Question by thetachi136: Secured loan to increase credit score?
I am going to buy my girlfriend an engagement ring soon. It will cost several thousand dollars. I have the cash but my credit score is around 600-620. Should I get a secured loan to increase my credit score or just buy it cash? I have an auto loan that is paid on time, no collections and nothing on credit cards.
Best answer:
Answer by SPIFIMAN1
A installment loan paid out over 12-months will increase your score but depending on your interest rate it may not be worth it.
You can also raise your score quickly simply by using your credit cards for every day thing and paying them off in full before the due date.
I have 3 that I have used for just about everything I buy for the last 2 years and always paid in full every month, never paid a cent in interest or fees, made several hundred dollars in cash back rewards and raised my credit scores over 150-points.
Not bad for using someone elses money for free.
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