Do Payday Loans Affect Your Credit? Yes, but in a positive way. When you apply to any of our top payday companies, they do not check your credit. They simply match you to a lender that can approve your payday loan up to $1000.
How Does a Payday Loan Affect Your Credit?
As we said in the opening paragraph, it can affect your credit in a positive manner. Once the lender goes over your application, they check to see if you have had any previous payday loans, if the repayment was made, or if there were any defaults in the payment of the loans. If you’ve had a clean history, then your credit rating will increase. Of course, if you have had previous payday loans and were late in paying them or defaulted, the lender will not approve your loan and therefore the credit agencies will not be notified. In actuality, the lenders do not engage in traditional credit checks with the three top reporting agencies, but they do check online consumer databases to determine your payday loan history.
A Payday Loan Can Boost Your Credit Score
Again, as we have said, when you apply for an online payday loan and pay it off with your next month’s paycheck, you can boost your credit score when the loan is paid off in full or within the timeframe given to you. Here is another thing to consider as well. If you've filed for bankruptcy and need to re-establish your credit standing, applying for a payday loan can be the first step in reviving your credit to a healthy state.