Taking out a loan, in some cases, can help your credit score. While some lenders may view taking out a payday loan as a sign you’re struggling, paying a payday loan back on time could show a potential lender that you are reliable in repaying loans and debt. Failing to pay a loan back would, however, negatively affect your credit score. Sometimes it is better to consider improving your credit score so you can find a better or cheaper form of credit.
