According to NerdWallet a traditional installment loan can help your credit score:
- The biggest influence on credit scores is payment history, and a record of on time payments will bolster that history.
- Make sure your lender reports your account activity to the major credit reporting agencies, Equifax, Experian and TransUnion.
- If you only have credit cards, adding installment debt helps diversify your types of credit and might give you a modest bump.
Installment Loans Work (06/28/2018)