Will taking a loan out help build my credit score?

nicetomeetyou

I'm been pre-approved for Likely Loans. If I take the loan out and mange the account well does it improve your credit score? I don't need a loan but I want to improve my score so I can get a mainstream credit card. I have just got a vanquis credit card and have noticed a positive effect on my ability to get credit... Would it be best to continue to use the credit card and also get a loan or just use the credit card?

Sea_Shell

Why pay interest on a loan you don't need!!! Keep running your credit card properly (pay in full after each statement) and upgrade to a mainstream one in due course. Try again in, say, 6 months.

Socajam

No loan as Sea Shell said above, use the CC and pay on time every month.

Bermonia

Agree with the others... keep using credit card and paying in full every month and your score will improve in no time.

Ben8282

nicetomeetyou wrote: »

If I take the loan out and mange the account well does it improve your credit score? I don't need a loan but I want to improve my score so I can get a mainstream credit card. I

Your credit score is meaningless so there is nothing to improve. If you take out a loan with a representative 59.9% APR to improve a meaningless number then you would be very foolish indeed.

nicetomeetyou wrote: »

I'm been pre-approved for Likely Loans.

Pre-approved by who? Likely loans don't have an eligibility checker.

nicetomeetyou wrote: »

I have just got a vanquis credit card and have noticed a positive effect on my ability to get credit...

How exactly have you noticed a positive effect on your ability to get credit since obtaining your Vanquis credit card? What credit products have you taken out?

nicetomeetyou

I got pre-approved on Clear-score

Since having the credit card I had seen more options open up with potential creditors and my clear-score rating turn to Stable

Ben8282

nicetomeetyou wrote: »

I got pre-approved on Clear-score

Since having the credit card I had seen more options open up with potential creditors and my clear-score rating turn to Stable

Clear score cannot pre-approve anything as they are not a lender. Of course, with that sort of APR, I imagine there would not be too many ineligible individuals.
So what has in fact happened is that Clear score are exposing you to more advertising to encourage you to take out loans at outrageous APR's! Don't fall for it.

DCFC79

Dont focus too much on your score since only you can see it, lenders ee your history.

[Deleted User]

Agreed no one has a credit score its a fictional number made up by people who don't lend money but try and fleece you for a fee.

foxy-stoat

nicetomeetyou wrote: »

I'm been pre-approved for Likely Loans. If I take the loan out and mange the account well does it improve your credit score? I don't need a loan but I want to improve my score so I can get a mainstream credit card. I have just got a vanquis credit card and have noticed a positive effect on my ability to get credit... Would it be best to continue to use the credit card and also get a loan or just use the credit card?

No, taking out a loan with an interest rate of 59.9% won't improve anything....only the profits of the lender.

MEM62

nicetomeetyou wrote: »

I'm been pre-approved for Likely Loans. If I take the loan out and mange the account well does it improve your credit score?

In short - No.

In the wider terms of your credit standing, lenders are not likely to view you more favourably by borrowing from one of the markets bottom feeders. Also, you are needlessly paying high interest - not sensible by any means.

nicetomeetyou wrote: »

Would it be best to continue to use the credit card and also get a loan or just use the credit card?

Just use the credit card, run your finances responsibly and time will take care of the rest.