Wonga loans

kteara

How much deposit do you have in cash?

Tixy

GingerBob wrote: »

I just read the stuff from Experian. I wonder if Experian categorise payday lenders differently from banks and the like? Other potential lenders don't see the identity of reporting lenders (so we are led to believe) so how do they know you've borrowed from a payday lender. Maybe they assume it based on loan term? Maybe this is why, as some posters have reported, when applying for a mortgage you now have to furnish your own copy of the credit report.

The account type is generally recorded as something like 'advance against income' rather than 'term loan'. So its obvious that they are payday loans to any potential lender who performs a search. Even if some report as a loan the fact that it is a 1 month loan still makes it very clear that it is a payday loan.

Ape100

I'd just stay clear from them but i see how you were in a bad situation

[Deleted User]

Perhaps it really depends on how it shows on your report? as others suggest

I borrowed from a not to dis-similar lender recently because (bit different in that I really had nothing to lose) and interestingly it doesn't show as payday advance or the like - it actually shows as 'personal loan' only because there is that argument are Wonga a payday lender or it is short term? so it will be interesting to see how that pans out, and I don't know if there has been a change in recent times?

In 2009 large player of the payday loans that I paid (I was never a rollover customer either!) no longer present on my report - and we're not at 6 years......

So really interesting enlightning topic thanks

Rrushi_Shqiptar

Experians take on Pay Day loans.

*Payday loan accounts

Currently, your Experian credit report includes Pay Day Loan data. This impacts your Experian Credit Score in the same manner as any other credit account. A number of different factors impact the score that you see, including the number of accounts taken out over any given period, the maturity of accounts held and how well you are managing the accounts. Therefore, a well-managed Pay Day Loan account can show that you are a responsible borrower and have an overall positive impact on your score. That said, a high number of new accounts, a poor repayment record or increased credit balances can also cause your Experian Credit Score to drop.

Your Experian credit score is a reflection of how an average lender might assess your credit report, but is not shared directly with lenders. Each lender interprets your credit history in a different way and calculates a credit score for you using a variety of internal and external data. Pay Day Loan data is still relatively new; some lenders don?t use it at all, some treat it in the same way as all other loan data. Some lenders may decide to use Pay Day Loan data as an indicator of financial difficulty, particularly if customers are regularly using this type of credit. Each company makes this type of decision based on industry/company specific trends and their own lending criteria.

matttye

gh4662 wrote: »

And before anyone asks why I didn't approach my bank, Wonga could transfer the money at 5pm on a Saturday, my bank was shut.

No online banking? Banks can offer/extend overdrafts instantly online and the money is available immediately. Not dissimilar to Wonga!

GingerBob_3

Seems there's no consensus on whether or not Wonga loans adversely affect your credit rating, so I wonder about credit unions and other sources of finance for those shunned by the banks. Do they count against you?

GingerFurball_2

gh4662 wrote: »

And before anyone asks why I didn't approach my bank, Wonga could transfer the money at 5pm on a Saturday, my bank was shut.

Was phoning your bank and asking for an overdraft not an option?