Getting A Loan To Improve Credit Score

ARandomWelshGuy

Hey guys,

I notice in Martin's email today that Sainsbury's are offer a 2.7% interest loan. I'm curious as to whether you'd recommend taking out a 12 month loan and paying it back.

I have been lucky enough to never really need a loan for anything (except student loans) so my credit history is fairly empty except for two credit cards which I've had for just over a year and pay off in full each month. My thinking is that I could dump this £7,500 in high interest current accounts to pay off part/most the interest and build the repayment history on my account. I think I'm going to be applying for a mortgage in 2019/20 or 2020/21 so I'm doing all I can to get myself accepted.

Just checked the credit club and I've only got a 30% chance of being accepted although I have 90% for Nationwide..

Thanks in advance.

[Deleted User]

That's a very bad idea.

Never pay interest to build a credit history and never follow your credit score, which is just a made up number.

Just keep using the cards.

ARandomWelshGuy

Thanks for the response. Will paying such small amounts on credit cards be enough to get a mortgage 4 times (or more) my salary though?

[Deleted User]

The amount you spend is irrelevant. It's about demonstrating responsible credit usage. Just use it for your regular spend and clear in full each month.

The amount you can borrow for a mortgage will be determined by affordability.