How to Leverage Credit to Generate Wealth
Times are changing, and in the last few decades, mega-success stories based on the rags to riches trend seems to all be based on the tech industry or the boom in online consumerism. In past times, it was all about new inventions and building your entrepreneurial empires to generate wealth.
However, the opportunity to generate wealth can be achieved by “average joe’s” by merely understanding ways to leverage a good credit score. It may surprise you to hear, but you can save thousands of dollars throughout a loan by only having good credit. Investing these savings could lead you on the path to making some serious money.
The first step is to improve and maintain a good credit score.
What constitutes a good credit score? This score will fall in the range of 700 or above, and many advantages come with it. By establishing a solid credit rating, you can get approval for more substantial loans to use for investments. Other benefits also include loans to be approved more quickly and with lower interest rates. Personally, your credit records will inspire confidence and reliability in your character, which will be beneficial for business relationships.
You’ve got a good credit score, now what?
There are many ways on how to generate wealth by leveraging your credit. Here are some tried and tested ideas:
- Become your own boss, and start a business. If you’ve always had an idea that could grow into something more or something that you’ve ever been passionate about, it might be time to plant those seeds and see what comes to fruition. Whether you branch out on your own or startup with a business partner, be sure to put in the research and execute a detailed plan of action.
- Grow your business with the aid of venture capitalists. What happens here is the opportunity for a massive injection of funds to help expand your business. If your company is open to exchange equity for funding, then this could be an option to explore. However, please take into consideration that venture capital firms will be looking for a high rate of return on their investment. Be careful in the terms and conditions and ensure that all expectations are written in black and white.
- Become a homeowner, or take it a step further and delve into property investment. When you buy a home, you are gaining an asset, in which the value will appreciate over time. It not only improves your credit score but will provide a tax write-off as well. Investment properties, on the other hand, can act as a cash cow that opens up more opportunities to grow your empire.