Welcome back. I hope you have done your homework. A quick reminder: Do so at your own risk. I cannot overemphasize the importance of educating yourself from all sources on fatwallet. Continue to read and research on App-o-Rama, then take a week to formulate a plan. Lets review….
Some basic terms:
- Balance Transfer(BT) – this is not a cash advance, this is where you ask the credit company to send or write you a check for the amount you want. You can then deposit the check into your bank account. You can also transfer the amount you want to another credit card.
- Customer Service Representative (CSR)- this is the person you talk to when you call the 1-800- number in the back of your credit card. By talking to them, you can ask for an increase in credit limit, solve any issues, and make deals with them.
- Credit Limit Increase(CLI)- this is where you call the CSR to increase your credit limit. The higher the better.
- Credit Score (CS)- everybody in this country got a credit score. It determines if and how much you can get with your credit cards offers.
- Credit Transfer (CT)- say you have an old Chase credit card, and now you just got a new Chase credit card with 0 % Apr. You can ask the CSR to transfer the credit from your old card to your new card in order to get more money out of Balance Transfer.
- 0% APR – simply means interest per year at 0 percent. All payments go toward your principal balance.
- Hard Pull (HP) – this is a pull done by credit card company to see your credit history. Every time they do this, your credit score will go down by 5 points.
- Soft Pull(SP)- Check your credit history, but do not hurt your credit score.
Alright, now that you have done your research. You ready to get things started right? You want to apply bunch of 50 cards right away? Whooaawowwoow…Slow your roll playa… do the following steps below first:
- Sign up one of the above sites, get your credit report and FICO score, fix whatever you need to fix such as current address, pay any miss payment, and correct and double check mistakes. Do it now and cancel your service before the 30 days free trial is over.
- Now gather up all your current credit cards together. Call each one of them from the 1-800 number in the back of your card, ask the CSR to increase your credit limit WITHOUT DOING A HARD PULL. It’s very important that you ask the CSR specifically increasing your credit limit without doing a hard pull. Tell them you need more money because spending is high this month or that you have been with them for a long time. Talk to the manager if you have to. Remind them that you are willing to do a soft pull for the credit limit increase. The reason you want higher credit limit so later on your debt-ratio will be lower.
- Some issuers like Citi will only allow you to have 3 cards at one time, so you need to consolidate a couple of the Citi cards into one. Consolidating means combine all your credit limit together.
- Go download this program calls Roboform. The program is especially helpful because it will allow you to put in your information in advance. With one click, your credit card application will be filled up instantly. It allows you to reduce your time, hence making it possible to fill up to 50 credit cards in two hours.
- I highly recommend a combination of EverBank 3.25% APY checking for monthly minimum payment using their free bill pay and this 6% APY FNBO direct savings account. The rate is guaranteed till Sept. 28. If that doesn’t suit you, here is a top ten list of savings account in the country. If you want a brick and mortar one, try Wamu with 5% APY.
Come back tomorrow for a list of all of my must have credit cards on Part 3 of the Hustlermoneyblog Series.