A personal loan can raise your credit score over time. The two most important factors in the FICO credit scoring formula are your payment history (35% of your score) and the amounts you owe (30%) relative to your credit limits or original loan balances. As you establish a track record of paying your loan on time and the principal balance starts to decline, a personal loan can be an excellent catalyst for your credit score.
Upstart Answers
- Do personal loans raise credit scores?
Are personal loan payments tax deductible?
