Payday loans are not reported to the big 3 credit bureaus. This is because there are no hard credit checks performed by payday lenders. Rather, lenders consider recent income history (and near term income) as the primary factor in approving a payday loan. It has proven to be the best indicator of a borrower’s ability to repay the loan. As a result, there is no immediate impact on a borrower's credit score.
CashOne is a referral source, so we do not report any information about payday loans on credit reports. Most lenders also do not report unless there is a default. It is usually a collection agency that would report the default if they could not work out a settlement with the borrower. Note: Many collection agencies do not bother seeking judgments but rather threaten to do so to try to get the borrower to settle the account. The reason is that getting a judgment costs time and money and often does not result in any payment for the debt.
Read more: https://www.cashone.com/blog/do-payday-loans-go-on-credit-report
Robin Williams is an Executive at CashOne, which serves to connect consumers across the U.S. quickly with its authorized lender network for payday loans online. Robin has more than 20+ years’ experience in Administrative Management, with several years in the lending industry.