No….payday loans will not help to build a credit history. Payday loans only get reported to the credit bureaus if you default and the account goes to collections. If anything, you might unintentionally damage your credit rating if you fall into a payday loan trap where your account ends up in collections.

If you have bad credit and you want to build your credit history, then get a secured credit card…the kind where your credit limit is equal to your security deposit. Use this to build a history of timely payments that get reported to the credit bureaus just like regular credit cards.

FYI: Cell phone accounts, utility, health club memberships and rent also will not build your credit rating.