FORD TO MERCEDES

FOR ONLY $20 MORE

PER MONTH!
“In spite of having gone through a
bankruptcy, my credit score went from
540 to 748. Once my credit score
improved, I replaced my Ford with
a brand new Mercedes Benz with
payments of only $20 more.”
— Jimi Akiboh, Indianapolis, Indiana

DROPPED INTEREST
RATE BY 4 PERCENT!
“Since I acquired the 7 Steps to a
2
2 720® Credit Score and followed those
steps, we got a car loan and knocked our
interest rate down from 11 to 7 percent.”
— Brad Bertram, Kaysville, Utah

SAVING OVER $1,000

PER MONTH—OLD CAR
TO NEW CAR!
“If it weren’t for the 7 Steps system I’d
still be renting an apartment and driving
the old Honda. It would be a lot different
financial situation for me. All things
combined, I started to save over $1,000
per month after implementing the
7 Steps system.”
— James Anderson, Provo, Utah
 CONTENTS

Introduction 4
Good Debt Versus Bad Debt – Do You Even Need a Loan? 6

OPTION 1: Your Credit Score—Raise Those Three 8
Little Numbers

OPTION 2: The Couch Cushion Method 13

OPTION 3: Talk to Your Boss 16

OPTION 4: Extend Your Search for Financing 18

3
3 Beyond the Dealer

OPTION 5: Make a Simple Phone Call to Your Creditors 20

OPTION 6: Talk to Your Family 22

OPTION 7: Use CDs as Collateral 24

To Do List 25
A Final Thought 26
About the Author 27
 INTRODUCTION

I REPLACED MY FORD
WITH A MERCEDES,
AND MY PAYMENTS
ONLY WENT UP $20
MORE PER MONTH!
— Jimi Akiboh, Indianapolis, Indiana

HOW NICE WOULD IT BE to purchase a brand new Mercedes Benz

4 and only pay $20 more than you are paying for your current car?
4
Heck, you might be asking: How nice would it be to qualify for a
car loan, much less a Mercedes!

If you have been denied credit or offered a shockingly high

interest rate, you are not alone. In fact, Jimi declared bankruptcy
and couldn’t qualify for a loan at all, much less a Mercedes.

But guess what? Just like Jimi and the millions of other
Americans who have been denied a low interest rate or turned
down for a loan, you can negotiate a car loan with great terms. In
this booklet, you will learn exactly how to negotiate a car loan with
great terms, even when the lending environment is tight.

And, indeed, times are tight. If you have downloaded this

eBook, you have most likely been denied a loan, or offered a loan
with such high interest rates that you cannot possibly manage the
monthly payments.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 I remember the first time I visited a car dealership. The sales-
man offered the loan to me at an interest rate that was so high I
almost fell out of my chair. It made me feel sick! And years later,
I was denied credit entirely. Now I felt both sick and ashamed. At
that moment, I made a commitment to myself to never be denied
a loan again and to always qualify for the best interest rate.

My commitment to you is that this booklet will teach you:

1. Why your credit score might hurt your

chances of qualifying for a loan or a low
interest rate.
2. How to fix your credit score, if it is the
problem.
3. How you can save money each month so
5
5 that you can quickly qualify for the car
loan. And, if you are lucky enough to save
a ton of money, you might even avoid that
loan entirely.
4. Creative ways to finance a car so you do
not have to rely on a car dealership.

FOLLOW THESE OPTIONS, AND THE

PRESSURE YOU ARE FEELING WILL
BEGIN TO LIFT OFF YOUR SHOULDERS.
 GOOD DEBT VERSUS BAD DEBT
—Do You Even Need a Loan?—

6 BEFORE WE START LOOKING at all your options, let me ask you some
6 questions.

Should you take on more debt if you can’t afford it? What if
your job is not secure? Should you really be adding to your finan-
cial burden? If you don’t have a plan, will adding to your expenses
help you in the long run?

If you are financially strapped, shouldn’t you be considering

different options for your transportation needs instead of buying
another car and adding to your financial woes? Too often, people
turn to loans when they are heavily in debt and unable to manage
their monthly expenses. I often wonder:

How can you become debt-free or

fix your financial problems
by borrowing even more money?

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 The key is to differentiate between
GOOD DEBT and BAD DEBT.

If you are borrowing money with a solid repayment plan, the

debt could be a good debt. However, if the loan means you will
enjoy a couple of months of relief followed by even more financial
stress, the debt will only push you farther under water.

On the other hand, a car loan does make sense if you can refi-
nance into a lower interest rate or buy a car that will save you
hundreds of dollars each month in gasoline. The key is to be stra-
tegic with the new debt that you acquire.

When deciding on a loan,

do not base your decisions
on optimism or assumptions.
7
7 Too often, people borrow money thinking that the next big sale
and commission is right around the corner. This is like putting on
a band-aid instead of going to the hospital for stitches. Eventually,
the wound will be in worse shape than ever. If you decide that you
want to take out a loan, but you have no long-term plan detailing
how this loan will provide a permanent solution, why bother?

Ultimately, you need a plan that will get you to the financial
freedom you are looking for. If you cannot figure out how this
loan will make things better, immediately consult with a finan-
cial planner, get a part-time job to supplement the salary you earn
from your regular job, or consolidate your debt. If these options are
not available and you cannot find a way to pay your bills over the
long-term, the last thing you should do is get a loan.

If, however, you have a plan and see how this new purchase will
get you closer to financial freedom, read on!
 OPTION 1
YOUR CREDIT SCORE
Raise Those Three Little Numbers

IMAGINE THIS SCENARIO: It’s time for a new car. You find the perfect
make, the perfect color and, best of all, the perfect price.

And then your bubble is burst.

“I’m sorry,” says the finance manager, “but today’s lending guide-
lines are so strict that you qualify only for second-tier financing.”

8
8 You are a little confused. You pay your bills on time and in
full every month. You have a decent salary. But the car dealership
is telling you that, while the best loans have a 0, 1, or 2 percent
interest rate, you don’t qualify. Those “second-tier” rates he’s talking
about have a 7, 8, or even 10 percent interest rate!

There’s no way you can swing monthly payments with an inter-

est rate that high!

The finance manager goes on to tell you that the times have
changed. While lenders used to bend over backward to find a loan
for anyone, today’s environment is much different. You are lucky to
qualify for any loan. Many lenders require a score of at least 720 as
measured by Fair Isaac Corporation (FICO) before they will even
think about giving you a loan.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 In fact, because your credit score is 659 instead of 720, you will
pay an additional 5.516 percent in interest!1 If your score were
720, your interest rate would be 3 percent. But because you have
61-point difference, you will pay 8.516 percent in interest. This
means you pay an extra $1,103 per year on your $20,000 car.

And here’s the tragic part: It might not be your fault.

About eight out of every ten Americans have

mistakes on their Experian, TransUnion, or
Equifax credit reports!2 And making matters
even worse, about a quarter of those mis-
takes would cause a credit card company,
bank, or other creditor to deny a loan.3

9 That’s downright unfair, wouldn’t you say? Why should you

9
lose a loan because of someone else’s mistake?

Here’s another thing that is flat-out wrong:

If the limits on your credit cards are not

reported correctly, your credit score will
drop. And guess what? Almost half of us
have credit reports that are missing at least
one credit limit.4

1. www.MyFico.com, 2/13/08
2. 2004 U.S. Public Interest Research Group Study – http://uspirg.org/uspirgnewsroom.
asp?id2=13650
3. 2004 U.S. Public Interest Research Group Study – http://uspirg.org/uspirgnewsroom.
asp?id2=13650
4. 2004 Federal Reserve Board Study http://www.federalreserve.gov/pubs/bulletin/2004/sum
mer04_credit.pdf
 ABOUT HALF OF AMERICANS
HAVE CREDIT SCORES THAT FALL
BELOW 720 1, INCLUDING:

Jim Garland of Dulles, Virginia, who was

paying an extra $300 per month in interest

Tal Rabinowitz, of Los Angeles, California

who was paying an extra $2,500
per month in interest

10 James Anderson of Provo, Utah

10
who was paying an extra $1,000
per month in interest

Douglas Andrew the New York Times

bestselling author, who would have paid
an extra $400 per month in interest.

These people’s interest payments were high because they had

poor credit. And guess what? They didn’t have poor credit because
they missed payments. They had poor credit because of errors on
their credit report!

Now is that fair?

It isn’t.

1. Includes Americans with either no credit file or a file so thin that a standard score cannot be
calculated.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 If you are planning to shop for a traditional loan, you
must take control of your credit score and your credit report.
This starts by downloading your free credit report at
www.720CreditScore.com. At the same time, start follow-
ing my program, 7 Steps to a 720® Credit Score, where you
will learn how to raise your credit score by spotting and fixing
errors. You will learn about:

The tricks credit card companies use to suppress your

credit score.

1. The perfect mix of credit to achieve the

ideal score.
2. The type of credit that will always hurt
your score.
11
11
3. How to correct errors, even when the
creditors are not cooperating.
4. What to do about those nasty collections.
 Take a look at what my client Brad Bertram did with
his car loan once he implemented my 7 Steps system:

“Since I acquired the

7 Steps to a 720® Credit Score
and followed those steps,
we got a car loan and
knocked our interest rate down
from 11 percent to 7 percent.
—Brad Bertram, Kaysville, Utah

Throughout this eBook, you will learn six other traditional

options for getting that car, even if your credit score is low. Even
if you do not pick Option #1, I encourage you to start working on
12 your credit score today. Your credit score is the cornerstone of your
12
financial well being. If you have poor credit, some employers will
not offer you a job. Your automobile insurance premium might be
higher, and you might have trouble finding a home to rent, much
less a home to buy.

In fact, on a $300,000 home loan, the difference between good

credit and bad credit is $589 a month, or $212,040 over the course
of a 30-year-loan.

The figures are staggering. Fortunately, the solution is easy:

Follow
7 Steps to a 720® Credit Score
and start saving money!

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 OPTION 2
THE COUCH CUSHION
METHOD™

EVER FLIPPED OVER the couch cushion

to find a couple extra bucks? It’s a
great feeling, isn’t it? The trouble is, a
couple of extra bucks isn’t enough to
finance a car.

But let’s say you add together a ton

of money-finding tricks to uncover
13 money? By combining many tech-
13
niques—by finding a penny here and
a penny there—you might be able to avoid the entire car loan. At
a minimum, you can enhance your savings, which makes lenders
more likely to give you a car loan.

Following are eleven methods for finding money that might be

“hidden under your couch:”

 TECHNIQUE #1: COMB THROUGH YOUR BUDGET.

Take a look at all of your expenses and ask: Would I rather
have this or a new car? Chances are, you would rather have
a new car than sixty-three extra cable channels. Remember
that small amounts of money add up to big savings. In this
case, you could save $25 to $100 each month.

Creating a budget can easily be done if you have a budget

template, like the one found in my 7 Steps Practical
Guidebook and Guaranteed Results Toolkit CD-Rom at
www.720CreditScore.com.
  TECHNIQUE #2: FOCUS ON THE SMALL THINGS.
Instead of paying $5 for valet parking, can you self park?
What about grocery coupons that can save you an easy
$20 per shopping visit! You might be thinking: What’s
the big deal? It’s just $5. The reality is that this adds to big
bucks when spent numerous times each month for years
and years. In fact, we save about $25 to $100 each month
just by focusing on these small things that don’t seem
like a big deal. In five years, these small things amount to
$6,000, and that’s a big deal!

 TECHNIQUE #3: LEARN HOW TO COOK. Eating out

is expensive, and it is often unhealthy. This might be a
hard change to make, so turn it into a game. Consider
how much money you spend each week eating out, then
cook a giant pot of turkey soup that will last a week.
14 Turkey soup might not be the most exciting meal in the
14 world, but when you compare the cost to how much you
would have spent in dining out—$25 to $250 a week—
you will likely get excited!

 TECHNIQUE #4: TURN OVER A NEW LEAF. Most

of us have vices. We smoke, drink, eat junk food.
Cutting back on these—or removing them from your
life entirely—will not only help you save $25 to $100 a
month but also help you stay focused on your overall goal.

 TECHNIQUE #5: HAVE A GARAGE SALE. How many

household items or articles of clothing have been in your
garage for years? If you haven’t used something for a year,
you probably aren’t going to use it ever. Sort through
your closet for clothes that are too small. Look at your
bookshelves for books you have already read. Sift through
your attic. Then sell them. I bet you can find $25 to $100 a
month by selling used items.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

  TECHNIQUE #6: Look at the bigger costs. Could you
find a roommate? A lot of your salary likely goes to rent
or your mortgage. Have you reviewed your insurance
policies lately? You might be eligible for a discount, and
you won’t know until you ask. Are you spending an arm
and a leg on private schools for your children? I recently
found a public school in my neighborhood with a better
reputation than the private schools that cost $25,000 a
year. Could you park on the street and rent your garage
as storage? At a minimum, you can save $50 to $1000 a
month by looking at your bigger expenses.

 TECHNIQUE #7: DO NOT COMPLETE YOUR OWN

TAX FORMS. Hiring a CPA might seem like an
expense you cannot afford, but you could save a ton of
money—at least $25 to $100 a year—by hiring a CPA. I
15 learned this the hard way when my new CPA reviewed
15 my past-year’s returns, only to find that I paid an extra
$14,000 in taxes because of an oversight!

 TECHNIQUE #8: FIND A PART-

TIME JOB. You might not want to
work sixty-hour weeks forever, but can
you do it for a few months while you
save money for your car? Knowing
that you are on the way to reaching
your goal of a new car, you can make
an extra $250 to $500 a month with a
minimum-wage paying part-time job.

As you make these small sacrifices, remember that you could

save between $5,125 and $25,900 at a minimum each year simply
by implementing the above techniques. This means that you might
be able to avoid that car loan entirely!
 OPTION 3
TALK TO YOUR BOSS

16 MANY EMPLOYERS are open to giving their employees advances. This

16 short-term loan comes with a great benefit: no interest!

Of course, you probably shouldn’t step into your boss’s office

with no plan and simply say, “Hey, can you loan me a few bucks?”

Instead, present your boss with a budget that explains how

you will repay the money. Your boss is a businessperson who will
respond much better if presented with a solid repayment plan that
strategically outlines that the advance is a solution and not a band-
aid. Be sure that your plan addresses three things:

1. The reason you need the loan;

2. How you will repay it; and

3. Why your company should consider doing this.

Do not tell your employer that they owe you a loan. Rather,
explain why you are a good risk.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 Be sure, too, that you use common sense. If you have been
employed with your company for less than a year, consider a dif-
ferent strategy. Then follow these guidelines:

• Ask for no more than 2 percent of your annual

income if you have been employed with your
company for less than two years but more than one
year.

• Ask for no more than 5 percent of your annual

income if you have been employed with your
company for more than two years but less than five
years.

• Ask for no more than 10 percent of your annual

income if you have been a loyal employee for more
17 then five years.
17
 OPTION 4
EXTEND YOUR SEARCH FOR
FINANCING BEYOND THE DEALER

18
18

In today’s market, getting a loan is tough. Not only do you

need a great credit score, lenders are also requiring bigger down
payments for auto loans.

One of the biggest mistakes people make is not checking all

their options and only relying on the dealer for financing. Keep
in mind that a variety of lenders can extend a loan for a car. Visit
www.720CreditScore.com to links for all types of credit.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 Credit unions and local banks1 are two great options as they
operate much more conservatively by lending only from the
deposits they bring in. As a result, they have taken less of a hit and
have a lower default rate than other banks. This means they are
better positioned to lend you money with less stringent guidelines
at interest rates as low—and sometimes even lower—than their
big bank counterparts!

Another important benefit credit unions and local commu-

nity banks offer: stronger relationships with the lenders who will
review your application. Unlike big banks, who likely do not know
your name, credit unions and local banks consider such things as
how long you have been a member and how well you know the
manager. If you have been a loyal customer for years, you might be
successful in obtaining a car loan despite a less-than-ideal credit
score or down payment.
19
19

1 Miner, Jillian. “Small Businesses Find a New Source for Funding,” Wall Street Journal. March 3,
2009.
 OPTION 5
MAKE A SIMPLE PHONE CALL
TO YOUR CREDITORS

DO YOU HAVE A SOLID history with your existing creditors? If you

have been a loyal client for years, consider picking up the phone
and calling your credit card company to ask for a higher limit. This
might not be enough to finance an entire car loan, but it might help
you increase your down payment and lower your interest rate.

And if you have fewer than five credit cards, you might even
20 ask an existing creditor to extend another credit card offer to you,
20 a much easier option than applying for a new line of credit with a
company that does not directly have knowledge of your payment
history.

As you already know, getting a new credit card or increasing

a limit isn’t easy in today’s market. That said, many of my readers
have successfully negotiated lower interest rates, higher limits, and
even new lines of credit.

Why not give it a shot?

You have nothing to lose.

Keep in mind that this is probably not an option for people

with poor credit. A low credit score is the top reason people are
denied credit. And if you are working on increasing your score,

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 you probably should skip this option as your score probably cannot
afford the ding it will take as a result of the new inquiry.

Michael Fiorina, a UCLA Professor said

this about his credit score:

“After recommending 7 Steps to

my student and clients, I realized
that I had to apply several of the
steps myself!”

21
21
 OPTION 6
TALK TO YOUR FAMILY

22
22

MORE THAN ONE family has been torn apart because of money, and
for this reason, many people stay far away from family members
when considering where to get a loan. That said, family members
can often offer the best terms, so long as they are approached stra-
tegically. In fact, you might even find a way to help your family
member by structuring an agreement in which the family member
receives a strong rate of return. Say that your ultra-conservative
mom has a ton of money sitting in her savings account earning a
modest interest rate. What if you could beat the interest rate by 0.5
percent, but still have lower payments than you would through a
traditional bank? You and your mom would both win.

Remember, though, that you might ruin a relationship with

your mom if you do not repay the debt on time and in full.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 When approaching you family member for a loan, act as though
you are visiting a bank. Just like a bank, your family member is
not obliged to give you a loan. You must show that the loan is a
win-win by providing your family member with a 4-Step Family
Loan Plan™:

• STEP 1—Provide a repayment plan that includes your

income and expenses, budget, and resources you will
use to repay the loan.

• STEP 2—Explain how much interest you will pay, as

well as the penalties you will pay for late payments.

• STEP 3—Sign a contract outlining your commitment.

For informal agreements, craft your own contract.
If you sense that your family will respond better to
23 a formal agreement, see an attorney or find a peer-
23 to-peer lending company that, as its name implies,
structures loans between friends or family members.
Some of these companies, which you can find by
visiting www.720CreditScore.com, will even send
monthly statements!

• STEP 4—Insist on collateral, even if your family

member refuses the offer. Making sure that your rela-
tive is comfortable with the arrangement is the key to
a successful negotiation in which your relationship is
preserved.
 OPTION 7
USE CDs AS COLLATERAL

BORROWING AGAINST a certificate of deposit (CD) is a flexible,

low-cost option for people with poor credit. Banks do not always
conduct credit checks on CD loans, instead considering money
already invested in CDs to be much like money sitting in a savings
account. As such, the bank will almost always let a person borrow
against a certificate of deposit just as they allow a person to take
money out of a savings account.

24
24 Though many people face stiff penalties by pulling money out
of a CD early, CDs have a better use: as collateral to secure a loan.
This has the double benefit of allowing the CD to continue col-
lecting interest while still providing you with enough collateral to
secure a loan.

Generally, interest on loans that borrow against CDs are about

2 or 3 percent above the rate of the CD. As well, the borrower
must pay loan fees. With this in mind, cashing out the CD early
might be your best bet, even if you pay penalties. Run the numbers
and compare the cost of the overall loan with the cost of simply
cashing in your CD.

Register for My Free Credit Advantage Teleseminar www.CreditEbooks.com

 To Do List
1. Register for my Free Credit Advantage Teleseminar,
go to www.CreditEbooks.com

2. Identify your 1st, 2nd and 3rd best options out of

this book, and take action!

3. If your credit score is under 720, try my program,

7 Steps to a 720 Credit Score, risk free. Visit
www.720CreditScore.com to purchase your copy.
25
25
4. “Friend” Philip Tirone on and be part
of free product give-a-ways.

5. Turn your success story into cash with my 720

Automatic Income System. Click here for more
information.
 A FINAL THOUGHT

AFTER READING THIS BOOK, I’m sure you can see my philoso-
phy on borrowing: most people rely too heavily on their ability to
borrow. Borrowing money is not necessarily a bad decision, but it
must be made with the correct strategy in mind. The end result of
any loan should be more freedom, but for too many people, loans
create piles and piles of debt that can never be paid back.
As you know, finding loans in today’s environment is not easy,
but if you only borrow money when you have excellent credit and a
solid repayment plan, you will be much better positioned to secure
and manage a loan that benefits your objectives.
No matter how difficult your financial situation is right now,
the proper plan will land you on higher ground—and you can take
26 that to the bank!
26
Sincerely,

Philip Tirone, President

7 Steps to 720, LLC

P. S. P l e a se email me your comments or thoughts at

Philip@720CreditScore.com. Although I am unable to give per-
sonal credit advice, I would love to hear your thoughts, comments,
and success stories!

P.P.S. Make sure to visit us at www.720CreditScore.com for our

other great products, news and information.
 ABOUT THE AUTHOR

R E CO G N I Z E D A S A T H O U G H T
L E A D E R in the credit industr y,
Philip Tirone speaks nationwide on the
problems with our credit scoring system
and how it erroneously burdens America.
After closing $500 million in resi-
dential home financing, Philip became
attentive to the thousands of dollars in
extra interest payments being wasted by
Americans because of their credit scores. His mission is clear: educate
Americans on how to increase their monthly disposable income
without changing their lifestyle, simply by understanding the credit
27 scoring process.
Realizing the strain this lack of credit transparency has on the
American financial system, Philip has made a personal commit-
ment to show consumers how to navigate our credit system until
our credit laws are changed and are fair to consumers.
Philip’s book “7 Steps to a 720® Credit Score”, dispels the mis-
conceptions around our credit-scoring system and guides consumers
who are struggling with bankruptcy, foreclosure, short sale, divorce,
and many other experiences that impact a person’s credit score.
Philip and his programs have been featured in the Los Angeles
Times, Wall Street Journal, Woman’s World Magazine, San Francisco
Chronicle, Bottom Line Magazine, and the New York Times bestseller
“Secrets of the Young & Successful.” Additionally, Philip has been a
frequent guest lecturer at UCLA Anderson School of Business and
Management.
Philip currently resides in the Los Angeles area with his wife and
three children.
 GETTING A CAR
When the Bank’s Aren’t Lending

Copyright © 2010 Philip Tirone

All Rights Reserved.
Published by 7 Steps to 720® LLC, a California Limited
Liability Company

No part of this publication may be reproduced in any form by

any electronic or mechanical means without the permission of
the publisher, except by a reviewer who may quote brief passages
in a review.

While the author and publisher have taken every precaution

in preparing this booklet, the author and publisher assume no
responsibility for errors or omissions, or for damages resulting
from the use of the information contained herein.
28

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