Settling loan early. Will it affect future applications?

[PumpkinSteve]

I have a Sainsbury's loan with only £1200 remaining to pay, which I'm going to be settling in two weeks. I'm just wondering if it'll affect any future loan applications I make, specifically ones with Sainsbury's? I would prefer to use them again in the future over other lenders as I've found they have a fairly low interest rate and good customer service.

Cheers.

[Hyper10]

just my view but no probably slightly positive as you can settle but I doubt on the other hand it will be remembered much if you re apply as I reckon they take each loan application on its merits at the time of application. I stand to be corrected by a more knowledgeable poster

[P-Jay]

Every potential lender considers different aspects of your history differently (despite what Experian et al tells you, there isn't a universal cross-company credit score for everyone).

I would guess (as a former credit underwriter) that to all good lenders, an early settlement in full would ether make no difference or have a slight positive effect of their opinion.

[CYMR0]

P-Jay said:

Every potential lender considers different aspects of your history differently (despite what Experian et al tells you, there isn't a universal cross-company credit score for everyone).

I would guess (as a former credit underwriter) that to all good lenders, an early settlement in full would ether make no difference or have a slight positive effect of their opinion.

Agreed... as ever YMMV but from the lender's perspective, they've got their money back in full, all the interest for the time they didn't have their money, plus a small early settlement fee and, had you had the money over that period of time only, they'd have had less interest (as you still had an outstanding balance that was earning them interest). What's not to like?

[HBFS]

Get it done, it will have very minimal difference.