Having a good credit rating is vital for financial stability and success in today’s world. Unfortunately, I learned this lesson the hard way. In the past, I took several business risks that ended in failure, causing me to lose a lot of money and severely damage my credit rating. I had over 20 credit cards, loans, and overdrafts and was able to raise over $131,000 in credit, but all of that was gone after my credit score plummeted.
However, I also realized that access to credit is crucial for creating wealth. The harsh reality was that I had to learn the importance of maintaining an excellent credit rating through experience. After being able to easily obtain credit, I lost hundreds of thousands of dollars in property deals and other ventures.
Now, I have re-established my credit rating to a first-class level and have no intention of ever jeopardizing it again. This is the method I used to rebuild my credit and achieve financial security.
Starting with no money and debt-ridden assets, it can seem impossible to establish a credit rating. In fact, without any cash, it is virtually impossible. You need at least some amount of money to start, and in my case, I needed about $1,317.
I was used to a wealthy lifestyle but eventually found myself broke and close to bankruptcy. To start my credit-building plan, I sold all my personal possessions, raised $475 from car boot sales and local ads, and used $350 to open a high-interest savings account at a bank. I then took a loan of $475 with my savings as collateral and used it to open another high-interest savings account at a different bank. I repeated this process at six different banks, using the loan repayments to cover each loan.
After a couple of months of making loan repayments, I used my remaining capital to pay off the final loan, giving me access to the savings I had at that bank. I then applied for a $635 loan secured on my home at the first bank and was approved. In just six months, I was able to rebuild my credit rating to a first-class level, even with a history of failed business ventures and lost money.
If you have a clean credit history, you can establish a good credit rating in as little as two months. Once you have a credit rating with several banks, you can apply for their credit cards. You may start with a low limit, but by using the credit cards and repaying the full amount each month, you can quickly increase your credit limit. I used this method with store cards as well and now have a $6,760 limit on most credit and store cards.
It’s important to remember that once you have a good credit rating, it’s crucial to maintain it. In the early days, I became careless with borrowed money because of my easy access to credit. But now, I will never let my credit rating be ruined again. Always be cautious when borrowing money for wealth-generating programs, and make sure to do your research before making any big investments.