paying off a loan better on my credit file?

davejones

I've a zopa loan, and have been offered a santander loan at a better apr rate, am i best closing the zopa loan or leaving it live at a very small amout? I've read a few different threads on how credit files are updated, so would it be best to

a pay off the loan in full
b pay off most of the loan and leave very small payment such as £5 a month?

I'm just trying to work out how to have my credit score the highest for the future.

thanks dj

redux

Ignore the credit score; just work out if you would save money.

Whistler23

I just cleared just under £24k on car finance, loan and credit card. My Experian score went up a massive 170 points and equifax much less. This has left me with one loan of £4k. No late payments, defaults or CCJs ever.

It's all a load of tosh, and if I was rich I would destroy all three of them and offer a product that is actually useful.

27cool

Zopa are quite happy for loans to be paid off early. All it means is that the money can be quickly relent out.

Superscrooge

Paying unnecessary interest on a loan that you can afford to repay is an expensive way to try and improve your credit history.

If you take out a 0% purchases credit card. Rather than you paying interest, you are effectively getting an interest free loan from the credit card company.