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Question By
bofly7

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Would it help to pay -off a credit card balance from installment loan? Will it help my credit score?

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good question

Helpful to 4 out of 5 people

There are several factors that affect your credit score. If you have high credit card balances....paying them down will be the quickest way to raise your credit score. Applying for an installment loan will lower your credit score because you will get hit with a hard inquiry. If you had actual numbers posted I could give you a better suggestion. I hope this helps!

Reply by
loanshark23

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Helpful to 3 out of 3 people

It depends on what your need is at this time. If you can't keep yourself from using the card after you pay it off, a personal loan will put it on a term, so that you know it will be paid. Unfortunately the downside is the hard inquiry, and usually a higher rate. If you pay off the credit card it raises your availability which does increase your score. So if you can stick to your guns pay it down as quick as you can. Good luck.

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It Should

Helpful to 2 out of 2 people

Revolving debt is looked at as more risky than installment debt so I would think in the long run this would help your credit when that revolving debt goes away (as long as you don't run it up again).  I once made the mistake of taking an installment loan and putting it on the credit card to get a lower rate, and my score dropped about 50 points.  If you're looking at installment vs. revolving, installment is better for you FICO score (not taking into account your score might drop due to the inquiry others have mentioned).   

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