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Effect of Pay Day Loans
Supadella
Posts: 1 Newbie
Hi There. My partner has been a bit silly. She used Pay Day Loans for the wrong purpose and didn't realize what they are for. She ended getting crazy repayments for using them to borrow longer than the short term they are designed for. This resulted in her getting another to pay the other!!!! and then another!!! I was not aware of this and all these were in her name. I came out of a mortgage deal and discovered this when examining the bank statements. These "Pay Day Loans" have now been cleared. My question is Who will this effect her credit file? She has never missed a payment but I am aware that lenders perceive using "pay days" as you in dire straights financially. I need to change our mortgage soon. Will / how will this affect us in doing so?
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Comments
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Hi There. My partner has been a bit silly. She used Pay Day Loans for the wrong purpose and didn't realize what they are for. She ended getting crazy repayments for using them to borrow longer than the short term they are designed for. This resulted in her getting another to pay the other!!!! and then another!!! I was not aware of this and all these were in her name. I came out of a mortgage deal and discovered this when examining the bank statements. These "Pay Day Loans" have now been cleared. My question is Who will this effect her credit file? She has never missed a payment but I am aware that lenders perceive using "pay days" as you in dire straights financially. I need to change our mortgage soon. Will / how will this affect us in doing so?
Yes it could be real bad or not as bad as that. All depends on the lenders.
Speak to a few brokers, maybe see if you can find 1 who has experience in adverse credit histories.0 -
Lenders don't like people taking PDLs, especially if they are within 12 months of the mortgage application.
Speak with a whole of market adverse broker.Mortgage started 2020, aiming to clear 31/12/2029.1 -
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A good broker will probably find you a lender, but it's not likely to be a good rate or good deal. Ouch.0
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Is this for a re-mortgage? How is her credit history other than this?0
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