Loans and the credit file

GeorgeUK

I was having a discussion with a friend who used to be in banking years ago and i mentioned that i may try to pay my loan off a few months early and put it on a 0% (for money transfers) card if it works out to saving me some money.

I was under the impression that it didn't really matter when a loan was paid off as long as there were no late payments, but he has said that it at least used to be better to let the loan run it's full duration with regards the scoring on your credit file.

I know all companies have their own method of working out your score and it's not something that i woudl get too hung up about, but has anyone any info or experience with whether there is still someting to this?

crazyguy

It varies from one lender to another these days as some will look at the fact it was paid early as a good thing and others not so good !