PayPal Credit

T-G-C

glentoran99 wrote: »

How do they know about payday loan then?

Unsecured Loan

Some lenders who are known as payday companies have started to report some loans, depending on the amount and agreement length, as an unsecured loan. This is viewed differently to the credit type I will explain below. Most lenders, when they see the amount and repayment frequency, will be able to determine if it is someone like Satsuma Loans or MyJar (who are essentially payday lenders) vs. loans like 118 118 or equivalent which are more long-term and therefore not viewed as negatively. This is viewed differently on a per lender basis and the more mainstream a lender, the more strict they are.

Advance Against Income

This is the type of account that Wonga report, amongst other high interest & short-term lenders. The borrower is expected is pay the full amount, inc. interest on their next salary date, therefore this is considered a cash advance essentially rather than a loan, which some lenders, mainly mainstream like mortgages, view very negatively, as it demonstrates financial stress and/or poor financial management in some cases. Wonga also have a MODA agreement with Callcredit, which means upon approval, your payday loan is instantly recorded on your credit file to all lenders, whereas most other credit accounts would take around a month or sometimes more to appear. MODA is an attempt to prevent people from taking out multiple payday loans consecutively and ensure other creditors can make an accurate assessment of your affordability. In my opinion this is one of the worst types of accounts to have on your credit file, as it instantly spells RISK to any lender.

PaulW922

Paypal shows up as a normal revolving credit type of loan on your credit file - so yes it does affect the assessment that lenders make of your credit data and if you manage the account properly, it should be a positive impact. If you missed a payment by a day or so but then put it right quickly you are probably ok. It probably won't show - but you will only know when the account next updates at the CRAs.

cwmanagement0

Hi,
 I upgraded my bank account with barclays and they moved my D/D's over for me! ive checked my credit profile and have 2 missed payments for paypal credit, i rang paypal and they told me the D/D was not inplace! then the advisor asked me if i had changed my Bank Acc lately? He alerted me to this being a regular occurance with Uswitch-Barclays system. he told me to report to transunion to have the missed payment markers removed, however they have not replied to my emails. Has anybody come across this or any advice on how i can get the markers removed!

D3xt3r5L4b

cwmanagement0 said:

Hi,
 I upgraded my bank account with barclays and they moved my D/D's over for me! ive checked my credit profile and have 2 missed payments for paypal credit, i rang paypal and they told me the D/D was not inplace! then the advisor asked me if i had changed my Bank Acc lately? He alerted me to this being a regular occurance with Uswitch-Barclays system. he told me to report to transunion to have the missed payment markers removed, however they have not replied to my emails. Has anybody come across this or any advice on how i can get the markers removed!

CRA’s can only amend/remove markers etc. when the lender contacts them and tells them to, not the person.