Can personal loans increase your credit score?

+1 vote
asked Oct 31, 2017 in Credit by Cobweb (310 points)
Can personal loans increase your credit score?

If I get a personal loan will it help to increase my credit score?

1 Answer

0 votes
answered Nov 1, 2017 by Yurall (270 points)
A personal loan will increase your credit score if you do not default on any of the payments or miss any payments.

But if you miss payments or default on the personal loan then it will ruin your credit. Only take out a personal loan or other loan if you know you'll be able to pay it back on time and not default on the loan.

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