payday loans

l8onjones

I have payday loans on my credit report that were paid on time, and have a good credit report will that affect my chances of getting a mortgage or will it have a positive effect?

ACG

Depends on the lender,
Some will decline outright,
Some will decline if within the last 12 months,
Some will not mind and it will just form part of your credit report.

Check with the lender what their stance is before applying or consult a broker.

l8onjones

Would I need to contact each individual lender? most are now going to be over 12 months too

dimbo61

Using a broker might be a good idea
Payday loans and applying for a mortgage may cause you problems so rather than having credit searches and mortgage refusal why not use a broker?

Gaz83

OP also posted this in the "Credit File & Ratings" section. Here's my response:

It won't help with many lenders, because - regardless if you've settled them - it shows a lack of ability to budget responsibly. The very nature of payday loans means you're running out of money at the end of the month.

That said, it depends on how many you have. One payday loan a couple of years ago might not matter too much. A pattern of several (or more) over the past couple of years won't look attractive to a lender.

Thrugelmir

l8onjones wrote: »

I have payday loans on my credit report that were paid on time, and have a good credit report will that affect my chances of getting a mortgage or will it have a positive effect?

PDL won't have a positive impact let's put it that way.

Lenders appraise you based on the data on your credit file over the past 6 years. Any score you may think you have is meanlingless.