 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Do Payday Loans Affect My Credit?\n-------------------------------------\nBecause payday lenders often don't run a credit check, applying for a payday loan doesn't affect your credit score or appear on your credit report. Also, payday loans won't show up on your credit report after you've accepted the loan. As a result, they don't help you improve your credit score.\nThat said, they can appear on your credit report if the loan becomes delinquent and the lender sells your account to a collection agency. Once a collection agency purchases the delinquent account, it has the option to report it as a collection account to the credit reporting bureaus, which could damage your credit score. END