Do payday loans go on your credit report?
Payday loans may be reported to the credit bureaus and appear on your credit report if you default on the loan and the lender takes legal action to collect the debt. When a lender takes legal action to collect a debt, they may obtain a judgment against you in court. If this happens, the judgment may be reported to the credit bureaus and appear on your credit report.
A judgment on your credit report can harm your credit score and make it more difficult for you to obtain credit in the future. In addition, if you default on a payday loan, the lender may also report the default to the credit bureaus, which could negatively impact your credit score.
If you are having trouble paying back a payday loan, you must contact the lender and try to work out a repayment plan before the loan defaults. Defaulting on a payday loan can have serious financial consequences, including wage garnishment and damage to your credit score. If you cannot repay the loan and face legal action, it may be a good idea to seek legal advice to understand your rights and options.