Do payday loans affect your credit score?
A payday loan doesn’t automatically affect your score. Like with any other credit type however, what will affect your score is how you handle the debt. If you manage it well, this could have a positive impact on your credit report and score, but if you manage it poorly, this could have a bad impact. So what would you need to do to create an affect either way?
For a positive effect on your credit score:
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Only borrow what you need
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Pay back the loan responsibly and on time as agreed
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Do not repeat borrow in a short space of time
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Do not apply to lots of providers in a short space of time
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Pay off early wherever possible
For a negative effect on your credit score:
- Late or missing payment
- Approaching lots of providers in a short time who all leave footprints on your record
- Default
- Fraud
- Borrowing more than you can afford resulting in bad management
- Extending or rolling over loan (although less of an impact than missing payment or default)
- Court Action for recovery
So a payday loan, as with any other credit has potential to offer a positive or negative affect on your credit score, but not as a result of just opening the credit line. The outcome depends on your actions in how you manage your debt.
Searching for a reliable, fast & easy payday loan?
Save My Bacon provide fast and reliable payday loan service with no faxing required. Just quick and easy money in your account. You can apply for our loans on the calculator below. Why not see what we do and review the following links if you would like to find out more about us and how our service works.
Other related quides:
How to handle payday loan debt
How to pay off payday loans faster
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