experian suggesting to take payday loan..!

newbridge

Had been talking to a colleague last week at work in relation to him not being able to get any loans. Shocking from what i heard from him..

Apparently he had requested a credit score from experian (940ish) and called them up on phone to see if they had any suggestions on why he wasn't getting loan even with good credit history. The guy at the other end says:

"These days banks have become too tight on giving loans and would only give loan to person who has a record of a previous loan. So I would suggest you take a small loan (approx £200) for a month and pay off with a small(!) interest of £15 after a month. I will recommend a bank/company if you want to go ahead."

My colleague believed him, think the company who keeps all the credit records must be genuine and nothing to worry about. But this rings bells to me..What do you guys say?

The_Boss

Did they specifically say a payday loan/lender? Sounds like this could be a recommendation for a normal loan.

newbridge

yes you could be right, he didn't probably use the payday loan word. I assumed seeing the high interest rate and paying off at the end of the month thing. Does that really work? I think borrowing small amount of money for short term looks bad on your credit history

The_Boss

newbridge wrote: »

yes you could be right, he didn't probably use the payday loan word. I assumed seeing the high interest rate and paying off at the end of the month thing. Does that really work? I think borrowing small amount of money for short term looks bad on your credit history

If the loan was over a year that would help. A year's worth of data. Or could settle it a few months early.

Experian_company_representative

Or a credit builder-type credit card. Lots of advice on strengthening your credit report in Martin's credit rating guide.

James