 TITLE: What Happens if I Default on a Payday Loan? CONTENT: How to Rebuild Credit After Defaulting on a Payday Loan\n-------------------------------------------------------\nThere's no denying that defaulting on a payday loan can bring you a great deal of stress and uncertainty about the future. The good news is that there are ways you can rebuild your credit and reduce the severity of the situation. Here are some tips to help you out.\n*   **Get current on payments**: If you don't have the cash to get current on debt payments, you may want to reduce your expenses or take on a part-time job or side gig. You may also opt for professional help with credit counseling, a debt management plan (DMP) or debt consolidation.\n*   **Pay your bills on time**: Unfortunately, even one missed payment can hurt your credit. So it's imperative to pay all your bills on time. If you're worried you'll forget, sign up for automatic payments or set calendar reminders. This way, you can ensure your mortgage, credit cards, car loans and other bills are paid in a timely manner.\n*   **Consider your credit utilization ratio**: Your credit utilization ratio is the amount of credit you're using relative to the amount of credit available to you. Your credit utilization should be no more than 30%, and the lower, the better. Keeping your spending down and balances low can help you get there.\n*   **Check your credit report regularly**: Make it a habit to monitor your credit report. You can visit AnnualCreditReport.com and get an annual free copy of your Experian, Equifax and TransUnion reports. You can also get your Experian credit report for free every 30 days on sign-in. Look out for any derogatory marks that may be hurting your scores. END