Although I didn’t require the funds, I decided $2,000 personal loan, which raised my credit score from “better” to “excellent”

My purpose in college was to avoid taking on debt. I didn’t take out student loans because I went to the university with the finest scholarship. My perception of finances was simple. Debt and loans were simply awful.

I had decided it was important to begin earning credit once I graduated. I required excellent credit if I ever planned to leave my parents’ home, earn a good credit card, and purchase a home.

So, I broke my promise to myself by taking a personal loan.

Using my loan to my advantage

I had been putting off taking out loans since I didn’t wish to accumulate debt. But I discovered that if I planned, a personal loan might probably benefit me.

My bank granted my request for a personal loan. I thought about getting a loan with a 1-year term since I didn’t need debt to slow me down. But after speaking to a lender and my dad, I decided on a $2,000 loan with a 2-year term. For a longer-term loan, regularly paying on time might show greater dependability and raise my credit score.

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