Do loans/credit cards help your rating?

Ebe_Scrooge

NotNormal wrote: »

So pretty much don't feel guilty but absolutely only do it if there is no other choice?

A loan of 20 quid for a couple of days is going to look bad to a future lender. Irrespective of what it's called, it'll be seen as a payday loan. Payday loans are only taken out by people who are in dire straits.


Ignore the effect on your credit score ( as has already been pointed out ). The fact that it went up after the loan is nothing more than a random coincidence. The bottom line is that your credit history will have been tarnished - only slightly, possibly, but it's a negative on your file nonetheless.


And if you really have "no other choice" than to borrow £20 or even £50 for a few days, then I think you have more important things to worry about than the effect on your credit history.

glentoran99

NotNormal wrote: »

I'm not using the rating in regards to getting credit, I much prefer to spend the money I actually have. But as a reckless youngster I got into some debt that I'm repaying and so I'm using the rating as a guide that I'm heading back up again.

I was just curious if me taking a small loan was in fact helping myself or making matters worse.

So if your not looking for credit again then It makes it even more pointless

NotNormal

Ebe_Scrooge wrote: »

A loan of 20 quid for a couple of days is going to look bad to a future lender. Irrespective of what it's called, it'll be seen as a payday loan. Payday loans are only taken out by people who are in dire straits.


Ignore the effect on your credit score ( as has already been pointed out ). The fact that it went up after the loan is nothing more than a random coincidence. The bottom line is that your credit history will have been tarnished - only slightly, possibly, but it's a negative on your file nonetheless.


And if you really have "no other choice" than to borrow £20 or even £50 for a few days, then I think you have more important things to worry about than the effect on your credit history.

I posted a credit rating question on the credit rating board. The circumstances around my needs at the time aren't really relevant but thank you for the concern regardless.

glentoran99 wrote: »

So if your not looking for credit again then It makes it even more pointless

I already answered that question, I'm using it as a guide. I heard something, was curious how true it was and so decided to ask on a board dedicated to credit ratings.

glentoran99

NotNormal wrote: »

I posted a credit rating question on the credit rating board. The circumstances around my needs at the time aren't really relevant but thank you for the concern regardless.



I already answered that question, I'm using it as a guide. I heard something, was curious how true it was and so decided to ask on a board dedicated to credit ratings.

a guide for what? if its not for worthiness to get credit?

NotNormal

glentoran99 wrote: »

a guide for what? if its not for worthiness to get credit?

Why does any of that matter? :rotfl:

DCFC79

Maybe loans and credit cards do affect credit ratings but the rating isnt seen by lenders just you. You took out a small loan which lenders might not view it too good.