HSBC Managed Loans....

strawie99

if it did say managed loan what happens then and if it doesnt visa versa?

sparkey1

Well I guess that depends on a number of things. Suppose an application gets refered to a credit analyst. He looks at your report and sees managed loan.

Now he could go, no problem, must has had a few problems and sorted it, or he could go, don't like that, managed loan, I'll refuse this application.

You see it could go either way. So many diffierent variables!

At least you have been paying on time so that is a real positive.

never-in-doubt

strawie99 wrote: »

So just wanted to ask. I have a managed loan will this have affected my credit rating for 6 years? As when i arranged this 5 years ago they never mentioned this. I have nearly cleared it now so this still will be on file for another year!

It will have an impact for as long as it remains. Bottom line is after it has been paid then the account should revert to settled with a £0 balance - the term 'arrangment to pay' or ' managed loan' will be removed and it will revert to a personal loan. If it doesn't, then you write in to HSBC and request it.

The data on the CRA will remain for 6yrs since last activity, i.e. payment or status change. So will be with you for another 6yrs after you clear it (but shouldn't go against you).

leese2504 wrote: »

Someone I know who works for HSBC say it doesnt effect your credit rating and is already classed as a consolidation loan. However I believe it effects your internal rating with HSBC.

Dont hold me to that tho!!

Unfortunately this info isn't quite correct. A consolidation loan would accrue interest, can be increased or paid early with another taken out the same day. A managed loan, is HSBC's version of an arrangement to pay except no interest or charges are applied (if so very little).....

Your mate is half right, it would definitely lower your internal behaviour score to within the 40's max i'd say but if you pay it on time then you could still get a score into the 50's but everything would be manually assessed so the score would mean little as they will not lend when you have an outstanding managed loan.

strawie99 wrote: »

so ur telling me that even though i have paid and never missed a payment and not tken any more credit for the whole term of the loan and not been in any other money trouble this one loan will affect my credit history. I would have thought that as long as the loan is paid that this should improve ur rating as it shows the history of ur payments and ur more credit worthy now than before!

No, see the top of this post. It will not affect you if you write and ask for the data to be corrected at the end of the term.

never-in-doubt

sparkey1 wrote: »

No, what I am saying is that it will remain on your credit file for a lot longer than a year. Six years in fact from closure, with three yrs of history prior to the closure.

However the positive is that you have been paying it off, and it will look good on the report with lots of zeros. Just hope it doesn't say managed loan on the report.

The 3 years history would be absorbed within the 6yrs dormancy time.

i.e. it gets paid off 1st jan 2010. The data will remain for 6yrs = 1st jan 2016. The payment history would have ended 1st jan 2010 so by Feb 2013 it would be gone and all that would show is the settled loan.

Make sense....?

CocoPopsLover

so whilst the loan is outstanding, there will be no point applying for credit products as the arrangement to pay will have a negative effect on your credt file, right?

never-in-doubt

CocoPopsLover wrote: »

so whilst the loan is outstanding, there will be no point applying for credit products as the arrangement to pay will have a negative effect on your credt file, right?

Well no, not necessarily. That's what i'm trying to point out to you. It depends on several things, none-more-so than whether you pay on time and have a string of green [0]'s..... basically, some lenders know what a managed loan is and so decline based on it being exactly that, a loan given to reduce overall debt, with no increases or lending allowed internally whilst it remains outstanding.

In a nutshell, some will ignore it others will use it to decline you. Its totally luck. To be honest, although they can be seen as a bad thing, if paid on time and little other debts then it shouldn't be too much a bad thing.....