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Total amount of debt showing for loan
Danpetty
Posts: 22 Forumite
Hi,
I have recently settled a NatWest loan and paid it off with a M&S loan at a far lower rate. The M&S loan has just appeared on my credit file and is currently alongside the NatWest loan pending NatWest informing the credit agencies of the closure of the older loan.
However, there is a difference between the two in that NatWest only ever reported the total debt as being the amount borrowed with the amount reducing in accordance with the payments (albeit reducing quite slowly given the fairly high interest rate). However, M&S work differently in that they seemingly add interest to the loan sum at the outset and report this is the sum owed.
This had led to me showing about £1,300 more than I actually owe from a strict loan/debt perspective.
My question is whether this is normal or not? I am about to apply for a mortgage so want the minimal amount of debt showing on my credit file.
Look forward to hearing from you.
Dan
I have recently settled a NatWest loan and paid it off with a M&S loan at a far lower rate. The M&S loan has just appeared on my credit file and is currently alongside the NatWest loan pending NatWest informing the credit agencies of the closure of the older loan.
However, there is a difference between the two in that NatWest only ever reported the total debt as being the amount borrowed with the amount reducing in accordance with the payments (albeit reducing quite slowly given the fairly high interest rate). However, M&S work differently in that they seemingly add interest to the loan sum at the outset and report this is the sum owed.
This had led to me showing about £1,300 more than I actually owe from a strict loan/debt perspective.
My question is whether this is normal or not? I am about to apply for a mortgage so want the minimal amount of debt showing on my credit file.
Look forward to hearing from you.
Dan
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