Establish AAA Credit in 30 Days
To work this plan you need at least $400 to begin. You should borrow this from your friends if necessary. Then go to a bank of your choice and deposit the $400 into a regular passbook savings account.
Wait a few days for the account to be posted and return to the bank to ask for a $400 loan - you offer the passbook as collateral. Since the bank is already holding your $400, you go to another bank open a savings account lending you another $400 and they won't even make a credit check. Then, with your borrowed $400, you go to another bank, open a savings account, return a few days later, borrow $400 from that bank using your passbook
as collateral.
Then repeat the process at a third bank with your borrowed $400. Wait a few days to go to a fourth bank where you open this time a CHECKING account. Wait a few days and make a payment on each of the other three loans. A week later, make payments again on the three loans, and continue paying each week until you have almost paid off the balance.
A credit investigation at this point will show you with three active bank loans (which are considered hard to get), a checking account, and a paying history for the three bank loans - with you having paid up in advance. Thus, you have AAA credit in as little as 30 days.
From here you go on to apply for loans, credit cards, and other items on credit.
While this article has good intention in mind, it does not reflect the real picture even close and shows that poster is not familiar with how the credit works.
This technique is taken from the late night infomercial of Carleton H. Sheets and here are just a few week points to it:
1. Overall credit rating (FICO score) consist of many independent factors besides number of loans on your credit report.
They are:
a) The total length of the credit history
b) Number of recently opened accounts
c) Number of recent requests for credit
d) Overall debt ratio compare to the total credit available in all accounts combined
e) Percentage of each credit line used compare to the credit available on this line
f) Late payment (if any) and how frequently and how long ago they have occurred
g) An average monthly balance on each of the open credit lines
h) Amount of debt originated over the period of time
i) Total combined minimum monthly payment from all accounts
j) Total debt obligation
k) Types of accounts opened (credit or installment loans).
There are few others in addition to ones listed above.
2. Even if you are paying before the scheduled date, it will NOT be shown on your credit report as “Paid Better Then Originally Promised”. It will only be shown as “Paid In Full” or “Balance 0”.
3. The most important factor is that 99 % of all financial institutions (especially banks) report statistics on their consumer’s accounts to the 3 major credit bureaus not more then once a month unless you are requesting to correct the mistake on their part. This means that no matter how many payments you will make during the 1 month period, it will NOT be reflected any how on the credit report. You will need to show an established credit history of regular payments to prove to all other lenders that you are in fact a trustworthy consumer.
The bottom line here is:
You have to understand the way credit works before attempting to correct it. Without proper knowledge you can actually hurt your credit.
Don’t blindly follow someone advice unless you really understand what you are doing.
Dmitry.
Yeah, this article is still pushing the same garbage that one of the big so-called Guru's either still pushes, or used to push. What he's espousing in this article doesn't even make sense in any sense of the word. Each time you ask for a loan, they ARE going to pull your credit, a HARD pull, even if you have collateral sitting in their account, which will lower your scores.