Part way through loan application - no longer needed

MountainMan101

Hi,

I have excellent credit and want to keep it. My bank offered me £25k, which I arranged prior to buying a car. The dealer finance offer gives me a better total cost, so I don't need the loan but I don't want the cancellation on my part to leave an odd history on my file, an application but noit a completion.

Do I cancel now before I've supplied some contract evidence to obtain the loan, or after supplying that and getting the loan paperwork, or do I complete the loan and cancel in the cooling off period.

I will probably require another loan in 6 months, and this one takes me to the limit they will go (total £45k across two loans), so I don't want cancelling it to adversely affect an application in half a year.

mwarby

I'd cancel now, you'd only have 1 hard search and it doesn't mess with total credit shown. I'd think most of the effects of the hard search would have dropped after 6 months.

Although difficult to tell what will happen in 6 months, if your credit rating and affordability are good then hopefully all will be ok. Worth bearing in mind that once your other loan shows, the affordabilty\ credit score will be different and may effect decision and rate.

MEM62

You are worrying too much over nothing. If you do not want to loan then do not proceed with it. The only trace on your history will be a search and the impact of this will quickly diminish.