• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Is this legal ???

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Xanque

Junior Member
What is the name of your state? Pa.

I don't remember where I heard this piece of advice because I heard it many years ago. Someone told me that the best way to rebuild credit was to take a chunk of money , say $2k for example and deposit it into some type of account with a bank then borrow against that money and place it into another bank and repeat this process till 5 banks have been "visited" (for lack of a better word). After the 5th bank, take the money out and pay the first bank back , then again borrow from the first bank and pay second bank back and so on. From what I've gathered , in using this inital $2k investment , you have now built credit with 5 different banks who eventually , in turn , will establish an UNSECURED credit line with you where you can essentially "snowball" your credit if you keep doing this.

If this is indeed legal, could someone tell me what account it is one would need to start at the first bank so as to borrow against your own $2k investment ? It just seems too easy , hence my caution and inquiring mind. Thank you for any responses you may have for me.
 


Veronica1228

Senior Member
Xanque said:
What is the name of your state? Pa.

I don't remember where I heard this piece of advice because I heard it many years ago. Someone told me that the best way to rebuild credit was to take a chunk of money , say $2k for example and deposit it into some type of account with a bank then borrow against that money and place it into another bank and repeat this process till 5 banks have been "visited" (for lack of a better word). After the 5th bank, take the money out and pay the first bank back , then again borrow from the first bank and pay second bank back and so on. From what I've gathered , in using this inital $2k investment , you have now built credit with 5 different banks who eventually , in turn , will establish an UNSECURED credit line with you where you can essentially "snowball" your credit if you keep doing this.

If this is indeed legal, could someone tell me what account it is one would need to start at the first bank so as to borrow against your own $2k investment ? It just seems too easy , hence my caution and inquiring mind. Thank you for any responses you may have for me.
I've never heard of this before, but it sounds crazy to me. Having your funds on deposit at a bank does nothing for your credit, and why would you need to pay any bank back? This just doesn't make sense.

I recommend you go to the site below for information on rebuilding your credit.

www.creditinfocenter.com
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top