Multiple payday loans

Wallet

Hi I'm new to the forum and have found it very useful so thanks to all it's knowledgable members

My crisis starts about 10 months ago when I took out my first payday loan, I then went on the sometimes inevitable downward spiral that many have done before me and took out loan after loan month after month. Often taking a new one out to pay the old ones back.

I have finally rid myself of this scenario and look to be taking steps to repair my credit report.

This morning I have activated my idaware account with lloyds and to my horror I have 21 accounts in my name!!! 5 of these are the 'normal' accounts such as credit card, current account etc however the rest are simply every payday loan I have ever taken.

My question is this: Is it possible to have these multiple accounts removed or singled down to one for each bureau? This no doubt is contributing to my poor credit score which I am doing my damnedest to mend.

Thank you in advance

cats2012

Someone will probably know more than me, but I'd say probably not unfortunately. They are technically all separate loans.

Tixy

Hi and welcome

It is unfortunately correct to show each loan you have taken out individually.

Did you pay back all the loans on time? or do any show missed payments or defaults?

If all were paid back on time with no negative markers then with time the impact from the prescence of many payday loans will reduce and they should have a lesser impact on your ability to get credit from new potential lenders.
But in the short term they will make it hard to get credit - as the lenders will interpret that you have been unable to manage your monthly finances.

If you did default on any of the loans or missed payments then they will impact on your ability to get credit for much longer.

In terms of improving your credit file - have you had a read of this? - http://www.moneysavingexpert.com/loans/credit-rating-credit-score/

Wallet

Hi Cats2012 and Tixy, thanks for your input.

Fortunately, I did pay back all payday loans on time so hopefully the negative effect they have is short-lived.

Would a letter to the credit agencies asking them to remove a 'few' out of good will do any good? Or is this legally impossible?

@Tixy yes I have read and found very useful

Thanks

Tixy

The credit reference agency will never remove them if they are correct - they report what the lender tells them to report.

So even if you tried that tactic it would need to be the payday loan company you asked to consider removing them - they could do this, its not illegal for them to do so - but the chance is very slim, there is no incentive for them to remove them when they accurately show your credit history.

But to be honest - removing a few of your payday loans and leaving the remainder is going to make very little difference to your credit history.

Steer clear of payday loans for 6months to a year and assuming you pay back all other debts/agreements on time in the meantime and you should find mainstream lenders will consider lending to you again.

cats2012

I'm with Tixy, there is no real reason the lender would do this. Even payday lenders are supposed to adhere to the Lending Code which (tenuous I know) means they should do the right things by the consumer and rest of the market, which in this case is to give other lenders the full picture of your credit history.

Sorry! But like others said I wouldn't overly worry if you've managed them well.