Credit score update after loan repayment.

ricardoduarte

My brother wants to make a quick loan because of car problems to be repayed until July, and in straight after he finishes repaying it, he wants to make another one...
I have been told that once you make a loan the credit score is lowered to reflect that loan, and potencially increase it after repaying the loan.
How long after repaying a loan is a credit score updated? Is it done straight after, or doesnt it have a cooldown period?

Regards

Mobeer

Experian cover this well:
http://www.experian.co.uk/consumer/questions/askjames246.html

In essence payday loans (or short term loans) may have negative consequences, as they imply a person struggles to manage their finances. But they might also have positive consequences if they show a person is a reliable borrower.

Each potential lender will have their own rules - when a so called "credit score" is updated is irrelevant.

DCFC79

Credit scores/ratings arent seen by lenders, its just a figure used by the reference agencies to reflect how good/bad the credit history is.

Maybe budgeting is more of an answer than a loan.

PeacefulWaters

Credit score paranoia is an illness sweeping the nation.

Paul_01

Only on forums like this.....

The vast majority have little or no interest.

Shakin_Steve

Paul_01 wrote: »

Only on forums like this.....

The vast majority have little or no interest.

Or are blissfully unaware, Paul.

Shakin_Steve

In answer to the OP......I would imagine your brother wouldn't have a problem getting a loan but, based on his credit file, may have trouble getting a decent APR.