Sofa loan appearing on credit record

mwx

Hi all,

I was wondering if anyone has an answer for this.

So I took out a 0% loan on a sofa from Next with a 12 week lead time. The loan was accepted and I have had an alert that the credit search will be put on my record. However, none of the credit reference agencies have alerted me that the new loan will appear on my record in the next months credit report.

Will it appear when I actually start paying off the sofa when I receive it in January? Or will it appear before hand? I am just curious as I am conscious it will impact my credit score.

Thanks!

Willing2Learn

I just briefly checked their FAQs, and I could not see anything to indicate that they report your account conduct to any of the Credit Reference Agencies. You should phone them to ask if they report account conduct to the CRAs.

mwx

Ok great, the finance is actually with Barclays Partner Finance - I don't know if that makes any difference? I also have a loan with Apple on my phone with them and if I recall it appeared quite promptly on my record but then I did take the phone home that day, where as the sofa I won't receive until Jan.

Terry_Towelling

Are you actually concerned about your credit score changing? Why? It doesn't affect your ability to obtain credit. Any lender you attempt to get credit with will look at your credit file and what is on it - not your credit score. So, your score could drop to zero or go up to 10 billion, but it would not make a difference to your ability to get further credit - only the data on your files and the lending policies applied by credit providers will do this.

Some might say the score is intended to give you a rough idea of how your credit file might appear in the eyes of a lender. Others might say it is nothing more than an attempt to manipulate your borrowing behaviour.

mwx

This doesn't answer my question. But thanks for the response, I hadn't realised the scores weren't visible. I am about to exchange contracts for a mortgage so the appearance of my credit record is obviously important right now. The score just gives me an indication of anything adverse that might have happened etc.

Ebe_Scrooge

mwx wrote: »

The score just gives me an indication of anything adverse that might have happened etc.

No - in actual fact the score gives you an indication that "something" has happened. Your score will go down in response to any change in your credit circumstances, good or bad. On that basis, I would expect it to go down if and when then sofa loan is reported to the reference agency.

But the score is neither seen nor used by any prospective lender - all they can see (and are interested in) is the data contained within your files (amount of debt, repayment history, etc. etc.).

Mutton_Geoff

mwx wrote: »

I am about to exchange contracts for a mortgage

You don't exchange contracts for a mortgage, you exchange contracts on a property. The mortgage company provide funds on completion. If you are about to exchange contracts on a property then presumably you already have a mortgage offer?


In your terms it will say you need to notify them of any material change in your circumstances. If your sofa is leather, then you don't need to as it's not a material. OK, just joking the last bit.


I wouldn't say buying furniture for a new place is anything unusual and if you already have a mortgage offer then the lender won't be checking your file anymore.

foxy-stoat

If you have told the lender that you intend on taking on this debt before your offer then you have nothing to worry about, but I suspect you where planning on buying the sofa and not advised the lender.

You just need to hope that your numbers are not that tight that this debt would of affected the lenders decision to lend, or you run the risk of them pulling your mortgage offer a few days before you complete - you will be in a world of pain if they do but heres hoping they dont run another credit check.

Terry_Towelling

Would you say that your sofa repayments are likely to impact your ability to repay the mortgage?

mwx

Terry - No not at all. I actually have around £700 left a month spare with all expenses like bills, food, petrol etc removed. The mortgage is only £402 a month, 5 year fixed. I informed my mortgage advisor and she told me not to worry about it, but here I am.

Mutton Geoff - Yes sorry, my mistake. I already have a mortgage agreed.

Foxy-stoat- Yes that is my biggest fear. My mum has offered to pay off the sofa loan for me if that happened. Just fingers crossed it all goes smoothly.