Is more credit good or bad?

amy1695

I have a pretty bad credit history. Between 2013 and 2014 I managed to gain a couple of defaults on my accounts that I could no longer afford to pay. I am now paying off everything I owe but have obviously been left with defaults on my account. I have made all payments on time in the last two years and have a decent income. I have one catalogue account which always has a 0 balance, and 2 credit cards which I pay off every month in full. Now, I'm planning to get a new car in the next year or so which I can buy in full. However, I'm wondering would it benefit me to get finance and pay it off early (I have spoken to the finance company who would accept me and have no early repayment fees). I'm looking to get a mortgage in three years once all bad information has been removed. Would me having car finance and paying it off look good for that application or not? Thanks

DCFC79

amy1695 wrote: »

I have a pretty bad credit history. Between 2013 and 2014 I managed to gain a couple of defaults on my accounts that I could no longer afford to pay. I am now paying off everything I owe but have obviously been left with defaults on my account. I have made all payments on time in the last two years and have a decent income. I have one catalogue account which always has a 0 balance, and 2 credit cards which I pay off every month in full. Now, I'm planning to get a new car in the next year or so which I can buy in full. However, I'm wondering would it benefit me to get finance and pay it off early (I have spoken to the finance company who would accept me and have no early repayment fees). I'm looking to get a mortgage in three years once all bad information has been removed. Would me having car finance and paying it off look good for that application or not? Thanks

You mention buuying the car in full, I take it you mean use cash ?

Why you talking about finance if your wanting to buy in full ?

Apologies if I have misunderstood.