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The scarier thing is that they are designed to be less than six months to avoid federal loan regulations and are reported to credit agencies as some new kind of installment loan (I forget the exact term/acronym). Many lenders are refusing to lend to anyone who has even taken one out in the past 2-3 years since they are seen as such a high risk indicator.
It's not just one, it's that credit checks are big factor in credit scores.
Normally you get an infinite amount in a 2 week period as one check for when you're shopping around
If someone does one of these every other month, that's 6 credit checks in a year. Even if you pay them all back asap, it fucks your credit up.
And it'll show as an open line of credit on your report forever. Which is normally a good thing, but it brings your average credit per account down which hurts you further.
People do t know all that, and their fucking up their credit without knowing it. Then if they have to do a big loan for home/car/whatever, they get a worse rate