do payday loans hurt your credit

We sometimes have questions to ask about payday loans and debt consolidation. Payday loans are a quick way to borrow cash for unexpected expenses. These loans can be repaid on the next payday.

Although this may seem like a great way to solve cash flow problems, payday loans can quickly become a problem if they are not repaid within the first pay period.

Credit and payday loans: What they can do to your

Lenders don’t report payday loans to major credit reporting agencies. If the borrower defaults, it is debt collectors that take over. Once the collection agency has purchased the debt, it is able to report it to credit agencies.

Payday lenders may file lawsuits against borrowers if the loan isn’t paid. Non-payment of loans may be grounds for lawsuits by payday lenders.

This judgment could show up on your credit report. This could negatively impact your credit score. Other lenders could use this information to report your history of payday loans.

There are many options for payday loan relief

Consolidating your debt can make it easier to pay off any payday loan debts, or any other debt. But, “debt consolidation”, can also refer to two things. Both should not have an impact on your credit score, but one will.

What is the difference between debt settlement and

A debt consolidation loan is a way to consolidate debts. A bank will grant one loan to pay off all the other loans. Consolidation loans have a lower interest rate, but they are generally available for a longer time.

Consolidated loans offer a shorter repayment term and lower interest rates than traditional loans. Consolidated loans will make it easier for you to manage your debt payments. Consolidation loans can show you how much debt you paid in full, according to credit reports. This is a good thing.


Many people refer to debt consolidation as part of a debt settlement plan. Consolidation involves making one payment to a company, which will then
distribute the amount to your creditors.

A debt settlement company can negotiate a lower settlement than the original agreement.

Choose a Reputable Company

Do your research before you sign up for a debt consolidation plan. It is crucial to understand the type of program or loan it is.

It is your responsibility to ensure that you make payments on time. You will be notified if the company that you used to pay for you does not pay.


advertiser disclosure, affects your credit, credit counselor, debt management plan, debt relief, good credit, high-interest rates, lines of credit, loans amounts, monthly payments, fast personal loans

Latest posts by Jason Rathman (see all)

Photo of author

Author D Laidler

I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go.  I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.

Thank you for visiting

Leave a Comment

Business Finance

About Us

Business Finance News is a brand oriented to business owners and dedicated to analyzing and comparing the cost and conditions of B2B procurement of goods and services through free quotes delivered by business partners.


Address 5050 Quorum Drive, (75254) Dallas TX

telephone 844-368-6072


A personal loan is a medium term loan with a fixed interest rate that is repaid in equal monthly payments and it's usually limited to 24 months. Loan offers and eligibility depend on your individual credit profile. Our lenders can help you obtain as much as $3,000 depending on the lender, your state and your financial situation.

The owner and operator of is not a lender and is not involved into making credit decisions associated with lending or making loan offers. Instead, the website is designed only for a matching service, which enables the users contact with the lenders and third parties. The website does not charge any fees for its service, nor does it oblige any user to initiate contact with any of the lenders or third parties or accept any loan product or service offered by the lenders. All the data concerning personal loan products and the industry is presented on the website for information purposes only. does not endorse any particular lender, nor does it represent or is responsible for the actions or inactions of the lenders. does not collect, store or has access to the information regarding the fees and charges associated with the contacting lenders and/or any loan products. Online personal loans are not available in all the states. Not all the lenders in the network can provide the loans up to $3,000. cannot guarantee that the user of the website will be approved by any lender or for any loan product, will be matched with a lender, or if matched, will receive a personal loan offer on the terms requested in the online form. The lenders may need to perform credit check via one or more credit bureaus, including but not limited to major credit bureaus in order to determine credit reliability and the scopes of credit products to offer. The lenders in the network may need to perform additional verifications, including but not limited to social security number, driver license number, national ID or other identification documents. The terms and scopes of loan products vary from lender to lender and can depend on numerous factors, including but not limited to the state of residence and credit standing of the applicant, as well as the terms determined by each lender individually. 


APR (Annual Percentage Rate) is the loan rate calculated for the annual term. Since is not a lender and has no information regarding the terms and other details of personal loan products offered by lenders individually, cannot provide the exact APR charged for any loan product offered by the lenders. The APRs greatly vary from lender to lender, state to state and depend on numerous factors, including but not limited to the credit standing of an applicant. Additional charges associated with the loan offer, including but not limited to origination fees, late payment, non-payment charges and penalties, as well as non-financial actions, such as late payment reporting and debt collection actions, may be applied by the lenders. These financial and non-financial actions have nothing to do with, and has no information regaining whatsoever actions may be taken by the lenders. All the financial and non-financial charges and actions are to be disclosed in any particular loan agreement in a clear and transparent manner. The APR is calculated as the annual charge and is not a financial charge for a personal loan product. 

Late Payment Implications

It is highly recommended to contact the lender if late payment is expected or considered possible. In this case, late payment fees and charges may be implied. Federal and state regulations are determined for the cases of late payment and may vary from case to case. All the details concerning the procedures and costs associated with late payment are disclosed in loan agreement and should be reviewed prior to signing any related document. 

Non-payment Implications

Financial and non-financial penalties may be implied in cases of non-payment or missed payment. Fees and other financial charges for late payment are to be disclosed in loan agreement. Additional actions related to non-payment, such as renewals, may be implied upon given consent. The terms of renewal are to be disclosed in each loan agreement individually. Additional charges and fees associated with renewal may be applied. 

Debt collection practices and other related procedures may be performed. All the actions related to these practices are adjusted to Fair Debt Collection Practices Act regulations and other applicable federal and state laws in order to protect consumers from unfair lending and negative borrowing experience. The majority of lenders do not refer to outside collection agencies and attempt to collect the debt via in-house means. 

Non-payment and late payment may have negative impact on the borrowers’ credit standing and downgrade their credit scores, as the lenders may report delinquency to credit bureaus, including but not limited to Equifax, Transunion, and Experian. In this case the results of non-payment and late payment may be recorded and remain in credit reports for the determined amount of time.