Many people wonder if getting an installment loan will improve their FICO score. The successful repayment of installment loans can boost a person’s credit score. In fact, it is one of the main reasons that many people turn to installment loans. To help you understand how the process works, our team at CreditNowUSA has put together some information for you.
A FICO score which is often referred to as a credit score is a numerical score that is based on the information on your credit bureau reports. There are three different credit bureaus, and they all collect information on the money you borrow and how you pay it back. In some cases, these reports may also have information on bills in your name that are placed in collections as well as a few other details. When FICO creates a credit score for you, they assign numerical values to all of the information on your reports. When there is negative information on your report, FICO will assign you a lower score. At the same time, positive information will help you to get a higher score.
When consumers take out installment loans, the lenders notify the credit bureaus about whether or not the borrower makes his or her payments on time. If the borrower forgets to make a payment, they receive a negative mark on their credit report. However, when they pay their bills on time, they receive a positive mark. Thus, anytime you make timely payments on a loan, your credit score will improve. You don’t need to worry about making a payment late once in a while because in most cases, the lenders will not contact the credit bureaus unless the payment is at least thirty days late.
Repaying any loan can have positive benefits on your FICO score. However, installment loans have a significantly better effect than many other types of loans like credit cards. If you are ready to get some extra money in your pocket and improve your FICO score, we at CreditNowUSA would love to help you find a lender.
For more information, go to Installment Loans at http://www.creditnowusa.com/Installment-Loans