Payday Loans Debt Consolidation

Improve Your Credit Ratings Positively With Payday Debt Consolidation Programs

In order to understand whether payday debt consolidation programs affect your credit or not, there are several things that you have to pay your attention to. For example, it is very important for you to keep in mind that your credit ratings will definitely get affected, but the effects do not necessarily have to be negative always. If you are careful in your approach and follow certain basics and implement the right strategies, consolidating the mounting payday loan debts that you owe to different payday loan companies can actually help you improve your credit score, not immediately but in the long run. Following is a brief rundown on three various aspects associated with it, which will help you understand how to use the wonderful concept of debt

consolidation not only to get rid of your payday debt problems but also to improve your credit ratings positively.

Include Your Credit Cards Along With The Payday Debts

If you are considering signing up for payday debt consolidation programs, you should not just think about how to ay off the mounting payday debts; instead you should pay attention to other forms of debts as well that you owe to different creditors, such as credit cards. In various studies and researches, it has been found that people who are trapped badly in payday debts are also the ones who are struggling with their monthly payments toward other debts that include credit cards. In fact, most consumers look toward payday loans as a quick solution only when they have already reached the maximum limit on their credit cards.

If you succeed in consolidating your payday debts but do not do anything to manage your credit card debts, it will severely damage your credit score and the intensity of damage will keep on increasing with every passing month. Therefore, it is always wise to choose a debt consolidator that is legitimate and highly experienced in providing combined services, where they can handle both credit card debts as well as payday loan debts for their clients.

Make Sure Your Payday Lenders Report To The Three Major Credit Bureaus

Now, it is also important for you to understand that payday lenders usually do not report the payments (or for that matter, non-payments) to the three major credit bureaus that prepare and maintain your credit reports. Payday loan companies generally report to small credit reporting companies only that does not affect your FICO score. Since the method of debt consolidation allows you to make the debt payments in easy monthly instalments, you should request your payday lenders to report the regular payments you are making as per the consolidated program to the major credit bureaus as “paid in full and in a timely manner”. If such negotiations work and your lenders agree to report such things, it will give an instant boost to your credit rating, which will keep on increasing with time.

Overall, when it comes to using payday debt consolidation programs, it is important for you to study how it is going to affect your credit rating and if there are ways to use the method not only to pay off your payday debts but also to repair and increase your credit score.


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