Methods of establishing credit

• US 8,020,755 B2
• Filed: 12/13/2010
• Issued: 09/20/2011
• 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:
  US12/966,477
• Publication Number:
  US 20110082818A1
• Time in Patent Office: 281 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 enhancing credit of a cardholder of a pre-paid card may include issuing a pre-paid card to a cardholder. The cardholder may be charged a fee to establish a credit instrument associated with an account and the pre-paid card. The cardholder may be billed a portion of the credit instrument that includes the fee on a periodic basis, where the billing may be independent of billing for purchases of goods and services with the pre-paid card. A determination as to whether the cardholder timely paid the bill. If the cardholder timely paid the bill, then the payment may be recorded as being timely paid. Otherwise, a recording may be made that the bill was not timely paid. A reporting as to the timeliness of the payment may be made to affect a credit rating of the cardholder.

Claims

1. A method for enhancing credit of a cardholder of a pre-paid card, said method comprising:

issuing a pre-paid card to a cardholder;

charging the cardholder a fee to establish a credit instrument associated with an account and the pre-paid card;

billing the cardholder a portion of the amount owed for the credit instrument that includes the fee on a periodic basis, said billing being independent from billing for usage of the pre-paid card for purchasing goods and services;

determining whether the cardholder timely paid the bill for the portion of the credit instrument and the fee;

if the cardholder timely paid the bill for the portion of the credit instrument and the fee, then recording the payment as being timely paid;

otherwise, recording that the bill for the portion of the credit instrument and the fee was not timely paid; and

reporting the timeliness of the payment of the portion of the credit instrument and the fee, the timeliness of the payment being used to affect a credit rating of the cardholder.

2. The method according to claim 1, wherein billing the cardholder a portion of the credit instrument and the fee includes billing the cardholder an equal amount each billing period.

3. The method according to claim 1, wherein billing the cardholder a portion of the credit instrument and the fee on a periodic basis includes billing the cardholder for the entire fee over a time duration of no more than one year.

4. The method according to claim 1, wherein reporting the timeliness of the payment includes reporting the timeliness of the payment to a credit bureau that uses the timeliness of the payment to adjust the credit rating of the cardholder.

5. The method according to claim 1, further comprising charging the cardholder a second fee each successive year to keep open the account associated with the pre-paid card.

6. The method according to claim 5, wherein charging the cardholder a second fee includes charging the cardholder with a second fee that is equal to the fee.

7. The method according to claim 1, wherein issuing the pre-paid card includes issuing a pre-paid card that requires the cardholder to prepay a load prior to using the pre-paid card, and wherein the cardholder is limited to spending up to the load amount when using the pre-paid card.

8. The method according to claim 1, wherein reporting the timeliness of the payment includes reporting the timeliness of the payment consistent with the periodic basis.

9. The method according to claim 1, further comprising establishing terms by which the cardholder is to make payments for paying down the credit instrument and the fee.

10. The method according to claim 9, wherein establishing the terms includes setting a minimum monthly payment for the cardholder to pay back the credit instrument and the fee.

11. The method according to claim 1, further comprising:

receiving a referral for a potential new cardholder from the cardholder;

in response to the potential new cardholder being authorized and accepting to become a new cardholder of a pre-paid card, designating the cardholder as a referring party.

12. The method according to claim 11, further comprising issuing valuable consideration to the referring party for the referral of the new cardholder.

13. The method according to claim 12, wherein the valuable consideration is an entry into a sweepstakes.

14. The method according to claim 12, wherein the valuable consideration is a monetary payment to the referring party.

15. The method according to claim 12, wherein the valuable consideration is a debit amount being applied to the credit instrument and the fee.