What you should know about your credit score
There are still a lot of unknowns about the mid- and long-term impacts of the coronavirus on the financial well-being of Americans. Typically, missing or skipping payments on rent, utilities or other loans has a negative impact on your credit score. But with many financial institutions allowing missed payments, does that mean they will extend grace in relation to your credit standing? Not necessarily.
While we don’t know for sure how the coronavirus will affect your credit score, there are a few things you can do to put your best foot forward:
Learn what your current credit score is. Understanding your current credit score will help you track how it changes in the coming months. Without your current score as a baseline, it can be hard to tell if the score is changing over time. If you need help finding out what your credit score is, call United Housing at 901-272-1122.
Pay what you can. Continuing to make your regular payments is the best way to avoid a hit to your credit score. At the same time, try not to run a high balance on your credit cards. We understand that times are challenging, and making all of your payments may not be possible. Prioritize your family’s immediate needs, like food and shelter, first.
Keep detailed notes of any payments you skip. If you skip a payment of any kind, keep tidy notes so you can track progress toward paying them back. If you understand what you missed and how much you owe, you can work toward paying off your debt in a timely fashion. Repaying debts quickly will help prevent a major decline in your credit score.
Stay in continued communication with your lenders. We can’t say for sure what your personal repayment plans will look like. Talking with your lender about their repayment options will help you create a plan to repay your debt. You can prioritize based on deadlines and debt amounts to decrease your debt as quickly as possible. Again, if you carry debt for a shorter amount of time, your credit will be affected less.
If you have questions about managing your credit score, working with reliable lenders or building your credit, call us at 901-272-1122. We’ll be happy to help you and your family through these processes.
