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  4. Can having a loan affect (even improve) my credit score?
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  4. Can having a loan affect (even improve) my credit score?

Can having a loan affect (even improve) my credit score?

Yes, in potentially good and bad ways


  • Bad – your credit score could be reduced if 👎
    • You do not make your repayments
    • If payments are made late without prior arrangement

  • Good – your credit score could be improved if 👍
    • You make all your payments in full and on time

A positive marker goes to the credit reference agencies (Equifax, TransUnion and Experian). The more payments you make on time and in full, the better your credit history could become.

If you have a bad credit rating or no credit history; making payments as agreed on time is a good way to repair or build your credit rating and your score could begin to rise.

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