We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Credit Score: Cancel loan or pay off loan after one month
shreddie_2
Posts: 1 Newbie
in Loans
Hi all,
A couple of weeks ago I took a loan out with my bank for £5000 to purchase a second hand car. I then decided to buy a new car and have agreed a finance deal with the manufacturer. Now that I no longer need the bank loan (and I still have all the money), would it be better for my credit rating to pay back the loan with a months interest or should I simply cancel the loan which I can do within the first 30 days? I have only recently applied for credit after my past CCJ listing finally expired from my credit file and I'm now keen to re-establish a good credit rating.
Thanks in advance,
Shreddie.
A couple of weeks ago I took a loan out with my bank for £5000 to purchase a second hand car. I then decided to buy a new car and have agreed a finance deal with the manufacturer. Now that I no longer need the bank loan (and I still have all the money), would it be better for my credit rating to pay back the loan with a months interest or should I simply cancel the loan which I can do within the first 30 days? I have only recently applied for credit after my past CCJ listing finally expired from my credit file and I'm now keen to re-establish a good credit rating.
Thanks in advance,
Shreddie.
0
Comments
-
I think it would be cheaper for you to cancel within the 30 day limit.
If you pay the money back manually you may be charged up to 2 month's interest as an early closure penalty.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards