First glance at the title of this blog article might give you cause to do a double take. However, there is sound logic behind the idea that taking out an installment loan does – and will – help your credit. Let’s look at this a little closer. If you have a credit card with an outstanding debt of $1500.00 with a high interest rate, you can use an installment loan with a lower interest rate to pay off the credit card debt. Now your credit card company makes a report to the three credit bureaus and your credit rating takes a hike upwards.
Now, you might think that you’ve just exchanged one debt for another, and indeed you have. However your timely payments on your installment loan will also be reported to the credit bureaus and the hike increases. You’ve eliminated your credit card debt, and you’ve paid off your installment loan. Your credit score has just increased dramatically. With the increase in credit score, you are going to find better interest rates on loans, and auto financing as well.
Let’s take a look from another angle. Your young, just out of high school and you’ve no debt to your name. That’s good, but you’ve also got no credit history. A lack of credit history is one reason why many traditional installment loans lenders won’t loan you money. They have no way of knowing if you’re a good risk for installment loans or not. In the realm of personal finances, you simply don’t exist to them. This is another instance where installment loans from CreditNowUSA can assist you credit. Our lenders don’t look at your credit history, so a lack of one won’t play into their decision to loan you funds. However, your timely repayment of the installment loan will give you a positive credit history and begin to strengthen your credit score into one that more traditional installment loans lenders will want to work with.
If for any reason, you’re looking to boost your credit rating, or create a positive credit history, unsecured loans from CreditNowUSA is a great way to get your credit report and your personal finances history looking much better. Click here to start your application.
For more information, go to Installment Loans at http://www.creditnowusa.com/Installment-Loans