Do Payday Loan Businesses Report to Credit Bureaus?
The answer to this question is: it depends. If you utilize a payday loan service and pay back the loan as agreed, it is highly unlikely that your prompt payment would be reported to a credit bureau. Your credit score is used to determine your credit worthiness over a significant span of time. Reporting to a credit bureau after making good on this short term loan would be a waste of time for all involved. It does nothing to establish your credit worthiness. Even worse, if payday lending businesses did report to credit bureaus, one could easily imagine a scenario where utilizing a payday loan would hurt your credit score because it means that you are strapped for cash and have a risky financial situation. Conversely, if you utilize a payday loan service and fail to pay back your loan as agreed, the fees will begin to pile up. Depending upon the duration of time in which you fail to pay back your short-term loan and the amount you owe on the loan, the payday loan company may report this a
