GET DEBT FREE

First Name

Last Name

Phone

State

Debt Amount

Type Of Debt

Storefront Online Both

By checking this box, I verify that this is my mobile number and that I give my express authorization to receive recurring text messages, telephone calls dialed manually or by auto-dialer, and prerecorded voice messages for marketing purposes from greendayonline.com, its affiliates, marketing partners, subsidiaries or agents, even if the number is listed on any internal, federal or state Do Not Call registry list. I understand I am not required to provide my consent as a condition of purchasing any products or services. I further understand I can revoke my consent at any time and my provider may charge me for these messages. Message and data rates may apply.

By clicking on Get Quote Now!, I agree to the Terms of Use, Privacy Policy and ESIGN Consent

Will Payday Loan Consolidation Hurt My Credit?

We sometimes have questions to ask about payday loans and debt consolidation. Payday loans are a quick way to borrow cash for unexpected expenses. These loans can be repaid on the next payday.

Although this may seem like a great way to solve cash flow problems, payday loans can quickly become a problem if they are not repaid within the first pay period.

Credit and payday loans: What they can do to your
credit

Lenders don’t report payday loans to major credit reporting agencies. If the borrower defaults, it is debt collectors that take over. Once the collection agency has purchased the debt, it is able to report it to credit agencies.

Payday lenders may file lawsuits against borrowers if the loan isn’t paid. Non-payment of loans may be grounds for lawsuits by payday lenders.

This judgment could show up on your credit report. This could negatively impact your credit score. Other lenders could use this information to report your history of payday loans.

There are many options for payday loan relief

Consolidating your debt can make it easier to pay off any payday loan debts, or any other debt. But, “debt consolidation”, can also refer to two things. Both should not have an impact on your credit score, but one will.

What is the difference between debt settlement and
consolidation?

A debt consolidation loan is a way to consolidate debts. A bank will grant one loan to pay off all the other loans. Consolidation loans have a lower interest rate, but they are generally available for a longer time.

Consolidated loans offer a shorter repayment term and lower interest rates than traditional loans. Consolidated loans will make it easier for you to manage your debt payments. Consolidation loans can show you how much debt you paid in full, according to credit reports. This is a good thing.

Many people refer to debt consolidation as part of a debt settlement plan. Consolidation involves making one payment to a company, which will then
distribute the amount to your creditors.

A debt settlement company can negotiate a lower settlement than the original agreement.

Choose a Reputable Company

Do your research before you sign up for a debt consolidation plan. It is crucial to understand the type of program or loan it is.

It is your responsibility to ensure that you make payments on time. You will be notified if the company that you used to pay for you does not pay.

Tags

advertiser disclosure, affects your credit, credit counselor, debt management plan, debt relief, good credit, high-interest rates, lines of credit, loans amounts, monthly payments, fast personal loans

Author
Recent Posts

Jason Rathman

Financial Expert at GreenDayOnline

Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.