Outstanding Loan

SLinc

Hi all,

A few years ago I was in some money trouble (thanks to some nice bank charges) & had to go to the CAB who contacted my debtors & arranged for the interest to be frozen on a loan I have.

I am more financially stable now & have recently applied for a mortgage but was rejected (I know the credit scores etc. are alot tighter at the moment) so I decided to get a high interest credit card to build up my credit rating.

I still have some money outstanding on my loan but the interest is still frozen, will this effect my credit scoring? I have enough money saved to pay this off but don't know whether to hang on to my savings & benefit from the interest or if the loan is having a detrimental effect on my credit score should I pay it off?

CLAPTON

what do your credit records show?

Rafter

SLinc,

I don't think a mortgage company will touch you which you aren't paying interest on your existing borrowings.

You need to get that cleared and even then it might take a few years before you can get a best buy mortgage.

R.

HeadInSand_2

Frozen loan will stand out like a bright red 'bad debt' neon sign!
'Arrangement' will also flag badly even if you are sticking the schedule - it all shows you didn't manage the debt correctly. You *must* satisfy those before trying again.