@SeattleGuy1968 wrote:
Is a personal loan from a bank or credit union considered a DIFFERENT type of credit than credit card accounts? Usually people say a mortgage or car loan is an example of different type of credit than a credit card account. However if I get a personal loan, in addition to my 5 credit card accounts, will my score go up? (because I would have a second TYPE of credit that I utilize?)
Thanks
Yes it is considered different. A personal loan, like a car loan or mortgage, is an installment loan. It's where you have fixed payments each month for a set period of time. Credit cards are considers revolving credit accounts because the payment varies as does your balance. Sometimes having a mixture of different types of loans will help your credit score but there is no way of telling how much, if any, your score will rise if you take out an installment loan. Please don't take one out just to possibly raise your credit score. It might not and you will still owe that money and potentially put you in a difficult financial position that could lead to much lower credit scores.
hope this helps.
