Cashplus iadvance and credit reporting

charlie.kelly

Does anybody with one of these cards know if they report iadvance as a payday loan?

I am aware now that Experian specifically records payday loans these days, which is not something any of us want on our credit file.

However I am not sure how Cashplus/Experian will report/record this product. It is effectively a payday loan but I am not sure if it will be recorded as such.

TheGardener

Hi - I'm not familiar with this product but with a representative 9,465% APR :eek::eek::eek: (according to their website) I think I would steer clear of using them anyway. If as you say they are effectively PDL's then I would think the CRA's would report them as such.

charlie.kelly

Hi Gardner. They are actually a pre-pay credit card believe it or not.

The iadvance is one of the things they have offered after I have only had the card for a couple of weeks. I have only obtained the card to help with rebuilding my credit rating. If the iadvance is reported as an ordinary loan, then it might be worth using now and again to help with the rebuild. However if it is reported as a PDL then I will be steering well clear.

TheGardener

I see what you mean - I'm not sure how that would work - with that kind of APR and very short term nature of the loan it may well be a wolf in sheeps clothing - I would be very wary. Good old phone contracts and vanquis style cards might be a better bet? I have never understood how a pre-pay can improve a credit rating though? Surely if its prepaid - there is no loan involved? Or am I being a bit dim..:o

charlie.kelly

Some prepay cards charge an annual fee Gardner. In the case of Cashplus, it's £60 which is charged at £5 per month. It's then reported to the credit agencies after you have made 3 payments.

I am keen to try this iadvance if it is reported as an ordinary loan but need confirmation of that first.

Oh and for the record, I have a Vanquis card and a contract mobile. I tried to change networks today but got declined by Vodafone. Not easily deterred I called Orange and told them of the deal that I had seen and threatened to cancel. Thanks to being with them for 10 years, I have managed to get unlimited minutes, texts and doubled by data plan and got a top of the range (HTC One!) for £1 less than I am paying at the moment. I'll maybe try a different network at renewal.

Just trying to do all I can to rebuild by rating.

TheGardener

Well done! I have just called oranges bluff too - as a virgin cable telephone and internet customer, I got a load of bumff about their mobiles and they were good deals. I checked if I would be CR'ed (of course I would be but it was worth a shot) but then went back to orange and quoted the virgin deal. Got a new S4 for £20 and loyalty 10% discount on the contract. However, I have never missed a payment or owed Orange a penny in 9 years (despite going BR I never missed payment to anyone!)

charlie.kelly

Think that trumps my deal Gardner! What are you getting mins/texts/data for that, just out of interest?

TheGardener

1000mins, unlim text and 1GB data and to be fair, I will be paying £4 more a month but my last phone was coming up to 5 years old and was only held together by the rubber bump cover and this new one will have to last as least as long as the IPA. I could never have afforded a new phone (nor should I really under the circumstances) but I gave it my best shot with the sales chap. I never use the shops, I have always got a better deal by phoning them.

Does having a savings account improve a CR? I am only saving in so much as paying for annual bills like insurance that I cant get instalments for as obviously there isn't enough spare to truly save.

dojoman

At the end of the day, while BR is still on your file your CR means squat.

dojoman

TheGardener wrote: »

I see what you mean - I'm not sure how that would work - with that kind of APR and very short term nature of the loan it may well be a wolf in sheeps clothing - I would be very wary. Good old phone contracts and vanquis style cards might be a better bet? I have never understood how a pre-pay can improve a credit rating though? Surely if its prepaid - there is no loan involved? Or am I being a bit dim..:o

What APR? I think you are confusing this with something else? Below is taken from the website,

How Creditbuilder works

Advanced Payment Solutions Ltd (APS) lends you a full year’s-worth of monthly fees in advance, interest-free. The loan is paid to Advanced Payment Solutions Financial Limited (AFL), so no money changes hands and it’s never available to spend
Just repay the loan with 12 small monthly installments and we’ll pass on your payment history to the credit reference agencies
Make all your monthly payments on time and you’ll have shown that you can manage credit responsibly.

How much does Creditbuilder cost?
Nothing! Creditbuilder can be added to your Cashplus Account at no extra cost. You pay NO interest on the loan and there are NO admin charges – you just pay the usual monthly fee for 12 months.

TheGardener

Thanks - but I think the OP was asking about iadvance and cashplus - not creditbuilder? The OP wanted to know if the iadvance was reported to the CRA's as a payday loan.

The website for iadvance and cashplus says "Representative example: Amount of credit £68 for 11 days, Total amount payable £79, Interest £11, Interest rate: 730% pa fixed, Representative 9,465% APR "