Thread: Credit and Credit Scores: A short lesson
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Old 12-27-2006, 02:51 AM
The X-Factor The X-Factor is offline
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Default Re: Credit and Credit Scores: A short lesson
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I know what a CD is I just fail to see how borrowing against the CD is the best way to establish credit. The best rate I currently find for a 1 year CD is 5.46%. Put yourself in a 25% tax bracket and you are effectively earning somewwhere around 4.25% after taxes. Where are you going to get a loan for less than 4.25%?

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You wont get one that low now. The prime rate is 8% now. What he is saying is to build your credit and get it started its not a bad idea.
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