Small Wonga Loan

david_28

The least bad of my options in about a week might be a small (£50 seems to be the minimum) Wonga loan for a few days. I know it is not ideal, I'm here to ask if a loan this small, paid on time as a one off will have any significant effect on my credit rating? I'm considering applying for a consolidation loan and paying off my cards when my income increases soon and don't want to trash my credit rating which is currently reasonable if not great.

cajef

You were considering taking out a consolidation loan two years ago although you were unemployed, what has changed?

If you need to take out Wonga loans how do you think you will pay off a consolidation loan?

david_28

cajef wrote: »

You were considering taking out a consolidation loan two years ago although you were unemployed, what has changed?

If you need to take out Wonga loans how do you think you will pay off a consolidation loan?

Health issues interrupted my looking for work about a year and a half ago and I have just started looking for work and ways to be self-employed again after major surgery. Forget the consolidation loan for now, is it better to take out a small Wonga loan (I'd take it for just £20 if I could, but £50 seems to be the minimum) and pay it back after about 5 days or to miss a card payment?

DCFC79

Who knows how much an effect it will have on your rating, some lenders might not like pay day loans and some may be ok with them. Lenders will decide themselves whether to lend to you or not by using your credit history (lenders don't go by the score) and the information your provide on application.

leedslad5501

If you manage the loan correctly it should not effect your credit adversely in anyway, however ask if the loan is essential or can you manage some other way without it. Payday loans can soon spiral out of control due to the nature of the repayments

leedslad5501

You could call the card provider first and ask them for a payment holiday and explain your circumstances before taking the loan

david_28

The more I think about it I need to avoid Wonga even if it means selling something for a sickening price at CEX, have some games I never play anymore. Might not have much effect on my credit rating, but then lenders might look unfavourably upon it and it is on my file for 6 years. Not worth the chance.

Gaz83

leedslad5501 wrote: »

If you manage the loan correctly it should not effect your credit adversely in anyway, however ask if the loan is essential or can you manage some other way without it. Payday loans can soon spiral out of control due to the nature of the repayments

There's no such thing as a credit score.

Regardless of whether or not a payday loan is paid back on time, taking one out in the first place shows an inability to budget and sensibly manage money.

enjoyyourshoes

'Wonga loan' fantastic oxymoron

ReadingTim

enjoyyourshoes wrote: »

'Wonga loan' fantastic oxymoron

Errrrr...that's exactly what they do: they loan (i.e. lend) wonga (i.e. cash) to a punter (i.e. customer).

Do you mean adjective?

[Deleted User]

david_28 wrote: »

I'm here to ask if a loan this small, paid on time as a one off will have any significant effect on my credit rating? I'm considering applying for a consolidation loan and paying off my cards when my income increases soon and don't want to trash my credit rating which is currently reasonable if not great.

Yes absolutely. I want to say I'm wrong but I cannot. I only get by because my credit worthiness means nothing to me.

I recently been accepted to give feedback on the new type of loans and it's one thing I think the industry should work on, all the fear of the long term impact and stigma makes it not worth it for a few quid. A great shame.