I have a scenario someone suggested to me and wanted to know if there is any validity to it?
Here is how the idea would go:
One would apply for a small loan they knew they would get. After receiving the loan keep the money and not spend it. Then use the money to pay the loan off over time. You would still have to pay the interest, but is worth it to establish good or improve ones credit!
So is this true?
Would this increase your credit score?
If so, what kind of amount to time ratio would work best to pay it off?
As always any advise would be greatly appreciated!