A personal loan can certainly help you build your credit provided that you make all payments on time and that your lender reports to credit bureaus such as Equifax and TransUnion. Different agencies calculate your credit score in different ways, but the most common factor is your history of successful, timely debt repayment. As such, if you make your payments on time, the credit bureau records that as a positive in your favour and your score subsequently increases over time. Credit bureaus also reward you for using a wide variety of loans responsibly. If you hold an existing credit card, then a personal loan is counted as a different type of loan and thus viewed favourably (as long as payments are all made on time).