Credit raiting with car finance

Terry47

Hello world,


So recently bought a house far enough out of the city centre that my wife needs a car to commute to work. My wife purchased a car on finance last week at a rate of 10.8% (rate decided before she even had her name on the finance papers...) and we collected it Thursday. Absolutely brilliant having one, makes getting the painting and decorating gear a lot easier! Anyway, I have managed to secure a loan with Tesco bank at a rate of 2.9%, money arrived in the bank today so very happy with that given how much money we will be saving in interest alone!


My question is, should my wife pay the car finance for a couple of months and then pay it all off with my loan to improve her credit rating or can we go ahead and pay off the car finance straight away and obtain the same "credit rating benefit"? There are no early repayment fees to consider here.


Thanks for your insight in advance!


Best regards,
Terry

[Deleted User]

If you can clear it with cheaper finance, do that.

Your wife can build her credit history through sensible use of a credit card.

Disregard any 'credit rating benefit'. It's all about the data and her credit history.

System

Do not spend money you don't have to to improve a credit score. Clear it ASAP with the cheaper finance.

Terry47

Thank you both for the input, I have gone ahead and settled the car finance.

[Deleted User]

Tarambor wrote: »

Do not spend money you don't have to to improve a credit score. Clear it ASAP with the cheaper finance.

Likewise don’t spend money you DO have to improve a credit score