Pay Day Loans and credit score

[moneyonmymind]

Hi Everyone,

I am new to mumsnet but would like some advice.

When I was younger I was very silly with money and took out pay day loans. These are all satisfactory however they do appear on my credit score.

My credit score is 750 on Experian and says 'fair'

However these ugly 'PAY DAY LOANS' are all over my report. However they are all green.

In two years time me and my partner are planning on getting a mortgage and I was wondering how this would affect it. From looking online 750 credit score seems ok, but the pay day loans are making me feel sick with worry!

Any help is really appreciated x

As long as you paid them all on time and didn't miss payments then they won't cause you problems :)

Have a look to see what you can do to increase your credit score - are you on the electoral role at your current address, have you closed any old or unused accounts and credit cards etc so you aren't exposed to too much available credit?

Thank you so so much! I do have a credit card which I use for my petrol and pay off every month. I have been trying my hardest to sort my finances out and am also saving - when I saw the pay day loans all across my credit report I went into complete panic mode!

Do you know if 750 is an ok credit score?

I currently take home £1800 and am saving £900 (In the hope that although my credit history isn't fantastic but over 1 year the building society will see I am able to make mortgage repayments)

Fingers crossed the bank will be kind to me but I have read so many horror stories.

Never again will I get a pay day loan!

How long ago did you take out the pay day loan?

As they can potentially flag up a warning to lenders even if they were paid back on time. The loans are seen as bad to other lenders, so although they may not reduce your credit score a lender may want to make additional checks on your finances.

Hi bella411

The loans are over 2 years old - however they still show on my credit score.

I am aware that I wont be able to get the best interest rate when it comes to getting a mortgage but I am fine with this (I guess you have to pay for your mistakes!!!)