Creditwrench exposes bad advice

Mountains Out of Molehills

"Uncle Normie did his usual rabid attack on Creditwrench today (12/15) , completely ignoring -- as usual -- most of the FACTS of the story. If "Uncle Normie" were "reporting" that the sun rose this morning, he'd try to make it sound like a shocking scandal, unprecented in the annals of humanity.

Here is the latest scam he attempts to foist off on the unsuspecting exposed for what it is.

CREDITWRENCH proposes an idea to improve your credit rating here. Problem is, not only will it do very little, if anything, to improve your credit, it will prove to be disasterous on your financial situtation.

This scheme involves borrowing $1000 from a bank by putting up $1000 dollars of your own money as security, then using the banks money to deposit in another bank etc., etc.

If you're in a situation that you're considering using a credit repair method such as this one proposed by CREDITWRENCH CEO Bill Bauer, your FICO score is most likely in the 450-550 range.

With a score in that range, you will find yourself paying around 15% interest on a secured loan.First whopper. Banks do not check credit when making a fully secured loan. Why should they? They have absolutely nothing to lose because if you don't pay it back they have your money in their possession so they could not lose anything at all. Now keep in mind, you are actually borrowing $3000 using his 3 bank trick. Doing a quick calculation of 15% on $3000, and that's only compounding it once annually, you will pay $450 for this $3000 in loans.

I checked with Bank One this morning and $1,000 deposited in a savings account would draw .5% interest and a secured loan to a person with poor credit would cost about 5% interest, not 15% as suggested by the jackass. So instead of $450 it would be $150 if you took the full year to pay the loan off. Since the entire $3,000 is paid off in 12 weeks instead of the 12 months then you would pay a total of 1/12th of that or $12.50 or close to that. So what we have here is another case of false and misleading information intended only for the purpose of misleading and scamming his listeners into believeing his jackass brayings. Almost 1/2 of your $1000 deposit wiped out in just 12 months to play his silly "trick". It isn't a silly trick at all. The only thing silly is the supposed truth which is obviously false and misleading. Who are you going to believe, a Bank One loan officer or a silly braying jackass. As always, before you believe what you see on the internet you need to check it out with the people who are knowledgeable and professional in the area you seek advice in. As you can see from the math, the trick is on you. Yes, if you believe his brand of "new math" then the trick would indeed be on you because you would have been duped into believeing false misinformation designed to mislead you and keep you from the truth.

He say's that the cost of the loan would be offset by the interest earned. Wrong again. First off, banks do not pay interest on their security. Anytime you use cash as security it is put into an escrow account, not a savings account.; it draws no interest for you. Wrong again. What you do is to walk into the bank and open a straight savings account. Banks cannot falsely tell you that you are opening a savings account and then behind your back put the money in some other kind of account such as a CD or an escrow account. The fact that Uncle Normie does not know that proves the rest of his fairy tale to be a complete and total distortion of the facts.

As always, Uncle Normie proves that he has no knowledge whatever about banking with the possible exception of how to write hot checks, proves that he knows nothing at all about current interest rates, and cannot even understand what he reads without screwing it all up.

This is just one among a whole litany of jackass statements full of nothing but falsehoods and misinformation intended to do nothing more than mislead those who might be foolish enough to believe him.

To make matters worse, he falsely claims to have high rankings in search engines yet is too stupid to understand that most of those listings are by others talking about him and not his listings at all.

There is not a truthful bone in his worthless carcass.