If you need an emergency cash loan in Florida to handle urgent expenses, you may worry about the effect of this loan on your credit score. However, you do not have to worry about Florida payday loans affecting your credit score.

In this guide from Fast Payday Loans, Inc., we will explain Florida payday loan effects on credit. We will explain why Florida payday loans do not affect your credit and how those with bad credit can still get this emergency cash loan to pay for urgent bills.

How Do Credit Bureaus Calculate Credit Scores?

Before we can explain the impact of payday loans on credit in Florida, it’s essential to understand how the major credit bureaus calculate your credit score. The three major credit bureaus are TransUnion, Equifax, and Experian. They calculate your credit score based on a number of factors having to do with your financial health, open credit lines, and debt.

While nobody knows the specific algorithm, we know they use a mixture of the following information:

• The number of open credit lines
• The value of your open credit lines
• The age of your open credit lines
• Your on-time payment history
• The balance of funds taken from each open credit line
• The utilization rate of your available credit
• Your income
• The number of credit checks

How much you use your available credit (your utilization ratio) and your payment history are the biggest factors affecting your credit score. Keeping your credit card balances low and making on-time payments will help boost your score. On the other hand, maxing out your cards or missing payments can hurt your credit.

What Can Impact Your Credit Score?

A bank loan, credit card, student loan, and mortgage can impact your credit rating because each involves reporting to the three major credit bureaus. When you apply for a loan or line of credit with a bank, the bank contacts one of the three major credit reporting bureaus to determine your credit score and analyze your report.

Whichever bureau they talk to uses the criteria discussed earlier and puts them into their algorithm to calculate your score. They report this number to your bank. The bank uses the information in your credit report to determine whether your credit situation is "worthy" of the loan or line of credit you want.

Credit Score And Payday Loans In Florida: What You Need To Know

Now you know what lines of credit and loans can affect your credit rating in Florida. What are the Florida payday loan effects on credit? You'll be surprised to learn that this type of Florida emergency cash loan does not affect your credit the same way as traditional banking loans.

The following are some things you should know about credit scores and Florida payday loans:

Does A Payday Loan Affect Credit In Florida?

Florida payday loans will not appear on your TransUnion, Equifax, or Experian credit report because payday lenders don't report them to the credit bureaus. The reason for this is the short-term nature of Florida payday advances. They are meant to be repaid quickly, which does not align with credit reports meant to capture your long-term credit history.

This is one of the primary determining factors that lead people to choose payday advances over traditional loans. Those with bad credit may not wish to get a traditional loan because it can further damage their poor credit score. Payday loans do not have a credit impact, so bad credit borrowers can receive emergency cash without worrying about lowering their credit.

You Can Get A Florida Payday Advance With Bad Credit

The short-term nature of the loan also allows bad credit borrowers to get approved for Florida payday loans. Loan lenders like Fast Payday Loans, Inc. will not report your payday advance to credit agencies, and they also allow borrowers to have good credit, bad credit, or no credit at all.

A loan lender may perform a soft credit check, but your score will not affect whether you can get approved for the emergency cash loan. At Fast Payday Loans, Inc., we look for other factors to see if you can get approved for an FL payday loan, such as proof of recent income and a checking account.

Does Payday Loan Repayment Affect Your Credit Score In Florida?

Payday loan repayment will not affect your credit score without any credit bureau reporting. If you are looking to get an easy loan to repay to boost your credit score, Florida payday advances will not help. Paying back your Florida payday loan on time will not increase your credit score because loan lenders do not report your score to credit bureaus.

However, there are cases where failing to repay your payday loan can affect your credit. Failing to repay a payday loan can negatively affect your credit score if the debt is sent to collections. This means the original loan lender has given up collecting payment and will transfer the debt to a collections agency, which can severely damage your credit score.

The Process For Getting A Florida Payday Loan

Payday loans do not affect your credit score, making it an appealing emergency cash option for those with bad credit. Fast Payday Loans, Inc. in Florida has an easy process for those who need quick cash to handle a financial emergency. Our approval process is straightforward and takes less than a day to complete.

The following are the steps in the approval process for getting a Florida payday advance:

• Fill out the online inquiry form on our homepage
• Answer a phone call from one of our loan agents
• Verify your basic information and agree on a location for the in-person meeting
• Gather your required items and go to the meeting location
• Have the loan agent verify your requirements
• Give your vehicle over for a quick inspection
• If approved, sign loan documents
• Receive your fast cash the same day or the next business day

Get A Florida Payday Loan From Fast Payday Loans, Inc. Today!

At Fast Payday Loans, Inc., we allow borrowers of all credit types to get approved for fast cash with our payday loans that do not affect your credit. You can start the process online and get approved without needing an in-store visit or giving up your car.

Get a payday loan without affecting your credit today by filling out our online cash advance form. Hear soon over the phone from one of our friendly loan associates, who will guide you through the instant approval process for Florida payday advances.

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