25 May 2020

Taking out a payday loan shouldn’t negatively affect your credit score if you stick to your agreed payment plan and make all the necessary repayments on time.

By taking out a payday loan, the loan will appear on your credit report for other lenders and companies offering credit services to see, and if you make all of your repayments on time, this can have a positive impact on your overall credit score.

It’s important to remember though that each individual credit agency and every company offering credit services will take their own view of how to interpret an individual’s credit file. So, whilst repaying a loan on time and in good order can help you to build a good overall credit score, it is never a guarantee.

Does paying back payday loans build credit?

Credit scores can only exist if you actually take credit out at some point, and for most lenders, a positive credit score is better than no credit score. By taking out a payday loan and meeting all of your repayments on time, you could begin taking some steps towards building a positive overall credit score.

Do payday lenders check credit score?

As payday loans direct lenders, at buffa we conduct a thorough eligibility credit check of each loan applicant to ensure they are in a position to make their loan repayments appropriately.

We will give you an indicative initial decision* based on a pre-eligibility check and if you decide to proceed with the application then we will perform the formal credit check which will be visible to other credit providers and will appear on your credit file.

It’s important for payday lenders to check your credit score because it would be irresponsible to lend to someone who might not be able to meet their repayment commitments, which may result in a negative impact on their credit score and ability to keep up with their repayments.

How to get a UK payday loan with bad credit

If you have a poor credit score, you can still be considered for a payday loan with buffa. To get a payday loan with bad credit, simply fill in our online application form, providing all of the relevant details (including your phone number, email address, bank and debit card details, as well as your address history for the past 3 years). The address history information is particularly important, as we use this information for our pre-eligibility credit check. We then consider each application on its individual merits and will not discount you just because you have a less than favourable credit history.

For more information on getting a payday loan with bad credit, visit our loans for bad credit direct lenders page.

* We will, upon receipt of your fully completed loan application, provide you with an indicative loan application decision, which will have no impact on your credit score. At the point where our decision is presented to you, you will be able to choose whether to proceed with our loan offer, which will allow us to conduct any required further checks. By proceeding, you will be agreeing to a full credit check being performed against your profile and a subsequent record of this will be made against your credit file.