What People Say About Personal Loans and Improving Credit
Summary
Attaining good credit can be a journey. Learn about how our customers are building, or rebuilding, their credit with a personal loan.
In this article:
A personal loan can be a great way to get extra money. But did you know a personal loan can also help you build credit if you manage it properly?
Yes! It’s a double win. Handled responsibly, a personal loan can actually be a tool to boost your credit. And our customers are actually doing it.
Learn about the ways a personal loan can increase your credit score — and see for yourself how OneMain customers are reaping the rewards.
Payment history
Establishing a long-term pattern of timely bill payments is a big part of your credit score. Getting a personal loan, then paying on time for the duration of your loan and ensuring it remains in good standing, provides a great opportunity to build your payment history — and boost your credit! It also provides a chance to establish new financial habits that can help you meet future goals.
Customers come to us to help take control of their finances, but many wind up realizing this additional win soon after. They get the money they need now, while setting themselves up for “a bright financial future.”
Credit utilization ratio
Many of our customers pay off multiple bills with a debt consolidation loan. If you choose to pay off credit card debt with a personal loan, you may wind up lowering something called your credit utilization ratio.
This means how much “revolving” credit you’re using in comparison to how much you have available. (Revolving credit refers to open-ended credit accounts, such as credit cards, that you’re able to continue using as long as they’re in good standing.1)
Lowering your credit utilization ratio doesn’t just free up more credit. It can increase your credit score over time as well.
Getting a OneMain loan was “quick and easy,” explains one of our customers. Another states, “OneMain got me the money I needed and helped me start the process of repairing my credit.”
Credit mix
Did you know that your credit mix makes up 10% of your score?2 That variety, commonly referred to as your “credit mix,” can be made up of things like credit cards, utilities, and installment loans, which includes car loans, mortgages and personal loans.3
Adding a personal loan to your credit mix, then managing it responsibility, is another effective way to give your score a boost – and our customers are doing it every day!
Credit history
Another credit score booster? Your credit history.
The longer you have an account in good standing, the better it is for your credit score. As long as you pay on time for the life of your loan, a personal loan is a great way to build your credit history.
With a “fast and easy” process, our customers are building credit, or rebuilding it, while getting the money they need.
Our customers say it best
If you need extra money, and your credit could use a boost, a personal loan may be a sensible option to explore. As you’ve seen, our customers that keep their loans in good standing are thrilled to see their scores go up. And you could be one of them. Check out more of our reviews and see if your bottom line — and your credit score — can benefit from a OneMain personal loan.
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1. https://www.creditkarma.com/advice/i/what-is-revolving-credit
2. https://www.experian.com/blogs/ask-experian/what-is-credit-mix-and-how-can-it-help-your-credit-score/
3. https://wallethub.com/answers/d/types-of-credit-2140647823/
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
