Do Payday Loans Affect Your Credit Score?

If you take out any kind of credit, whether it’s a payday loan, credit card or something else, it will have an impact on your credit score – a score financial providers take into account when they decide whether to lend money to you – in some way.

It’s true that payday loans have a higher APR when compared to other loan types such as credit cards. If you fall behind on your repayments, this could affect your credit score, just like any type of credit.