Page 46 - Winning The Credit Game Bundle (CK Patrick)

34 THE CREDIT GAME

CreditBuilderCard.com does not run this kind of background check,
so you will not lose those points by applying to open an account with
them. In fact, none of the resources listed in this chapter run such
inquiries, which means you can open three lines of credit to start “win-
ning” three games every single month fast without losing any points to
inquiries, the way you would if you applied for a normal commercial
credit card or loan.
Now, CreditBuilderCard.com does report to major credit bureaus
like any other credit card. That means that, just like RentReporter.com,
your credit score may actually be harmed if you make purchases with
your Credit Builder card and then don’t pay your bill for this credit
card on time.
The good news is, you choose how much you spend on this card
and how much you subsequently have to pay back. I recommend
simply charging a small expense like a meal or a cup of coffee on your
Credit Builder card once a month or once every couple of months. This
ensures that you will be able to win your credit game every single
month by successfully making a payment for the full amount you owe.
One useful thing to know is that, when it comes to credit cards,
credit bureaus don’t care if you are paying back $25 or $500—both
count as an equal repayment win, assuming that you have met the
minimum payment requirement and stayed below 10% of your total
credit card limit and you actually do pay the full amount off on time.
Because large and small payments both count as equal victories in
the eyes of credit bureaus, it pays to use your credit card for just a tiny
monthly purchase until you have built up the kind of credit score that
allows you to have a high credit limit and an excellent interest rate if
you don’t pay off your full balance each month.
This next option is similar to CreditCardBuilder.com in its benefits
for your credit score. It comes with the added cost of a fixed monthly
payment, but also the added benefit that you get all the money you
pay this lender back at the end of your “loan”!