Effect on credit rating?

Penniesdontmakeyourich

Hi just looking for a bit of advice please. We are saving to move house but probably won't be for a year or maybe 2 yet. I am looking to lengthen the term of a personal loan I have so that we can save to move (house currently in negative equity) so we want to put all money we can into moving, my question is because I have applied for different credit a couple times already this year. I took out a new 0% credit card this time last year, in May I took out a small car finance (which is now paid off) and then in September I took a new phone out on 02 refresh which is basically taking the phone out on credit. So 3 times in the last year, will this all go against me? Should I leave the loan as is just now so as not to affect my credit score? (Which is otherwise good I've never missed a payment on anything)

Thanks very much.

[Deleted User]

Repeated searches can have a negative impact. But three in a year isn't a lot.

Remember to ignore your credit score though. You don't actually have one.

stator

Refinancing your current loan could work out more expensive than you think.

As long as you've made all your payments on time then I don't think your previous credit will have a negative effect, as long as the total credit you have now does not exceed the total amount of credit they think you can afford you should be okay.

As long as the new loan is paid off by the time you apply for the mortgage it should have little effect, but extending the loan will increase the amount of interest you are charged. If the loan is still being paid off when you apply for a mortgage obviously it will reduce the amount of money they think you can afford on the mortgage and you may be more likely to be declined.

Is the loan a higher APR than the mortgage? If so wouldn't it be better to pay off the loan first?