Loans to members

While the Common Good Bank is on hold due to lack of funds (by law only MILLIONAIRES can invest in stock to start a bank), there are OTHER ways to divert corporate profits to the PEOPLE.

Open your Trado account at http://tradobank.org/

Receive a T10 credit with a T200 credit line (no minimum payments, no interest, no fees) and a 100 Trado BONUS and credit line increase to T500 after verification.

Think competition to PayPal + many member resources.

25% Trados are accepted for organic products such as spices, tea and coffee at http://tradostore.com/ and at http://creditfactors.com/

With millions of members, practically ANYTHING can be accomplished.

POSTING DISABLED - please visit http://trado.info/

Loans to members

Unread postby Christine on Wed Nov 19, 2008 2:52 am

There are two types of loans:

1) Trado loans (easy!)

2) Dollar loans (difficult, since we can't CREATE dollars)

Today I was reviewing a client's credit report and after the only two collections were deleted, the score only increased by 6 points due to the 76% revolving balance/limit ratio.

He wants to get a mortgage and the FICO score is only 672. Actually much more important than the FICO score is the large credit card debt. It's really not THAT much, under $30k and some of it is paid in full every month because it is business debt. He has his own business, but it recently slowed down.

I mentioned that it sure would help his FICO scores if we could establish a Trado line of credit and report it to the credit bureaus. It's possible to get set up with the credit bureaus, but they charge for reporting, it's WORK and now that I've had time to think about it, there are other issues to consider.

Assume that the FICO score can be increased to 750. That in itself doesn't get you a mortgage anymore, but assume that it would.

There you are, with $30k in credit card debt, a large mortgage payment, a house that needs furnishing and most likely some repairs and the economy getting worse and worse.

Do you really want to buy a house now?

Why not wait until the situation stabilized, you have $10-20k in the savings account and housing prices hit bottom?

There's really nothing more depressing than having bought a house and not being able to pay your debts.

So to all of you with businesses involving RETAIL sales, of course you want to start accepting Trados. You'll likely get a lot more business because people simply don't have that many dollars to spend right now.

And then you spend Trados instead of Dollars whenever possible and you use your Dollars to pay down the credit card debt. This client is one person who really shouldn't file for bankruptcy, unlike many others. He made good money in the past and quite likely will continue to do RELATIVELY well even in a depression.

Of course I don't like to see anyone waste money on interest to the commercial banks. He would be the perfect candidate to have Trado members refinance his credit card debt.

The members put up $20k in dollars to pay off the credit cards and they get T30k in Trados. It's not a loan, just an exchange. One person would have a tough time spending T30k in Trados, but if 100 members each put up $200, each member gets T300 and that won't be hard to spend. Not to mention that saving is NOT illegal.

The big question:

Does the borrower incur a T30k debt (the amount paid to the members to raise $20k) or is the difference considered a GRANT. And of course members may not demand that much of a premium, I just picked a number for illustrative purposes.

One could list individual loans as at http://www.prosper.com/ to see how much of a premium members demand. Or one could simply offer to exchange Dollars for Trados at a premium to see how much money can be raised. That's similar to government bond auctions and the investors determine the interest rate. Right now, that actually sounds best to me.

Trado "auctions off" Trados to raise Dollars.

Then Trado takes loan applications and has a committee decide whether to approve the loans.

The loans are repaid with Trados received from customers or with dollars. If the borrower didn't get a grant, he gets the same premium as the members who invested to fund the loan if he repays the loan with dollars.

A loan can be structured so that it is a fair deal for everyone and a viable solution for many small businesses currently hurting due to the poor economy and no chance of loans from commercial banks.

Once the debt is reduced by $20k, this client's FICO scores will definitely be above 700 and hopefully commercial banks will send a pre-approvals for BUSINESS credit cards which are NOT reported on the credit reports unless delinquent.

So then the borrower is debt free as far as the credit bureaus are concerned.

And with a little luck and the help of millions of members, the credit bureaus can shut down because nobody needs them anymore. Everybody can get Trado loans and even mortgages -- as long as they make their payments on time.

Unlike commercial banks, Trado will modify loans for cause and occasionally forgive loans. I see no reason to ruin someone's life for many years just because they got sick, had an accident, lost their job, had their house burn down, whatever. When you're not in charge of creating money to make bankers and investors wealthier, it is simply not necessary to exploit and torture people.

For references such as rentals or employment, a Trado account history can be ordered electronically for a small fee with the applicant's WRITTEN permission.

You have no idea how that will make my day!

Since the government does nothing for the people, we have to come up with ways to help ourselves.
Christine
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Posts: 104
Joined: Sat Mar 01, 2008 10:58 pm
Location: The high desert, AZ

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