Payday Loan to Improve credit rating/file - mistake?

IceCreamDreams

Hi all,

This has been touched on a few times but I can't seem to find a definitive answer. In February I took out a Payday loan with Wonga and purposely paid it back a few days early with the aim of trying to improve my credit file.

Wonga have reported back to the CRA's and obviously it doesn't show as a negative entry as the account was paid in full, but i'm now thinking that it might have been a mistake and done me more harm than good - as I may have made it look like I couldn't financially manage so needed to borrow until Payday, which wasn't the case. I just wanted another clean credit file on my account as my financial issues are down to a sparse credit history rather than a negative one...

Does anyone happen to know if I have gone and shot myself in the foot with this?

Apples2

A Vanquis card says the same thing, it's the same customer base as PDL companies so I wouldn't worry about it.

chanz4

companys cant see the company when searching cra. Is yours showing settled now on experian?

Conan_the_librarian

chanz4 wrote: »

companys cant see the company when searching cra. Is yours showing settled now on experian?

I didn't know that! But i'm sure I read somewhere that you can be scored down by some lenders for having storecards. Is there a way a lender can distinguish whether accounts on your file are from prime or sub-prime lenders?

IceCreamDreams

Hi, Yes, the account just shows as settled....

jonesMUFCforever

Isn't this going to cost you a lot of money?

opinions4u

Sometimes people can overthink their credit rating.

Get on the voters roll, pay your bills on time and take it from there.

jonesMUFCforever

opinions4u wrote: »

Sometimes people can overthink their credit rating.

Get on the voters roll, pay your bills on time and take it from there.

Indeed! And it does not cost a penny.:T

IceCreamDreams

Yes, It did cost me about £38 to take out the PDL, but at the time I thought it was a good way to improve my credit file - silly, I realise that now *duh*...

I have absolutely no missed payments, defaults or CCJ's, pay all bills on time and always try to pay off my credit card's in full every month. I am on the electoral roll and I think my biggest issue now is that I am now self employed, but I'm doing okay so hopefully this won't affect me too much.

My problems stem from previously being in a very abusive relationship for nearly 10 years, where my ex-partner controlled ALL of my finances. We got together when I was 16 so I never had my own bank account (apart from my Woolwich building society kids savings account that ended up being closed), credit cards or bills in my name and any money earned by me went straight into his account. I wasn't on the electoral roll where we lived together so essentially I didn't "exist" credit-wise for the best part of 10 years!

I am now in a fantastic relationship with the most loving, supportive and kind man (complete opposite of my ex!) and we are now expecting our first baby. I'm looking forward to having a mortgage with him in the next few years - which is why I have been so desperate to get on with improving my credit rating as quickly as possible (and stupidly thought the PDL idea might help!). Although me and my boyfriend are the same age, I am years behind him credit-wise! He has worked solidly in the Air Force for 8 years, has over £20K in savings and the limits on his credit cards are over £10K. He doesn't ever question me about my finances or my credit issues, but I want to be able to put in as much as he will when the time comes for buying our house (though I know he won't put any pressure on me to do so). Hopefully in the next two years or so, if I continue as I have so far, everything will work out.

...and that's my story, thank you for reading if you've got this far and thank you for all your advice! :beer: