How long until Payday loans leave credit history?

ostft

consumerism wrote: »

Please clarify who the issuer is, I have worked with most the banks (certainly the big 4) and will then be able to grasp this better.

Thanks

considering your "experience" so far has completely discounted my financial history which I know to be true I wouldn't put much weight on it.

The card is the "platinum card" from American Express. It's listed as having no limit but I contacted them and they told me that the limit is £20,000 which I would be eligible to spend up to, although it talks about "pre-approval" for charges and stuff so I'm not sure if they were just trying to sell it to me or telling the truth. The card can be found here: americanexpress com/uk/platinum-card/

jason1231972

OP, you now know that you can't cheat your way into a good credit history, and may have done more bad than good. So that's sorted.

If you want to start building, go back to the bank (or another issuer) and take what you can get. Spend and repay wisely, as that's one of the only ways you can definitely improve your creditworthiness.

Yes, CCs do offer certain benefits and protections. They're not life-changing matters, though, you can live quite OK without them, so if you get a naff card with a low limit, it's no big deal (and the limit would probably spiral upwards over the next couple of years anyway). I've had a number of CCs over the years, that offer cashback, rewards, and so on. I have never directly benefited from any of these things in a significant way, because the 'deals' just aren't that good.

Take what you can get, prove your mettle, and once Wonga drops off (6 years, but the issue may become less serious with time), the world is your credit oyster.

KingElvis

Barking thread..it has all the classics.....70k pa, payday loans, fantasy credit scores for Experian etc etc

ostft

consumerism wrote: »

Hi

I have not discounted your history, I have only stated that if you apply to a mainstream lender with PDL's as the primary source of data feed then it will do you no favours. This was, as you now recognise, a big mistake to make.

consumerism wrote: »

If you earn £70k then HMRC will take around £1500 per month. How do I know? Because I actually do earn that (with bonus). I can't even get a £20k limit on a card and I have a long and established employment history and own my house.

No way do you have a £20k card limit. Sorry.

I took this comment to be you discounting my history, if that is not the case I apologise.

consumerism wrote: »

I understand Amex, so you have their chargecard. That's different to a credit card and is also maintained differently as there can be no carry forward balance from month to month which similarly, won't help with building a credit profile. Yet again you fail to recognise that paying over the odds for credit does not help because I am inclined to think that for a £450 annual fee

I think my subpar research has bitten me again then, from what I can find although credit cards and charge cards differ in the finer details (can/can't carry a balance) they provide the same value to a credit history. Is this not the case? Do you have any links to where I can find out more?

consumerism wrote: »

HSBC would bite your hand off if you swapped and went to their private banking.

This just hasn't been the case though, they can see that I have over £70,000 per year income into my HSBC current account and even after 6 months of this (£35k in to current account, credit card 100% paid off every month) they rejected my request for a raise from £425... people that I know who earn £10k/year and have serious debt problems have higher limits than me. What do you think could have caused this? This was BEFORE the pay day loan idiocy.

consumerism wrote: »

A chargecard, payday loans and catalogues/mobile contracts only show basic information, it will not build a credit profile for you. To get the best from this I would be sticking with HSBC as their internal score will stand you in good stead for credit increases as HSBC rely heavily on internal scoring for lending. :cool:

Seems I was mistaken then, I was under the impression that all well managed credit and bills were positive influencers on long term credit history, if only Martin's campaign to teach finances in school had been around when I was in school, although I'm an adult with internet access so ultimately this is all my fault.

What resources would you recommend that explain credit and the values of each type and how best to manage a good credit score? None of this matters to me now as I'm cash positive and have no long term responsibilities, but I'd like to put myself in a position where in my late 20s I can take advantage of my earlier good credit management with mortgages etc.

Sorry for being snarky.

jason1231972

ostft wrote: »

What resources would you recommend that explain credit and the values of each type and how best to manage a good credit score? None of this matters to me now as I'm cash positive and have no long term responsibilities, but I'd like to put myself in a position where in my late 20s I can take advantage of my earlier good credit management with mortgages etc.

Because a mortgage is a secured loan, you don't need to worry about building up a gold-plated credit history to get one. You just need not to have adverse credit (there are even deals available for adverse credit, though!).

Many people do diligently build their credit for years prior to applying for a mortgage, and it's not a bad idea at all, but your credit history (assuming no adverse) is only one part of mortgage lending criteria. As with everything, income and affordability are huge factors. If you have the proven income and affordability, and no adverse credit, the mortgage should take care of itself.

Your Wonga business is adverse in the sense that any responsible lender (regardless of the product) will be spooked by the idea that you're voluntarily using ridiculous methods of borrowing. It smacks of irresponsibility and unaffordability, even if that's not the case in your own circumstances. However, as said, this will be swept under the carpet 6 years after the repayment of your final Wonga loan

jason1231972

consumerism wrote: »

HSBC only generate an internal score after 7 months of having any credit related account with them so maybe when you applied you were too soon. If anything, call phone banking and ask what your behaviour score is. If it is above 60 then you will be eligible for an overdraft, secondary account and credit card upto £2500. If higher than 61 then you are pretty much guaranteed a loan and/or other borrowing.

Sorry to piggyback and sidetrack, but just a quick HSBC question. My partner's customer behavioural score is 82 (we saw this on her screen in branch as part of a recent mortgage pre-application appointment). All things being equal (everything on our mortgage app rings absolutely true and can be proved), do we stand a good chance of approval? Just in your opinion, I understand that you can't give a definite answer.

Also, I am now a joint holder on this account. I joined very recently. Is my CBS therefore also 82? Or do I have to wait for my own?

jason1231972

consumerism wrote: »

If you have an internal score of 82 then well done. This would usually pre-approve a loan, card and overdraft. 80+ is equivalent to around £20k of unsecured lending (IIRC) - I left HSBC 4 years ago but their scoring model is still the same.

Best to go into branch and ask for an account review and say "I was looking at an unsecured loan and/or credit card and wonder if HSBC can assist" - the account review will then show the internal score, they'll do one external search with Call Credit and from that they will tell you exactly what you will be able to apply for (and pretty much guaranteed acceptance as well).

What were you after? A card or loan? 82 is really good. Mine was highest at 88 and I got offered (as staff) £25k unsecured loan and £5k overdraft with £11k credit card. But I instead chose to have a £17k credit card which went through after going to underwriting (the same team that I was manager of funnily enough).

Good luck.

We're after a mortgage and have an agreement in principle with HSBC up to 90% LTV. Just have irrational fears of rejection (there's nothing wrong with us our our property, we're just anxious FTBs!!).

OH gets everything from HSBC, and is often cold-called by them. Probably couldn't get £20k unsecured because it's almost double her part-time salary (mortgage would be about 1 x our joint salary - inheritance - long story), but she's had some very handsome limits over the years! 'Our' overdraft limit is £5,000, which I understand is the maximum for personal customers. Her credit card limit was £5500, but she chopped it down. So, at one point, they made available to her credit limits in excess of her annual salary, plus lent her a personal loan on top.

I'm thinking of making them my main bank

Bravehearted_2

Consumerism - what factors generally count towards higher Internal scores?

What drags it down?

jumperjohn

FAO Consumerism.

Why are pay-day loan companies bad news on credit files? I don't use them but I have had a Vanquis card for quite a while.

Will a credit building credit card be seen as a bad marker akin to a pay-day loan? Or would a high street lender see a, for example, Vanquis card as being ok?

I have a Barclaycard Platinum too, but that's all, no loans yet. Sorry for the slight hijack.

jumperjohn

consumerism wrote: »

John

PDL's show desperation and suggest you cannot obtain normal credit and most lenders then ask 'why'?

Vanquis is fine, it is a credit card. Capital One, Barclays and Aqua all have credit-builder cards and all are seen as acceptable tools for getting back on the credit run.

Avoid PDL's and you should be fine

Thank's for the information!

I hope that I'm never desperate enough to use a PDL, I understand though that some people do have to.

The reason I asked was that I'm hoping to buy a new car soon. I have checked my files and there are a few issues relating to debts but these accounts drop off my file this Friday, 6 years after default. They wern't huge sums, just an oversight, £150 and £134 01/06/2006 and have been settled.

I have run two bank account,mobile phone and a couple of credit cards, all green dots. I wondering when it would be better to apply for a car loan, BMW finance. Should I wait a month after the files have been 'cleaned' or longer or as soon as the files show the defaults gone? Also it would help if I could give you a break down of my application so you could review it and see what you think.
Maybe needs a new thread though.............
Thanks!