Payday loans: build a good credit score and start credit repair

A sign on the street advertising credit repair

Getting a payday loan and paying it back on time can help build a good credit score and preserve good credit in a financial emergency. Flickr photo.

A good credit score is a major quality of life issue for everyone. Building good credit or fixing bad credit isn’t complicated. It’s a simple two-step process. First, always pay all bills on time. Second, borrow money and pay it back. Sometimes a payday loan can help build, preserve or rebuild a decent credit score. With good credit preserved through smart payday loan use, a person can get better deals, it’s easier for them to lease apartments and most importantly, its easier to get hired for a better job when the employer sees a good credit score.

Credit repair starts with a credit report

To build good credit or start credit repair, people have to know their credit score. is the official government site to help consumers to obtain their free credit report. Sometimes credit scores contain mistakes that are no fault of the individual. These errors can damage credit and quality of life for a long time if left undetected. Everyone should check their credit reports at least once a year to be sure all the information is correct. Correcting errors in credit reports can take some time, so it should be a top priority for a person trying to build good credit.

Money loans build credit

Money loans factor most in a good credit score. In the current economic climate, banks are very reluctant to make money loans and can’t be considered a reliable source of borrowing for most people. A good alternative is responsible credit card use. Request one and use it frequently. But check the fine print on any credit card offer and only choose one with no annual fee and a low interest rate. Don’t ever keep a balance on the card. Paying off the entire balance every month avoids interest charges and shows good personal financial management.

I need money now

Building a good credit score by paying rent, utility bills and credit card balances on time always works perfectly on paper. But sometimes real life throws a monkey wrench into the most carefully made plans. The car dies. A child gets injured and needs emergency care. A toothache turns into a root canal. So now what? A late credit card payment can cost a fortune in penalties and interest. If the check written to make that credit card payment on time bounces, the bank pounces with an outrageous NSF (non-sufficient funds) fee.

pay day loans

To protect a good credit score in an emergency, a payday loan can a practical option. Payday lenders provide a valuable service and are reasonable when compared to default fees of mainstream lenders. For example a $100 payday advance commonly comes with a $15 fee. Compare that with a $100 bounced check with $48 NSF fee. A payday loan can avoid that bounced check fee and the credit report damage that comes with it. Plus, borrowing the money, and paying it back on time maintains the progress being made on building a good credit score.

Short term loans

The quickest, easiest way to protect a good credit score in an emergency is an instant online loan. Hundreds of direct payday lenders competing to make payday loans can be found online. A quick ten minute payday loa form leads to cash in the bank account the very same day. But the borrower must always stay on budget and pay in full at the end of the term, usually 14 days. The peace of mind restored with a payday loan can quickly become another set of problems if it’s not paid back on time.

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.