subject: How Long Do Payday Loans Stay On Your Credit [print this page] How Long Do Payday Loans Stay On Your Credit
Many people find themselves financially trapped with no paycheck coming for another week or more. In these circumstances, many will resort to payday loans or cash advances. While this can be a helpful services for those who are struggling, many will ask, how long do payday loans stay on your credit?
This is a valid question, and a good one to ask if you are already suffering from poor credit. The truth is that payday loan companies usually do not access your credit report during your application process. This is a great question to ask when you are determining which company you want to work with. Every time ones credit is checked, the score will drop slightly, so those who are trying to raise their credit score probably will want to avoid having their credit report accessed by loan companies.
On the other hand, the payday loan companies that do not check ones credit score will have no negative effect on your credit. This is something you will not have to worry about, and it is probably the better alternative, since it seems that you are already struggling somewhat financially.
Payday loans can provide much needed cash for a financial emergency. People are encouraged not to use it unless it is absolutely necessary; however, for some, it is an only resort to stay afloat and pay bills on time.
Should you find yourself unable to meet your obligation of paying this loan back on the due date, you should immediately contact the company and ask what options you have. Usually you will find yourself charged stiff late fees and fines, although some companies will offer you an extension and work with you a little more.
This is also important, because paying this loan late could also result in your credit being effected. The best advice is to work hard at catching up on all your bills, make sure you are paying them on time, and do not take out loans with companies that check a credit score, as this will cause it to drop further.
