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Do not take out a loan just to build credit. That's simply a great way to waste money. Just get a credit card and pay it off each month (after the statement but
by clintonb 12y ago
Do not take out a loan just to build credit. That's simply a great way to waste money. Just get a credit card and pay it off each month (after the statement but on/before the due date). Setup automatic payments to make this easy.
Also, check out http://www.reddit.com/r/personalfinance http://www.reddit.com/r/personalfinance.
- caw 12y agoLoans are also bad because you start with a 100% full credit (e.g. $1000 outstanding on $1000 loan) and pay it down. Part of the credit rating is your balance to credit ratio, so 5% looks much better than 95%. I've heard that the ideal is <30%