Page 53 - Winning The Credit Game Bundle (CK Patrick)

WINNING AT CREDIT MIX 41

shows lenders that you can be trusted with flexibility and freedom in
your borrowing power. It shows that you will not borrow more than
you can afford if given a high credit limit, and that if for some reason
you have to charge a major purchase on a credit card you will reliably
pay it back.
For you as a borrower, it’s likely that you will benefit from having
access to both long-term loans with fixed installment payments and
flexible credit lines from which you can borrow a little or a lot each
month depending on your needs. Flexible credit lines like credit cards
usually don’t have high enough limits to be used to buy a house or a
new car, but they can be used to pay a few months’ expenses in case of
emergency or one-time business expenses.
Since you will benefit from access to the best terms and the highest
limits on both installment and revolving types of credit accounts, it
makes sense to demonstrate both types of skills to credit bureaus and
future lenders.
You may recognize the credit card from Credit Builder in the
previous chapter as a type of revolving account. This is one of several
reasons I recommend that those who are able take advantage of all
three resources in that chapter. By doing so, you will not only be
winning three different credit games each month; you will be demon-
strating both the skills needed to successfully obtain big home and
business loans, and low-interest, high-limit credit cards from regular
commercial lenders in the future.

OPEN ACCOUNTS

An open credit account is a credit account which allows for flexible
spending like a credit card, but which requires the balance to be paid
in full each month.
This type of credit line can be considered an expert-level display of
skills: since you are not allowed to defer the balance you charge to
future months under any circumstances, it really shows your ability to
pay things back in a timely fashion.
I have not included suggestions for open account types here