How much does a personal loan affect your credit rating?

schuey87

My credit rating is very good. I've previously been a member of experian and its 999 etc. I get offered credit cards with 10k+ limits. Aside from my mortgage and student loan I have no debt though at present and pay my card every month.

How much do personal loans affect your credit rating? For example how much more does a 25k loan affect your rating compared to a 12k loan. How long does it take your credit rating to recover? 1/2 way through the term of the loan, less, more? Is there a big difference in recovery of the loan if term is 3yrs vs 5 yrs for example?

I need a new car and I am certainly going to need a loan. I can afford repayments easily but I don't want to damage my credit rating too much becuause always a chance I could move house and need a new mortgage in the next 2-3 years.

What about hire purchase loans through dealers? These always seem more expensive but do they affect your credit rating less than a personal loan, I can't really see any advantage to HP if you are approved for a loan though?

glentoran99

You don't have a credit rating, If you need a credit get credit and pay it back on time, ignore the fictional number

Pegasus_1981

it wont affect you rating as such but in my mid but it will certainly make others look into your fiances more before lending you more on top as 25k is the national average wage so they look at your conduct and affordability before approving.