Life After Payday Loans

mikeabbo

Hiya,
Been a rough couple of years but having bounced round a few places i found a job I am happy with and can see myself being in it for the long haul.


As of this month I have paid off my credit card and I am clear of the payday loan cycle (a fair amount of them) I was caught in for quite a while. I am now at a turning point.


As I am back home with my parents, I can save a fair amount of money. I am looking to open up a to buy ISA with the £1200 startup, Can add the £200 per month, Plus a additional £300 in savings.


I am finally on track to start thinking about a mortgage in the next year or so.


My question is, If I start improving my credit rating, with the tips that I have read on here, and get it up to a “better” rating by next year… The bad history and payday loans will still show.


Is a mortgage something I would realisticly be able to be accepted for considering this history, or will it be rejected after one look, even if I can put down a decent size deposit in a year or so’s time?


Any thoughts or advice would be appriciated.

ACG

Pay day loans are a pain in the .... but they are not a deal breaker. There are lenders who will treat them like any other commitment and if paid each month, you will be fine.

It just means your options are reduced.

From an experience point of view, pay day loans can also be a sign of other issues (missed/late payments) and with those in conjunction it can start to impact your options and cost. When you get to the point of having your deposit in place, get your credit reports over to a broker and they can help guide you.