past PDLs on credit report

debrag

How do previous PDLs affect current credit history? Say you have had quite a few in the past but not had one for 2-3 years?

Brains64

debrag wrote: »

How do previous PDLs affect current credit history? Say you have had quite a few in the past but not had one for 2-3 years?

If someone made all of the repayments on time then I would have thought it would work in their favor if and when it goes on their credit report, if they defaulted on any, then as I understand it, it will be on their for 6 years, this is harsh I know, especially if someone has then eventually paid it but unfortunately, the default record stays on there for a longtime, I also suspect that some companies that look at a credit report won't like one that shows too many PDL's on their because it suggests to them that someone is having financial difficulties, I think though, in this economic climate that will become less significant than the repayment issue.

BugsyBrowne

Whatever way you look at it recent PDL's on a file looks like someone's struggling financially therefore a lender seeing that applicant as to high risk IMO.

As for 3 year old PDL's I can't see these being a problem as the applicants circumstances could of changed.

Tixy

I'd imagine that they'd interpret it that you'd had financial difficulties in the past, but that were no longer needing to rely on them so that financially things had improved.

I doubt it would have much impact on your ability to get credit now, assuming all were repaid on time.

FireWyrm

Previous PDLs arnt the problem. The new and emerging issue as of the last few months is that many (if not all) PDLs are reporting to the credit reference agencies, something that didnt routinely happen before. Unfortunately, for a lot of people, they are about to get a rude shock when they try to apply for any future credit such as mortgages or car loans since several banks have indicated that they will no longer consider those people for this type of lending regardless of whether the PDL was paid on time or not.

Potentially, from a few months ago, anyone who took out a PDL for whatever purpose could find themselves utterly disqualified from getting a mortgage in the future, or at least facing seriously inflated APRs.

This is how banks are obviously planning to side-step the governments 'requests' to loosen the purse strings and start lending the money they were given by the tax payer for that purpose.

Brains64

FireWyrm wrote: »

Previous PDLs arnt the problem. The new and emerging issue as of the last few months is that many (if not all) PDLs are reporting to the credit reference agencies, something that didnt routinely happen before. Unfortunately, for a lot of people, they are about to get a rude shock when they try to apply for any future credit such as mortgages or car loans since several banks have indicated that they will no longer consider those people for this type of lending regardless of whether the PDL was paid on time or not.

Potentially, from a few months ago, anyone who took out a PDL for whatever purpose could find themselves utterly disqualified from getting a mortgage in the future, or at least facing seriously inflated APRs.

This is how banks are obviously planning to side-step the governments 'requests' to loosen the purse strings and start lending the money they were given by the tax payer for that purpose.

Yep, I'm afraid you're right, this is exactly how banks see it and actually have done increasingly for a few years now, basically, they have this totally absurd and paradoxical stance where they only want to give a mortgage or a loan to someone whom can show them that he or she doesn't...uh...need one, madness I know:rotfl:, it just defeats the whole object yet this is how own goal shooting and out of step many high street banks are, look at all the mis-selling scandals and the money and time banks are losing through overloads of compensation claims, all that could have been avoided if there was any brain cells running banks, there clearly isn't, even many of these PDL companies, bad as they are have more of a grip on reality than banks.

DevCoder

No, they want to give their money (for example mortgages) to people who stand a good chance of repaying that money. PDL's show a financial instability and is not a good sign (although PDL's paid on time and more than 2 years old should have minimal effect).

By stabilising their bad debt provisions and their liquidity ratios the bank can then look towards lending to more businesses etc (albeit with a far stricter criteria than that which caused the meltdown in 2008).

Don't forget customers as well as banks were to blame.

keithrgj

getting a payday loan now is a real bad idea

banks have stated that anybody who has applied for a payday loan, even if the terms of that agreement are complied with, then the bank will still decline the loan

remember people

most credit applications are credit scored by automatic processes now by computer

KingElvis

Payday loans on your credit history are like a turd in a box for Christmas.....

Archer0710

Sorry to take this off topic a bit but just to clarify...

Is there a time limit for this or are banks saying that's it full stop?

For example if a person takes a PDL loan today then they are disqualified for a mortgage in say 5 yrs whatever circumstances they are in then?
If so that's one hell of a kick in the teeth.

BugsyBrowne

Archer0710 wrote: »

Sorry to take this off topic a bit but just to clarify...

Is there a time limit for this or are banks saying that's it full stop?

For example if a person takes a PDL loan today then they are disqualified for a mortgage in say 5 yrs whatever circumstances they are in then?
If so that's one hell of a kick in the teeth.

I suppose its no different applying for jobs and having past convictions.