20+ Credit Cards and 800+ Credit Score? Is It Possible?

The Secrets of My Credit Score

First Published Date: November 3, 2016

The people I know and the employees at my banks almost have a fit when I tell them I have around 20 credit cards and a very high credit score, like above 800. For most people, more credit cards are associated with more debt and a lower credit score. More debt (for some people) I can agree with, but lower credit score? I could not disagree more.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

The general misconception about having more credit cards is that they lower your credit score. This assumption could not have been possibly further dispersed from the truth. Having a lot of credit cards is OK, as long you are paying your bills on time and keeping your Utilization Ration below 30 percent. However, 30 percent ratio is considered the highest limit you can go to keep a good credit score. Lower is better. For example, FICO and Experian data show that those who have the best credit score, such as 800 or higher, utilize only 7 to 8 percent of their credit. Your utilization ratio represents what percentage of your available credit you are using and makes up 30 percent of your credit score.

Now, how about having too many credit cards? Having too many credit cards and maintaining them properly actually gives you an advantage to achieve a higher credit score. It’s shooting up your available credit limit (meaning making your utilization ratio lower) and showing positive on your credit report because lenders view you as someone who can be trusted with credit (because you are maintaining them positively by not racking up balances and keeping them active paying on time). After all, payment history makes up 35 percent of your credit score. So when you score perfect both on payment history (35%) and utilization ratio (30%), you already have an advantage towards scoring higher on the overall credit score. The other 15 percent (length of credit), 10 percent (types of credit), and 10 percent (inquiries) will easily follow.

One of the maximum credit card holders with an almost perfect score recorded by Guinness World Record was Walter Cavanagh of California, who has 1497 credit cards and a staggering $1.7 million line of credit. Other examples: The Points Guy Brian Kelly has 30 credit cards and 805 credit score. Ben Schlappig of One Mile At A Time has 20+ credit cards and 837 credit score.

The point is, there is nothing wrong with having too many credit cards as long as you know how to manage money and credit cards. However, I must warn that it requires a lot of discipline and work and this is not for everyone. You have to be extremely detail-oriented and extremely excellent in handling credit cards and money. If you are one payment late your credit score will take a nosedive.

Everyone has different purposes of achieving a higher credit score. My purpose is the satisfaction that comes from a higher score and also to utilize the various perks that come from having lots of different credit cards. I will talk about these more in my next book, Credit Card Hacks: What Credit Card Companies Don’t Want You to Know. Stay tuned.

The Best and Worst Cities to Live in the World

Canadian Cities Are Among the Top Ten

First Published Date: September 5, 2016

The Economic Intelligence Unit recently released its report called Global Livability Ranking. This report assesses the best and worst cities to live across the globe. Cities were ranked on categories such as stability, healthcare, education, infrastructure, culture and environment based on 30 factors. However, cost of living was excluded.

The top ten cities are:

1. Melbourne, Australia

2. Vienna, Austria

3. Vancouver, Canada

4. Toronto, Canada

5. Adelaide, Australia

6. Calgary, Canada

7. Perth, Australia

8. Auckland, New Zealand

9. Helsinki, Finland

10. Hamburg, Germany

Six of the top ten cities are in Canada and Australia.

The most improved cities are Tehran in Iran, Dubai in United Arab Emirates, and Harare in Zimbabwe.

Some of the biggest declined cities are Damascus in Syria and Kiev in the Ukraine

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Ranked at the bottom, the worst cities to live are Damascus, Syria, followed by Tripoli, Libya, Lagos in Nigeria, Dhaka in Bangladesh, and Port Moresby, Papua New Guinea.

One important thing to point out is that Canada is the only country in North America that is on the top ten of the report. However, this is not the only report that puts Canada in the top. There are several other reports, for example, Mercer Quality of Living, UN Human Development Index, World Economic Forum are just only a few to mention that consistently put Canada at the top, beating any other country in North America and in line with a few other top-ranking countries the world.

Real Estate In Chile

Chile Real Estate

First Published Date: November 6, 2016

Is it possible to buy property in a South American country where foreigners are protected by the same rights as citizens? Where the police force is known for its honesty and does not accept bribes? A country with the highest GDP per capita in that region, a member of the Organization for Economic Cooperation and Development (OECD), A+ Sovereign Credit Rating, and one of the lowest risk countries in the world for foreign investments? If you are looking for such a country for real estate investments in South America, look no further than Chile.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

In order to buy property in Chile, you don’t need to be a resident or even visit the country. Chile has the most developed real estate market in South America. The property market has remained fairly stable during the global economic crisis and has shown growth momentum. Although Chile is the world’s longest and narrowest country, stretching more than 4000 kilometers, the population and real estate volumes concentrate in the center region known as The Central Valley – where the capital, Santiago, is located. Thirty percent of the population lives in Santiago and it is the most visited spot by tourists. Also, Frutillar and Puerto Varas have become the fastest growing real estate markets in Chile and southern Chile.

Like anywhere else, you should be aware of some rules and regulations when buying property in Chile. Real estate agents are not regulated in Chile and it is advisable to hire a lawyer to perform real estate transactions in Chile. A title search must be conducted by a qualified attorney. Based on the title search, have the attorney draft a buy/sell agreement. Once completed, this agreement has to be signed in front of a CHILEAN Notary Public and then property has to be registered with the regional registry. You will also need a Chilean taxpayer ID number (RUT) to complete the whole process.

There are many investment or legal firms available to make your real estate expedition in Chile a breeze. Always do your research to find a firm that is reputable and meets your needs.

How Long It Takes to Double Your Money

The Rule of 72

First Published Date: September 8, 2016

Have you ever wondered how long it takes to double your money? There is a simple formula to calculate how many years you will need to double your money.

The simple formula is called The Rule of 72. This rule only works when you compound your interest annually and do not take out money from your account. To find out how many years you need, divide 72 by your interest rate. Here is an example: Assume your interest rate is 12%, you will double your money in 6 years (72/12=6).

Author/Copyright: Ahmed Dawn www.adawnjournal.com

If you add more money monthly to your initial investment, your time to double investment will be less. Investment is a discipline and don’t expect to double your money overnight. Start investing at an early age, keep adding more money on a monthly basis, and stick to it for the long run – you will achieve your financial goals.

Which Credit Cards Give the Most Rewards Points or Cash Back?

How to Get the Most Credit Cards Rewards Points

First Published Date: November 11, 2016

Today, I will talk about maximum rewards points offered by annual fee credit cards in Canada. Keep in mind that I am not looking at introductory bonus points, insurance benefits or other perks offered by these cards. The cards that offer the most rewards may not be the best credit cards when it comes to extra benefits. For example, the American Express Gold Rewards Credit Card is one of the best cards in terms of rewards, but in terms of benefits it’s one of the worst cards. Why? Read my Amex Gold Review here.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Best Proprietary Points Credit Card – The Scotia Bank American Express Gold Card offers the most proprietary rewards points (4 points per dollar) on 4 categories (grocery, gas, entertainment, restaurants). However, it offers a poor 1 point per dollar on all other spending.

There are three other credit cards that offer a flat 2 points per dollar on all spending across the board. These cards are: BMO World Elite MasterCard, MBNA Rewards World Elite MasterCard, and Capital One Aspire Travel World Elite MasterCard.

Best Airline Loyalty Points Credit Card – Both the TD Aeroplan Visa Infinite and the CIBC Aerogold Visa Infinite offer 1.5 miles on 4 categories (grocery, gas, pharmacy, and at AirCanada.com purchases excluding vacation). However, these cards offer a poor 1 mile per dollar on all other spending.

Best Hotel Loyalty Points Credit Card – The Starwood Preferred Guest (SPG) American Express Credit Card offers 1 Starpoint per dollar across the board on all categories. Although there are other hotel credit cards that offer more points per dollar, Starpoint is the most valuable hotel currency on the market (currently 1 Starpoint valued at 2.5 cents or more), and for that reason the SPG Amex credit card provides most value for every dollar spent.

Best Cash Back Credit Card – The Scotia Momentum Visa Infinite Card offers the most cash back return (4 percent on gas + grocery and 2 percent on pharmacy + recurring bills). However, it offers a poor 1 percent on all other spending.

The BMO CashBack World Elite MasterCard offers a flat 1.75 percent return on all spending across the board. Another no fee credit card worth mentioning is Tangerine Money-Back Credit Card. It offers 2 percent cash back in 2 categories of your choice and 1 percent on everything else.

Best Hybrid Points Credit Card – The American Express Gold Rewards Credit Card offers 2 points on gas, grocery, drugstore, and travel purchases and 1 point on everything else. These points can be converted to airline (Aeroplan, Avios, etc.) or hotel points (Hilton, SPG, etc.) or can be used as statement credit. The 2 points per dollar earning opportunity makes this card the highest Aeroplan (or other airline points) earner credit card in Canada.

Bonus Credit Card Points Tip – Although The Scotia Bank American Express Gold Card and MBNA World Elite Rewards MasterCard are proprietary points travel credit cards, its ability to redeem points for cash back (MBNA) and statement credit on any purchases (Scotia) make these cash back credit cards as well.

Last Word – Don’t pick any credit cards based on only rewards points they offer. There are many other elements to it, such as what types of insurance coverage provided, who is the insurance provider, if any concierge service is available, if the card provides anniversary bonus, and so on.

A Dawn Journal has lots of articles on credit card tips and unlike many other sites, I do not receive money, participate in any affiliate program, or promote any credit cards. So my opinions are honest and unbiased. Always do your research and make informed decisions before making your credit card selections.