How Do Payday Loans Affect Your Credit?
April 21, 2021 | Daniel Dewitt
If you’re reading this post, you probably want to know how payday loans affect your credit, if at all. Many people wonder why something so easy and convenient can be overlooked in favor of traditional bank loans. Truth be told, most people would benefit from using payday loans or title loans instead of bank financing. But some of them choose to learn that the hard way.
Don't let that be you. Turn yourself into a financial guru by learning the basics about payday loans and their effect on your credit report. You'll most likely be pleasantly surprised by what you find out.
How Do Payday Loans Affect Your Credit?
Payday loans can affect your credit, but not in the way most people think. When they hear the words "affect your credit," they immediately think of something negative. However, that's not at all the case with payday loans. Here are two facts to consider more carefully:
1. They Don't Affect Your Credit Because Your Credit Report Isn't Used for Approval.
That's right. Payday loan lenders don't use your credit report as a point of reference when underwriting your contract. Instead, they look at your pending income and earning history to determine your eligibility. And if you can meet the basic requirements, you'll have no problem getting approved even if your scores aren't high enough for the banks.
2. They Do Affect Your Credit Because They Help You Avoid Common Money Problems.
When you can't pay your bills on time, the credit reporting bureaus don't like that. It doesn't take long for bad marks to show up on your credit profile, but quick and convenient payday loans can help to avoid late fees and finance charges. With enough cash in the bank, you never have to worry about credit score dropping down or money blunders that could have been avoided.
So, how do payday loans affect your credit? The answer is in two ways, and both of them depend on how you use the money. Play it smart to protect your credit and build your scores back better than before.
How Do Payday Loans Affect Your Credit if You Don't Pay Them Back?
If you forget to pay back your payday loans, a few different things could happen. One: the lender could extend the payoff deadline to give you more time. Two: you could default on the loan and not pay it back at all. And while nothing will show up on your credit report as a result, you won't be eligible for another payday loan until you pay off the first one in full.
DID YOU KNOW: You're allowed to get two (2) payday loans at a time totaling $500 if you apply through Fast Payday loans of Kentucky, Inc.
How Do Payday Loans Affect Your Credit If You Do Pay Them Back?
If you manage to pay back your fast payday loans on time, you'll always be eligible for a new loan when you need it. Because of that, you'll never have to stress about making ends meet or worry about the unpredictable ups and downs of life. Financial security always starts with smart options and a knowledge of how to get them.
DID YOU KNOW: Paying back your biggest or oldest debts is a great way to boost your credit score quickly.
How to Get Payday Loans with Fast Payday Loans of Kentucky, Inc.
Managing your money is the first step toward enjoying a better credit score. So, choose Kentucky payday loans for simplicity and straightforwardness of the process. Here's what it will look like:
1. Submit an Online Form
Go to the Main Page of this website and fill out a short intake form. This will send an instant notification to one of our stores, and a representative will then contact you directly to go over any questions you might have. That's also when they'll list out the required items and book an appointment for the rest of the process.
NOTE: You must be at least 18 years or older to apply or qualify for a payday loan in Kentucky.
2. Gather Your Required Items and Provide Them at the Store
Between the time you speak to your loan agent and the time you arrive at the store, collect the following items to quicken the process a little bit more:
- Your driver's license or state-issued photo ID
- Your most recent pay stub from work
- A blank check from an active checking account in your name
If there are any other items needed - such as special documents for self-employed applicants - your agent will go over those details while you're on the phone.
3. Meet with the Agent and Sign the Paperwork
Let the verification agent review your paperwork and determine the amount you qualify for. Once you sign the rest of paperwork, you’ll be able to walk out of the store with money in your pocket. Remember, the entire process can take as little as 30 minutes.
Apply for Your Payday Loan Today!
If you want to know how payday loans affect your credit, just think about the fact that your credit report isn't even used to determine your eligibility. And if you feel like being ready to get your Kentucky payday loan, then apply for it today and get your money within minutes!