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Does overpaying a loan improve your credit score?
RhysHSCC
Posts: 75 Forumite
Hi everyone
My wife has currently got a loan which she consolidated her cc debt about 18 months ago.
We are looking at getting a mortgage, but are concerned that her credit score will prevent us from being to do this.
If she were to overpay her loan and pay that off quicker, will this boost her credit score at all?
Thanks in advance
My wife has currently got a loan which she consolidated her cc debt about 18 months ago.
We are looking at getting a mortgage, but are concerned that her credit score will prevent us from being to do this.
If she were to overpay her loan and pay that off quicker, will this boost her credit score at all?
Thanks in advance
Mortgage co-ordinator for a building society
I carry out affordability assessments for new and existing customers.
I update customers during the application when they call, letting them know where things are at.
I also answer existing mortgage queries.
I carry out affordability assessments for new and existing customers.
I update customers during the application when they call, letting them know where things are at.
I also answer existing mortgage queries.
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Comments
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Your sig, would suggest you would know this already. Having a loan will affect affordability of any application. Getting it paid off would improve this especially if your borderline. You also know it's the info on your file thats important not your score. Good luck.'If you ain't living life on the edge you are taking up too much room'
'Everyone dies but not everyone lives'0 -
Paying off a loan early might adversely affect your credit score if you do not agree a settlement figure with them. I would speak to them first to find out their policy.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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Your sig, would suggest you would know this already. Having a loan will affect affordability of any application. Getting it paid off would improve this especially if your borderline. You also know it's the info on your file thats important not your score. Good luck.
That's what I was thinking too.0 -
I'd love to know which Building Soc you work for lolI am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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