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Can Payday Loans Damage My Credit Score ?>

Can Payday Loans Damage My Credit Score

Let’s Know If Payday Loans Can Damage Your Credit Score

A credit score of a person is a numerical representation of his credit status which ranges between 300- 850; higher the better. It is reflected by the credit reports prepared by the credit bureaus such as Equifax, Experian, and TransUnion. There are other special credit rating agencies present too which keep the credit track of borrowers recorded. While scoring a payday loan credit score is not important. Financing companies do not check the credit history for such a small amount of loan. Just applying for a payday loan, or any kind of loan for that matter, does not impact the applicant’s credit score. Even after the payday cash advance is approved, the lender does not report the lending-borrowing activity to the credit bureaus. Which also means that your credit score is still not impacted. The only time a payday loan actually can damage your credit score is when you default the loan.

How Defaulting a Payday Loan Might Damage Your Credit Status

First of all, if you are a regular payday loan borrower and you pay off loans on due, having those in your credit report actually helps you build a good credit status. Defaulting a payday loan, on the other hand, means not making the scheduled payment on due and that means not meeting the obligation. Lenders do not report this delinquency to the main three credit bureaus directly. However, the debt collector assigned by the lender may report this. Apart from that, the special credit rating agencies also note this on your credit history. Which then negatively appears as a lower credit score due to being debt-trapped. In this case, you not only lose the trust of the lender who might not lend you money again but also you might not be able to avail big-amount loans in future; mortgage or business loans.  This negative score constantly damages your credit status until the debt is paid.

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Consumer Notice: A payday advance is a small, short-term loan intended to cover a borrower's expenses until the next payday. Payday advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory assistance. Consumers are encouraged to learn more about the risks involved with payday advances, local laws and regulations that may apply to payday advances, possible loan alternatives and recent developments in their state.

Legal Disclaimer: EZPaydayCash.com is a legitimate direct lender authorized to lend money to genuine borrowers where the interest rate, term and maximum amount that can be borrowed are solely decided by the company. Without authentic and verifiable information in the application, funding by no means is guaranteed. Upon requirement, the prospective borrower is expected to provide additional document/information- failing which would result in rejection of the loan application. While reviewing loan applications, we typically do not perform credit checks with the three major credit reporting bureaus (Equifax, Experian and TransUnion). However, soft credit checks or consumer reports through alternative providers such as Teletrack or DP Bureau, which typically will not affect your credit score, may be obtained in certain circumstances. You will not be charged any fees to use EZPaydayCash.com's service. Learn more by reading our Rates & Fees section. To change your communication preferences for this website or to submit a comment or question you can contact us.

Availability: Residents of some states may not be eligible for a payday advance based upon lender requirements. EZPaydayCash.com does not guarantee that completing an inquiry form will result in being offered a loan product with satisfactory terms or rates. It also worth noting that any loan request submitted on Friday after 6:00 PM EST will be processed on the next business day. For inquiries related to our services you may Email us at support@ezpaydaycash.com