We are living in uncertain times with the coronavirus pandemic not showing any signs of easing up. People are concerned about their jobs as the world enters a recession. Not only do we have to contend with concerns about our health, but there is also concern about our finances. What will be the impact of the Covid-19 pandemic on credit reports?
Rather than wait around for your credit report to be negatively affected by the pandemic, it is far better for you to be proactive and take steps to protect your credit report. If you have suffered a reduction in income then look at ways that you can generate additional sources of income such as providing freelance services online.
Here are the steps that we suggest that you consider to protect your credit report during the coronavirus pandemic:
Review your Credit Report
If you are not currently monitoring your credit report regularly you should consider starting to do this. When you monitor your report on a regular basis it is much easier to identify any errors that can have a negative impact on your credit report. Errors are sometimes made and it is very important that you spot them early so that you can take the appropriate action.
If you want to see your credit report then you can do this here. You may require specific help with your credit report and our experienced team can help you so please contact us here. Leaving an error on your credit report is a big mistake as it will count against you and take longer to remove later on.
There are a number of services online that offer you the ability to monitor your credit report on a weekly basis (some have different time arrangements). Monitoring your report every 30 to 45 days is fine as it will enable you to detect any errors quickly and get them resolved.
Keep making Payments On Time
This might not be easy for you to do if you are experiencing a reduction in your income but we suggest that you do all that you can to make your regular payments on time during the coronavirus pandemic. When you pay your bills on time, your credit report will only improve.
If you have lost your job due to the pandemic and your income is severely limited then you can take other action to prevent your credit report from being impacted negatively. Some people will have emergency savings and if this is the case then you can use some of this to pay bills on time.
Get in touch with your Creditors
Lenders are well aware of the hardships caused by Covid-19 so get in touch with them right away if you are unable to make your payments on time. They may be able to offer you some financial assistance to assist you to get through the pandemic.
When you speak with a lender be totally honest with them and tell them what you are able to pay them. It will also help if you tell them when you expect to be able to make full payments again. A number of credit card companies are holding interest charges and waiving any late payment fees so it really is worthwhile you contacting them to discuss your situation.
Is a Balance Transfer possible?
It may be possible for you to move your credit card debt to a lender who offers a lower rate of interest on the debt. You do not want to be faced with high interest on your debt as this can get out of control very quickly.
Search online for balance transfer offers. Usually the offers only last for a specific period of time, but this can be enough time for you to bounce back and start being able to make the full payments again.
Take care of your Credit Report
It really is in your interest to take care of your credit report. The coronavirus pandemic is something that nobody predicted and it has affected the economy but if you take action it doesn’t have to affect your credit report.
Our credit report experts can provide you with help and advice on any credit matter. We have years of experience and have helped many people to get their credit report back on track. Please check out our website here.