Helping out another person

Raffers

This is probably a straight-forward question, but just wanted to ask in any case.

I've recently paid off the o/s balance for a friend's payday loan account. They're paying me back instead. I'm not asking about whether that's a good idea or not.

It's just that the payment to said company shows up on my debit card statement with their Company name. I just wondered if that would have any negative impact on my credit-worthiness/rating. My suspicion is that no credit check would ever show individual one-off transactions. But then I started to think maybe they do, since if I was a gambler or something, then they might want to know about that?

[Deleted User]

The only lender who will ask to see your statements is a mortgage provider.

System

Deleted_User wrote: »

The only lender who will ask to see your statements is a mortgage provider.

And even then usually only the last 3-6 months.

Raffers

I suppose it would've made more sense to have transferred the money to the friend's account and settled it from there but the concern was whether they would have had the self discipline to then pay it off.



I am actually considering applying for a new mortgage in the next couple of months so now I am wondering whether I should just be upfront about this when making my application. I have an otherwise solid financial history.

[Deleted User]

It shouldn't raise too much of a concern, as there will be no corresponding account on your credit files.

But worth mentioning to your broker, if you're using one.

dealer_wins

Raffers wrote: »

I suppose it would've made more sense to have transferred the money to the friend's account and settled it from there but the concern was whether they would have had the self discipline to then pay it off.



I am actually considering applying for a new mortgage in the next couple of months so now I am wondering whether I should just be upfront about this when making my application. I have an otherwise solid financial history.

If that was a concern, you can expect him to re-borrow again shortly lol

Sncjw

Why does lot your friend pay the payday loan directly?

Raffers

They were struggling to make payments on time but had money coming later than the payment due date. I helped them to minimise the interest accruing.