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Everything must change and so it seems to the federal government and congress when addressing the problems with the credit card industry and consumer credit in general. You would be hard pressed to find a single consumer whether an astute or casual observer who would not support a need for change.

One thing immediately comes to mind is what has taken change so long to appear on the financial radar screen? Some how the old paradigm is past the point of looking like an approaching torpedo with the ability to sink a battered economy.

Here lies a clue to the apparent urgency of new laws passed by congress emphasizing that consumer spending provides for 70 percent of all U.S. economic activity. The easy conclusion is without beefed up consumer spending the economic recovery is fast running out of steam.

A more careful analysis shows that consumers are spending at a slower pace than in times past, however the data reveals that their spending is directed toward big ticket items.

Just as promised the new Credit Card Act will do many things however possibly unintentionally curtailing even more consumer spending. The new laws will demand that credit card issuers perform the due diligence to scrutinize whether a credit card seeker has the ability to pay. By the way, the law is intended to help save consumers from themselves by preventing over spending. What a novel idea and a strange paradox in a consumption based economy.

As with anything proposed by Washington no matter how well intended beware there could be curves ahead or unintended consequences.

Changing trends brings this discussion to the X-factor which will be referred to as the missing link in all of the above credit changes. The X-factor is consumers discovering how to monetize their credit regardless of any laws passed by congress. In fact the new trend monetizing consumers credit is more important now than ever before in light of the new credit card act.

Consumers gain an unique advantage in monetizing their credit, which should provide unprecedented leverage in the marketplace. The fact that consumer spending makes up 70 percent of all economic activity here in the U.S. gives the consumer a decided advantage and opportunity to create real credit change for themselves. There are approximately 100 million taxpayers in the U.S. who all use some type of credit and with your clout and galvanized voices you can bring about a new innovative means of using credit to benefit consumers.

Coping with changing credit trends can become an empowering experience for all consumers fostering a new era in the use of consumer credit. Monetizing your credit is truly the missing link in the newly designed credit landscape. Some have asked should this be a grassroots effort front and center on main street America? You decide.

One thing that is certain in the way consumers use credit a new model is needed. The model should provide what consumers need most:

The ability to monetize credit
A platform to accept lenders bids
Discovery of monetary value of credit
Use of leverage in the marketplace
Lower interest rates gained from monetizing credit
A consumer credit auctioning and bidding process
Credit card seeker bidding concept

Current events are shaping future trends and leveling the credit and credit score playing field which should benefit the informed consumer.

What is the role of perception in understanding consumer credit behavior? Let’s explore the not so obvious. The dictionary list the meaning of perception as “The process, act, or faculty of perceiving.” Most of the decisions that are made everyday may be tied to ones own individual perception.

Several questions come to mind. How did consumers become conditioned to accepting the practice today known as credit scoring? Who are the major players and influences that make this possible.

If consumers are not satisfied with the status quo why haven’t consumers demanded a more viable alternative?

The fact that consumers are dissatisfied and feel alienated may be attributed to their own perception or the methodical controlled conditioning of their perception of credit by others.

There is a simple means for consumers to participate on a level playing field with their creditors. However it will require a stark change in perception. A complete paradigm shift is needed from the on set, an evolution of sorts in consumer behavior.

Consumers must perceive themselves and their credit quite differently than what is done today.

A new set of rules, terms and phrases must be learned. No, there is no need to go back to school or simple bury oneself in a mountain of books. I can assure you that these new expressions are already in your current layman’s vocabulary. All you need to do is transfer the same terms used everyday into your new found awareness and perception of your credit.

It is without doubt most consumers are very value conscience today in the present economy.

The definition of value is equivalent worth or return in money, material, services.

A new reality in understanding and expecting to receive fair value in any transaction were credit is the deciding factor is your right as a consumer. However one will not perceive it as one’s right unless one expects and perceives it to be so.

For an example a consumer shopping for a new refrigerator for their home would expect to receive fair value for their hard earned money. If there next purchase is a big ticket item requiring the use of their credit to make the purchase should not the same level of expected fair value come into play? Only this time the consumers is focused on getting fair value in the credit transaction. If the consumer accepts only one creditors perception of their credit it is highly unlikely that the consumer received fair value.

The most efficient means for determining fair value in the credit transaction scenario is the use of an open auctioning format comprised of multiple bidders. This is where multiple lenders would offer an interest bid to the consumer based on the consumers credit and credit score thus providing fair value to the consumer.

Plain and simple when consumers perceive that their credit has monetary value, proves accepting anything less than fair value is not acceptable in the marketplace.

The next term to explore is monetizing your credit.
A financial dictionary definition for monetizing: To convert into money

The interest rate received in a financial transaction is converted into money.

A consumer buying a car using credit to apply for an auto loan can count on the following.

The lender will convert the consumer’s credit into an interest rate during the loan process.

Consequently the interest rate is converted into money determining the amount of profit the lender will make on the loan. Make no doubt about it the lender monetized the consumer’s credit to make a profit. Consumers should have the same opportunity to monetize their own credit to save money during the credit transaction. Now providing a level playing field for consumers.

The car buying scenario above allowed the lender to have sole discretion over the monitization of the consumer’s credit based on the lenders perception. The consumer had very little if any choice in the matter other than being accountable for the ensuing debt.

However the above example describes how things are currently done today when borrowing and lending.

A consumer walks into a car dealership with credit score along with credit report in hand from one of the reputable credit report agencies. The salesman will say sorry, but we will have to pull a credit report and we can’t accept the one you have on hand. However, the salesman did not say the dealership will pull the credit report from the same credit reporting agency. The dealership accessed credit report detailing the consumer’s credit will without doubt indicate a much lower credit score. Resulting in a higher interest rate for the consumer and greater profit for the lender.

How did the above car buying and car loan experience make you feel?

Did you feel your best interest was being served. During the transaction did you feel empowered? Were their feelings of helplessness?

Did you feel you received fair value for your credit or did you feel overwhelmed and taken advantage of throughout the sales and lending process. Were you made to feel that this is just how things are done and there is no better alternative available? Were you made to feel this is standard practice?

As a consumer would you not prefer to have a choice of which interest rate you could chose to accept based on fair value? Why not have multiple interest rate bids from lenders offered to the consumer based on the monetary value of the consumers credit?

There is not a better method to bring fair value to the consumer and create a leveling of the playing field other than by monetizing the consumers credit. Here is the proof.

What do hard working consumers desire most often or should expect when purchasing a big ticket item using their credit?
Choice
Value
Saving money
Possibility of lower interest rates
A level playing field with creditors
Fair monetary value for their credit
Leverage of credit in the marketplace

A consumer credit score and credit auctioning and bidding process can offer benefits to all. An auction format would help consumers: discover monetary value of credit in the marketplace, receive fair value, feel empowered to leverage credit , possibly lower interest rates and save money.

It is a win – win opportunity for all through out the borrowing and lending process.

Current events are shaping new trends. Catch the wave of the next exciting and rewarding consumer trend becoming widely known as the monitization of consumers credit.

Artificially low interest rates driven down by the federal reserve during the recession can not be sustained indefinitely.

There are many who believe the next economic foe on the horizon is inflation and this will create a much higher interest rate environment for everyone. Thus the need for consumer credit monetizing becomes more beneficial and important for borrowers now and in the future.

In the financial world both money and credit are interchangeable.
One can stand in for the other creating a very necessary substitute
when needed. This happens many times in consumer and business
financial transactions everyday.

For the sake of this article money is credit and credit is money.
Much effort is put forth in legally obtaining and pursuing money
thru some worthwhile endeavor. The same is true for credit and credit
history. It requires time and consistent effort to create and maintain a
healthy thriving credit history that will be used at some point as a form
of intangible currency in the marketplace.

Some still maintain that cash is king, however in the U.S. Economy in
many transactions credit is the only medium used. Getting a hotel,
renting a rental car and all online e-commerce use credit as a preferred
source of payment. Most if not all businesses extend credit whether buyers or suppliers via procurement channels and accounts receivables.

It is quite evident now and the case is solid and validated that credit is
another form of money or currency. Credit has immense monetary value
and a preferred status the world over. The is well understood and accepted
practice in the banking and lending arenas.

What is the best means by which consumers can gain from the intangible
monitization of credit? A first goal would be to discover the monetary value
of their credit.

What would be the source of discover? Use a open free market auction and
bidding process, thus allowing the free market to establish the value of ones
credit monetary value in real time.

Who would qualify as bidders? Banks, lenders, mortgage brokers and credit
card issuers, etc.

Are there immediate benefits for the consumer? Yes!

A free no hassle user friendly auction and bidding process

Empowering consumers to leverage their credit in the marketplace

Possibly lowering interest rates through online auction bidding

Defining the true monetary value of consumers credit

Helps consumers save money

What are the benefits for the financial community? Create a paradigm shift
in the way lending is carried out within the consumer space. Offer innovative
solutions, meaning give the consumers what they really want and that is value.
Make every transaction a value transaction therefore using processes that
produce fair value transactions (FVT).

Once consumers experience a whole new world of fair value transactions(FVT)
this would become a catalyst to motivate and inspire all consumers to maintain
more viable credit histories. This would have a generational effect as well
particularly with young future users of credit. End result a win-win for all consumers and lenders.

It is not often a revolutionary idea and concept comes along to energize the banking and lending community. The task at hand is to bridge the divide between the consumers or creditee and the lenders.

Media headlines indicate lenders are holding large reserves on their books to weather the economic downturn and equally the consumers are not borrowing and spending as in times past.

Yes, the landscape is different now and ripe for a good dose of financial innovation benefiting both consumers and lenders.

The two parties are interwoven in every aspect of daily financial life, thus creating the very heartbeat of the U.S. Economy. In a sound financially free enterprise system can one be sustained without the help of the other?

What should the banking and lending community commit to and what will the consumers bring to the table? Will both try to use the same old playbook in a new economy and possibly a new financial era after the financial / economic downturn has subsided?

Consumers are seeking fair value transaction (FVT) utilizing a new concept developed by Kutro, LLC.

Enabling mortgage brokers, loan officers, lenders and credit card issuers the opportunity to offer an interest rate bid to a prospective borrower for loans and / or credit cards based on their credit score monetary market value. How can the monetary value be determined? Through the use of a free no hassle user friendly auction and bidding process, empowering consumers to leverage their credit in the marketplace. In turn this will lower borrowing interest rates achieved through online auction bidding.

Defining the true monetary value of consumers credit and it helps consumers save money.

Consumers want honesty and fair value for their credit. Lenders who are mulling over new product offerings need to look no further.

Lenders will gain from a list of immediate and long term benefits:
Access to a motivated market of loan and credit card seekers
Lower marketing and advertising cost
Increased client base
Lower cost of client acquisition
Greater Income or Revenue
Higher Profit Margin

Banks rely on volume transactions to sustain bottom line profitability and their many bank branches backs up this point. However, a refreshed lending and borrowing mindset offers great opportunities in cost savings affecting bottom lines of lenders. An engaged consumer using a low cost online platform producing value transaction volume (VTV) could possibly become the new holy grail for lenders.