Does Payday loan hurt your credit score?
A loan can be a bit risky. There can be some some negative points to consider as well. One of the common concerns of most of the borrowers is that the payday loans affect the credit score or not?
Let us talk about payday loan & credit score
Payday loan is a short-term loan. It is used by people who immediately need the funds.
It is very easy to get it. But, the first thing that you will have to focus on is picking the right service provider. There are many payday loans services providers. Some charge higher interest rates. Some charge low interest rates.
It is important that you shall take it from the direct lenders online. and not indirect lenders. The involvement of the third party becomes a long process and a messy process the whole way.
Usually people who take up payday loans get worried about their credit scores, as many assume that the credit score tends to go negatively which is undesirable by many.
Payday loan hurt your credit score, right or wrong?
Here are some points which tell that the credit points do not matter and they can be intact
1) There are no credit checks, in payday loans. Mostly many lenders don’t usually check your credit score they are more focused on other documents and procedures. The main thing is that they need to see if you have a steady job or not. One of the advantages of payday is that the credit scores are overlooked.
2) One time payments are always good. As soon as your paycheck of the month arrives and the faster you pay the loan back the more you are in advantage of. The credit score is intact then. But if you fail to pay it all at once and delay in the payment that is when the credit score falls down on the negative scale. You can pay for the payday loans by the paycheck at once and hence if you follow the rules there will be no downfall of your credit score.
Payday loans and credit score
3) A reliable lender is what will make the process easy and comfortable. The lending agency will charge you more that is why go for a direct lender always. They can help you through the whole process and won’t charge you extra. If you go through a third party it is very likely that they charge you extra and make the expense higher than required. The third-party vendors also give not much privacy and they also check up on your credit score unnecessarily. With a direct payday lender, you will have a loan agreement to which you will abide and there will be no one in middle to put any confusion or so.
We conclude that the credit score is not much accounted for in payday loans, and while taking payday loans it is not necessary that the credit scores go down.
Tips to get payday loans in California.