Payday Loans

maxipep

I use payday loans quite regularly for whatever reason, I always pay them back on time and understand why they are so high in interest, however one thing about payday loans that i've noticed is they never inform anyone you payback on time, they are quite happy to do a credit search on you but are not willing to advise any credit reference agencies the fact you are a good payer, having thought about this i have come to the comclusion that if you are a good payer and they do let credit reference agencies know your credit score is likely to increase making it more likely you would get a loan from a bank and not need their services anymore.
It would be interesting if any payday loan representatives reading this would comment on this theory

CLAPTON

I would have thought that if any mainstream bank knew you were using payday loans they would run a mile from you.

maxipep

Explain please

CLAPTON wrote: »

I would have thought that if any mainstream bank knew you were using payday loans they would run a mile from you.

Enfieldian

Quite often a PayDay lender will only do an unrecorded search to verify that you live at the address given, phone an employer to check to see if you are employed where you said and then debit £1.00 from the card you signed up with to confirm it is genuine and active, then refund/fail to complete the £1.00 transaction.......

Apples2

If you use Payday Loan companies you are NOT a good manager of your finances.

Nobody in their right mind with a good financial awareness would use them.

I agree, anyone with a history of regularly giving away £130 in exchange for £100 back really isn't a risk worth taking.

Using PDL is not something to be at all proud of at all.

fozmcfc

maxipep wrote: »

Explain please

If you are regularly using payday loans, then obviously you are struggling for money. So why would banks etc, want to give you credit. If you can't manage to live month to month, how is a having to pay out extra on a credit card, overdraft or loan payment going to help. It's obvious the banks wouldn't look at someone regularly using payday loan company.

Payday loans are for one off unforseen emergencies and not to be relied on, if you are regularly using them, then obviously you either have a lot of unforseen emergencies or you simply can't manage most months on the money you have available.

If you are struggling many months for money and using payday loans regularly, then it's time to get serious and to look throughly at your finances. Post over on the debt free wanabee board and post up an statement of affairs (SOA). Many people over there to give support/advice on any cutbacks you can make, so you don't have to rely on payday loans.

Get serious and stop paying huge interest for the sake of cutting back for a few months to get your finances on track.

Debt_Doll

I don't know whether to be quite proud of myself or not. I too am a user of payday loans and at some point managed to get 9 of them all at once (bad time methinks) anyway I managed to pay off three of them earlier on this year and still remain in good credit with them through never missing any payments then last month I paid off another two. Two finished this month and have made an arrangemt with the other two to pay over 3 months so before xmas I will have Zero payday loans and have already set up 2 savings accounts with my bank to pay what I was paying in interest to the loans to see if I can stick to a savings goal.

I understand you saying that payday loans are no good and now I tend to agree but at some point they are useful to people in desparate need

CLAPTON

Debt_Doll wrote: »

I don't know whether to be quite proud of myself or not. I too am a user of payday loans and at some point managed to get 9 of them all at once (bad time methinks) anyway I managed to pay off three of them earlier on this year and still remain in good credit with them through never missing any payments then last month I paid off another two. Two finished this month and have made an arrangemt with the other two to pay over 3 months so before xmas I will have Zero payday loans and have already set up 2 savings accounts with my bank to pay what I was paying in interest to the loans to see if I can stick to a savings goal.

I understand you saying that payday loans are no good and now I tend to agree but at some point they are useful to people in desparate need

you haven't explained why you wanted to take out 9 payday loans; who knows maybe there were good reasons;
however any reasonable lender would see you as an appalling risk.

Debt_Doll

At the time I was off sick and there was a slight problem getting my sick pay (i.e I wasn't getting any due to a mix up ) so in order to cover all my bills like my rent, shopping, gas, electric etc I took out four payday loans to begin with but then I think I just got into habit of seeing if I would be accepted (very dangerous) and consequently I was but then when my work sorted out my sick pay and back paid me and I was also allowed to resume work I realised exactly what I had done and how stupid I had been so resolved to sort it out and as I explained I have managed to. If I could turn back time I would have tried to find the money another way but as they say hindsight is a wonderful thing

maxipep

thanks for those who flamed me for using payday loans, and as it seems the norm to post your debts online, here are mine

credit cards 0
overdraft 0
mortgages 0
loans other than payday 0

so those of you with debts don't be flaming me. think of all the interest you have paid on credit card and loans etc, if it's nil or even close to mine then you have the right to chastise me about payday loans

fozmcfc

I see on your other posts, you are trying to get a £2000 loan.

You need to start building a credit rating up, by trying for something like a sub prime credit card and you now know that payday loans do not help build a credit rating. So as I said before,

"if you are struggling many months for money and using payday loans regularly, then it's time to get serious and to look throughly at your finances. Post over on the debt free wanabee board and post up an statement of affairs (SOA). Many people over there to give support/advice on any cutbacks you can make, so you don't have to rely on payday loans."

I do also see you have some sort of monies owed to debt collecting agency issue, obviously this could hamper your chances as well.

As far as interest is concerned, most people will be paying very little interest over a year, compared to taking out numerous payday loans.

Take a look at myself, all my credit card debt is interest free, because I am able to get offers such as 0% purchases and 0% balance transfers.

In the case of my loan, it was for various things, but at the end of the day, it's over 5 years at 7.9% APR, I'm sure when you have taken out numerous payday loans for 5 years, you will pay far more interest than I do at the hundereds/thousands % APR they charge.

So I would still say post up a SOA over on the debt free wanabee board, to try to get yourself sorted out, so you don't have to regularly rely on payday loans or indeed any loan.

Stick around the forums, I've learnt so much since joining and finally started to get serious about money.

You're probably a lot younger than me, so don't let yourself get to 38 years of age, before you decide to sort yourself out financially. Get your arrears sorted, get your finances under control, then you can start to take control and get together a credit profile that means you'll never have to turn to payday lenders again. :money: