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Does DailyPay Affect Your Credit Score?
July 1, 2025

Quick Answers
Utilizing DailyPay to access your earned income does not affect your credit score.
The service provides an advance on your own wages, not a loan, so it does not require a credit check.
Since it is not a form of credit, your transaction history with DailyPay is not reported to credit bureaus.
What Is DailyPay?
DailyPay is an on-demand pay service that allows employees to access their earned wages before their scheduled payday. It partners directly with employers to track an employee's accrued earnings in real-time. Through the DailyPay app or website, workers can then transfer a portion of their unpaid earnings to a bank account, debit card, or pay card for a small fee.
The service itself does not directly impact a user's credit score, as it is not a loan and does not require a credit check. However, by providing access to earned income, it can help individuals avoid taking on high-interest debt like payday loans or credit card advances to cover unexpected expenses. This financial flexibility can indirectly support credit health by helping users manage their finances without resorting to credit products that could negatively affect their scores.
How DailyPay Could Impact Your Credit Score
Using DailyPay might seem like it would affect your credit, but it's an advance on earned wages, not a loan. It doesn't involve credit checks or reporting to credit bureaus.
- Requesting an Advance: You access a portion of your earned income before your official payday. Since this is your money, DailyPay does not perform a credit check for this transaction.
- Automatic Repayment: The advanced amount, plus any associated fee, is automatically deducted from your next paycheck. The remaining balance is then deposited into your bank account as usual.
- Creating a Shortfall: Frequent use of wage advances can result in a significantly smaller paycheck. This may create a cash shortfall for paying other bills, such as credit card payments or loan installments.
- The Indirect Impact: If a shortfall from a DailyPay advance causes you to be late or miss a payment on a credit-reported obligation (like a loan or credit card), that delinquency can be reported to credit bureaus, which can lower your credit score.
How Much Will DailyPay Affect Your Credit Score?
While DailyPay doesn't report your activity to the major credit bureaus, there are indirect factors to consider regarding your financial health. Here’s what you should keep in mind.
- No Credit Reporting. DailyPay does not send your transaction history to Equifax, Experian, or TransUnion. As a result, using the service will not have a direct impact on raising or lowering your credit score.
- Indirect Financial Health. Accessing your wages early can help you avoid high-interest debt like payday loans or credit card advances. This responsible financial behavior can indirectly support a healthy credit profile over the long term.
How You Can Avoid DailyPay Affecting Your Credit Score
Understand It’s Not a Loan
DailyPay provides access to wages you've already earned, so it isn't classified as a loan. Because of this structure, the service does not report your transactions to the major credit bureaus. This means using DailyPay as intended will not directly build or harm your credit history.
Manage Your Finances Carefully
While DailyPay itself is credit-neutral, how you manage your money matters. Ensure you don't overdraw your bank account after a transfer. Such financial missteps can lead to bank fees or other negative consequences that might indirectly impact your overall financial standing and, eventually, your credit.
Ways to Improve Your Credit Score
Your credit score plays a crucial role in your financial life, and with consistent effort, it is always possible to improve your creditworthiness and maintain a healthy profile. While it takes time, most people see meaningful changes within three to six months of positive financial behavior.
- Monitor your credit reports regularly. Obtain your free reports to identify and dispute any inaccuracies or signs of fraud that could be negatively impacting your score.
- Establish automatic bill payments. Since payment history is the largest factor in your score, setting up automatic payments is a simple way to ensure you never miss a due date.
- Reduce your credit utilization ratio. Aim to keep your credit usage below 30% of your total available credit, as this is the second-most important factor in your score.
- Become an authorized user. If someone with a strong credit history adds you to their account, their positive payment history and low utilization can help boost your score.
- Diversify your credit mix. Having a variety of credit types, such as credit cards and installment loans, shows lenders you can responsibly manage different kinds of debt.
- Limit hard inquiries. Space out applications for new credit and use prequalification tools when possible to minimize the number of hard pulls on your report.
The Bottom Line
DailyPay provides early access to your earned wages without impacting your credit score, as it's not a loan. Responsible use is essential for managing your finances effectively with this tool.
Frequently Asked Questions
Does using DailyPay show up on my credit report?
No, DailyPay transactions are not reported to the major credit bureaus. Since it is not a loan, your activity does not appear on your credit report.
Can DailyPay help me build my credit history?
DailyPay does not directly build your credit history because it doesn't report payments to credit bureaus. It's designed for accessing earned wages, not credit building.
Are there hidden fees with DailyPay that could lead to debt?
DailyPay has transparent transfer fees and is not a loan product. It does not charge interest, so it won't lead to debt that could harm your credit.
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