If you’re considering taking out a personal loan, you may be wondering how it will affect your credit score. The answer is not straightforward, as it depends on several factors. In general, a personal loan can either positively or negatively affect your credit score, depending on how you manage it.

How Personal Loans Affect Your Credit Score When you apply for a personal loan, the lender will typically check your credit score to determine whether to approve your application. This is known as a hard inquiry, and it can cause a temporary drop in your credit score. However, if you make your loan pa