Sometimes I am asked a question during the week that reminds me that others may have the same question and that I should share the information. For example, this week, the mother of a potential first-time homebuyer told me that she had a car loan for her son’s car. The loan was in her name solely, and she was making the payments. She wanted to know if he started making the payments would that improve his credit score?

The answer is no. The creditor does not report who makes the payments. They only report the credit history of the person on the loan. The best way for her son to improve his credit would be to get one (or preferably two) credit cards and use them every month and then pay them on time and down to zero each month. As time goes by, he should request to increase the limit on the cards but never have the balance come close to the limit. It really does work!