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Do Payday Loans Hurt Your Credit?

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 CreditNinja,  offers online loans for bad credit. This means that if you have a poor credit score that is blocking your attempts at receiving financial relief, you can get a loan from us to help you out in the short term. 

However, many people who have reached out to us have voiced concerns that these payday loans may only hurt their credit scores even further – but is that even true? Do payday loans truly hurt your credit score? 

Here, we are going to be taking a closer look at payday loans and how they affect your credit score. This way, you can make a more informed decision regarding your finances and seek out the support you deserve. Check out the guide below for all the answers you need! 

What Are Payday Loans?

First, let’s take a look at payday loans – what exactly are they? 

Payday loans are a very small type of loan you can take out from a lender that is based on your income. Basically, it allows you to get a portion of your next paycheck in advance so you can deal with emergencies right then and there. 

For example, imagine if your refrigerator broke and you would not have enough money to get a new one until your next payday. You could get a payday loan to purchase a new refrigerator now when you need it and then just pay the loan back when you get paid

This is why payday loans are also known as ‘cash advance loans’ or ‘check advance loans’ – because they give you a portion of your check in advance of your next payday! They are very short-term loans that usually range between $50 to $1,000 but the amount depends on your income. 

Another great thing about payday loans is that lenders don’t really consider your poor credit score when determining whether or not to give you a payday loan. All you need to do is provide proof of your income so the lender can calculate how much they want to lend you. Of course, this may not be true for all payday lenders – some may take your credit history into consideration but this all depends on what lender you go to. 

Payday loans aren’t perfect, however. They generally come with very high-interest rates but their good accessibility makes them a great solution for those in need of a short loan immediately to cover unexpected expenses. 

Do Payday Loans Affect Your Credit Score? 

Payday loans are very short-term loans and because of this, they barely make an impact on your credit score at all. This is especially true if you manage to pay off your payday loan within the general 30-day window and in full – because you have made the repayments on time, it won’t affect your credit score. 

However, it’s important to note that payday loans will appear on your credit history even if they don’t negatively impact your credit score. This means that when you go to apply for a loan, even if you have a very good credit score, your potential lender will be able to see that you have taken out a payday loan in your credit history. 

Again, this won’t really make an impact but some lenders see payday loans more negatively than others. In general, the fact you have taken out a payday loan or two won’t have much of an impact on your ability to take out larger loans in the future – and the further away those past payday loans are, the better! 

The main issue with payday loans affecting your credit score is when you try to take too many out in a short period of time or if you do not repay the payday loan on time. Taking out too many loans in a short period of time will always affect your credit score negatively, no matter what kind of loans they are. Not making repayments on time will also affect your credit score negatively no matter what kind of loan you have.  

So, in truth, these negative effects on your credit score are not to do with the payday loan itself – it comes down to whether or not you can pay it back in time! 

Final Thoughts – Should You Get A Payday Loan?

Payday loans are a great solution for people stuck with sudden expenses they need to pay as soon as possible. They provide you with the funds you need and you can pay them off with your next paycheck – so they’re easy to apply for and pay back. 


They leave next to no impact on your credit score for better or for worse. While some companies may look down on payday loans in your credit history, most will not take them very seriously as long as they are repaid on time. 

 CreditNinja, offers online loans for bad credit. This means that if you have a poor credit score that is blocking your attempts at receiving financial relief, you can get a loan from us to help you out in the short term. 

So, if you are interested in taking out a payday loan, check out the options available here at CreditNinja. We offer all kinds of loans tailored to your needs – so get in touch and find out what we can do for you. 



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