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Eepa

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Should I take out ANOTHER personal loan even though I've paid one off?
I had a Discover Personal Loan for a couple of years that I paid off with monthly installments. There was only a little balance left for the loan, so I paid it off in full. However, I think this has dropped my score down a handful of points since I'm not IN debt anywhere. Should I take out ANOTHER personal loan and pay it off gradually with monthly installments to boost my score?

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"not in debt anymore" is not the reason that your scores fell. Your scores fell because you closed an open account. Open accounts build and maintain credit profiles. You can build credit with a credit card and not carry debt and not have to pay any interest. But, yes, an installment loan that is reported to all three credit bureaus is important to build and maintain credit. Should you just get another one for this purpose? It depends on your situation, if you really need to build credit then yes it may be an idea. But only a small loan that you could easily pay off in full if needed. The danger of taking loans out just for the heck of it or to maintain scores is that something important may come up in the short term future where you actually do need a loan for something and you may not be able to get it since you just took one out. Think all of this over carefully and go from there.

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