paid off 2 loans, is there a negative to this?

PJC88

I paid off 2 loans recently which amounted to £9k and payments of almost £700pm. My credit score went up by 18 points and although I'm aware this means nothing in the grand scheme of things, it seems in the eligibility checker for balance transfer cards or further loans that any offers there recently are no more.
Does paying these off automatically close the account, and if so does it then have a knock on effect on my overall offers/options?

diveunderthebonnet

I would have thought this will have a positive effect ,anyone checking your data will see that you owe £9000 less ,you might owe nothing else but you have not stated that .

CliveOfIndia

The only effect it will have is positive - you have less outstanding debt which will always be viewed positively by any lender when applying for any credit product.

Your score, as you rightly point out, means absolutely nothing - it's not even visible to lenders.

Paying off the loans will only increase your chance of being accepted for further credit, all other things being equal.  If you find that you're not being offered anything at the moment, it's simply because you don't match their lending criteria.

Try again in a few months.  But in the meantime, use the £700pm that you've now got spare to pay down your credit card debts.  If you have no outstanding card balances, stick it into a savings account so that you don't need to borrow money (or at least, not as much) in the future.

ManyWays

Paying a loan off will close the account. 
As @CliveOfIndia says, the secret to getting more 0% offers is usually to reduce the credit card balances, and an extra £700 a month should soon make a difference!