Once a debt has been re-paid

Bella_M_2

I will be clear of my payday loan & catalogue debt by April 2013. I currently have 5 payment plans, 3 with payday loan companies and 2 catalogues. Once I have repaid them what will happen to my credit file? I know that the defaults will appear for 6 years but will the companies I have my payment plans with automatically update their records to show that the debts are paid and will this then in turn bring up to date my credit report?
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I was also thinking of applying for a loan just to get rid if the debt now (balance for all 5 is £2,500) but my credit is shot to pieces and I doubt I would be accepted anyway.
Last year I had a really bad experience with YES loans, I paid them £70 after they told me I had been accepted for a loan but in reality all they could get me were loans dependent on a guarantor which I don’t have. I did the application over the phone but when they sent me the form to sign half of the information I had given them was noted incorrectly and in some cases it looked like they had just made answers up on my behalf. I never did get my ‘handling fee’ back despite numerous emails, letters and telephone calls.
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Bella

JustinCredibleGillespie

You can get your 'handling fee' back after 6 months by writing to said company and telling them to return it. Absolute scam artists. Your not the first to be had and wont be the last.

You definitely wont get a loan to pay these other debts off. Payday loans dont look very good on your credit file.

My advice.......

Stick to your payment plan and learn from this experience.

JCG

xx

Bella_M_2

I know that you're right but sometimes it's so frustrating that it's taking so long to pay them back! I suppose the main thing is that I'm actually paying them off & I'm free of incessant phone calls & letters but it doesn't stop the sleepless nights....

JustinCredibleGillespie

Exactly Bella and if you look around at some of the threads on this board, some Debt Free Wannabe's wont be debt free til 2016+ so I think your at an advantage, you just dont realise it yet

All the best

JCG

xx

Tixy

Bella_M wrote: »

I will be clear of my payday loan & catalogue debt by April 2013. I currently have 5 payment plans, 3 with payday loan companies and 2 catalogues. Once I have repaid them what will happen to my credit file? I know that the defaults will appear for 6 years but will the companies I have my payment plans with automatically update their records to show that the debts are paid and will this then in turn bring up to date my credit report?

Once the debt is fully paid your credit file will be updated to reflect this and will show a nil balance owed - but its not unusual for this to take a couple of months to be reflected on your file (especially if the company you are paying is not the company reporting to the credit reference agency).

So your report would then show 5 defaults that have all been satisfied. It will still look bad to potential lenders and you'll still find it hard to get credit.