What goes on Credit History

ajo

I have helped out a friend a few times by lending him money by using Cash till Pay day loans.

I had to do it as he didnt have a proper card or a cheque book.

I would like to know if these in any way effect your credit history or anything like that?

Thanks

ajo

file_wizzard

No, These are not externally "scored" or recorded, they are however not that far removed from daylight robbery, and there must be a better way to resolve your friends problems than resorting to this?

ajo

Thats good to know. Is this the case even if they come out your account as that is still just paying them off just without having to go down there which is a pain.

It was the only thing that he could do really and I had to help him, it was better than lending him more of my money!

file_wizzard

The only problem would arise if you failed to repay it as then they could theoretically enter a default against your file.

Perhaps your friend could have a look at the debt free wannabe board and post an SOA, at least this way others may advise on how he can get to the end of the month without needing to use these loans which in fairness are just driving him further and further in to debt, i.e £25 per £100 borrowed I believe ?

ajo

No, not that much, only £12 per £100 I think.

Whats an SOA?

file_wizzard

Statement Of Affairs, Basically listing all your incoming and out going items per month.

In this way you can identify what is going where and how to perhaps “trim back” on some items leaving you more spare cash to throw at your debts.

R.e the “payday” service I think this is a typical schedule of charges, Quite how they have the ordacity to state they are “helping you to manage your finances” with rates like this is frankly comical!

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Our charging structure is clear and straightforward, to help you manage your finances.

You borrow Total amount payable in single payment:
£80 £100
£100 £125
£200 £250
£300 £375
£400 £500
£500 £625
£600 £750
£750 £937.50
Typical 1355% APR (30 day loan)