Will a Payday Loan Hurt My Credit?

Answer: It depends. Cash loans will hurt your credit if you do not repay them or neglect to make payments on time. In most cases, your account will go to collections if it is not repaid in full by the pre-determined due date. And, like all accounts that are sent to collections, it will have a negative impact on your credit.

However, if you repay a cash loan in full and on time- it will have no effect on your credit history. It’s important to understand that payday loans are very high-interest loans and should be used as a last resort. Be sure to shop around and research all your options before making any decisions. For instance, a credit union or your personal bank may be able to offer you a small loan with a better interest rate and longer loan term.

Cash Loans For Students

With the current state of the economy, unemployment rates continue to be high- especially for the 18 to 24 age group. That being said, college students are struggling to meet their bills more than ever. Between the rising cost of tuition and meeting monthly bills, students are forced to adhere to a strict budget. But, when you’re just scraping by, even the slightest hiccup can throw your finances into a whirl. What do you do when your landlord is knocking at your door and you don’t get paid until next week?

First things first: ask your parents for a short term loan. Explain that you don’t get paid until next week and that rent is due today. Sometimes, or rather the first few times, parents will most likely react with understanding. However, after the first few times, they’re probably going to blame you for mismanaging your finances. If that’s the case- you may need to seek out loans for bad credit. These are typically designed for individuals with little or no credit history. Be sure to repay the loan on time. Any late payment could potentially have lasting effects on your credit report.

Read more about The Subprime Crisis of Student Debt