pay day loans

iWeb_Rob

if you use theese services and pay on time would it help your credit report/score?

as i used wonga a long time ago for a small amount of £20 and it is now showing on my credit report £20 payment satisfied... is this helping my credit or is it bad?

rob.

Mikek_3

Dont mess with hese people,They always win

iWeb_Rob

I was just asking if this being on my credit report is helping it? Or if it showing on there as settles is a bad thing?

Rob/

MFWannabe

Personally i would think that payday loans on your credit report would be see as a bad thing as they are used by people who cannot get credit anywhere else

iWeb_Rob

It doesn't show as a payday loan tho, it shows as quickbridge advance against income.

Surely it wouldn't matter who it's from? It's just showing you can manage credit etc isn't it surely?

Rob.

Tixy

Hi

Difficult to say whether lenders would view it as good or bad. Probably some would see it as good others bad.
A potential lender won't see the name of any other lender anyway. In theory its good to see that you have used credit and settled it but for such a small amount and presumably it being only a month from opening date to settled date anyone looking at your report could probably guess it was a payday loan or similar.

My guess is it won't make much difference to how a potential lender would view you as a prospective client.

Might be worth reading this article - http://www.moneysavingexpert.com/loans/credit-rating-credit-score

iWeb_Rob

thank's for the information Tixy, will give that a read... so the payday loans would more than likely not have made a difference against my credit score? like hasnt made it go up or down 1 digit?

rob.

paddyrg

Each lender has their own criteria, so where you went up a notch with one, you go down with another. Probably. Hard to tell, as they keep schtum about their processes. Your experian score is not a particularly useful indicator anyway1

iWeb_Rob

so will thinking like my catologue help my credit?

i have to make paments of xx.xx each month, if i stick to my repayments will this help improve my credit and credit score?


rob.

paddyrg

Smae deal, there's a bit of a black box, different lenders will be looking for different ways to score you. One thing is for sure, not making regular payments would not do you any favours! I can't imagine there will be a single one-off act that will make things better overnight, more a long haul of a bit at a time, keep a clean positive bank balance that shows stability as opposed to get paid Friday, empty by Sunday, overdraw when bills hit, recover Sunday, etc. Instead try to build up a stable account with a real cash buffer of a few hundred quid, banks love to see that.

The truth is that it's easy to get credit when you don't need it, hard when you do.

drew2k9

OP i think due to the fact that it is such a small loan, most companies will see it as insignificant to your credit rating. it isn't big enough or over any period of time to make a judgement on your ability to manage money and repayments etc.