Installment loans will stay on your credit report for up to 10 years after the account is closed. If the account is closed due to nonpayment, it will stay on your credit report for up to 7 years from when the lender reported the delinquency, while accounts closed in good standing will stay on your report for up to 10 years.
How Long Installment Loans Will Stay on Your Credit Report
Installment loans can hurt your credit score if you do not pay on time, since the lender will report negative information to the credit bureaus. The hard inquiry into your credit history and the increase to your overall debt load when you first get an installment loan may also hurt your credit score initially.… read full answer
On the other hand, if you make the monthly payments on time and stay current on the loan, the lender will report positive information to the credit bureaus. This will increase your credit score.
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