Bonney
Member
Registered: 14th Nov 04
Location: St Helens
User status: Offline
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Just been going through my outgoings each month and as I had some spare cash I decided to pay most of them off (existing loan, store card and finance agreements) and was wandering if doing this will affect my credit rating or would it improve it? Still pay for a credit card monthly and this will be the next to go, or will it be better to just keep paying this monthly?
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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I don't think it will affect your credit rating. As long as you don't miss repayments, it won't make a difference when you pay it off.
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scoob
Premium Member
Registered: 16th Oct 03
Location: Beverley, E Riding of Yorkshire
User status: Offline
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i paid a loan off i had with hsbc 2 months ago, around a year early and my credit rating didnt change
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Bonney
Member
Registered: 14th Nov 04
Location: St Helens
User status: Offline
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Thats not too bad, I thought it would ave improved as you payed up early. Be 4 different things I have payed up this year, Just 2 more to do!
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drunkenfool
Member
Registered: 7th Feb 03
Location: Hereford Drives: Audi R8 V8
User status: Offline
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It might improve your score as it would reduce the total percentage of available credit being used.
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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Just make sure you keep a bit of manageable credit even.if its a few quid on a credit card each month
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Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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Paying things early is good, but the problem is if you end up in a situation where you have no credit card/loan debt etc. then after a while this works against you because lenders won't be able to gauge how good you are at meeting your repayments on your credit agreements - so it becomes a situation similar to say when you've just turned 18 or whatever and are trying to apply for your first credit card or something.
I'd recommend in the very least buying stuff on your credit card each month (even petrol for example) and paying it off in full when you get paid so that you don't pay interest.
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noshua
Member
Registered: 19th Nov 08
User status: Offline
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As above, pay it all off but keep at least a credit card open, put stuff on it that you know you can afford to pay off in full every month, thus not paying any interest.
Also pay off the one that has the highest amount of interest generated each month.
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ed
Member
Registered: 10th Sep 03
User status: Offline
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Might not help your rating but it will reduce your liabilities which will improve the way your report looks. I don't think companies selling credit look at your Experian rating, I think that's something that's sold to the public to simplify things. Rather they look at the info on the full report which says how much you owe, any late payments, addresses e.t.c.
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Bonney
Member
Registered: 14th Nov 04
Location: St Helens
User status: Offline
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Next month the only thing that is going on my card is my car insurance, then its getting put away until its paid off, also will be keeping my contract phone which goes out every month on a direct debit, so should be ok with that.
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Chris
Premium Member
Registered: 21st Sep 99
User status: Offline
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Just check up on front loaded loans, RULE 78
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Norcy91
Member
Registered: 15th Sep 08
User status: Offline
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I paid my HSBC loan off early, then when i tried to apply for another one they refused because i'd paid my loan off before i'd had it for 12 months. This apparently didn't improve my credit rating enough for another loan from them.
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Bonney
Member
Registered: 14th Nov 04
Location: St Helens
User status: Offline
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I've had the loan for about 4 years now, was in its last 6 months, as for the other bits they where around 18 months old (ish).
Read that with the front loaded loans and I don't think it applies to my circumstances.
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