Payday loans damage your score

Samsung_Note2

Jmac88 wrote: »

It was 4 years ago, so would still be on my file. Previous to that I’d had finance for 3 cars from Renault, a credit card which I rarely used...
we used a broker and he told us it was specifically that. He also said that some lenders will never take you on post payday regardless of if it was over the 6 years or not

Id go see another Broker...lets put it another way.

Ive just remortgaged and borrowed 20k on top of the mortgage and i had pay day loans less than four years old and had 2 satisfied CCJ"s showing.

Halifax didnt bat an eye lid at them...so i would as the other poster suggested get your credit files with all three Agencies and have a proper look through them as a single or even a few hard searches wouldn't have such a huge impact.

kingstreet

Jmac88 wrote: »

It was 4 years ago, so would still be on my file. Previous to that I’d had finance for 3 cars from Renault, a credit card which I rarely used...
we used a broker and he told us it was specifically that. He also said that some lenders will never take you on post payday regardless of if it was over the 6 years or not

There are plenty of lenders who would not have done this. Recent PDL activity is anathema to a few lenders, but historic like this would usually be ignored.

cjv

I feel that payday lenders should be required to warn of the negative effect the loans can have, even when paid on time.

Similar to the warnings we see of non payment affecting our ability to obtain future credit.

Mrs_Ryan

I was refused for an overdraft from Barclays because they said ‘I had evidence of a recent payday loan’ in fact I had several large refunds from Payday loan companies, the one they were referring to was a loan dating back to 2011. I appealed, sending the paper trail from the Ombudsman with the order for the refund and the email confirmation from the PDL company and they gave me the overdraft no problem after that.
I didn’t realise until then what a problem PDL’s could cause.

Farmer_Johnson

cjv wrote: »

I feel that payday lenders should be required to warn of the negative effect the loans can have, even when paid on time.

Similar to the warnings we see of non payment affecting our ability to obtain future credit.

Yes, I have like packets of peanuts should contain the warning “may contain nuts”, and freshly brewed coffee should say “caution, contents may be hot.”

[Deleted User]

Surely if its after 6 years and they have dropped off your file, there is no need to tell the mortgage provider that you have had them in the past?

I had a few some years ago when I was between jobs and the last one dropped off my file earlier this year.

cjv

Farmer_Johnson wrote: »

Yes, I have like packets of peanuts should contain the warning “may contain nuts”, and freshly brewed coffee should say “caution, contents may be hot.”

I think many people would not be of the assumption that taking out a loan and paying it off on time could potentially stop you getting a Mortgage in the future.

Farmer_Johnson

cjv wrote: »

I think many people would not be of the assumption that taking out a loan and paying it off on time could potentially stop you getting a Mortgage in the future.

“There was no sign telling you that you shouldn’t get on the hot air balloon ride if you’re afraid of heights.”

“I think it should be explained in the brochure that the local store does not sell proper biscuits like custard creams or ginger nuts“

"We found the sand was not like the sand in the brochure. Your brochure shows the sand as yellow but it was white."

In order that IQ can average 100 it’s the case that for every Carol Vorderman or Brian Cox there is someone who will struggle to understand the simplest of concepts.

While society should take care of these people, we cannot design society solely around them. If you are confused that using a lender of last resort at punitive rates looks bad then you must have noticed long before that you struggle with things that everyone else finds just fine. In that case you should ask a friend who’s brighter than you before signing a contract.

cjv

Farmer_Johnson wrote: »

“There was no sign telling you that you shouldn’t get on the hot air balloon ride if you’re afraid of heights.”

“I think it should be explained in the brochure that the local store does not sell proper biscuits like custard creams or ginger nuts“

"We found the sand was not like the sand in the brochure. Your brochure shows the sand as yellow but it was white."

In order that IQ can average 100 it’s the case that for every Carol Vorderman or Brian Cox there is someone who will struggle to understand the simplest of concepts.

While society should take care of these people, we cannot design society solely around them. If you are confused that using a lender of last resort at punitive rates looks bad then you must have noticed long before that you struggle with things that everyone else finds just fine. In that case you should ask a friend who’s brighter than you before signing a contract.

I would construe all your examples as common sense, but I stand by my opinion that this particular situation is not as well known as a bag of nuts containing nuts.

binaryuniverse

I'm sure a small sentence, about 3pt high, on adverts, saying "Warning: payday loans can seriously affect your ability to get credit in future." would solve all problems immediately.