Payday Loan and interest

bsms1147

jondavis30 wrote: »

I don't see how this is true.

I borrowed £350 for 5 days, which enabled me to purchase something that was only available on the day. The month after, my Experian credit rating went up, nothing had changed, other than the fact that I've recently had 4 credit searches for various things; new bank account, new credit card account (just for emergencies) and that all my existing lines of open credit have been closed.

Payday loans do not have a negative impact on your credit score, in fact, lenders are not privy to what loans you've had in the past, they are only privy to your credit score. They rely on you being forthcoming with amounts when they're going to lend you money, and sometime ask for proof.

So no, if they're paid off in time, Payday loans don't have any impact on your credit score / credit history.

This is all correct





...IN OPPOSITE LAND

27yearoldmale

Noddle now have a report section for short term loans.

In all serious the CRA's have done amazing well from their 'credit score' marketing over the years. I remember when I turned 18 my score was 999! 999 out of 999! I didn't even have a penny of credit!

If I was a lender ie a Bank - why would I be interested in what experian says? Experian simply collects and reports data.

Banks/Lenders have internal scores for current customers and use a combination of information from the CRA's to make a decision.

It must be boring for regular users to see the same old credit score nonsense.

Lips_and_Lashes

Ask for an up to date balance and full break down of the debt. They can only charge you the original amount borrowed and interest agreed plus one reasonable late fee. Start emailing/writing to them so you have a paper trail of everything rather than calling them/answering their calls. I'd recommend visiting the Consumer Action Group for advice and to read on how people have dealt with this particular company before.

Take a little while to find out who the company are authorised and regulated by, probably the Financial Conduct Authority (FCA) as they sound like they are breaking their guidelines. Also think about a formal complaint and escalating it to the Onbusman.

More importantly, don't be bullied and pressured by these 'sharks'. You are more than willingly to repay the debt - the debt you actually owe, not the unlawful interest and penalty charges. Don't be cash cowed.

Good luck!

forgotmyname

jondavis30 wrote: »

I don't see how this is true.

I borrowed £350 for 5 days, which enabled me to purchase something that was only available on the day. The month after, my Experian credit rating went up, nothing had changed, other than the fact that I've recently had 4 credit searches for various things; new bank account, new credit card account (just for emergencies) and that all my existing lines of open credit have been closed.

Payday loans do not have a negative impact on your credit score, in fact, lenders are not privy to what loans you've had in the past, they are only privy to your credit score. They rely on you being forthcoming with amounts when they're going to lend you money, and sometime ask for proof.

So no, if they're paid off in time, Payday loans don't have any impact on your credit score / credit history.

As mentioned so wrong.. So when you applied to Eperian for a loan did they accept you?
No because they dont do that and the companies that will dont see the score that experian give you.

They have their own systems and they wont tell you all the details to stop people manipulating their system.