If you repay your payday loan when it’s due, it won’t affect your credit at all. That’s because payday lenders don’t carry out a check of your credit score before approving your loan application.
But if you delay payments or default on your loan, your credit could be affected. Bounced checks, and your payday loan going into collections will pull your credit score down. In a worst-case situation, the lender could go to court and get a judgment against you. This will remain on your credit record for up to seven years.