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Can I raise my credit score by taking a loan against a CD?

asked by nikkieng978 (18)

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Tags:  debt  finance

answers

Your credit score can be raised by taking a loan against a Certificate of Deposit. It is important, though, to make sure that your bank reports CD secured loans to the credit bureaus. Also, it is more beneficial if the loan is a revolving loan that can remain open. Remember to make on-time payments.

6 votes

No because the term or length of the loan will not be long enough to give a payment history. What the credit score is saying is that you will pay back your loans over a period of time, but since you will be paying the cd in one or two payments you will get no benefit.

reply
posted by ac29 (12)
6 votes

One of the main things that can help build credit history is solid, on-time repayment history. Some financial institutions will allow you to take out a loan against a certificate of deposit. This allows the financial to take less of a risk on you and allows you to make payments on the loan to build your credit history.

5 votes

take $1,000 to the first bank & tell them you want to put it in CD & get a loan against it to improve your credit. work an agreement with them to pay over a 12 month period. . take the $1,000 loan & go to bank #2. Do the same thing. Then to bank #3. and so on & so forth.

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posted by mathanraj (0)
1 votes

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