For those who wish a relatively simple way to rebuild credit or those who are starting out with zero credit...
There is a way...
It requires a few things you MUST have...
A) $500.00
B) A steady job (does not have to be a high pay job but must be steady income for one year
C) A desire to make this work...
D) A good friend...
Okay get a pen and paper....
Someone somewhere will be 'upset' with me for this revelation... (a lot of these 'get rich' companies use this secret and sell it to you
)
You take the 500.00 and open a SECURED CREDIT CARD ACCOUNT in a bank that has no annual fee. If you secure a card with cash, you will get one with NO PROBLEM.
This card comes with a credit limit of 750.00 in most cases. Some only give 500.00 but look for the one that offers 750.00.
When you have the card... go and withdraw a cash advance of 500.00 no more...
With this 500.00 go to another bank and get a SECURED credit card...
Do this with 10 cards. I say 10 because it is easy to handle for an average person. You can do more but don't get greedy... that's what got you into the mess in the first place and you won't be able to handle the payments...
This is where the desire comes in... it will take a little work to track these cards...
Okay so now you have 10 card each with a credit value 750.00 each, plus each card is secured by 500.00 cash...
YES it is the SAME 500.00 used 10 times
This is what they call using other peoples money...
Now bear with me...
THIS is where the steady job comes in... because you now have 9 credit cards that you owe 500.00 on... (9 because you did not need to withdraw from the last one as you started with 500.00 of YOUR money...)
The average monthly payment on a 500.00 card is 12.50 to 15.00..
So 15.00 x 9 = 135.00 per month....
135.00 a month is all this will cost you... If you can afford that you can do this easily...
Not done yet...
This is where the friend comes in. Give the friend the 10 cards for safe keeping. You DO NOT want to use these cards for the year... PERIOD. You can cut them up if you don't have a friend. This is VERY IMPORTANT DO NOT USE THEM... Lock them away...
Now the payback.
After 1 year you will have..
10 credit cards that you have made a monthly payment ON TIME.
You will have in each of the 10 banks 500.00 cash. How?
Because you borrowed each 500.00 that you used to secure each card from your other card in other words from YOURSELF. You made the payments for 1 year and except for the interest charged by the card company, you are in effect repaying YOURSELF...
At the end of 12 months of paying on time... a majic thing happens... your credit on that account is great and the card becomes unsecured and they raise or double your limit to 1,500
So at the end of one year you have
$5,000.00 cash in savings (10 x 500.00)
$7,500.00 in credit if you decline the increase in your limit
15,000.00 in credit best case scenario
And the next time someone asks you to list your credit referals you have 10 bank references in good standing
So there you have one of THEIR secrets...
As long as you make the 9 monthly payments on time this is totally legit and a fast track to get you on your feet...
After that you are on your own to keep it that way and not give into temptation...
