Should everyone have some sort of loan or bill???

Hey Everyone,

As previously posted, I came in to inheritance money and cleared all my debts. Car Finance, Personal Loan, Credit Cards etc.

But someone said something that shocked me the other day - that it is always good to have some sort of loan for your credit history, that whenever the time comes for me to get a mortgage etc they will look for something like this??

Can anyone shed light on this, is it true??


D4B

I would have thought if you lodged your salary/income into a bank account that this would be a clear indicator that you can live on your income and if you are building up surplus credit or transferring to a savings account this would further indicate your ability to service a loan. Getting loans could indicate you cannot save

I'd imagine if you 'just cleared your debts' you already have a credit history - and if you've cleared them, then probably a good one.
Spent some time arranging auto finance for people some years back and 'credit history' was a factor for those with absolutely no history whatsoever. If you've already established some, then I'd imagine theres very little benefit in going out of your way to access credit?

Most lenders look for information about your income, employment, living costs and existing loan repayments to help them decide whether you can afford to repay a loan. Most lenders also want to look at your credit rating. It can be a good indication of how likely you are to pay back the money. You are likely to have a positive credit rating if you have a good history of repayment on previous loans.
Under Data Protection Acts 1988 and 2003, you are entitled to receive a full copy of any data, which is held in your respect on the Irish Credit Bureau Database.

You say you have fully paid your Car Finance, Personal Loan, Credit Cards etc.
Therefor you already have a good credit rating.

Okeydoke, thanks guys

D4B