Will Payday Loan search on my credit file impact mortgage application?

JSco

Hi,

I'm applying for a new mortgage in a few months and I've registered on checkmyfile and experian. All fine on Experian but on checkmyfile Callcredit are reporting that MEM Financial Services did a credit check on me in 2014, a quick search has brought them up as being a payday loan provider. The details provided indicate that my previous address (moved 2006) and maiden surname (changed name 2007) were searched against. I've never had or applied for a payday loan so can only assume that someone has tried to apply for one fraudulently using my old details, there's nothing on the file indicating that a PDL loan has been taken out in my name but can a search from a PDL company 18 months ago cause me any problems? If so is there anything I can do about it?

There are also a couple of checks from Bank of Scotland (my current account and credit card provider) from last year although I haven't applied for any new products or increase in limits etc for years. There's also a check from Lloyds bank, I do have a credit card with them but the check is from around 6 months before I applied so that doesn't make sense. Does anyone know how accurate Callcredits data is? Can a company I bank with randomly do a check on me even if I'm not applying for more credit? I work for Lloyds (since 2001) can they check up on my credit status without informing me/getting permission?

Last question! Under linked addresses there are notes that some of the companies I have/had credit with were confirming links with the address I moved from in 2006 as recent as 2011 - what's that about?

Responses gratefully recieved!

Tino2385

Hi,

I thought i'd give you my experience of the last 2 weeks of mental stress and worry regarding credit/payday loans.

Just to let you know in the end based on everything it comes down to your LTV (deposit), income and expenditure more than anything else... and from what I've learnt speaking to people every lender has different criteria, obviously CCJ's, default,bankruptcy will have a big impact with anyone.

Ok so i also checked my credit file (Equifax) which (since 2011) has been great no missed payments, finance taken and paid off, credit cards paid on date and not maxed out.

However I do have payday loans in my history, the most recent been January 2016(I know of my stupidity using these I simply over egged myself by attempting to pay larger amount of my credit card off as well as a holiday).

We went through a DIP and were advised we can borrow 290k... we're only after 195 so it's way under what they can offer.

I've been concerned about the payday loans so i asked my broker who was concerned at first but advised since my hard credit check passed, we were offered a DIP (joint application) and the lender has only asked for 1 month statements he advised me not to worry at all.

I also asked someone who worked within the same business as the lender and the criteria was that payday loans would no stop a mortgage but may affect the amount you can borrow.

In my opinion I would register with Equifax (more popular with lenders) you get 30 days free, you don't get your score however you do get a full financial report... also anything before 2011 shouldn't affect you so don't worry about that.

In think overall with your credit history it sounds like your in a better position than me and i have been sick with worry. I do have my application to go through next week so I'll let you know how that goes.

Also as your not planning on applying for a few months, do yourself a favor.

Definitely get yourself a broker and fork out the £300ish it might cost.

Don't apply for any credit/increases.

If you have a number of credit cards and can afford to pay off/cancel 1 or 2 do that. Some people say that if you have 1/2 and your comfortable with them just keep them so they keep your score up.

Also to save time pay things in cash rather than card... statements are now gone through with a fine tooth-comb and you may be asked about a lot of them.

Also no company should be doing checks without your consent, if any checks show up on your history that you were unaware of contact them and asked for it to be removed.

Dobbibill

JSco wrote: »

Hi,

I'm applying for a new mortgage in a few months and I've registered on checkmyfile and experian. All fine on Experian but on checkmyfile Callcredit are reporting that MEM Financial Services did a credit check on me in 2014, a quick search has brought them up as being a payday loan provider. The details provided indicate that my previous address (moved 2006) and maiden surname (changed name 2007) were searched against. I've never had or applied for a payday loan so can only assume that someone has tried to apply for one fraudulently using my old details, there's nothing on the file indicating that a PDL loan has been taken out in my name but can a search from a PDL company 18 months ago cause me any problems? If so is there anything I can do about it?

Get a good broker, although the further back in your history that they are, the less impact they have.

There are also a couple of checks from Bank of Scotland (my current account and credit card provider) from last year although I haven't applied for any new products or increase in limits etc for years. There's also a check from Lloyds bank, I do have a credit card with them but the check is from around 6 months before I applied so that doesn't make sense. Does anyone know how accurate Callcredits data is? Can a company I bank with randomly do a check on me even if I'm not applying for more credit? I work for Lloyds (since 2001) can they check up on my credit status without informing me/getting permission?

Yes, companies do search your CR regularly if you hold a product with them, it helps them determine whether to increase/decrease the amount of borrowing you have with them.

Here's some information from Lloyds website about data privacy that I found here.

If a Lloyds Banking Group company needs to make a credit decision when you apply for a credit-based product or service (e.g. mortgage, personal loan, credit card, or current account) or to review the amount of credit it provides under an existing agreement, such as an overdraft, your records will be searched, along with those of anyone who is financially associated with you such as your spouse or partner. The CRA will keep a record of this search and place a "footprint" on your credit file, whether or not the application proceeds.

HTH

mwarby

As I understand it only you can see the names of companies who search, a lender would only see the date and type (and they don't see all types). If there is no payday loan account shown it maybe a complete none issue

DCFC79

Maybe look at getting the search from MEM removed.

GingerBob_3

mwarby wrote: »

As I understand it only you can see the names of companies who search, a lender would only see the date and type (and they don't see all types). If there is no payday loan account shown it maybe a complete none issue

Yes, but conveniently the CRAs mark payday loan searches as such. I think they may be classed as short term borrowing or something like that. Anyway, it's pretty clear to a potential provider that you've at least enquired about a payday loan. You've got to hand it to the CRAs, they've got everything covered.

GingerBob_3

Can a company I bank with randomly do a check on me even if I'm not applying for more credit? I work for Lloyds (since 2001) can they check up on my credit status without informing me/getting permission?

Yes, any company with which you have, or have had, any sort of relationship whatsoever, and many other companies/organisations as well, can rummage around in the CRA data files about you, with, or without your consent.

Tino2385

dfub wrote: »

I'm interested in this line, wouldn't be easier to pay by card as the company name will be listed rather than explaining where cash withdrawals have gone to?
I'm not saying you're wrong, just genuinely interested!

That's what I thought to be honest, but I spoke to another couple who had to print out 3 months worth and they reduced their spending and just paid the majority of things by cash and not one cash withdrawal was questioned. Saying that we have now gone through our application and we were not questioned about any of our transactions. So maybe it's not as looked into as closely as I thought :beer:

JSco

Thanks all for the replies. We've got a good mortgage broker who is doing a good job, I was just a bit thrown by the search showing up on my file when it's nothing to do with me. I will ask Callcredit to remove it however everything is fine in Equifax and Experian so I'm not overly worried now that I've checked them.

I'm not sure how reliable Callcredit's information is, they are the only one of the three showing a financial connection for me with an ex whom I had a mortgage with which was settled in 2002. They also don't seem to have a full picture of my credit history. I know that they're a newer agency though and most lenders use the other two so I'm not concerned, just find it a bit odd.

GingerBob_3

Remember that once you've been targeted with a financial association it NEVER goes away, even if you don't have joint financial products with anyone and the association no longer exists. The only way you can neutralise it is to plead with the scoundrels at the CRAs to remove it. If you don't do so, they'll continue to publish details about you as though the association was still valid. Put another way, the CRAs publish lies about people.