METHODS OF ESTABLISHING CREDIT

• US 20090302104A1
• Filed: 08/18/2009
• Published: 12/10/2009
• Est. Priority Date: 10/02/2002
• Status: Active Grant

• Current Assignee: Eufora LLC
• Original Assignee: Eufora LLC
• Inventors: Constantine, Tommy
• Granted Patent: US 7,850,070 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• 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 improving credit of a cardholder of a prepaid card. The method may include establishing an account associated with the prepaid card. A load may be applied to the account to create an available balance for the cardholder. A credit instrument associated with the cardholder and the prepaid card may be established. An initial credit balance to the credit instrument may also be established. Payment from the cardholder may be collected, and, in response to collecting the payment from the cardholder, at least a portion of the collected payment may be applied to the credit instrument associated with the cardholder and the prepaid card. A credit history of the cardholder may be updated and reported to at least one credit bureau.

Claims

1. A method for improving credit of a cardholder of a prepaid card, said method comprising:

establishing an account associated with the prepaid card;

applying a load to the account to create an available balance for the cardholder;

establishing a credit instrument associated with the cardholder and the prepaid card;

establishing an initial credit balance to the credit instrument;

collecting a payment from the cardholder;

in response to collecting the payment from the cardholder;

applying at least a portion of the collected payment to the credit instrument associated with the cardholder and the prepaid card;

updating a credit history of the cardholder; and

reporting the updated credit history of the cardholder to at least one credit bureau.

2. The method according to claim 1, wherein the initial credit balance is established based on a fee for which the cardholder pays for use of the prepaid card.

3. The method according to claim 2, further comprising establishing terms by which the cardholder is to make payments for paying down the initial credit balance.

4. The method according to claim 3, wherein establishing the terms includes establishing monthly payments that the cardholder is to pay off the initial credit balance.

5. The method according to claim 4, wherein establishing monthly payments includes establishing 12 monthly payments over which the cardholder is to pay off the initial credit balance.

6. The method according to claim 3, wherein establishing the monthly payments includes establishing a minimum monthly payment that the cardholder is to pay off the initial credit balance.

7. The method according to claim 1, wherein the credit instrument is a credit account.

8. The method according to claim 1, further comprising establishing a second initial credit balance to the credit instrument.

9. The method according to claim 8, wherein establishing the second initial credit balance to the credit instrument is performed annually.

10. The method according to claim 1, wherein applying the load to the account is not reported to the at least one credit bureau.

11. The method according to claim 1, wherein establishing the initial credit balance to the credit instrument is secured with collateral.

12. The method according to claim 1, wherein reporting the updated credit history of the cardholder to at least one credit bureau enables the at least one credit bureau to provide a credit report based on the reported updated credit history.

13. The method according to claim 12, wherein the credit report includes a FICO score.