Looking to increase my credit score, will a personal loan help?

[Anonymous]

I am in a situation where my credit score is not as high as I would like it to be. I am also in a situation where my credit card debt is piling up. I have been approved for a fairly decent personal loan in Texas txloan.com with to help me consolidate my credit card debt. The issue now is how do I go about increasing my credit score. Will getting this personal loan and paying it back have a major effect on my credit and if by how much can it increase my score? I currently do not have a mortgage but I make monthly car payments. Right now my only major credit obligations are my car payments and credit cards. 

[Anonymous]

Welcome to the forums, OP! We'll need some more information to try to help you. If you could list the amounts owed relative to your CL (credit limit) and with whom that would be a good start.

From what it sounds like by just reading your post, you'll want to pay down those debts to see an increase in your scores.

Best of luck! 

[donkort]

Yep.  We would need the info on your credit report in order to gauge whether it's wise for you to get the loan.

[Anonymous]

Since OP has a loan currently, he won't gain points from opening a new one - the credit mix points have already been gained. Using that loan to pay off the cards can definitely help, since a number of accounts will drop to zero or near zero. Where caution comes in is in not then running the balances up again, and creating a situation in which CC debt is high AND there is a loan payment to make.

[satio]

As others before me have requested, give us a list for:

1. All active CC account balances, Credit Limits, APR (%)

2. Loan Amount offered from Txloan, APR, and terms (number of payments)

3. Auto Loan Balance, APR, term (number of payments remaining)

Also, is your record clean for any bad debts, collections, or other derogatories? If yes, GREAT! If no, list those too.

That gives the membership here a picture of your current profile and data points necessary to offer suggestions.

First step is the decision to do something to better your situation. You can mark that one off the list.

Onward!

[SouthJamaica]

---

@Anonymous wrote:

I am in a situation where my credit score is not as high as I would like it to be. I am also in a situation where my credit card debt is piling up. I have been approved for a fairly decent personal loan in Texas txloan.com with to help me consolidate my credit card debt. The issue now is how do I go about increasing my credit score. Will getting this personal loan and paying it back have a major effect on my credit and if by how much can it increase my score? I currently do not have a mortgage but I make monthly car payments. Right now my only major credit obligations are my car payments and credit cards. 

---

It's going to knock your FICO 8 scores down, but the improvement in credit card utilization will offset it. As to whether you'll net a gain, or a loss, or whether you'll just break even, is anybody's guess.

[AllZero]

Insufficient data input to provide data output. In other words, as members stated, We need data points.

Yes, it will improve your score if you lower your revolving utilization %.

However, you're just moving the revolving debt to an installment debt.

If installment loan APR is single digit, it may be a wise move. If double digit, maybe not.

[Anonymous]

If it lowered your revolving utilization it would probably result in a gain, but then if you run it back up you’re in trouble again.