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  • FIRST POST
    • elizabethanne
    • By elizabethanne 12th Mar 18, 3:04 PM
    • 1Posts
    • 0Thanks
    elizabethanne
    Payday loans at a relatively young age
    • #1
    • 12th Mar 18, 3:04 PM
    Payday loans at a relatively young age 12th Mar 18 at 3:04 PM
    I've used payday loans twice in the past two years, both times paid off early and in full. I'm currently at uni and at a stage in life where my credit score doesn't affect me yet, but in the future will my use of paypay loans affect my credit score badly? For example will they take into account that I was young and at uni?
Page 1
    • zx81
    • By zx81 12th Mar 18, 3:06 PM
    • 17,230 Posts
    • 18,310 Thanks
    zx81
    • #2
    • 12th Mar 18, 3:06 PM
    • #2
    • 12th Mar 18, 3:06 PM
    You don't have a credit score - just credit history.

    They will drop off your files after 6 years, so hopefully you have time to get yourself into better habits before you need to apply for any serious credit.

    But never take on out again. It's a sign that says 'I like spending money I don't have and will pay a huge price to do so'. Lenders aren't keen on that sort of look.
    • John-K
    • By John-K 12th Mar 18, 10:01 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #3
    • 12th Mar 18, 10:01 PM
    • #3
    • 12th Mar 18, 10:01 PM
    No, you do not get extra credit for being young.

    Surely it should be viewed the other way round; to need payday loans young is not a good sign.
    • diggingdude
    • By diggingdude 13th Mar 18, 12:17 AM
    • 259 Posts
    • 282 Thanks
    diggingdude
    • #4
    • 13th Mar 18, 12:17 AM
    • #4
    • 13th Mar 18, 12:17 AM
    No, you do not get extra credit for being young.

    Surely it should be viewed the other way round; to need payday loans young is not a good sign.
    Originally posted by John-K
    The crazy thing is it should be the other way around. Younger people are financially exploited - lower rates minimum wage, lower benefits higher car insurance to get to work etc and yet they still have to pay the same rent, food and electricity bills, council tax etc as an older person
    House Deposit - Target £20000 April 2019
    Current Savings - £10225 13121.22 £14621.22
    • John-K
    • By John-K 13th Mar 18, 7:25 AM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #5
    • 13th Mar 18, 7:25 AM
    • #5
    • 13th Mar 18, 7:25 AM
    The crazy thing is it should be the other way around. Younger people are financially exploited - lower rates minimum wage, lower benefits higher car insurance to get to work etc and yet they still have to pay the same rent, food and electricity bills, council tax etc as an older person
    Originally posted by diggingdude
    They are not really being exploited, they just are not very valuable, knowing little, and not yet having the chance to show their worth.

    A 22year-old with a squeaky-clean record and a fresh first class degree from Oxford in Physics is going to find the world falling over themselves to offer them a job. A 21 year-old who messed around at school, borrowed money, did not pay it back, and who has had four menial jobs in the few years since they left school at the first opportunity is rightly going to find that life is a struggle.

    That is the way that it should be. It’d be a messed up world if the !!!!less youth was treated the same way as the middle-age woman with twenty stellar career years behind them.
    • nic_c
    • By nic_c 13th Mar 18, 9:33 AM
    • 1,523 Posts
    • 832 Thanks
    nic_c
    • #6
    • 13th Mar 18, 9:33 AM
    • #6
    • 13th Mar 18, 9:33 AM
    As stated they fall off after six years. So if they are in the past and paid in full, you just ensure going forward to not use them and manage your money. By the time you have finished Uni, got a job, been in it a few years and saved up money so that you want to do something credit wise, such mortgage for a house, they will no longer be on your file.
    • Tarambor
    • By Tarambor 13th Mar 18, 4:50 PM
    • 3,037 Posts
    • 2,194 Thanks
    Tarambor
    • #7
    • 13th Mar 18, 4:50 PM
    • #7
    • 13th Mar 18, 4:50 PM
    I've used payday loans twice in the past two years, both times paid off early and in full. I'm currently at uni and at a stage in life where my credit score doesn't affect me yet, but in the future will my use of paypay loans affect my credit score badly? For example will they take into account that I was young and at uni?
    Originally posted by elizabethanne
    They'll have an impact on your ability to get low rate finance and could result in a decline for more expensive borrowing like a mortgage depending on how long the time between taking them out and applying for the mortgage is but after 6 years they'll no longer appear on your file.

    They won't take into account you were young and at uni, they don't care. You are an adult, you are responsible for your own actions, might want to start getting used to that concept.
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