Payday loan & Overdraft.... arent they the same????

ihateyes

So we all know PDL's are bad for your credit file.... but isnt an overdraft simply a revolving payday loan?

Its just a cheaper version. think about it.

dealer_wins

THey are not the same at all.

For a start a £500 overdraft used for a year doesnt cost £1000s interest!!

CLAPTON

ihateyes wrote: »

So we all know PDL's are bad for your credit file.... but isnt an overdraft simply a revolving payday loan?

Its just a cheaper version. think about it.

what's logic got to do with it?

and in any case permanently being in an OD is no longer fashionable and is indeed seen as a negative for credit scoring purposes

malcolmffc

Financially illiterate nonsense.

RobertoMoir

ihateyes wrote: »

So we all know PDL's are bad for your credit file.... but isnt an overdraft simply a revolving payday loan?

Its just a cheaper version. think about it.

Think about what? There's a difference between making an arrangement for a line of credit with your normal lenders and going to a lender of last resort, such as PDLs.

And in both cases, I think there's a big difference between using these things once for emergencies and living inside them on a month-to-month basis.

KingElvis

Normally an overdraft is issued and approved to people who have a good credit history and are good customers of the bank they use.

Payday loans on the other hand are for financial miscreants, the permanently baffled and those with no agenda.

Living in an overdraft though shows very poor money mangement skills.

Shuaibf1987

not same at all dont see any kind of affect

ihateyes

what i mean is if you constantly dip into your OD each month its like constantly using a PDL.... he shows your living outside your means....

Its revolving credit.
As i said above the OD is a cheaper option.