subject: Loans Can Greatly Increase Your Credit Score [print this page] When you are looking to improve your credit score, getting a new loan may seem like a counterintuitive way to accomplish that goal. However, loans can greatly increase your credit score because of several key reasons. As long as you borrow responsibly and pay back what you borrowed, most loans will increase your score over time.
How Your Credit Score Works
Your credit score is based on information about how you have handled credit in the past. Paying back what you owe improves your score, and not paying it back decreases your score. If you havent borrowed money before, you wont even have a credit score. Therefore, to get a good score, you need to borrow money and pay it back. Getting loans from lenders who report payments to the credit bureaus is a great way to build your credit.
Managing Your Loan Wisely
Getting a loan doesnt automatically increase your credit score, though. Instead, you need to be responsible about paying it back, and over time, these records of your responsible management of debt will increase your score. The most important thing to remember is to make every payment on time. Many lenders let you set up automatic payments from your checking account to help you pay on time each month. Before borrowing, make sure you can afford the monthly payments for the entire repayment period. In addition, dont take out more than one or two new loans at the same time because new credit accounts can hurt your credit score. Instead, borrow in moderation to prove that you have control over your finances.
Get a Loan Through CreditNowUSA
Here at CreditNowUSA, we have tools to connect you to the best lender for your needs. Even if you dont have a good credit score now, we can help you find a lender who will give you a loan that you can repay to help increase your score over time. Start by filling out our online application today, and well connect you right away to the lender that may be right for you.
For more information, go to Loans at http://www.creditnowusa.com/Loans
