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How personal loans can hurt your credit ready to fill out that personal loan application.

Does paying off a personal loan help your credit score. A personal loan will cause a slight hit to your credit score in the short term but making payments on time will boost it back up and and can help build your credit. The key is repaying the loan on. It can help improve your credit score especially if you re carrying a large balance on your credit cards.

Paying off debt to build credit is a pretty well known strategy. So if you have other types of debt like car or home loans paying off those accounts might seem like a step in the right direction.

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