A few months ago, I read a blog post about how to improve your FICO score. Of course there was a lot of the usual advice like always pay your bills on time, especially any loans or credit cards. But there was one thing I hadn’t really considered before that I decided to try. They suggested, going to your local bank and taking out a small installment loan and repaying that over a few months.
So back in August, I went to my local bank and applied for a loan of $1000. I asked for a secured loan which meant that I’d need to maintain at least $1000 in my checking account until I paid off the loan. This was no problem since I simply took their check and deposited it right back into my checking account. Lastly, I set up automatic payments where my loan would be paid from my checking account, so I wouldn’t mess it up and forget a payment. I decided to pay it off in just four months. So, I’m coming up on my last payment in December.