Why Note Loans Hurt Your Credit
Did you know that the credit bureaus penalize your credit score when you receive a note loan? So, what exactly is a note loan and why does it hurt your credit? A note loan is the type of loan you would receive from a finance company or a pay check loan company. These smaller loans typically have high fees and high interest rates as well. The credit bureaus frown upon these types of loans because consumers who take out these loans are statistically more likely to default on the note loan AND other loans appearing on your credit.
Additionally, note loans or pay check loans will usually serve to worsen the financial problems you are facing. By receiving a pay check loan you are giving away some of your money, in the form of fees and interest, to the loan company. This takes away those much needed funds from your budget and will wind up making the situation worse rather than better.
For help establishing a more balanced personal budget or for help with any credit issues you may be facing, please call 704-503-3669. Our friendly staff is standing by to take your call.