Mortgage Application & Credit Agreements

sharman2k

Hi

Not sure as if I'm posting in the right place (i'm new here...) but was wandering if anyone has any experience with this ...

I am currently in the process of getting a mortgage with the a local BS and they have searched me with CallCredit. About 18 months ago I took out a Payday loan (silly really but there we go) and this is showing on my credit file. The BS concerned do not like Payday lenders for obvious reasons and are therefore declining the application.

I used the loan service for about 3 months and always paid on time. My question is if the account is now settled and close is it possible to request that they remove it from my CallCredit file? Interestingly it does not show on my Equifax or Experian report. The BS have said if it is not there then they are willing to accept my application.

I cannot use a whole choice of lenders as it is shared equity and I was bankrupt in August 2005.

Anyone any information on this?

Thanks

J

GMS

You cannot have an account removed because it is settled. It will stay on for 6 years.

Chances are the bankruptcy is causing more of an issue than a payday loan although a previous bankruptcy could be viewed as financial problems in the past and a payday loan as problems in the present.

Maybe they are thinking bankruptcy is a possibility again.

sharman2k

Thanks for the reply ... the bankruptcy does not pose a problem as it is discharged over 3 years ago and my reports are updated as such.

Having spoke directly to the BS concerned, it is the PayDay loan that causes the problem - everything else they are happy with.

GMS

Cannot see how you would get it removed because it is factually correct.

If you had a CCJ which was stopping a lender would you expect to be able to get that removed?

Try speaking to a manager at the lender and explain the situation.

Why did you take a payday loan? Was there no alternative? As much as it is a poor loan to take you kept up the agreement so that proves you can manage finances.

sharman2k

No, if the information is correct then I guess it needs to stay there for the prescribed time. I agree with the point that I would not expect anything to be removed unless it was factually incorrect.

I guess my frustration is that I took the loan to help out a friend - a silly thing to do in the cold hard light of day. Perhaps if it is marked as settled and the account close this would throw a different light; the account with PayDay loan company is still open though has not been used for about 12 months.

I have spent six years being a very good boy when it comes to credit for this exact reason; so I could take out a mortgage. Other option I guess is to speak with the Payday lender and appeal to their sense of human kindness and ask them to close account, refuse any future lending and remove from credit file?

Otherwise ... back to the drawing board!

GMS

If it is not needed then close it.

Available credit can harm credit scoring, especially if a manual underwriter deems it to be risky lending.