Provident Loans affecting Credit

Clarkey_24

Hello.

My sister recently had a loan from the company Provident. The ones that charges massive interest and calls to your house once a week for payement. Anyway, she has missed a few payments, yesterday the woman who collects the money each week called at the house and said 'You want to be careful, if she doesnt pay it then your house will be blacklisted and no-one in the house will be able to get any sort of credit!'

Is this true?

Wutang_2

no - they are just plain evil and you cannot be blacklisted

happybroker

these people get paid commision on getting you to pay so will tell you anything. The house can't be blacklisted, it just doesn't work that way.

your sister needs to get away from companies like this asap (though Provi are one of the better ones out of a very, very bad bunch).

I have seen many, many people who have borrowed from Provi and not one has shown up on a credit search.

Clarkey_24

Thanks for the reply! So am I right in thinking that when I apply for a mortage within the next few months it will only look at my credit rating and not hers so my chances wont be affected?

happybroker

Provided you and your sister have never applied for credit together then it won't affect you.

If you have applied for credit together then this creates a "financial association" which can sometimes cause problems but you can break this association by writing to the credit reference agencies.

It would probably be a good idea to obtain a copy of you credit file which will have an "assiciations" section and this will show you what you need to know.