Can a payday loan improve my credit?

Everyone who knows the significance of having good credit ratings will be interested in improving their credit score. Credit ratings affect the ease and cost of accessing credit facilities when needed. Several factors affect a person’s credit rating. These factors include paying and servicing of debts when due, length of credit history, accessing various types of credit and loans, bankruptcies and others. One way a person can improve their credit by meeting up with monthly debt service payments when due. Each late payment negatively affects a person’s credit rating.

Can a payday loan improve my credit is a question that some people ask in a bid to know if their ability to pay or pay back their payday loan as when due can affect their credit rating. The simple answer is that payday loans do not affect credit ratings. Lenders do not use credit rating to access a borrower seeking payday loans. One reason why payday loans do not affect credit rating compilations is that the loan terms are too short. These loans usually last for just about two weeks before there are paid in full by the next payday. This time is too short to be significant and so payday information is not even sent to the bureaus compiling credit rating data.