Twitter IPO

Twitter IPO Date: 15 November


For those of you who are interested in the markets will not be unaware of the impending Twitter IPO. The IPO date has now (supposedly) been leaked at 15th November at a price range of between $17-$20. As such, I thought it was time to share my analysis and advice as to whether you should try to invest in the Twitter IPO.

Twitter Problems


The first thing to mention is that Twitter has not made a profit since inception. It has lost money every year in the six years  since it's inception.

Secondly, Twitter has 215 million users and yet it struggles to convert all those users into profits. It isn't clear whether the potential smartphone market of 1.2 billion users will also become Twitter users, providing a natural revenue boost. Making serious profits from Social Media advertising is a fairly new and untested market with mammoth players such as Google, Facebook, and Linked'In as competitors.

Twitter IPO Pros


Ignoring the lack of profit for the time being, it should be noted that the revenue growth numbers are impressive. In 2010, the Company was making $25 million, in 2011, $100 million, and by 2012, $350 million. This year the Company looks set to double that again to $700 million. These are impressive growth figures and with news out yesterday that Facebook was able to grow its revenues in the current year by 60%, only increases the potential for Twitter to follow suit, potentially increasing its revenues to over $1 billion by next year.

It is very difficult to value a company that makes no profit. As such, one of the simpler valuation techniques is to look to other similar Companies that are already traded in the market place. If we look at Facebook, the Company is valued at about $100 billion. Twitter is currently being valued at the higher end, at $12 billion, almost one tenth of the value of Facebook. Furthermore, Twitter is being valued at about one third of the value of Linked'In. Linked'In is currently valued at about 150 times revenue, Facebook at a rough 50 times revenue. At the current potential valuation, Twitter will be worth about 17 times revenues. This would appear cheap relative to other Social Media Companies.

Twitter also seems to be better embedded within it's own niche market. It is widely used by celebrities and the wider media alike, rather than other Social Media Companies which seem to depend on usership of regular people. Twitter, on the other hand should be able to establish itself a little more firmly if it associates itself with established media arms.

Twitter Investment


Should you invest in Twitter? If you only invest for dividends, forget it in the short term. Whilst the Company generates cash, it's losses will prevent it from paying any dividends for the next few years. If you are looking for an income from your shares then Twitter should e avoided.

If you are able to find a broker who can get you the shares upon IPO inception then I think the shares are definitely worth a place in a portfolio. With all the hype, it should definitely increase in value over the next year from its origins of $12 billion. 

However, if you are only able to purchase the shares after they enter the market and are already being traded, I would only buy if the price falls within the first few weeks. If the price rises then DON'T try to ride a wave up, you will only drown. If the price rises then you've probably missed the opportunity to make money.

Twitter - My Investment Plan


So, I'm currently in the process of trying to find a broker who will be able to deal in the Twitter IPO. Failing that I will aim to have about £4,000 ready in a stocks and shares trading account ready to buy if the price falls below it's IPO value.

Good luck. Feel free to share your thoughts below.


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to become Rich: Starting a family

If this is the first article that you're reading in the How to become Rich series then I encourage you to go back and read The Basics first.

Before starting this article I would like to recognise that not everyone wants to start a family. However this article is not only covering those who wish to have children and how to financially prepare for  their arrival and upbringing but is also relevant to people who wish to marry or cohabit. It aims to look at how cooperation between people and families can have large financial benefits. For those who are not interested in sharing a life with other people then I'm sure you will find some other articles in the series more relevant.

Cohabiting/ marriage

Some couples like to have a joint bank account. Some couples prefer to keep their finances separate. I am unsure as to what the optimum solution is (readers, feel free to express your opinions in the comments box below). What is clear is that whatever the set-up, make sure that the two of you are open and honest about your finances. The reason for this is threefold:

  1. It demonstrates trust in the relationship and if you can't trust your partner then you should probably question the point of the relationship
  2. It allows you to make large financial decisions such as the purchase of a property
  3. You may be able to set up your finances such as tax more efficiently so that together you both benefit

Housing


Okay so here's the biggie! One obvious strategy for pairing up with someone else is beneficial in terms of raising a deposit and paying the monthly mortgage payments. 

Here's one idea on your first property. Instead of opting for the biggest house you can afford, or only putting a 10% deposit down, or extending the mortgage for as long as possible, why not try and be a little counter intuitive. Try to put down the biggest deposit possible. This may mean that you will have to purchase a smaller house/ flat than originally intended. This level of commitment to the purchase as well as equity held relative to the bank should result in lower mortgage interest payments. Then try to pay off the mortgage as quickly as possible . This will mean that you will end up paying the smallest amount of interest possible over the life if the mortgage. After that time you will be putting more money into your own pocket instead of in someone else's.  If possible you also want to be saving for your next deposit in the meantime. Wouldn't it be incredible if you could put a deposit down on a new house and still own an investment property (your old house) to help you to pay the mortgage!

I know what you're thinking. Many of you will be wondering how you're supposed to save for a deposit and pay off a mortgage at the same time. Unfortunately this isn't easy. It will require a lot of discipline and sacrifice. As always, your pension should come out of your income before you even think about receiving it. Then automate your savings to come out of your net of tax income at the start if each month. Following that, pay your mortgage payment and bills. The rest is for spending however you like. Bear in mind that your mortgage payments will be pretty hefty if you're looking to pay it off quickly (5-15 years), however the long run benefits could be invaluable.

ISAs and group theory


It's simple: once you've invested in your pension (watch out for future articles to figure out how much you should be putting in your pension) any additional savings (and there certainly should be some!) should go into an ISA tax wrapper to protect it from tax. 

Married couples are able to share the ISA allowance. So if one partner has fully utilized their ISA for the year of £11,580, and their spouse has only used £5,000 of their own allowance, then the first person is allowed to make an additional ISA contribution of £6,580. The is possible by transferring savings from one partner to utilize their unused allowance.

Many people believe that they should only utilize their cash ISA allowance of £5,640, missing out on the opportunity to protect an additional £5,640 from taxation. Once you have saved up 6 months worth of salary (net of tax), have a sufficient float of about £1,500 in your current account and you've saved up for your holiday and any upcoming large payments, then there really is little cause for holding a lot of cash. Whilst cash is fairly risk free, no one ever got rich holding cash. You need to make your money work for you and that means making investments in bonds, companies and/or property. Since  you will be putting in money that you do not need for the next few years the risk associated with investments falls as you have time on your side to ride out any shocks. So make sure you try to utilize all of your ISA allowance!

A while ago, I suggested a slightly different approach to investments - that you should join together with other family members and other people that you trust and invest together, reinvesting profits. Decision making will be improved through the pressure to explain your investment idea to other members of the investment group as well as risk being spread between several people. Having more money to invest will also give you access to funds and stocks that you may not otherwise have been able to purchase as there were "minimum investment limits". Furthermore, you share the cost of transactions between yourselves and gain economies of scale. For example, a broker may charge £20 per transaction. For a person investing £1,000 that means that the transaction costs are 2%. However, if 10 of you got together to make the investment, each with £1,000, making a total investment of £10,000 then the transaction cost of £20 represents only 0.2%, with each individual paying £2 of the transaction fee rather than £20.

Children and their preparation


Formal Education, love, care and providing a safe environment are considered key to a child's upbringing. It is thought that with these tools will lead to children having a successful and prosperous life. Many parents leave out the financial education. This is a disservice to children. Whilst they may provide for their children in every way except financial education, they actually damage their children's chances to become a success.

So what do I suggest:

  1. Teach good saving habits by encouraging them to save a portion of their pocket money by matching their savings contribution. Likewise could go for the money they may collect at birthdays and Christmases. Make sure that you take them to open a bank account early in their lives.
  2. Encourage them to start a small business in their summer holidays or get a part time job for a couple of days a week. 
  3. Let your children pay for certain things such as mobile phone contracts and spending on entertainment. This should teach them the value of money.
  4. Explain about debt and encourage them to avoid most forms of debt

Obviously you want to make sure that your children will grow up, able to fully take care of their own finances and this is why financial education is important. Many of you will want to give your children a head start in life. For that I encourage you to make sure that they utilize their ISAs. You could even look after their future and start paying into a pension pot for them. Remember that children could have up to 18 years before they may leave home and have to fend for themselves. Almost two decades of investing before funds may be required in cash means that you can afford to place your children's future money in fairly risky investments for a greater return.


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to become Rich: Started Work

If this is the first article that you're reading in the How to become Rich series then I encourage you to go back and read The Basics first.

Starting Work: The Situation


So after University/ Education comes the world of work. For many, this is the start of the rest of their lives. Personally, I do no intend to work for the rest of my adult life . My ideal goal is to be retired in my 50s. However, I am well aware that to achieve this goal I am going to have to work hard today!

For many, starting work usually means the first step on a career path. However, I would also point out that many of my peers, myself included, have not begun the working world in their dream job. This may be because times are hard and we cannot afford to be fussy about our jobs at this stage in our lives. Alternatively, your dream job may require you to have skills and experience in areas that are less enjoyable, as in my case.

Bank Accounts


Quite simply you need a current account (ideally without annual charges). You should have all your income from your job paid into that account and set up all direct debits out of that account. This current account is your main account from where most of your transactions take place.

Attach a cashback/rewards credit card to this account, set up a direct debit to pay off the bill in full each month and aim to spend on your credit card rather than on your debit card. Don't go over your credit limit! Make a note of every transaction that you make in the card and update a spreadsheet every week with your current credit card spending and compare this your bank account balance. Don't spend more than you have! If you do then you're either ignorant or stupid. Of course we all make mistakes, but we also learn from mistakes made by others so we don;t have to. I repeat, do not spend more than you have, otherwise you will accrue "bad" debt and you can write off any hopes of becoming a multimillionaire.


Set up your standing order to save 10% of your after tax income. To calculate this you multiply 0.1 by your net income (you can ask your HR what this monthly amount is). You should call up your bank (or you can do this online or in branch), ask them to transfer the savings monthly on the day after your income is paid into your account. 

As long as you keep a watchful eye on your spending in comparison to your disposable income (after tax and savings) you should find that your spending adjusts accordingly. 

If you've managed to save 10% over a few months then why not try to increase the percentage to 15%? Alternatively you could increase the percentage every time you get a pay increase. This way you will notice the percentage increase in savings less.

Pension


Sign up and invest in your Company pension scheme as soon as you can. The money comes out of your paycheck before it even hits your bank account. As such you won't even notice that you won't have it, and will be simultaneously looking after your future.

You must invest in a pension before doing anything else as there are unmissable tax benefits as well as the possibility that the Company you work for may match your contribution. All this is free money that you could be missing out on.


As I have advocated before, split your savings, 50% in a mix of cash and bonds and the other 50% in investments. The reason for this is to build up a pool of emergency cash as insurance to something bad happening, such as losing your job. Build up 6 months worth of earnings in a cash pile and put the rest of your "cash and bonds" 50% portion of your savings in bonds.

However, you don't just want cash earning little in the way of interest. Instead, you want your money to work for you I.e you want your money to produce money! As such you need to invest in a mixture of bonds and shares. For those that are clueless in the methods of choosing companies to invest in I suggest an index tracker such as FTSE All-Share tracker to give you broad, diversified coverage of the stockmarket. The reason why I recommend investing in stocks and bonds is because they tend not to correlate with each other. As one goes down the other tends to go up.

...And don't forget to utilize your ISAs!!!

Job - "The 9 to 5ers"


Having a job and being an employee is not the way to become rich. Don't get me wrong, it helps you along the way, but to become rich you need to be an investor and a businessman. Of course there are those in jobs such as investment banking who will disprove my earlier statement. However, the above is true for most people.

We've already covered investing in the "savings" section. Many will complain that they don't have time to start creating a business. I would argue that in the age of the Internet there is no excuse for not creating a business in the evenings and at weekends. We are the "9 till 5" generation ( of course we work longer hours than that - it's just an expression!) and as such we come home from our day jobs and work on our business and moneymaking ideas. I currently this we sit as well as work on developing a business idea. You can and should do the same. You're not going to become a multimillionaire by being an employee and putting money in someone else's pockets! 

Housing


Okay, so the chances are that you don't live with your parents rent free, don't have rich generous parents, have not recently won the lottery and have not just inherited a lot of money. As such you probably cannot afford to buy a property, nor even put a deposit down on one. So it is to the rental market that many first time buyers should look.

When hunting for a rental property, many guess what amount of rent they can afford to pay, have a look at a few they like, and pick one based on its location and aesthetics.

This is not the best way to determine what property you should live in. The chances are that rent will be your biggest outgoings for the first few years and as such you want to ensure that you try and minimise the rent that you pay as much as possible. The strategy is therefore to estimate how much you think you will need to pay for everything else including bills and entertainment and then, working backwards you can figure out what level of rent you can afford to pay monthly. Only then should you go out and look for a property, based on the monthly rent you can afford.


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to become Rich: Student

If this is the first article that you're reading in the How to become Rich series then I encourage you to go back and read The Basics first.

Student Financials

A student is currently investing in themselves. By educating themselves they are trying to raise their future annual earnings, as on average, graduates earn more than school leavers (although there have been plenty of millionaires who did not go to school). As such, a student is delaying earnings now so that they can earn much greater amounts in the future (and also so that they can have a great time drinking at university).

Most students nowadays get a loan from the Government to help cover their living costs. The maintenance loan for living can work out at about £9,000 per year.

Students also take out a loan to cover the cost of education. Whilst there are some caveats to the loan before you have to pay it back, (eg you will pay back 9% of any income over £21,000 per year) the loan generally means that students will start their working life with debt. There are several strategies for dealing with that debt which we will come on to.

Building Habits

Attending a University is usually the first time a person has become independent. As such it is an extremely important time to start developing good financial habits that could affect how you run your finances in the future.

As mentioned in How to become Rich: The Basics you should always be saving. Even though money is in short supply at this stage if life, with much of it coming from loans, savings, part time jobs or the Bank of Mum and Dad, saving, as always, should be a priority.

Set up a standing order from your current account to your savings account on the 1st if every month. Even if it's just £20, it's better than nothing! Furthermore, each term you could try to increase it by £10. The point is to save something! You're building up good habits for the future.

Another good habit to get into is to start to learn how to budget. There are two ways of doing this. One traditional method is to allocate your maintenance loan/ other forms of financing to various pots each month. For example, you make an estimation for food for the month and mentally set that money aside. You could also set aside funds for going out, entertainment, travel etc. Furthermore, you implement your budgeting plan by being disciplined to stick to your budget, spending only what was allocated in the various pots. Alternatively, I prefer to keep a spreadsheet where I record all my spending for the month. You are able to see where you are overspending and can then cutback accordingly. I believe my method to be a little more flexible than the traditional budgeting method. I explain my budgeting method in more detail in a previous article Budgeting Revisited.

Now onto one habit to avoid: Do not use your overdraft. For the majority of students use of an overdraft is interest free. In my opinion this is so that the banks can encourage you to get into bad habits, utilizing your overdraft when you are no longer a student and paying vast amounts of interest for the privilege. So, don't use your overdraft. Ever! Period! You do not want to get into the mindset where it feels acceptable. Furthermore, many people do not realise that using your overdraft shows up on your credit score (Why do I need a good credit score?). You can actually improve your credit history by demonstrating that you never have to use your overdraft. It demonstrates good financial discipline.

Part time job

To reduce your reliance on the student loan, make budgeting easier and increase your savings I would recommend two things. Try to make some extra money at University and get a summer job/ (paid - ideally) internship.

Regardless of what many students claim, students tend to have a lot of spare time. Furthermore, there are loads of opportunities at your University to make some extra cash. For example, working in a cafe, restaurant, shop, for a nightclub, for the University itself. I chose to sell tickets for a club and start a website to bring in extra cash each month.

The summer holidays for most University courses are incredibly long - almost 4 months. That is more than enough time to go for a holiday and to get a summer job - What else are you going to do!?

You could also consider selling your essays, once you have finished University. Here's an article on one of the ways that I did this: Selling your Essays.

Take advantage of deals

Students have access to many deals and vouchers that most people cannot get. Make sure that you are taking full advantage:

  • Sign up to voucher sites and student deals pages such as StudentBeans
  • Get yourself a student railcard - it gets you 30% off future rail travel.
  • Get yourself an NUS card to get money off in loads of restaurants and shops
  • Carry your student card whenever you go out and ask whatever shop/ restaurant/ venue that you are in has any student deals - you don't get if you don't ask!

Books

Academic books are notoriously expensive. Plus, you may have to buy many of them each year. Rather than buying brand new books here are some alternatives:

  • Borrow them from the library - you may not use the books as much as you had originally thought
  • Search for an online free version on search engines such as Google Scholar or on your course's webpages
  • Buy a second hand version of the book off eBay or Amazon
  • Check your society or course notice boards to see if anyone in the year above is selling the book
  • Make sure that you sell your books at the end of each year if you aren't going to need them again. Check out an article I wrote on how to Sell your student books

Going out

The biggest key to saving money when going out is to THE PRE-DRINK. For those of you who don't know, predrinking is where you buy a large bottle of alcohol between a few students and drink heavily before the club - saving you from spending money on drinks in the club. Other hints to save money when going out:

  • Share taxis to and from the club
  • Consider a nightbus home - most Universities provide this for their students
  • Consider working for a club - that way you get free entry and potentially drinks

Dealing with student debt

Now this is a tricky one. If you know that you will be earning well in excess of the £21,000 over the course of your working life then it is a good idea to try to pay down your student debt as quickly as possible. Many people believe that student debt is interest free. This is a misconception. You pay interest indirectly as the debt principle is index linked to inflation. As such, you will actually pay less the quicker you pay off the debt.

However, if you don't think you'll earn much over £21,000 over the course of your life then it may not be economical for you to pay off the debt as quickly as possible. Any remaining student debt gets written off 30 years after you began your working life. As such, if it was the case that you didn't earn a lot, and would have still had some debt to pay off in 30 years time then it would not have been economically efficient for you to pay off the debt as quickly as possible.

Whether to pay off the debt as quickly as possible or not is a totally individual question. However, I would point out, (apologies for the slightly political comment to come) that if you are NOT going to seriously boost your earnings power as a result of going to University to well over £21,000, then it is probably not worth your time or money or the debt to go to University. As such, you would probably be more financially successful, not going to University, earning slightly less but not being shackled by any student debt.


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to become Rich: The Basics

Much of the following article has been explained previously in articles such as The Get Rich Plan and The Science of Wealth. However, I'm going to lay down the basic foundations to building wealth as clearly as I can explain them in a series of rules.

Rule Number 1: Balance the Wealth Equation

As explained in The Science of Wealth you must make sure that you are spending less than you are earning. Simple! you may say, and yet many people wonder why the don't build wealth. Obviously this is a case of "easier said than done".

The key is to track current spending to see where reductions and cutbacks can be made and where excess spending can be eliminated.

Rule Number 2: Automate your Savings

Make savings a priority by setting up a standing order from your current account to a savings account. The standing order should be on the first day of every month so that you can see what you have left to spend for the rest of the month. Try saving 10% of your net disposable income (your income after tax). You will be surprised at your ability to reduce and adjust your spending as a result. Try to increase this percentage each year or every time you receive a pay increase.

Rule Number 3: Make you money work for you

Don't just leave your savings in a current account. Once you have built up a safety net of emergency cash savings (advisers recommend between 3 to 6 months income), look to invest your money in a mix of shares, property and bonds.

Rule Number 4: Try to avoid debt

People get very confused about debt. I shall simplify it here (as I've said already - this is just an overview).

Avoid credit card debt. You can use credit cards but just make sure that you pay them off in full each month. There is no excuse for paying interest.

Try not to be too leveraged on your house. That is, try to have some equity in the house. It has been suggested that 40% is a decent amount that allows you to obtain cheaper mortgage rates.

Generally avoid other loans. I will write a piece in the future on more advanced uses for debt. But for now let's just try to minimise it and reduce any currently held debt.



For the next article in the series: How to become Rich: Student


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to become Rich: Introduction

The following is the first in a series of several articles designed to point out the direction you ought to go in to build wealth. However, there is a twist.

It recently occurred to me that the problem with lots of advice on making money is that it ignores the starting position of the individual. A person starting their working life will require a different strategy to someone nearing retirement age. As such the following series will cover the "Wealth Growth Plan" assuming different starting points in life. Readers are encouraged to read all of the articles in the following series as there are certain pieces of advice that are applicable to anyone. However, readers may pick and choose articles as they so wish.

In this series I will cover the following life stages, following a preliminary article on the basics of wealth creation:

1. Basics
2. Student

The purpose of each article will be to look at personal finance from a higher level, ie broadly, if you were starting from a particular situation, how should your overall finances look? I will try to avoid going into too much detail, but will include links to other articles to fill in some of the detail.

It is important to note that it is never too late, nor too early in life to start building wealth. It is all about having the right strategy.

There will be a slight break in the publishing of the articles as at the end of October I will be publishing the 6th Multimillionaire Road Plan update so that readers can see how my personal wealth creation plan is progressing.


Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.



Common Credit Card Myths

False statements about credit cards


Common Credit Card Myths is the subject of the following guest post from a financial writer looking to offer their insight into the often confusing world of credit cards.

The amount of credit cards on the market at the moment can be a little daunting to a first-time borrower. When used correctly, credit cards can provide an excellent way in which to keep on top of your finances and pay up front for something you need now. This could be bills, the deposit on a flat or cash towards a new car.

However, there are a couple of myths that need to be dispelled before you start browsing around for the best deals. Here’s what you need to bear in mind:

Myth: If you have never had a credit card before, there won’t be any difficulties in getting one.

You may assume that simply because you have never had a loan before, you’ll have a good credit rating. Your credit rating is what a lender will check before approving you for a loan, and if it’s a poor rating your chances of being approved will be compromised.

Even if you haven’t every borrowed before, your credit rating can be affected by defaulted payments on utility bills from some suppliers, your phone bill and your council tax bill. If you appear in court thanks to deferred council tax payments, your credit rating will be severely affected.


Myth: Negative information can be removed from your credit report

If you have defaulted on a payment of a credit card or loan, it stays on your report and there’s nothing you can do about – that is, unless the information is incorrect.

If any information on your credit report is incorrect, you can apply to have it changed with one of the main credit report providers.If there’s negative information on your report, think about organising your own savings before applying for more credit. A spokesperson from Yorkshire Building Society suggested: 
 “Set up a regular savings account and shop around to make sure you get the best rate. Ensure that you are on the electoral roll as this can improve your credit score. Review your day-to-day spending to see if you can make any cuts to increase you’re saving, then set up a budget for essentials and stick to it”

Myth: If your credit rating is poor, you won’t be able to get a credit card

As aforementioned, you don’t have to have had a credit card or loan before which you struggled to pay in order to have a poor credit rating. So if your rating is bad, you can’t get a card – right?

This is not true. Many credit card providers, in the instance of your rating not being good, will offer you a higher interest rate in order to cover the risk to them – but still offer you the card. It’s important to be certain that you can pay back the elevated interest every month.

You can also get certain credit cards which are designed specifically to improve your rating

Myth: Cancelling credit cards will help improve your credit rating

If you cancel your credit card, you could actually hurt your score. By cancelling cards, you’ll be increasing your debt-to-credit ratio.


Myth: Applying for credit will affect my credit score

Applying for a new card will not affect your credit score.

That said, if you apply to multiple lenders at the same time, each lender will leave a ‘footprint’ on your credit score for other lenders to see – this doesn't look good. Always apply for credit with good time between each application.


Interested in guest posting or writing a sponsored post? Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment.

Disclaimer

Information on this site is not appropriate for the purposes of making a decision for carrying out a transaction or trade nor does it provide any form of advice (investment, tax or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.
Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter