Is cahoot flexi loan counted as CC?

dhassen

Flexible loans are like credit cards in that you can pay them off, then spend the available credit again. They are advertised as loans though. On one of my credit files my flexi loan account is marked as 'revolving credit' or somthing like that.

I was wondering if CC companies look at this like they do a CC, and whether I should include this in my available / outsdanting credit. I assume that I do.

Cheers.

CopperPlate_2

I had a cahoot flexible loan a few years ago. They are similar in use to a credit card in the way you describe but really that's where the similarity ends. You could then compare it to an overdraft where you spend the authorised amount, top it back up then spend it again. Yet an OD and loan are different again. The cahoot flexible loan is effectively a line of credit.

When lenders look at your credit file they'll take into account your exposure to debt and your capacity to take on more (i.e. CC's that you haven't cancelled completely and therefore still show as 'live' on your credit file and as a result the credit limit is shown as 'available credit') so yes, they will look at the loan and take it into account. I'd include it in any application for further credit as an 'outgoing' or 'outstanding' debt. If you don't, and it's discovered, it could cause more damage long term to your credit rating.

dhassen

Thanks

I've always included it in any application, and always would. I normally put it in the 'loans' section if there is one, or include any payments as 'outgoings' as you say.

Just applied for an Egg card yesterday, and they didn't ask about loans, only what kind of cards I have. There was nowhere for me to include it, so this isn't dishonest is it? They'd see it on a credit search anyway, which they'd have done.

CopperPlate_2

If there's no space for it i.e. specifically for loans, then there's no space for it. When they do the credit search it will obviously show up the cahoot loan and they can choose to take that into account then I'd assume.

dhassen

that's what I thought. It doesn't really matter, I was just interested whether it would count to the whole available credit - used credit thing.