Trying to repair poor credit and raise my score.

Submitted by juanjon_68 on Wed, 03/04/2009 - 04:42

I have been taking out small loans every year and paying them off, never late with payments. Is this helping me repair a not so good credit history?

Hey if you pay your bill within the due date then it definitly help you to raise your Should pull your credit reports from the three credit bureaus company so that you can find out that what negative things are affecting your credit. so you can see & fix it.You Should validate the bad credit which may lower your score.dont move your debts to other credit card pay it off.Never open to many credit card just to increase your limits.


Wed, 03/04/2009 - 05:37 Permalink

Thanks aby for the response. I haven`t been late on any of the loans in fact i have paid them off early....Just wanted to clarify if this was helping me out by creating a good payment history. thanks again

Wed, 03/04/2009 - 05:51 Permalink

Hi Juanjon
To build up a good credit history it is not always necessary that you have to take small loans and repay it on time. If you have a credit card, you can also use it to build up a good credit history. For this, all you need to do is to make regular purchases (like utility bills and other monthly necessities) with your card and pay it within the due date. Paying off within the due date will not only save interest, but will also help you to build up a good credit history.
However, if you take loans regularly and pay it off on time, you need to pay interest on such loans, but on credit cards you can avoid the interest by paying it off within the due date.

Wed, 03/04/2009 - 11:21 Permalink
Anonymous (not verified)

thanks Mary, I do have a CC also and never late with my payments....but taking loans out once a year good also or not?

Wed, 03/04/2009 - 11:35 Permalink

Taking loan is good so long as you are able to repay off the loan along with the interest and other charges. I think that you should only take loans if it is an urgent requirement, otherwise not. Moreover, if you have a credit card, you should regularly use these cards so that the issuer does not close the card due to non usage. Credit cards are a very important means to improve your score provided you pay off the debts on time and avoid late payments.

Thu, 03/05/2009 - 05:35 Permalink

I will also suggest you to use your credit cards to improve your credit history further without going for new loans every year. This is because, whenever you apply for a loan, there is a hard inquiry in your report and it shows as negative in your report for 2 years. Now, more and more hard inquiries imply that you are credit hungry which gives a negative image to your creditors. Taking loans is good only if your require it, else not.

Thu, 03/05/2009 - 05:47 Permalink