Is Personal loan considered as Revolving or Installment account?

Question

Just trying to rebuild my credit, my student loan is almost paid and i'm getting a small personal loan as a substitute. I have 2 credit cards that i'm paying in full every month.

Martin Jr:

Are you serious? Everybody has different method!? From my understanding, I ought to use my credit card less than 30% of its credit limit and paying it off every month. Charge again 30% and pay again and so forth... I also need an Installment account other than Revolving account.

Answer 1

Personal loans are installment. And pay no attention to the first poster. You should never have your credit card accounts over 30% of your credit limit in any given month.

Paying them off in full is fine because of the gap between the billing date and the due date there will always be a small amount for them to report to the credit bureaus even if it's only a few dollars.

I have done this with two credit cards for the last 2 years and raised my score over 150-points.

Answer 2

The first poster clearly has no clue of what is going on so definitely ignore that atrocious advice. Student Loans are installment loans. Installment loans have a fixed origin a fixed or relitavely fixed payment and a fixed end date. Borrow once and pay back over time with interest. Revolving accounts are lines of credit that can be accessed at different times and have a variable payment and interest is accrued on the current amount of credit extended, not on the entire limit.

Paying in full is the only way to go. Since credit card companies charge merchants 1-3% to allow them to accept the card the more you use it the more profitable you are. Since you'll never default on it the profit never goes away. Carrying a balance is a liability not an asset and the more liabilities you have vs. assets the more of a risk you are. Credit scores are a risk assessment score not a profit assessment score. Sure creditors want to make money but there are other scoring methods for profit models. Paid student loans are a great help for credit. Since student loans can't be charged off in bankruptcy that puts them in front of everyone else in that case so that's a bit of a risk hanging out there.

You are doing the right things, just keep doing it and increase your credit card limits so you are never using more than 30% of it at any given point.

Answer 3

It is considered an installment account. Anything with a set monthly payment is installment.
Revolving accounts are those that vary from month to month depending on how much you pay, how much you charge and additional finance charges from the last billing cycle.

Answer 4

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RE Is Personal loan considered as Revolving or Installment account?

Just trying to rebuild my credit, my student loan is almost paid and i'm getting a small personal loan as a substitute. I have 2 credit cards that i'm paying in full every month.

Answer 5

Installment.
Revolving debt is credit cards.

Answer 6

Hey i'm here for the first time. I came across this question and I find the answers really helpful. I hope to offer something back and help others too.

Answer 7

When you're paying your credit cards full, then this will not help to have "perfect credit"...

I know it might be hard to understand, though the easiest way to have perfect credit score is when these 2 credit cards are always 35%-65% in debt...

You're credit score is basically an signature of how much money bank can make from you... if you are paying credit cards in full... then the score will also show, that it's hard to make money from you...

Answer 8

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