How To Fix or Establish Your Credit

DOWNLOAD - "How to Fix Your Credit" - Donna Fox.mp3 (takes 1 minute)

One way to Fix or Establish your credit is a procedure that should not take you too long!

Step 1 to Fix or Establish your credit:

Beg, borrow or steal a certain amount of money! Let us use $2,000.00 as an example.

You want to go to a small portfolio bank and open up an account. This type of bank does not sell their portfolios to bigger banks, but keep them on their own books.

Tell the bank officer that you want to establish your credit. Ask them for the best account to open like a checking account, savings or a certificate of deposit (CD). This way this person will understand your sincerity.

Tell her also that you want to borrow against this amount so you can make payments to the bank over the next several months to establish a payment history Fix or Establish your credit. She will explain to you the best options that the bank can offer you, like a line of credit type of loan.

They will lend you a certain amount against this $2,000 deposit, say, $1,500.00.

Step 2 to Fix or Establish your credit:

Now you take this $1,500.00 to another bank and do the same thing.

This second bank will loan you a percentage against this amount that you deposit just as the first bank did. You explain, as you did in the first bank, that you are attempting to establish a good credit rating by making your payments on time. This bank should help you as the first bank did.

They will let you borrow - lets round off to an even number to work with - say, $1,000.00.

Step 3 to Fix or Establish your credit:

Guess what? You find a third bank and do the same thing. When they loan you $500.00, you take it to the first bank and use it to pay down the first loan - you sure do not want to be tempted to go shopping or out to dinner and a movie!

Now after three months or so, you will go to the first bank and close out your account where you deposit the $2,000.00. You will use what is left to pay off the loan there. You do the same at all 3 banks.

You will have less cash than you started out with because you had to pay the banks profits in interest on your borrowed money for that 3 month period. But the small cost is worth it! You have now established your payment history for a nominal cost.

Now you could be on your way to financial freedom if you use your borrowing power to further your portfolio by investing in appreciating assets such as real estate.