Variety in your credit mix – that is, the diversity of your debt and payment history – can make a positive impact on your credit rating. Remember there are different types of loans. If you have a credit card (revolving loan), a car loan (secured term loan), and an education loan (unsecured term loan), you already have three different kinds of loans in your mix.
Besides adding variety to your credit mix, an unsecured loan can also help you build a positive payment history. As long as you make your monthly payments on time and avoid penalties, you boost your credit score with each timely payment.
