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Posted in Student Loans
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Bacatiger

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do loans affect credit?

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It depends on the type of loan as to how it affects your credit.  Uncle Bob and that title or payday loan place won't go on your credit.   However, if you default on the title or payday loan, it will definately appear on our credit.   Not all places report to the credit bureau, you should ensure before you secure the loan if they report or do not report.   When you first secure a loan, you score will go down.  This is because you encounted a debt.  As you make timely payments lowering your balance, you will see your score increase to a higher amount then before the loan itself was generated.  Also, when the loan is paid off, you will also see a drop in your score as this account is no longer current with a debt to manage.  While it will stay on your credit report for reference for 7 years, you only get credit while the account is current in good standing with timely payments.

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