 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: How Do Lending Circle Loans Affect Your Credit?\n-----------------------------------------------\nA lending circle can impact your credit in the same way as other installment loans. The benefit is that the programs often don't have credit score requirements or charge interest, and there may be low or no fees.\nAssuming the loan is reported to a credit bureau, a lending circle installment loan can help your credit by:\n*   Letting you build positive payment history if you make the payments on time\n*   Adding to your credit mix\n*   Establishing a new tradeline in your credit report\nIf you've already established credit, opening a new loan may lower the average age of your accounts, which might hurt your score. You can ask if the lending circle provider requires a credit check (many don't), as a hard inquiry could hurt your scores a little as well.\nMissing your payments could hurt your credit when the late payment gets reported. And past-due accounts could be sent to collections, which will also cause a credit score drop.\nIf you think you may have trouble affording a payment, reach out to the lending circle coordinator immediately. Some may be able to work with you to find an alternative payment plan that's affordable and won't lead to missing a payment. END