Short Term Quick Methods of Credit Rating Increase

[AllGoNoShow]

Whats the best way to, on a short term (6 months), to build a stable credit rating.

I've heard a coupel of different methods...

1. Take out a small loan, pay it back quickly, through bank, then take out larger and do the same
2. Get a few credit cards, spend on them what yoou only have and pay them off early
3. Get steady payments taken out of your account for a few different things and proove the money is always there (Doesn't seem it would build quite as fas)

Any bankers/experienced people got any opinions or other ideas? This would be for a fresh 18 year old trying to quickly build something up.

[gp36912]

i wanna know too, heres what i am thinking of doing, getting a credit card. then just spend it on gas and pay it off on time. etc.

[max_boost]

It takes time to build up credit, can't be done in 6 months. Way too many factors go into building credit. You have to establish your credit file and it takes time.

For example, my credit rating 3 years ago was 684, today it is 765. All my vehicles have been purchased through loans, everytime I get a new car, it means a new loan, and the old loan gets paid off. I do this to build my credit higher. I have the cash to pay off the car but I rather leverage that and pimp out my portfolio. I have a steady job and on all my applications, I have provided only ONE employer. I might be over valuing it but I think that is crucial in your application.

Have you checked your credit rating yet? Might as well just pay the $22 and see it online at equifax.ca It'll tell you what you need to know and tips to improve things.

Why do you need to improve your credit so fast? ARe you trying to apply for something? If you are, guarantee you need a co-signor and a letter from your employer.

[88CRXGUY]

^I agree with what he said. It does take alot of time to where to build your credit, it can't just be done over 6 months. The Credit Breau wants to see that they can trust you when it gives you money, 6 months ins't enough time. Do you think that 6 months is like a probation peroid and then boom they are going to give you 20 g's and expect you to pay it back, haha I don't think so.

I've had good credit with over the last 3 years that I have been gaining it and I still needed to get a co-signer for certain things (car etc). So if you are going to need something right now, better have a co-signer lined up...

If you can gain great credit in 6 months instead of 3 + years like the rest of us have, your pretty much shit out of luck. By slim chance that you can do it, comes and let his know...

[AllGoNoShow]

The $22 would be a waste for me as it would show invalid

Plan on getting are car co-signed but when I was talking to some of the places I am looking at dealing with, they say go for 6 months, build up credit so we can extend your pay period and get your payments down a little. Just going on their advice, insetad of jumping on a car with $700 a month payments because I want it, go for 6 months and bring it down.

Its not that I need to improve my credit, because it doesn't exsist, not 18 yet. Its that when I turn 18 I want to buidl it up before next spring.

Co-signer and Letter won't be an issue from what I can see right now, neither will monthly payments, I just want to get something there before I go in with no credit trying to buy something.

[MIWYFSHOTTER]

there no such thing as short term quick methods. With no credit at all the bank won't even give you a small loan without a co-signer. Start with a credit card and work your way up. It takes time... a long time.

[88CRXGUY]

He's not even 18 yet I dont think that they are going to give him a credit card. Since that he is under that age its going to be really hard for him/her to get some sort of credit. No company will sell you a car without a co-signer, due to the fact your under 18 and you don't have any credit.

[AllGoNoShow]

Originally posted by 88CRXGUY
He's not even 18 yet I dont think that they are going to give him a credit card. Since that he is under that age its going to be really hard for him/her to get some sort of credit. No company will sell you a car without a co-signer, due to the fact your under 18 and you don't have any credit.

No shit... hence why I started this thread and there is that thing called 6 months? Fucking people these days, I'm not 18 RIGHT THIS INSTANT but when I do I want to build up credit quickly (within 6 months) to help out a LITTLE, never said I would be able to sign for a car myself or anthing myself, but something is better then nothing.

[90s_tuner]

6 months is wayyy too short. Your best bet is to start with a credit card the day you turn 18. If you try and take out a small loan from the bank on your own they will deny you. When you turn 18 the CC will be your only choice. Pay that off each month nicely and eventually you will build from there.

[4DoorGTZ]

I know you stated its for a car loan, but in another similar instance (getting a mortgage) getting credit cards/loans might not be helpful in the short term.... The AVAILIBLE credit is counted as debt, and the bank assumes you'll be making payments on it (even if its paid off and empty)

If you or someone else is in that situation pay them off then cancel them before you apply, it will allow you to qualify for a bit more. I had that problem as I keep 1 visa and 1 line of credit for emergencies..... Time to cancel them and use some savings for emergencies instead.

[AllGoNoShow]

Thanks guys....


One more question... even if someone Co-signs for say a bank loan, if its paid off, does my credit still go up, or does theirs, or does anyones? I'm not all positive situations here, not missing payments or such, say 1 year loan is paid off within 6 months no problem, what happens with the signers and cosigners credit?

[MIWYFSHOTTER]

Originally posted by AllGoNoShow
Thanks guys....


One more question... even if someone Co-signs for say a bank loan, if its paid off, does my credit still go up, or does theirs, or does anyones? I'm not all positive situations here, not missing payments or such, say 1 year loan is paid off within 6 months no problem, what happens with the signers and cosigners credit?

You both will benefit!

[AllGoNoShow]

Thats what I like to hear. Much appreciated everyone

[kaput]

.

[AllGoNoShow]

I heard they no longer accept cell phone bills as credit?

[MIWYFSHOTTER]

Cell phones can only give you bad credit (if you don't pay them). Its wierd.

[Khyron]

I took out a 500 dollar loan when I was 16 and paid it back over 6 months. Do the same, maybe with 2000.

Khyron

[benyl]

first of all, go talk to a bank.

Secondly, if you haven't already, get a SIN number.

Are you a student? If you are, you can get a credit card (even if you are under 18). Go look at the booths at the u of c. There should be pamplets there. They will give you a credit card even without a job. Probably will have a $500 limit. Get a sears card. Get an Esso gas card. You don't even have to use them and they "help" your credit rating.

[Mckenzie]

Best Advice: RRSP loan.

Most banks will give you an on the spot RRSP loan into one of their mutual funds and they use that as collateral for the loan. The payments come out every month from your account.

This is how I started.....that is the advice the bank gave me when I was 17 and I have done it every year since.

Taking out a loan and paying it back right away tells the credit rating agency nothing about your ability to responsibly pay something back. Start with the above, then get a credit card when you are 18 and these two things will help you establish a great credit rating.

DONT:

-applying for store credit regularly
-applying for credit cards regularly

(these both hurt your rating)

[benyl]

Originally posted by Mckenzie


DONT:

-applying for store credit regularly
-applying for credit cards regularly

(these both hurt your rating)

This is a myth.

You credit rating is not affected by the number of times you apply and get something. It is affected by the number of times you apply and get denied.

Banks look for multiple credit checks to see if you are "shopping" for a loan or if you are being denied credit elsewhere (i.e. car loan). If you are being denied, they will most likely deny you credit as well.