Can I raise my credit score by getting a personal loan, and then paying it back right away?

Answer 1

Not paying it back right away. Paying off all of your debts immediately does not help you with improving your credit. Because you should show lenders that you are a good BORROWER. With paying off the whole balance in one payment you show the lender that you pay your payments in full once you have money and you don’t when you are financially in trouble. Therefore you are not a good borrower to a lender (you are risky and they don’t make money out of you).

I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your future loans such as home mortgage and interest rates.

You can find some useful articles regarding "Improving Credit Scores" here:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php

Answer 2

SUB-PRIME MERCHANDISE CARDS: The
single most cost effective (and
powerful) tool for consumers to
increase their high credit limit and
decrease their debt to credit ratio is
the use of Sub-Prime Merchandise Cards
which report to one of more of the
major credit bureaus.

Unfortunately, despite their immense
benefits, these are the most
misunderstood cards in the credit
industry. A large portion of the
misunderstanding is due to marketers
misrepresenting the cards and the
growing number of companies promoting
them. When you learn how they work one
quickly understands why they have been
the subject of much misrepresentation.

A Sub-Prime Merchandise Card is
nothing more than a card attached to a
line of credit which allows you to buy
merchandise from a specific vendor
(usually the company that sold you the
card). The merchandise (in most cases)
will be purchased through a catalog or
online mall.

Where the problem arises is that the
cards are marketed almost exclusively
to the sub prime market via email,
telemarketing and direct mail etc. The
reason for this is they can advertise
almost irresistible offers like "$5,000
Credit Card... GUARANTEED! No Credit
Check! NO Cosigner! You cannot be
turned down!" or "Unsecured $10,000
Credit Line! Everyone Approved!". I'm
sure you get the idea...

While there are many companies which
do this and are a "shady at best",
there are a few which do it
legitimately and it's the best kept
secret to build your credit and build
it fast.

Here's how it works: the company
approves anyone with a pulse
(literally) and gives them a card for
$2,500 to $12,500 with NO credit check
and NO cosigner. However, the card is
only good for merchandise through their
website or catalogs and the consumer is
required to put down a deposit on
whatever they purchase. After the
deposit is paid, the remaining balance
is financed on the card.

For example. A person buys $1,000
worth of merchandise. Their deposit is
$300 so they then finance $700 on their
merchandise card and make payments.
Sound like a scam? If you say "Yes"
like most people then you're missing
the point... big time.

With a legitimate Sub-Prime
Merchandise Card your credit line WILL
be reported to at least one major
credit bureau (or more). This means if
you get a $5,000 card and you finance
$500, on your credit report it will
look like any other credit card and
will do three extremely important
things for you.

1.) It will increase your current
"High Credit Limit" by $5,000 almost
overnight as the account "looks" like
any other unsecured revolving account.

2.) By carrying a small outstanding
balance it will positively impact your
credit report by building and showing
potential lenders your credit
worthiness.

3.) With a good payment history you
are virtually guaranteed to receive
"legitimate" pre-approved credit offers
in the future due to other lenders
renting your name from the credit
bureaus.

This technique is hard to beat for
both cost and effectiveness. Of
course, the whole key is knowing
exactly which cards report to the
credit bureau and offer the best rates.
The only thing more effective is...

For more information on the CREDIT
SECRETS BIBLE you may visit:

http://gaby1221.niesong.hop.clickbank.net

Answer 3

The way it was explained to me, by a credit reporting agency, is that having loans that you have paid off is great for you but does nothing for your credit score, except make it lower. If you have credit cards or loans that you pay on time that aren't maxed out, your credit score will be higher. I was advised to get a credit card and use it.

Answer 4

Try to get a mortgage. If your credit is above 580 you should be able to find one. Your rate will be high and you'll have to pay for mortgage insurance but it's much easier to get a mortgage than a loan. Your home is your most important investment and a home is a necessity so sometimes it's easier to get a mortgage as opposed to a regular unsecured loan. The only problem you might have is if she has signed a contract with the other company. Good luck!

Answer 5

Get a credit card, use it but pay it off every month so you're not paying interest.

The worst thing you can do for your credit score is make late payments. Owing money doesn't hurt you as long as you're making the payments on time.

Answer 6

Nice try, but no. You create good credit by paying over time. Now to have a credit card, buy something and pay it off when the bills comes is one way, but you need to do this for like 6 months. Hope this helps

Answer 7

I think your credit score would improve more if you got a personal loan and you made on time payments for a longer period of time, like a year.

Answer 8

one of the basic concepts at best of raising your credit score is the removal of negative items from a report. Therefore, in this article, we'll discuss some ways to raise credit score know by very few.

http://www.freeadstb.com/improve_credit/

Answer 9

(No) Most of the time you need to have a loan or debt for at
least 6 months. That has been my experience in the past.

Answer 10

take out any kinda loan and pay it off in 6 months. that will help tremendously. hang in there and give it time to work. you will be pleased at the end.