrong with having a consumer credit score to be proud of, especially when it’s a sign of being responsible and discplined with our finances and obligations.

While you may be boasting that three figure number, I have to ask: What’s the point of having a strong credit score? Think about the purpose of the score and then choose from the following multiple choice responses:

The point of having a strong credit score is so that you can:

A) Go shopping and max out the card

B) Buy a home and create tremendous debt

C) Leverage the score to buy assets to create cash flow and live on your own terms

I don’t judge for any answer you choose…𝗕𝗨𝗧 𝗜’𝗠 𝗛𝗢𝗣𝗜𝗡𝗚 𝗬𝗢𝗨 𝗦𝗘𝗟𝗘𝗖𝗧𝗘𝗗 “𝗖.”

Credit was designed to access large sums of cash in order to own cash flowing machines…real estate, freight vehicles, businesses, and more.

The unfortunate reality is that so many consumers in the United States accumulate consumer debt and never get out. According to results to a study via Experian reported April 6, 2021, consumer debt increased by 6% to a high of $14.88 Trillion in 2020 despite the pandemic. The debt includes student loans (12% growth), mortgages (7% growth), and personal loans (6% growth) per Q3 2020.

Our “open-ended” credit plan gives us options to obtain large amounts of capital in order to purchase cash flowing vehicles so that we can live the lives we want. Maybe it’s doing something you are passionate about. You may want more time with your family. Like countless people, maybe you want to see the world and charter a flight to any country and time of your choosing.

The point is, the wealthy have know to leverage “other people’s money” in order to be free and live life on their terms. Keep that in mind when you are focusing on repairing, building, and leveraging credit!

As always, feel free to follow me on Instagram @that_moneyhacker where I give actionable tips to help you leverage your credit in order to pay for your lifestyle!!

You can also download my ebook “Bank Secrets” in which I share tips and methods that will help you structure and build your credit report in order to leverage it to fund your lifestyle.