Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ QUOTE ]
The best way to build credit, if you have none, is to get a CD and take out a loan against the CD, paying it off, establishing credit.
[/ QUOTE ]
huh?
[/ QUOTE ]
CD is a Certificate of Deposit where you take x amount of money and put it in the bank for x amount of time. The bank will pay you a percentage on that money. Lets say 5.0% for 1 year or something and you will make money on it yuntil that year is up. It is easier to borrow money from the bank when you have something to back it up with. This is why banks are big on Home Equity lines and loans because the home will increase in value. Hope that helps some.
|