is it bad to pay off a loan early?

dreambirdie

i took a £1000 loan with my bank in nov 09 i thought i took it out for 1 yr, but turns out the repayment term is 18 months (i have NO idea why i done this and was convinced it was only supposed to be for 1 yr)

anyhow, i will only get SMP from next feb onwards and dont really want to be paying a loan back while i dont have my full time wage, so i was gonna use some of my savings to pay it off early, does this have a adverse affect on my credit report?

[Deleted User]

why would it unless you have missed any payments,it will show the loan as settled,but keep in mind always that your "credit reports"are hardly worth the paper they are written on.

dreambirdie

i thought that if you paid it off early it looked bad, i really dont know why i thought that!! must of been making it up in my head lol!! ive never missed a payment on it, i just want rid of it before my income drops, i have some savings set aside for when baby arrives but am just going to get rid of the loan first whilst i can

Jellywobble123

check your paperwork to make sure that if you repay the loan early they are not going to sting you for any charges...if paying it off early isnt going to cost you with the Bank if i was you i would pay off the remaining balance with a 0% credit card so you wont need to pay any interest,Bank interest charges are normally quite high.