How to Improve Your Credit with a Personal Loan? Join Kevin Hunter, John Mackey from Master Credit Solutions, Dave Ivey, Jr. Lopez, and Martin Wegdahl as they discuss the strategies for using personal loans to build credit. A special thanks to the staff at Mint Valley Federal Credit Union for making this possible for Longview area residents, and members of Cowlitz County in Washington. They are truly an example of what banking should be like for citizens everywhere.
You may already know how to improve your credit with a credit card. You might even know how to improve your credit several ways other than using a credit card. But do you know how to boost your credit with a personal loan? As John Mackey from Master Credit Solutions lays out in this video, small personal loans can have the greatest effect on building and restoring credit.
If you’re planning to try using a personal loan to improve your credit score, there are benefits in doing so. However, you must go about it the right way.
How Does a Personal Loan Affect My Credit Score?
“When it comes to improving credit scores, a personal loan may be a viable option for reestablishing creditworthiness when the proper steps are taken,” Marco Carbajo, Founder of BusinessCreditBlogger.com, said. “For a personal loan to have maximum impact to an individual’s credit scores, you should focus on three key things: maintaining a positive payment history, paying more than the minimum amount due each month and reaching a low balance owing (below 30%) as soon as possible.”
If you adhere to these three conditions, a personal loan can be well worth your time. As Gerri Detweiler, Director of Consumer Education at Credit.com said in an article, a personal loan can consolidate credit card debt and improve your credit score for several reasons. Because a personal loan is an installment loan, debt on that loan won’t hurt your credit score as much as debt on a credit card that’s almost to its limit, thereby making available credit more accessible. A personal loan can also help by creating a more varied mix of credit types. Finally, a personal loan can decrease debt more quickly.
Mint Valley Federal Credit Union is located in Longview Washington at 325 Washington Way. If you live in Cowlitz County, you can stop by and see them anytime or call them at (360) 425-5444