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Personal loans 'can be used to build up credit'
Consumers that want to build up their credit score should consider taking out personal loans, it has been claimed.
According to Johnny Simms of financial advice website LoanSafe, people who are clear of debt could take out a personal loan or even use a credit card to start to improve their credit rating.
However, he added that anyone who considers such a move should ensure they are able to handle such commitments.
The expert outlined: "Before you do this, make sure you are financially fit to pay it off! If you take out a personal loan and cannot repay it, then your credit will suffer, not improve."
He added that people may also be able to build up credit scores quicker through the use of unsecured loans.
Andrew Hagger of Moneynet.co.uk recently claimed that people could use personal loans to purchase engagement rings in the run-up to Valentine's Day.
However, he warned that people should shop around for the best deals.