Episode Transcript
[00:00:00] Speaker A: It's Take Control Tuesday and that means I have Manta Moussa on the phone with me. And Manta, it looks like we're in for a rocky road when it comes down to finances. As a matter of fact, today we're going to talk about some smart pre recession credit moves.
[00:00:19] Speaker B: Yeah. One of the things you have to understand as we're moving toward times of, let's say, restricted growth and higher prices, that credit can be part of your safety net.
[00:00:33] Speaker A: Okay?
[00:00:33] Speaker B: Now your safety net is something that's there if you have to use it. Randy, I am not talking about using your credit to support your lifestyle. I'm talking about using your credit to prevent catastrophe in your life and you need to hold it in reserve. So what you want to do is expand your credit. Now the worst time to ask for credit is when you need it. So if your credit score is in a good place, now's a good time to request credit limit increases from your current credit cards. This is the easiest way to go. Just ask them, are you eligible for an increase? Also ask them whether or not it's a hard inquiry.
[00:01:19] Speaker A: Right.
[00:01:19] Speaker B: For that increase. If it's not, go ahead and find out how much more credit line you're eligible for.
[00:01:27] Speaker A: Okay.
[00:01:27] Speaker B: That's what we're looking for, is to expand our credit lines, not our debt. Now the other thing is you can look for new credit cards. Now that's another way to do it. Now this will be a hard inquiry, but once again, you can use those strategically. But look for credit cards that complement your lifestyle with travel, cash back or some other kind of reward or loyalty program that you like. The main thing about this, Randy, with hard times coming with projected reduced incomes, this is a way for you to enjoy to have some niceties without any guilt. Yeah, you can have enough miles to take a nice trip that you would never take out of your funds. Because of things, you're a little tighter and slower.
[00:02:22] Speaker A: Exactly.
[00:02:23] Speaker B: So it's a way of coping. You know, once again, in order to do that now you got to maximize those credit card benefits. Those credit card benefits can be worth real money. As I told you in a previous broadcast, I turn my cash back points into $200 worth of Instacart gift cards.
[00:02:45] Speaker A: Yes.
[00:02:45] Speaker B: Now the other thing you want to do is search for credit cards that have the most liberal cash advance policies. Once again, we're talking emergency situations where you might need to get your hands on some cash. Then the more liberal the cash advance policies are, the better. The final thing people should consider are Personal lines of credit. This is a form of lending. It's become more popular, especially toward the middle class. But a personal line of credit is where they will give you access to money based just on your signature. A limitation with credit cards is you can only use them where they take them. Yeah, with a line of credit, you can get the money and do whatever it is you need to do. Be careful. Once again, shop the terms. Understand what you're signing up for. And once again, let me explain this as the final thing. We're talking about increasing your access to credit. We are not talking about you increasing your debt.
[00:03:57] Speaker A: Right. Key words for sure.
[00:03:59] Speaker B: Just because you have more credit, don't go out and get more debt. If recession is coming, your lifestyle has got to change. Don't postpone that by charging it on credit cards.
[00:04:12] Speaker A: It'll make it worse for sure.
[00:04:14] Speaker B: Absolutely.
[00:04:15] Speaker A: Well, that is all great tips for us during this time time. And make sure that you go to take controltuesday.com to get more information. You can also share that like that so that others can take those tips and use them as well. Manta, as always, thank you.
[00:04:32] Speaker B: Thank you.
