Sure, let me know what part of this sounds fishy.
The interest rebate is not saving interest tho, the entire loan balance right now is ÂŁ749 something the total figure I was given including the rebate is the same amount?
How is this saving interest?
Just because itâs costing you ÂŁ0 in terms of interest doesnât mean it isnât having a negative impact.
Broadly speaking cash advances look really poor on your credit file and there are much better ways to solve the issue at hand here that wonât have such a destructive impact.
Sometimes asking strangers on the internet really does get you the wildest answers.
You are not paying an extra ÂŁ179.86 in interest.
Previously, I would have gone for option (b). However, these cards are not so easy to get nowadays, for some, and stoozing levels are really poor so hardly worth the effort.
If I had the money, and normally I would if it is for home improvements and not an emergency, I would
Just my pennyâs worth though. Everyone is different.
Indeed. Interest is often charged periodically, often daily, so the earlier the loan is repaid the less interest is incurred.
The payment that is set for the loan includes the capital and the interest that would be charged across the life of the loan. By settling early you save days/weeks/months of accrued interest.
You mentioned an interest rebate, which is a portion of the originally agreed interest to reflect the fact that you arenât borrowing the money for the whole of the agreed term. Arenât they giving you a rebate? Thereâs a standard calculation that all lenders use to work out how much you get back.
Edit: just read the email you posted above. Youâve misread it. ÂŁ566 would be your final payment. When they apply the rebate of ÂŁ179 to your account, that brings the balance to zero and settles it.
If youâre not planning on needing any big spends and needing credit for anything else Iâd personally just get a 0% credit card and bang it all on that then just pay it off over whatever that period is.
Think itâs horses for courses whichever way you do it though. Iâd probably not do option C sounds like the builder is on commission 
Some lenders apply the full term of the loanâs interest at beginning of the loan, then when you pay it back early you get an âinterest rebateâ, sounds like they are doing you a favour, but they arenât.
Any application for credit whether a card, mobile contract etc. has an effect on your credit score but only for a short while. The again all the scores you see from credit agencies are not used by lenders who calculate their own scores, but can be helpful.
You sure they contacted them to ask that?
If theyâre a financial provider itâs up to them wether they mark it as closed or not - nothing to do with a credit checker.
Are you planning to get a mortgage
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I ainât planning on getting a mortgage anytime.
I paid it off and it shows as closed, my credit score then dropped by -13 points.
Scores mean nothing at the end of the day, itâs a made up figure by the agency.
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Your score will always go up and down. Itâs designed to do that so you keep checking in and the Credit Reference Agency gets to keep showing you adverts for credit cards and loans.
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It also depends on what else you have on your credit file. The CRAâs like regular payments and long credit histories. If youâve closed your oldest line of credit it will drop your score a little.
13 points is a fairly negligible drop and it wouldnât have updated by now anyway --this conversation only started a few days ago and the account was still open then. It is probably reflecting changes made to your credit file 1-2 months ago.
I am unsure why but the credit file updated next day.
Hi David,
There have been some recent changes to your credit report.
Login for details about your current credit report.
Weâll continue to make sure you always know when thereâs something new on your report.
Hereâs to progress,
The Credit Karma Team
The drop is -13 right now
