Repairing credit after payday loans

cottonhead

I have stupidly taken out a series of payday ooans but hope to clear them all by the end of the year. I have promised myself not to take out further credit and to run my account smoothly.

I know lenders look down on payday loans which is totally understandable but after how long do you think I will appear credit worthy enough for a mortgage application ?

I know it will stay on my file for 6 years but if I dont apply for new ones, will I be deemed trustworthy sooner than the 6 years? Does anyone have experience of credit after payday loans ? Thanks

rdchick

I think as the years go by the more 'trustworthy' you'll become to the banks, if you have a credit card be sure to pay it full each month etc and that will help too... Even a file with defaults looks better after 5 years of 'good behaviour' xxx

happy_bunny_2

Depends who you used, which CRA they report to and which lender you use as to which they search.

BluePumpkin

Oh dear! I've also gone for payday loans, I didn't realise that they counted against your credit rating