Which way build up credit faster?

Question

If I finance my car and I pay all the payment on time, does it build up credit faster than just using the credit card? I am confused.
I wonder how do we build up credit?
I am arguing it with my friend about this.
Thank You for your help

Answer 1

For instance I have bad credit. I bought a car and my credit rating was 515.(yea pretty bad) I checked it today and my credit just after 2 months is 593. I set up my car payments every 2 weeks to come directly out of my checking account and took off 6 months of interest and lowered my monthly payment. Buying a car moves it faster.

Answer 2

Finance the car if they will let you.. you already have the credit card. your credit will increase as you show more accounts that are paid on time. The also judge your rating by a ratio of what you make versus how much you owe.. so you have to pay one thing off before charging something else big.

Answer 3

The timely car note payments help, it shows you are credit worthy, meaning you can pay back borrowed money on time as promised. Credit cards are a whole other mess to avoid. Living within your means decreases reliablity on credit cards unless it's for airline tickets, hotel reservations,etc. The CC companies have become very decietful in the account practices.

Answer 4

Building credit takes steady on time payment history and more than minimum payments on cards.

Here is some additional info. Hope this helps.

Answer 5

having a car loan and paying on time, and consistently is good. Getting a credit card, use it, pay it on time (on or before due date is the key). I would also leave a little balance so that you're paying your creditors a little interest charges as well the pay it off.