When it comes to personal loans, there is almost no chance of approval if you have unpaid interest from a previous loan. Your credit file will show the initial loan amount, any unpaid debts, and the service charge for at least the next six years. This means debt collectors will be on your case to collect payment since you didn't pay back the loan. Generally, records of traditional loans are kept for 6 to 10 years. Any type of late or delinquent loan payment will stay on your credit history for 6 years, and this includes payday loans.
How Long Do Payday Loans Stay in Your Credit History? A late or unpaid loan commitment will remain on the credit report for a period of 6 years. Credit guidance agencies treat them just like any other form of lending. Any failed attempts can result in bank fees against you. Successful attempts could drain your bank account and cause other transactions to bounce, resulting in fees. The State Payday Loan Database (or Deferred Filing Services Database) is the official database containing data on payday loans (deferred filing transactions) from licensed providers (payday lenders).
If a payday loan is not paid in full on the due date or before the maturity date, the licensee may collect, after the due date, interest at a rate not exceeding 2.75% per month, except if a licensee makes a later payday loan to the customer under sub. Defaulting on a payday loan can result in direct lenders passing their payday loan agreement and its details to a collection agency. This can have serious consequences for your credit score and financial future. It's important to understand that any type of late or delinquent loan payment will stay on your credit history for 6 years.
