Payday loans and credit scores

[brandondrury]

I had a question that I was just curious about.

I noticed that payday loans do not require a credit check. Does a payday loan effect your credit score?

Brandon Drury

[MrsChambers]

Re: Payday loans and credit scores

no, it does not... unless of course you fail to pay back that loan, then you should prolly expect to see a "ding" from some collection agency on your reports...

but to answer your question...

no

[brandondrury]

Re: Payday loans and credit scores

That makes total sense.

What about the collection agencies? I would assume that they can put a mark against your credit rating. Is this assumption correct?

Brandon

[cercis]

Re: Payday loans and credit scores

Collection agencies do typically report to the credit agencies.

[MrsChambers]

Re: Payday loans and credit scores

I beleve the Feds just passed this new law... in essense it says that one (a collection agency or the like) must make contact with you - and give you an oppertunity(?) to "settle up" before putting that "black mark" on your report(s)