Loans have as much of an impact on your credit rating as credit cards do. Having a loan is making a commitment to a long term payment plan in return for receiving a lump sum of funds now. These funds could be used for anything, from school tuition to purchasing a car. Some people take out loans due to necessity, while others have loans for vacations or large purchases they don’t have the money for at that point in time. Loans sound like the perfect way to get the money you need now while not having to worry about paying it back later. But how do loans impact your credit and your finances?
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