There was once a stigma surrounding easy online payday loans that they could negatively affect your credit rating. However, this is not true. The only negative implications that payday loans have when calculating your credit score is that it will count against you if you default or continually make late payments. Additionally, if your loan amount and interest rolls over into collections, it can cause a significant amount of damage to your credit rating. There are three major reasons that you should work to pay off your easy online payday loans from HPD Loans early.
Partial Refund of Service Charge
Perhaps one of the biggest advantages of paying off your easy online payday loans before they are due is a partial refund of your service charge. If you can pay off your loan before the due date, we may offer you the advantage of having some of the service charge, or the interest that is charged for your loan refunded. The details for the return of your service charge will be outlined in the paperwork that you sign to obtain your loan.
Better for Your Credit Rating
When you make the decision to pay off your easy online payday loans early, it protects and improves your credit rating. It protects your credit score because when you pay early, you will not have to worry about how you are going to pay your loan on the due date. This can prevent default and late payments that have negative effects on your credit score. When you pay off your easy online payday loans early, it becomes part of your credit report. It shows future lenders such as those for apartment rental, home or car financing, and others that you work hard to pay off your debt ahead of time. This sets a good precedence to speed approval for future rentals or loans.
Prevent Accumulating Interest
A third advantage of paying off your easy online payday loans before they are due is taking preventative measures toward accumulation of interest. When you are late for a payment, our company will charge you additional interest, which is added onto the amount that you already owe us. This is true unless we have previously reached an agreement that we will accept your loan payment late without an additional fee.
The accumulating interest that is charged with the late payment of you payday loan includes interest on the principle loan amount and the interest that has already been accrued. For example, if you have a loan of $200 with a $64 service fee, then the interest accumulates on the entire $264, not just the $200 of the principle loan amount. This means that if you do not pay off your loans early, you will be left wondering if you will be able to pay on time.