Credit score

HARRIS · #1 (**permalink**) 09-19-2005, 01:34 AM

How much my credit score is going to be effected by taking a $600 payday loan?Can anybody help me in this regard?

Regards,
Harris

Tree0164 · #2 (**permalink**) 09-19-2005, 05:10 AM

I don't beleive Payday loans count towards a credit score.

Please look at all of your options because payday loans in general as so bad.

How much money do you need? Maybe we can help you come up with some creative ways to raise the money.

jmjj215 · #3 (**permalink**) 09-19-2005, 01:09 PM

Yeah, let's delve into this a bit deeper: why the need for the payday loan? Generally those start you off on a path that is hard to get away from.

cicy33 · #4 (**permalink**) 09-19-2005, 01:48 PM

They charge approximately 50% interest!

HARRIS · #5 (**permalink**) 09-20-2005, 12:39 AM

Hi All,
Thanks a lot for your valued response.
Actually I needed around $1000 for an urgent purpose and I have collected around $400 from my colleagues.Please explain me how a payday loan can destroy my financial position with some valuable money management tips.
Regards,
Harris

Tree0164 · #6 (**permalink**) 09-20-2005, 03:53 AM

Harris
If you have access to a credit card, you are better off using a credit card cash advance.

If you get a $600 payday loan, they are going to want that paid off next week or going to charge you late fees and even more interest. So now besides being $600 in the hole you could end up being $1200, $2000 in debt. They are really the modern day loan shark.

What do you have that you can sell? CD or movie collection, Really anything that is not bolted down.

Also you need to get yourself in a financial situation that this doesn't happen again.

cicy33 · #7 (**permalink**) 09-20-2005, 07:11 AM

The bottom line with a payday loan is that they charge a large amount of interest and if you don't pay them back immediately you could end up paying 2 to 3 times the amount you borrowed. They have no impact on your credit score as long as you pay it. Unless they report and then it could be good. There are other loan companies that do title loans and small personal loans for people with bad credit. Not saying that you do but I figured it you were going to a payday loan company then probably couldn't go to a bank? I don't think that their interest is much lower but you don't have to pay it back the next week.