The Secret to Getting a Better Credit Rating Easily
It is almost impossible to survive financially without a good credit rating. Let’s face it we as Americans spend more then we make and we get in trouble. Too many of us are in a one income household barley making ends meet so we end up skipping a bill one month to pay something else, and well that is a fact of life.
Its a fact of my life anyways, but it seems as if that is all I can do presently. I wish I had the money to pay every thing every month but that is so not the case. Perhaps someday it will be a girl can dream can’t she?
You see these web sites on the net promising to help you get triple A credit within a certain time frame. Does this work? I don’t know simply because I don’t have the money to gamble with I need to use the money I make at my regular job ands the money I make here as Associated Content wisely.
A friend sat me down.
A kind and well meaning friend sat me down one day and gave me a heart to heart money talk. What he told me made sense but I didn’t see how these ideas would work to help me. He told me I could have a triple A credit rating within a few months and I thought he was crazy. I bring home just enough to keep my head out of the proverbial water and survive being a single mom paying all the bills.
I know when you have no money at all and your assets are all frozen because of debt (bankrupt), no bank or other lending institution will lend you a penny. I think that creating a credit rating where you can eventually borrow almost unlimited sums would be darn near impossible, given what I have know from my 20 years of being an adult here in the real world..
In fact, with no cash at all, it is almost impossible. However a small amount is needed to try and unbury yourself from the mess you have created. He went on to further explain in detail giving examples of how I could do this as well.
The plan
He said to gather what I could sell from around the house and try to raise at least 1000, of which I’d put half in a high interest savings account and the other 500 dollars into my regular savings. I am thinking if I had a car that would work, but I don’t. I have a house that I can not afford to do a second mortgage on and since I’ve never had much money to begin with I don’t have a lot of high priced items to sell.
He went on to say that after that money is in the high interest savings account for a week, to go ahead back to my bank and get a loan for 500 dollars. I went on to say when I was with the ex husband we had a car repossessed and I have 20,000 dollars in student loans still to pay off. No bank is going to loan anything to me. He told me how I was wrong.
He said if I could get a secured loan by telling the bank to put a hold on the 500 dollars I had put in the high interest savings account. This way they would get their money back in case I couldn’t make any payments. This made sense to me and the bank already said they would do that a few years ago with 500 dollars which was just sitting in my regular savings account. The difference this time would be that it was a high interest baring account and not my regular savings account. The ex-husband who also spends money like it was water was also gone so I didn’t see how it would hurt to try this one again.
He went on to say that once I had borrowed 500 dollars in hand to go do the same thing at another bank, first put it in a high interest savings account and then a week later to borrow the 500 dollars. That didn’t seem completely legal to me because I was not using my 500 dollars here it was the 500 dollars I had borrowed. He said it was legal because I had taken out the loan for it and by signing the loan papers I was making my self responsible for it.
He said to use that 500 dollars I had put into my original saving account to pay for the loans and the interest would be mine after I paid off the loans in the high interest savings accounts. I understand what he is saying but I still have doubts because it does seem too simple to be true.
If this was so easy wouldn’t everyone be doing it? I thought but maybe not, perhaps no one else does it because they have not thought about doing it. What if I did the process of getting these 500 dollars dollar loans in a few more banks and using it to open the high interest savings accounts at a few banks?
If I do it at only the original 2 banks that’s 2 positive ratings on my credit rating. If I did it at 4 that would be 4 positive marks on my credit rating, hey this is sounding good. In my way of thinking, the more positives on my credit rating the better.
The reality
However I can not afford the repayment on 4 bank loans when I am really just treading water here, I can do this at one bank but not 4 of them. Some one could get into serious trouble by doing this at so many banks. I think a huge accomplishment would be to get one loan and pay it off and begin the process of rebuilding my credit slowly yet wisely.
So my plan is to raise the 1,000 and toss half of it into a high interest savings baring account and then get 1 loan at the same bank and begin making payments on that loan with the 500 dollars in my other savings account.
That way I am not taking money out of my children’s mouths yet I am still rebuilding my credit slowly, which is better for me. I’ll have one more good rating on my credit report and that is a good start.
I’ll also be rebuilding my credit and I feel if I can show my bank that I am trustworthy by repaying that first loan on time, every time then perhaps in a few months I can pull another loan to buy a nice used car with.
A good credit rating can help you get a good job, it shows employers that you are trustworthy and all employers want that. I want a good job, one that allows me to live a bit more comfortably.
