Small suggestion to help your credit/credit score

[Anonymous]

Hey again all, thought I'd post this, hoping it will help some of you trying to rebuild your credit. 

Unfortunately, this is not necessarily a quick fix but it helped me.  About a year ago, I took out a small signature loan for $2500.00.  I realized this was a small amount but I was trying to balance out my credit report a bit.  All I had on there was an old auto loan that was closed (with a few late payments) and a bunch of credit cards.  The loan was for 24 months.  I paid it off in 12 months.  The installment loan helped my credit score tremendously.

If you can afford to do so and if you don't have any installment accounts, try taking out a small loan that you know you can afford to pay back.  Paying it all back at once isn't going to help you any, but make on time payments to your bank and do your best to pay it off a bit early.  Keep in mind if you are in serious debt and/or have very poor credit, most likely your bank won't give you a loan and an inquiry will pop up on your credit report which could hurt you.  If you can afford a small loan and need to balance out your credit report, I believe this could really help! 

That's it!  Best of luck to everyone! 

[Anonymous]

I agree.  I took out a $1500. secured loan and paid it off in 6 months.  It was building credit that I didn't have as well as building a relationship with a lender.  It also provided a good reference and shows a positive, paid as agreed account on my credit report. 

[Anonymous]

I did the same, I went to my credit union and took out an unsecured 1000 personal loan.   They recognized that I was repairing my credit and were willing to help.  They said don't pay it off right away but make at least 6 of the 12 payments.   I put the money into a interest bearing account, then set up my BoA checking to auto pay one payment twice a month. 

They said after payoff I could then open up a much larger Line of Credit.  It's a smaller CU and helpful & friendly to deal with.    You pay a little interest for the loan, but I felt it was worth it in my case.

ctRob

[Anonymous]

My Credit Union keeps writing with these signature/personal loans...I was thinking maybe Nov/Dec I will try it and pay it off early....

[fused]

This all might be true if someone never had an installment loan reporting. For me, installment TLs do little to boost my scores as I have a few already.

[MidnightVoice]

This didn't work for me - other things (like new TL and low uril) solved the problem, alomg with a few disputes. 

[jenkins]

i cant get approved or anything with my scores im in the low 600s