Does a Cash Advance Hurt Your Credit Score?

Does a cash advance hurt your credit score?When considering a cash advance, you may be wondering “Does a cash advance hurt your credit score?” For better or worse, it is true that taking a cash advance can hurt your credit score. Thankfully, a cash advance can also help your credit score. Understanding reporting practices and responsible use of credit can help you avoid lowering your credit score and possibly even help raise it.

Using Northcash Will Not Affect Your Credit Score

Most consumers know that having multiple inquiries into your credit score can cause your score to drop. What fewer consumers know is that your credit score is typically only affected if the credit check is performed by one of the three main credit bureaus (Experian, Equifax, or TransUnion). While most borrowers do not require a credit score check, Northcash uses alternatives to the three main credit bureaus to check borrower credit. These agencies typically do not cause a drop in credit for the borrower. Simply taking out a cash advance should not affect your credit score when using Northcash.

Be a Good Borrower

Does a cash advance hurt your credit score? Well, it can, but borrowers who use cash advances for short term expenses find that they can actually help build credit and learn about responsible borrowing. In many situations, an early bill due date or an unexpected expense can leave families cash poor for just a few days before payday. Taking out a cash advance with the intention of simply paying bills on time and repaying the cash advance immediately can help cash strapped families get ahead long enough to create and implement a budget. Borrowers that pay their cash advance back promptly will not hurt their credit score.

Defaulting and Late Payments Will Affect Credit

While simply taking out a cash advance and paying it back promptly will not affect credit, neglecting to pay back the loan will. Cash advance payments are meant to bridge the gap between bill due dates and your next pay check. Cash advances are expected to be paid back immediately upon receipt of your wages. When cash advances are used improperly for long-term cash deficits or for large bills that cannot be immediately paid back, the cash advance will affect your credit score negatively. Using cash advances appropriately will ensure that cash advances will not hurt your credit.

Cash advances are a great way to use your next paycheck to pay bills now. Northcash tries to ensure that your credit score is not affected by receiving the loan by using secondary credit agencies. So long as the loan is paid back promptly, a cash advance does not hurt your credit score. If a payment is received late or the loan is defaulted, the delinquent loan will be reported. So, does a cash advance hurt your credit score? Not for responsible borrowers.

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Northcash is an economic arm of the Fort Belknap Indian Community, a federally-recognized Indian tribe located in Hays, Montana. The Tribe and its businesses have governmental sovereign immunity and have not and are not waiving that immunity for any purpose associated with the consumer lending business of Northcash and therefore Northcash is not subject to suit by you or any third-party for any reason. CAUTION: IF YOU ARE NOT COMFORTABLE DOING BUSINESS WITH A SOVEREIGN INDIAN TRIBE THAT IS NOT SUBJECT TO SUIT, YOU SHOULD IMMEDIATELY DISCONTINUE USING AND ACCESSING THIS SITE. We may from time to time in our sole discretion and without notice to you modify the terms of this Agreement and/or change the rules that govern your use of our Site.

Who is providing this notice?

North Star Finance, LLC d/b/a Northcash, an economic arm of the Fort Belknap Indian Community.

This is an expensive form of borrowing, and it is not intended to be a long-term financial solution. Northcash loans are designed to assist you in meeting your emergency borrowing needs. The Annual Percentage Rate (APR) applied to your loan will vary depending on the pay period with the maximum APR on any Northcash loan being 795%. This is a term installment loan with approximate equal payments, but you have the right to prepay at any time. Any instances of late or non-payment may be subject to additional fees, such as NSF and late fees, as well as collection activities Before borrowing, we ask that you assess your ability to repay the amount you borrow.

You acknowledge that by submitting and completing the loan application that you are applying for a loan. We verify loan applicant information through credit reporting agencies such as Clarity, Factor Trust, and DataX. We may obtain your credit information in order to determine your eligibility and ability to repay.

Northcash does not lend to residents of Arkansas, California, Georgia, Maryland, Minnesota, Montana, New York, Pennsylvania, Virginia and West Virginia, or to members of the military or their dependents.

The availability of online installment loans are subject to change at any time at the sole discretion of Northcash.

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