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  1. #1

    Should we pay earley settlemt - or pay in full?

    Quick question on behalf of my fianc!.


    She has an old loan with Welcome Finance ( over 6 years ago ) which stands at about 900-950. It is currently getting paid of at 10 per month due to being on maternity leave.


    They asked us to get in touch regarding an early settlement figure, they quoted 700.


    We planned on remortgaging and then clearing this (whole amount) and another loan to family but Welcome obviously don't know that.


    Is there any advantage to paying the whole amount as the debt is over 6 years old? The saving is about 200-250 in total.

  2. #2
    You have answered your own question.

    You will save 200-250, the age of the debt is irrelevant as you have been paying the account regularly.

  3. #3
    Does it make a difference to you credit history - weather its shown paid in full or part settlement?


    Or is an early settlement offer classed as paid in full?

  4. #4
    If its over 6 years old it wont show on credit files any longer.

  5. #5
    So no point in paying the extra then - I assume it would effect your rating though if you were to ever apply for other loans / mortgages?


 

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