Cash Advance Credit | A Closer Look
The main reason you may have to turn to a cash advance company when you need a little extra money may be because you have less-than-perfect credit, but you likely do not know just how relative your credit score and cash advance services may be. It is quite common for people to utilize these short-term payday loans to actually give their credit a little boost. Here are a few of the biggest questions you may have about boosting your own credit by using cash advance services on occasion.
Are your transactions with a payday lender always reported on your credit?
Not every payday lender or cash advance service will report your transactions to credit bureaus, but many of the most reputable companies do. Therefore, if you are looking to take out loans for the main purpose of boosting your credit, it is a good idea to ask up front if the transaction will be reported. Additionally, if the lender knows upfront what your intentions are, they may be able to make recommendations on loan products that will give you an even greater positive outcome. For example, some lenders offer installment loans in addition to payday advance services.
Is it true you can use cash advance loans as an example of payment history?
A lot of customers enter into a payday loan agreement thinking that the only reflection on their credit would be a negative one if they did not repay the loan in a timely manner. However, this is actually only just a big misconception. Accounts in good standing are often reported just the same, especially those with customers who have taken installment loans with the company. On your credit report, it will show that you had a short-term loan and paid it off on time.
Is it logical to use cash advance loans to pay off small debts?
If you have outstanding loans or credit card debt, it can sometimes be a good idea to take advantage of cash advance loans to pay off these debts. This is especially true if you need to get outstanding accounts paid off when you are trying to get a larger loan, as some traditional lenders frown on applications from customers who have too many open balances of debt.
When you fully understand the advantages of using cash advance services to boost your credit, it is easy to see that you have a new outlet that could allow you to have an advantage as the consumer. Talk to a cash advance lender for more information about boosting your credit rating through payday loans.