I've heard taking out a Personal Loan can help my credit. How is that?

HarrisHarris Member, Administrator, Moderator

I thought having less debt is better.

Comments

  • Jeffrey CJeffrey C Member

    In general, installment loans have little affect on FICO scores.

  • Diana ZDiana Z Member
    edited September 2016

    Jeffery C That is not so. Your FICO score can be negatively affected, and given other factors, quite substantially, if you don't have a current installment loan. This is especially true if you are carrying a substantial amount of revolving credit debt. Best wishes!

  • Jeffrey CJeffrey C Member

    If you have a substantial amount of revolving credit debt, the last thing you should be worrying about is your small tweaks to your FICO score.

    Credit mix is only about 10% of the scoring factor.

    Also, if you have a student loan, then you already have an installment loan.

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