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Valued Contributor
Posts: 1,455
Registered: ‎12-17-2015

Re: Credit loop hole or bust?

I've explained this before but I'll give you the skinny if you want to do this thing IMO the 'right' way ( as well as the cheapest out if pocket)

This is also great to build teen credit while college

1) Take the $1002
Deposit in an account at Credit Union A

2) Request a $500 SSL (secured loan)
Thus creating a small payment ( the overall % is generally about 2% of the $500, in other words sub $30-$40 bucks total...this will be the only "cost")

*Recap
We now have TL #1 established on the credit profile we are building ( an installer TL) We have a $12-$22/ mo payment depending on how long the loan term is ( longer the better, explain later)

** We now have an account with $1502
$500 held to secure our 'loan' and $1002 available

3) We open a $200 secured Discover card
Establishing TL #2 ( revolver #1)
We then open a $300 secured Visa
Then a $400 secured M/C
Creating TLs #3 and 4

* We now have the ideal 3 & 1 that the credit scoring craves 3 revolvers + 1 installer

We have $102 left available in our account at Credit Union A
(Remember, each secured account has funds coming back to you so no money in jeopardy)

4) Now the only obligation we have is say out $12 loan payment...
Which we charge to one if our CCs to show minimal use and an incredible management of our utilization rate

5) After the charge post on the CC we when pay our CC bill from the $102 in the Credit Union
As we pay the loan part of the $500 being held gets released to our 'available' balance in our credit union account
( Meaning technically, we never have to add a nickel to make the payments)

We are essentially playing a video game
Allowing for 3 CCs to report 'paid as agreed' monthly with only one having a balance (which is only the loan payment)
+
One installment loan is reporting 'paid as agreed' monthly
= 4 TLs are reporting

= Solid file aging together over time, with no real jeopardy...all created on $1000 and secured accounts

6) Allow 8-10 billing months to report and see score soar
10 cycles = 40/40 on-time opportunities met, this really feeds the scoring model data it wants to label your profile 'low risk' ( lower than 10 months with just one TL)

The HPs to set this up fall out of negative value in 12 months, we're at 10😉

You can build a master piece profile with no spend at all just pay the loan via the CCs no other spend make the payments prior to grace period
= No cost ( other than the nominal loan %)

Just pay with patience
New Contributor
Posts: 74
Registered: ‎07-06-2016
0 Kudos

Re: Credit loop hole or bust?


Gemini101 wrote:
I've explained this before but I'll give you the skinny if you want to do this thing IMO the 'right' way ( as well as the cheapest out if pocket)

This is also great to build teen credit while college

1) Take the $1002
Deposit in an account at Credit Union A

2) Request a $500 SSL (secured loan)
Thus creating a small payment ( the overall % is generally about 2% of the $500, in other words sub $30-$40 bucks total...this will be the only "cost")

*Recap
We now have TL #1 established on the credit profile we are building ( an installer TL) We have a $12-$22/ mo payment depending on how long the loan term is ( longer the better, explain later)

** We now have an account with $1502
$500 held to secure our 'loan' and $1002 available

3) We open a $200 secured Discover card
Establishing TL #2 ( revolver #1)
We then open a $300 secured Visa
Then a $400 secured M/C
Creating TLs #3 and 4

* We now have the ideal 3 & 1 that the credit scoring craves 3 revolvers + 1 installer

We have $102 left available in our account at Credit Union A
(Remember, each secured account has funds coming back to you so no money in jeopardy)

4) Now the only obligation we have is say out $12 loan payment...
Which we charge to one if our CCs to show minimal use and an incredible management of our utilization rate

5) After the charge post on the CC we when pay our CC bill from the $102 in the Credit Union
As we pay the loan part of the $500 being held gets released to our 'available' balance in our credit union account
( Meaning technically, we never have to add a nickel to make the payments)

We are essentially playing a video game
Allowing for 3 CCs to report 'paid as agreed' monthly with only one having a balance (which is only the loan payment)
+
One installment loan is reporting 'paid as agreed' monthly
= 4 TLs are reporting

= Solid file aging together over time, with no real jeopardy...all created on $1000 and secured accounts

6) Allow 8-10 billing months to report and see score soar
10 cycles = 40/40 on-time opportunities met, this really feeds the scoring model data it wants to label your profile 'low risk' ( lower than 10 months with just one TL)

The HPs to set this up fall out of negative value in 12 months, we're at 10😉

You can build a master piece profile with no spend at all just pay the loan via the CCs no other spend make the payments prior to grace period
= No cost ( other than the nominal loan %)

Just pay with patience

what did your score end up being once in 6 months or when u got done?

Valued Contributor
Posts: 1,455
Registered: ‎12-17-2015
0 Kudos

Re: Credit loop hole or bust?

@brittbratt
You're focusing on the wrong thing, no offense

One's score is gonna be what it's gonna be....
I gave the steps to build a beautiful thick ( darn near as perfect) as one could build from scratch profile and your question is " What's the score, after 6 months "

It's just like a trainer ( which, I am) giving a fighter the recipe to best get ready for a fight or a teacher explaining the proper study methods and yet and still question is ' but, WHEN do I get the Championship belt's

You missed the point grasshopper 😊

You work the plan, follow the formula and you come out the other side for the BETTER, period

There is no LOSING in building a solid thick profile the correct way so what answer, what # would satisfy the hare's haste when no matter what the turtle has to walk the mile either way.....why not put one's head down and just DO the work and the results will follow

Bottom line take your classes and graduate... don't fret on ' what's my starting salary gonna be in 6 months' dude/chick just graduate and no matter what you're gonna generally be better off than a drop out

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