Loans and Titles

• Big purchases like homes and cars are usually financed, and the account history goes onto your Experian, Equifax and TransUnion credit reports. Your name goes on the title as owner of the house or vehicle, although your lender shows up as a lien holder until you pay the owed balance. A person can add your name to their house or car title, but this action will not affect your credit unless you are also on the loan. The only things that go into your credit score are payment-related activities, debt load, credit history length, new accounts and the types of credit you use, according to the Fair Isaac Corporation scoring company.
  
  

Co-Signing

• You can buy a big-ticket item with another person as your co-signer if your credit is not good enough to qualify you individually. The loan is granted solely on the strength of the other borrower's high credit score. Both names then go on the title, but your credit is helped by being a co-borrower if all of the loan is consistently paid on time. You and your co-signer are equally responsible for loan repayment, and both credit ratings are ruined if you make habitually late payments or default completely on the loan. You both lose the home or car, even though your names are on the title, if the property gets foreclosed or repossessed because of nonpayment.
  
  

Alternative

• You do not have to get a mortgage or car loan with another person to help your credit, because almost everyone qualifies for a secured credit card. You guarantee a secured account with your own funds by making a bank deposit in the same amount as your credit line. You use the credit card to buy things just as you would any other account and make at least the minimum monthly payment, and the bank reports this activity to Equifax, Experian and TransUnion. Eventually your card is converted to a traditional credit card if you prove you will pay on time for 12 to 24 months.
  
  

Considerations

• Having your name on a house title does not directly help your credit, but home ownership looks good on credit applications. Most lenders ask whether you rent or own a house when you apply for a new account. Owning a house is a sign of stability, especially if you have lived there for a long time.