subject: Getting A Payday Loan To Pay A Bill That Will Affect Your Credit Score [print this page] It can be a hard decision to make when you are thinking about taking out a cash advance or payday loan when you have an important bill come due before you have the money to pay it. Payday loans are really designed to help in situations like these where there is an emergency situation and you need cash fast. They are not to be taken out lightly because you will more than likely have to repay the loan when you get your next paycheck and that could mean you will be short of money then also.
However, sometimes if you have an important bill that needs to be paid in order to avoid a more expensive late charge than the interest on the loan will cost you or if that bill being late is going to directly affect your credit score, taking out a payday loan or cash advance might not be such a bad idea. When you are trying to keep your credit score maintained or you are trying to rebuild your credit, being late on payments to businesses or utilities that report to the credit bureaus regularly will bring down your credit score.
Of course, if there is another way you can borrow the money from someone you know or even sell something that is not essential to you in order to pay the debt without having an interest fee, you could and possibly should consider those options first. When you have no other options except borrow from a loan establishment, it could be something you had rather not do, but could benefit you overall in the long run.
You have to keep in mind that there is absolutely nothing detrimental about taking out a payday loan as long as you pay them when they are due. Renewing the loan for another term should only be done when you have no other choice. This is what gets many borrowers in trouble with these types of loans because when it comes time to let go of the money and pay off the loan, they might see a renewal as a better option at the time, but actually it is not. If you borrow two hundred dollars and have to pay back twenty or thirty extra for interest, that is not so bad, but when you renew it two or three times, you can end up having almost one hundred dollars extra invested in a two hundred dollar loan. This is what you never want to do.
Before you take out a loan to cover another bill you have due, consider the consequences of being late first. If they do not report to the credit bureaus, then try to negotiate a late payment with them first especially if there is no late charge connected to the bill or if it is lower than what the interest on a loan will be for you.
