Payday loan history - effect on credit file

pinkcocktail82

Hi, I am in the process of rebuilding my credit file doing all that is advised, budgeting well and using my Barclaycard initial carefully. Until I understood the importance of all this, I, in the past had regular payday loans. Lots of them. Nothing is outstanding / owed, however I'm concerned that this will effect my score for years to come. I haven't had a payday loan for well over a year. Any advice or comments are appreciated. Thanks.

[Deleted User]

Ignore your score. It's fictional.

Lenders generally look poorly on PDLs. But it very much depends on what you are applying for and to who.

DCFC79

The longer you leave it the better it will be with getting credit.

Thrugelmir

pinkcocktail82 wrote: »

however I'm concerned that this will effect my score for years to come.

Only time can ultimately heal. As your credit file is a reflection of how you manage your personal affairs. Apply for credit sparingly, i.e. when there's a major purchase that you cannot afford to buy outright. Lending to budget with hard cash that's in your pocket should be your objective.

Fireflyaway

I was the same. I sought advice from a mortgage broker who said it doesn't look good to lenders to have payday loans on file. More recent the worse its viewed. She said over a year should be viewed better.
I'm planning to always have spare money in my account and set up regular savings. Its not all about scores but affordability and how you would handle an interest rise etc. Payday loans show you were not prepared.

pinkcocktail82

That's really useful thanks everyone. I'm not planning to take out any credit for quite a while. I'll give it time to heal.

pinkcocktail82

I have also been paying my rent via credit ladder, so I'm awaiting for 6 months of that payment history to be loaded onto my Experian report. Apparently it'll be available to view end of this year according to Experian??