Credit score once loans are cleared

edited 30 November -1 at 1:00AM in Credit File & Ratings
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LeonbergerLeonberger Forumite
44 Posts
10 Posts First Anniversary Name Dropper
edited 30 November -1 at 1:00AM in Credit File & Ratings
Hi all.

I’ll try and explain briefly if I can.

I stupidly got myself into a fair amount of debt proportionate to my income.
I have a car PCP for 13k which I can’t get out of.
I currently owe around 6k in loans.
I have an asset worth 6k which i am going to sell to clear the debt and hopefully clear the smaller loan.

I recently was refused a mortgage based on my credit score. The amount we wanted to borrow 200k was refused and we were offered 130k instead. Halifax suggested this was probably due to my loan and my credit score being damaged by this.
My husband is A1 according to Halifax.

Now if I clear the loan this weekend, does anyone know how long it would take to improve my rating?
My clearscore rating is 570 stable however I have 129% of available loan.
Is my credit score damaged now that I previously have been stupid enough to get this loan?

I have always made all payments and actually overpaid.


  • zx81zx81 Forumite
    32.6K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Your score should drop when you clear the loan, as it's a significant change, just as it did when you took out the loan.

    However, lenders will view you more positively as you've reduced your indebtedness.
  • Willing2LearnWilling2Learn Forumite
    6.3K Posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    Hi and welcome to the forum :)

    You have misunderstood what Halifax meant. Halifax do not use a CRA score. They score you independently against their criteria and policies using the data held in your credit files, added to the data you submit in your application, added to the data they already hold on you as an existing or returning customer.

    Your CRA score will drop when you clear your loan. But since Halifax or other lenders neither see nor use your CRA score, it doesn't really matter. :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

  • LeonbergerLeonberger Forumite
    44 Posts
    10 Posts First Anniversary Name Dropper
    Thank you both!

    We have found something we like in a new build estate and must put a deposit down on the build but at the moment I’m not sure if this is feasible.

    Perhaps paying the loan off and seeing a mortgage advisor is the way to go.

    Either way the less debt the better!

    Thanks again ��
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