PCP Settlement - What affect on credit rating?

hufc2002

Hi all

I have recently changed my car (mid June). Original car was on a 48mth PCP and I changed car at approx 36 months. Origianal PCP was settled and I commenced a new 48 month PCP for my new car.

Long story short there is an onging issue with the new car therefore the dealer has offered me a 'New car' as a goodwill gesture however this will mean signing up to a new PCP agreeement and current PCP will be settled.

Should I be concerned about anything.

What will this look like on my credit file given I have literally just settled on agreement and taken out a new one for that one to then be settled a new one taken out?

Cheers

InsideInsurance

It will just look like you paid off a £20,000 loan within 2 months of taking it out and then took out a new £20,000 loan (or whatever the PCP value is). They may do another credit search.

In principle in the long term it wont look bad at all as it shows you are trusted with fairly big loans and are able to see them through to a satisfactory completion. Only in the very short term will the volatility potentially give a new lender a bit of nerves but are you actually planning on apply for a new mortgage or a new credit card in the next few months?

hufc2002

No im not planning on applying for any further credit in the short term.

I do plan to move but not for a good 3 years or so.

Double_V

Don't worry.
I did this exactly same thing. And my new PCP is 41k over 48 months.