Salary sacrifice

rachelle567

Hello, I’m trying to boost my credit score and would like to take a loan out to buy a car but the loans available to me are high APR. My work has offered a salary sacrifice with a good APR % but I’m wondering does this go towards helping my credit score because I’m not physically paying the money, they take it it off me before it reaches me, hope this makes sense.

D3xt3r5L4b

You don’t have a credit score.
And your work shouldn’t report anything to your credit files no.

Although I’ve never heard of an employee offering a loan to its employers either...

Grumpy_chap

Is that employer loan available for anything?  Sometimes, employer loans are restricted, e.g. season ticket.

Malkytheheed

Imagine paying to boost your credit "scores"... 

rachelle567

Malkytheheed said:

Imagine paying to boost your credit "scores"... 

What did you mean? 

D3xt3r5L4b

rachelle567 said:

Malkytheheed said:

Imagine paying to boost your credit "scores"... 

What did you mean? 

Your score isn’t real. No lender sees or cares about it. 

MovingForwards

If your work loan is anything like the loan offered by my company, it's an external lender and the 'low rate' Apr is not guaranteed to be what you get.

Now for my usual comments (which I've typed so many times even predictive text knows what's coming):

Ignore the credit score and rating as it's not seen or used by any UK financial institution, it's the credit history they see and use as part of assessing applications.

super_saver123

I've not heard of a company offering employees loans through salary sacrifice and it seems an unlikely arrangement. Salary sacrifice is generally used for pensions or childcare vouchers. Regardless, I very much doubt any loan agreement between you and your employer would be reported to a CRA and so it would not impact your credit file.

The_Boss

MovingForwards said:

If your work loan is anything like the loan offered by my company, it's an external lender and the 'low rate' Apr is not guaranteed to be what you get.

Now for my usual comments (which I've typed so many times even predictive text knows what's coming):

Ignore the credit score and rating as it's not seen or used by any UK financial institution, it's the credit history they see and use as part of assessing applications.

I used to have wording to that effect in my signature several years ago when I was more of a regular - saved me loads of time.

pjread

If that's genuinely a cash loan (paid tax-free) recovered via salary sacrifice (i.e. from gross salary) then I'm pretty sure that's not allowed, otherwise it's a massive loophole... 

The_Boss

pjread said:

If that's genuinely a cash loan (paid tax-free) recovered via salary sacrifice (i.e. from gross salary) then I'm pretty sure that's not allowed, otherwise it's a massive loophole... 

I'm guessing the OP has incorrectly described it as salary sacrifice when they really mean "deducted from my net  monthly salary".