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We are all coping with the ongoing COVID-19 crisis and while remaining healthy and safe should be a top priority, many are also concerned about their “credit health” and how the current climate could impact your financial situation over the long term. Here at 750CreditScore, we want to provide you with a few tips on how to protect your credit during COVID-19. We recommend and encourage you to be as proactive as possible by creating a financial plan and using the various resources that may be available.
Here are a number of steps that you can take to ensure that you have a healthy credit future.
Create A Budget
Creating a budget during this time will enable you to better manage your money, thus enabling you to be more proactive in maintaining your credit. If you don’t have any idea about what you are bringing in the door in terms of money versus what you are spending, then everything else really becomes mute. Take the time to make a budget so that you can plan ahead. It’s still important to set aside savings during this time. We recommend Credit Strong, not only will it enable you to save, but it will report to your credit report in a positive manner. You can kill two birds with one stone.
Reach Out To The lender
Reach out to the lender now and see if you can have your interest lowered or removed. Tons of lenders are currently willing to make adjustments to your accounts. There are a variety of hardship options that creditors are currently offering. Take advantage of all of them. Your lender/creditor may be willing to lower your minimum payment or put a forbearance in place, as well as not report any late payments during this time to the three main credit bureaus.
Forbearance may be a better option than having a late payment show up on your report.
Pay Your Bills On Time
Pay your bills on time – If you are in a position to pay your bills, then continue to pay your bills. Do not use the current crisis as a reason to not pay them. We know that it’s crazy out here, but continue to make payments and pay on time if possible. You do not want your score to take unnecessary hits.
Identity Theft Is On The Rise
Identity theft is on the rise during this COVID Crisis. The criminals are running amuck with a variety of scams and thefts. Do not under any circumstances give your SSN or identifying information out to a 3rd party – especially when you did not initiate the contact. The IRS is not going to call you demanding payments. Your local power company is not going to call you demanding a gift card etc.
The Federal Trade Commission Consumer Information suggests that if you are concerned about identity theft, data breaches, or someone gaining access to your credit report, that you implement a credit freeze.
If you believe that your identity may have been compromised, then place a Security Freeze on your credit profile with all three Credit Reporting Agencies.
Check Your Credit On A Regular Basis
It is critical during this time that you monitor your credit on a regular basis. Ensuring that your credit is accurate enables you to spot potential fraud. Monitoring your credit does not result in a hard credit inquiry. You can obtain a copy of your credit report at Annual Credit Report
Consumer Financial Protection Bureau provides key questions that you should ask when contacting your creditor/lender. They also provide a useful checklist to use when contacting the creditor/lender.
About The Author
Marvette Critney
Marvette Critney is a Real Estate Broker in Metro Atlanta, GA, a Credit Expert, and the founder of 750 Credit Score Blog Resource Site, and the well-known blog site Brag Differently. Her credit advice and knowledge have helped hundreds to become homeowners. She is recognized as a leader in her field. Read more.