Repaying Loans Early

GWilso7

Hi quick question to anyone who might know?


I'm looking to increase my borrowing power pretty quickly

I'm normally Declined for loans etc etc usually because I move around a lot this has now stopped and my credit rating is slowly improving my current bank however have approved a loan £2500 at quite a high intrest rate Which is the Max they would lend me

My question is if i was to borrow this money without any intention of spending it and repayed the loan in full after 2-3months would this improve my credit rating? I would then repeat the process with a higher amount of loan 6 months down the line?

All in the hope of being able to borrow more money and at a much better rate

Hope that makes sense

Any thoughts or comments welcome

Thanks
GWilso7

jonesMUFCforever

No it would not work.

Just because you move around does not automatically preclude you from obtaining credit. There must be another reason?

If you did get a loan - firstly you would be charged interest for nothing - secondly you would be subject to an early settlement fee when repaying the loan.

Go and have a friendly chat with your bank manager - he/she will put you straight as to what they can offer you - if it is a decline they should be able to give you pointers as to why.