Very early Finance repayment - Bad?

Black20VT

Hi all,

I'm looking to get a new motorbike shortly, but I'm after a little advice from the experts here;

I'm impatient to get a bike now the weather is getting better, so was going to buy it on Finance. However, I'm due some money anytime between now and a couple of months. When this comes through, I'll pay off the outstanding Finance with a charge being 1 months interest, which isn't too bad.

But, what do people think? Is this a good move to buy it on Finance and pay it off anytime now? Will this look good or bad on credit history?

I know the sensible thing to do is wait for the money, but I need a new toy :rotfl:

Any advice welcome :T

Thanks.

Robert_Sterling_3

On yer bike mate :rotfl:

~Brock~

I you are definiately going to pay it off so quickly then use a credit card (assuming the retailer will accept payment by this method). You will then only pay interest for the exact amount of time the money is outstanding for.

If you take it on a loan - escpecially if the contractual term is more than a year - the lender is entitled to recover some of their setup costs within the settlement figure. This is more commonly known as a settlement penalty, and can add another couple of months interest to the final bill. Also, any fee that was payable as part of the charges will also be due in full.

There are loans out there that charge interest monthy and do not incur any extra charges in the event of settlement (I think Barclay's do one), but you will have to check each one carefully.

Black20VT

Thanks for the comments ~Brock~

Credit card isn't an option and don't really want to go through the hassle of a loan.

I think I need to check the small print & T&C's of the Finance agreement, or wait to receive the money.

But, if I decide to take the finance route will having a finance agreement for a short period of time be detrimental to my credit report? It'll be paid off/settled, but will that cause more questions than positive?

Thanks again.

Figo

How much do you need?