Secrets that well-known credit
gurus deploy to build their customers’
credit.
How to file a note/agreement
accompanied by UCC 1.1
Sample of a promissory note
Releasing the collateral.
Sample of a security agreement
Another Way out; A corporation
7.1 What you need to set up
a corporation
7.1.1 Business address
7.1.2 Nature of business
7.1.3 Social security number
7.1.4 Type of business
7.1.5 List of officers
In life, the successful ones
usually have the edge over the
unsuccessful ones. This edge
could be in the form of a secret
or an ability that not everyone
has. Guess what? We have
here for you on a platter of gold
an edge over others. Something
others have known that
have made them more successful
than you. Now you get the
chance to be as successful. This
content is one of the biggest secrets
used by renowned credit
gurus to build their customers
credit. Don’t be marveled yet.
Scroll down and as you step into
financial enlightenment.
This information will show
you how to add personal loans
and leases to your credit report.
Banks adopt this technique as
well as auto dealers and property
managers. Article 9 of the
commercial code has provisions
dealing with secured transactions.
Secured transactions
refer to any transaction where
the collateral is used to secure
terms. This is technique will
teach you how to create a UCC
that you will eventually use in
your credit file.
Credit bureaus are connected
to a public filing database.
This database updates every
24-72 hours, automatically receiving
all liens and bankruptcy
information after it is filed at the
federal, state or county level.
UCC financial statement happens
to be a form of public filing
usually filed with your local
county register’s office. As part
of their investigation, credit bureaus
check public records. The
reports of these public records
affect your personal and business
credit rating.
How to file a note/agreement
accompanied by UCC-1
Two or more parties enter into
a loan agreement and make it
legal by signing and notarizing it.
The secured party (the party
giving the loan) then files a
UCC-1 to show that the collateral
has been secured. N.B. a
UCC is a financial statement
that shows that collateral is held
between parties for an agreement
between the parties. The
UCC is available to the public.
The UCC is then amended
to show that the collateral is being
released as the loan is paid
gradually just as it is stated in
the agreement.
Eventually, the UCC is terminated
upon the full repayment of
the loan.
For better understanding, I
will use an illustration. Mr A request
a loan of 10,000 dollars
from Mr B. Since A trusts him to
pay back, he agrees to loan him
the money on the condition that
Mr B will file a UCC-1 and show
some collateral to secure the
loan. Mr A requested the loan for
three months. Hence, Mr A did
not charge any interest.
Mr A used a bike, some computer
equipment and an old car
as collateral. They agreed that
A would pay back $3.333.33 a
month for three months. They
decided that property would be
released each month after payment
till the payment is terminated.
They also agree on the order
in which they will be issued. Mr
A tells Mr B to keep possession
of the property but only collects
their security numbers.
After reaching all this agreement,
they reduced it to writing
on a piece of paper. The paper
(agreement) lists the collaterals
as well, making it a security
agreement. Then they proceeded
to a local notary to get the
promissory note (that piece of
paper) witnessed/signed. After
this Mr B gives Mr A the money.
What is now left is for Mr B to
fill out a UCC-1 financing statement
for that agreement that
they signed.
Before Mr B files a UCC, he
must go to the local courthouse
to get the original agreement
registered with the county. This
is at your local County Register’s
office. In case your county
gives you a hard time registering
the agreement (because
some of the local counties can
give you a hard time if the promissory
note does not involve real
estate) simply file agreement
alongside your UCC-1. Then
after each month of loan repayment,
the UCC-1 is amended to
reflect the refund and the eventual
termination of the secured
agreement after three months.
I know that the question on
your mind right now is, has this
improved anybody’s credit report?
Let me explain that to you
promptly.
When the creditor files the
UCC-1, a file number is created
which can be referenced to the
UCC-1 and is also linked to the
agreement relating to the UCC-
1. So any investigating credit
bureau will find that UCC filing
against the person (or corporation
– for business credit). This
will urge them to find the agreement
related to the UCC and
know what the UCC transacted.
It’s only that agreement that has
details of the loan agreement.
Hence, the Bureau can get a
clear picture of your financial position
by checking the UCC and
its corresponding agreement.
In our above illustration,
the UCC-1 filed by Mr B will be
trace to the agreement. Then
the monthly payment if followed,
will be recorded monthly. This
will show how the collateral was
released monthly and the eventual
termination of the UCC after
full payment. As a result of this
Mr A’s credit report will develop
a solid trade line.
How do you bring this kind
of transactions that have improved
your tradeline to your
Credit report?
This very simple. There is
a section for UCC in all credit
reports, whether personal or
business. So the UCC-1 and
agreement/promissory note
that has been made for your
transaction reference for your
credit report. When the Bureau
pick up this public records and
find out that you cleared your
debt and recovered the collateral
when due, your credit line
is improved. Please note that it
is usually the trade line of the
debtor that is improved.
How do you get the necessary
documents?
This is very simple
The UCC financing statement
form can be obtained from
the website of your county Register’s
office or from the office
itself.
What you have to do is to fill
in the appropriate information.
The main purpose is to record
the particulars and descriptions
of the collateral that is used to
secure the agreement.
The office of the Register is
there to help you file the UCC.
The agreement or promissory
note, on the other hand, is
what You can write by yourself.
You don’t need a lawyer to
do these things.
