NOTICE TO ALL READERS The Authors of this file will not be held liable in any way due to loss of credit worthiness or any other losses incurred for any misinterpretation or misuse of information contained herein. All information contained in this file is used at your own risk. There is also no guarantee that all information contained in this file can be used in all circumstances. This file is merely a guide. Most information contained in this file is current to January 1993. This file does not intend, nor give, any legal or official financial advice. If you need legal or financial advice consult your attorney or certified public accountant. P R E F A C E In these current times credit worthiness is an invaluable asset to your financial well-being. Without credit, such purchases as Houses, Boats, Cars, TV's and other luxuries would be very well out our reach. Unless of course you are one of those lucky few who are very well-off. Credit worthiness is not only a luxury, it's a neccessity in our society today. This file is written specifically for those who need to restablish credit, build credit, or to those who have a difficult time maintaining credit. In the following pages you will find many interesting ideas and facts about credit. For your convenience, at the end of this file you will find the name and phone number of a recommended company that can help you further with your credit problems. BUILDING OR RESTABLISHING CREDIT THROUGH SAVINGS ACCOUNTS ( THE LEAP FROG TACTIC ) Yes, there is a way to build or restablish credit through simple Savings Accounts at local financial institutions. Step (1) Deposit $500.00 into a savings account. (Some financial institutions require more) Step (2) After two weeks has passed speak to the loan officer about applying for a `passbook' loan (A passbook loan is one type of loan which most financial institutions by using your savings as a guarantee or collateral.) Note: Once you receive the loan your savings may not be closed or reduced by any amount until the loan is repaid in full, Also there is usually a loan fee (usually a percentage of the loan). Step (3) Once you've received the loan proceed to another financial institution and follow step (2) again. Continue until you've established a minimum of three savings accounts and three passbook loans. With the last loan pay off the loan at the first financial institution. Close your savings account and pay off the second loan at the second financial institution and finally close your savings from the second financial institution and pay off the last loan. By having repaid all loans and fees the financial institutions will in most cases report the loans and paying history to their credit bureaus. Which will in turn put good A+ ratings on your credit bureaus files. The more A+ ratings you have the more chances of getting more or better credit. CASH THROUGH DEPARTMENT STORE CREDIT CARDS Ever been Short on CASH but had your Department Store Credit Cards on hand? Well theres a little secret that Department Stores don't want you to know. All you have to do is buy a Gift Certificate in any amount with your Department Store Credit Card then bring the Certificate to any cashier with a cheap item and purchase it. Once you've paid for the item with the Gift Certificate the change will be given to you in cash. CREDIT THROUGH JEWELRY STORES It is a little known fact that most Jewelry Stores don't bother to run Credit Reports on people that have a stable source of income and a small down payment for a purchase. Opening these types of Accounts is usually fast and relatively easy. This is the Easiest way to Build or Restablish your Credit History. Just make All your payments on time and in three to six months you will be reported to the Jewelry Stores Credit Bureau with an A+ rating. It would be beneficial to you to open at least two Jewelry Store Accounts. SECURED VISA AND MASTERCARD These types of Credit Cards are great for all persons in all situations (new to credit or have credit problems). Secured Visa and Mastercards can be used anywhere regular credit cards are used. They even look and feel the same (no one but you will know that the card is a secured one). These types of Credit Cards usually require you to open a Savings Account at their bank. Once you have established a Savings Account at their bank, the bank will inturn issue you a Visa or Mastercard with the limit equal to the amount in your savings account. For this type of Account the participating bank will require a Savings ranging from $250.00 to $500.00 minimum to start. There are currently only a few banks nationwide that offer a Secured credit card program (The name and phone number of a recommended company that markets a good Secured Card program is given at the end of this file). This type of credit is also put on your CREDIT FILE. SIGNATURE LOANS BY MAIL A signature loan is a loan in which no collateral is required. The loan is approved on your signature and income only. Normally, anyone with some source of income is eligible. Information you supply on the loan application determines the basis for loan approval. The lenders of these types of loans arrange everything with you by mail. No co-signers...No mort- gages...No personal interviews...No inquiries made of friends, relatives, or associates. Therefore, this type of loan allows you a great degree of confidentiality. The annual rate of interest is competitive and regulated by state government. (The name and phone number of a recommended company that can help you get these types of loans is given at the end of this file). CREDIT RE-ESTABLISHMENT Most people are not aware of this, but the Federal Laws have made it possible for you to start over with a new, clean credit report separate from your existing one! Your new credit file won't show your bankruptcy, or any other "negative" credit history you may currently have. It's true and it's perfectly legal! (The name and phone number of a recommended company that offers this program to the public is given at the end of this file). This is not a way to avoid paying your creditors.... It IS a way to get a fresh start! PURCHASING AN AUTOMOBILE WITH NO OR BAD CREDIT This can be accomplished with a reasonable sized down payment and by being gainfully employed. Big and small auto dealers can get you a loan. New auto dealers usually have an easier time getting you the loan (Depending on how bad your Credit File is). All auto dealers have what is referred to as CREATIVE FINANCING. Example: (1) Using a co-signer. (2) Putting automobile in friends or spouses name. (3) Making a bigger down payment. Those are just a few examples of their CREATIVE FINANCING. Used auto dealers also have some types of CREATIVE FINANCING, especially the smaller ones. The smaller the used car lots will usually finance the cars themselves (But watch out for HIGH A.P.R.'s. When speaking to any auto salesman be HONEST and explain your credit problem(s) to them, most will try their best to help you. FREE CREDIT REPORTS Some of you might not know this, but every time you are refused Credit or Turned Down, you are entitled to review the credit report the company used to evaluate your credit worthiness. When you receive the Turn Down notice, make a copy of it. Send the copy of the notice to the credit bureau listed on the front of the Turn Down letter and enclose a letter stating that you would like a copy of your Credit Report. FACTS ABOUT CREDIT REPORTS Credit reports contain every bit of information a credit bureau can get about you. You have the right to see your credit report FREE of charge anytime you are Turned Down for credit (you may only receive the free report from the credit bureau the company you applied for credit used). If you find something that you don't think belongs there you can contact the credit bureau and dispute the item(s). The credit bureau will research the item(s) and will either delete it from your file or just add your dispute and reasons to the file. WHERE DO I FIND ... "SECURED VISA OR MASTERCARD"? "SIGNATURE LOAN INFORMATION"? "CREDIT RE-ESTABLISHMENT"? "and other related help"? HERE IS THE NAME AND PHONE NUMBER OF A COMPANY THAT CAN HELP YOU GET SECURED VISA/MC AS WELL AS SIGNATURE LOANS EVEN WITH CREDIT PROBLEMS. THEY CAN ALSO SHOW YOU HOW YOU CAN LEGALLY START A NEW, CLEAN CREDIT FILE SEPARATE FROM YOUR EXISTING ONE: N.C.C. Co. (404)-723-7288 You may call for free information and an application 24 hours/7 days a week IF YOU FIND THIS CREDIT INFORMATION USEFUL, PLEASE PASS THIS INFORMATION ALONG TO A FRIEND OR RELATIVE, AND FEEL FREE TO UPLOAD THIS USEFUL FILE TO OTHER BULLETIN BOARDS!