Can a Paycheck Loan help my Credit?

Are you finding yourself in need of a car repair and have no money put aside for such an emergency? If you get your car repaired you won’t have enough money to pay the credit card bills on time. This is one time that borrowing a little money and paying some interest (or a fee) might be worth the trouble.

If you don’t find a way to at least borrow the money to pay the credit card bills you could have problems for the next 4 years. If you don’t make your payments on time the credit card companies will report your late payment. Each Credit Bureau reports those late payments and since this history makes up 35% of your credit score, each late payment hurts your credit score in a large way. Not only does it really hurt your credit score, it can do so for up to four years. Some Credit Bureaus report that payment history for up to four years and at least two years.

It certainly is better to have paid your credit card bills on time (even if it is only the minimum payment) than it is to have a late payment. Even if you call your credit card company and make arrangements to pay your bill late that does not mean that they won’t report your payment late. They will report that tardiness to the credit bureaus and leave you with a damaged credit score.

So no matter what you do make that credit card payment on time to keep your credit score up. Paying a small fee for borrowing money from a paycheck loan place is better than allowing your credit score to be damaged. That damage could cost you thousands of dollars but could all be avoided by borrowing a little to make those payments on time. Keep your good credit on track.

About the Author:

Mel Jensen is a retired Customer Service Manager with Ovation Credit Services.