Salary Finance

143 Posts

in Loans
I seen a few threads made about it but no real discussion around it. To summarise
It's a loan company that provide loans to employees of companies that are signed up to them. It's not a salary sacrifice, just your loan repayments come out of your salary. They claim to offer higher acceptance rates, even people with poor credit history, at far lower interest rates.
I am looking to get a debt consolidation loan but have two queries I'd like advice on. Firstly, if my repayments come out of my salary, will that make other creditors think that I've had a salary reduction and tighten their squeeze on my credit (for the ones I couldn't use the consolidation loan to pay off)? I don't have open banking with any of them except updraft but I'm sure they have ways to validate income?
Second question is, I made my final payment to another loan provider in January. I'm checking my various credit report providers to see if that loan has now been removed from my outstanding accounts but as of yet, it has not. This leaves still two loans on my credit report. Am I better off waiting for this to drop off my outstanding accounts before applying, to boost my chances of success in being accepted for this salary Finance loan?
I understand there are more complexities than just that, but do them two things have a factor?
Thanks
It's a loan company that provide loans to employees of companies that are signed up to them. It's not a salary sacrifice, just your loan repayments come out of your salary. They claim to offer higher acceptance rates, even people with poor credit history, at far lower interest rates.
I am looking to get a debt consolidation loan but have two queries I'd like advice on. Firstly, if my repayments come out of my salary, will that make other creditors think that I've had a salary reduction and tighten their squeeze on my credit (for the ones I couldn't use the consolidation loan to pay off)? I don't have open banking with any of them except updraft but I'm sure they have ways to validate income?
Second question is, I made my final payment to another loan provider in January. I'm checking my various credit report providers to see if that loan has now been removed from my outstanding accounts but as of yet, it has not. This leaves still two loans on my credit report. Am I better off waiting for this to drop off my outstanding accounts before applying, to boost my chances of success in being accepted for this salary Finance loan?
I understand there are more complexities than just that, but do them two things have a factor?
Thanks
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Even if they did, if you're looking for debt consolidation I'd argue that them cutting your limits is hardly a bad thing.
I don't think your loan being paid off will make the blindest bit of difference, it'll show as practically paid off anyway, and if you're truthful about the reason for applying then the outstanding debt is probably going to be a pass/fail anyway, a couple of hundred quid or so won't change anything.
Many consolidation attempts fail because the root cause of the issue is not addressed, and having lines of credit available means they get spent on, and the debt increases and increases.
Trying to juggle the debt over 0% cards to boot just increase the risk of it all going breasts up.