Pay day advances to improve your credit?

Question

I just took a payday advance cause I actually need it right now but they told me that they report to my credit and I can turn it into an installment loan how long should I leave it on my credit as an installment loan before paying it off. My credit is pretty bad due to old errors when I was younger. I have paid on my car for a year and a half never late and it is getting better little by little but I just realized this is a some what sound way to build my credit as my weekly payments can be relatively low. I get paid weekly and they only require bi-weekly payments My question is how long should I do this before I see an improvement in my credit?

Answer 1

Finance is what I do for a living and while it's true most payday loan companies do report to the credit bureaus and they are considered installment loans.

In reality while this may help raise your score, when a lender looks at your report and sees payday loans this is a red flag saying that you are not good at managing your money.

Unless it a matter of feeding your self or your family, never use payday loans.

Answer 2

Payday advances are never a good idea. You are better off getting a credit card for people with poor credit that has a small annual fee attached. If you are unable to pay off the pay day advance you will be tacked on with very high fees which can create high problems for you that can put you back farther than you were in the first place.

http://greatcreditoffers.newcreditapplications.com has some credit cards for those that are trying to rebuild their credit. They may be free or have a low yearly fee, but the fees are smaller than payday advances and don't require you to pay off in full if you can't afford to do so. Of course, your best best is to only use what you know you will be paying back the next month for about a year or two. Getting deeper in debt is never a good idea. I hope this helps.

Answer 3

I suggest you run don't walk to the payday loan office and repay your loan asap. I've read countless articles that talk about how difficult it is to get out of this hole. I also have a friend who has used these loan sharks in the past and he has finally learned his lesson. Repairing/rebuilding credit doesn't happen overnight. Continue making on time payments on your car and when it's paid off try to get a credit card but only if you understand you need to pay the balance off every month. Check your credit report and score at least once a year. The report is free but to get your score will cost a small fee. Don't sign up for the "free" credit score you see online, you have to sign up for a service that will cost you more than the fee to get your score.

Answer 4

Winters in Buffalo is carefully maximum options-blowing. Your mastercard has a grace era for all purchases. locate out what that is, placed the money you'd be pre-paying your mastercard into an interest-bearing account, make money off them (through allowing them to personal loan you the money for free) and pay off the cardboard before the grace era ends and interest accrues. Even extra positive, get a rewards card and play a similar interest. i have made about $500 utilising my mastercard the previous six months. in case you nonetheless favor to proceed your pre-paying practice notwithstanding, please do no longer hear to the individuals telling you that wearing a stability is the purely thanks to advance your credit status. it isn't real. between the most important aspects on your score is your debt to credit ratio on your revolving lines (like a mastercard). at the same time as that is at 0% utilization (as yours is through not in any respect wearing a stability), your score is optimal. A credit status isn't something more suitable than a picture at a particular time of ways good of a threat you're. once you've a historic past of paying all of your expenditures on time, you're a good threat. once you carry credit playing cards yet do not actively carry balances and owe others money, you're an excellent extra positive threat.

Answer 5

They lied. you will probably see VERY little ( we are talking a few points) in improvment...... That is if it didn't over load you on your debt to income points
Run a way from payday loans, I have more clients in bankruptcy because of access charges
Kourtnie
Prosperityfinancial.org

Answer 6

I would pay off the payday loan asap.

Answer 7

You are in an extremely high interest rate trap, no pay it off and stay away from them, in the long run you will go broke, and end up ruining your credit further.