payday loans and your credit

How Do Payday Loans Affect Your Credit?

If you’ve ever wondered, “Do payday loans affect your credit,” the answer is not usually, and Carolina Payday Loans, Inc. may be able to help you get one.

Your credit rating is important when it comes to many kinds of borrowing, but payday loans don’t really relate to it as long as they are paid back promptly. Most payday lenders don’t report information on payday loans to the national credit reporting companies.

That means you can take out a payday loan even if your credit isn’t very good. You do need to pay the loan back, but the loan won’t appear on your credit score.

Do Payday Loans Affect Your Credit?

woman searching for answers for how do payday loans affect credit

Does Taking Out A Payday Loan Change Your Credit Score?

With many kinds of loans, the lender will run a credit check as part of the assessment process, before they lend you the money. This credit check gets noted on your credit record and can have a negative impact on it in some cases.

However, payday lenders don’t often run hard credit checks, and may not check your national records. This is because payday loans come with a specific payback method, based on your next pay stub, rather than depending on your borrowing history to determine whether you are likely to repay the loan.

If you are approved for the loan, it won’t usually be reported to any of the three national credit reporting companies. The loan may never appear on your credit report. That means that taking out payday loans probably won’t affect your credit score at all.

Can Taking Out A Payday Loan Improve Your Credit Score?

When some people ask “Do payday loans affect your credit,” they are hoping that the answer will be “Yes.” You might be wanting to use a payday loan to improve your credit score by demonstrating that you can pay back the money in a timely fashion.

Paying loans back on time can have a positive impact on your credit score. However, that isn’t usually the case for a payday loan. Because payday loans aren’t reported to the national credit reporting companies, paying your loan back as agreed may not improve your credit score.

That can be frustrating for people who want to use payday loans to boost their credit, but it’s the nature of these loans. They will not normally have any impact on your credit rating.

Does Failing To Pay Back A Payday Loan Change Your Credit Score?

If you don’t pay your loan back promptly, there is a chance that it could have an impact on your credit score, yes. Although payday loans aren’t reported initially, failure to repay one could result in a report being filed.

It’s important to get in touch with us promptly if you are having trouble meeting your repayments as agreed upon when you took out the loan.

As soon as you know you are going to struggle with a payment, reach out straight away and let us know. Our agents are highly trained and will work with you to find a solution. Don’t wait until the payment is late or has failed in order to get in touch.

cash with payday loans

Can You Get A Payday Loan With Poor Credit?

We offer payday loans to people in a wide range of situations, and your credit is not a particularly important factor in the loan process. We may perform a credit check, but we mostly depend upon documentation like pay slips and your identification in order to determine if you are eligible for a loan.

That makes this sort of loan a viable option for people who don’t have great credit and can’t get traditional loans. If you’re struggling, we may be able to help.

We work with people regardless of their credit history, and can offer assistance even if you have any of the following:

  • Recent bankruptcy
  • Bounced checks
  • Charge-offs
  • Other credit issues

To find out if you could be eligible for a loan in spite of your history, simply get in touch with one of our friendly agents today.

Apply For Your Payday Loan Now

Carolina Payday Loans, Inc. can help out if you’re looking for a way to borrow money without it having a big impact on your credit score.

So, if you’ve ever wondered, “Do payday loans affect your credit,” the answer is that they usually don’t. That means they don’t have a positive impact, but they also don’t have a negative one if you meet your repayments.

It’s important to be aware of your credit score and to do what you can to keep it in good standing. This will make it easier to get loans when you need them.

Payday loans shouldn’t have an impact on your credit, so why not apply for one today? Fill out the online form now to get started.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.