Methods of establishing credit

• US 7,607,570 B1
• Filed: 05/07/2004
• Issued: 10/27/2009
• Est. Priority Date: 10/02/2002
• Status: Expired due to Fees

• Current Assignee: Eufora LLC
• Original Assignee: Eufora LLC
• Inventors: Constantine, Tommy
• Primary Examiner(s): St. Cyr; Daniel
• Application Number:
  US10/841,062
• Time in Patent Office: 1,999 Days
• Field of Search: 235/375, 235/379, 235/380, 235/381, 235/382
• US Class Current: 235/375
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: G07F 7/086 by passive credit-cards adapted therefor, e.g. constructive particularities to avoid counterfeiting, e.g. by inclusion of a physical or chemical security-layer for security documents G07D7/00; for the reading of record-carriers in general G06K7/00; for the design of coded credit-cards G06K19/10

Abstract

A method for building credit may include providing an authorized user of a pre-paid card issued by a service provider. The service provider may charge the authorized user a fee for the pre-paid card and establish a loan loaning the authorized user an amount equal to the fee under loan terms specifying a repayment schedule. The repayment schedule may include periodic installments and a minimum amount due for each of the periodic installments, where the loan may be independent from the load applied to the pre-paid card. The authorized user repays the loan in accordance with the loan terms so as to create a credit history. The service provider may report the credit history to a credit bureau to improve a credit score of the authorized user.

Claims

1. A method comprising:

providing an authorized user of a pre-paid card issued by a service provider;

applying a load to the pre-paid card;

the service provider charging the authorized user a fee for the pre-paid card, and establishing a loan loaning the authorized user an amount equal to the fee under loan terms specifying a repayment schedule including periodic installments and a minimum amount due for each of the periodic installments, the loan being independent from the load applied to the pre-paid card; and

the authorized user repaying the loan in accordance with the loan terms.

2. The method of claim 1, further comprising:

the authorized user establishing a credit history in conjunction with repaying the loan; and

the service provider reporting the credit history to at least one credit bureau.

3. The method of claim 1, wherein in response to the authorized user repaying at least a portion of the loan in accordance with the loan terms, the service provider submitting an entry into a sweepstakes on behalf of the authorized user.

4. The method of claim 3, further comprising conducting a drawing from entries of the sweepstakes, wherein the entry of the authorized user is one of the entries.

5. The method of claim 1, further comprising:

the authorized user applying a load to the pre-paid card; and

in response thereto the service provider submitting an entry into a sweepstakes on behalf of the authorized user.

6. The method of claim 5, further comprising conducting a drawing from entries of the sweepstakes, wherein the entry of the authorized user is one of the entries.

7. The method of claim 1, further comprising:

the authorized user referring a first customer to the service provider for card services;

the first customer submitting an application for card services to the service provider;

the service provider receiving, processing and approving the application and issuing a card to the first customer establishing a first referred authorized user of a card; and

in consideration therefore to the authorized user

the service provider issuing valuable consideration to the authorized user.

8. The method of claim 7, wherein the first customer submitting an application for card services to the service provider further includes the first customer designating the authorized user as a referring party.

9. The method of claim 8, further comprising:

the first referred authorized user referring a second customer to the service provider for card services;

the second customer submitting an application for card services to the service provider;

the service provider receiving, processing and approving the application and issuing a card to the second customer establishing a second referred authorized user of a card; and

in consideration therefore to the first referred authorized user

the service provider issuing valuable consideration to the first referred authorized user.

10. The method of claim 9, wherein the second customer submitting an application for credit card services to the service provider further includes the second customer designating the first referred authorized user as a referring party.

11. In an authorized user of a pre-paid card issued by a service provider, a method comprising:

applying a load to the pre-paid card;

the service provider charging the authorized user a fee for the pre-paid card, and establishing a loan loaning the authorized user an amount equal to the fee under loan terms specifying a repayment schedule including periodic installments and a minimum amount due for each of the periodic installment, the loan being independent of the load applied to the pre-paid card; and

the authorized user repaying the loan in accordance with the loan terms.

12. The method of claim 11, further comprising:

the authorized user establishing a credit history in conjunction with repaying the loan; and

the service provider reporting the credit history to at least one credit bureau.

13. The method of claim 11, wherein in response to the authorized user repaying at least a portion of the loan in accordance with the loan terms, the service provider submitting an entry into a sweepstakes on behalf of the authorized user.

14. The method of claim 13, further comprising conducting a drawing from entries of the sweepstakes, wherein the entry of the authorized user is one of the entries.

15. The method of claim 11, further comprising:

the authorized user applying a load to the pre-paid card; and

in response thereto the service provider submitting an entry into a sweepstakes on behalf of the authorized user.

16. The method of claim 15, further comprising conducting a drawing from entries of the sweepstakes, wherein the entry of the authorized user is one of the entries.

17. The method of claim 11, further comprising:

the authorized user referring a first customer to the service provider for card services;

the first customer submitting an application for card services to the service provider;

the service provider receiving, processing and approving the application and issuing a card to the first customer establishing a first referred authorized user of a card; and

in consideration therefore to the authorized user

the service provider issuing valuable consideration to the authorized user.

18. The method of claim 17, wherein the first customer submitting an application for card services to the service provider further includes the first customer designating the authorized user as a referring party.

19. The method of claim 18, further comprising:

the first referred authorized user referring a second customer to the service provider for card services;

the second customer submitting an application for card services to the service provider;

the service provider receiving, processing and approving the application and issuing a card to the second customer establishing a second referred authorized user of a card; and

in consideration therefore to the first referred authorized user

the service provider issuing valuable consideration to the first referred authorized user.

20. The method of claim 19, wherein the second customer submitting an application for credit card services to the service provider further includes the second customer designating the first referred authorized user as a referring party.