PDL's and credit files

simon2010

I saw in another post that someone had stated that PDL’s ruin credit files. How much truth is there in this? Anyone know the correct answer?

If you take out a loan say, with Barclays your credit file is searched and then updated on a monthly basis as 0,0,0,0 etc (as long as you are paying on time). You would only get a registered default on your credit after 6 non payments.

If you take out a PDL they search your credit file (some don’t I am guessing). Do they then update your credit file on a monthly basis e.g. if you keep rolling it over etc? When do you actually default on a PDL? When would you actually get a registered default on your file?
Also, if you are taking out a PDL and paying back on time, how do PDL's ruin your credit file?

Many thanks for your time.

malkyh

I believe PDL's showing on your credit file can make some lenders think you cannot handle your cash, resorting to needing a PDL. But, if you need to take a PDL in the first place, it leads me to believe your credit is crap anyway.

Apples2

Aren't you the guy whose had about 30 payday loans?

I hope you aren't thinking that having so many is a really good thing....

simon2010

I think I explained myself to you the other day with regards to matters. Pls read previous threads or try actually answering my query. Thank you.

Hazzinho

PLD's are indeed a negative as it shows you're on the brink. The only people that take out PDL are people struggling to get by week to week and can't get loans or cards from the banks.

simon2010

Thanks Hazzinho

Is there any actual evidence to show/ say that they are negative on credit file?

Is there any evidence that other finance companies actually turn you away on the basis that you have been using PDL's?

malkyh

Do you have a good credit rating just now?

Apples2

simon2010 wrote: »

Thanks Hazzinho

Is there any actual evidence to show/ say that they are negative on credit file?

Is there any evidence that other finance companies actually turn you away on the basis that you have been using PDL's?

Nobody here can answer that. Lenders have their own Internal scoring machanism.

Best way to find out - apply for a loan and see what happens. If all you have is this "irrelevant" 30 Payday loans on your file but otherwise all greens and healthy account management, you should be accepted no problem.

You would be a good test case.

simon2010

No I don't and yes looking to improve. Apples is right I have had 27 PDL's in my time (not all at the same time) but always paid on time and no I don't have any more. I was just interested in my questions as I am trying to improve my credit rating.
I note that the only credit reference agency to register the PDL's is call credit, they are not on credit expert or experian....

malkyh

Am I to assume you are looking to take out another loan, hence the initial question?

Hazzinho

You're not guaranteed to be rejected but it's a flag to avoid for some lenders, if you're always into you overdraft that's a additional flag.