Likely Loans

Gibbbaaa

First time poster looking for some guidance. 

Would using a loan company, such as likely loans, be considered ‘bad’ for your credit file? I know that payday loans should be avoided but do these high APR loans carry the same bad news?
 
My partner and I are looking to buy a house soon and the loan was taken a while ago before I had repaired my credit score and I wondered if it would become a hinderance?

Thanks! 

brettcta

It really depends on a number of factors, they’re not great to see but it depends when it was and what your lending history has been like since. Each lender is different too, some may not mind as much as others.

a mortgage broker will be able to answer this a lot better in the mortgage sub forum.

richardadc

It'll just be recorded as a loan on your credit file so no different from any other loan.  Payday loans are recorded as a short term loan on your credit file but even then most of them are actually recorded as a normal loan  Anyone searching your credit file will not see who the lender is.

MaryLongstaff

Taking out a loan in itself shouldn't affect your credit score. If you make consistent payments and never miss one your credit score wont be harmed. If anything, taking a loan and making regular payments is good for your credit score especially if you overpay your required amount. 

Of course, high APR loans like the company you mentioned makes paying it back harder due to increased interest payments and should therefore be avoided if possible but it shouldn't affect you in the future if you never missed a payment. 

There are always ways you can improve your credit score, both quick and easy ones like registering to vote vs longer term ones like regular payments and opening new 'perfect record' accounts with banks. 

I hope I have helped in some way, good luck with the house!!

[Deleted User]

MaryLongstaff said:

Taking out a loan in itself shouldn't affect your credit score. If you make consistent payments and never miss one your credit score wont be harmed. If anything, taking a loan and making regular payments is good for your credit score especially if you overpay your required amount. 

Of course, high APR loans like the company you mentioned makes paying it back harder due to increased interest payments and should therefore be avoided if possible but it shouldn't affect you in the future if you never missed a payment. 

There are always ways you can improve your credit score, both quick and easy ones like registering to vote vs longer term ones like regular payments and opening new 'perfect record' accounts with banks. 

I hope I have helped in some way, good luck with the house!!

In the UK a credit score is completely meaningless, no lender ever sees it

NewLeaf1986

The lenders view of your credit file doesn't include the name of the lender or the interest rate you're borrowing at, just a generic heading for the type of account.

So where you would see "Likely Loans - Personal Loan", any lender who performs a credit check on you would only see "Personal Loan".