Is it better to get 1 CD for a large amount or several for lower amounts? I'm trying to rebuild credit?

Question

like a cds of $1,000 for 5 years and another at $3,000 for 7months or- $2,000 for 7 mos then in 3 months later $2,000 for 7 mos then in 3 mos like $4,000 for 6 mos

Answer 1

Having CD's wont affect your credit one way or another.

Answer 2

Just having a cd won't help your credit...but using a cd for collateral on a loan could increase your chances of obtaining a loan, if your credit is bad.  Paying back on loan, and time, are the ways to rebuild your credit.

Answer 3

CD'S WONT DO IT AS IT'S YOUR MONEY TO BEGAIN WITH , YOU NEED SMALL LOANS

Answer 4

It all depends on the rate. If you want to rebuild credit using a CD then you should ask your bank about a cash secured loan. Basically they'll take your CD and secure it with a loan and then you will be paying an interest rate of whatever your CD gives you plus a margin. So lets say you get a CD that pays 2.5% then you might be able to get a loan for that money charging you 5.5%.

It also depends on if it is simple interest or compounded interest. Are you earning money off of your initial balance or off of your initial balance plus your monthly interest. Hope that helps. Let me know!

Answer 5

Neither.  DEPOSITS accounts such as CDs are not reported to the credit bureaus.  Only information actually in your credit file is used to determine your credit score.  Therefore, CDs do not exist in the FICO formula.