Credit Tips During Covid-19

Credit Tips During Covid-19

 

BE PROACTIVE.  Lenders know what is going on currently in the world and with our economy. People are being laid off, hours are being cut, stay at home orders are being enforced.  Here are a few things you can do to protect your credit for what’s possibly to come. 

  1. CALL your creditors.  Do not wait until your bill is about to be due to call to see if you can get a payment extension.  Phone wait times are longer than usual, call at least a week or two to see what your options are.
  2. Don’t wait for the government to bail your credit out. They didn’t in 2008 and they surely are not now.  If you can defer payments, do so. Even if you CAN pay, see what you can push back and still make payments.
  3. Understand that eviction freezes only mean you won’t be removed from your rentals right now.  You will still be liable for any and all rents when evictions resume that you have not paid. Evictions RUIN credit reports every day. 
  4. Lots of utility companies have implemented no shut off orders.  This does not mean you are not still liable for your bill. If you go 3 months without paying your light bill because they won’t disconnect you, you will still have 3 months of light bill that you owe.  
  5. If you have a pretty solid credit history and have credit cards, CALL and request credit limit increases and/or interest rate deductions.  BANKS ARE WILLING TO WORK WITH US right now. Call your business credit cards too.
  6. Be patient and stay safe. Don’t fall behind if you don’t have to.

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