Money Talk: How Installment Debt and Revolving Debt Differ
Question: I need to understand how credit reporting agencies treat personal unsecured loan debt versus credit card debt. I am considering getting a personal loan from a reputable lender to pay down my credit card debt. The amount of my overall debt will still be the same, just in a different category. How will my credit score be affected? Answer: What you need to understand is how credit scoring formulas treat installment debt (loans)...
