Refused Tesco personal loan due to having a payday loan on my bank statement

lesley76

Hi all,

I am looking to consolidate some credit cards and an existing loan. I applied for a personal loan with Tesco which was approved in principle. However, when I sent my bank statement to them they declined on the basis that I had taken out a small payday loan. Do all personal loan lenders refuse if a payday loan is included on your bank statement?

Thanks

Treadmill

In my experience yes, I have been declined loans and credit cards for this reason.

lesley76

Thanks for your quick reply. I thought that would probably be the case.

Treadmill

Recently I have used a separate account for PDLs from the one my wages get paid into so should I need to provide statements as I have one recently, they won't show.

Ideally not using PDLs is the best course of action though.

OneLife_OneShot

I have an account for paying DD's and an old PDL but it will be shut soon, they can still check credit reports though.

ihateyes

lesley76 wrote: »

Hi all,

I am looking to consolidate some credit cards and an existing loan. I applied for a personal loan with Tesco which was approved in principle. However, when I sent my bank statement to them they declined on the basis that I had taken out a small payday loan. Do all personal loan lenders refuse if a payday loan is included on your bank statement?

Thanks

Creditors see using PDL's as you not being able to afford what you now have on your given wage,,,,

However

I see an overdraft the same as a PDL. but creditors are happy with od's

DCFC79

lesley76 wrote: »

Hi all,

I am looking to consolidate some credit cards and an existing loan. I applied for a personal loan with Tesco which was approved in principle. However, when I sent my bank statement to them they declined on the basis that I had taken out a small payday loan. Do all personal loan lenders refuse if a payday loan is included on your bank statement?

Thanks

Look at paying the card with the most % first and pay the min to the others. Consolidation rarely works as A you pay the cards off then use the cards again or B you use said loan on gadgets, clothes etc and still endup with the cards to pay off and stuff you bought with the loan. Not saying you will do any of that and im sure you had every intention of paying the cards off with the loan but people have done it in the past.

BugsyBrowne

Treadmill wrote: »

Recently I have used a separate account for PDLs from the one my wages get paid into so should I need to provide statements as I have one recently, they won't show.

Ideally not using PDLs is the best course of action though.

But surely you using a different bank for statements wouldn't make any difference as manual intervention will see PDL's scattered on your credit files.

I'm also pretty sure PDL's flag up now when lenders score your application.

Apples2

Treadmill wrote: »

Recently I have used a separate account for PDLs from the one my wages get paid into so should I need to provide statements as I have one recently, they won't show.

Surely the entire system you have in place is specifically to take out PDL's and not repay them (to protect your real money when you don't repay)?

Treadmill wrote: »

Ideally not using PDLs is the best course of action though.

Can't argue with that.

Gordon_Hose

ihateyes wrote: »

Creditors see using PDL's as you not being able to afford what you now have on your given wage,,,,

However

I see an overdraft the same as a PDL. but creditors are happy with od's

If you can get an OD, generally most people would. When your bank won't give you an OD, and you resort to using PDL's, then there's something wrong with your relationship with the bank somewhere. That right there would be a huge warning sign to most lenders.

[Deleted User]

Does a PDL stay on your Credit File forever?