Loan for a vehicle.

ritchiej91

Hi everyone,

I'm wanting to get a loan towards a vehicle, approximately 10k. I have a Samsung mobile on their upgrade program... On my experian file it is showing as a loan with £422 remaining for the next ten months. With my intention to get a loan in the future would it be better to 1) keep paying it monthly to show that I'm making regular payments Or 2) clear the whole thing before applying.

Thanks in advance

[Deleted User]

A £400 loan is negligible (although but it does raise the question for lenders of why you need to take such a small sum on credit).

The bigger question is around your credit history and income. Suggest you try an eligiblity checker as a starting point.

ritchiej91

It was just part of the Samsung upgrade program, a benefit of it being I could trade my phone in every year for the latest model providing it is in excellent condition. I understand your point of it being negligible, however if you asked that question they may do so also. I'm inclined to call and clear it after work if it could potentially make a difference.

System

ritchiej91 wrote: »

It was just part of the Samsung upgrade program, a benefit of it being I could trade my phone in every year for the latest model providing it is in excellent condition.

The only person that is a benefit to is Samsung. It isn't a benefit to you at all. Nobody needs to be upgrading to the latest phone every year. There are plenty of Youtube videos showing my 2 and a half year old Galaxy S7 starting up, starting and running apps side by side with the latest Galaxy S9 and in some cases my S7 beats their latest phone but even when it doesn't it is a fraction of a second you wouldn't even notice.

If you're buying flagships you don't need to upgrade every year or even two, more like three or four if you want to notice any real difference.

foxy-stoat

ritchiej91 wrote: »

It was just part of the Samsung upgrade program, a benefit of it being I could trade my phone in every year for the latest model providing it is in excellent condition. I understand your point of it being negligible, however if you asked that question they may do so also. I'm inclined to call and clear it after work if it could potentially make a difference.

A loan of £400 odd wont make any difference to the affordability if your looking at increasing your borrowing by £10,000. If anything its going for you on your credit history by making regular payments.