Wonga to build up credit rating?

osk

buttscratcher wrote: »

A couple of months back, James O Brien discussed pdl's on LBC when the eye watering aprs had made the headlines. Most of the radio phone in was taken up by callers echoing the majority view on these forums- ie stay clear of the pdl debt spiral/how awful/loans sharks etc etc.

Then a lady called in who supposedly was in a household where they had a 90k plus income. She had been listening and felt that she had not been represented fairly. Her argument was that although she lived well and her family could afford holidays and had cash tied up in various forms, she found pdls to be useful on the odd occasion where her expenses didn't meet ends.

She liked the idea of being able to borrow a couple of hundred for a few days and pay a tenner for the service. In her view it was a better deal than exposing herself to having a credit card where she admitted she couldn't trust that she wouldn't end up with a huge balance.

Now I would argue you could rack up a debt just as easily with various pdls as you could a credit card balance but maybe there is a market for the middle class pdl fan?! Lets not forget the news stories about the up-market pawn shops that took ferraris and rolex watches in from very high earners who were also in need of some short term cash! :eek:

I am exactly what this woman describes. My income isn't huge, but I have around £60,000 per year and I often find that near the end of the month when I've been doing things (like paying tax, travelling and making purchases) I come up short. For example this month my expenditure is unfortunately around £1,000 more than my income and because I don't have savings that I can "dip into" and struggle to obtain credit (I suspect being self employed to be the cause, although more recently I've come to accept that maybe it's down to my use of PDLs meaning nobody will touch me, which means I've snookered myself into relying on them) pay day loans are what I use.

I think for most people PDLs are a bad idea and I personally dislike relying on them, however as with the woman you mention they serve a very good purpose and I am in no danger of failing to pay them back, worst case I'll sell my assets. I'm not poor but I have minimal cash due to assets. The relative cost of pay day loans is very low for the value they provide, I normally borrow within the last few days of the month and pay back the day my pay comes through (last day of the month) and I've never once had any problems. The only concern is that my credit report is littered with Payday loans, although all listed as satisfactory. Some months I need £5k, some only £3k, it works out well for me personally.

I think that if someone can't safely answer "yes" to "if my pay day doesn't happen this month can I pay this loan?" then they're not something to use, but if the answer is yes I see no problems, it's a very small risk.

Hopefully I can soon build up my own cash reserve to make these not something I need as the credit report being filled with them is a concern, but beyond that they're fine for me

wicked7

I know only speaking from experience that as far as I'm aware they DO NOT help build credit rating.

I've not had a very good credit rating for years now (I think I once got it to Fair, but other than that it's sat at poor for about 18 months now) The reasoning given behind this was that I had high balances on my vanquis and Capital one cards, although I've never missed a payment.

Then last year - I missed one payment with Very online (my own fault for not checking dates on statements really - I pay them every month when I get paid but the statements were every 4 weeks so I missed one) and towards the end of the year I took out a couple of pay day loans to tide me over. I only wish that I'd read all the information about them on here before hand as I would NEVER have taken them out. I've had no problems with the companies themselves (Wonga and QuickQuid) as I've always paid back what I was owed and on time. But when I look at my credit rating now it is in the VERY POOR Category and both of them show up on my file..... Plus there is always the fact that you have to take them out again cos you are broke at the end of the month from paying it back etc.... it's a viscious cycle and one that i'm only seeing the light at the end of the tunnel for now. A couple of months and I'll be free from them and can honestly say I will NEVER take one out again.

Yes, if used correctly they can be a quick fix to tide you over but I would warn anyone taking them out to think ahead to the next month when there is every chance you will be just as skint if not more due to paying them back.....

Dry_Sweeper_2

TrueUnitedFan wrote: »

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

Pay Day Loan companies don't use credit reference agencies unless you get in trouble with them

Emmzi

Dry_Sweeper wrote: »

Pay Day Loan companies don't use credit reference agencies unless you get in trouble with them

could you cite your source please as I believe this to be twaddle?

Zorz_2

buttscratcher wrote: »

but maybe there is a market for the middle class pdl fan?! Lets not forget the news stories about the up-market pawn shops that took ferraris and rolex watches in from very high earners who were also in need of some short term cash! :eek:

http://news.sky.com/home/world-news/article/16152037

in the uk: http://blogs.wsj.com/wealth/2012/01/04/pawnbrokers-to-the-rich-boom-in-britain/

No surprise. Living beyond one's means doesn't happen only to poor people.

Apples2

RobertJohnson wrote: »

What I found out is that :spam: posts get deleted.

spam clicked...