Do all payday loans show on credit file?

timetogrowup89

I took one out for 2 months in a row just over a year ago before I started being careful with my money..

It doesnt show anywhere on my credit file? Just wondering if all payday loans do show on credit file?

Thanks

mrcow

Not all history will show on all files.

You need to get all of your files for a complete picture.

The_Boss

There's a payday loan thread already on this board - you might find it better to add information to that.

rartherinv

Have a look on your callcredit/noddle, you might find searches on there (they all last 2 years over there).

I took out dozens of PDLs over a couple of years. I thought they were less formal and not showing anywhere as I had checked Equifax a few times and found no traces, but to my horror when I checked other CRA's they had ALL registered a search with callcredit every time I applied for a PDL (luckily most lenders do not use callcredit for application checks, although I have to check the MSE 'who really searches who?' thread to make sure when applying as any lender who does search callcredit will see every bogey I've picked and smell every fart I've made for the last 2 years).

Some of the bigger ones such as Wonga and Quickquid also register an occasional search with Experian, but not Equifax. (This is from my experience of being a PDL bum and not a general consensus of PDL bums.)

The only PDL 'account' that ever showed on my reports was Pounds to Pocket registering an 'Unsecured Loan' with Call Credit. I have heard that a defaulted account will appear on all 3 CRA's very quickly so that seems to be an exception to the rule.

To summarise this rambling, PDL co's will not register PDL accounts with CRA's but they may leave searches behind with callcredit and experian which can be detrimental for Mortgage applications and such like, where the lender will forensically analyse your report and run a mile if they see PDL history. If you are applying for a loan or card and just have a couple of these searches on file and therefore the amount of searches is not a flag for the credit scorer, you can probably squeeze through the scoring.

UsetheFORCE

rartherinv wrote: »

Have a look on your callcredit/noddle, you might find searches on there (they all last 2 years over there).

I took out dozens of PDLs over a couple of years. I thought they were less formal and not showing anywhere as I had checked Equifax a few times and found no traces, but to my horror when I checked other CRA's they had ALL registered a search with callcredit every time I applied for a PDL (luckily most lenders do not use callcredit for application checks, although I have to check the MSE 'who really searches who?' thread to make sure when applying as any lender who does search callcredit will see every bogey I've picked and smell every fart I've made for the last 2 years).

Some of the bigger ones such as Wonga and Quickquid also register an occasional search with Experian, but not Equifax. (This is from my experience of being a PDL bum and not a general consensus of PDL bums.)

The only PDL 'account' that ever showed on my reports was Pounds to Pocket registering an 'Unsecured Loan' with Call Credit. I have heard that a defaulted account will appear on all 3 CRA's very quickly so that seems to be an exception to the rule.

To summarise this rambling, PDL co's will not register PDL accounts with CRA's but they may leave searches behind with callcredit and experian which can be detrimental for Mortgage applications and such like, where the lender will forensically analyse your report and run a mile if they see PDL history. If you are applying for a loan or card and just have a couple of these searches on file and therefore the amount of searches is not a flag for the credit scorer, you can probably squeeze through the scoring.

Sorry but that first part of your last paragraph is wrong...

PDL's can and DO register your accounts at the CRA's...

Wonga report to both Experian and Callcredit...
NextCredit report to Callcredit...

Probably many more do, any that don't yet, I'm sure they will do very soon! I think a lot to do with 'responsible lending'...



As for the searches, you will have these all over your credit files..more often Callcredit and also Experian...

Dano1311

If a PDL registers the loan against your report, why would that be a bad thing? surely it will just be showing a fully paid account balance and paid on time?

matttye

Dano1311 wrote: »

If a PDL registers the loan against your report, why would that be a bad thing? surely it will just be showing a fully paid account balance and paid on time?

Think about the purpose of a payday loan; they're aimed at people who have spent all of their money for the month and need more before next payday. That usually indicates bad money management.

UsetheFORCE

matttye wrote: »

Think about the purpose of a payday loan; they're aimed at people who have spent all of their money for the month and need more before next payday. That usually indicates bad money management.

Indeed, a loan once might be overlooked but repeated use and I can see why lenders would become wary...

Dano1311

using that principle, would someone who uses a credit card every month and pays it off in full be seen in a bad light like someone who uses a payday loan every month?

matttye

Dano1311 wrote: »

using that principle, would someone who uses a credit card every month and pays it off in full be seen in a bad light like someone who uses a payday loan every month?

No, because a credit card is a continuous method of borrowing, i.e. you only have to apply for a credit card once, whereas you have to apply for a new payday loan each month. You also get charged a ridiculous rate of interest on payday loans and noone in their right mind would use it as some kind of credit rebuilding tool like they do a credit card.

Borrowing on a credit card and repaying each month is a widely accepted way of building creditworthiness and there are advantages to making purchases this way. Some people use credit cards for the section 75 protection alone.

MoneySaverLog

Dano1311 wrote: »

using that principle, would someone who uses a credit card every month and pays it off in full be seen in a bad light like someone who uses a payday loan every month?

Two different animals. One charges extortionate rates of interest. The other does not especially if its a 0% apr card or it's paid off in full each month