No data credit report

thewilf

Hi,

Had a bad time a few years ago and I now have some payday loans on my report which are showing no data from May 2019 on clearscore. Loan amount is £500 and current balance showing is £1072. Status just says no update received.

I want to pay it off so it’s gone from my credit report as am applying for a mortgage however if I pay it now will it fill in that large gap with missed payment flags and extend the default somehow? I have a mortgage offer now but I have a CCJ that drops off in a month as will have been 6 years and mortgage advisor wants to apply for a lower interest mortgage and don’t want to ruin this.

I do also have a default registered in 2019 so again don’t want to risk any other additional impacts hitting. Since the payday loan stopped reporting I am showing all clear for payment history and I have been.

Any advice you can offer is greatly appreciated.

thanks

[Deleted User]

Firstly, paying the debt will not stop it showing on the account, it disappears after 6 years regardless
Lenders will see the pay day loans on your history so will judge an application accordingly
It is not allowed to "extend" a default, it must disappear after 6 years after being registered

thewilf

Hi,
Thanks for the reply. Am I better off just leaving it there until after ccj has dropped off and I have applied for mortgage then? I want to pay it as is showing as an active loan just no update, I am worried if I pay it the will update as missed payments from 2019 and don’t trust phoning them up to check.
thanks
will

[Deleted User]

You'll need to declare the debts on your mortgage application so you need to get them settled. Unsettled defaults will be a huge barrier to overcome.

[Deleted User]

If you have a CCJ as well as defaults and payday loans I'd stop worrying about a mortgage until they are cleared as no mainstream lender will touch you. If you pay the debt and it shows as settled, that will be better but you'd do better saving up for a bigger deposit and rebuilding credit file with careful credit use ready for an application later

K_S

@thewilf I would lean on your mortgage broker here for advice.

It looks like he/she already got you a specialist mortgage offer (with the report as it is) but is hopeful of getting you a better rate once the CCJ has dropped off next month. I would be wary of doing anything that might disturb the current report as the broker would have already accounted for the current state of the report in their plan to get you a lower rate.