Payday loans are often advertised as quick ways to get money for emergencies, but some lenders take advantage of people who are weak. Eloanwarehouse is one such company that, while not technically a scam, operates in ways that can leave you financially crippled. We’ll talk about why you shouldn’t get a payday loan from Eloanwarehouse, how they stack up against other reputable lenders, and what other options you should think about.
Getting a personal loan can be a great way to finance large purchases or consolidate high-interest debt. However, taking out a loan also means you are taking on more debt obligations This can negatively impact your credit if you fall behind on payments. So how does taking out a loan from Eloan Warehouse specifically affect your credit reports and scores?
What is Eloan Warehouse?
Eloan Warehouse is an online lender that offers personal loans up to $40000 for applicants with fair to good credit. They advertise flexible terms, competitive rates and a quick and easy application process.
Given that Eloan Warehouse is an online lender, it does not have any physical branch locations. You apply and manage your loan entirely through their website. They can offer lower rates than traditional banks and credit unions because they don’t have to pay as much for overhead.
How Personal Loans Impact Credit Reports
It will show up on your credit report if you get a personal loan from any lender, even Eloan Warehouse. Installment loans, like personal loans, mean that you make payments every month until the loan balance is paid off.
Personal loans will be sent to Equifax, Experian, and TransUnion, the three main credit bureaus. The loan will show up as a new account with the monthly payment and the original loan amount.
The credit bureaus will also know that you pay your bills on time every month. Making on-time monthly payments shows that you can handle this extra debt responsibly, which can actually help your credit scores.
However, if you fall behind and make late payments, missed payments will be reported as well. Too many late or missed payments will damage your credit.
Does Eloan Warehouse Report to All Three Credit Bureaus?
Yes, Eloan Warehouse will report your loan account and payment history to Equifax, Experian, and TransUnion each month. This means if you apply for any other loans or credit cards in the future, those lenders will be able to see your Eloan Warehouse loan on your credit reports.
Many online lenders only report to one or two bureaus, so the fact that Eloan Warehouse reports to all three is a major benefit. Having your positive payment history on all your credit reports makes it more likely to raise your credit scores with all three bureaus.
Can a Personal Loan from Eloan Warehouse Hurt Your Credit?
While getting a personal loan can help build your credit history, it can also damage your credit if not managed properly. Here are some tips to avoid hurting your credit with an Eloan Warehouse personal loan:
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Make at least the minimum payment every month: Payment history is the biggest factor in your credit scores. If you miss payments, it will significantly hurt your credit.
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Pay more than the minimum when possible: Paying down the principal faster saves on interest and shows lenders you can handle debt responsibly.
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Avoid maxing out the loan amount: Using the full loan amount available will negatively impact your credit utilization ratio. Try to only borrow what you need.
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Don’t apply for more new credit right away: Every new credit application causes a hard inquiry on your credit reports. Too many hard inquiries in a short period can lower your scores.
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Watch out for prepayment penalties: Some personal loans charge fees for paying off the loan early. Make sure to review the fine print first.
As long as you make all your payments on time and avoid these other pitfalls, a personal loan is unlikely to hurt your credit. In fact, it can help demonstrate you are able to manage installment loan accounts responsibly.
How to Check Eloan Warehouse Accounts on Credit Reports
Since Eloan Warehouse reports your loan to all three major credit bureaus, you can check your credit reports to make sure the account is being reported accurately:
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Order free annual credit reports from AnnualCreditReport.com. You can get one report from each bureau every 12 months.
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Check reports from Equifax, Experian, and TransUnion. Make sure loan details like the balance and payment history are correct.
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Watch out for any signs of fraud or identity theft. Accounts you don’t recognize could indicate stolen personal information.
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Review all negative items like late payments or collections accounts. Make sure they are valid and dispute any errors.
Monitoring your credit reports is the best way to ensure your Eloan Warehouse loan is helping, not hurting your credit. Stay on top of your payment history and loan balance to maintain a positive credit profile.
The Bottom Line
Getting a personal loan through Eloan Warehouse will impact your credit since all loans affect your credit reports and scores. As long as you make payments responsibly by paying on time each month and keeping your utilization low, an Eloan Warehouse loan can help demonstrate your ability to manage credit and improve your scores over time. Just be cautious of high debt burdens and make sure to monitor your credit reports to catch any errors.
Key Reasons to Avoid Eloanwarehouse
- Possible Debt Trap: It’s almost impossible to pay back what you owe because of the high interest rates and hidden fees. This is a common way to get into debt that will keep you borrowing and paying back money forever.
- Lack of Transparency: Reliable companies tell you all the terms right away, but Eloanwarehouse often hides important details in small print, leaving borrowers confused.
- Customer Complaints: A quick search online shows that Eloanwarehouse has a lot of complaints from unhappy customers about their unfair lending practices, bad customer service, and harsh collection methods.
- There are better options: You can find short-term loans that won’t take advantage of your financial problems through Earnin, Dave, or local credit unions.
The Dark Side of Eloanwarehouse Payday Loans
Eloanwarehouse positions itself as a convenient provider of payday loans, but a closer look reveals several red flags. Here are the key issues:
- Extremely High Interest Rates: Eloanwarehouse has interest rates that are much higher than the norm, which makes it hard for borrowers to make payments on time.
- The cost of loans can go up quickly because of hidden fees and charges. Many borrowers say they were caught off guard by these fees, which keep them in a cycle of debt.
- If you miss a payment, you can expect to be constantly harassed and threatened with legal action. This can add to the stress of a financial situation that is already tough.
- As a predatory lender, the company preys on people who are in desperate situations, taking advantage of their need for cash quickly without fully explaining the long-term costs.
Should I report my rent payments to the credit bureaus?
FAQ
Does eLoan Warehouse check credit?
There aren’t many requirements to get a loan from eLoan Warehouse. All you need is to be able to pay it back.
Can payday loans report to credit bureau?
No. Most payday loans are not reported to the three main national credit bureaus, so they probably won’t hurt your credit score or help you build credit.
Is eLoan Warehouse a tribal loan?
Our verdict. This tribal lender offers fast funding but isn’t transparent about fees. eLoanWarehouse is a tribal lender that offers installment loans of up to $3,000. To be eligible for that much, you’ll need to have paid off at least three loans. New customers are only eligible to borrow up to $1,000.
What loans report to credit bureaus?
Any consumer who has used a credit card, or taken out a loan to buy a car or a home, is likely to have a credit report on file with each of the three national consumer reporting agencies (CRA): Experian, Equifax and TransUnion.