Ask Terry Questions FICO score

FICO score

By Terry Savage on December 21, 2023 | Credit/Debt

What is the best way to increase one’s credit score from these two choices? Obtain either an auto loan or a home equity loan. FYI, I own my house and and it’s paid off, i.e. no mortgage.

Terry Says

Those aren’t among the best ways to improve your credit score, if it is too low. Instead, get a secured credit card — where the limit is based on your deposit at the issuing bank.
Charge regularly, and pay off the entire balance EVERY month on time! That will boost your score more than taking on more debt!

This article will help you understand how secured cards work:

https://www.bankrate.com/finance/credit-cards/secured-vs-unsecured-credit-cards/

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