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Growing up, we were always told to avoid debt, loans, and, worst of all: credit cards. They have high interest, are a trap for unjustified spending, and will ultimately be our death – or will they? Young entrepreneur Joey Fraser has a different look on debt and, specifically, you guessed it, credit cards. Joey has managed to do the exact opposite, leveraging credit cards to start businesses, generate a return on his debt, and make money by opening and using his credit cards.
Before diving into the details, we wanted proof of his credibility in the credit world. Joey quickly shared his credit reports with us; what he showed us was shocking. At 26 years old, Joey has 27 credit cards, $162,800 in combined credit limits, an 833 credit score, and a near-perfect credit report with all three bureaus.
Before jumping into the good part, we asked Joey to explain how this is possible for someone his age. His response, “you have to change your paradigm about credit and how it works to maximize your report and be in the best position to leverage it. Most people think opening a lot of credit cards is a bad thing. I have 27, and for a good reason. Each month, each card posts a positive payment, assuming you paid it on time. That means I get 27 positive monthly payments, building my report much faster than someone who has one credit card and is only getting one positive note on their monthly report. When you first apply for cards, you can only apply for a few at once. Maybe 5-6, and you can do that every 6-12 months. Your score will take a hit when you apply for sure, but you’ll thank yourself for having those accounts 2-3 years from now when you have a strengthened report. This strategy will also strengthen your average credit age, total credit, which lowers utilization when using your cards, and almost every aspect of your report”.
Next, we wanted to get into the good stuff. How does one make money by having credit cards? Joey offered a few methods that he suggested get commonly overlooked. The first way to make money through credit cards is off the signup bonus. Joey notes, “think about it. The banks are making a ton of money off their customers. Last year American Express alone made 8.1 billion dollars in net income. Billion with a B. They want your business, and they’re willing to pay for it. Typically these marketing tactics lure unsuspecting users to sign up and be taken advantage of, but this opens a door of opportunity for those who understand the process to take advantage of the bank”. He mentions these signup bonuses can range anywhere from $50 to well over $1,000 for simply opening the card and hitting a spending requirement. When done 5-6 times every 6-12 months, these sign-up bonuses can notably impact your bottom line.
The second method he awakened us to is leveraging the debt to make money. But doesn’t the card have unbearable interest that will drown me? Not always, we are finding out. Joey only leverages debt on cards that meet two requirements: a business card and second, it has a zero percent interest period. When asked why he only uses business cards, he stressed, “when you use a credit card, your utilization increases which lower your credit score. That’s not something we are willing to sacrifice, and there is a solution: business credit. When you open a business credit card, you carry some personal liability, but the debt does not reflect on your report, which means your score will not drop if you max out the card. This opens interesting and unique doors to start and scale businesses with zero dollars out of pocket, and cause no harm to your credit, allowing you to get approved for more and more as needed and as time goes on”. He further explains that many business credit cards have zero percent interest periods lasting from 9-24 months. Joey recommends only investing funds into projects where you are 100% confident you can receive a total ROI and be able to pay off the card during the zero percent intro period. His number one rule of credit is never to pay interest – ever.
Remember Joey’s excellent credit profile that we observed in the beginning? He claims to maintain that level of credit profile year-round while being in six figures of business credit card debt that he leverages into investments that generate a safe ROI and have the liquidity to pay the cards off before they become interest-bearing. Joey has not only done this for himself, but he has helped dozens of individuals open, scale, and leverage multiple millions in credit card lines. He has numerous testimonials on his Instagram: @joeyjaf, and he assured us he has never charged for his credit services since this interview. He provided consent for us to include his Instagram and offer our readers (you) the opportunity to direct message him and ask any questions they may have on credit or their specific credit journey. Joey finishes, “I aim to help as many people as possible, and anyone is welcome to message me about their credit. I am always happy to help however I can”.