Loan and credit rating advice.

Janexoxo

Hello everyone

I have been offered a loan of £10,000 at 16% APR by Santander, I could use the money but don't really need it, however I would like to improve my credit rating so my question is:

Does having a loan improve my credit rating?

I have the option of early repayment so I could borrow and pay it off after 6 months to reduce the amount of interest I'll have to pay.

Any advice would be much appreciated.
Thanks

PS, this is repost from credit file and ratings forum as I was not sure which was the most appropriate one.

HappyMJ

I've seen this thread just recently....duplicate?

Janexoxo

HappyMJ wrote: »

I've seen this thread just recently....duplicate?

Yeah, wasn't sure which forum was most appropriate so decided to post twice Although I mentioned that at the end of this thread.

Pixie5740

If you don't need to borrow £10,000, especially at a rate of 16% APR then don't do it. If you borrow the money you'll probably end up frittering away some, if not all, of it on crap you don't need and don't really want.

If you want to improve your credit report then the better and cheaper way of doing it would be to get a credit card and use it every month to pay for what you usually buy, groceries, petrol, and the like. Then repay the balance in full every month.