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Payday loans on credit file
Legacy_user
Posts: 0 Newbie
How damaging is it to have payday loans on your credit file when applying for FTB mortgage? Always paid in full and on time but still worried. Over a year ago. Thanks
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Not good - what Loan to Value ?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Well it depends on the sale of my mothers house, could be anything from 10-25% depending in what we need, she will give us. I was told as long as i paid on time it would have a positive effect on my file, i guess i was foolish!This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Payday loans look like desperation which then indicates poor financial management (in the eyes of the lender).
Why did you take them? Were you desperate or did you think they would improve your credit rating?
If the latter do you have any credit issues?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Not so much foolish- as lied to (or advised by 'someone in the pub').
There are some lenders who will not lend if they see any history of 'stress lending' within say 2yrs. If you were using these 'to improve your credit' then I assume you don't have much normal credit history, which may in turn also be a problem (particularly at the higher end of LTV).
I suggest you avoid trawling round lenders on the off chance (the last thing you want is a batch of searches on your file) - take your credit reports to a broker and let them advise you on best placement.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Halifax didn't even blink and neither did Santander, I had myn for cashback dealDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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I didn't have much credit beforehand so it was to get my score up, yes - if you see my file i had a succession of them just to show i was making payments, they were only for £50/£100 a time. I really regret it now but it was before all the bad publicity that payday loans have had lately and now I know far better. Silly me.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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