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kukla379

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New personal loan did not raise my credit score?
credit similator indicated if I took out a personal loan of 2500, it would increase my score. It did not, it reduced my score. Same as it indicated 5 mos ago if I opened a new CC it would increase. It did not. Both times my score was decreased to an amount of 40 points!!

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New Loans drop scores.

Helpful to 1 out of 1 people

It's not unusual for new loans to drop your score!  New credit and the hard inquires used to obtain them will work against you.....from the start!

1.)  On your new credit card, maintain a small balance, and make monthly payments, at least for a while.  This will establish your ability to pay.  Afterwards, pay your balance in full each month to avoid excessive interest.  In other words, use your card, but use it carefully!!

2.)  Avoid trying to open any more new credit for at least 12 months.  Any more new inquires or new credit will only hinder your score.

3.)  Pay your new, $2,500 on time!  As your balance drops, your score will increase.

Oh!  And don't think that by paying your new loan off early will raise your score.  Odds are, it won't.  Once you pay your loan off, you can expect your score to drop a few points.  You don't get credit for closed accounts.

Don't be late on any payments.  Going 30-days late on a single account will set you back several points and can take up to a year of on-time payments to recover from it.

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