How much can a payday loan that reports to the 3 bureaus help my credit score?

February 16, 2012 by admin · 5 Comments
Filed under: Bob's World 

I recently saw an offer to get a payday loan that reposts to the big 3 credit agencies.

How much can getting payday loans and paying them off on time REALLY improve my credit score?


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Comments

5 Responses to “How much can a payday loan that reports to the 3 bureaus help my credit score?”
  1. bdancer222 says:
    February 16, 2012 at 6:57 pm

    It’s surprising that a payday loan would even report to a credit bureau! It probably wouldn’t help your score much since payday loans are short term. There wouldn’t be much history to report.

    Payday loans will cost you a fortune in interest. The APR is in the 600%+ range. This would be a really bad way to try and build credit.

  2. My Take on It says:
    February 16, 2012 at 7:11 pm

    Why on earth would you even consider doing that?

    I would really question whether this payday lender is truly reporting to the credit bureaus. Most payday lenders do not.

    You would do better to save up $300 and go to your bank and open a secured credit card.

    Volunteering to be charged 600% interest so you can get a credit score is a hefty price to pay.

  3. timothy p says:
    February 16, 2012 at 7:34 pm

    Alternative lenders reduce your credit score. So not only will your score drop, the damage will remain on your report for 7 years. Pay insane interest and fees on time and hurt your credit??? This is the best case scenario.

  4. Katrina Derrico says:
    February 16, 2012 at 7:47 pm

    Having a sub-prime lender on your credit report (especially an active account) can actually hurt your credit more than it can help.

    I recently ran across some Credit Unions that are offering credit rebuilder programs – bank account, secured credit card, and small secured signature loans. This is prob. a better option if you could save up $200-500 it would get you started. For more info and links to the programs go to – Secrets to Improve Your Credit – http://secretstoimproveyourcredit.blogspot.com/ – and scroll to the links at the bottom of the blog.

  5. Ray S says:
    February 16, 2012 at 8:46 pm

    they don’t report, only when you don’t pay them, after today 7-21-10, with the new financial reform bill, they will be going the route of the hula hoop and mood rings

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