Should I change my loan for one that's on my credit file?

grandplonker

In Jan 2014 I borrowed £3,000 from Hitachi Personal Finance at 8.4%. (Yes, the Japanese electronics conglomerate now does personal loans.)

I've read all 3 statutory credit files generated Feb 2014. Hitachi haven't reported my loan to any of them yet, but the credit card I took out Jan 2014 has been reported.

Should I pay it off early and change it for something that does report on my credit file?

8.4% is a good rate for a 24 year old non-home owner, but it was playing hard to get (like women). I was rejected a few times on soft credit checks and the next rate up would have been 17%. Hitachi wanted bank statements and payslips before they accepted me. My 'credit rating' (yes, they don't mean much) is 807.

At this rate a future lender does not see that someone else has previously considered me a responsible lender.

Tixy

If you only took it out in January then I'd think there is still time for it to appear on your credit files yet. From memory the last time I used hitachi finance (not recently) it appeared on experian.

Even if it doesn't, 8.4% isn't a bad rate for you circumstances as you say. I wouldn't bother trying to move it, and even if you did I would wait until you had 6months of credit history from the new credit card.

StuC75

Can sometimes take a couple of months for it to be shown on the credit file - most organisations will have a set date at which they update the credit file.

Ps you are not a responsible lender... That's what they try to be... we are just paying debtors..

grandplonker

Thanks, although I've already applied for another one. In Jan 2014 I had 2 hard searches (Virgin credit card and Hitachi loan), and the new credit card. Those were the only changes to my file they can see. I noticed the rating increased by 15 points (usually a new card increases it by 20), so I applied for another one to try and replicate the results.

A look at my previous posts shows I'm notoriously defensive and proactive about increasing this number.

Tixy

grandplonker wrote: »

Thanks, although I've already applied for another one.

That was quick.

grandplonker wrote: »

A look at my previous posts shows I'm notoriously defensive and proactive about increasing this number.

Well if it gives you something to do, I guess its good to have a hobby!

If you do decide to change then don't forget to factor in the early settlement interest in to the cost/saving of moving the debt to somewhere else.

grandplonker

I runaway from early settlement charges like I would an angry knifewielding black bear. No early settlement fees.

Also people keep saying the credit rating (807 in my case) is useless and irrelevant. Obviously not quite true. Yes, it gives them something to sell people like me, but if credit ratings were irrelevant then it would be just as easy for a 550 (junk) to get a loan as a 940. That's the average on the leafy cul-de-sac where my 87 year old mortgageless grandparents have lived in their own £400,000 bungalow since 1970-something.

So, whilst credit ratings don't guarantee loans and banks don't use them, they do help by giving a guesstimate of how sexy you are to lenders.

bigadaj

You can believe in experians made up number if you want but no one else does.

Yes it means that people have probably paid back some bills recently and on time, but we've had people on here with 999 credit ratings with all sorts of defaults, ccjs and bankruptcies so it is pretty much worthless.

Apples2

grandplonker wrote: »

I noticed the rating increased by 15 points (usually a new card increases it by 20), so I applied for another one to try and replicate the results.

A look at my previous posts shows I'm notoriously defensive and proactive about increasing this number.

The CRA's provide a fantastic service for us to see our own Credit Files but the absolutely worthless scores are almost embarrassing in their uselessness.

I'm surprised they don't sell numbers to you so you can buy a higher "score".

Still, if that's what floats your boat, here, have another 20 points.

bigadaj

Apples2 wrote: »

The CRA's provide a fantastic service for us to see our own Credit Files but the absolutely worthless scores are almost embarrassing in their uselessness.

I'm surprised they don't sell numbers to you so you can buy a higher "score".

Still, if that's what floats your boat, here, have another 20 points.

Are you not charging for those 20 points?

Apples2

bigadaj wrote: »

Are you not charging for those 20 points?

Points are free but you have to pay £69.99 for the membership fee.

grandplonker

Yup, I'm not going to argue about that one because it will take until the Israeli's make peace. I'll read my files in a few months and come back for more advice if it isn't there.