Payday loan affect on your credit file help !!

in Credit File & Ratings
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  • Marga09 wrote: »
    Paying your payday loan on time and in full tells that you are a responsible borrower that's why it can't affect your credit file.

    What a load of rubbish.

    Having a payday loan on your credit history is a red flag to proper lenders as it shows that you are unable to budget properly and are living on the edge financially.
  • Marga09 wrote: »
    It will not affect your credit file if you repay the payday loan on time and in full then any effect on your credit rating could be positive. Repaying a payday loan on time and in full should therefore strengthen your case, because many payday and other short-term loan providers are now sharing customer records with Experian. Paying your payday loan on time and in full tells that you are a responsible borrower that's why it can't affect your credit file.

    Well I had settled loans help towards a DRO (it's that serious) so be careful on your thinking, 'jury still out for me' I'm afraid and I'm all in favour of record sharing however late it has come between the PDL's as a help measure, but you can bet the borrowers won't be!!! :D
  • edited 28 September 2013 at 11:37AM
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    edited 28 September 2013 at 11:37AM
    Marga09 wrote: »
    It will not affect your credit file if you repay the payday loan on time and in full then any effect on your credit rating could be positive. Repaying a payday loan on time and in full should therefore strengthen your case, because many payday and other short-term loan providers are now sharing customer records with Experian. Paying your payday loan on time and in full tells that you are a responsible borrower that's why it can't affect your credit file.

    Then theres the other aspect which is why did you go for a payday loan, why can't you budget accordingly ? The high street banks want to know the monthly payments can be made and having pay day loans may well affect ones chances of getting the loan, if you cant budget without the loan then will you budget ( and resort to the pdl's )when you have the loan.
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