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This program is designed to lead anyone, regardless of past or present credit problems to an AAA+ CREDIT RATING. Follow each of the steps, and you will finish with three loans; a MasterCard; a Visa card; and at least two major department store cards. While using these tools to build a positive credit history, you should simultaneously work with 'A FRESH START LLC' credit clean-up to remove the negative marks from your old credit.

This six month step is important and will develop three excellent credit references to place on your next credit application. The credit bureaus record negative credit each month, but only record positive credit every six months. The "Three Bank Maneuver" is designed as a beginning method of positive credit building. In addition to banks, Savings and Loan, Credit Unions, or a combination of the three may be used. To operate this maneuver you will need some beginning cash. We recommend that you start with at least $1,000 and the more you use the better. This money will not be spent, but be kept as security in a savings account building positive credit.

The first thing is to choose three banks. Get the local yellow pages and call around. Request the loan department and ask the following questions: What is the yield on savings accounts? What is the minimum a bank will loan on a passbook savings account? What is the percent allowed to borrow? What credit bureaus they subscribe to, if they report automatically, and if so, how often?

Once the three banks are chosen, go to "Bank A" and open a passbook savings account. Do not put money in any other type of an account, even if it pays a higher rate of interest. Take the passbook home and wait three days. Return to Bank A and request to see a loan officer. Look professional, be courteous, and ask to take out a loan, placing the savings passbook as collateral. This is the easiest type of loan to acquire because it is secured with cash. Most banks will loan 85% of the amount on deposit. Given the loan, the savings account becomes frozen. However, every time a payment is made, an amount equal to that payment becomes unfrozen, less a few dollars for interest. Ask that the loan be for at least one year, with minimum monthly payments. Monthly payments establish a payment history. You will not be turned down for this type of loan no matter what your previous credit history, and in most cases it will not be checked. If the loan officer is planning on checking your credit, and you have bad credit, tell them you are trying to re-establish your credit, and that a good credit rating is very important to you.

Once an $850 loan (85% of $1,000) is obtained, take that money to "Bank B" and open a second passbook savings account. Again, wait three days, see the loan officer, and get a second loan. In our example, the second loan amount will be $723 (85% of $850). Be sure it is an installment loan of at least twelve months. Take the money to "Bank C" and open a third passbook savings account. Wait three days and go get the final loan. The final loan is $614 (85% of $723). The three bank loans total $2187, and $614 will be left in cash.

Don't worry!  As mentioned before, every time a payment is made, the amount equal to the payment, minus the interest, is made available in the account. (Figure an interest rate of 12% on the $79.33 and $8.50 is interest charged.) The interest subtracted from the $79.33 equals $70.83. This is the amount of principal paid back. Since the savings account calls for a 15% cushion above the loan amount, when the $79.33 payment is made, $70.83 can be withdrawn without disturbing the loan collateral.

By the time the third loan is obtained, the first payment of the first loan will be approximately seven to ten days away. At this time take enough of the $614 cash to make the first payment. Do this at Bank A, Bank B, and Bank C. At this time you are ahead of your due date by one week at Bank A, two weeks at Bank B, and three weeks at Bank C. $205 of the $614 is used, but at the same time about $182 of the frozen funds is available to withdraw at any time.

Wait 3 weeks and make the second set of payments. You will be approximately a month ahead on all three loans loans. On the second payment's actual due date, make the third payment at each bank with the remaining balance of the $614. Now that the $614 is spent, revisit the three banks and withdraw the unfrozen funds. This will be about $545. Now use this to make the monthly payments, always one full month ahead of schedule.

Continue this process through the sixth month. Pay off the loans in full after sixth month is reached, or follow it all the way through. It is not advised to pay them off prior to the six months, as six months is unofficially the minimum history allowed when considering an account as a possible credit reference. Remember, the reason for this process is to establish three banks as future credit references.

In the example, the interest rate of the loans was 12%. Meanwhile, the savings accounts accrued at 6%. This means net interest cost was only 6%. The amount of interest charged for Loan A is $102. The amount of interest received from the passbook savings account is $51. Subtracting $51 from $102 equals a total one year charge of $51, or $4.25 per month. Since the twelve month loan is paid after making the sixth monthly payment, the true cost is: LOAN A Six Months at $4.25 $22.50 LOAN B Six Months at $3.61 $21.66 LOAN C Six Months at $3.07 $18.42 TOTAL ACTUAL COST $65.58 $65.58 is a small amount to pay for three excellent credit references, and the original $1,000 remains. Contact the specific credit bureau that each bank reports to and ask request a "Credit Addition Form". On this form list the added credit, mail the form back to the credit bureau, and new positive credit is gained. Six months have passed, and--if credit clean-up with 'A FRESH START LLC' was utilized--the majority of your negative credit should have been erased from your credit file, and you have three excellent credit ratings.

After the three bank maneuver is completed, you should be able to get a Visa or MasterCard from any bank. If in a hurry, it may be necessary to apply for a secured card. In order to add additional positive credit to your report, use your credit card and go shopping. For example, go to a jewelry store and purchase an item that is near the maximum of your credit card. Do not buy any sale or clearance item, and find out the time limit on a return for a full refund. Purchase the item using the credit card and responsibly enjoy it, but be sure to return the item before the final return date. At this time the jewelry store will issue a credit memo for the credit card purchase. A credit to your card is the same as a payment, and will show on a credit report positively, as a "0" balance and an "as agreed" payment. Finally, go to a bank and make a cash advance near the maximum of your credit limit. Do not spend the money, but wait until the billing date and make a prompt payment in full. There is a small charge, but it will provide yet another positive rating. Now you can go to any one of many department stores, and by showing the Mastercard or Visa, qualify for one of their credit cards.

The final part of the program to re-establish credit is most likely the easiest. What is necessary to add years of excellent credit history to your credit profile is the love and trust of a friend or family member who has good credit. Each month when a loved one receives their credit card bills, they are asked if they wish to add anyone to their credit card. When they answer "YES" and add your name, a new credit card will be issued in your name. The loved one will be a co-signer on that account. In order not to jeopardize their credit rating, use their address on the application. When they receive the card, ask them to cut it in half, thus rendering it useless. The fact that a card was issued will automatically create an entry on your credit report, and instead of showing the application date, it will show an opening date of when the original card was opened and the entire credit history of that card. Therefore, without endangering your friend or relative's credit history, a positive credit history will be reported on your credit file.

You are now on your way to a new beginning.

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