Re-establishing credit 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. ****Does this work? If so what precautions should I take and does it matter if my scores are low??? Do banks really go for???
It only works If the banks will report the loans to the credit bureaus. If they do not report the loans, your efforts will be wasted. The recommended amount is usually at least $1,000. I wouldn't suggest borrowing from friends. If a person can't get $1,000 together in a reasonable time, they would be on real shaky ground having a line of credit. They need to put their time and energy into getting solvent first.
I read of similar article, but it suggested going to a credit union, they usually offer smaller loans, use the $500 as collateral for a secured loan, etc.
CU's seem to be easier at getting overdrafts for checking accounts. I just switched to a CU. i was with my "other bank" for 4+ years, I got the OD when i first opened it as a "preapproval" (no inquiry). A couple of months ago when my reports looked 100x's better I applied to increase my OD from 500-1000 denied (and they pulled EQU). I went to the CU opened a checking asked about the OD, they pulled EXP and voila I got the $500 OD. It reported the next month. I don't know if it has anything to do with me already having an OD, but if that was the case the original bank should have given me the $1K seeing as I have a perfect history with them.
I don't depend on the bank for this:I fund my own.The nice part of this is no cr pulled. no interest charges or other fees and I collect interest for doing it.
