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Paying a loan off early.
Quick question.
Does paying a loan off early have any effect on credit ratings, positive or negative.
I have a load with Hitachi finance, it has about 6 or 7 months left to run, and i have the money to pay it off now. The reason i ask is that we are about to apply for a mortgage, and paying it back will reduce our monthly outgoings, but i dont want any adverse mark on my credit rating.
Thanks,
steve
Does paying a loan off early have any effect on credit ratings, positive or negative.
I have a load with Hitachi finance, it has about 6 or 7 months left to run, and i have the money to pay it off now. The reason i ask is that we are about to apply for a mortgage, and paying it back will reduce our monthly outgoings, but i dont want any adverse mark on my credit rating.
Thanks,
steve
Mortgage £242500 on completion
FD CC 11/2014 £5900 (£3900 after BT)
FD loan Approx £5700
Deeply depressing total - £254100
FD CC 11/2014 £5900 (£3900 after BT)
FD loan Approx £5700
Deeply depressing total - £254100
0
Comments
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The main thing is probably to pay all payments on time.
Paying the loan off should be moderately beneficial and if nothing else it increases your affordability for the mortgage itself.
It should save you interest so probably worth doing if it doesn't stretch you.0 -
It's not a negative thing to do, you have kept the payments up and settled before due date. You are showing that you can handle money and a mortgage company can trust you.0
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