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Every effort has been made to accurately represent this product and its potential. There is no guarantee
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 Contents

Click on where you want to go, and you will be taken there

The Benefits of Good Credit 3

Credit Reporting Agencies 6

Match and Control Connections 9

Make Bankers Want to Put Money in Your Hand 14

Powerful Methods that are Almost Mean 16

Watch Out for Certain Repair Clinics 22

Wage Earner Plan 24

Injunctive Relief 25

Tell Your Side of the Story 26

Motion to Vacate 27

Positive Information Plan 28

Equal Opportunity Credit 29

Start Building AAA Credit in 30 Days 30

Get Any Credit Card 33

Pay Later, Not Sooner 34

Women and Credit 36

The Free Credit Trap 38

Copyright © 2016 by CharlesMoney.com – All rights reserved.

2
 The Benefits of Good Credit

Let us begin by making a short but powerful statement. Say it to

yourself, because it is one of the most important phrases in life.

CREDIT IS THE KEY

Whether you need it or not, you must have it. It all has to do with how
other people see you. Will you do what you say you are going to do?
Are you honest? Are you a dependable, credible and reliable individual?
Are you honest? Can others trust you? That’s what credit is all about –
Trust, Honesty, Reliability, Credibility and Dependability.

You never know when you will need it. If you should need credit, you
have access to the necessities and luxuries that life often demands from
you and offers to you. If you don’t need credit, you have a very re-
assuring feeling that you know it is there, in the event that you will
need it.

Even if you don’t need it, but choose to exercise your right to it which
you have earned, you can take advantage of the OPM Principle. This is,
Other People’s Money.

Therefore, good credit has its benefits. If you have good credit, the
world of opportunity is out there waiting for you. Use good credit to
your advantage, and it will benefit you a hundred fold. Abuse your good
credit, and it will turn on you in a heartbeat.

Take Care of Your Credit and it will Take Care of YOU.

Maintaining a good credit rating enables you to obtain credit. It’s up to
you as an individual. You are the one who can make obtaining credit
Copyright © 2016 by CharlesMoney.com – All rights reserved.
3
easy or difficult. You have a benefit that is different from any other
benefit in life.

Good credit will allow you to have the things you want and need in life.
With good credit, you can live in the home you have dreamed of. You
can drive the car you want to drive. You can travel the world if this is
your desire. Credit is also relevant to your livelihood. With good credit,
you can start the business you’ve always wanted to own.

In today’s market, much of the commerce is cashless. Having good

credit should be a no-brainer, and should be taken very seriously. Lose
your good credit rating, and you will suddenly feel like the Biblical
leper, a castaway, and an outcast. All of a sudden, you feel like you just
don’t fit it.

When a person finds out that he has lost his good credit rating, he gets
a lump in his stomach. And the he asks himself, “Where did I go
wrong?” He knows he made a few mistakes that were altogether
unnecessary. But a worse feeling is waking up one morning, and
realizing that he is not quite as well-off as the guy who did not make
these mistakes. Losing your good credit rating is a stressful experience.
No more cars. No more dream home. No dream vacations. No more
credit cards. NO MORE BENEFITS. It’s like waking up and feeling like you
are the only person in the world. Then what do you do? If you are like
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4
most people, you may say to yourself, “This will blow over.” No it will
not. You have a problem. You have created it.

Now, you have to fix it. You can, and you will.

The absolute worst thing about losing your credit is facing the fact that
you suddenly cannot have even the necessities of life. Unless you fix
this, you are facing a monumental task, My Friend. And I repeat, you
can, and you will.

If you don’t know where to begin, just keep reading. I am here to help
you, and that is what I intend to do – Starting RIGHT NOW!

Copyright © 2016 by CharlesMoney.com – All rights reserved.

5
 Credit Reporting Agencies

Some people think that credit reporting agencies are as powerful as the
Internal Revenue Service. While this may not be the case, you cannot
under-estimate their power. They are very powerful. They can make
you or break you.

Going against them is almost like going to war. But that’s OK. You need
that fighting spirit. You are angry, and you want revenge. Good, but get
your revenge the right way. To show your revenge, you are going to fix
what made you angry. The best kind of revenge is when you better
yourself to get back at the people you think hurt you. Then you realize
that they did not hurt you. You hurt yourself. And no one will be hurt.
Someone will be helped – YOU. Let’s keep the wartime mentality in
effect, because you think that you have a monumental task facing you.
So, let’s approach repairing your credit with warlike tactics. You may
have lost the battle, but you’re not going to lose the war. Think
positive.

As you lose your credit, you automatically believe the Credit Bureaus
have the advantage over you. You feel like they know everything about
you. They know who you are, where you live, the name of every
Copyright © 2016 by CharlesMoney.com – All rights reserved.
6
employer you ever worked for, how many times you applied for credit,
how many times you were denied or approved, and how many times
you were late in making a payment. If you want to use Other People’s
Money (OPM), those other people look at what the Credit Bureaus
know about you. Then they ask the important question, “If I give him
my money, will I get it back?” If the Credit Bureaus say that the answer
in the past was NO, other people will not give you their money. Their
thinking is, “If he did this before, he’ll do it again.”

There are over 5,000 credit reporting and collection agencies operating
in the United States today. If you have a problem with your credit, you
may or may not be notified about it. Your file may contain damaging
information that is there, without your knowledge. Then, if you apply
for credit, the problem comes to the attention of the lender and you
are turned down, then you will find out there is a problem. The lender
will tell you that he turned you down and denied your credit because of
something he saw on the Credit Bureau’s report. This may seem a little
sneaky, but that’s the way it is.

If you know or suspect you have a problem with your credit, you can’t
possibly know why unless you get a copy of your credit report. Then,
when you are denied a loan, this is when the problem finally surfaces
and comes to your attention.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

7
Before you apply for credit, or try to take out a loan, ALWAYS get as
many copies of your credit report as possible. All you have to do is call
one or more of the Credit Bureaus listed and ask each for it. There may
be a small charge for this service. However, if your application for credit
is turned down by the lender, then you can receive a credit report at no
charge from the credit reporting agency. Don’t wait until a credit card
company, bank, or other lender denies your application for credit. Get
the credit report before you apply for credit.

Even if you don’t think there is a problem, get copies of you credit
report anyway, just in case there is any false of damaging information
in your file that you are not aware of, or that you were not responsible
for. This happens sometimes. Errors occur all the time. These are,
damaging computer errors, human errors, incorrect social security
numbers, addresses, employers, and income errors. And don’t forget
about identity theft. This seems to be popular among the white collar
criminals these days. Make sure you have not been a victim of any of
these errors. You need to get a copy of your credit report anyway, on a
regular basis. This is like exercising preventive maintenance. And you
don’t want any surprises, because they happen at the most in-
opportune times.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

8
 Speed Up Credit Approval - Match and Control
Connections

Here, I’m going to show you where you can get copies of your credit
report.

First, become familiar with the website, Federal Deposit Insurance

Corporation, and their section on Consumer Protection.

This site will help you get any information you need regarding your
credit, and your credit report.

Below is a screenshot. I was able to capture the entire page, so you can
see the top three credit reporting agencies and all the other
information on this page. You can go directly there by clicking on it.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

9
Copyright © 2016 by CharlesMoney.com – All rights reserved.
10
Below are the three major credit reporting agencies. From here, you
can go directly to them.

Equifax

Copyright © 2016 by CharlesMoney.com – All rights reserved.

11
 Experian

TransUnion

Copyright © 2016 by CharlesMoney.com – All rights reserved.

12
According to the Fair Credit Reporting Act (FCRA), the three major
credit reporting agencies are required to give you a free credit report
once, every 12 months.

There are many scam websites that offer you a free copy of your credit
report and your credit score. Don’t buy into this concept. They try to
get information from you. Why they do this is not a very comforting
feeling. Perhaps they want to get you on their mailing list. Some try to
offer you the free credit report, refuse to give it to you and then try to
sell you several products. Others could be the front runner for identity
theft. You never know what these sites have in mind. To be on the safe
side, don’t request a copy of your credit report unless it is from one of
the three major credit reporting agencies.

Banks and lenders in a certain area will usually rely on just one agency.
On the other hand, many banks and lenders use more than one. This is
to your advantage. A Credit Bureau located in another area may never
have some of the items in your complete credit history.

Your credit file may very well have numerous pieces of damaging
information in one credit report that will never show up in another
credit report. Before applying for a loan, or credit, find out which credit
reporting agency the lender uses. Then, obtain your credit report from
all three major credit reporting agencies before applying for credit.
Then, you will know the right lender to approach for credit. Once again,
if you want your credit reports, all you have to do is request them. And
as you can see, you can do it online.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

13
 Make Bankers Want to Put Money in Your Hand

If you want to apply for a loan, or for credit through a bank or other
lender that subscribes to a credit reporting agency outside your area, it
is accurate to say that some damaging information will not appear on
the credit report.

Bankers and lenders want to approve your loan and give you credit.
This is how they make their money. Otherwise, they would not be in
business for very long.

You can apply for credit from a lender that has a credit report that
shows you as a good credit risk. At the same time, you can stay away
from a lender that has a credit report that contains negative
information, and shows you as a bad credit risk. This works to your
advantage. If you do this, creditors will almost beg you to take the
money.

On the next page, you will see how this works.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

14
This is how it works.

1 Obtain a credit report form one of the credit bureaus to

determine if there are damaging entries that might cause your
credit application to be turned down.

2 Call several banks or other lenders and ask the person with
whom you speak which credit bureau the lender uses when they
review the credit history of someone applying for a loan. If the
person doesn’t know, as the person to connect you with the one
who does know.

3 Choose a bank or lender that subscribes to a credit reporting

agency that is different from the one usually used in the area.

4 Obtain your credit report from the credit reporting agency that
your selected lender uses.

5 Repeat step 4 until you find a credit report that works in your
favor, and one that shows the least number of negative entries.

6 All you have to do at this point is apply with the bank or other
creditor that subscribes to the credit bureau that has the credit
report that looks the best, works in your favor, and shows you as
the best credit risk.

Before you begin these 6 steps, it is recommended that you already

have copies of your credit reports before you begin.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

15
 Powerful Methods that are Almost Mean

Now it’s time to clean up your credit report.

When you receive your credit reports, go through them thoroughly,

with a fine tooth comb. Carefully look at every item in the reports.
Make sure each item is 100 percent accurate, and I mean 100 percent.
For every item you see that is not 100 percent accurate, make a note of
each and every detail of the item. You are going to want to dispute
each and every item in your credit report that is false, or not 100
percent true. This will improve your credit reports.

Read all of the instructions on the back of your credit reports very
carefully. Symbols may be used for much of the information entered
and you will have to understand each one. Reading a credit report can
be very confusing. To find out how to read a credit report from Equifax,
Experian or TransUnion, just click on the appropriate links. These will
solve whatever problem you have understanding your credit reports.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

16
To have damaging and negative items removed from your credit
report, you must do the following 7 things?

1 Make a list of all the false items, and, the ones that are not 100
percent true, that you saw in your credit report. If there is the
slightest dispute of any item, list it.

2 Call the credit bureau and tell the appropriate person that you
are about to dispute an item you have noted on your credit
report. This is optional. You really don’t have to do this, other
than as a courtesy.

3 To dispute an item on your credit report from Equifax, click on

the image that follows. Here, you will be given all of the
information you need as well as the instructions for disputing an
item.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

17
 4 To dispute an item on your credit report from Experian, click on
the image that follows. Again, you will be given all of the
information you need as well as the instructions for disputing an
item.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

18
 5 To dispute an item on your credit report from TransUnion, click
on the image that follows. Again, you will be given all of the
information you need as well as the instructions for disputing an
item.

6 When the credit bureau receives your dispute request online,

they will first send you an email confirming the dispute. Then they
will attempt to verify the dispute with the bank, lender, or
creditor that added the damaging information to your credit
report.

7 You will be notified of their decision by email. The time it will

take depends on the policy of the individual credit reporting
agency.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

19
This technique does work. It will get rid of the negative entries on your
credit report. Here are three reasons why:

 First, the bank or credit reporting agency may have turned it over
to an attorney or collection agency. In this event, they will no
longer be authorized to give out any information on the item.
They would refer the credit reporting agency to the collection
agent. Then the credit reporting agency will have to start the
process all over again.

 If the dispute is with a collection agent or attorney instead of a

creditor, you’ll already know this from reading the credit report.
You may have to do some additional follow up work. Notify the
collection agent about the dispute and request an Identity Theft
Affidavit, or, tell them you want to send them an Identity Theft
Victim’s Complaint and Affidavit. Fill it out, get it notarized and
send it to the collection agent or attorney. This form will take
about 3 months to process.

 Many creditors that have approved credit to someone in the past

will simply not care. This will not hurt them or help them in any
way. They will not waste their time verifying the accuracy of an
old, out-of-date transaction in a credit report that is no longer any
use to them. As far as they’re concerned, this will not put any
money in their pockets.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

20
This is exactly why credit repair became such a huge industry. They
realized that, by sending tons and tons of disputes to the credit
reporting agencies, eventually bankers and lenders who received
inquiries would get tired and frustrated, and would just ignore them.

Incidentally, if the banker or lender does not respond to an inquiry

about a dispute on a credit report within 30 days, by law it has to be
removed from the credit report.

BANG! A CLEANED-UP CREDIT REPORT!

Copyright © 2016 by CharlesMoney.com – All rights reserved.

21
 Watch Out for Certain Repair Clinics

Credit Counseling and Commercial Counseling services are two

completely different things. Before you sign anything that causes more
harm to your financial situation, know who you are dealing with.

While credit counseling services are generally non-profit, commercial

counseling services, aka, clinics may charge you 30 to 40 percent or
more of your total debt. These are for the same services provided by
the credit counseling services.

Just about everyone at one time or another has experienced cash flow
problems. This was when it became difficult to pay the monthly bills
and keep up with credit obligations. When this happens, damaging
information may begin to appear in your credit file, and difficult times
can become even more difficult.

For many people, obtaining credit under these circumstances is just

about impossible, and at a time when it is desperately needed. Banks,
lenders, and other creditors don’t care about people’s needs. All they
care about is whether or not they’ll get their money back. If a person
cannot prove himself to be a good credit risk, he can forget about credit
approval.

Most people can be successful in overcoming credit rejections that

have resulted due to damaging information showing up on a credit
report. The problem that most people run into is that they become
desperate and will resort to anything and anyone who comes along
with false promises. Then they find themselves in deeper trouble
because they’ve handed out more money they don’t have to a scam
artist who gives them nothing in return.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

22
For example, there are many companies out there who offer to help a
home owner who is behind on his mortgage get a Mortgage Loan
Modification. The home owner does not contact them. They contact
the home owner. They ask for the homeowner’s approval to start the
process. And, by the way, they usually ask for around $1,500 up front.

Restoring your credit to AAA rating can be done, and it does not
happen by mishap. There are a number of techniques and methods that
can be ussed to restore your credit to AAA rating.

What is about to follow is information on techniques that have been

used successfully in the past by others. I am not recommending that
you use these. If you decide to use them, or any of the information
contained in this report, it is recommended that you first consult with
an attorney to obtain legal advice.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

23
 Wage Earner Plan

Under the Federal Chapter 13 , Wage Earner Plan, individuals with

regular income can come up with a plan to repay all or part of their
debts for a period of three to five years. The length of the period
depends on the debtor's monthly income.

Generally after this goes into effect, the debtors are protected against
creditors by law. This plan will:

 Stop creditors, collection agencies, lenders, or anyone else who

has been notified from contacting or harassing you any further.
 Immediately stop all action against you that had been initiated by
the creditor. (Note: For this relief plan to work, it must be
accepted by a majority of your creditors. If the majority agrees to
the plan, all others must comply.)
 Immediately stop interest and late charges from accumulating any
further.

This has changed from the past. At one time, relief was only available to
individuals who earned wages, aka, employees. The later statute
changes expanded it to include any person, including the self-employed
and those operating a business that is not incorporated.

You can file for the Wage Earner Relief Plan simply by contacting a
bankruptcy attorney.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

24
 Injunctive Relief

Injunctive Relief is an effective legal procedure that can remove

damaging information from your credit report, permanently. You will
require the services of an attorney. Don’t do this unless you speak to an
attorney. This is how it works.

If you can clearly show that information appearing in your credit report
is false or incorrect, and is damaging your character, credibility, or
ability to obtain credit, you can seek Injunctive Relief through the
courts. Once relief is granted, a Judge can order a Credit Bureau to
immediately stop reporting any damaging information appearing in
your credit report as outlined in the order, until such time as a trial or
investigation is conducted.

After you, or your attorney, succeed in persuading a Judge to issue an

order for Injunctive Relief, you will have from that moment on until the
conclusion of a trial or investigation, to repair your credit and obtain
new credit.

But the burden of proof is on you. You have to prove that what you are
claiming is correct.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

25
 Tell Your Side of the Story

Another way to challenge and neutralize entries that appear on your

credit report is by taking advantage of the 100-Word Consumer
Statement.

Thanks to a provision of the Fair Credit Reporting Act, when there is

something damaging on your credit report, you have the right to add a
statement to your file about it, either to dispute a mistake or to explain
your personal financial breakdown. The three major credit reporting
agencies limit this to 100 words. However, both Experian and
TransUnion allow you to add multiple statements to your report.
Equifax draws the line by allowing onlly one statement on your credit
report at a time.

This method allows you to tell everyone who obtains your report your
side of the story. A simple statement may be all it takes to convince a
bank, lender or other creditor that a negative piece of information that
is appearing in your file, was nothing more than an unfortunate
incident or event that couldn’t be prevented at the time.

For example, you lost your business because your partner was an
embezzeler. By telling your side of the story, a lender will understand
why you had problems paying off your credit obligations.

Be certain to be sincere, honest, and don’t use too many words. Never
express anger or hatred. Conduct yourself in a professional manner.
Allow creditors to give you the benefit-of-the-doubt, and the credit you
deserve. Ask the credit bureau about placing a 100-word consumer
statement into your file.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

26
 Motion to Vacate

People have successfully removed damaging items, and even

judgments from their credit files by doing what follows:

 Hire an attorney who is willing to help you with your goal of

having damaging items removed from your credit file.

 Ask your attorney to file a motion of Service of Process for the

purpose of having a damaging judgment entry removed from your
credit file. It may seem like a long shot, but in this motion, your
attorney will argue that the process was served improperly.
People have reported that this technique will ultimately work in
your favor.

 By filing a motion of Service of Process you are forcing a creditor

to appear in court with an attorney to prove the initial legal
process was done properly.

 This legal maneuver works in your favor because, if the lender

responsible for a judgment, for example, has been paid, why
would he even want to go through the time and expense of
showing up?

 If you show up and the creditor doesn’t, you win your case
through default. Then you will have the legal ammunition
necessary to have the damaging judgment information removed
from your credit file.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

27
 Positive Information Plan

According to Federal Laws enforced by the Federal Trade Commission

(FTC), if your credit report causes your application for a loan or credit to
be turned down, you have the right to add information that will show a
more positive credit history.

All you have to do is contact the credit bureau of your choice and ask
them to contact a list of banks, lenders, or other creditors whose names
you will provide, for the purpose of having the credit information they
provide on you added to your credit file. There may be a small fee, but
the good news is that you will practically be able to force a credit
reporting agency to improve the substance of your file by putting
positive entries on your credit report.

The only businesses you should list are those with whom you have had
a flawless credit relationship with. Contact the people on your list and
let them know a credit reporting agency will be calling or sending them
a questionnaire. After information has been received and verified, the
bureau can add positive items to your credit report.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

28
 Equal Opportunity Credit

Under the Equal Credit Opportunity Act, women have the right to build
up their own credit without discrimination. Women who do not apply
for credit in their own names are at a distinct disadvantage. In the
event of a divorce or death of a mate, there wouldn’t be a credit history
reflecting any positive information from the woman.

Under the Equal Credit Opportunity Act there is no reason for women
to lose their identity when they are married.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

29
 Start Building AAA Credit in 30 Days

In order for this to work, you will need $1,000. If you have more, this is
even better. If you don’t have it, borrow the money from a relative if
you can. You must get your hands on $1,000. This is very important. As
a last resort, you may be able to make this work with $500.

Once you have the money, go to a bank of your choice and deposit the
$1,000 into a basic, interest bearing savings account.

Wait a few days for the deposit to clear and post to your account. Then,
return to the bank and ask for a loan in the amount of $1,000. Offer to
use the savings account as collateral. Since the bank is already holding
your $1,000, you should have no problem being approved for the loan.

Using the money you received from the loan at the first bank, go to a
second bank and open another basic, interest bearing savings account.

Again, wait a few days for the deposit to clear and post to your account.
Then, return to the second bank and ask for a loan in the amount of
$1,000. Offer to use the savings account as collateral. Conduct the
transaction the same way you did at the first bank.

Then repeat the process at a third bank with the $1,000 you just
borrowed from the second bank.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

30
Let’s recap before going on. At this time, you have $4,000. This is
spread over three savings accounts with equal balances at three
banks totaling $3,000, and $1,000 cash on hand.

You also have a liability of $3,000, spread out over loans of equal
balances from three different banks.

From this event only, you have a net worth of $1,000.

Wait a few days. Then go to a fourth bank. This time open a CHECKING
account with an initial deposit in the amount of $1,000.

Wait a few days. Then go to each of the first three banks and make a
payment on the loan. A week later, make payments again on the three
loans, and continue paying each week until you have almost paid off
the loans. Make sure the payments are spread out for more than 30
days. Also, make sure the loans are not completely paid off after 30
days. With just about any loan, these payments will be considered to be
paid early. So you would not only be current, but ahead on the
payments.

This next step is very important, if you want this to show up on your
credit report. It generally takes about 30 days for a credit transaction,
such as a purchase, a payment or a missed payment to travel from the
records of the lender to one of the three major credit reporting
agencies. Unfortunately, lenders are not legally required to report
anything to the credit reporting agencies. When and how often they
report is not guaranteed. Some lenders report transactions daily. Some
report once a month and some report less often.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

31
Lenders that usually report monthly are as follows:

 Banks
 Finance companies
 Credit unions
 Credit card companies
 Mortgage companies
 Oil companies

There are a few others, but your only concern is that a bank is one of
the lenders included.

After the credit reporting agencies receive information on someone’s

credit account, it is their responsibility to update the credit report
immediately. However, the credit reporting agencies don’t work
together. Sometimes credit reports don’t get updated for months. This
is where you have to take charge of the situation.

If you have paid a debt early, but don’t see it on your credit report,
contact the creditor and make sure it has updated your status with the
credit reporting agencies immediately. Then, contact the credit
reporting agencies to make sure your credit report has been updated.

If a credit check is run on you now, it will show you with three active
bank loans, a checking account, and a perfect paying history for the
three bank loans, with your having paid up in advance. Thus, you are
well on your way towards building AAA credit in as little as 30 days.
From here you go on to apply for loans, credit cards, and other items on
credit. Now you have something positive in your credit file.

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 Get Any Credit Card

You should have no problem getting any credit card you want if you
follow the procedures exactly as explained in the previous section. But,
there are a few rules to follow to insure you have no problems getting
your credit cards:

 Apply for a department store card first. Purchase something and

pay the balance immediately when it is due.

 Apply for gasoline credit card listing your department store card
as a reference. Also list the three banks as references, because
you have a good history with them.

 Apply for the real credit cards – MasterCard and Visa.

 Apply for the Travel and Entertainment cards – American Express,

Diner’s Club, etc.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

33
 Pay Later, Not Sooner

Every business will get to the point where suppliers will offer terms on
balances due, rather than require payment up front or on delivery.
Their bills will marked 2/10, net 30. This means you get a 2 percent
discount if you pay within 10 days, and the bill is due within 30 days.

Many business owners will jump at the opportunity to save the 2

percent by paying early, and rightfully so. However, believe it or not,
they can help their credit rating by paying at the end of 30 days.

Why is this so? It’s all a matter of the CREDIT HISTORY for the business.
All of the companies who offer you terms will be reporting your history
to various credit bureaus. These bureaus are the ones the banks
contact when they decide whether or not to give you a loan.

By always taking advantage of the 2 percent discount, a business

establishes a paying pattern. If you’ve been paying a company’s bills in
5 days for the past year, this is what they will expect from future bills.
Suppose cash is a little tighter for one month than normal, and you
must take 20 days to pay that bill. This sends up a red flag for the billing
company.

You normally pay in 5 days. Why are you now paying in 20 days? Even
though you paid the bill well within the deadline, you have given a sign
that you had a cash flow problem. This uneven paying pattern can show
up on your credit rating. Even though all your bills are paid on time, an
uneven paying pattern can jeopardize your future chances for more and
larger credit limits.

Now, if you always pay your bills on the 25th day of the billing period,
even when you can pay them early, that month with a tighter cash flow
Copyright © 2016 by CharlesMoney.com – All rights reserved.
34
won’t look any different to the billing company. Most companies would
rather grant terms to a company that always pays on the 25th day, than
one that sometimes pays early, sometimes pays later, as this reflects an
image of dis-organization and uneven cash flow.

Also, always paying toward the end of the due period will help your
cash flow. If you pay your bills consistently, at the same time every
month, you will not be surprised by a sudden cash shortage. For
example, say you decide to pay a bill early one month. Then, the next
week, your main supplier calls to tell you about a closeout deal he has
that would double your profits.

The only problem is he can’t offer terms. It has to be cash on delivery.

Because you paid that bill early, you can’t take advantage of the special
deal. If you would have waited to pay it, your cash flow would have
allowed the purchase, and the resulting higher profit margin would
have returned the cash to pay the bill.

So, you see, paying bills later, and not taking advantage of any early
payment discounts, CAN work to your advantage. You need to consider
your future plans and decide if saving 2 percent now is really worth it.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

35
 Women and Credit

Many women complain about not having any credit. Those complaining
are those who REALIZE that they do not have credit. These are mostly
single or divorced women. However, there are many married women
who have no credit because financial matters are handled by their
husbands, and they are not even aware that they are without any type
of credit rating. This is a large problem in America today, as it has been
for many years.

Divorce seems to be the dilemma that haunts women in search of their

own good credit ratings. Either the wife did not have any credit of her
own during the marriage, or the credit she shared with her husband
went downhill during the divorce.

The key to your credit success, regardless of your marital success, is

that you build your own sole and separate credit. There are many
benefits to be gained. First, in the event that the marriage does not
work out, each spouse may part with their own credit. If the wife was
always on time with her payments and the husband was poor with his
payment schedule, they should be able to part ways with her credit
intact, and not damaged by her constantly delinquent ex-husband.

Another good reason to have separate credit is in the event a financial

tragedy comes your way, leaving you with no alternative but to file
bankruptcy. It might be possible that one partner could file while the
other remains clear.

If your husband currently has all the credit, have him place you on his
accounts as a sharer of the account. You want to be sure you share the
account but not the contractual liability. This way you will NOT be
responsible for his errors. If it does show as a negative on your rating,
Copyright © 2016 by CharlesMoney.com – All rights reserved.
36
you will be able to dispute it, considering that you only share the
account. If the account is in good standing, work on getting it on your
credit rating as you may take the responsibility for the good rating. For
men in similar situations, try the same method.

If neither the wife or the husband have any credit, then both would sign
the account as joint in privileges and contractual liability. Continue this
process until you both have enough credit to get credit singularly. Then,
as your new sole and separate accounts begin to get established, start
closing the joint accounts you once shared. The purpose of this is to
establish your credit as sole and separate.

Consider also the use of a joint checking account. A clean checking

history is very helpful in building credit. However, be wary if your
spouse is particularly neglectful when maintaining a checking account.
The end result could cause more harm than good.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

37
 The Free Credit Trap

You are constantly bombarded by junk mail. One day, you receive a
noticeable piece of mail from some official looking bank claiming that
you have been Pre-Approved for a Mastercard or VISA credit card.

Of course, you don’t have to have any credit to get this card. You can
even have bad credit or have just filed bankruptcy or even be rated as a
credit risk. It doesn’t matter because these companies want to give you
a second chance. These companies want to make it easy for you to
obtain a credit card because they only want your money.

This is how this scam works. You must send $35 to receive an
application that provides you with a name and address listing of banks
willing to give you a VISA and/or Mastercard without any credit
approval. That’s a pretty high price to pay for a sheet of paper. The
instructions that come with the application will let you know how the
plan works. You must open up a bank account with that bank, once it
approves you. What’s the advantage to this? They make it appear that
you have won the lottery, and people will feel good about themselves
that someone has approved them.

BUT WAIT! THERE’S MORE!

The minimum amount you must deposit is $200. But you can deposit as
much as you want. In return, you get a Mastercard or VISA credit card
with a credit limit up to the amount you deposit. What good is this to
you? If you have $200, and can only charge $200, that’s not credit.
Think about it. If a stranger gave you $200 to hold for him until Friday
wouldn’t you feel safe in granting them a $200 loan? I mean it’s their
own money you’ve got. If they default, you’ve got the full amount to
Copyright © 2016 by CharlesMoney.com – All rights reserved.
38
pay off the loan. It takes an idiot to take $200 from you, grant you $200
credit with your own money plus charge you astronomical interest
rates just to take the money from your hand and give it back to you.
That’s not only insane. That’s heartless. It should be criminal.

Of course to allow them to play the game called C Y A (and I know that
you know what this means), the great and wonderful banks claim to
help fix your credit report. They say that if you maintain payments in a
correct fashion, this information will be reported to the credit bureau.
Yea, right. When Shell calls the credit bureau to check your credit for a
gas credit card, your report shows 45 defaulted loans and a bankruptcy.
However, there is one company that you make payments to on-time.
Big deal. Don’t you think the rest of your bad credit will still be the
deciding factor in Shell’s final decision? You bet it will!

Look at it this way. The bank makes money from the interest off your
deposit. The bank also makes money by charging you 18% to 22%
interest for the right to use their Mastercard or VISA. Plus the bank is
guaranteed their money because if you don’t pay on time, they take the
money out of the bank account you opened with them along with any
interest you have accumulated.

Why would anyone with $200 to deposit want a credit card with a
$200 limit?

If you have $200 and want to buy an item for $200, go out and
purchase it. That way, you’ll own it lock, stock and barrel. No interest,
no payments, no hassle. Plus, you won’t owe your soul to the company.

Don’t sell out to the devil.

Credit is a wonderful thing if you use it intelligently. I know people who
charge $100 to a credit card at the beginning of the month and use that

Copyright © 2016 by CharlesMoney.com – All rights reserved.

39
$100 to make $300. It’s free money for 30 days. Then, when the bill
comes, they immediately pay the entire balance and come out smelling
like a rose with $200 to the good. Credit is also needed in certain
circumstances for establishing prestige. You can’t call in an order for
anything over the telephone unless you can charge the purchase to
your credit card. This delays you getting items you want now. Of course
you can always use your debit card. This defeats the purpose of credit.
Credit is based on the principle of OPM – Other People’s Money. Use
OPM to make YM - your money. Then, at the end of the month, pay
back OPM and still have some of YM. That’s call one thing – BUSINESS.

In fact some companies will try and make you feel like the scum of the
earth if you don’t own a credit card. I am proud to say that I DON’T
OWN one. I own several debit cards. But I do like credit. Use it in its
proper perspective.

Finally, you don’t have to take abuse just because you don’t choose to
line the pockets of the rich credit card companies. It’s insane.

Copyright © 2016 by CharlesMoney.com – All rights reserved.

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