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. Debt relief loans can help ease the burden by consolidating your credit card bills, old loans, and other debts into one easy payment.
5 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 and chances of getting a loan.
2. Work on your credit report
Sometimes people have false debt on their credit reports, contributing to their lower 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 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. 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 not only raises the balance over time but also hurts their credit score.
Use the 30 percent credit utilization rule to keep your card usage in check. Using less than 30 percent of your credit 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 the ratio of debt to income.
5. Consult with a debt consolidation company
Sometimes consolidating debt is the right choice for an individual. A consolidation loan will combine all of your debts into one, reducing the number of people you owe. Consolidating the debts may also reduce the total amount owed, so it’s a good idea to talk with a debt relief company about your options.
You don’t have to deal with mounting debt even if you have bad credit. Contact Christian Debt Counselors to get more information on how debt relief loans can give you financial freedom. Whether or not you’ve been denied loans in the past to clean up your debt, we can help to put you back on the road to a debt-free future.