Simply put:
Take a small personal loan for a few hundred dollars and pay yourself back after a few months time.
- It’ll build credit
- The amount will be less than $600 so easy to repay
- You’re nearly guaranteed to get approved
Simple explanation:
Go to your local bank or credit union and take a small personal loan for a few hundred dollars. The amount isn’t important, what is important is that you have the money to pay it back!
Simple concept:
As with any line of credit, the amount matters not, rather what matters is you make on-time payments and don’t default.
The idea here is you take a loan (whether you need it or not) and you this have a line of credit.
Now make the loan for maybe 36 months or so (depending on banks/credit union rules).
Pay the loan on time and pay it off early.
Simple Pros:
- You’ll have a line of credit you have payments due on (Good for credit Score)
- You’re obligated to make payments (Good for credit Score)
- You already have the capital to pay off the loan amount (Raises the success of approval thus it may show as a soft inquiry)
- It’ll boost your credit score with little money out of pocket
- If you pay off early you won’t have to pay the full percentage back (varies by lending institution)
Simple Cons:
- Whatever the percentage is, you’ll have to pay unless you pay off early in most cases.
- A potential hard inquiry (depending on financial institutions
Simple conclusion:
Taking a small personal loan out once in a while is a fantastic way to boost your credit score. How to boost my credit score can be answered here. It’s quick, easy, and you determine when you want to pay it off.
Have you ever taken a small personal loan just because?
Simple Money 