 TITLE: Can a Personal Loan Hurt My Credit Score? CONTENT: How a Personal Loan Could Help Your Credit\n------------------------------------------\nDespite the risks, your personal loan account may wind up helping you improve your credit. First, it adds positive payment history to your credit report, assuming you regularly pay on time. It can also add to your credit mix, especially if you previously had only credit cards and a personal loan is the first installment loan in your name. Credit scoring models reward borrowers who are able to capably oversee multiple types of credit.\nA debt consolidation loan can also help your credit. This is a type of personal loan that combines multiple debt balances into one loan, ideally at a lower interest rate. It may also reduce your credit utilization, which is an important scoring factor that compares your revolving credit balances with your credit limits. High balances can drive up your credit utilization and hurt your credit, but your credit utilization on those cards will decrease to 0% when you transition those debts to an installment loan with a debt consolidation loan. That can have a positive effect on your credit score. END