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Pay off car loan before taking another better for credit score?
JulieRoberts
Posts: 5 Forumite
My credit score is excellent I have an outstanding balance on a carloan and we are looking to trade this car in to get a new one. Would I be better paying this off before applying for a new loan or would it not make a difference to the new lender? I have just got my credit rating back up after a drop 10 years ago and trying to figure out what is more likely to ensure my credit rating isn't impacted by a loan refusal. All the ones I am looking at are 95% eligibility.
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Comments
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Your credit score isn't a factor in lending, so that doesn't matter. But you will be assessed on having both loans, so may struggle with affordability.
Loan refusals are not shown on your files. Just searches and agreements.0 -
Great thank you0
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