Do payday loans boost cr rating after bankruptcy

amstel2

Hello

I am a discharged BR (Aug08) so the BR & all the other adverse info wont drop off to 2014. However, since my BR i got a Cashplus pre-paid card with cr builder & a Vanquis Gold Card (have never missed a repayment).

My Cashplus a/c online states i can have a loan of £10 up to £400 with up to 28 days to repay. The charge is £2 per day per £100. The loan does get reported to CRAs. What i thought was if i borrowed say £50 every month just before payday at a fee of £1 per day for never more than 2 days this would cost just £2PM. Would this look good on my cr rating & improve it or could it backfire. If i did this i would do this until my cr file is clean in 2014.

What do you all think.

scottishblondie

No - mainstream lenders will be able to see/figure out that you are taking out short term loans, and this is usually a warning flag that you are having financial problems. This does not appeal to lenders. Just live within your means and keep using and paying off (in full) your vanquis card.

Better_Off_1983

If I was previously bankrupt I would not want to go anywhere near any form of borrowing ever again!

lifebeginstoday

Better_Off_1983 wrote: »

If I was previously bankrupt I would not want to go anywhere near any form of borrowing ever again!

So because you were declared bankrupt (possibly through no fault of your own) you are resigned to a life of renting?

To the OP PDL's will not improve your credit worthiness with anyone but the PDL firms please stay away from them:money:

1StepDebt

Stay a mile away from Pay-Day Loan companies. They'd actually harm any future mortgage application in most cases.

How long have you had the cards for?

Are you on the electoral register at your current address?

Do you have a mobile phone contract?


If you are currently PAYG, you could consider a cheap contract. For example, you can currently get an Orange SIM-Only contract deal for £10.50 per month over 12 months. On this plan, you can get £80 back by going through Quidco. This brings the cost down to £3.83 per month for 300 minutes, 3000 texts and 500 mb internet.

You'd need an unlocked phone (or one that's locked to Orange). It's easy to get your phone unlocked though.

A contract phone will help your credit rating more than any payday loan would.

If you need help with any of the above, feel free to PM me.

opinions4u

You would be insane to go anywhere near a PDL.

dunstonh

Pay day loans are viewed as high risk borrowing and a sign of desperation to get hold of money by mainstream lenders. Any lender requiring a manual discretion to lend will see a pay day loan as being a concern.

You were bankrupt in 2008. Going down the route of pay day loans after that is the last thing you should do.

JustinCredibleGillespie

Yeah I have to agree, PDL's on your credit file at this stage would be suicide.

Theres an article out there somewhere regarding Experian & Equifax categorising PDL's separately now on credit files.

Why dont you take this pre-application test for the Barclaycard initial to see if you'd be eligible.

https://letmechoose.barclaycard.co.uk/

JCG

xx

amstel2

Thanks so much for all the advice.

I have also seen some articles on MSE regarding Wonga making false claims about their loans improvng cr ratings when mainstream lenders regard them as adverse information.

I don't actually need a loan i wrongly thought it could be a tool to improve my cr rating. Will def be giving payday loans a wide berth now. I will just carry on paying my Cashplus Creditbuilder & Vanquis Visa on time & wait to the BR & other adverse info drops off in 2014.

alastairq

So because you were declared bankrupt (possibly through no fault of your own) you are resigned to a life of renting?

So, by renting [even for life?] this somehow makes one a 'second-class' citizen?

Why should 'eventually owning'[because one doesn't actually own the house until the day the mortgage is paid off].....a house be something that everyone should aspire to?

There is a common misconception that renting is somehow 'wasted' money.

For sure, a rent on a comparative property might be higher than a mortgage payment [not guaranteed to be so...so many variables to account for], but what is totally forgotten by most is, what you actually get for the extra money spent?

Rent..[especially if a long-term lease can be negotiated................less likely in this country than anywhere else in Europe]....isn't just a payment to put a roof over one's head. [A mortgage is really another form of rent].......it is also a payment for a service.

The landlord has certain duties and responsibilities towards the tenant....these cost money.

The same responsibilities are bestowed upon a person who 'owns' a property........[check the conditions attached to a mortgage, for example?}.......except, where does the money come from in that instance?

So, next time a comparison of costs rears it's ugly head, add to the cost of the mortgage, the costs of initial purchase, plus the annual costs of maintaining the fabric of the property?

Don't forget the money 'lost' due to negative equity......?

And the likelihood of actually completing a mortgage as planned?

[In my own case, having been in my rented property for more than 4 years now, the house has had several thousands spent on 'structural' repairs in that time..... repaired walls, damp courses, new immersion, new tank, new heaters, new flooring, new drainage, mostly associated with it being a quite old property of character....and in all that time, I have had but one minor rent increase!

The LL is very keen to keep me as a tenant....since I pay on the dot every month, and 'care' for the property........but, to set my experience in perspective, I have also owned properties for more than 30 years previously! So I know the costs involved .....]