From No Credit To Aaa Credit In Only 8 Months
We all deal with having to start our credit history from zero at some point in time. For me, it began when I was out of the country for 7 years. When I returned to the United Says, I tried to apply for a credit card, only to find out that no one would extend me credit because of my lack of credit history. Apparently, no credit is even worse than bad credit.
So my research began. I phoned friends in the lending industry; searched the internet; read books on the subject and began to put together a step-by-step plan that would catapult my credit reports into the 80th percentile of those that hold credit.
I started off by calling up some friends in the lending business, by searching the web, and by reading every book I could find. After that, I was able to concoct a plan that would eventually get my credit rating from zero to 80% higher than the other debtors in this country, and it only took me 8 months to do so.
The first step is to gather a list of banks and credit unions in your area. I found two credit unions and two banks within all within two city blocks of each other. I made sure I would be allowed to join the two credit unions and that everyone offered online banking for free. My first day of leg work was about to begin.
The first step is to search out every bank and credit union in your city. Youall need to establish a checking account to get started. I opened a checking account with one of the credit unions I found, and deposited $10,000. Then, I asked for a secured personal loan of $8,000 against my deposit. When I explained I was trying to establish a credit history, they were happy to oblige. My $10,000 was now frozen in the account, and I had $8,000 in borrow cash. As I paid the loan back, the funds are released from the account.
Next, I went to another credit union with the $8,000, and opened another checking account. Once again, I asked for a personal loan of $7,000 against my $8,000, to help build up my credit rapport. I continued to do this at two more banks, until the last account held a $6,000 deposit, and I had $5,000 in hand.
I started to get worried when I added it all up, and realized that I owed four different institutions $26,000 combined. I started to think about what I had gotten myself into, how hard it was going to be to keep track of my monthly payments, and that it was all going to come crashing down and destroy my credit forever. I decided to use on the web banking to handle the monthly payments, and it turns out that it was incredibly simple. The loans were all paid off within 8 months, and I created a record of being able to pay of big amounts of money each month.
In the end, I got $8,375 of my $10,000 back after all interest was paid. Each bank and credit union got a new customer and all got paid for their participation (the interest I paid to them). I, on the other hand, got a AAA credit report, four credit cards (two of which now carry a now $25,000 limit)