Payday loan & mortgage application

bje89

I need some advice and not sure who to ask. I havetaken out numerous pay day loans over the past year with 4 different companiesresulting in having to enter into a repayment plan with wonga. I have 15settled accounts showing up on my credit report and 4 which I am about to payoff this month so at the end of this month I will not have any pay day loansleft and will never take one out again. I have got into this position as Ishould never have taken one out in the first place as have not been able to paythem off with my wages and still have enough money to live off. I have nowmanaged to save enough money to sort this out and have some money saved with mypartner to purchase our first home however I am now concerned that I will notgot a mortgage because of these settled pay day loans showing on my file, isthere any way I can have these accounts removed as I feel lenders will lookbadly on these loans as I had a period of bad money management which I am nowout of. My credit rating showing on Experian is fair, is there anything I cando to improve this as I really want to take out a mortgage as together thiswould be cheaper than the rent we pay and I have never missed any rentpayments.

nottoolate

them being there is to let lenders see your borrowign and repayment history over the last 6 years. cant just have them removed because you dont think that history looks good. sorry

DCFC79

bje89 wrote: »

I need some advice and not sure who to ask. I havetaken out numerous pay day loans over the past year with 4 different companiesresulting in having to enter into a repayment plan with wonga. I have 15settled accounts showing up on my credit report and 4 which I am about to payoff this month so at the end of this month I will not have any pay day loansleft and will never take one out again. I have got into this position as Ishould never have taken one out in the first place as have not been able to paythem off with my wages and still have enough money to live off. I have nowmanaged to save enough money to sort this out and have some money saved with mypartner to purchase our first home however I am now concerned that I will notgot a mortgage because of these settled pay day loans showing on my file, isthere any way I can have these accounts removed as I feel lenders will lookbadly on these loans as I had a period of bad money management which I am nowout of. My credit rating showing on Experian is fair, is there anything I cando to improve this as I really want to take out a mortgage as together thiswould be cheaper than the rent we pay and I have never missed any rentpayments.

Yes you may be past the period of bad money management but it still happened and they will stay on your credit file as its a true representation of how you managed your finances. You can run your account properly, only spend what you can realistically afford.

bje89

I understand why they are there but from two of the companies I was told they would not show up on my credit report but each time the loan has been deferred is now showing up as a seperate loan. Do you think this will affect my chances of getting a mortgage?

nottoolate

roll over counts as a new loan i think, so that would be right

DCFC79

bje89 wrote: »

I understand why they are there but from two of the companies I was told they would not show up on my credit report but each time the loan has been deferred is now showing up as a seperate loan. Do you think this will affect my chances of getting a mortgage?

It depends, maybe not all lenders will have the same view of pay day loans, you would be better off asking mortgage companies/banks that question yourself.

bje89

thanks your responses.. has anyone had experience of getting a mortgage with recently settled pay day loans on their file?

nottoolate

http://www.experian.co.uk/consumer/questions/askjames246.html

bje89

thanks I have read that thread already and is one thing that concerned me as this part "Saying that, some lenders might see the fact that you’ve taken out a payday loan as a sign that your finances are under pressure"... I was financially under pressue and this is apparent

tinkerbell28

Exactly, which is why they won't be removed. It is an accurate representation.

Mortgage lenders, or lenders for loans, cc's, etc. Will take into the fact, very recently you had financial pressure and had to resort to payday loans.

It makes it look risky. That can't be changed as it happened. The exact reason credit files exist, is so mortgage lenders and others can see the data and make a decision, before lending you a LOT of money on how you hold up your finances.

If you have been under financial pressure recently, yes they will probably say no. As it is a big risk to them. But it is accurate data, so nothing you can do.

The_Boss

The payday loans look bad enough...but an arrangement to pay too...jeez. No way you can just remove what you fancy - what would be the point of these files if anyone could just doctor them rather than forewarn other lenders that a person presents a massive default risk.

Perhaps you should apply in your partners name using your contribution to the deposit, although this is really down to how committed you both are. I did this with an ex 9 years ago and was totally screwed over when we broke up, so it's not the best of ideas without a formal agreement that the money to him is a loan.