Page 127 - Credit Matrix: The Path to Financial Liberation Red Contract

Hack #17 The Instant Loan Credit Spike Method

**Understanding the Strategy**

The Instant Loan Credit Spike Method is a strategic approach to credit building that
involves utilizing cash advances to open new credit loan and savings accounts, then
prepaying these accounts several months in advance. This hack aims to boost your
credit score by demonstrating responsible credit management and debt reduction.

**Implementation Steps**

1. **Acquiring Cash Advances**: Start by obtaining funds through the 900 cash
advance method outlined in the book. This method provides a substantial amount of
cash which will be instrumental in this strategy.

2. **Opening New Credit Accounts**: Use the cash advance to open new credit builder
loans and savings accounts. These types of accounts are specifically designed to help

build or improve your credit score.

3. **Prepayment of Accounts**: After opening these accounts, use the majority, if not
all, of the advanced funds to prepay these accounts for several months. This could be
anywhere from six months to a year, depending on your financial capability and the
terms of the accounts.

4. **Automatic Debt Reduction**: By prepaying, you reduce your debt balance
automatically over time. This decreases the amount of interest you might need to pay,
shortening the overall loan term and demonstrating excellent credit management.

5. **Utilizing Loans for Other Debts**: The flexibility of payday loans also allows you to
use them to pay down existing credit card bills or other loans, further consolidating

and managing your debt efficiently.

6. **Credit Score Fluctuation and Recovery**: Initially, opening new accounts may
cause a temporary dip in your credit score. However, this is typically followed by a
significant increase as the prepayments begin to reflect positively on your credit
report.

**Benefits**