Wonga Loans & credit score

Legacy_user

Hi there,

Around a year ago now I was in quite a poor situation financially, I was living out of an arranged overdraft and over the space of a few months took out around 10 Wonga loans. All of them were paid back completely on time and I never had any issues, and aside from this my credit rating is overall relatively good.

I am now in a much better position financially, with my overdraft completely paid off and a good stable income, and I havent touched a payday loan in a year.

At some point in the next 12 months I will be looking to try and get a mortgage, and I was wondering if my situation from a year ago would affect my chances with lenders?

Thanks,
Tom

Sparky111

Hey Tom, just today I got a reply today from experian, I asked how payday loans are categorized on their credit report as I previously had short term loans with satsuma and lending stream, both were listed as 'installment' loans. They stated that no payday loans are evident on my report although how a mortgage lender views short term lending is up to them. I am also looking to get a mortgage and all the advice I have been given is to get a good broker. The more historic the loans the better, although many lenders will decline anybody with a PDL on their report, but a broker will know who these are and who is most likely to accept an application.

System

Thanks for that, thats useful. Its quite confusing because some articles I've read are very doom and gloom and say there is no chance of a mortgage with multiple PDLs on my report, but some say that it is quite possible if they are relatively historical.

i feel that at this moment in time I would likely be rejected as the PDLs are from only just a year ago, but in 12 months from now when there is none on my record for 2 years I'm hoping I would have a better chance.