'Can you use payday loans to boost your credit rating?' blog discussion

MSE_Martin

camaj wrote: »

I was wondering the same thing. My main question is whether this is easier to get than one of those credit-cards. You would imagine so.

The other question is whether it helps. It seems so but I don't understand why Martin says the help would be "very minor"?

Its minor because its a small one off transaction

Unlike a repeated behaviour of a credit card (remember its all about behavioural prediction)

JimmyTheWig

I guess it also depends on how good your credit rating is to start with and what you are trying to achieve.
If your credit rating is shot to pieces then a few of these transactions (maybe decreasing in value over a few months?) might be positive. It might help you get an entry level credit card.
But if your rating is pretty good and you need "just a little something extra on your credit report" to apply for that mortgage which appears slightly out of your reach then I think it would probably be a negative.

camaj

I imagine that wouldn't do this unless your rating is bad. If you have an okay rating I'd imagine you'd get a credit card etc.