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Blue Trust Loans

Direct lenders like Blue Trust Loans also charge high interest rates along with additional fees for late payments.

Payday Loans and the Impact on a Borrower's Credit

Payday lenders typically do not order credit reports from any of the three main credit reporting agencies. However, using payday loans could have a significant impact, either positive or negative, on a borrower's credit. It's important for anyone who might be considering applying for Blue Trust Loans to carefully evaluate their current and future financial goals to determine whether this is the best option for them.

Positive Impact

When a borrower uses a payday loan to avoid defaulting on another financial product, they could avoid losing points on their credit score. A single defaulted account can negatively impact a person's credit score for a very long time. A payday loan can give them the opportunity to pay off the account and also avoid the financial costs associated with late or missed payments.

A payday loan could also be used to consolidate other debts. By using payday loans to pay off credit cards, a borrower could bring up their credit score significantly in a very short period of time. Someone might do this if they want a better chance to qualify for another loan and their credit card debt is holding them back. It's important to note that the increased score will only be temporary and it could even drop if the borrower accumulates more credit card debt.

Negative Impact

Failing to repay a payday loan on time could adversely affect a borrower's credit and make it difficult to get another loan in the future. The primary reason people don't repay Blue Trust Loans is because they couldn't afford them in the first place. It's no secret that payday loans are expensive. They are also much easier to obtain than other forms of credit so people with bad credit tend to use them more often than others. Although they may help a borrower solve an immediate issue, payday loans can cause a whole new set of problems for borrowers who cannot afford the payments.

Payday loans are one of the most expensive forms of credit today. Although they have the potential to help a borrower out of a financial bind, it's important for people who need money fast to consider all of their options prior to signing for a payday loan. With a clear goal in mind and a means to repay the debt, payday loans can be a great way for a borrower to improve their credit score and get started on a clear financial path.