 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: Payday Loans and Your Credit\n----------------------------\nAnother strike against payday loans is the fact that they won't help you to build positive credit. Why not? Payday loans generally don't appear on your credit reports.\nOf course, there is one exception to this rule. Payday loans might show up on your credit reports if you fall behind on your payments. If you go into default on a payday loan, the lender may sell your unpaid debt to a collection agency.\nOnce the debt is in the hands of a collection agency, there's a good chance it could show up on your credit reports with the three credit bureaus (Experian, TransUnion and Equifax). The collection account could remain on your credit reports for up to seven years, negatively impacting your credit scores and possibly making it harder, or more expensive, to qualify for new financing in the future. END