intelslacker said:Do you guys have any tips to share to QUICKLY build a POSITIVE credit history?

I am a College student and just started with my first two credit cards a month ago. I would like to quickly build a positive credit history.

So far I have been paying off both credit cards leaving a less than 5% debt as I heard that paying 100% of the debt is not always a good thing.

I am now planning to take a 24 Month Secured Personal Loan at my credit union and pay it off within 12 months (overpaying 200%). In this method I am planning, the collateral would be a 12 Month CD account at the same credit union making 4.70% - while the Secured Personal loan would come with a 3.8% APR, hence I would be making 0.9% after all on my money, and still build a credit history.Building a history takes time. Paying your bills on time and not abusing your existing accounts (running up large balances, missed payments, etc) are the only ways to truly build your history.

Paying your credit card in full is just as good as keeping a balance from month-to-month. You get credit for the 'paid as agreed' notation either way, and no extra points for paying interest.

Getting the secured loan may help some, as installment loans are treated differently than revolving debt. But the interest you'll pay will not be worth it, since the boost will be marginal. This strategy is best for those who, for whatever reason, cannot get approved for any unsecured loans (ie credit cards). Since you've already gotten two, that doesnt seem to apply to you. You were netting 4.7% on the CD, now your only netting .9% - so the loan is still costing you 3.8%. And are you sure it is a straight 3.8% APR on the loan, or is it 3.8% added to a base rate?

For a quick boost to your score, although the benefit is being phased out, is to get added as an authorized user on an older account with a good payment history (like one of your parent's cards). The history of that card will be factored into your score, so if it is a 20-yr-old account, your score will be based on a 20-year history. But that will be changing any time now, so any boost will be temporary.

If you dont want to search for answers to questions that have already been asked and answered 100s of times, atleast post your questions in the Question Thread stickied at the top of the first page.

It is highly unlikely that your credit union is offering a secured loan at 3.8% APR. Most likely that is 3.8% ABOVE what they are paying you on the CD. That is, net you have to pay 3.8%. Not worth doing that just to "build credit."

intelslacker said:I would like to quickly build a positive credit history.
Why? Do you plan to buy a car you can't afford or something equally financially silly?

Just pay in full every month and wait 2-3 years. That's all you have to do.

I took my wife from 0-750 in a year, but I'm hesitant to post the method I used for fear of abuse.

Get a couple student credit cards (2-3). Pay in full on time, and they should increase your limits over time. After college apply for real cards.

Auream said:It is highly unlikely that your credit union is offering a secured loan at 3.8% APR. Most likely that is 3.8% ABOVE what they are paying you on the CD. That is, net you have to pay 3.8%. Not worth doing that just to "build credit."

After some research, YOU ARE RIGHT. They charge 2.5% ON TOP of what you earn on the CD.

But then again I haven't double checked with the people at the bank, just read the website. I wonder if the interest you make on the CD is not released until you pay off your debt.

ArbolLoco said:I took my wife from 0-750 in a year, but I'm hesitant to post the method I used for fear of abuse.Abuse? FWers don't know the meaning of the word!

Give us a try, I'm sure someone here has either tried or already thought of it.

Getting a good score? For what? If you apply for credit, it looks at your history as well. Even with something in the 700s, it will still show a very shorty history... So maybe if you can get added as an authorized user on some aged accounts, but I don't even know if that works anymore.