Do Payday Loans Show On Your Credit Report?

Most of us worry about what shows up on our credit reports because they do kind of make or break our chances to have any form of financial aid, but you’ll be pleased to know that payday loans don’t usually affect your credit score in any way.

Here’s what you should know about these types of loans and how they can reflect on your financial situation and your credit score.

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What Are Payday Loans And Why Do People Use Them?

As you can probably tell by the name, these are not your typical “I need a lot of money for school/home/car loans”. No. These work slightly differently.

Payday loans are exactly as they sound – paycheck-to-paycheck financial aids. They are short-term, high-interest loans that people usually take out when they’re in a bind and need some quick cash.

The terms are generally two to four weeks, and the amount you can borrow is based on your state’s laws and your salary.

How Do Payday Loans Work?


These things are pretty simple actually.

All you need to do is fill out an application, provide basic personal information and supply the lender with your pay stubs so they can see your current income. That’s literally it.

A lender won’t perform any background or credit checks, so even if you have bad credit, you can still qualify for a loan in a matter of minutes.

Are There Any Risks?

Considering how smooth and effortless the application process is, it’s no wonder that people often find themselves in a bit of trouble with payday loans.

The thing is, these types of loans come with extremely high-interest rates – sometimes as high as 800% in APR – which can quickly turn a small loan into a crippling financial burden. That’s why you’ll often hear these described as predatory or loan-shark-like.

However, that’s only if you don’t do your research.

Any reputable lender like SpeedyCash is completely legit and won’t try and bleed you dry even if things somehow end up sideways.

So, there are risks associated with these things, but then again, if you’re careful and you don’t rush into anything – you should be more than fine.

Do Payday Loans Show Up On Your Credit Report?


Thankfully, payday loans don’t show up on your credit report at all.

They are not considered to be “instalment loans”, meaning that they’re not lumped in with other types of long-term debt like mortgages, for example.

Instead, these things are treated as ‘cash advances’ and will only appear on your report if you have failed to repay them, in which case, you’ll probably be more worried about the interest rates.

Can You Get A Payday Loan With Bad Credit?

We’ve mentioned a moment ago that it is extremely easy to apply and qualify for a payday advance. However, we didn’t say anything about whether you can just as easily secure it or not.

The answer is – yes, yes you can. It’s super easy to get it.

In fact, people with bad credit are often the ones who turn to payday loans in the first place. And that’s because there are no credit checks involved in the application process.

The only thing a lender will look at is your current income and employment status to see if you can afford to repay the loan on time.

Whether or not is it smart to get one of these is a conversation for another time, but the point is that you can get one even if your credit score isn’t the best. In fact, it could be abysmal. You’d still get the money.

What To Do If You Can’t Pay Back A Payday Loan?


Our advice is that you don’t get into this whole thing unless you’re absolutely certain you will be able to pay the whole thing back in time. But, in case something unexpected happens, and you find yourself in a tight spot – don’t worry.

There are a few things you can do.

The first is to contact your lender immediately and try to work out some kind of payment plan or extension. This way, you’ll avoid any late fees or penalties, and you’ll give yourself some extra time to come up with the money.

This is what’s known as a rollover, and to be fair – we’d advise against it.

The better thing to do is to call up the lender and inform them you won’t be able to make the payment and don’t go for any kind of rollover, extension etc. Instead, once you finish up the conversation with the lender, you call up your back and instruct them to block all automatic outgoing payments.

After that, you’re pretty much in the clear. The only thing left to do is to make sure you repay the debt as soon as possible to avoid any interest charges.

Can You Pull Out Of The Deal?

This might come as a surprise, but yes, you can.

You do have a 14-day cooling-off period during which you can change your mind about the whole thing and return the money with no questions asked.

Now, this only applies if you haven’t used all of the money yet. So, if you’ve already started making purchases with the loan – you’re out of luck.

The good thing is, you will only pay the interest on the funds you’ve used up, so don’t go and spend it all in one go just because you can. Wait 13 days, and if it so happens you don’t need the money – call off the deal.

What Will Happen If You Don’t Pay Back A Payday Loan?


If you don’t repay the debt, the lender will contact you and try to collect the money. If they can’t get ahold of you or if you continue to ignore them – they will eventually pass on your debt to a collections agency.

Once that happens – things can start getting really ugly.

The collection agency will start calling and texting you non-stop, and they might even show up at your doorsteps demanding the money.

If that doesn’t work, they might take legal action against you which could ultimately lead to having your assets seized.

So, be wise and pay on time.


As you can see, there’s a lot to consider before taking out a payday loan. They can be super useful and are super easy to secure, but make sure you understand all the risks and implications before making any decisions.