i was wondering this for a long time so i finally remember to post it and see if it is true.
i heard that if you send your payments with your personal check you can build credit
is it true??????
2007-08-10 04:00:56 · 10 answers · asked by TTC #2 Baby Dust MEEE! 5 in Business & Finance ➔ Credit
No. Checks are similar to cash. You build credit not so much by paying bills on time but by the ratio of outstanding revolving debt to total open credit lines. Paying on time is almost a given, but available credit to debt ratio is a more important factor.
2007-08-10 04:04:09 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Paying by check or using checks will not enhance your credit standings. Paying on time and paying early and even being ahead in your payments and paying things off early will greatly enhance your credit standings. Also, charging and then paying things off quickly works wonders for your credit standings. The best way to do that is to get a charge card but don't use it to go way into debt and then have to pay only so much a month with a large bill charged up. Instead, save all the money for the item up first and then charge it on the card. Then pay it off with large payments in 2 to 4 payments and watch your credit ratings soar. For example, you charge $400.00. Pay $50. the first payment, and then $150.00 the second payment, and then the rest of it the 3rd payment. The credit company would usually have you paying $10 to $15 payments over several years with a huge interest rate on that. When you pay it off that way, it takes all the interest rate way down so you don't lose money, and soars your credit rating way up becasue they send this information to the major credit score companies. This will only work for you if you do not get careless and keep your wits not to charge unless you have your money collected for your items first. Otherwise you will just be caught up into the credit card sickness like everyone else is. We have done this for years and have no current debts on any credit cards but have great credit ratings.
2007-08-10 11:20:19 · answer #2 · answered by 'Sunnyside Up' 7 · 0⤊ 0⤋
If you are paying bills how else would you do it? Using credit cards wisely and paying bills ontime is critical! My credit score just dropped 100 points I had a new mortgage and never got the coupon book. Missed 2 payments. Had my wallet stolen canceled my credit cards got new ones but forgot to change the account numbers for online bill pay had 2 bills 1 month late!
That is all it takes to lower your credit score. Get a credit card (not debit) use it pay it 100% off pay all you bills ontime and your credit score will rise. Also do not move too much they like to see stability as far as adressess
2007-08-10 11:10:50 · answer #3 · answered by komondor4 3 · 0⤊ 0⤋
It depends.
If you are talking about payments for credit cards or installment loans then the answer is yes. It does not matter how you pay, as long as you pay on time every month.
If on the other hand you are talking about utilities, cell phones, gym memberships that type of stuff then the answer is no because this type of account is not reported to the credit bureaus. And banks do not report checking account activity because it's not a loan.
2007-08-10 11:12:19 · answer #4 · answered by ? 7 · 0⤊ 0⤋
Checks don't help you build your credit. You must pay on time and double or triple your minimum monthly payment. Also cancel any unused lines of credit that you may have. Finally try and maintain a 50% debt to income ration, that usually raises your credit score.
2007-08-10 11:14:39 · answer #5 · answered by jon-jon 1 · 0⤊ 2⤋
I think it's good if you don't have a pattern of writing bad checks, but the best thing to do is use your checks to pay bills on time: that's what gives you a good credit rating.
2007-08-10 11:04:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
That is not true.
Credit rating doesnt have to do anything with payment methods.
It has something to do with:
payment history
how long have you had credit
how many credit accounts you have.
what kind of credit accounts you have.
how much balance you carry.
your limit to available credit ratio
your debt to available credit ratio
going over your credit limit or have a late payment
how many hard inquiries you have on your credit file
Good luck and I hope I helped
2007-08-10 12:46:03 · answer #7 · answered by fine touch of class 4 · 1⤊ 0⤋
Not any different than any other type of payment - you build credit by paying your bills on time, it doesn't matter how you pay.
2007-08-10 11:03:42 · answer #8 · answered by Anonymous · 2⤊ 0⤋
Have not heard that. The only way to built Credit is if you pay your bills on time.
2007-08-10 11:05:12 · answer #9 · answered by devilish1965 4 · 0⤊ 1⤋
It doesn't matter. What matters is if you pay on time or not.
2007-08-10 11:03:35 · answer #10 · answered by dzjynn 2 · 1⤊ 0⤋