Credit Rating Loan

meesonia

Hello, my son has taken out a small loan £1800 over 2 years in order to improve his credit rating, but plans to pay it off early before the 2 years are up. My question on his behalf is - how long should he keep the monthly repayments going before he pays it off in order to boost his rating? Will paying it off early affect the rating at all?

Thanks

ian

[Deleted User]

He doesn’t have a credit score or rating.
No one does.

Taking a loan is not the best way to improve ones credit HISTORY.

If he can clear the loan now then do it.

DCFC79

meesonia wrote: »

Hello, my son has taken out a small loan £1800 over 2 years in order to improve his credit rating, but plans to pay it off early before the 2 years are up. My question on his behalf is - how long should he keep the monthly repayments going before he pays it off in order to boost his rating? Will paying it off early affect the rating at all?

Thanks

ian

Well that's a silly thing to do, whats the interest rate like ?


Is he on the ER/voters roll ?

Does he have a bank account ?


Does he have a phone contract

fatbelly

I agree - that is a really silly thing to do. All he is doing is giving a donation to the lender. Hopefully it was not a sub-prime lender at high interest. If he still has the £1800 that he borrowed (as your post implies) then he will need that sum to settle his account, which he should do as soon as possible.

In addition to the suggestions above, he should get a credit card (or two) and clear the balance each month