Wonga to build up credit rating?

TrueUnitedFan

I'm looking to build up my credit rating.

18, (turned 18 a few weeks ago) and i've done a few silly things by applying for credit in a short space of time.

Thankfully, Vanquis have just given me a chance to build up a credit rating.

Anyway, i was wondering, is Wonga a good place to build up a credit rating, Say borrow £20.00 for 1 days, pay little interest, this shows up on your credit file it's been paid.

Would lenders in the future turn you down because you have used a pay day loan company?

Also has anyone used Wonga before, if so, is it easy to get accepted?

thanks

immoral_angeluk

Stick with the vanquis. Don't go near payday loans with someone else's bargepole.

InsertWittyName

Using pay day loans suggests that a person cannot manage their finances.

I would suggest it would be viewed negatively.

TrueUnitedFan

immoral_angeluk wrote: »

Stick with the vanquis. Don't go near payday loans with someone else's bargepole.

Hmm, it's not that i need the money, it's just i want to build up my credit rating, no one will give me a chance, and sometimes you have to go to these rips off's to get a chance by the guns

InsertWittyName wrote: »

Using pay day loans suggests that a person cannot manage their finances.

I would suggest it would be viewed negatively.

Thing is, when applying for credit, are computers that itellegient enough to know that you went to a pay day loan company?

I'm sure they don't really mind, so along as you've paid it, on time ect.

I don't know how companies work their credit rating systems, but i'm sure they only care if you paid things on time, no ccj's defaults, miss payments, available credit ect.

Who knows, only god and the companies themselves i guess. :cool:

rdwarr

If you haven't followed the advice you were given here before you turned 18 then it's likely that your obsession with credit may have damaged your rating already. Borrowing £20 from Wonga just for the sake of it won't help. Getting yourself on the Electoral Roll and acting like a responsible adult will.

InsertWittyName

TrueUnitedFan wrote: »

Thing is, when applying for credit, are computers that itellegient enough to know that you went to a pay day loan company?

I would suggest so, yes.

When I look at my credit report, all the different lines of credit are categorised (credit card, revolving credit, loan etc.) and I assume payday loans have their own category.

I found a very relevant question on the Experian site, it's worth a read: http://www.experian.co.uk/consumer/questions/askjames246.html

Fiddlestick

TrueUnitedFan wrote: »

Thing is, when applying for credit, are computers that itellegient enough to know that you went to a pay day loan company?

It's marked on your credit file with some of the lenders.

TrueUnitedFan

rdwarr wrote: »

If you haven't followed the advice you were given here before you turned 18 then it's likely that your obsession with credit may have damaged your rating already. Borrowing £20 from Wonga just for the sake of it won't help. Getting yourself on the Electoral Roll and acting like a responsible adult will.

So long as i don't apply for anything else for another 6 - 12 months i'll be fine.

Personally, i don't know a lot about credit, but i'm sure anyone who has ccj's, missed payment marks and defaults on their credit files would rather have multipule searches rather than the latter.

Multiple searches leaves a temp impact, ccj's, defaults and miss payments ruin your credit file for a long time.

Even though i have multiple searches on my credit file, it's only their for 12 months. It's going to take 2 years for me to build up a decent credit file, i must admit.

InsertWittyName wrote: »

I would suggest so, yes.

When I look at my credit report, all the different lines of credit are categorised (credit card, revolving credit, loan etc.) and I assume payday loans have their own category.

I found a very relevant question on the Experian site, it's worth a read: http://www.experian.co.uk/consumer/questions/askjames246.html

thanks for that, will have a read now.

I really appreciated everyone response's but i haven't quite had the answer to my question?

Has Wonga helped build your credit rating? Is it easy to get accepted (Bad/poor credit rating and got accepted)

thanks a bunch.


Seen this, this is quite good, from Equifax site.

Dear James,

I was wondering if you would please be able to tell me what effect taking a payday loan would have on my credit rating? I know that if I maintain repayments then it shouldn't be a problem, but I understand these loans are viewed as sub prime and I therefore wondered if to other lenders it reflects badly on my credit file for having this type of loan? Thanks in advance.

Joanna, London

Dear Joanna,
As long as you repay the payday loan on time and in full then any effect on your credit rating is likely to be positive. When lenders check your credit report they are looking for evidence that you are a responsible customer. Repaying a payday loan on time and in full should therefore strengthen your case, because many payday providers are now sharing credit data. Saying that, some high street lenders might see the fact that you’ve resorted to payday credit as a sign that your finances are under pressure. Importantly, lenders’ scoring systems are built by modelling actual customer data. As a result, if a particular lender’s experience is that customers who take out payday loans are more likely to miss their repayments, this will be reflected in their credit scoring. Actually, some of the lenders that use Experian for credit checks don’t currently differentiate between payday and other types of loans, so they wouldn’t be able to discriminate anyway. So if you do take out a payday loan, just concentrate on paying it back on time and you shouldn’t hopefully have any problems.

Saints2011

I'm afraid your being a mug to put it bluntly. I'm 20, and have been building up my credit history since 18 by using a credit card and paying it of in full each month. Your credit card is a perfect tool for just this.

As others have said a pay day loan is as it ses on the tin, how will lending £20.00 for one day build a good solid credit history the fact is it won't, but will be seen as you cannot manage your finances properly similar to using a overdraft but worse and it will show on your credit reports for six years from the date it's settled.
Listen to people with experience I don't claim to have any at 20 but I mirror what other people have said above.

Be patient, pay in full each month. Your on a winner.

Apples2

It isn't that nobody has answered your actual question, it has been answered already, it is the fact that you haven't had the answer you WANT

It won't help you and it is a stupid thing to do.
Ignore me as well if you like, keep asking until someone tells you it is a great idea

malcolmffc

You already have a sub-prime credit card to build your credit rating - that's all you need.

Do you even have an income? If not, why are you applying for credit?