how to get your credit score up by using loans???

what are some loopholes to use 2 get your credit up???

Asked by ChrisFindley in Financial Services one month ago

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Answers

528 points

Creezy answered one month ago …

Here are some general help and advice articles on the topic:

http://www.ehow.com/how_4393224_improve-credit-score.html

http://genxfinance.com/2008/02/05/15-ways-to-establish-and-improve-your-cr edit-history-and-fico-score/

http://www.getrichslowly.org/blog/2006/06/05/anatomy-of-a-credit-score/

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360 points

SirCrashton answered one month ago …

Creezy has provided some excellent links on the subject. There are no "loopholes" but, rather, strategies that will increase your credit score. Bear in mind that the process takes time; it is not instantaneous as some credit repair services would have you believe.

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3090 points

EthanR answered one month ago …

Chris, here is one thing you can do. Take $3000 and put it in a 12 month CD at your local bank. Then borrow $3000 against that CD. Each and every month pay that loan off on time. At the end of 12 months, you will have established some good credit for yourself, and will have only paid out a little bit more than you received in the CD interest.

Other suggestions. Pay off your credit cards each month, pay bills on time (even if it means getting a second job!) do not run up a lot of inquiries, and never co-sign for someone else on a credit card or loan. Time heals all wounds including bad credit. And I agree with SirCrashton that strategies are more powerful than "loopholes". We are not trying to trick FICO into raising our score so we can run up more credit to keep us poor. We should be trying to achieve a low debt to income, good credit lifestyle, so that when we do need to borrow money (like for a mortgage), we will get the lowest interest rates.

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111 points

moihyvong answered one month ago …

Chris,
Can't agree more with EthanR.

It would be best, if you could pay off the loan, which holds yr CD as a collateral, just about 1-2 months earlier. That way you might even out your interest earned on yr CD.
Then apply the same tactic for another 1-2 yr. Your FICO would be at range of 650 up.

Bank loves your CD as the collateral, and your loan rate is 2-3% higher than your CD interest rate.

Besides the shown above tactic, you should keep paying your credit card in FULL and on time, to establish a good credit lifestyle, then you would have your FICO at 750 up.

With this excellent FICO score, when you need to borrow $$ for a mortgage, you would get the best offer, esp. in the middle of financial meltdown.

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373 points

dustbusterz answered one month ago …

First, let me say ,the above answers are pretty much spot on in their advice.
Great job guys/
Now, I have yet 1 more idea you can use. Rent a house for about 3 to 4 years, then ask the owner if he is wanting to sell the home.
If he is, you can work out a deal whereby, you buy on land contract, and have him apply say 2 years of tyhat rent to your downpayment.
Take a 5 year loan(which the seller carries for you) make on time payments, then in year 3 or 4, you approach your bank and ask for a loan to pay off the balance.
Let the bank know when you talk to them that your credit is somewhat shakey, but show him that you have paid rents (on time) for 3 years, plus bought on contract for another 3 to 4 years (paying on time). Chances at this point are pretty good(especially in a small home town bank(where the loans are approve locally) not by some corporate hot shot 2000 miles away, you could be approved. It worked for me.I later got a high intrest loan on some furniture(25% APR) went to the bank that approved my home loan and asked for a loan to pay off the high interest furniture loan. again paying this on time each money. soon my credit was shiny new looking.
I even went in later and got a car loan for a car that was 1 year old and by this time, they were so happy with me, they were asking how much and how long and telling me my paperwork will be ready the next day for signing . was a slow but easy process.

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