Credit Card Secrets and Your Credit

There are a few secrets when it comes to Credit Cards. Now while some issues are secrets for some and common knowledge for others, I should at least first cover some of the basics. I hope it is only a secret to very few people that credit cards charge a terribly high interest rate on any overdue payments as well as any cash advances. These high interest charges are the worst most have ever seen. Because of this, you should always do your best to pay off any credit cards as soon as possible or you will end up owing considerably more than you ever thought you could.

The minimum payment or even paying just over this amount will end up stinging you badly in the longer term. This being said, be aware of it and don’t overlook it. However there are a few less common tricks that can be done in order to obtain more credit while not necessarily advised.

One method is what I like to call the blitz method. This is done by going to every bank and credit institution where you can apply for a Visa or Mastercard. Then obtain an application for each and every variety of these cards you can through the different institutions. Then depending on where in the country you mail them into, you try to time it so that all the applications reach their intended targets on the same day.

For example, if you live on the west coast, you would mail the ones going to the east coast first, wait a day, mail the ones in the mid west, then the next day mail the ones to the middle of the country and lastly to the west coast. While it may not work perfectly, there is a high chance that many applications will be received on the same day and you could end up receiving as an example $12,000 in credit instead of $1000.

There is also a trick that can be done with a secure credit card. A secure credit card is one where there is money put up front so that any money that is spent on the card has already been deposited onto it. This trick will end up showing that someone is more credit worthy than they really are and as a result a bank would end up providing more credit to you. Here is how you do it.

You obtain a secure credit card. To begin with lets say you put $500 onto it. This is your credit limit for this card. Then you withdraw $500 from the card in cash and put it into the same bank account that you used as collateral to obtain this card. You now would have $1000 in your bank account. The bank will report this to the credit bureau which in turn will raise your credit limit on your card to $1000. You then keep doing this $500 withdrawal from your card and putting it into your bank account.

Do this until your monthly payments have gone as high as you want and you could reach for example a $6000 credit limit. However it will be considered charged up because you will owe this still. But what a creditor will see is that not everyone is offered a $6000 or $10,000 or whatever you managed to raise your credit card limit to. Since you also have make payments each month on the amount owing you may very well gain favor in a creditors eyes.