Will taking a loan out help or hinder my credit rating?

BrettMorganxD

If I take a small loan out (£1,000) but meet the repayments, will it help or hinder my credit report.

Does it go against me if i was refused

CLAPTON

it would be a silly idea

just get a credit card, use it regularly and pay in full each month

BrettMorganxD

CLAPTON wrote: »

it would be a silly idea

just get a credit card, use it regularly and pay in full each month

no loan is better in my personal circumstance. Would it hinder it to get a loan because in a few years I will obviously be wanting a mortgage

CLAPTON

BrettMorganxD wrote: »

no loan is better in my personal circumstance. Would it hinder it to get a loan because in a few years I will obviously be wanting a mortgage

get a credit card, use it regularly and pay in full (set up a DD if you are forgetful or disorganised)

that way it will show on your credit reports as some-one using credit responsibly and will aid your mortgage application in the fullness of time


getting a loan a few years before a mortgage would probably make no diffference but is a waste of money paying interest for no purpose.

bengalknights

BrettMorganxD wrote: »

If I take a small loan out (£1,000) but meet the repayments, will it help or hinder my credit report.

Does it go against me if i was refused

Usually hinders till fully paid off then acts favourable

BrettMorganxD

bengalknights wrote: »

Usually hinders till fully paid off then acts favourable

So after it is paid it will of been a good thing

bengalknights

BrettMorganxD wrote: »

So after it is paid it will of been a good thing

Yes as it shows a succesful repayment