 TITLE: What Is Installment Credit? CONTENT: Do Installment Loans Build Credit?\n----------------------------------\nMaking installment loan payments on time is one of the primary ways you can build and improve your credit. Payment history is the largest contributor to your credit score; making on-time payments demonstrates to lenders that you're a responsible user of credit.\nWhile paying an installment loan as agreed and in full will have a positive effect on credit scores, paying off the loan early likely won't have a significantly greater impact than simply paying it off on time.\nUnlike a revolving account, such as a credit card, once an installment loan is paid off, it's considered closed. A closed account in good standing will stay on your credit report for 10 years and will continue to benefit your score. END