A personal loan can increase your credit score. Over the long run a personal loan will likely cause your credit score to go up, assuming you make your payments on time every month.
It’s important to note that your credit score can initially suffer when you get a personal loan (or any new credit account for that matter). Newly opened credit accounts and hard credit inquiries are both potentially negative factors to your credit score . However, the most important category of information in the formula is your payment history, followed by the amounts you owe on your debts. So, as you establish a history of on-time payments and pay down the principal balance, the positive effects of a personal loan should start to become apparent in your credit score.
Are credit cards or personal loans worse for credit?
