Does applying for a personal loan hurt your credit score?

Contrary to popular belief, getting a personal loan can actually boost your credit score. Credit bureaus calculate your score based on factors like credit history and utilization, and paying back a personal loan on time can improve both. While applying for a loan may cause a temporary dip in your score due to a hard inquiry, this is quickly forgotten as you make timely payments. So, if you're in need of financial assistance, don't hesitate to consider a personal loan. Just make sure to be responsible and meet your repayment obligations.

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