To early repayment or not - Sainsburys Loan

Cdunner

Hi,

Looking for advice on whether to clear my Sainsbury's Loan with an early repayment or to hold the funds and repay using standard monthly payments over time..

Early repayment price: £2467.98
Overall remaining payments: £2424.15 with 15 months remaining
Diff : -£43.83

Just wondering which would be better for credit etc. and is there any benefits to either path?

Thanks for the help
Ciaran:beer:

ViolaLass

Do you have the money? What's the interest rate?

Cdunner

I do have the money just recently acquired.

It was a £5000 loan to repay total of £5817 over 48 months.

PeacefulWaters

There's no point paying interest to make your credit file look good.

Nebulous2

I don't think your figures can be right. Did you get a settlement figure from the lender or are you looking at some online figures?

The most they are allowed to charge for early resettlement is two months interest, meaning you'd effectively save 13 months interest on a reducing balance.

If you have other credit reporting accounts, such as a credit card paid in full every month I'd settle to save the interest.

ViolaLass

Nebulous2 wrote: »

If you have other credit reporting accounts, such as a credit card paid in full every month I'd settle to save the interest.

Even if you don't, settle anyway and get a credit card.

Cdunner

Brilliant thanks all