How much does an installment loan help yor credit score?

Question by The Duke: How much does an installment loan help yor credit score?
If a credit score is between 600-650, how much would an installment loan of $ 2,000 paid back in 12 months help that credit score?

Best answer:

Answer by tudorjason
It’s difficult to say. Regular people don’t perfectly know how credit scoring models work. However, if this is your first installment loan, it will have a more significant impact than if it’s, perhaps, your 15 installment loan.

If your credit history is fairly short and young, your score will probably raise about 50 points. If you have several installments, then maybe only 15 points.

A credit history takes several years to build. The longer an account stays active and in good standing, the better.

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