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What are the best credit builders, credit cards or a consumer loan from a financial institution, does one weigh out more than the other as long as you make your payments on time and regularly? I would rather get a consumer loan from a bank or financial institution than I would deal with a credit card who could raise my rates on a whim by checking my activity on my credit report.
Get an additional loan or line of credit from a trusted, safe lender. It is best to also diversify the type of credit. If you have underwritten an auto loan, then adding a line of credit or revolving credit such as a secured credit card is suggested.
Mortgages->Auto Loans->Term Loans/Student Loans->Revolving Accounts (Credit Cards).
When I tried to improve my credit I signed up for a credit card and would buy a piece of gum then pay it off immediately. You can also go online and get a free credit report but it never gives you the score unless you pay. So if you have the money to pay for the score monthly then I would do so but if not just check your credit report and call any outstanding credit defaults. Hope this helps xoxoxo:)
I think anything that establishes a payment history would be a good way to build or repair credit history.
I would do the loan option instead of a credit card, cards have fees and reprocutions if you pay late, which could lead into more problems down the road.
Well, if you do not have credit chances are you will not get improved for loans so basically our economy is manipulating us. If you overdraw your bank 25 cents you (in my case) owe 32.25! If you can not pay 25 cent you obviously can not pay 32.25. Things happen and the lower class folks are the ones suffering.
I don't know if I agree coffeebean's advice on paying for your credit score each month. You have to be very careful that you are actually paying for your FICO score and not some made up score by a credit monitoring service. If it doesn't say FICO score it means nothing to lenders. There are a lot of decieving companies out there that are trying to scam you of your hard earned money so just please be cautious.
Scott I really appreciate your concern.
I think if you are trying to mend your credit the best way to go is with credit cards and keep them at a low balance say 10%. Secured cards are a better option.
A friend of mine recommended this site to me. She seemed very happy with it :) Take a look TOS violation removed--Morningstar
Thank you for a great link joey, I went there to check it out, there is a wealth of great advice there. I think that people here will find it very useful, looks like this thread is going in the right direction, thank you for keeping it headed north.
I'm sorry to be the center around so much controversy but the reason I started my site was to keep people from signing up to "free credit report" scams and these credit repair companies out there. Although your advice is good people could just go to my site and learn how to correct and repair their own credit for free. I actually just posted a link to a very informative article published by the FTC regarding credit repair companies. I would advise everyone to atleast check it out. Repairing your own credit is not that hard. There is also some great advice right here in this forum as to how to repair your own credit. I just don't know about paying someone else to do it for me?
Deposit Loans
TOS VIOLATION-Richard
What type of firm is this? Is this some sort of a scam? I can't imagine how much it costs a person to do this.
I think its just an advertisement. Needs to be treated by some moderator here.
credit
I've asked this on another hread, I think. Can someone please explain to me the difference between a Credit Score and a Fico Score? IS there a difference?
FICO is the standard. VantageScore is a score developed by the CRAs (different scale, different formula); each will cost you money to obtain, but if you buy one, go with FICO.
Scores differ because the method of calculation differs. The model might be the same but each CRA have their own calculations. Hence the discrepancy.
When I do a search for fico, credit score comes up, so I am thinking that they are essentially the same thing.
From how I understand the difference, FICO is the brand name of a credit score, kind of like Kleenex vs tissues. For lending purposes, most companies are going to go with the Kleenex version (FICO), but you can get other brands too. I guess VantageScore would be Puffs! ;)
credit
That's a good comparision, 'ISM'. That explain it in 'Lamens Terms', I guess you can say. Ok...I'm LESS confused, about a Fico Score now. Thanks.