Do Short Term Cash Loans Impact Credit Rating?

Emergency Installments loans (although can have repayment terms up to 3 months), and payday loans (need to be paid off by coming paycheck day) are considered to be short term loans. Mostly, private lenders do not bother to report credit agencies like Equifax, Experian and TransUnion when a borrower gets funded with such small cash loans. It is only when the large scale borrowing takes place, reporting the credit transactions makes sense. However, some lenders might report even these financing, and only then they appear on the credit reports and add to the credit history- which is actually good.
The other occasion when the lender or the debt collector (who is assigned the responsibility by the lender of collecting the debt from the borrower) might report to the credit bureaus is when borrowers make late repayments without informing the lender. In this case, the reporting impacts the credit rating negatively.

How Long Do Installment Loans Stay On Credit Report?

If you want to know whether installment loans show up on credit report for a long time, then we have the definite answer for you. As we mentioned, only not making timely payment might hurt your credit- taking out a loan is just fine. Therefore, if you are paying off the installments or making a bulk payment on time, and the lender is reporting the payments to the agencies, it is good for you if they show up in your report for a long time. Similarly, the unruly payments can also hunt you if you need a large funding.
In general –if the lender or debt collector reports the borrowing or late payment- installment loans stay on the credit report for 7 years, which is a considerable amount of time. In some cases, they can stay on up to 10 years. Therefore, you can have the positive impacts of the reporting for up to a decade if you prove to be a responsible borrower by adhering to the due dates. However, with bad credit also you can get an installment loan from CashAmericaToday with a 3-minute application process online.

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