Payday loans are a bit tricky when it comes to your credit score. When you apply for one, the lender might need to check your credit history more traditionally. If you take out a payday cash loan and can't pay it back on time (which happens to many people due to those crazy high-interest rates), it can turn into a huge debt. The lender might report your delinquent payment to credit bureaus, and that's where your credit score can take a hit.