Can taking out a payday loan affect my credit score?

Taking out a direct payday loan will almost always have an impact on your credit score. Depending on how a creditor performs their checks and because we have to run a credit check before we can accept your application for a payday loan, this will show on your credit report and can affect your credit score.

If you don’t have a credit history, you may struggle to be approved for a payday loan. This doesn't mean you will always have trouble getting credit, you will just need to build a credit record before starting to apply. You can check your credit score through agencies like Experian and you can check out our guide on how to build your credit score for more information too.

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Representative Example: Borrow £400 for 4 months: 3 monthly repayments of £156.09 followed by a final repayment of £156.07. Total repayment £624.34. Interest rate p.a. (fixed) 288.35%. Representative APR 1,267.9%. 

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