How to Get a Debt Relief Loan with Bad Credit
There’s no doubt about it: Debt piles up quickly. One minute you’re paying bills on time, and the next minute you’re faced with an emergency that sets you back financially. Whether you’re dealing with a little or a lot of debt, there’s a way out. A Debt relief loan can help ease the burden by consolidating your credit card bills, old loans, and other debts into one easy payment.
4 Ways to Get Debt Relief Loans if You Have Bad Credit
1. Start making payments on time
Lenders often deny people a loan because of their poor payment history. Paying your bills on time is an important step to improve your credit history and to help you get loans in the future. If you can pay your bills on time even for a few months, it will help your credit rating and increase the chances of getting a loan.
2. Work on your credit report
Sometimes people have errors on their credit reports, which can negatively affect credit scores. It’s a good idea to check your credit report often to see if creditors or collectors are claiming debt that is not yours. You can dispute debts on your report and, if the account is correctly reported, you can improve your score by paying them off and having them removed.
You’re entitled to a free credit report every year from Experian, Equifax, and TransUnion. Freecreditreport.com is a great resource to obtain this information. All three reports may be different, so make sure to get all three to cross-check the information. Looking through your reports is also a good way to check for signs of identity theft.
3. Use less than 30 percent of your credit
It’s important to keep your credit card balance low to prevent the payments from getting out of hand. The larger the balance, the harder it is to pay the total bill. Some individuals pay only the minimum, which may raise the balance over time negatively affecting the credit utilization, and ultimately, your credit score. Use the 30 percent credit utilization rule to keep your card usage in check. Using less than 30 percent of your total available credit line is the best way to keep your balance manageable and your credit scores up.
4. Keep your unused credit cards open
Once you open a line of credit, it’s good to keep it open for as long as you can, even if you’re not using it. If you stop using your credit cards, don’t tear them up and close the account. Keeping the credit open will increase the length of your overall credit history and reduce your overall credit utilization.
Consult with a Debt Consolidation Company
Sometimes consolidating debt is the right choice for an individual. A Debt Consolidation program could combine all of your unsecured debt minimum payments into one, reducing the number of payments you have to make each month, possibly reducing credit card interest rates as well. Consolidating the debts may also reduce your interest rates,
It’s a good idea to talk with UmbrellaDEBT about all your Debt Relief options!
If you have been denied a Debt Consolidation Loan, Don’t let bad credit keep you from dealing with increasing credit card debt. Contact UmbrellaDEBT to get more information on how other Debt Relief programs can give you financial freedom.