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

grandplonker

The loan is on my credit file, now.

Now that Noddle are emailing me every month for my updated credit file, it's as easy (and cheap) to login and check it there; if I wish to be so obsessed.

In any case, yes the £20 one-off/£8 monthly for Check My File isn't all it's cracked up to be.

2014 has been busy so far for my credit file. I'll stay low a while, let the Hitachi loan and my credit card payments run. After quite a few months if I need another loan, I know where to look (Hitachi), and I can more confidently expect to get it, and at a lower interest rate.

I'm in a decent situation as it is. I was offered 8.4% originally; ahead of the quoted 7.8%. I'm at the magic number where I could (just) borrow to invest; not that that would be the best of advice.

AFK_Matrix

I'd be more concerened why you keep having to take out loans! If you are living within your means then you should be saving up an emergency fund, and then funds for rainy day expenses. Then there is no need for loans and you don't waste money on interest.

redpete

AFK_Matrix wrote: »

Then there is no need for loans and you don't waste money on insterest.

Paying interest is fine because he (and it must be a 'he') doesn't pay early settlement fees :-)

grandplonker

Redpete is correct. I haven't any early settlement fees with Hitachi. I do not pay off my two cards and loan early so that, over the months, they build a stable credit profile which is attractive to future lenders.

Aged in my mid twenties that's important. I live well within my means.

Martin advises that keeping an emergency pot, and paying debts before savings, isn't always wise.

And yes, I have a penis. ;-)

getmore4less

Running expences through a couple of credit cards paid off in full each month will build up a perfecly reasonable credit profile for the lenders that matter.

A zero% purchase for longer term no interest borrowing

paying interest when you don't need to is a mugs game.

AFK_Matrix

I'm sorry but you are paying 8% interest on your loan so you are wasting money. As getmore4less says if your using credit cards (and paying them off in FULL) and 0% credit cards then thats perfectly fine as they are helping out your credit profile. Taking out loans to increase your credit profile is just plain daft as your wasting money on the interest and if you keep doing it it looks like you can't live within your means as you keep having to take loans out.

Pay off the loan and then if you are living well within you means as you say start saving and DON'T get another loan. I have never had a loan in my life apart from my mortgage and have a very good credit profile.

redpete

grandplonker wrote: »

I do not pay off my two cards and loan early so that, over the months, they build a stable credit profile which is attractive to future lenders.

So you have spent on CCs, built up a -ve balance with them and are paying it off gradually over time?

Are you sure that lenders think this is better than using the CCs regularly and paying them off in full each and every month?