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If you pay the loan installments on time every month, it should have a good effect on your credit, provided it is an installment repayment and not a revolving repayment. The only way that revolving debt improves your credit standing is if it is not carried for more than 29 days. In other words, if you pay the complete balance of your credit cards and revolving accounts (IE credit lines ect).instead of letting them remain outstanding for more than a month at a time, that is ideal for your credit standing- very few of us have the good sense to do this, but it will improve your score very quickly.

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Q: How will a Loan affect credit?
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If you default on your pay day loan will that affect your credit?

Yes, if you default on any loan it will affect your credit rating negatively.


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if you obtain a credit card with a high limit it will not affect your credit as long as the card is in good standings .. however if the card is maxed out it could affect your credit score wich will intern stop you from getting a loan. although it may not stop you from getting your loan but it will affect your interst rates


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It doesn't hurt your credit to pay off a loan early.


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