Press Release: Payday Loans Used to Repair Poor Credit Reports

Payday Loans Used to Repair a Poor Credit Report Payday loans can help consumers repair poor credit reports 13% of Payday Loan Applications to ‘improve credit reports’ As credit card companies and other lenders increasingly penalise applicants with low credit reports, not only refusing them credit, but making their credit footprint worse as a result of rejection, payday loans are increasingly being used as a way for consumers to repair poor credit reports. Analysis of applicants to the UK’s leading payday loans website, www.paydaybank.co.uk, in March 2010 found that an increasing number of payday loan applicants are taking out loans in order to repair a poor credit history. Of 1,000 applicants surveyed, 129 stated that they were taking out the payday loan as a way to ‘improve their credit report.’* Ohad Hessel, Marketing Manager at the UK’s leading payday loans broker, Paydaybank.co.uk explains how payday loans can help repair a poor credit report; “Most payday loan applications through our website are checked by credit reference agencies; if successful in your application these credit reference agencies will be notified when you repay a loan. This is then added to your credit record as a positive mark against your ability to repay debt and it will help improve your credit rating.” While many financial experts recommend taking out a credit card to those looking to repair a poor credit history, this is typically not the best option. Hessel continues; “Having more than one credit card can be marked against you on your credit report and being turned down for credit does have a negative impact on your overall credit rating, too, therefore if you are unsuccessful when applying for a credit card, as many people are finding at the moment, just simply applying for a credit card can make your credit record even worse. Also, one of the major downsides of credit cards is that they come with large spending limits – making it all too easy to incur additional debt and do further damage to your credit report in the process.” “The best way to show your creditworthiness – and your ability to repay credit - is to instead opt for a payday loan. They are easy to apply for online if you are over 18, in employment and earn more than £750 per month, so most applicants are successful and whether you need the money or not these types of loans can act as a springboard for improving your credit history.” Anyone with a poor credit report will find it increasingly difficult to find a loan and if you do, you will pay more for borrowing money than those with good credit reports. To help those looking to repair their damaged credit report, Paydaybank.co.uk has put together these top 5 Credit Repair Tips: Roll with it - Get on the Electoral Roll; this is one of the simplest ways to help repair a broken credit history – it also means you can vote in the forthcoming election. Lenders use the electoral roll to see if you are who you say you are and as a precaution against fraud. Always Pay on Time – as payday bank’s tips suggest prompt payment of monthly bills like broadband or mobile phones, credit cards and other bills will show that you are a credit worthy applicant. Ditch Unused Credit Cards - If you have more than one credit card, some of which you no longer use, it would be wise to close them as lenders not only look at how much money you owe, but also how much money you could borrow in total. Owning more than one card pushes this borrowing limit up. Minimise Applications – Shopping around can sometimes leave you with a credit footprint the size of an elephant, so be aware that nearly every application for credit – mortgages, credit cards, loans - triggers a search of your credit report that leaves a record. Limit and leave plenty of time between your applications so as not to cause problems. Take Out a Loan – Taking out and repaying a loan will show to future lenders and credit reference agencies that you are able to repay credit. Short term loans, such as payday loans, are a quick and efficient way to improve your credit record, but remember, this process only works if you repay the loans, so if you can’t afford to repay it, don’t take it out in the first place. Notes: *1,000 random payday loan applicants visiting www.paydaybank.co.uk in March 2010 were asked anonymously why they were taking out a payday loan. 129 respondents said in order to ‘improve their credit report.’ For more information contact Dale Lovell at Search News Media on 0779 1414 681 / 01753 861207 or email: dlovell@searchnewsmedia.co.uk About Paydaybank.co.uk: PaydayBank was established in 2005 with the aim to help as many customers as possible with their short term cash needs. Applicants must be UK residents and over 18 years old and in employment.

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