How do loans affect credit scores?

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asked Jun 27, 2017 in Credit by Ryan4 (240 points)
How do loans affect credit scores?

1 Answer

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answered Jun 27, 2017 by Carter3 (12,290 points)
Loans affect peoples credit scores in a few ways.

If you pay your loan payments on time you can raise your credit score but if you default on your loan payments you can get a bad credit score which can and will affect getting future loans.

If you get a loan make sure that you can pay it back without any problem.

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