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payday loan quick q!
If I get a payday loan and pay back as planned, does this give me a feew points on my credit score?
Done this a few times when I mucked up my finances, was wondering it's considered good or bad or ignored completely on your credit report.
ta in advance!
Done this a few times when I mucked up my finances, was wondering it's considered good or bad or ignored completely on your credit report.
ta in advance!
2011 <-- clear debts, start own business, publish book, quit job!
Progress: Raising money to start business
£128.00/£6.50
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Comments
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Repaying a debt on time is always a good thing for your credit record.
Taking out a payday loan on the other hand... may not be.0 -
payday loans dont report, unless defaulted0
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payday loans dont report, unless defaulted
That is incorrect. My Wonga loan is reported on CallCredit - and that's without any payment problems - was paid back early
However, most companies search either Experian or Equifax when you apply for credit.My posts are my own opinions based on my experiences and info gathered from sites such as this.
They are not a substitute for professional financial advice - but you knew that already didn't you?
VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!0 -
thx all, was just curious.2011 <-- clear debts, start own business, publish book, quit job!Progress: Raising money to start business £128.00/£6.50
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If I was a lender, I would be more concerned if someone was using payday loans. I don't know if the lenders yet consider them high risk (they do with some credit record entries). However, use of a payday loan would suggest financial problems and that cannot be attractive to a prospective lender.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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If I was a lender, I would be more concerned if someone was using payday loans. I don't know if the lenders yet consider them high risk (they do with some credit record entries). However, use of a payday loan would suggest financial problems and that cannot be attractive to a prospective lender.
Interesting point, however you are not a lender.
Does anyone actually have any factual information on what lenders think if they see a Payday loan account on a credit report?0 -
I have no idea about the automated systems, but if a case is referred to an underwriter I would expect a decline decision if such loans have been identified.Enfieldian wrote: »Interesting point, however you are not a lender.
Does anyone actually have any factual information on what lenders think if they see a Payday loan account on a credit report?
Payday loans are a clear indicator of an inability to budget.0 -
Interesting point, however you are not a lender.
I'm not. However, in my past I did time as someone who decided on whether to lend or not. If I had identified a pay day loan whilst making a credit decision then I would have been much more on guard.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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