Is it a good idea to borrow a high-APR auto loan, although I don't need it, to build my credit rating fast?

Answers:2   |   LastUpdateAt:2012-10-19 15:39:03  

Question
pratima
Asked at 2012-09-20 18:00:02
The manager in the finance department suggested that I should at least keep the loan for 24 months to increase my credit history significantly. So my plan is to pay most of the loan in 1 or 2 months , and pay off the rest in 22 to 23 months . I figured this way I can avoid paying too much interest to obtain the so-called " momentum " . Is this idea sounds silly or reasonable ? Thank you !
Answer1mary smithAnswered at 2012-10-05 06:15:04
some creditors do not report as often as we like when we are trying to increase our credit score . if you pay quickly then I would think that your plan seems justifable . Talk to the bank before you do, be honest as finance managers .. the car business is full of a lot of people Sneeky (I worked in the accounting of doing business)
Answer2LahnaAnswered at 2012-10-19 15:38:53
Some banks will set a minimum monthly payment that has nothing to do with the balance . Therefore, it may not be able to do what you're wanting . MedlinePlus MedlinePlus No need to have a high in April to loan your credit will be affected in a good way . What is important is to make your payments on time every time . Having a greater amount borrowed is good , but more important is to make your payments on time . MedlinePlus MedlinePlus If you really want to help your credit you can go to your bank and talk to them about how to get a small loan of $ 500 or $ 1000. Then set up a separate account with them and put the money in that account . After just set your payments automatically withdrawn from the second account . That way you can forget about that money and payments will be made for you . Be sure to find out from the loan officer the amount of interest on the loan and will ensure that the additional money is put into that second account to cover that. MedlinePlus MedlinePlus Once the loan is paid in and get another . They should have no problem doing this for you if you explain that you are trying to build your credit a bit . And it will cost much less than with a high loan to do so in April .
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