Will a £79 credit application effect a loan application

AlpineF30

Hi all,

Just requring some advice.

I currently earn £31000 per annum and currently have zero debt.

I recently purchased a house without a need for a mortgage but the house requires some work to get it up to livable standards.

I require a loan of approx 20k and will be applying probably within the next six weeks.

I am an Amazon Prime member and work have just announced that my health insurance policy will now pay for Amazon Prime as a benefit.

In order to obtain this benefit you are required to take the £79 out on credit and then the insurance company will pay this each month on your behalf providing you meet the monthly criteria.

As I am a prime member and my renewal is next week I thought this is a good way to save myself 79 quid. However if I apply would this be likely to affect my loan application as it is a credit application albeit a small one?

Cheers

BoGoF

How do you propose taking the £79 out on credit? As far as I know the only way to do so is put it on a credit card.

You do have the option of paying £7.99 per month instead of £79 per year to Amazon but this is not credit.

AlpineF30

BoGoF wrote: »

How do you propose taking the £79 out on credit? As far as I know the only way to do so is put it on a credit card.

You do have the option of paying £7.99 per month instead of £79 per year to Amazon but this is not credit.

Essentially what happens is this:

1. My health insurance is provided by Vitality
2. To help people get active they offer benefits for being active - Usually tracked via a fitbit or apple watch which rewards points for you exercising such as walking and tracks your steps
3. These points are then added to your vitality account at the end of the month and if you have enough points saved Vitality will pay for the benefit
4. In terms of Amazon prime Vitality make you take out a 0% £79 finance policy with a company called AffordItNow by PayBreak which pays the £79 directly to Amazon
5. Ten monthly payments are then requried to be made of £7.90
6. However if you have the required number of activity points that month Vitality pay the £7.90
7. However if you are under the required activity points the £7.90 will be removed from your bank account

Shakin_Steve

I'm not sure about the ins and outs of the Amazon offer, and I'm sure it will have no effect on future borrowing. But.......if you are at all concerned, I wouldn't be putting a £20K loan in jeopardy for the sake of £79...or £8 a month.

T-G-C

With no debt at the moment, it will have unnoticeable impact. If it does appear on the credit file with OK's each month, this is having a positive impact rather.

When applying for a credit card in the future, a mainstream lender will be pleased to see that you have used credit responsibly and honored the commitments you have made to other companies.

jonesMUFCforever

I would apply for a minimum mortgage of £25k to get the lowest rates.