WARNING- Pay day loans

chazagill

Anyone thinking of taking out one of these quick fix loans beware!
IT WILL AFFECT YOUR CREDT FILE, I took out one of these loans after paying for a holiday a couple of months ago to tied me over, i payed it completely on the promissed date and thought everything was fine, until i came to remortgage and the high street banks won't touch me, I have a average credit rating work in a solid full time job and have for the last 8 years, never missed any payment in 10 years and now because of this 1 pay day loan it has totally missed up my credit what's more because it's classed as a loan (even though it's a 1 month sort term loan) it stays on your file for 6 years! even after being settled. If i would have known this i would not have bothered, and i just wanted to stop someone making the same mistake i have.

Apples2

Noted: Loans appear on your credit file...

chazagill

The point is, high street lenders will not approve mortgages re-mortgages, loans etc to people who have pay day loans on their credit files, but i see you have no worries apples2 as you must make vasts amounts of money with your comic genius replies

tell_it_how_it_is

Have you not stopped to consider that your "average credit rating" as a whole probably may well be more of the issue? I guess that means you have other pointers on your file? :huh:

cottonhead

I totally agree with this post. Many payday lenders try and tell you it will improve your credit file because it shows you are trustworthy by paying it back etc. Not the case - lenders are very suspicious of these loans. Even extending the loan can count on your file as a new loan so before you know it you have loads of them. I really think payday loans should be banned.

chazagill

No bank has told me it's the pay day loans that are the issue

Apples2

chazagill wrote: »

but i see you have no worries apples2 as you must make vasts amounts of money with your comic genius replies

Disappointingly not as much as I deserve.

Point is, you have an "average" credit file so there is something else wrong on your file.

A Payday Loan, by it's very definition is to supply money to people who cannot make their income last form one month to the next. How do you think that would look when someone is applying for a loan?
You already know they cannot manage from one month to the next but here is their application stating they can afford another burden of debt to service.

Your posts suggests a naive opinion of credit files and money management.


EDIT: In response to cottonhead -
A typical PDL customer is already struggling. Many have a long history of missed payments, arrears, defaults etc so a credit file as bad as it can be.

For this type of customer, a record of at least paying "something" back on time may well be a positive on a credit file, but that is one little positive on a shattered record.

For these people, it may well help them a little, at least it is in the right direction.

For everyone else, as I have said earlier, it shows how you are struggling already.

BugsyBrowne

It's going to look bad whatever way a bank looks at it.For a mainstream bank going through a loan process and seeing PDL's is only going look negative.

jayce777

makes me sick when they write S*** loads of BS on their sites about it improving your credit rating, more like cancer for your credit rating.

DCFC79

chazagill wrote: »

The point is, high street lenders will not approve mortgages re-mortgages, loans etc to people who have pay day loans on their credit files, but i see you have no worries apples2 as you must make vasts amounts of money with your comic genius replies

Its clear using PDL's can have a negative effect on a credit report, it just shows people can't budget accordingly. If your having to resort to a PDL then you muct be spending more than what you have coming in, its simple maths.

BugsyBrowne

jayce777 wrote: »

makes me sick when they write S*** loads of BS on their sites about it improving your credit rating, more like cancer for your credit rating.

Think this post is inappropriate TBH.