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I recently came across a billboard offering payday loan that reports to the 3 topnotch credit reporting agencies. How much can paying payday loans on time improve my credit?

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Payday loans can only help your credit if you pay them on time. It'll result in no complaints. However, if you fail to pay off your payday loans in time, the lender will handover the account to collection agency, who in turn report that to credit reporting agencies. Thus ruining your score.

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Do payday lenders ever report to credit cureaus? I've greater doubts. Since payday loans are short term loans, there wouldn't be much history to report. Consequently it wouldn't help your credit score much.

In contrast, payday loans would cost you a fortune in interest as of the 600%+ APR range. This is not a good option to build credit.


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Last Updated on: Fri, 8 Jun 2018