How to Protect Your Credit Score During COVID-19?
Posted by Creditkaro
The global pandemic COVID-19 has had a huge impact on the World. The pandemic has forced people to stay inside their homes and work remotely. Almost every big name across all industries is working remotely with its employees doing their work from home. This practice has also led to the reduced workforce, pay cuts, and global shutdowns which have obviously affected the economy.
During these dense times, it is of utmost priority that you protect your credit score during COVID_19 in order to maintain your good financial health. Your credit report is as important as your physical health at this point. It has become more important than ever to protect yourself in the current economic conditions. This is the time to keep a tight check on your expenses and financial habits and use your savings more than risky investments to keep you in good shape and a good credit score can help maintain that.
Another big problem is that due to the COVID-19 pandemic, majorly affected countries have issued government-mandated curfews and lockdowns which have forced customer services to shut down for the moment. This means that you could experience a longer turnaround time (TAT) for paid services. We at CreditKaro, are closely monitoring the outbreak and are making all efforts to keep you updated on our services. We are also making sure that you get all the valuable pieces of information regarding your finances in the comfort of your home.
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Here are some methods which can effectively help you protect your credit score during COVID_19 on track this pandemic
During these dense times, sometimes it can get difficult to pay back debts and due payments. So, you do not want to fall into a debt trap during this time, try and pay your debts as soon as possible to avoid getting a hit on your credit score. Making your payments on time will keep you ahead of time even if you are making the minimum required amount.
If there has to be the perfect time to keep a check on your credit score, it is now. At this point, it is extremely critical that your credit report is accurate. Your credit report helps you to identify any sort of fraudulent activity conducted out of your knowledge. If there is any, you will have to act on it before your score takes a hit because of this.
Times are difficult and soon there might be a situation when you might need a lump sum fund to fulfill an urgent requirement. People around you are already losing their jobs and the economy has taken a hit, so has your pay. It is particularly important to go on a tight budget to prepare for the worst-case scenario. Saving more than you spend will help you in more ways than one.
Identity occurs mostly during times of crisis. These events do not come with a warning but are at its peak during the chaos. During this time, you must ensure that you protect your personal information. If you feel you have been a victim of identity theft, you must freeze all your finances for the time being and inform the concerned authorities.
The pandemic has made us immobile as no services are available in the outside world. The world is under a global lockdown, so it is for the best that you move to online methods for registering any complaints. If you have any dispute related to your report to address, you can just log on to the online dispute centers and address your query.
Seeking financial counseling is not a bad idea at this point and is nothing to be embarrassed about. If you feel that you are facing a problem with managing your debts despite following all the right methods, you can seek help from financial experts who can help you out with a concrete debt management plan to help you in the future.
Service providers have either stopped their services or have started working remotely. If you are short of funds right now or you are not using a particular service right now, the intelligent thing to do is talk to your service providers and check if they are flexible with payment options, if they are you could save a bit extra at this point.
Due to the recent changes because of the pandemic, many lenders and financial institutions have made changes to their policies according to the government guidelines. There is a possibility, you can get them to lower the interest or the minimum amount to be paid for a few months. You could also request them to place your loan in forbearance so that you do not have to pay the money at the moment and your credit report will not take a hit because of this deferment.
Due to the recent pandemic, The RBI allowed banks to issue a moratorium period to its customers so as to reduce the burden of a loan payment. You can avail of this facility if you have opted for a loan or credit on or after the 1st of March. Opting for this is a good idea if you are short of funds because this will not affect your credit score. However, if you have funds to repay, it is advisable that you pay it off because a moratorium policy does not remove the interest for the period so you still have to pay the whole amount with added interest.
Also Read – Moratorium Policy – Loan EMIs & Credit Card Dues
Making big purchases during this pandemic will not be an intelligent investment to make. Big purchases may, later on, turn into bigger debts if you are doing them on credit. This will reflect badly on your credit score. It is extremely important that you only make space for essentials at the moment so that you have funds when you need them for the right cause.
This global pandemic may take some time to become extinct, so it is our duty to take essential steps to get out of this thing alive and healthy. Your physical and mental health is as important as your financial health, so stay at home until and unless it is extremely important to go out and make sure you have adequate funds for any kind of emergency. So, you should know how to protect your credit score during COVID_19.
Also Read – Benefits of Checking Your Credit Score Online
Stay safe, stay at home!
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