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Old 02-09-2011, 12:40 AM
saxophonemaster saxophonemaster is offline
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Default Personal Loan to Increase Credit Score

I am 20 years old and although I am in college, I still have to be for the most part financially independent; my parents just can't help out much, which isn't their fault. Luckily I have college all paid for.

In regards to my question, I currently have a credit score of roughly 730 last time I checked, which most certainly isn't bad for my age. However, I will need to get a car most likely before I have money to spend on it. I would like to finance a small portion of the car; I would like to finance no more than $6000 which can be financed over a 42 month period with payments circling around $170 with an estimated high interest rate of 10%.

Like I said, I do have to support myself, and therefore I am concerned about a credit union saying I will need a cosigner, which I most certainly do not have anyone who could cosign with me. All my family has extremely poor credit. I was considering getting a small personal loan, around $1000 at most, which I already have in my bank account. I am hoping this would raise my credit score into the 800's and make the idea of a cosigner for the car loan negligible. I do receive roughly $17000 annually with approximately $7000 "free" money that is not dedicated to rent or living expenses.

Do you think the personal loan would have the benefits that I feel it would have, or is the error in my train of thought?

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Old 02-19-2011, 07:59 PM
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mycreditgroup mycreditgroup is offline
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Default Re: Personal Loan to Increase Credit Score

I don't think you're going to need a co-signer with that credit score. But if a dealer told you that you do, where you get the most points is going to depend on your personal credit profile.

Typically, revolving cards will give you the most bang for your buck assuming you have less than two right now. If you already have two or more, then I wouldn't get another.
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