WEBVTT - BA Q&A: How Do You Ask for a Larger Credit Limit?

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<v Speaker 1>It's times or b a q q A b a

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<v Speaker 1>q q q A.

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<v Speaker 2>Oh there's a spider on my stel, Like, I'm gonna

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<v Speaker 2>look back down. I don't want to see that.

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<v Speaker 1>The spider is just what's a little b a qa?

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<v Speaker 1>As well? They were like brod a mission question and answer.

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<v Speaker 2>I's gonna pretend like that didn't just say but I

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<v Speaker 2>am working in a basement of there you go, Hey,

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<v Speaker 2>long time, no ser.

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<v Speaker 1>Are you ready for b a q A?

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<v Speaker 2>I'm always ready for our new mini episode. I'm loving this.

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<v Speaker 2>I'm loving our new changear, switching it up, keeping things fresh.

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<v Speaker 2>BA audience.

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<v Speaker 1>If anyone has a q A for b A, where

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<v Speaker 1>can they send in their cu You guys.

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<v Speaker 2>Can go to Brandnambition podcast dot com and click ask

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<v Speaker 2>us anything, or you can hit us up on Instagram.

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<v Speaker 2>We are at brand Ambision Podcast. Follow us while you're there.

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<v Speaker 2>I'm trying to get to ten thousand, y'all.

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<v Speaker 1>We close.

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<v Speaker 2>We're gonna hit ten thousand this week. I'm so excited.

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<v Speaker 2>But be one of the last five hundred or last

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<v Speaker 2>one hundred. Okay, So Brown Ambition Podcast on ig or

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<v Speaker 2>old fashioned email Brownambision Podcast at gmail dot com.

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<v Speaker 1>Dot com. All right, let's get to the first question.

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<v Speaker 2>Just keeep do it. Let me let me read this

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<v Speaker 2>one for us.

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<v Speaker 1>Allow me.

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<v Speaker 2>Hi, guys, I recently found out about your podcast and

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<v Speaker 2>I'm obsessed all caps. I have a son who is

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<v Speaker 2>eighteen months old, and I'm trying to set him up

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<v Speaker 2>for success. I know you guys have talked about investing

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<v Speaker 2>for your kids, but I'm wondering what you all think

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<v Speaker 2>about the Gerber life grow up plans. Something about it

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<v Speaker 2>doesn't seem like the best idea, but I'm also not

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<v Speaker 2>sure at all.

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<v Speaker 1>Help.

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<v Speaker 3>I just I want to just say, like, I love

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<v Speaker 3>your intuition, your spidery chanswers, so like, hm.

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<v Speaker 2>Baby food, food, life insurance. What's not adding up?

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<v Speaker 1>One of these things does not be long?

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<v Speaker 2>Yeah, I forgot about these policies and I had to

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<v Speaker 2>do some googles after we saw this question because I'm like,

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<v Speaker 2>what is that? But it literally is a It is

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<v Speaker 2>a whole life insurance policy, so you can purchase it

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<v Speaker 2>for your kids. I'm reading this from Value Penguin dot com,

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<v Speaker 2>which is an insurance comparison website, and I know the

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<v Speaker 2>content team there, so I trust their information. They say

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<v Speaker 2>that with Gerber's Life's Grow Up Plan. It's a whole

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<v Speaker 2>life insurance policy you can purchase on your kids or

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<v Speaker 2>grandchildren between the ages of fourteen days and fourteen years old.

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<v Speaker 2>It's a typical whole life insurance policy that has premiums

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<v Speaker 2>and build builds cash value. But there's a few differences.

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<v Speaker 2>Until the child turns twenty one, the person who opens

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<v Speaker 2>the account, so the parent is the policy excuse me, owner,

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<v Speaker 2>and you can only purchase between five thousand and fifty

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<v Speaker 2>thousand dollars worth of insurance or the child. The benefit

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<v Speaker 2>I think is that the policy's death benefit doubles when

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<v Speaker 2>the child turns eighteen, So a twenty five thousand dollars

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<v Speaker 2>policy would turn into a fifty thousand dollars policy then

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<v Speaker 2>without any rise in premiums.

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<v Speaker 1>Now here's the exciting stuff.

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<v Speaker 3>I think we should all that tofay what is the

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<v Speaker 3>purpose of life insurance? I'll tell you what the purpose

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<v Speaker 3>of life insurance is. It is typically because you are

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<v Speaker 3>financially responsible for other people and if something God forbid

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<v Speaker 3>should happen to you, that they would still be able

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<v Speaker 3>to maintain the life that you're providing for them. So

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<v Speaker 3>you are a parent and you say, if I'm not here,

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<v Speaker 3>you know, how will my children be able to eat,

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<v Speaker 3>go to school, transportation all that stuff. So although I'm

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<v Speaker 3>not physically here, the financial component that I brought to

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<v Speaker 3>the table is still here.

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<v Speaker 1>Right.

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<v Speaker 3>Or if you were going to leave behind a financial

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<v Speaker 3>debt that would be inherited by your heirs, right, let's

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<v Speaker 3>just say some student loan debt, right, so not your

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<v Speaker 3>federal but private student loan debt. Or and if you

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<v Speaker 3>have a mortgage or a car note or whatever that

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<v Speaker 3>would have to be paid even if you're not here.

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<v Speaker 3>You might get a life insurance policy. So basically the

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<v Speaker 3>life insurance policies one to bury you, you know, like

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<v Speaker 3>if you know if the people who would be responsible

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<v Speaker 3>for bearing you don't have the money, and then but

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<v Speaker 3>especially two, to take care of your financial obligations that

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<v Speaker 3>you would leave behind. Riddle me this, mandra You've got

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<v Speaker 3>a little baby, he's super cute. And what bills does

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<v Speaker 3>we o pay?

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<v Speaker 1>You know what?

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<v Speaker 2>As of now zero he pays zero. I'm embarrassed to

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<v Speaker 2>say I don't charge him rents. Girl, life bill has

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<v Speaker 2>gone up since he got his own room, and he

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<v Speaker 2>has contributed no coins, no coins at all, I feel

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<v Speaker 2>like the only case when you would have to get

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<v Speaker 2>life insurance for a baby is if maybe they're like

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<v Speaker 2>a baby's baby actor, a child actor, or a child

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<v Speaker 2>maybe I don't know, a homegirl who won the spelling bee,

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<v Speaker 2>who's probably got like agents flocking to her right now.

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<v Speaker 3>Because honestly, there are some kids who do contribute to

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<v Speaker 3>the bottom line of the family, you know. And so

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<v Speaker 3>I mean, I have a whole thing about whole life

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<v Speaker 3>versus term anyway, you know, whole life is. We'll talk,

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<v Speaker 3>We'll have a whole life term conversation another day. But

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<v Speaker 3>you know, but it doesn't really make sense for the

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<v Speaker 3>most part to put that money toward life andsjurant. Although

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<v Speaker 3>I'm so there's some financial advisors who are like, no,

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<v Speaker 3>you want to know why because they get paid when

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<v Speaker 3>you do that, right, so exactly, they get commissioned.

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<v Speaker 1>So having life inschurane for a baby. So if if

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<v Speaker 1>unfortunately that baby passes prematurely.

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<v Speaker 2>I can't think of babies me. Don't make me do it.

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<v Speaker 1>But that money is you know what I mean, Like

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<v Speaker 1>what is that money for? Like you know, you know

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<v Speaker 1>what I mean.

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<v Speaker 3>Is that is that fifty thousand replacing income that the

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<v Speaker 3>baby was bringing in. No, does that baby have dead No.

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<v Speaker 3>The only time that it might might might might make sense.

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<v Speaker 3>This is from my wealth planner and certified financial planner.

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<v Speaker 1>She said, Let's just say that your.

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<v Speaker 3>Child, maybe you have like a some sort of illness

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<v Speaker 3>that runs in the family, and you're pretty sure that

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<v Speaker 3>they're not going to qualify for life insurance later on

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<v Speaker 3>in life because that illness comes up, you know, She said,

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<v Speaker 3>that's as possible, like there might be something where like,

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<v Speaker 3>you know, half of your family has gotten cancer by

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<v Speaker 3>the time they're thirty, or or you know, I don't

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<v Speaker 3>know something that you just are pretty concerned that they're

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<v Speaker 3>not going to qualify. Then she said, it might make

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<v Speaker 3>sense then to be like, you know what, let's let's

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<v Speaker 3>get your life insurance in place now, so that way,

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<v Speaker 3>you know, by the time you're older, at least you'll

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<v Speaker 3>have something for your children when you if you decide

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<v Speaker 3>to have children or whatever dependence that you might have later.

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<v Speaker 1>So that might make sense, but all in.

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<v Speaker 3>All, it would be better for you to use that

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<v Speaker 3>money to save for their college fund if you think

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<v Speaker 3>you're going to send them a college to set aside

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<v Speaker 3>just for them, you know, like and to invest on

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<v Speaker 3>their behalf versus giving it to especially a whole life policy.

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<v Speaker 3>They talk about the cast benefit, but you you know,

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<v Speaker 3>the average return on that cast benefit is two. I

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<v Speaker 3>mean up until recently, you could get that in a

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<v Speaker 3>savings account.

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<v Speaker 1>Yeah.

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<v Speaker 2>No, and so maybe a bond these days. Yeah, and

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<v Speaker 2>you don't have the flexibility as you would like if

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<v Speaker 2>you just the spider's getting closer if you just put

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<v Speaker 2>the money into a brokerage account for.

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<v Speaker 1>Because just in case that's.

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<v Speaker 2>It's not anything. I don't want to look at it anymore.

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<v Speaker 2>Why is it always me and vermin? Remember when I

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<v Speaker 2>had mice running around anyway, different place, not this place. Yeah,

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<v Speaker 2>I do have life insurance. I have a term policy

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<v Speaker 2>and I got that when I had a kid because

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<v Speaker 2>I decided that, you know, prior to that, my husband

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<v Speaker 2>he's still able to work and you know, provide for himself,

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<v Speaker 2>and we had plenty of savings, et cetera. But for

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<v Speaker 2>my son, you know, God forbid anything happens to me.

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<v Speaker 2>I just wanted to be sure he was set as well.

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<v Speaker 2>So that was my form of protection for him. But yeah, Gerber,

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<v Speaker 2>it's cute, like their food is cute. But maybe not

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<v Speaker 2>their whole life insurance for the fourteen day year old.

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<v Speaker 1>Ah, so we say pass on and over here.

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<v Speaker 3>Next question is super easy breezy anonymous here, which is

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<v Speaker 3>funny because this question is not really what I would

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<v Speaker 3>think of, befo anonymous. But okay, yeah, well, asking for

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<v Speaker 3>a credit line increase on a credit card affect my

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<v Speaker 3>credit score?

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<v Speaker 2>Tricky? You said it'd be easy. Tricky, tricky because people

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<v Speaker 2>still get this messed up. So first you want to

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<v Speaker 2>talk about what a credit line increase is.

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<v Speaker 3>Yeah, so that means like, let's just say, right now,

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<v Speaker 3>your credit like you know, like your credit card, the

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<v Speaker 3>limit is five hundred dollars, and you're like, you know

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<v Speaker 3>what I'm feeling, grown I'm feeling sexy. I'm feeling a

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<v Speaker 3>thousand dollars is more appropriate to where I am right now.

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<v Speaker 3>So you can ask your credit card company, Hey, credits worth,

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<v Speaker 3>look at good syst stop playing me out. I would

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<v Speaker 3>love to go from being able to potentially borrow five

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<v Speaker 3>hundred dollars to one thousand dollars. And they ask you

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<v Speaker 3>all these questions like how much do you make? They'll

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<v Speaker 3>obviously look get your credit score and they'll make the assessment.

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<v Speaker 3>Then and then they'll either say.

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<v Speaker 1>Yay or nay.

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<v Speaker 3>Now here's the thing. They're going to decide whatever that

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<v Speaker 3>number is. You know, you might say I'd like to

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<v Speaker 3>go to a thousand. They're like, girl, nobody asks you.

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<v Speaker 1>We'll put it where we want to put it. Yeah, So,

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<v Speaker 1>which is funny. You're like, oh, oh seven fifty, okay, okay,

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<v Speaker 1>seven fifty.

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<v Speaker 3>So that is a credit line increase just basically your

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<v Speaker 3>limit increases. In Europe, you have more, you have a

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<v Speaker 3>greater availability dumb to cash and money.

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<v Speaker 2>Yeah, and when you you can actually request a credit

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<v Speaker 2>line increase. I did this before. I don't know if

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<v Speaker 2>you have, but I've done it for not the right

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<v Speaker 2>reasons in the past, which is I really wanted to

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<v Speaker 2>go to Boston for New Year's Eve for some reason

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<v Speaker 2>in two thousand and eight, and I had like a

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<v Speaker 2>seven hundred dollars limit on my college credit card and

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<v Speaker 2>I was like, can I have a little bit more?

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<v Speaker 2>And I immediately maxed it out and it took me

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<v Speaker 2>three years to pay it back down. Don't do that,

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<v Speaker 2>but there is you know, in that case that hurt

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<v Speaker 2>my credit score because what I was doing is maxing

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<v Speaker 2>out my available credit limit. Which utilization which is just

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<v Speaker 2>a f word for how much you're using on your

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<v Speaker 2>credit limit. It really it's like one of the sec

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<v Speaker 2>it's the second most important factor for your credit score.

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<v Speaker 2>So if you are maxing out your cards, no matter

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<v Speaker 2>their limit, your score is probably going to go down. Now,

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<v Speaker 2>there's an upside to getting a credit limit only if

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<v Speaker 2>you just don't use it, or if you do use it,

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<v Speaker 2>you pay it off each time your bill is due.

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<v Speaker 2>That's the only way to be sure that you know

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<v Speaker 2>you're going to have a continue to have a strong

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<v Speaker 2>credit score. I know when would people?

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<v Speaker 1>So it's off in half right, so meaning like it

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<v Speaker 1>can actually raise your score, it can actually lower your score.

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<v Speaker 1>So this is how it can lower your score.

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<v Speaker 3>Like if they do the credit line like increase, which

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<v Speaker 3>they will do from time to time, naturally that's not

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<v Speaker 3>gonna that's a soft inquiry, meaning like a soft inquiry

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<v Speaker 3>is when you have not given someone the express permission

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<v Speaker 3>to look at your credit and make decisions you know,

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<v Speaker 3>about your about whatever financial product or service they might

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<v Speaker 3>offer you. That's soft and so it's like kind of involuntary,

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<v Speaker 3>so they don't know it doesn't they don't give you

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<v Speaker 3>a ding on.

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<v Speaker 1>Your credit report as a result.

0:11:02.920 --> 0:11:04.760
<v Speaker 3>So if you get a nap because and that happens,

0:11:04.760 --> 0:11:07.160
<v Speaker 3>like I'm going to say once a year or whatever,

0:11:07.240 --> 0:11:09.080
<v Speaker 3>you're if you're using your credit card a lot and

0:11:09.120 --> 0:11:11.559
<v Speaker 3>paying it off, well they'll just do an increase, no

0:11:12.080 --> 0:11:15.400
<v Speaker 3>ding to you. Now, if you ask for one, you

0:11:15.480 --> 0:11:18.440
<v Speaker 3>have the potential of that being a hard inquiry, meaning

0:11:18.440 --> 0:11:21.400
<v Speaker 3>that you've expressly allowed someone to look at your credit

0:11:21.480 --> 0:11:24.640
<v Speaker 3>report and make a decision. And so hard increase have

0:11:24.760 --> 0:11:27.920
<v Speaker 3>the can bring down your score, And so you want

0:11:27.960 --> 0:11:30.000
<v Speaker 3>to be mindful. So I've raised it, and if I've asked,

0:11:30.040 --> 0:11:32.160
<v Speaker 3>this is gonna be a softer heart inquiry and usually

0:11:32.240 --> 0:11:34.160
<v Speaker 3>it is a herd incurey because I'm making the request.

0:11:34.200 --> 0:11:36.520
<v Speaker 3>So that's how it can potentially bring down your score,

0:11:36.720 --> 0:11:39.120
<v Speaker 3>but it can increase your score in this way because

0:11:39.160 --> 0:11:43.440
<v Speaker 3>Mandy mentioned something called utilization. Utilization is just how much

0:11:43.559 --> 0:11:47.920
<v Speaker 3>credit do you have available versus how much you're actually using.

0:11:48.200 --> 0:11:50.560
<v Speaker 3>So let's just say right now you only have one card,

0:11:51.600 --> 0:11:53.880
<v Speaker 3>or let's just say now you have two cards.

0:11:54.280 --> 0:11:57.680
<v Speaker 1>Each of them has a one hundred dollars limit, and

0:11:58.040 --> 0:12:00.520
<v Speaker 1>one card is fully.

0:12:00.080 --> 0:12:02.120
<v Speaker 3>Maxed out one hundred dollars limit on both cards and

0:12:02.160 --> 0:12:04.240
<v Speaker 3>one car is fully maxed out. So if one car

0:12:04.320 --> 0:12:07.480
<v Speaker 3>is fully maxed out, you're utilizing on average, fifty percent

0:12:07.520 --> 0:12:09.800
<v Speaker 3>of your utilization. Because one card is not used at

0:12:09.840 --> 0:12:12.480
<v Speaker 3>all the other card is fully maxed out, you're using

0:12:12.520 --> 0:12:15.480
<v Speaker 3>half of your credit limit between the two cards. Now,

0:12:15.520 --> 0:12:17.400
<v Speaker 3>let's just say you take that one card and say

0:12:17.640 --> 0:12:21.960
<v Speaker 3>I'm going to bump up my credit limit and ask

0:12:22.000 --> 0:12:24.199
<v Speaker 3>and they say sure, and it goes from one hundred

0:12:24.240 --> 0:12:27.840
<v Speaker 3>to two hundred. So now you're not utilizing fifty percent

0:12:27.840 --> 0:12:32.040
<v Speaker 3>of your credit available, you're utilizing one third, you know,

0:12:32.120 --> 0:12:34.520
<v Speaker 3>thirty three percent, which is which is really the max

0:12:34.559 --> 0:12:36.560
<v Speaker 3>of where you should be. No, really, ideally no more

0:12:36.600 --> 0:12:39.600
<v Speaker 3>than thirty percent of your your credit cards available to you.

0:12:39.640 --> 0:12:41.559
<v Speaker 3>Do you want to be utilizing so that it can

0:12:41.600 --> 0:12:44.440
<v Speaker 3>actually help to bring up your score because you lowered

0:12:44.440 --> 0:12:46.680
<v Speaker 3>your utilization. They like to see you have some breathing

0:12:46.760 --> 0:12:49.680
<v Speaker 3>room when it comes to dead. So can ask me

0:12:49.720 --> 0:12:52.280
<v Speaker 3>for an increase bring down your score? Yes, because it

0:12:52.360 --> 0:12:54.559
<v Speaker 3>might be a hard increy. Can it bring up your score?

0:12:54.800 --> 0:12:57.080
<v Speaker 3>Yes if it gives you more breathing room and puts

0:12:57.120 --> 0:12:59.240
<v Speaker 3>you into a safer utilization zone.

0:12:59.280 --> 0:13:00.040
<v Speaker 1>So it's.

0:13:02.320 --> 0:13:06.079
<v Speaker 2>I feel things crawling on me it's just all one

0:13:06.080 --> 0:13:08.280
<v Speaker 2>big mind trick. I hate it, but that's the way

0:13:08.280 --> 0:13:10.320
<v Speaker 2>the game is played so far. With credit cards, they

0:13:10.360 --> 0:13:11.920
<v Speaker 2>just want, like the way that you get a good

0:13:11.960 --> 0:13:14.040
<v Speaker 2>score is like to prove that they can put that

0:13:14.120 --> 0:13:15.760
<v Speaker 2>chocolate cake in front of you and you're not going

0:13:15.840 --> 0:13:16.240
<v Speaker 2>to eat it.

0:13:16.760 --> 0:13:17.560
<v Speaker 1>And for some.

0:13:17.480 --> 0:13:21.560
<v Speaker 2>People that is harder to do for others, and that's

0:13:21.720 --> 0:13:23.760
<v Speaker 2>just how they get you. You need to prove to

0:13:23.840 --> 0:13:27.199
<v Speaker 2>credit card credit reporting agencies rather the people who actually

0:13:27.559 --> 0:13:30.280
<v Speaker 2>track your credit and then that goes into your credit score.

0:13:30.320 --> 0:13:32.480
<v Speaker 2>You have to prove to them that you are able

0:13:32.520 --> 0:13:36.880
<v Speaker 2>to resist that temptation. And it sounds unfair because it is,

0:13:36.920 --> 0:13:38.960
<v Speaker 2>but that is the way it is, right now, Okay.

0:13:39.320 --> 0:13:43.760
<v Speaker 1>This was this was this resist all right.

0:13:44.080 --> 0:13:46.640
<v Speaker 3>We just have time for two questions today. We'll do

0:13:46.679 --> 0:13:49.679
<v Speaker 3>more or less next time. But if you have questions,

0:13:49.800 --> 0:13:51.000
<v Speaker 3>please follow.

0:13:50.760 --> 0:13:53.679
<v Speaker 1>Us on the gram ask there, or go to Brownibishy

0:13:53.760 --> 0:13:57.520
<v Speaker 1>podcast dot com and ask click to ask us anything button.

0:13:57.520 --> 0:13:59.320
<v Speaker 3>We love your questions. We got a lot this week,

0:14:00.000 --> 0:14:01.880
<v Speaker 3>and we love your questions. They're like, really they're becoming

0:14:01.920 --> 0:14:06.080
<v Speaker 3>even more insightful than ever. Befel And as for usual,

0:14:06.120 --> 0:14:08.320
<v Speaker 3>if you listen this far, it means you love us,

0:14:08.400 --> 0:14:09.559
<v Speaker 3>and you know what you do with things you.

0:14:09.520 --> 0:14:10.560
<v Speaker 1>Love, You share them.

0:14:10.679 --> 0:14:13.720
<v Speaker 3>Okay, so I want you to take this direct link

0:14:14.200 --> 0:14:15.680
<v Speaker 3>and share with three different people.

0:14:15.760 --> 0:14:17.720
<v Speaker 1>Share in your group chat, I see you on WhatsApp,

0:14:17.840 --> 0:14:21.080
<v Speaker 1>key King behind the scenes, Share in your group chat,

0:14:21.160 --> 0:14:23.880
<v Speaker 1>share in your group text, and let folks know they

0:14:23.920 --> 0:14:26.600
<v Speaker 1>need to listen, especially that one friend that's always asking

0:14:26.600 --> 0:14:29.600
<v Speaker 1>you money questions. You want to be like sis, Just

0:14:29.640 --> 0:14:31.640
<v Speaker 1>listen to Brown Ambition. The girls there have you?

0:14:34.240 --> 0:14:38.800
<v Speaker 2>All right, y'all until next week. Tiffany always a pleasure, Yes.

0:14:38.680 --> 0:14:40.760
<v Speaker 1>It is always a pleasure. Not with me, I mean

0:14:40.800 --> 0:14:41.080
<v Speaker 1>with you.

0:14:43.960 --> 0:14:47.200
<v Speaker 2>It's all pleasurable. All right, let's not go there again.

0:14:49.040 --> 0:14:51.840
<v Speaker 2>That was funny, but now we're recording in the daytime.

0:14:51.880 --> 0:14:54.240
<v Speaker 2>We can't be saucy. We can't be like Brown Ambition

0:14:54.320 --> 0:14:56.520
<v Speaker 2>after dark. This is coffee in this cup, not about

0:14:56.560 --> 0:15:00.840
<v Speaker 2>katonic unfortunately. Well, se all next week.

0:15:01.160 --> 0:15:04.200
<v Speaker 1>Yes, I say, with your brand mission muck okay, represent.

0:15:04.520 --> 0:15:08.400
<v Speaker 2>I'm on brand right Brandimission store dot com. Yes, you

0:15:08.400 --> 0:15:10.560
<v Speaker 2>can get your very own brand and ooh, that's my lipstick.

0:15:10.560 --> 0:15:13.200
<v Speaker 2>It doesn't come with the lipstick stain. You'll get a

0:15:13.240 --> 0:15:16.560
<v Speaker 2>clean cup, I promise, BRANDI Mission Store dot com okay

0:15:17.600 --> 0:15:17.760
<v Speaker 2>by