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Credit
Card Insights
A D V E R T I S E M E N
T:
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The cards we are going to
discus here are the Mastercard and Visa only. Banks and Savings
& Loans issue these. You can either purchase goods and services
using this card or go to the institution who issued you the card and
get cash advances, ie., get cash directly against the
card.
To obtain these
cards, one has to have very good credit or reasonably good credit.
Checking your credit can be done in different way. One way is
by writing to the Credit Bureau near them and getting your credit
standing in the Bureau's Credit File. Another way is to evaluate
you by their own standards of point system (please see table
at the end of this chapter).
To get a quick
guide of institutions issuing credit cards, get out your yellow-pages
and look under Banks and Savings & Loans. Call them and
make a list of the ones issuing these cards and then go to them
and pickup their applications and keep them ready. Then go through
this book and write all the ones listed and get their applications.
Get a hold of other institutions using the yellow-pages of major
cities and get their applications. Then when you have enough
applications at hand, fill them all up and mail the ones from
zip codes starting 0 to 5 the first day, the ones of zips 6
to 8 the next day, and zips 9 the third day, so they all reach
the institutions the very same day (for California only - other
states please improvise).
If you get accepted
in 10 out of 30, each with a credit limit of $1,000, you can
have access to $10,000. This is one of the quickest ways of
obtaining a loan in the shortest time (and the safest).
A sure-shot way
of getting credit card is the secured cards. These are credit
cards issued against your depositing cash in that institution.
If you have saving or other checking accounts, then you might
as well have it at their institutions which give credit cards
in return. The credit requirements of these mentioned ones is
not very stringent. A good way to raise your credit limit on
the secured credit cards is to take cash advances and re-deposit
the cash (and pay the debt) till you reach your credit limit.
A
D V E R T I S E M E N T:
Trouble obtaining that loan? Be approved for bad credit personal
loans for any purpose.
Visa
and/or Mastercard
There are special
bankcard agencies that will issue a Visa and/or Mastercard to
anyone that opens a $300 savings account at their bank regardless
if the person has bad credit or no credit. It makes no difference
if you have a bankruptcy. You're guaranteed the cards regardless
hoe bad you credit might he if you open the savings account
at the bank! You would receive your card within 30 days from
the time you open your savings account with them. The credit
limit on the card matches dollar for dollar with the amount
of money in your savings account.
A lot of people
can't part with $300 for long because of bills that are pressing
them. There's a way around this. Go ahead and open the savings
account and get the card. Then go to a Western Union and make
a $300 cash withdrawal on your card and you have your money
right back plus the card. Even though you can't charge anymore
because you've reached your credit limit, you can still use
the card for identification or check writing purposes. Then
you can pay your bill down a little at a time as opposed to
putting up the entire $300 at one time and leaving it in the
savings account.
Another way to
get around not paying out the entire $300 at one time is for
you to work with a close family member or friend in splitting
the $300 cost to get the card. Decide on which one of you is
going to apply for the card first. And when that person gets
his card he's to make a $300 cash withdrawal on it so the other
person can apply for his card. When the second person gets his
card he's to make a $300 cash withdrawal on it also and give
his partner his $150 investment back. This procedure will work
for as many as 3 people putting up $100 each to help each other
get their cards.
There's also a
maneuver that a person can utilize with his secured card that
will show him more credit worthy than he actually is. It will
cause banks to loan him more money and quicker. And it will
make creditors want to give you things that they normally would
not have. In order to do this you have to be patient and you
can't make any charges on you card until you've gotten where
you want to be. If you can afford it secure you a Visa and Mastercard.
Use one for your personal charges and use the other for the
following purpose.
First of all,
the bank that issued your secured card will report to the credit
bureau the transaction. And on your credit report will be the
banks name along with your credit limit and credit ratio. At
first your credit limit will be only $300 if that's all you
put in the savings account that's required for the card. When
you get your card make a $300 cash withdrawal on it and put
it in the savings account you used to get the card with your
original $300. Then you'll have $600 in the saving account-
and the bank will report this to the credit bureau which will
automatically boost your credit limit on your card and credit
report to $600. This move will allow you to make another $300
withdrawal on your card because you've only made one $300 withdrawal
but you have $600 in your savings account. So go and make another
$300 withdrawal on your card and deposit it into your savings
account and this will automatically boost the credit limit on
your card and credit report to $900. Repeat this procedure and
your limit will he $1,200. continue until you feel that your
monthly payments have reached the limit of what you want to
pay. Some people have reached a credit limit on their credit
report of $5,000!
The object of
this maneuver isn't to reach a high credit limit on your card
but rather it's to show the highest possible credit limit on
your credit report. Even though your card may have a $5,000
credit limit the fact remains that it's all charged up. But
when creditors or banks see a $2,000 or $5,000 spending limit
on your credit report they'll think that you are a preferred
customer at the bank that issued you the card. They know that
banks don't give out $2,000 - $5,000 spending limits on a major
credit card to anyone so therefore they'll think that you are
somebody special and will be glad to give you the loan or whatever
you're applying for on credit within reason especially if they
can look back over time on your credit report and see that you
made your payments on time every month. But what they won't
know is that you were not a preferred customer at the bank but
rather you took advantage of a special Visa and Mastercard program
that required for you to secure the card by opening a savings
account at the bank with a minimum of $300. And that you legally
maneuvered your way to a $2,000 - $5,000 or more spending limit
that made you look like you were a preferred customer at the
bank. But as the old saying goes, "What a person doesn't
know won't hurt him." In rebuilding credit it takes time
to walk up the credit ladder. Utilizing this maneuver you'll
get things on credit in a few months that would have taken a
few years to get if you had not done it because it made you
look more credit worthy than you actually were according to
the standards of most creditors.
The National Credit
Bureau is the largest bankcard agency in America that offers
a secured Visa and/or Mastercard. Their telephone number is
1-800-433-2455. If you call them requesting their application
package they'll send it to you for $39.95 which is a non-refundable
fee that covers the expense of setting up your savings account
at Transcontinental bank and issuing you the cards. After they
receive your application they'll contact you back in 2 - 3 weeks
letting you know that your account has been opened all the paper
work is complete and all that is needed is your $300 deposit
for your savings account. After you send in your $300 deposit
you'll receive your Visa or Mastercard in 2 - 4 weeks. And it's
just that simple.
Most people charge
their credit card and pay installment payments each month on
a fraction of their debt. Now that is exactly what the issuing
banks want you to do because you are helping them to stay in
business. In fact, that is how the banks make their money. However
it is your loss in the interest you pay. The new tax laws do
not permit you to take any deductible on the interest payments
of your revolving debt. The right way to charge is to pay the
entire balance WITHOUT paying any interest. That you establish
credit as well not pay any interest. Which essentially means
that you borrowed the money FREE for that period of time. At
the same time, the each in hand can be deposited in interest
bearing deposit to EARN interest money for you. So if you do
not pay in each for your purchases (assuming that you already
-have the each in your hands) but charge it every time at the
same time keeping the each in hand in an interesting bearing
account actually makes you money; which you would have lost
if you would have paid by each.
How long do you
think you could charge and not pay back WITHOUT paying any interest
on it ? About one month, right ? WRONG !! It is actually two
months. Let us show you how:
Take this case:
You have a billing date of the 30th. That means the bank bills
you once a month or charges accrued during the month, &
the bill comes to you dated the 30th. This bill includes all
the charges entered on your account up to the end of business
on the 30th. You do not have to pay any of these charges for
25 days after the billing date. After 25 days, interest begins
to mount up at 12 to 18 percent in most. So you start with 25
days of FREE credit.
Example: If you
make a local charge -before 3 pm on the 29th, a Monday when
Tuesday is not a holiday, and your bank is the same as your
retailer's, your real Charge Date is one day later. That is
the 30th, but your billing date is the 30th so the charge will
appear on the bill of the 30th, and you will have to pay it
25 days later.
But suppose you
made the purchase after 3 pm on the 29th. Then your real Charge
Date is now two days later, or the 31st. That is because the
charge receipts are deposited a day later by your merchant in
his bank.
You will have
skipped over the billing date. The charges will not appear until
the next billing date...which is 30 days hence. And you will
not have to pay for another 25 days.
You get 55 days
plus the two days between charge date and real Charge Date,
for a total free credit of 57 days. By simply shifting your
chare form before 3 p.m. to after 3 p.m., you gain 32 additional
days of free credit.
Obtaining Additional
Credit
Now that you have
the knowledge of how to start building a strong credit profile
in your new credit file, you might want additional credit. DON'T
BE IN A HURRY TO DO THIS! If you follow my procedure you'll
have 3 banks behind you. Concentrate on improving your ability
to borrow money from them and getting other banks behind you
if you can. After you pay off your first secured loan, ask the
bank loan officer what it takes for you to get a small loan
without having to secure it with a savings account. That's what
you concentrate on and follow their advice so you can start
getting loans on your word! Then you're on your way!
When the doors
to the credit world open for most people they start charging
things they really can do without, mainly material possessions.
I recommend that you concentrate on you being able to borrow
the money for the material things you want in life. Then concentrate
on your ability to travel by getting a couple of airline cards
along with car rental, car repair cards, and a couple of gas
cards. Other than this you might want to get a finance company
behind you.
ALWAYS
REMEMBER THAT ONCE YOU'RE IN GOOD WITH A BANK, NEVER LET THAT
RELATIONSHIP SOUR AT ALL COSTS!
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