subject: Installment Loans Can Boost Your Credit Score [print this page] Everybody is looking for ways to improve their credit score because a higher credit score means lower interest rates and ultimately more cash in your pocket. However, you may not know that one of the most effective ways to boost your credit score is with an installment loan.
An installment loan is a consumer loan where the funds are distributed to the borrower in a lump sum. The borrower repays the loan over a period of time known as a term, and over the course of the term, each monthly payment is the same. The two most common examples of installment loans are mortgages and car loans. Both of these are examples of secured installment loans. The term "secured" means that the loan is secured by collateral. That means that if you default on your payments that the bank can seize the house or the car. However, it is also possible to get unsecured installment loans. These loans are simply guaranteed by your signature.
Regardless of which type of installment loan you get, it will improve your credit score. Your credit report is basically a history of all of your recent borrowing. In most cases, it only tracks the last seven to ten years. When a bank sends a report to the credit agencies, they include details about how much the loan was, how much your monthly payments are, and whether or not you make the payments on time.
When you take out an installment loan, the bank will notify the credit reporting agencies each time that you make a late payment. In most cases, they will not claim that you made a late payment unless you let the account get a month behind. Therefore, you do not need to worry about being a day or two late occasionally. Your on-time payments will create a positive credit history, and each month they will improve your credit score. By the end of the loan"s term, you will often see a huge positive jump in your credit score.
If you are ready to improve your credit score with an installment loan, we at CreditNowUSA are ready to help.
For more information, go to Installment Loans at http://www.creditnowusa.com/Installment-Loans
