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TylerNeibarger 08-22-2013 04:06 AM

building credit by taking out a loan
 
Is it possible to build credit by taking out a loan and paying it off using the loan money. Not paying any interest back, just the loan payments where it doesn't build any interest. If that makes sense. Or is the only way to build credit by taking out a loan and to pay the interest back on it?
I'm not going to do it, so I don't need to know it's a bad idea. I just want to know which way will build credit.
I was asked this question! I don't need personal advice about taking about loans and such, I just want to know about the question that I asked, not other advice. Thanks.
You guys are not answering my question! You're giving me bogus answers that are not of any use!

Dana 08-22-2013 04:06 AM

building credit by taking out a loan
 
You will have to pay interest. Basically you pay back more than what you barrowed. Not a good idea.

RyanM 08-22-2013 04:06 AM

building credit by taking out a loan
 
You need to HAVE credit before you can take a loan. You don't get handed a pile cash without established credit.

Stan 08-22-2013 04:06 AM

building credit by taking out a loan
 
As of February 2010, you have to be 21 and employed full time 12/18 months. You also need 24 months of activity to get a good score of 660/749. If you meet both categories and have $500 in a savings account, you should be able to convert it into a secured credit card from a bank. Just make sure they report to the credit bureaus and use it for small items and pay the balance the following month.

mag1124 08-22-2013 04:06 AM

building credit by taking out a loan
 
In short, no. I am not aware of a loan where interest does not begin immediately.

Consider a "secured" credit card to build credit.


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