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Bring Your Credit From Zero To Excellent In 8 Months

Aug 26, 2008
We all start with the same credit history in the beginning: none. And apparently, when you try to secure a loan, lenders see no credit as worse than having bad credit. The problem was even worse for me, since I was out of the country for seven years, and when I came back to the United States, no one wanted to even think about lending me money to build up my credit history.

It can take years to build up a credit rapport, especially when your history is blank. But, I managed to turn my credit around in just 8 months, with a little research and a lot of hard work. I was in the market for a house and a car, and I needed all three credit agencies to report that my credit was excellent.

I began by calling come of my friends in the credit field, by searching the internet, even by reading books on the subject of lending. Using the knowledge I uncovered, I started to build my plan to bring my credit from nothing to the top 80% of debtors.

The first step is to gather a list of banks and credit unions in your area. I found two credit unions and two banks within all within two city blocks of each other. I made sure I would be allowed to join the two credit unions and that everyone offered online banking for free. My first day of leg work was about to begin.

To start, youall need to research the banks and credit unions in your area, and see who can help. Make sure you sign up with institutions that offer free checking - most banks do nowadays. To begin my credit building, I opened a checking account with one of the credit unions I found, and deposited $10,000. Once that was done, I asked the credit union to extend me a personal loan of $8,000, borrowed against the $10,000 I had just deposited. This froze the $10,000 so that I couldnat use it, but it would be released once the loan was paid back.

Next, I went to another credit union with the $8,000, and opened another checking account. Once again, I asked for a personal loan of $7,000 against my $8,000, to help build up my credit rapport. I continued to do this at two more banks, until the last account held a $6,000 deposit, and I had $5,000 in hand.

My nerves set in as I realized I had just taken out $26,000 in borrowed money by using $10,000 in cash, and I started to worry that this wasnat going to work. I was afraid that I could have made a huge mistake and ruined my credit forever. It would be impossible for me to keep track of all of the accounts and the money I owed by myself, so I used online banking to make the payments for me. Turns out, everything worked out great. The loans were all paid off within 8 months, and I created a record of being able to pay of large amounts of money each month.

After all was said and done, it cost me about $1725 in interest out of my original amount when all of the loans were paid back. The banks and the credit unions all got their money for their participation in my plan, but I ended up victorious, with a stellar credit rating, and four credit cards, two of which carry limits of $25,000 each.
About the Author
To find out exactly how you can get your annual VantageScore credit report visit my VantageScore credit report website.
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