Consumer credit scores are used to determine everything from job and housing eligibility to loan approvals and insurance premiums. They're critical, so most people go out of their way to avoid doing damage. As such, many borrowers assume traditional banks are their only option besides going into debt. But the truth is much more convenient than that.

Payday loans let people borrow money before their next paycheck comes in. The option is fast, efficient, and one of the best ways to get cash fast without waiting at the bank. So, does a payday loan affect your credit rating or not? Let's find out.

What To Know About Payday Loans and Your Credit Rating

When Does a Payday Loan Affect Your Credit Rating?

A standard payday loan won't directly affect your credit because the lender does not use your credit report to approve your application. Instead, your statement of income is reviewed as the primary requirement. So, a payday loan only affects your credit when you don't use the money from it wisely.

For example, say you're facing eviction if you don't pay your rent on time. You get up to $300 in a payday advance but squander your money on less important things. Not only will you get kicked out of your house, but your credit score may plummet as a result. Thus, it's crucial to spend your money on vital expenses after it hits your bank.

TIP: Create a flexible budget to help calculate how much extra money you need each month. Then, track your due dates to ensure on-time payments each period.

How Does a Payday Loan Affect Your Credit Rating If It Doesn't Go on Your Report?

Payday loans help you prevent common money problems that can lead to significant drops in your credit score. Not being able to pay your bills on time may seem like a small problem right now, but try approaching major banks with a less than perfect rating later on. You'll get turned down for auto loans and mortgages more often than not.

On the other hand, payday loans can help protect your budget even in the face of adversity. Credit blunders are often because of temporary shortages in cash, misalignments in paychecks or due dates, and unexpected expenses. Meanwhile, paycheck advances can help fill those gaps and may even prevent unnecessary negative marks altogether.

NOTE: Applying for loans through a traditional bank can harm your credit even if you don't get approved. Asking for money creates a hard inquiry on your report, thereby lowering your scores over time.

Does a Payday Loan Affect Your Credit Rating if You Get It Online?

Most easy things in life come with a catch, and that's why many people are skeptical about online payday loans. So, while their concerns may be legit, virtual applications can be just as efficient as old-school paper forms. The key is to do business with a company that knows how to handle a large influx of money-hungry, credit-worried consumers.

Keep in mind, however, that not all online payday loan sources are trustworthy. That means your credit rating could get compromised through file tampering, hacking, or identity theft. Therefore, only give your information to payday loan lenders that have brick and mortar locations as well as an online presence. Cash Cow. is one of the verified and trustworthy loan lenders in Louisiana. So, if you’re looking for a payday loan in LA, Cash Cow is the place to go.

TIP: Call us on the phone to speak to a live agent or use a virtual chat feature to ask any questions you may have.

How to Get the Best Payday Loans Without Affecting Your Credit

Don't let all your work fly out the window just because you're a little short on cash this week. Instead, let Louisiana payday loans get you out of trouble and back on your feet. The flexible repayment options can also help you restructure your budget and avoid this situation next time. Here's what you need to do now:

1. Go the Main Page of this Website and Submit an Online Form

Cash Cow is Louisiana's premier payday loan provider, with a short intake form on the website and preliminary approvals given within 30 minutes or less. To start the process, all you need to do is fill out an online form located on the top left of the Main Page. Talk to an agent for more detailed instructions. Keep in mind, however, that you must be at least 18 years old to qualify.

2. Gather Your Required Information Ahead of Time.

Payday loans in Louisiana are designed with simplicity in mind, so this is all you'll need to get approved:

• Your most recent pay stub from work
• Your driver's license or a government-issued photo ID
• A blank check from an active checking account in your name

Notice how a copy of your credit report isn't required? You won't have to worry about a drop in your score if you take the money.

3. Spend the Money on Vital Expenses.

Target your oldest and largest debts to create more room in your monthly budget. Then, get another payday advance after paying off the first one so you can do it all over again.

Get Started with Your Louisiana Payday Loan Today!

So, does a payday loan affect your credit rating? Yes and no. If you make wise money decisions, then you can keep your credit score intact.

And if you feel like being ready for extra cash to deal with urgent financial issues, then don’t wait and get the process started today with Cash Cow!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.