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!
pay off loan or put on credit card to protect credit file?
grandplonker
Posts: 109 Forumite
Hi all,
Should I pay off my £3k loan or put it on credit card? I have the following credit:
0% Tesco credit card: £2,000 credit limit, obtained Apr 2013
0% Virgin credit card: £2,300 credit limit, obtained 2014
8.4% Hitachi Personal Finance loan for three years: £3,000, obtained 2014
I have only ever used half of the credit card limits. Minimum payment direct debits +£1 are set up for both. Obtaining a good loan took about a week - they wanted a bank statement and payslip. Zopa and Ratesetter rejected me on soft credit checks. The next loan would have been 16%. My priority is protect my credit file first, then save money.
Should I pay off the loan as standard, or gradually move it to the credit cards?
That would be done by moving my expenditure from my debit card to the credit cards until they reach just under half their limits; then using the bank balance to pay off the loan. I can pay off the loan early only being charged the interest to date, not the full term of the loan. If I do so, my credit file will show the loan paid off within 6 months.
Should I pay off my £3k loan or put it on credit card? I have the following credit:
0% Tesco credit card: £2,000 credit limit, obtained Apr 2013
0% Virgin credit card: £2,300 credit limit, obtained 2014
8.4% Hitachi Personal Finance loan for three years: £3,000, obtained 2014
I have only ever used half of the credit card limits. Minimum payment direct debits +£1 are set up for both. Obtaining a good loan took about a week - they wanted a bank statement and payslip. Zopa and Ratesetter rejected me on soft credit checks. The next loan would have been 16%. My priority is protect my credit file first, then save money.
Should I pay off the loan as standard, or gradually move it to the credit cards?
That would be done by moving my expenditure from my debit card to the credit cards until they reach just under half their limits; then using the bank balance to pay off the loan. I can pay off the loan early only being charged the interest to date, not the full term of the loan. If I do so, my credit file will show the loan paid off within 6 months.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards