Solve your debt in 5 days or less!

used about $200 of your $729, but you have also freed up 
frozen funds that can be withdrawn later.  
Now wait about another two weeks and repeat the loan payment 
process described above, making another set of payments with 
your remaining cash. At this point, you should be 
approximately one full month ahead on all three loans. With 
the balance left from your cash loan, make your third set of 
payments on the second payments' due date. By now, your $729 
should be almost depleted. Approach each bank and withdraw 
the funds that have been unfrozen to use towards your next 
set of payments.  
Continue this process until at least six payments have been 
made on each loan. You can pay off your loan in full, if you 
wish, after that point. Do not pay them off before six 
months, because this is the time frame usually considered 
when a payment history is calculated as a possible credit 
reference.  
WHAT DID THIS REALLY COST? 
In our example, the interest rate charged on the loans was 
6%. And, your savings accounts were drawing 2% interest, 
making your net interest only 4% (6%-2%). We will assume the 
loans where for one year (12 months) and that you did not 
pay them off early. Bank loan A for $900 charged $29.52 
interest, from which we subtracted $20.18 - the 2% interest 
you gained from your $1,000 savings - for an actual annual 
cost of $9.34. If you paid off your loan in six month, it 
would have cost you even less! Overall, it costs pennies to 
re-establish your credit using this method!  
That's a very small amount to pay for three fast and easy 
credit references that indicate your ability to acquire bank 
loans in varying sizes, make you payments ahead of schedule, 
and pay the loans off completely before due. These 
activities will all look very impressive on your new credit 
report! And, you should still have your original $1,000.  
Now is a good time to contact your local credit bureau (ask 
your banks which one they report to) and have this new 
credit information added to your profile. The bureaus will 
send you a credit addition form to complete and mail back. 
There is usually a small fee for each item to be added. They 
should also send you an updated copy of your new credit 
report.  
Step Two - Secured Credit Cards 
How Secured Credit Cards Work: 
Now it's time to use these bank references to obtain a 
credit card. Select on of the banks you particularly liked 
doing business with and use your initial $1,000 to make a 
deposit there. After about one week, pick up an application 
form for either a Visa or MasterCard and fill it out 
completely at home. Be certain that the card you are 
applying for allows for cash advances, and include your 
other two bank references on the application. Then meet with 
a loan officer at the bank and give him/her your completed 
form, saying that you are willing to have your $1,000 frozen 
to secure a credit card with a $1,000 line of credit.  
This type of secured credit plan is very common and is 
available to new credit builders as well as credit builders 
with a bad history. Similar to your bank loan, your savings 
is used as collateral for any debts you may accrue using the 
card. The card will look like any other Visa or MasterCard, 
so only you and the bank know it is secured by your savings. 
 
Shopping to Build Credit 
Once you have your card, use it. It is important now to 
again demonstrate a good payment record. A credit card that 
never gets used can actually reflect negatively on your 
profile!  
Go to your local shopping mall and find a store that carries 
a returnable item in the $500 to $800 range (remember; your 
credit limit is $1,000). You can select a piece of jewelry, 
a television, audio or video equipment, or other merchandise 
within this price range. Make sure you understand the 
store's return policy - you will need to be able to return 
the item later for a credit on your charge account, not just 
store credit. Purchase the single item with your new Visa or 
MasterCard, take it home, and safeguard against damage or 
theft. After several days, go back to the store and return 
the item, requesting a credit on your card.  
When you receive your first monthly statement for your card, 
you will notice a column marked Payments/Credits. Your 
credit for the returned item will show up in this column, 
although it looks the same as of you had paid for the item 
in full. Anyone examining your credit record will see that 
you made a sizeable purchase and a very early payment.  
Obtain a Cash Advance 
There is one final step to establishing your good credit 
record with a credit card company. Stop by a different bank 
than the one that issued your credit card and ask for a cash 
advance. Visa and MasterCard allow any lending institution 
that honors their cards (almost all) to make cash advances 
for varied amounts up to your credit limit. Some allow only 
a 25% cash advance, while others will loan your entire 
amount. Be advised that borrowing money in this manner 
usually costs more in interest than your card charges for 
merchandise, so it is not a good way of routinely obtain 
loans. But it is useful for our credit-building purposes 
under this plan. Since you will be charged interest on your 
cash advance from the day you receive it, you may want to 
time this transaction toward the end of your billing cycle. 
 
Let's assume that you get a 50% cash advance on your $1,000 
limit, or $500. Don't spend the money. Put it away and wait 
for your next monthly statement. Use the money to promptly 
pay back your cash advance charge on your bill. Now you have 
used a large amount of your credit limit on two occasions, 
and your record indicates both were paid back in full. Your 
credit history is looking better and better!  
Step 3 - Un-Secured Credit Cards
Low Interest Pays Off 
Before taking specific steps to obtain an unsecured credit 
card, it really pays to shop around for a bank issuing Visa 
or MasterCard’s at the lowest possible interest rate. The 
national average is presently at about 19 to 20 percent. At 
this rate, an average balance of $650 will cost you $123.50 
annually in interest charges. The same $650 balance will 
only cost you $78 on a 12% card - a savings of $45.50 per 
year.  
You also want to consider any annual fee charged for use of