Does paid off in full loans affect your credit rating?

stephi103

We have a sofa and a laptop loan to pay off(pay nothing for x amounts of months)....one by Jan and one by April but we will be able pay these off in full in the next few months.

We need to apply for another credit card at some point as our egg card 0% has run out and our bank of scotland is running out in Jan......Is it best to wait till we have paid these loan off before applying for a new credit card? We have been turned down for one before, I think it is because of these loans. If it is best to wait then how long after the loans have been paid off? Or will it not make a blind bit of difference?!

Astaroth

Every lender writes it own credit scoring system and so there is no way of saying for certain if it will have a positive or negative effect - in reality some may see it positive some negative.

Generally however the more debt you have the greater the negative impact it has to a point - having no available credit does give warning bells though.