Want to hand loan back

1stTimer

Hello all

I applied for a loan this weekend and money was received in my account the same day. I’ve since changed my mind and want to send the money back.

My question is does anyone know how this will reflect on my credit record?

I don’t have the greatest credit record and am trying to rebuild it by using and paying a credit card each month with the aim to apply for a mortgage in approx 12-18 months.

I know the hard search will be there and that’s not an issue but what I want to know is what sort of marker the loan company will show on the report, will it show settled or something else?
Is it better to wait for 1st payment to come out and then pay remainder back so it does show settled?

molerat

You need to contact the lender and clearly state you want to withdraw from the loan agreement.  You then have 30 days to pay the money back and there may be an interest charge covering that period.  The lender should not report the loan if withdrawing from the agreement (S66A(7) CCA1974), the searches will remain, but at worst the loan will show as satisfied.  The documentation and lender's website should show what you need to do. https://www.legislation.gov.uk/ukpga/1974/39/section/66A

1stTimer

Great thank you, will call them today

fluffy_kittensloan

I don't think it will affect your credit account at all. Best regards!

MyRealNameToo

1stTimer said:

Hello all

I applied for a loan this weekend and money was received in my account the same day. I’ve since changed my mind and want to send the money back.

My question is does anyone know how this will reflect on my credit record?

I don’t have the greatest credit record and am trying to rebuild it by using and paying a credit card each month with the aim to apply for a mortgage in approx 12-18 months.

I know the hard search will be there and that’s not an issue but what I want to know is what sort of marker the loan company will show on the report, will it show settled or something else?
Is it better to wait for 1st payment to come out and then pay remainder back so it does show settled?

They may not bother reporting it at all or if they do it will just be marked as settled. There is nothing negative in withdrawing from an agreement as long as you pay it back in the time limit inc any interest.