Will taking a loan out help build my credit score?

gionnetto

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?

Caveat: many in this forum will tell you "credit scores are fictional numbers yadda yadda yadda". Yet, when checking my eligibility for some products I was told "we look at your credit score and some other criteria". When I asked "You mean my credit report?". They pointed out "your credit SCORE and report".

So here's my take on it.

It all depends on how low your credit score is. If it's very low, you might need a "credit building" loan. If it's fair, a sub-prime loan will do. After a while with Vanquis (about 9 months), they'll offer you a small loan. You might want to wait for that, given that you don't need it.
:rotfl:

nick74

gionnetto wrote: »

Yet, when checking my eligibility for some products I was told "we look at your credit score and some other criteria". When I asked "You mean my credit report?". They pointed out "your credit SCORE and report".

Yes, but the lenders mean the 'score' that they have calculated on their own systems, not the score you see when you log into Clearscore, Noddle, MSE etc.

You could apply to ten different lenders and get ten different scores, none of which necessarily have any resemblance to the score you see on Clearscore et al.

foxy-stoat

Credit history is the information that lenders based their internal scores on, alone with other information.

Credit score you get from CRA's is irrelevant to the lenders.