Will Payday Loans Help My Credit Scores?
No, payday loans will absolutely not help your credit scores! Actually, having payday loans on your credit file will lower your credit scores. The more payday loans you have on your credit report the worse it is for your credit scores. These loans are typically for people who cannot get funding elsewhere. That is also why these are also known as “hard money loans.”
Think of it this way; if you were in the business of loaning people money that you never had the opportunity of meeting would you want to see that they frequently go to these little finance companies to get payday loans? No, you would not. It is an indication that this person is not doing so well financially, thus making you and other creditors less likely to want to loan money to this person. The credit scoring mechanism that computes and generates your credit scores is programmed accordingly. So, stay away from them!