Will doing a voluntary termination on a HP agreement affect my credit rating?

I have been told it won't but want to check before I go ahead.

Will doing a voluntary termination on a HP agreement affect my credit rating?
depends entirely on the terms of the HP. read your contract
Reply:I assume this is for a car.





No it wont.
Reply:It should not adversely affect your credit rating if you liase with the lender to make sure the debt is repaid in full and keep up payments while arranging settlement.





However. it's possible to end up defaulting or in arrears while settling the debt if your settlement crosses a payment date or you don't take into account accrued interest or any penalties built into the arrangement for early termination.





Even if you are settling the debt you can get a credit "strike" if you cancel your repayments still owing money or default on a payment before the lender has processed the full and final payment.





Contant the lender and get a settlement figure in writing. Pay it well before your next payment date and don't cancel any repayment arrangements until the lender acknowledges the debt has been paid off.





It's very common with hire-purhase/lease-purchase type arrangements for people to trade-in or settle before the agreement matures, especially on motor vehicles, and shouldn't cause a problem if done properly.
Reply:Yes it will, done it a few years ago, and I found my rating dropped a fair bit, even though all payments were made on time. I got told that other companies will frown upon this when it comes to taking credit in the future, as they dont get their full fee this way, and not make enough money out of u!!!!