Payday Loan

MichaelCR

I've just took out a quick payday loan to cover emergency expenses, The payment date is set for the 10th june 2011, However i wish to repay it early next week when I'm paid from work.

Would paying off a credit agreement early adversely effect my credit rating ? Or will it have the same effect as paying the loan off on time ?

Many thanks !

redpete

It would not make your credit rating any worse.

opinions4u

No negative impact.

Get it paid off asap and then open a savings account and save up in anticipation of future "emergencies".

MichaelCR

opinions4u wrote: »

No negative impact.

Get it paid off asap and then open a savings account and save up in anticipation of future "emergencies".

Thanks ! and thanks to redpete for your replys.

I wish i had followed your advice on the savings front ! definitely will get one sorted at the end of the month.

chanz4

make sure if its payday uk that they mark your credit file as clear, they didnt me

queenofstars

Pay it off to save on interest. Pay day loan places don't generally report short term loans to your credit, so it won't affect it in that way. If this was a long term loan, it may show on your credit but you still should just pay it off. They only really report when you have not paid and/or they are sending the account to collections.

paddyrg

Michael, if you keep ideally a grand or two as slush fund money, it will buffer you against any more PDL companies. There will be months wheen the car insurance needs renewing, the MOT comes up, and you have to rent a car to get to work...at Christmas...or whatever. Bills don't arrive neatly across the year, but come in lumps. Having a pool you dip into then top up will insulate you from those shocks, and even pay you a few quid in interest now and again

misssmcc

paddyrg wrote: »

Michael, if you keep ideally a grand or two as slush fund money, it will buffer you against any more PDL companies. There will be months wheen the car insurance needs renewing, the MOT comes up, and you have to rent a car to get to work...at Christmas...or whatever. Bills don't arrive neatly across the year, but come in lumps. Having a pool you dip into then top up will insulate you from those shocks, and even pay you a few quid in interest now and again

a grand or two?? thought i was doing well with my £230 savings balance lol

opinions4u

misssmcc wrote: »

a grand or two?? thought i was doing well with my £230 savings balance lol

You are! But keep trying to build it ...

chanz4

queenofstars wrote: »

Pay it off to save on interest. Pay day loan places don't generally report short term loans to your credit, so it won't affect it in that way. If this was a long term loan, it may show on your credit but you still should just pay it off. They only really report when you have not paid and/or they are sending the account to collections.

payday loan uk do

MichaelCR

paddyrg wrote: »

Michael, if you keep ideally a grand or two as slush fund money, it will buffer you against any more PDL companies. There will be months wheen the car insurance needs renewing, the MOT comes up, and you have to rent a car to get to work...at Christmas...or whatever. Bills don't arrive neatly across the year, but come in lumps. Having a pool you dip into then top up will insulate you from those shocks, and even pay you a few quid in interest now and again

Definitely will do that ! I'm terrible with money if i'm honest, I really should save and budget my finances better Thanks for the reply !


queenofstars,

PaydayUK Who i've took my loan out with do report payments to the CRA's So i guess it will add some positive history to my pretty much shot to pieces credit record !