How does a Provident loan effect my credit rating

beckytravis

Hi

My credit rating is not that great due to being made redundant a couple of years ago, so I am trying to build it back up now that I am working again.

I have had Provident loans in the past and they are showing on my account as settled. I am considering taking out another one but wondered if paying it off would help my score - or is it seen the same way as payday loans by companies i.e they do more harm to your score than good.

Any advice appreciated. Thank you x

Thanks

HappyMJ

beckytravis wrote: »

Hi

My credit rating is not that great due to being made redundant a couple of years ago, so I am trying to build it back up now that I am working again.

I have had Provident loans in the past and they are showing on my account as settled. I am considering taking out another one but wondered if paying it off would help my score - or is it seen the same way as payday loans by companies i.e they do more harm to your score than good.

Any advice appreciated. Thank you x

Thanks

They charge a very high rate of interest so think and rethink about getting one. It's much cheaper to use your own income and buy whatever it is that you want from savings even though you'll go without for a few months. There is nothing that I can think of that is so important that you need to pay for it right now.

It will reduce your credit "score". If that is of a concern do not take one out.

DCFC79

OP you really should read this thread especially post #3.