Do payday lenders check your credit?

Do payday lenders check your credit?

As part of the general practice of ethical lending, payday lenders will check your credit score and credit history. If a lender does not check your credit, unless they specify they offer payday loans no credit check , you have a right to complain if you find yourself unable to pay back the loan. The Financial Conduct Authority (FCA) is responsible for setting the rules of the lending industry and they expect the lenders to carry out a credit check to make sure that the borrower in a position to be able to pay back the loan with all the […]

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What Wonga going into administration means for payday loans

What Wonga going into administration means for payday loans

As you may be aware, Wonga has recently been forced to go into administration. The lender has stopped taking on new loan applications as they find themselves on the brink of collapse. In late August of 2018, Wonga held emergency talks which the Financial Conduct Authority (FCA) about what the impact of their demise would mean for their existing customers. Furthermore, it was unclear what it would mean for the investors of Wonga, which included Balderton Capital, Accel Partners and 83North. In this guide, we will explore the overall impact that the fall of Wonga is likely to have on […]

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You need to ‘close’ your loans, not just ‘settle’ them

You need to ‘close’ your loans, not just ‘settle’ them

Many people believe that if their loan is settled, then that is just as good as closing the loan. You may find that if you settle a previous debt and go to take out a new loan, you may be rejected due to a ‘settled’ sign showing up on your credit report. It is fair to say that most of us do not actually know what it means to have “settled” on our credit reports. Surely “settled” has a positive connotation, right? Wrong! Having this present on your report is not a reflection of you being responsible with your borrowing. […]

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Does getting a payday loan affect credit

Many people who are needing money to help them out are choosing to actively avoid payday loans because they believe that in taking out one, they are going to severely damage their credit score. But, in actual fact, simply taking out a payday loan and respecting the agreement will not damage your credit score in the slightest. However, there are exceptions to this if a particular company you deal with in the future for financial credit sees payday loans in a negative light. In this case, having one on your credit score could go against you, even if you made […]

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Do payday lenders contact my employer?

Many potential applicants for payday loans for bad credit are worried that when they apply, the lender will contact their employer. This is likely to be a cause of a bit of awkwardness. You can rest easy, payday loan potential applicants and borrowers alike because, your potential lender company will not contact your employer as part of the underwriting process. Payday lenders will only call your workplace to speak to you, not to speak to your boss. Once you make a loan application, your loan will be denied or put in “underwriting” and this is where the lender is trying to confirm […]

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How to get a payday loans refund

How to get a payday loans refund

If you have ever taken out a payday loan, you may be due for compensation. The number of complaints surrounding the conduct of payday loans companies rose by 178% in 2017, as revealed by the Financial Ombudsman and now there is a demand in customers looking to claim from payday loans direct lenders, for legacy loans that were taken without sufficient checks before funding. Can you get a refund on a payday loan? How long would it take to get to me? How do I go about claiming? These are all frequently asked questions which need to be cleared up. This […]

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Common reasons why people use payday loans

Common reasons why people use payday loans

Since payday loans are not specific like a mortgage or a car loan would be, you can essentially use it to purchase or pay back anything you want. Therefore, there are numerous common reasons why people use payday loans. The attraction of payday loans is when you find yourself in a particular situation, you can gain access to money quickly at a relatively low-interest rate (dependant on your credit score). In this guide, we are going to be looking at some of the most common reasons why people chose to take out and/or reply on payday loans. Bad Credit You […]

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How do payday loans affect your credit score?

How do payday loans affect your credit score?

A common question posed is whether simply taking out a payday loan can have an effect on your credit score, either positively or negatively. If you have worked hard to maintain a good credit score by building up your finances and paying off your credit card bill in full each monthly statement, it makes sense that you would want to protect your credit score. After all, having a poor credit score can seriously damage your chances of getting financial help in the future. This could include taking out a mortgage, buying a car with a loan or even getting an […]

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How many payday loans can you have at one time?

How many payday loans can you have at one time?

According to a rule of thumb, payday lenders should not be providing anyone with more than one payday loan at any given time. This would not only not be in the spirit of the industry, but it would also not be in the interests of the borrower. It goes against the very design of the payday loan, which is a short-term loan to boost finances rather than a deep financial need. If you cannot get enough cash for your needs in a single payday loan, then you should really be considering other kinds of credit to help you. However, there have […]

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What did the FCA change for the payday loans industry?

A lot has changed about the Payday Loans industry in recent years, despite the bad and unfair press. The reason why so many things have changed and various improvements have been made to the payday loans industry is because of the takeover of the Financial Conduct Authority (FCA). The FCA took over from the FSA in 2014. Before the takeover, the payday loans industry was under a considerable amount of scrutiny from not only the media but also debt charities and the government. It was the case that many borrowers found themselves in spiralling g debt with little way of […]

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