Paying Off Credit Early

schillers

Hi all,

I have recently been working hard to try and restore some order to my credit rating after I ruined everything at uni! I have been doing well and I had heard that a good way to boost this was to have an asset tied to your name on credit!

So, in my infinite wisdom, I purchased a nice new TV system and got it on a "Buy now, pay later!" deal. Now, I have been working hard at work and have therefore come into the situation whereby days after buying the TV, I am now able to afford to pay it off already.

If I pay this off, does anyone know if this will look better or worse to credit companies on my credit file?

For example, if companies would prefer that I stuck to the original time scale when they look at my credit file, I will leave the money in a bank account until the time when the balance is due. However, if this doesn't matter to a company, then I would rather just clear the debt.

Any answers would be greatly appreciated!

[Deleted User]

Pay if off and ensure you don't get hit with the interest at the end if you mis time it.

A much better way of demonstrating a good credit history is simply to sensibly use a credit card.

Teqpro

It would be better to pay it off as all these events will show on your credit file in green as UC UC UC then final payment ST (settled)

schillers

Teqpro wrote: »

It would be better to pay it off as all these events will show on your credit file in green as UC UC UC then final payment ST (settled)

Deleted_User wrote: »

Pay if off and ensure you don't get hit with the interest at the end if you mis time it.

A much better way of demonstrating a good credit history is simply to sensibly use a credit card.

Thank you both, I hadn't considered that I will pay it off ASAP!