Posted on Dec 3, 2018

Achieve Finance

Do Payday Loans Affect Your Credit Rating?

Protecting your credit score is a big deal – especially if you’ve worked hard in managing your finances and building your rating. One of the biggest questions when it comes to payday loans online is whether or not such can affect a person’s credit rating.

Now, why such a question? Well, a negative credit score can leave you facing several other problems – including struggling to obtain future credit. Furthermore, obtaining a personal loan online, financing an engagement ring, getting a car loan and even requesting a bank overdraft with bad credit can all become difficult if dealing with a poor credit rating.
Do All Lenders Verify Credit Score?

If you are dealing with a regulated lender, chances are they’re going to verify your credit score. In general, this is either completed through a “soft credit check” which doesn’t affect credit score or a “hard credit check” which, on the other hand, leave a mark on your rating. In other words, a soft check gives a lender a good idea about the risks in lending money to you while a hard check provides a definite answer.
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