Posted On: June 11th, 2020 12:00AM
We’ve been fielding quite a few questions in the past few weeks about how to preserve credit scores in times of economic uncertainty.
Whether it’s COVID-19, job loss, or any other unforeseen circumstance causing you financial stress, there are a few sure-fire things you can do to help maintain strong credit despite the unknown:
CREDIT PRESERVATION TIPS:
Remember, all of these tips are designed to preserve credit now! It’s important to know that nothing comes for free, and creditors will likely move any skipped payment to the back of your loan, which means you’ll end up paying more in interest. However, as the old adage goes, “cash today is more valuable than cash tomorrow”.
As always, CreditAdvisor is here for you! Don’t hesitate to reach out if you have questions about any of these tips, or any other credit questions.
Posted On: June 10th, 2020 11:53PM
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Posted On: June 10th, 2020 11:43PM
In the unlikely event you find yourself between jobs, recovering from a financial emergency, or I don't know, maybe caught in a government shutdown and unsure when you'll get paid again, here are 3 tips to protect your credit score:
1. Call all of your creditors who report to the bureaus and ask them to defer payments or negotiate partial payments until you get back on your feet. Most problems start from a lack of communication. The reality, however, is that most of them are willing to work with you if you give them the chance.
2. If you have to go late on anything, go late on a utility bill, cell phone bill, or anything else that doesn't use credit for reporting. Yes, you'll probably have to pay a late fee, but it won't demolish your credit in the process. The big 3 to never EVER go late on are home and auto loans and credit cards.
3. Work out payment plans with creditors once your paychecks start rolling in again. I won't sugar coat anything here- it's tough to recover from a setback. You'll have to tighten up your belt for a little while and make some sacrifices, but it is possible to recover quickly if you take proactive measures.