5 Ways to Protect Your Credit Score During COVID-19
There has been a lot of financial uncertainty and misinformation since the pandemic started. For those who face reduced incomes or job loss, it’s a little more challenging maintaining good credit scores. You may be wondering if there are ways you can protect your credit score during the pandemic. The answer is yes! Let’s look at steps you can take.
1. Monitor your credit report
Checking your credit report regularly is important to track your payment history and avoid fraud or identity theft among other things. Lenders also look at your report to determine creditworthiness. If you haven’t been monitoring your credit report, now is a good time to start. Track significant changes to your report and catch mistakes before it starts to negatively affect your score.
2. If you can, make timely payments
Pay your bills on time and in full if your resources allow you to do so. In cases where mortgage forbearance is available, you will still pay back what you owe in the future. Deferred payments or temporarily reduced interest rates will not negatively affect your score. But whether your credit score is in good shape or not, it’s better for your score if you can make payments on time.
3. Dispute any discrepancies immediately
If you encounter a mistake or discrepancy in your credit report, reach out to the credit bureau that generated your report and where the information to be disputed appears.
4. Re-evaluate your budget and request help if needed
Many of us have already taken a hard look at our budgets to make sure we have extra cash for essentials. Continue to re-evaluate your budget and if necessary, get financial assistance. Talk to a certified financial counselor or your lender to see how you can plan for current expenses and future payments. Consult experts regarding your investments and retirement accounts before making any decisions.
5. Communicate with your lender
As you assess your financial situation and review your credit reports, do not hesitate to reach out to your lender regarding payments. In cases when you can’t make payments on time or need a reduction in payments, let your lender know. There is mortgage forbearance and other forms of available assistance that are COVID-19 specific. Have relevant financial documents ready and get in touch with your creditor to talk about your options.
At UW Funding, our team is ready to help answer your questions and explore solutions tailored to your goals and needs. Call us or send us a message to see how we can help.