Whether you are trying to improve your credit score so you can buy a home of your own or you just want to amend some damage that has been done in the past so you can have a healthier financial future, having access to personal loan providers is an incredible convenience. With usually flexible loan terms and willingness to work with borrowers to help them out, personal loan providers can be a valuable service when you are trying to raise your credit score. Take a look at three ways you can use personal loans to give your credit score a nudge in the right direction. 

Consider borrowing a personal loan and eliminating small accounts. 

Too many open accounts on your credit report or accounts that have been not been fully paid off can bring down your credit score. If you have these accounts listed on your report, you should definitely consider taking out a small personal loan to pay off some of those small debts. Even though doing so will mean you have another open account on your report, you are essentially trading a larger loan for a bunch of smaller ones, which can help. 

Ask about borrowing money to establish a payment history. 

When you are trying to get large loans, such as a loan for a home or a vehicle, lenders want to be able to look at your credit and see that you have made reliable payments every month. If your credit report has lack of payment history listed, you can give its appearance a little boost by establishing some payment history. Some personal loan lenders actually offer loans specifically for this purpose and will help you set up an account with the loan funds that will automatically fund your payments every month. 

Find out if you can get a secured personal loan. 

If your credit is poor, you may assume that there is no way a personal loan company can offer you any help. However, even with a poor credit score, most of these loan services will find a way. Most of the time, they will extend a loan if you can place a security deposit with them or offer collateral, such as a piece of real estate or a car that is already paid for. This tangible property stands good for the loan if something happens and you don't repay it, so it is less of a risk for lenders.