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Originally Posted On: New to Bad Credit? What to Do When the Economy Causes Credit Issues – Minute Loan Center
Bad credit can happen to anyone at some point in their lives. Many people are being confronted with credit issues for the first time. Explore these tips today
Everyone goes through hard times, but it seems like more and more people are falling on even rougher times than anticipated.
The COVID-19 pandemic has sent unemployment levels skyrocketing. More than 50 percent of adults who lost their jobs due to coronavirus have yet to find gainful employment.
When some people fall on hard times they can rely on credit, but that can be easier said than done. Credit issues can limit how much you can borrow, and an alarming amount of people have bad credit due to the economy.
We’re living in a world where a little over half of all Americans have been turned down for a card or loan because of their score. If they want to survive this difficult economy, they need to get creative.
Are you new to bad credit? We’re here to help you navigate your new economic reality. Here’s how you can survive your new economic normal and make the right moves.
Get Your Benefits
When most people think about government benefits, they immediately think about unemployment. Although unemployment can be an important benefit to have, it’s far from the only way the government can help you during tough times.
Did you know that some states may offer you discounted health insurance or prescription drugs? Or that some can help you find the money for public transportation? There are a wealth of programs available to help people going through hard times. All you have to do is find them.
Every state has its own specific programs and rules for benefits. To find the right programs where you live, we recommend using benefits.gov. All you need to do is give some information and the site can tell you what you’re eligible for.
What you qualify for may surprise you. Too many people make the dangerous assumption that they won’t qualify for certain benefits and programs so they don’t apply to them in the first place. The rules around assistance have changed dramatically over the past year, so don’t make the mistake of automatically assuming you won’t be eligible.
Explore Different Lending Options
Do you have a low credit score? Are you worried about getting denied by big banks and lenders? This may sound strange, but you aren’t out of options if you need a small loan to help tide you over during hard times.
There actually are plenty of lenders that are willing to work with people that have low or bad credit. All you need to do is look for the right ones.
Consider finding lenders that offer installment loans. They’re very similar to regular loans where you borrow a lump sum of money and pay it off over time. The main difference with installment loans is that they have fixed payment amounts.
These small loans can be lifesavers when they’re used correctly. A small installment loan can help you consolidate debt and avoid overdraft fees, and can be a great source of emergency cash. You don’t want to be among the 50 percent of Americans who don’t have enough money saved up for a crisis.
Talk to Companies
Are you worried about falling behind on utility payments or other reoccurring bills? Does the thought of missing another credit card or loan payment terrify you?
Don’t hide from the people you owe money to. If anything, it’s more important than ever to contact them to explain your situation.
If you’ve just lost your job or experienced a dramatic decrease in income, some companies may have programs set up to help you. In some cases, they may be able to adjust your current billing options to make your monthly payments more affordable.
Like with government benefits, you won’t know what you’re capable of getting unless you ask. You’re far from the only customer or client that has fallen on hard times recently. Plenty of companies are willing to work with you if you’re proactive about reaching out to them.
Find a Hustle
You may be having a hard time finding full-time work, but there are plenty of gigs and side hustles available for people that want to make some extra cash.
Even if you’re gainfully employed, having a gig you can fall back on can be helpful. You could use that money to put toward debt, pay extra bills, or just set it aside for a rainy day.
Depending on your availability, there’s a lot you can do. DoorDash, GrubHub, and Amazon are always looking for drivers to deliver goods. There are even some e-commerce related drop shipping jobs you can do on a first-come, first-serve basis.
Are you unable to do delivery or even go out much? Don’t worry, there’s still plenty of gig work for you!
Freelancing sites like Fiverr and Upwork have made it incredibly easy to find fully remote gig work. You could do data entry, test websites, get into graphic design, and much more.
These jobs may not help you make bank, but you can get help paying the bills. If you’re struggling to make ends meet, we highly recommend finding a gig or two to help you during hard times.
Hunt for Shopping Deals
You may feel like you’ve cut down on every non-necessary expense possible. You’ve clearly cut out extras like streaming services, Starbucks, and takeout. How can you save any more money when it already feels like you’re struggling?
If you do a lot of shopping online, utilize certain extensions and apps to find the best deals possible. Automatic discount and deal applications like Honey can apply coupons you didn’t even know about when you shop.
Sites like SlickDeals, Fab, and RetailMeNot can help you find discounts on a lot of different things. You could find big discounts on some of your favorite brands and could even find a nice deal for date night.
Start Fixing Your Credit Issues Today
You aren’t the only person dealing with bad credit due to the economy. Credit issues happen, but you don’t have to let them rule your life.
If you follow the tips in this post, you’ll be able to save money and find ways to survive and thrive while you plan your next move.
Want to learn more about how you can find the right loans and repair your credit? Contact us today so we can start talking about the best way to help your situation.