People who are thinking about getting a payday loan often wonder how it will affect their credit score and report, and how it will affect their credit score and report. In this case, it's important to note that a person's credit score won't affect whether or not they get a payday loan, and getting one won't affect their credit score, either. But there may be times when the two could have an effect on each other.
Payday loans and credit reports' effects on each other
The payday lender might be a member of a credit bureau. He might decide on his own to tell the credit bureau about you and your payday loan transactions. The information will then be looked at, handled, and added to your credit file. So, it will hurt your credit rating. Many lenders, on the other hand, do tell the credit bureau about your payday loan. They do this because it keeps the loan from going bad. In this case, you should pay off the loan on time and make sure that he reports the payment as soon as the loan is paid off, so that your credit report doesn't show any negative information. This could also be a step toward rebuilding your credit score.
A good or bad credit score has never been known to make a difference in getting a payday loan. Most of the time, having bad credit hasn't hurt your chances of getting a payday loan. Even if you have a bankruptcy record, a bounced check, or a charge-off, that has never stopped you from getting a payday loan. But your bankruptcy, if you had one, must be over for at least three months to a year, according to the lender's rules. People who want a payday loan but are currently bankrupt can't get one either.
Payday loans don't check your credit, and bad credit hasn't been known to affect them much either. Still, having a bad rating on your credit report could make it hard to get a loan in the future.
