Help with negative on my credit file!

SlovakianGuy

Why not to use Loqbox + credit card? Loqbox appears on your credit file as a different type of credit. The more differentiation, the better. Even credit agencies will tell you that if you have a credit card + car loan + phone contract + utility bills, that's much better than just having 4 credit cards and nothing else. You can use a credit card and Loqbox. In fact, you don't need to do anything with Loqbox, just sign up and they take your payments every month by direct debit (another reason why I signed up was to have an additional direct debit on my Tesco account so I can earn interest). At the end you get 100% of your money back. I still don't understand why some people moan about Loqbox if you don't have to pay for it.
I'm not saying it's super cool thing, probably has very little effect (depends on the sum you "borrowed"?) but it gives you some additional "Payment OK" on your credit file, so why not...

[Deleted User]

Because it's not a good thing to have on your files - it shows as a loan.

The CRA's will tell you it's better to have this and that and the other on there, followed by referral links to said products that generate the CRA's a commission - and they are mainly there as "score improvement" recommendations - which as we all (should) know is complete BS anyway.

SlovakianGuy

OK, but why loan should not be a good thing on your file? Especially once its paid off.


Btw, I know a guy who took out a real loan, just to build his credit history. He said he doesn't mind paying interest on it.

[Deleted User]

Because a loan can make you look desperate for cash and can’t afford day to day spending. Much like and overdraft.

Anyone that takes a loan to build history is crazy