Can personal loans help build a persons credit?

+1 vote
asked Sep 16, 2017 in Credit by Corydodt (200 points)
Can personal loans help build a persons credit rating?

If I get a personal loan and pay the loan payment back on time will the personal loan I get help establish or build my credit rating up?

1 Answer

0 votes
answered Sep 16, 2017 by Shawn (105,070 points)
A personal loan will help build your credit if you are able to make the payments and not default on the personal loan.

If you default on the loan then taking out the personal could destroy your credit rating instead.

Only take out a personal loan if you know that you can actually pay it back. Although things do happen but only take out loans when you really need them and always be responsible with credit and loans.

A good credit rating is a must in today's world.

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