Pay day loan on credit file

cottonhead

Does anyone know if I have a payday loan and then pay it off and never deal with them again - how long will the evidence remain on my file ? Is it still 6 years even though it didnt default or will it be less than that ?

Im just worried that even though I should get myself debt free fairly quickly, the payday loans will leave a nasty stain that will impact my future borrowing.

geeka

Hi, im sure someone else who knows more will be along but i would have thought if you have paid the loan off and its settled that would be in your favour, it proves you can pay a debt off..............just my opinion

Bored

geeka wrote: »

Hi, im sure someone else who knows more will be along but i would have thought if you have paid the loan off and its settled that would be in your favour, it proves you can pay a debt off..............just my opinion

While we can never be entirely sure how lenders use the information from our credit histories, current opinion is that short term loans are viewed unfavourably as they indicate an inability to effectively budget and manage finances.

OP, you are correct in that payday loans, like other accounts, will remain on file 6 years. However a single settled payday loan is unlikely to have a huge impact on your overall credit file, and the older it gets the less potential lenders will care about it.

chandu1911

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