Most payday lenders don’t report your credit application or repayment history to the major credit bureaus, so your on-time repayment won’t boost your score. But beware of default — these lenders can send your debt to collections, which will negatively impact your credit history.
In New Orleans, if you default on your loan, lenders may also start charging you additional interest. This can be up to 36% in the first year and 18% in the second year.