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sox · 10-31-2007, 02:20 PM

okay so... i do have some established credit, i do have credit cards, and things under my name, but iv only have had credit a lil over a year so my credit has not had enough time to mature, and i want to buy a car (not at this time in 6 months in April 2008). The thing is i want to take out a personal loan to make my purchase...... what is the fastest way to go about boosting up my credite score? any suggestions? someone told me to take out a sercured loan with different banks using the same money??? if possible how does that work? thanx in advance :)

JobMixer · 10-31-2007, 02:20 PM

First, Don't be an idiot. Stunts like that is like playing with snakes eventually you will get bitten. Each credit card is looked upon as debt even if there is a 0 balance. The reason is that when a loan officer looks at the credit card, they are not just looking at payment history, they are looking at how much you can run the cards up to after you get your loan. Get rid of most if not all the credit cards. Pay your bills on time or early. Save up for a good down payment. Don't buy more than you can afford. Building credit is like getting rich, it happens slowly.

alibaba · 10-31-2007, 02:20 PM

just apply at your local bank for a car loan, don't use someone
of the internet that you can't see, and about those secured
loans with different banks, I don't think so.

You shouldn't have a problem getting a car, they will just
charge you a little higher interest and if you default they
will repossess the car so make sure you can afford to
make payments for the next 4 or 5 years or buy a used
car and keep saving money.

penny · 10-31-2007, 02:20 PM

What "someone" is suggesting is that you take some money to one bank to get a secured credit card, take a cash advance, take that cash to another bank to get another secured card, take a cash advance there too, take the cash to a third bank to get a third card, etc. This strikes me as a bad idea because you will have to make payments to all the banks and it may lower your credit score (due to the total amount of debt and high number of recently opened accounts).

As noted in another answer, a personal loan to pay for a car is not the best idea. Just get a car loan. The rate is better and it makes more sense. However, you lose the car if you do not pay.

alibaba · 10-31-2007, 02:20 PM

The best way to build your credit is to learn about it first.. I recommend a site called Credit Keeper (http://www.mycreditkeeper.com/) It'll help you learn about what's on your credit report and it'll give you tips based on your 3 scores and the things making up your scores on how to build it. Plus, the first 30 days are free then it's only $9.99/month after that (trust me it's worth it, and if you find that you disagree, you can cancel at any time and they'll give you back your most recent payment).

Also, one of the things I learned that helps a lot: keep your credit card balances as close to half of your limit as you can without going over bc too high looks like you can't handle the credit you've got and too low looks like you have more than you need.

Another thing you can do is become a member of a credit union, they have much lower rates for loans and help you build your credit faster than a bank will.

Hope this helps.

tut · 10-31-2007, 02:20 PM

Use common sense. If you have credit history over a year and manage your credit cards right - pay on time and they are not max out, and no negatives or they are old, you will find a lender for an auto loan. Do not take personal loans, they are always with high interest. I do know the people who used the personal loans to build a credit. They also have to wait at least a year to get it established. It is a bad idea if you have regular credit cards. Do not follow advice to close them, just handle them properly and perfect score will come. Anyway, as I said, you probably are qualified for a regular auto loan with one year credit history.

seo_guru · 10-31-2007, 02:20 PM

Best bet is join a credit union. Next .best bet is this website on car buying.

tzp · 10-31-2007, 02:20 PM

This is what makes up your score:

1. Payment history-35%
2. Total debt owed vs. available-30%
3. Length of time establishing credit -15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%

Now, since that's out of the way, I'll continue.

You mentioned that you have credit cards, that's a start. You gotta start somewhere, right? I have a couple of questions about them. How long have you had them? If it's been less than a year, you'll need to continue to establishing the history on them for a while. You should have at least 2 years of solid payment history in order to really make an impact on your score. Now, the next question I have is this, on those credit cards you have, what are the balances? Are they close to the limits? This is important because it takes more than just paying on time (#1) Having maxed out cards hurt your score just as bad as if you miss a payment because it shows that you rely on credit more heavily than you do. To have a favorable score, you should only use 25% or less of your available credit on ALL your cards at any given time. Reason being is that you should have a cushion between the total debt that's owed vs. available credit. So it's important to pay those cards down.

The person who told you about taking out a secured loan is somewhat correct. What you would be doing is establishing installment credit which is the other type of credit besides revolving credit (credit cards). The only thing with this is that it takes around a year or so for these loans to reflect on your score, so 6 months really wouldn't help your cause at this stage of the game with that.

Also another thing that you might want to know is that there are programs for first time buyers that may apply to you, that can help, and also having a steady job and a nice sized down payment also helps.

My suggestion would be to be patient, take care of the credit that you have for right now, based on what I've told you and shop carefully.

dotjp · 10-31-2007, 02:20 PM

A small loan consolidation with low interest (you can paid your ccards) is the best I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html

10-31-2007, 02:20 PM	#2
JobMixer Greenhorn Join Date: Jul 2006 Posts: 18 Rep Power: 0	what is the fastest way to build my credit? First, Don't be an idiot. Stunts like that is like playing with snakes eventually you will get bitten. Each credit card is looked upon as debt even if there is a 0 balance. The reason is that when a loan officer looks at the credit card, they are not just looking at payment history, they are looking at how much you can run the cards up to after you get your loan. Get rid of most if not all the credit cards. Pay your bills on time or early. Save up for a good down payment. Don't buy more than you can afford. Building credit is like getting rich, it happens slowly.

10-31-2007, 02:20 PM	#3
alibaba Greenhorn Join Date: Jul 2006 Posts: 17 Rep Power: 0	what is the fastest way to build my credit? just apply at your local bank for a car loan, don't use someone of the internet that you can't see, and about those secured loans with different banks, I don't think so. You shouldn't have a problem getting a car, they will just charge you a little higher interest and if you default they will repossess the car so make sure you can afford to make payments for the next 4 or 5 years or buy a used car and keep saving money.

10-31-2007, 02:20 PM	#4
penny Greenhorn Join Date: Jul 2006 Posts: 17 Rep Power: 0	what is the fastest way to build my credit? What "someone" is suggesting is that you take some money to one bank to get a secured credit card, take a cash advance, take that cash to another bank to get another secured card, take a cash advance there too, take the cash to a third bank to get a third card, etc. This strikes me as a bad idea because you will have to make payments to all the banks and it may lower your credit score (due to the total amount of debt and high number of recently opened accounts). As noted in another answer, a personal loan to pay for a car is not the best idea. Just get a car loan. The rate is better and it makes more sense. However, you lose the car if you do not pay.

10-31-2007, 02:20 PM	#5
alibaba Greenhorn Join Date: Jul 2006 Posts: 17 Rep Power: 0	what is the fastest way to build my credit? The best way to build your credit is to learn about it first.. I recommend a site called Credit Keeper (http://www.mycreditkeeper.com/) It'll help you learn about what's on your credit report and it'll give you tips based on your 3 scores and the things making up your scores on how to build it. Plus, the first 30 days are free then it's only $9.99/month after that (trust me it's worth it, and if you find that you disagree, you can cancel at any time and they'll give you back your most recent payment). Also, one of the things I learned that helps a lot: keep your credit card balances as close to half of your limit as you can without going over bc too high looks like you can't handle the credit you've got and too low looks like you have more than you need. Another thing you can do is become a member of a credit union, they have much lower rates for loans and help you build your credit faster than a bank will. Hope this helps.

10-31-2007, 02:20 PM	#6
tut Greenhorn Join Date: Jul 2006 Posts: 13 Rep Power: 0	what is the fastest way to build my credit? Use common sense. If you have credit history over a year and manage your credit cards right - pay on time and they are not max out, and no negatives or they are old, you will find a lender for an auto loan. Do not take personal loans, they are always with high interest. I do know the people who used the personal loans to build a credit. They also have to wait at least a year to get it established. It is a bad idea if you have regular credit cards. Do not follow advice to close them, just handle them properly and perfect score will come. Anyway, as I said, you probably are qualified for a regular auto loan with one year credit history.

10-31-2007, 02:20 PM	#1
sox Piggy Bank Join Date: Jul 2006 Posts: 59 Rep Power: 6	what is the fastest way to build my credit? okay so... i do have some established credit, i do have credit cards, and things under my name, but iv only have had credit a lil over a year so my credit has not had enough time to mature, and i want to buy a car (not at this time in 6 months in April 2008). The thing is i want to take out a personal loan to make my purchase...... what is the fastest way to go about boosting up my credite score? any suggestions? <br /><br />someone told me to take out a sercured loan with different banks using the same money??? if possible how does that work? <br /><br />thanx in advance :)<br />

10-31-2007, 02:20 PM	#7
seo_guru Greenhorn Join Date: Jul 2006 Posts: 30 Rep Power: 6	what is the fastest way to build my credit? Best bet is join a credit union. Next .best bet is this website on car buying.

10-31-2007, 02:20 PM	#8
tzp Greenhorn Join Date: Jul 2006 Posts: 11 Rep Power: 0	what is the fastest way to build my credit? This is what makes up your score: 1. Payment history-35% 2. Total debt owed vs. available-30% 3. Length of time establishing credit -15% 4. Types of credit established-10% 5. Inquiries and New accounts-10% Now, since that's out of the way, I'll continue. You mentioned that you have credit cards, that's a start. You gotta start somewhere, right? I have a couple of questions about them. How long have you had them? If it's been less than a year, you'll need to continue to establishing the history on them for a while. You should have at least 2 years of solid payment history in order to really make an impact on your score. Now, the next question I have is this, on those credit cards you have, what are the balances? Are they close to the limits? This is important because it takes more than just paying on time (#1) Having maxed out cards hurt your score just as bad as if you miss a payment because it shows that you rely on credit more heavily than you do. To have a favorable score, you should only use 25% or less of your available credit on ALL your cards at any given time. Reason being is that you should have a cushion between the total debt that's owed vs. available credit. So it's important to pay those cards down. The person who told you about taking out a secured loan is somewhat correct. What you would be doing is establishing installment credit which is the other type of credit besides revolving credit (credit cards). The only thing with this is that it takes around a year or so for these loans to reflect on your score, so 6 months really wouldn't help your cause at this stage of the game with that. Also another thing that you might want to know is that there are programs for first time buyers that may apply to you, that can help, and also having a steady job and a nice sized down payment also helps. My suggestion would be to be patient, take care of the credit that you have for right now, based on what I've told you and shop carefully.

10-31-2007, 02:20 PM	#9
dotjp Greenhorn Join Date: Jul 2006 Posts: 25 Rep Power: 6	what is the fastest way to build my credit? A small loan consolidation with low interest (you can paid your ccards) is the best I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html

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