| Looking for ways to improve your FICO score? This | | | | the date since you will have to ensure the certificate |
| guide might help by introducing you to secured loans | | | | of deposit matures on or before the loan is due. This |
| and the role they play in improving your credit scores. | | | | certificate of deposit will be used to off the loan |
| Besides making regular payments, getting a secured | | | | proceeds once it matures. Although the certificate of |
| loan is a surefire way of boosting your scores. | | | | deposit pays you interest, the loan will most likely have |
| Here's how to do it. | | | | a higher interest rate so you still need to pay the |
| First, look for a local bank that provides small, | | | | difference. Just a word of caution, be sure that you |
| short-term loans that are secured by a cash account. | | | | pay off the loan regularly. Late payments will definitely |
| Make sure that your prospective bank reports lending | | | | affect your score adversely. |
| activity to any of the three major credit reporting | | | | Third, after making a loan transaction with the bank, |
| bureau (TransUnion, Experian, and Equifax). If unsure, | | | | double check if it reports this activity to the bureaus |
| ask the loan officer of how they process small, | | | | within 30 days of completion. Expect an improvement |
| short-term loans that are secured by a certificate of | | | | in your FICO score once the bank has completed its |
| deposit. | | | | report and the major credit bureaus has |
| Second, once you have opened an account, say a | | | | acknowledged it. |
| $500 account, borrow $500 against that new account | | | | Repeat the process, then you're on the right track of |
| using the shortest loan period possible. Take note of | | | | boosting your credit score! |