Credit History Advice

Satchmore · 4 October 2018 at 6:24PM

This year I have had 30 payday loans (yes i learned my lesson now but can't remove them) 7 credit cards and two catalogs.

Every month my balances have been maxed out but not got any bad marks on them accounts at all. Always paid on time.

When I pay off all my loans into closed account section and pay off all credit cards back to 0 and keep them opened for sensible low usage,, will lenders still reject me for having this past visible or will they be happy that I've been paid everything off and got no bad marks in the whole time I was under heavy credit.

In other words will I have lasting damage from being maxed out all year and opening all those accounts or will the impact fade quickly once all short term loans are closed and all 7 cards are brought below 30% usage?

Willing2Learn · 4 October 2018 at 6:30PM

Hi and welcome to the forum

Your settled closed PDLs will all be visible for six years and will impact negatively when viewed by potential lenders. However, the impact will reduce over time.

The impact of having your lines of credit all maxed out, will also reduce over time.

Why do you ask? Are you planning on getting more lines of credit in the future? Are you able to manage your budget successfully?

obay · 4 October 2018 at 6:30PM

PDL will have a negative effect on your file regardless.

jonesMUFCforever · 4 October 2018 at 6:31PM

This might get better responses on the credit ratings board.

My 2p worth your applications will be visible on your credit reports for some time so in the short term it will have an adverse effect.
As things now are under control you won't need any new credit applications for a few months will you?

Satchmore · 4 October 2018 at 6:34PM

No not opening credit for a while now. Just don't want this to hang over my head for the next 6 years. Like I said no defaults CCJs or anything adverse. Just maxed out cards every month - lots of short term loans (only Wonga listed as payday others are short term) and lots of new accounts this year.

PRAISETHESUN · 5 October 2018 at 10:52AM

The loans will have an effect while they are on your files (even those paid off), but the impact should diminish over time. More recent ones will have the greatest impact. The high utilisation cards will also have an impact, but I would imagine this will not be anywhere near as bad as the loans, especially once you get them under control.

As for getting more credit in future, you will likely struggle with the 7 cards you already have particularly if they have high limits compared to your income. Closing some of them might help you get better cards down the line, but if they have decent limits you should probably hang onto them as you may be unlikely to get better cards with the same limits again

Credit History Advice

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