Bring Your Credit From Zero To Excellent In 8 Months
We all start with the same credit history in the beginning: none. And apparently, when you try to secure a loan, lenders see no credit as worse than having bad credit. The problem was even worse for me, since I was out of the country for seven years, and when I came back to the United States, no one wanted to even think about lending me money to build up my credit history.
It can take years to build up a credit rapport, especially when your history is blank. But, I managed to turn my credit around in just 8 months, with a little research and a lot of hard work. I was in the market for a house and a car, and I needed all three credit agencies to report that my credit was excellent.
I began by calling come of my friends in the credit field, by searching the internet, even by reading books on the subject of lending. Using the knowledge I uncovered, I started to build my plan to bring my credit from nothing to the top 80% of debtors.
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.
My nerves set in as I realized I had just taken out $26,000 in borrowed money by using $10,000 in cash, and I started to worry that this wasnat going to work. I was afraid that I could have made a huge mistake and ruined my credit forever. It would be impossible for me to keep track of all of the accounts and the money I owed by myself, so I used online banking to make the payments for me. Turns out, everything worked out great. The loans were all paid off within 8 months, and I created a record of being able to pay of large amounts of money each month.
When it was over, I got a little over $8,000 back on my initial $10,000. The banks and the credit unions ended up with the rest of the money to cover interest charges, but I ended up with an excellent credit rating in a short amount of time, and I know have four credit cards, two of which carry limits of $25,000 each.
Filed under: Business