5 thoughts on “Insights from Gnosis: Financial Wealth & Credit Management – Questions & Answers #3

  1. Many people turn to the easiest credit cards to qualify for with no previous credit score then often find themselves living beyond their means. For individuals with a lack of past financial wealth management education falling victim to credit cards can happen very quickly. I agree with the article in terms of having money in a C.D. before opening that new line of credit to build a credit score. Also, making sure that your credit card line does not surpass what you have within that C.D. allows for accountability when starting. From my experience and seeing loved ones struggle with credit cards I’ve come to understand that many larger credit card companies take advantage of individuals with no experience in financial wealth management by giving them such a large credit line. In conclusion, I believe that during this time of crisis in the world it is the most important time to be playing it extremely safe financially. Many people have began defaulting on their past credit cards due to lay offs and economic issues. I encourage anyone wanting to start building a credit score by opening a new credit card to not do it unless they already have the cash to back it up.

  2. I think going the route of building wealth through proper financial wealth management is the way to go. First of many steps is building a good credit score. Too many people end up in debt by abusing credit cards because they were not taught how to properly afford it. You gave a solid insight on how to start building it, starting with $500. The repetitive use of this number allows for a consistency when building on your wealth. For example, setting aside $500 for emergencies if you go over the limit of living within your means. Or, it would be helpful during an economic downfall (..a pandemic). The most useful advice would be that every time the card limit increases, you must add the same increase to your reserve savings account. This allows for discipline (knowing your limit!) and success in the future. By having the extra cash in case you go over, you won’t have to worry about decreasing your score with the addition of a high interest rate on your past-due balances. As for the loss in cash value scare at the end, I am curious to learn more about that possibility. Overall, this article helps defer from the idea of getting a credit card just to have another way to spend money, but teaches how it is an open door for the opportunity of success.

  3. Credit scores and Credit Card management are essential parts of Financial wealth management. I think that the formula created by Gnosis is the safest and most efficient way to build your credit score while using a Credit Card. $500 on a certificate of deposit allows you to enjoy a cash cushion to fall back on if you encounter financial hardship. The suggestion of manually raising your credit limit by continually depositing $500 seems is ingenious. Also, placing another $500 in a reserve savings account means that all your bases are covered, allowing you to focus on building your credit score as opposed to juggling bills. Selecting credit card perks is also an important issue, and the cashback rewards option is one of the best perks to have. It is also essential to choose a credit card with the lowest possible interest rates, so research is vital. I learned a lot from this post.

  4. Getting a credit card early in your credit journey is a smart move to make. You can start to use it to make purchase on everyday life items that you would normally pay with cash/debit card with. The important thing to do is to ensure you do stay within your means and not abuse it. That is often the biggest 1st mistake for new credit card owners. If you can stay within your means it becomes much easier to build that credit rating. Secondly there are many options out there for new applicants. Although the post mentions some local credit union or bank some of the larger lenders have good options too. As a new credit card owner I would recommend looking for ones with zero annual fee. You are trying to build your credit, you don’t want to have to pay a premium to do so. As for perks, I would agree to find with that fits your lifestyle. Typically I go for ones that are cash back on as much as possible. Since sometimes you never know what you will need to buy, if you know you will get some cash back that is a win. For travel perks, I would only recommend that if you travel very frequently or else the rewards may not come to fruition the way you think they will. In closing, I think looking for lowest APR, no annual fee and one with reward perks that fit your lifestyle are the way to go regardless of which bank/organization you choose. Good luck with your credit journey!

    1. Hi Dylan,

      You completely missed the point of building wealth through proper financial wealth management. Yes, anyone can get a credit card anywhere, and the big guys do have a tendency to offer better deals in terms of rewards and interest percentage rates (at least up front), but the whole point of the post is building wealth.

      You like to ramble on pointlessly from your point of view that can be found on any lackey, sycophantic website out there for those just looking for a quick credit card fix.

      This post was about establishing and building financial wealth (hence the title) upfront to get a bare minimum credit card, and then actually building wealth from that credit card to help further build wealth and one’s credit score in general. All while living within your means.

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