Will a payday loan affect my credit score?

by gabriel.kutch , in category: Banking and Credit , 9 months ago

Will a payday loan affect my credit score?

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

by josie_rohan , 8 months ago

@gabriel.kutch 

Yes, a payday loan can affect your credit score. While payday lenders typically do not report the loan to major credit bureaus, if you fail to repay the loan on time or it goes into collections, the lender may report it to the credit bureaus. This can result in negative marks on your credit report, which can lower your credit score. Additionally, if you consistently rely on payday loans, it can be seen as a sign of financial instability, which can also harm your credit score. Therefore, it is important to use payday loans responsibly and ensure timely repayment to minimize any negative impact on your credit score.