Impact of paying off loan early on credit raiting, considering applying for mortgage

mattster89

Hi,

Ive had a santander loan which im just a few months away from paying off. Never missed a payment. Theres just a few hundred quid left which i can easily afford to pay off early now. Would doing so impact negatively on my credit score? My girlfriend and I are considering looking at first time house/mortgage soon so just trying to balance would it be better paying it all off now and potentially have a negative impact on my credit raiting? Or in the eyes of a mortgage lender if i pay it all off its just one less monthly expenditure?

Any advice would be greatly welcomed

Thanks

Matt

[Deleted User]

Paying it off early will probably drop your credit score but it improves your credit worthiness, which is the important bit.

Get it paid early and make yourself richer and more credit worthy.

Thrugelmir

If you have the savings clear the debt.  Why pay interest for no reason. Focus on saving yourselves money. Your "credit rating" will look after itself.