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the card, which can range from $20 to $50 for premium cards 
such as MasterCard Gold and Visa Gold. While Gold cards 
traditionally require a higher annual fee, they typically 
offer higher credit limits. For the purposes of this plan, 
we do not recommend obtaining a Gold card. Take a look also 
at the grace period various banks allow between the time of 
purchase and when interest starts to accrue. If a bank 
offers no grace period, you will still be charged interest 
on your balance in full after each billing period. Again, to 
find out about rates, fees, and grace periods, you can pull 
out the Yellow Pages and call around locally. The business 
sections of major newspapers also often carry ads by local 
banks promoting the features of their credit cards.  
However, you do not need to apply for an unsecured card from 
a local bank. Computer networking makes it easy to quickly 
access any bank, and most are eager to have new credit card 
customers, regardless of where they live. You can find a 
list of U.S. banks offering low interest rates for Visa and 
MasterCard in the Bank-lists booklet contained in this 
document.  
Approaching the Bank 
Once again, have the new information about your secured 
credit card included in your credit bureau file. Now go to a 
bank and apply for whichever credit card (Visa or 
MasterCard) you do not already have, using your bank loans 
and current credit card as references. When the bank refers 
to your credit file, they will find you have an impressive 
payment history and another credit card with no outstanding 
balance. They should be more than willing to give you a 
regular, unsecured bank card.  
Freeing up Your $1,000 
At last, you need to have your $1,000 savings account 
unfrozen and the credit card released from it's secured 
status. Go back to the bank where you began this process, 
and inform the loan officer you now have an unsecured Visa 
or MasterCard. Explain that you received this card based 
upon your excellent payment history you established with 
their bank card. Ask now to have the hold placed on your 
savings released. If he/she is hesitant, suggest that you 
will leave your money in the savings account, But no longer 
want it frozen. If the officer still seems reluctant, you 
can politely say that you will then have to return the 
credit card and close your account with them. In most cases, 
the bank will not want to loose you as a customer and will 
honor your request.  
However, if these efforts fail, then go ahead and return 
your card and close your account. Go to the bank that gave 
you your unsecured credit card. Tell them that you like 
their services and rates better than where you previously 
banked and want to shift your Visa or MasterCard (whichever 
one you do not already have there) to that bank. Your second 
unsecured credit card should arrive in the mail soon after! 
 
Step 4 - Department Store Credit Cards
Instant Credit 
With the first three steps completed, you should feel like a 
credit-building pro and be proud of your new credit profile. 
This next step is easy. Because you already have a Visa and 
MasterCard, the credit world is wide open and waiting for 
you to sign on.  
Most major department stores offer a form of instant credit 
- providing you with their store credit card just because 
you possess a major credit card, so they can collect the 
interest instead of Visa or MasterCard! Best of all, 
department store cards are issued on an unsecured, 
deposit-free basis!  
You usually will be asked to fill out a brief application 
form, show your I.D., present at least one major credit card 
- and you are accepted! This can sometimes be done right 
while you are making your purchase, or at a special customer 
relations desk. Many stores are even offering free gifts or 
special discounts to customers applying fir instant credit. 
Be cautious, however, to apply only for cards in stores that 
you normally shop at. A dormant credit card does not look 
good on your credit report.  
While many stores of all sizes now offer their own credit 
cards, for our credit-building exercise it is best to obtain 
one from a major department store chain with locations 
around the country.  
Department Stores Offering Instant Credit 
Below is a partial list of U.S. department stores offering 
instant credit. Many may have store locations in your area. 
All stores listed here report to the credit bureaus.  
Bacons 
Lazarus 
Neiman Marcus 
Broadway 
Lord & Taylor 
Nordstrom 
Castner Knott 
Macy's 
J.C. Penny 
Dillards 
Marshall Fields 
Sears 
Halls 
May Company 
Maas Brothers 
Jordan 
Marsh 
Mervyns  
Step 5 - Nurturing Your Credit
Congratulations! By now you have three bank loans, Visa, 
MasterCard, and perhaps several major department store 
credit cards. We have has planted all the seeds you need to 
cultivate a healthy credit profile. Now it's up to you to 
take care of your new credit record and allow it to grow 
with you as you build a more secure financial future.  
Loan Scoring System
Loan Application Scoring System 
Each bank has a credit scoring system that determines the 
acceptability of the borrower. This scoring system takes 
into account your income, length of employment and 
residence, etc.  
The five major factors that all lenders give high importance 
to are:  
1. A salary of at least $1,500 per month 
2. At least 5 years at present address 
3. Employed at present job for at least two years 
4. A "paying on time" credit history 
5. A telephone in your name 
Credit Scoring System 
(This is a sample of the system of a major bank.) 

Factors_________ Score__________ 

1. Years at job:
a. Less than one year 0
b. One or two years 1
c. Two to four years 2
d. Four to ten years 3
e. Over ten years 4

2. Monthly income level
a. Less than $1,000 0
b. $1,000 to 1,500 1
c. $1,500 to 2,000 2
d. Over $2,000 3

3. Present obligations past due
a. Yes 0
b. No 2

4. Total monthly payments to income
after taxes comparison 
a. 50% 0
b. 40 to 49% 1
c. 30 to 39% 2
d. Under 30% 3

5. Prior loans at any branch bank
a. No 0
b. Yes, but not closed 0
c. Yes, but closed with two or less
eleven-day notices per year 2

6. Checking account at this bank 
a. None 0
b. Yes, with over five rejected items 
over the past year 1
c. Yes, with no rejected items