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  • FIRST POST
    • thomasfox
    • By thomasfox 13th Oct 16, 11:20 PM
    • 25Posts
    • 4Thanks
    thomasfox
    Quick Quid - helps or harms a credit score?
    • #1
    • 13th Oct 16, 11:20 PM
    Quick Quid - helps or harms a credit score? 13th Oct 16 at 11:20 PM
    Hi all,

    I'd appreciate your expertise on payday loans such as Quick Quid etc.

    I've got a couple of friends who say two different things - one claims that they mess up a credit file even if the loan is paid off in full and on time or early, and the other one tells me that these loans help to improve credit scores especially when taken out quite frequently ie. every month on large amounts such as £1,200. He stressed to pay it off within 2-3 days as interests are about 1% daily so it's an expensive but effective way to boost one's credit score.

    Please advise, thank you!
Page 1
    • takman
    • By takman 13th Oct 16, 11:47 PM
    • 1,538 Posts
    • 1,179 Thanks
    takman
    • #2
    • 13th Oct 16, 11:47 PM
    • #2
    • 13th Oct 16, 11:47 PM
    Hi all,

    I'd appreciate your expertise on payday loans such as Quick Quid etc.

    I've got a couple of friends who say two different things - one claims that they mess up a credit file even if the loan is paid off in full and on time or early, and the other one tells me that these loans help to improve credit scores especially when taken out quite frequently ie. every month on large amounts such as £1,200. He stressed to pay it off within 2-3 days as interests are about 1% daily so it's an expensive but effective way to boost one's credit score.

    Please advise, thank you!
    Originally posted by thomasfox
    Loans like this hotel into the category of "short term loans" on your credit file. These loans are looked to be bad from lenders because you only take them out when your desperate. So taking one out each month will look like you are short of money each month and make it very difficult to get credit at a good rate in the future.
    • Ben8282
    • By Ben8282 14th Oct 16, 3:58 AM
    • 1,339 Posts
    • 501 Thanks
    Ben8282
    • #3
    • 14th Oct 16, 3:58 AM
    • #3
    • 14th Oct 16, 3:58 AM
    Very bad. Very harmful. Avoid like the plague.
    • thomasfox
    • By thomasfox 15th Oct 16, 7:11 PM
    • 25 Posts
    • 4 Thanks
    thomasfox
    • #4
    • 15th Oct 16, 7:11 PM
    • #4
    • 15th Oct 16, 7:11 PM
    Thanks guys!
    • Malmo
    • By Malmo 15th Oct 16, 7:50 PM
    • 695 Posts
    • 514 Thanks
    Malmo
    • #5
    • 15th Oct 16, 7:50 PM
    • #5
    • 15th Oct 16, 7:50 PM
    Any form of short term lending like this is detrimental to your credit history. Some lenders automatically decline if there is a payday loan in the last 12 months.
    • hsnyldz
    • By hsnyldz 18th Oct 16, 7:20 PM
    • 19 Posts
    • 1 Thanks
    hsnyldz
    • #6
    • 18th Oct 16, 7:20 PM
    • #6
    • 18th Oct 16, 7:20 PM
    Avoid! Ask a friend a family member, your mother your father instead.
    • Dobbibill
    • By Dobbibill 19th Oct 16, 7:09 AM
    • 1,725 Posts
    • 2,861 Thanks
    Dobbibill
    • #7
    • 19th Oct 16, 7:09 AM
    • #7
    • 19th Oct 16, 7:09 AM
    PDLs show lenders you are unable to budget from one payday to the other and need help doing it.

    Another vote to avoid!!!!!!

    Your friend who is telling you they are good for your CR may be trying to convince/justify it to themselves rather than you.
    • concernedSaver
    • By concernedSaver 19th Oct 16, 1:33 PM
    • 77 Posts
    • 18 Thanks
    concernedSaver
    • #8
    • 19th Oct 16, 1:33 PM
    • #8
    • 19th Oct 16, 1:33 PM
    Even if it helped your score (which it does not), I wouldn't take a loan and pay an inordinate amount of interest for the sake of building my credit profile.
    • smdabs
    • By smdabs 19th Oct 16, 2:19 PM
    • 58 Posts
    • 49 Thanks
    smdabs
    • #9
    • 19th Oct 16, 2:19 PM
    • #9
    • 19th Oct 16, 2:19 PM
    While if you pay on time, your credit file itself would not be harmed, a lender can see who your accounts are with and whether they were short term loans.


    From a banking perspective, as soon as they see a payday loan, it is a huge indicator of financial difficulty. So while an autoscore (e.g. online credit application), may not show any negative markers (as long as you've made payments on time), if you wanted to apply for a mortgage, and the payday loans were found - they may well decline your application.
    • boo_star
    • By boo_star 19th Oct 16, 9:37 PM
    • 1,112 Posts
    • 528 Thanks
    boo_star
    While if you pay on time, your credit file itself would not be harmed, a lender can see who your accounts are with and whether they were short term loans.


    From a banking perspective, as soon as they see a payday loan, it is a huge indicator of financial difficulty. So while an autoscore (e.g. online credit application), may not show any negative markers (as long as you've made payments on time), if you wanted to apply for a mortgage, and the payday loans were found - they may well decline your application.
    Originally posted by smdabs
    Automated systems can easily pick up on payday loans, they now have their own category.

    I agree that mortgages will be a problem but I imagine many high street lenders will have issues with payday loans for credit cards, overdrafts and loans as well.
    • takman
    • By takman 19th Oct 16, 10:33 PM
    • 1,538 Posts
    • 1,179 Thanks
    takman
    While if you pay on time, your credit file itself would not be harmed, a lender can see who your accounts are with and whether they were short term loans.


    From a banking perspective, as soon as they see a payday loan, it is a huge indicator of financial difficulty. So while an autoscore (e.g. online credit application), may not show any negative markers (as long as you've made payments on time), if you wanted to apply for a mortgage, and the payday loans were found - they may well decline your application.
    Originally posted by smdabs
    This is incorrect a lender can't see who your accounts are with they can only see the loans in each category and amounts. So a short term loan will always be a negative no matter what you are applying for. I have never seen any lender say that it is positive if you pay it off in time and even the payday loan companies say that just having the loan will be a negative on your credit file.
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