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.