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The marketplace favors those who have what the credit industry has coined as good credit. There are many times the good credit holders are not treated fairly when making their purchases. Research studies have revealed that borrowers and consumers with high credit scores are many times taken advantage of in the same manner as those with lower credit scores.

In most cases those with high credit scores should fair better than those with lower credit scores in the current credit system. As previously stated both will be inadvertently charged an interest rate that has lots of wiggle room. Based in many instances on credit industry computer risk models and on the subjective final decision maker. Someone behind the scenes who may or may not care to take all of the facts and circumstances into consideration. This fact along is why monetizing your credit is more important now than ever.

Can less than stellar credit keep a segment of society from getting a head? Whether one has fallen on hard times or lost a job. May be a divorce is the blame and in some cases a medical emergency has caused a major disruption in your finances and a downward spiral of your credit score. Sometimes the poor credit score can be attributed to a lack of attention to detail and a record of not making payments before the due date. Admittedly many things can cause ones credit score to nosedive and no one should excuse personal responsibility and accountability of ones actions.

Having a goal to ascend to the level of excellent credit is a noble pursuit, however many fail to obtain that elusive perfect score.

In a perfect world a high credit score should save you money in any transaction requiring a borrow or consumer to allow their credit history to be the determining factor in making a purchase. If you live on planet earth you should have come to the realization by now that two things are a constant. It is a place where imperfect people live and do business in an imperfect world. However should consumers settle for the status quo?

There is a movement albeit in its early stage to level the credit score playing field. This will serve as a great benefit to all consumers whether their credit scores are high to low or some where in between. Remember leverage is the key here whether it is in your favor or not the fact remains the same. To leverage or not to leverage you decide.

What should be the wise advise given to young adults striving to establish themselves in the world financially? Most would say keep debt to a bare minimum and start forming a good credit history.

The advise is flawed on two points. First credit cannot be established without incurring debt in the present system. Secondarily in many cases a high credit score along with an unblemished credit history is becoming very difficult to obtain now days. Why? Because the credit standards are changing rapidly to say the least. The one thing that was not mention to the young person lies at the hard of the mindset that creates consumer credit problems today.

Credit’s first law is your credit should help save you money. Why should you allow yourself to become enslaved by the very thing you have created? Consumers most often over look this very important principle. If your credit is costing you money with absurdly high interest rates the next obvious question is of what value is it to you financially? Consider not using credit in the same traditional way as in times past.

A new approach would be to monetize your credit and this puts you the consumer back into control.

The key here is to allow the marketplace to determine the monetary value your credit and this could lead to possibly lower interest rates and this can only be accomplished using and auctioning and bidding process.

Regardless of your credit score a system that levels the playing field should offer a fair interest rate bid based on the monetary value of your credit in the marketplace. Until a system of this type is embraced that benefits all consumers your credit will continually cost you money and not save you money.

Any amount of interest percentage points saved through the auction and bidding process can be counted as real money savings benefiting you the consumer.

Most only think of credit as a tool and process that comes into play when a non-cash transaction is made. Credit has the ability to raise as well as lower ones standard of living to a greater or lessor degree depending on the individual circumstances. This fact alone has serious social and economic implications.

Media headlines have reported that at least sixteen states are considering placing a ban on employers using job applicants credit history as a part of the hiring process. No one is advocating less financial responsibility and accountability for anyone maintaining their own credit history in good standing. The point here is that it behooves each consumer to be wise when using credit because the consequences of ones actions now are far reaching to say the least.

It is now possible that your credit may prevent you getting a job and some cases the type of job you would like to obtain depending on the industry. Now the picture becomes quite clear how credit in and of itself can have a direct impact on your standard of living. The use of credit or the misuse of credit in some cases can correlate to the level and quality of your standard of living.

Employment and earning capacity over time is a key component in gauging a consumers standard of living. Your ability to maintain stable employment over time with an upward moving pay scale combined with sound credit should afford you the opportunity to increase your standard of living. Excluding any other negative financial factors or setbacks that might come into play.

Most Americans in the working class seem to rely on three basic financial fundamentals: Employment, Income and Credit.

Does credit or the lack of credit perpetuates a division of society resulting in economic classes?

Without sufficient income and credit it is hard to imagine how one would maintain a desired upward bound standard of living. It is well known that those with little to poor credit will pay the highest cost and interest rates when obtaining a loan or buying big tickets items. Those with the least seem to pay the most and therefore a endless cycle of high expenses creates a downward spiral of their standard of living.

Credit cards are now almost non-existent for those whose credit scores are considered low by today’s standards. Consumers with the lowest scores who manage to secure a credit card are charged rates that really should be illegal in this country.

With the risk of not finding employment or suitable well paying employment hinged on ones credit history there is much to be said for the power and influence of the credit bureaus on your life.

Current events are shedding even more light on why it will prove beneficial for the working class to embrace a system and process that enables the leveling of the credit and credit score playing field.

A few years back sociologist and economist both seem to agree that America had three distinct classes: lower (working poor) , middle class and upper class. For some this is an unpopular topic of discussion and others may shy away fearing a lack of political correctness. Nevertheless the economic facts involved here are profound.

Time the great equalizer and some cases a great diminishing force has certainly brought about a defining change in America economically. There are many who believe there are only two classes currently in America today. The working class and the affluent rich.

It is obvious to see that the middle class has disappeared. Were they a victim of fate or were they proven to be irrelevant by the financial and economic wizards?

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.

What Is My Credit Worth?

Have you ever given any thought to what your credit may be worth in the marketplace?
Who gets to decide its value and who benefits directly and indirectly from its value.
How does your labor or employment fit into the equation within a consumption economy?
Can credit and banking or lending exist without labor? If so who would borrower without a sufficient means of paying back a debt and by what means would the debt be paid? Banks and lenders can not profit using a barter system.

One may argue that a capitalist system driven by a consumption economy is based on and rooted in credit, banking and lending. Who controls the labor? It is the consumer. Who controls the credit? The bankers and lenders? Only because they are allowed to. Credit can not and does not exist without labor. Therefore one of the most powerful forces known is a unified work force producing goods and services. Credit is used to produce, buy and sell all consumable goods. The production of these goods is clearly within the control of industry which employs workers who consume the products that are produced.

Without labor or workers who use credit to buy goods and services there would be no need to have banks for lending. Bankers lend the manufactures money to buy machinery and to pay the labor force to produce the goods. The laborers make money from their labor to buy and consume over and over again.

Therefore the two most essential parts of the economy equation is first labor and secondly its credit.

My point is this labor drives credit and the most valuable commodity a consumer has is credit sustained through labor.

The question should be asked now is if credit is created by labor why do the laborers / consumers with all their power allow a small circle of non-laborers to determine the value of their most coveted prized possession know as consumer credit?

Consumers should pause and think what is the value of my credit in the marketplace?

By what means can its value be determined and more importantly how can this new found value be used to my advantage? The only way to determine the value of consumers credit is to monetize the credit through an auctioning and bidding process. This will empower the real owners of credit the laborers and consumers / borrowers. Consumers for far to long have not had a means to measure the monetary value of their credit. Should not consumers be afforded the opportunity to leverage their credit in the marketplace?