Will a Payday Loan Hurt My Credit? Answer: It depends. Cash loans will hurt your credit if you do not repay them or neglect to make payments on time. In most cases, your account will go to collections if it is not repaid in full by the pre-determined due date. And, like all accounts that are sent to collections, it will have a negative impact on your credit. However, if you repay a cash loan in full and on time- it will have no effect on your credit history. Itís important to understand that payday loans are very high-interest loans and should be used as a last resort. Be sure to shop around and research all your options before making any decisions. For instance, a credit union or your personal bank may be able to offer you a small loan with a better interest rate and longer loan term.