Can Payday Loans ever help your credit rating?

WillBeDebtFree

I have had several of these over the past year, every time paying it off earlier than the agreed date.
What I wondered, can a Payday loan, such as Wonga, ever be a positive on your credit record?

Small_Loan_Turns_Big_Debt

From what I've experienced and I can say considering at one time I had about 6 at once on the go... They do not even get put on your credit rating at all!
Neither good or bad!
So if you want to improve your credit rating why don't you just get something like a credit card and only spend a couple of pounds a month on it and then pay it off at the end of the month and that will help!

I got a Barclaycard Initial and it worked for me!

You could even search on here for a low rate APR and some even give cash back when you use them, I think something like 5 % so you could even end up paying less on your bill at the end of the month! It can pay off!

I think there will be tones of advice on here about credit cards that can help build credit.

Hope that helps!

Try and stay away from payday loan companies though!!! Bad idea!!!

Heffi1

Payday loans are seen as a last attempt to get credit by someone who has been turned down elsewhere, so I would say they have a negative impact on your credit file, even if you manage to pay them off each time, they are seen as you being desperate for money that you cannot get from a high street lender therefore you may be more of a risk to lend to.

A bit harsh I know, but thought you would want it straight.

eyeopener2

That isn't harsh, that is the truth.