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Settled WONGA loan on credit report
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# 1
oceanscape
Old 02-05-2011, 11:27 AM
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Default Settled WONGA loan on credit report

I'm so upset right now.

I took out a Wonga loan a couple of months ago to cover a short-term cash flow problem. I paid it back on time and thought that was the end of it.

Later, I applied for a loan from my bank. They rejected me. When I asked why I was told that the WONGA loan on my credit reference signified that I was experiencing "financial stress" and therefore they would not be willing to lend money to me, even though the pay-day loan was paid off in full and on time.

I had NO IDEA that a SETTLED wonga loan would trash my immaculate credit rating (I have NEVER missed a payment or anything).

Will I ever get a new loan or credit card again?
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# 2
jonesMUFCforever
Old 02-05-2011, 11:46 AM
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Yes probably but next time consider asking your bank for an overdraft not a Wonga loan.
People who use this service do tend to be the ones that normal credit is unavailable so beware.
Try one more loan application but if you are declined stop and don't apply for at least 6 months.

Check for yourself what your credit report says about you.
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# 3
fozmcfc
Old 02-05-2011, 11:46 AM
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Well I would say it is fair to say Wonga are largely only used by those people who have bad credit or no credit history.

In general, anyone who is on top of their financies, should never need to use a payday loan company.

The Wonga reason could be one of a number of reasons why you didn't get the loan, but it's the easiest one for them to use.

Your post gives no real details of anything else that may be another reason you are being refused.

Are you on the electoral role, steady long term emloyment, long time at the same address. Are you paying minimums on credit cards, are you always in an overdraft. Do you already have a lot of credit available even if not used, compared to annual income, any of these things and more could combine with Wonga and lead to a refusal

People might say like yourself I always pay on time etc...but the fact you have no rainy day money and need to turn to Wonga, means you are not maybe as financially savvy as you think.

As I say it could be a number of reasons, but Wonga is the easiest reason to use.
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# 4
oceanscape
Old 02-05-2011, 11:57 AM
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Thanks for your reply. I do have debt and I never said I consider myself to be "financially savvy". If I knew the affect this Wonga loan would have I would have borrowed the money from a relative - I had no idea it would trash my rating.

The thing that annoys me is that Wonga say that if you take out one of their loans and re-pay it on time, it will IMPROVE your credit rating. However, my bank told me the opposite - it has significantly affected my credit rating negatively and they said (I quote) "unfortunately we are not willing to lend to you on the basis of your settled pay-day loan, as this signals you are experiencing financial stress".

My credit file is fine - never missed a payment or anything like that. I am at about 60% of my available credit, but the bank adviser told me this wasn't the issue (I asked) - she said it was solely because of the Wonga loan.
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# 5
CLAPTON
Old 02-05-2011, 12:00 PM
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how much debt do you have?
what is your income?
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# 6
The Matelot
Old 02-05-2011, 12:19 PM
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I have a setteled wonga loan on my CR aswell but that wasnt an issue for tesco as i was approved for 4k in january. (wonga show settled 08/2010) every lender is different so you could try somewhere else??
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# 7
Apples2
Old 02-05-2011, 12:56 PM
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Quote:
Originally Posted by oceanscape View Post
I had NO IDEA that a SETTLED wonga loan would trash my immaculate credit rating (I have NEVER missed a payment or anything).
There were long running posts on here about the effect these loans would have.

Cashback places like Quidco were offering cashboack on these loans. Can't recall the figures but it was something like "take a loan of 100 from Wonga, repay 120 and Quidco would give 40 cashback"

End result was that you would be 20 up on the deal if paid on time (some were repaying the same day as taking it out).

There were two schools of thought, one was that it would have no effect so a great deal, the other school (which I was in) was not to have any mention of this type of lender in your credit file.

We already have two contradictory replies, yours being negative and the Matelot's being positive.

That said, what is to say The Matelot would have obtained a better APR if the Wonga loan wasn't there?


The normal customer base of Wonga are people already in default and are unable to obtain "normal" finance. For them, a satisfied agreement will indeed improve their credit rating as there is already so much damage to their files in the first place.
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# 8
The Matelot
Old 02-05-2011, 1:41 PM
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Mine wasnt so much a bad report more a lack of due to my age. So i was suckered in by the we can help improve your file. I should have just stuck with my credit card and mobile contract. And i got 2% of tesco best apr so im sure i could have gotten better like apples2 has mentioned
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# 9
Nelson01
Old 02-05-2011, 2:21 PM
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Wonga can be the reason you have been denied for loans. Do not forget to ask your bank for an overdraft not a Wonga loan.
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# 10
JamesJupiter
Old 02-05-2011, 3:35 PM
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I have to agree with the majority of contributions on this thread.

Wonga aren't so much the reason that you were declined for finance but the fact that you have Pay Day Loan information of any kind, settled or unsettled on your credit file will signify that you may have trouble controling your finances from time to time.

I know a number of lenders that decline loan applications if Pay Day Loan information is showing, also in the same way that some employers within the financial services industry may decline a job application if an applicant has to undergo a credit search and they notice Pay Day Loan information as it signifys the applicant may have trouble controlling their salary.

Harsh I know, but true!
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# 11
lawrie28
Old 03-05-2011, 11:45 AM
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It has not damaged your credit score, but it has meant that people see the transaction and infer certain things from this.
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# 12
Enfieldian
Old 03-05-2011, 1:32 PM
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I am surprised that they told you this information instead of mumbling some standard spiel about "Data Protection"

What right does a prospective lender have to see who your SETTLED accounts are with, other than them, anyway? Current, maybe....
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# 13
rartherinv
Old 21-02-2013, 10:35 AM
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Does anyone have experience of these showing on experian or equifax or do they only report to call credit? My noddle report is showing loads of payday stink to my name, whereas the main 2 are not showing anything?
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# 14
Tixy
Old 21-02-2013, 10:47 AM
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Quote:
Originally Posted by rartherinv View Post
Does anyone have experience of these showing on experian or equifax or do they only report to call credit? My noddle report is showing loads of payday stink to my name, whereas the main 2 are not showing anything?
Are you referring specifically to wonga or payday loans in general?

I am fairly sure past posters have said wonga have reported to their experian credit file.
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# 15
rartherinv
Old 21-02-2013, 11:01 AM
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I went through a phase last year and there are 4 different payday lenders listed under Closed Accounts (Quickbridge (Uk) LTD aka Wonga, Pounds to Pocket, Quickquid & Uncle Buck) and as for my previous credit searches (!!!)... Speed-E-Loans.Com, Cash On Go, Gb Group Plc, Cim Technologies Limited, Mem Consumer Finance, Uncle Buck, Wonga.Com, Pdl Finance, Casheuronet Uk are listed in a chronicle of chrap.

Whereas my experian and equifax reports have no trace of any searches or account history from any of these companies, just the regular mainstream stuff normal people have on their reports like current account, phone, credit card. As a result, on experian/equifax i am looking prime whereas callcredit i am looking like the bottom 0.01% of the market.

I was just wondering if this is universal that they only report to call credit? If this is indeed the case I really need to carefully pick which lenders to apply to in the next 6 years
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# 16
Apples2
Old 21-02-2013, 11:22 AM
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Quote:
Originally Posted by rartherinv View Post
I was just wondering if this is universal that they only report to call credit? If this is indeed the case I really need to carefully pick which lenders to apply to in the next 6 years
Better still, try not to apply to any lenders. You can see the effect that little short term fix has and how long it has that effect for.

Open a Credit Union Savings account right now and keep putting anything you can into it, even a pound or two. Hopefully you will have enough to avoid PDL in future.
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# 17
rartherinv
Old 21-02-2013, 12:55 PM
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Quote:
Originally Posted by Apples2 View Post
Better still, try not to apply to any lenders. You can see the effect that little short term fix has and how long it has that effect for.

Open a Credit Union Savings account right now and keep putting anything you can into it, even a pound or two. Hopefully you will have enough to avoid PDL in future.
PDLs are in the past, but stained forever on my callcredit report it would seem. Looking to get a mortgage next year, eek! Good thing no one uses callcredit except companies too cheap to buy reporting contracts with proper CRAs
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# 18
jonesMUFCforever
Old 21-02-2013, 9:46 PM
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Quote:
Originally Posted by rartherinv View Post
PDLs are in the past, but stained forever on my callcredit report it would seem. Looking to get a mortgage next year, eek! Good thing no one uses callcredit except companies too cheap to buy reporting contracts with proper CRAs
...........Such as Lloyds TSB Halifax Cheltenham and Gloucester, Birmigham midshires etc yeah right nobody of any significance.
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