Credit Rating

Posted by Online-Payday-Loans.org on Jun 20, 2006 in Pitfalls

Payday loans do not help your credit rating.

Paying them back on time does nothing for your FICO (Fair Isaac Company) score.

If you fail to pay them back, however, payday loans can harm your credit rating…

Making credit card and bank loan payments on time:

• demonstrates you can manage your debt
• is reported to major credit reporting agencies
• improves your credit rating

Payday lenders, however, are not members of major credit reporting agencies.

Making payday loan payments on time:

• is not reported to major credit reporting agencies
• does nothing for your credit rating

If you fail to make payments:

• your account will be sent to a collection agency
• this will likely be reported to a credit reporting agency
• it could have a negative impact on your credit rating

Remember:

Payday loans do not help your credit rating but can harm it.

Consider payday loan alternatives that can help build your credit rating.

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