How to Minimize the Impact of Coronavirus on Your Credit Standing

 

The COVID-19 pandemic has taken a toll on the world's economy and international trade, affecting the financial standing and well-being of millions across the globe. Although physical well-being and safety outweigh financial security in the short run, consumer credit scores and reports are expected to play a vital role in household and national recovery in the following years.

Here are some effective ways to minimize the impact of the coronavirus on your credit standing:

  

1. Pay Bills on Time

 

Along with credit cards and loans, payment history also includes utility bill payments. If paid late, this can affect your credit history and stay on credit reports for a long period of time.

 

Paying bills can get troublesome, especially in the face of an economic downturn. However, making minimum debt payments by their monthly due date will help keep your credit score in good shape.

 

Be sure to set reminders and meet the creditors' minimum requirements to ensure your payment history is in good standing and avoid late fees. 

 

 2. Contact Lenders for Assistance

 

Before you miss a payment, call lenders and creditors to discuss the options available. With the current pandemic rise, several lenders are creating policies to help customers who require extra time to pay their bills. They might be able to pause your payments or lower the interest rate temporarily. 

 

Typically, late payments are reported to the credit bureaus 30 days after the payment is due. However, a new provision (Section 4021) on Congress' coronavirus relief bill states that your lenders cannot report any missed payments as delinquencies to the credit bureaus if a loan is in deferment or forbearance. Reporting an account in deferment minimizes the impact to the credit score if the account is in good standing, protecting credit history. 

3. Check Credit Regularly

Double-checking account documentation and credit reports is vital, especially now, when coronavirus scams are on the rise. This helps ensure your accounts are reported correctly.

 

In addition, potentially fraudulent activity can be identified and dealt with before any credit damage occurs. The top credit bureaus—Equifax, TransUnion and Experian—offer free online credit reports. A copy credit report from each bureau can be requested once every 12 months at AnnualCreditReport.com. 

 

 4. Get Advice from Credit Counsellors

 

If you still require help to manage your existing debt, a certified credit repair consultant may be the right solution. They offer advice on credit repair and create debt management plans to help clients repay debts in a manageable way. 

 

Oak Credit Repair offers affordable and fast credit repair services throughout the US. For more information, give them a call at (888) 625.2264 or fill out this form for a free consultation with their credit repair consulting experts.