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

Answer by  ladydragondance (11)

Any type of loan that you can take has the possiblity to raise your credit score. However, it is essential that you make at least your minimum payments every month. You must also make every payment on time. Failure to do these things, will result in lowering your credit score, rather than raising it.

Answer by  patti (29325)

Credit scores are affected positively by timely payments and debt reduction. Borrowing from any source does not improve a credit score.

Answer by  Liz59 (10966)

You can't raise your credit score by taking a loan against a CD. In fact, it might even lower your credit score, the exact opposite of what you are striving for.

Answer by  jltownsend (13)

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.

Answer by  ac29 (17)

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.

Answer by  daltonbob (52)

This only works if you make you payments on time - simply taking a loan against a CD does not raise your score by itself.

Answer by  tamarawilhite (17883)

Do not take on unnecessary debt. If your debt level is so high that it is impacting your credit score, a new loan will actually hurt.

Answer by  PGR (74)

Yes, but be sure you get the loan from a lender who reports loans, and the repayment history, to a credit bureau. Your score is affected only by what is cactually reported.

Answer by  craftypuppylover (33)

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.

Answer by  Liz59 (10966)

I believe the correct answer to your question is yes. By taking a loan, you may simply put yourself at risk against acquiring a loan. So this is going to raise your score unfortunately.

Answer by  mathanraj (0)

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.