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Debt Consolidation Very Bad Credit

Your credit score lets lenders know if you are a credit risk or not. A good score means that they’ll be eager to offer you new lines of credit. But if you have bad credit, lenders may be cautious about what they offer you and may even make it impossible for you to obtain a loan in the future for your next car or home.

How you pay off your debts affects your credit report. At UmbrellaDEBT, we offer options that assist our clients in reclaiming financial health. If avoiding bad credit is important to you then Debt Consolidation may be the answer.  In this program you are repaying 100% of your debt at a reduced interest rate given by the creditor which will help you pay the debt off much faster than if just making the minimum payments on your own.  By paying your debt off in full, and establishing a solid payment history, you will avoid the path of bad credit!

What is Bad Credit?

Bad credit means you may have low FICO score that may make it impossible to secure new lines of credit.   Things such as late payments, or carrying  high balances compared to credit lines, will impact your FICO score negatively.   If you've ever filed for bankruptcy or have a tax lien record, then you can also have bad credit.

How Can You Fix Bad Credit?

Fortunately, it’s possible to fix a bad credit report. You can do that in the following ways:

  • Review Your Credit Reports – Sometimes, credit bureaus can make errors that negatively affect your credit. By reviewing your report yearly you can dispute negative marks that you don’t deserve. These may include incorrect late-payment statements as an example. If removed, your overall credit score improves.
  • Clear Outstanding Balances – Reducing the balances that you owe your creditors reflects positively on your score. You’ll also pay lower interests as your balance decreases.
  • Make Strict Budget Cuts – budget cuts may be your only chance of putting more money towards your payments, but it will all pay off with better credit.

At UmbrellaDEBT, we provide clients with debt advice to help them bring their debts under control. As a result, their credit scores may improve.

Avoiding Bad Credit

You can avoid finding yourself in a situation where you’re dealing with bad credit by:

  • Always Paying Your Bills on Time – Late payments are the number one cause of bad credit. Ensuring that you consistently pay your bills on time is one way of avoiding bad credit.
  • Manage Your Balances – Watch your debt utilization percentage. Utilizing 30% or less of your credit card limit is considered acceptable.  When your debt amount is over 30% it begins to have a negative impact on your FICO. 


  • Consider Alternatives to Taking Loans – Cutting down on your spending will improve your financial situation at a time when you think only a new debt can help. If there are things you have been spending money on that you can do without, give them up to avoid incurring huge amounts of debt.

Keep Your Credit Score Strong

Having a strong mix of credit, keeping inquiries low, making all of your payments on time, and keeping your credit line usage to 30% or less, you will continue to strengthen your credit score. At UmbrellaDEBT we offer a full review of your financial situation so that we can see what options may be available to assist you in becoming debt free.  Give us a call and lets see what we can do for you!

Debt Consolidation Very Bad Credit
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