We all know that the Coronavirus pandemic has brought about a certain level of change in everyone’s daily life. If you want your personal finances to move forward, it is vital to prepare yourself. Currently, your credit score is certainly not at a top-notch level and considering the financial uncertainty that many are going through, it is critical to take care of your finances as we move into the last quarter of this cursed year, 2020.
As we know that a good credit score can open up opportunities for borrowing money and loans at an affordable interest rate, this is the right time to take action. You could altogether save money in the long run.
Tips to prepare your credit post pandemic in 2020
If you have to secure your post-pandemic future, there are several steps that you need to take. Read on to know about them.
- Watchfully monitor your credit
Credit monitoring products can let you track your credit and also get alerts in case of potential fraud. There are free sources like CreditWise, Chase Credit Journey and few others with the help of which you can constantly monitor your credit. You may even claim a free credit report from the three credit bureaus by logging on to annualcreditreport.com. Check the balances and the names of the creditors listed.
- Go through the statement minutely
It is expected that you didn’t use your card during the pandemic as you were trying to save. Nevertheless, you should check the statements carefully in case there are unauthorized charges. In case you spot a purchase that you can’t identify, contact the issuer. During the pandemic, the identity thieves and scammers were more active as they had to earn for themselves by preying on vulnerable consumers.
- Plan your budget post-pandemic
This is particularly important if you were making the minimum monthly payments during the pandemic. Take a close look at the expenses and your income and start off with a debt repayment plan accordingly. Thanks to the pandemic that you may have realized by now the main areas where you used to spend more. Chuck off those expenses and devote your income towards debt payment.
- Stay aware of issuers offering you hardship programs
There are several credit card issuers who will monetize this situation and offer you financial hardship assistance during the pandemic. However, before you jump on to accept them, you have to ensure when these programs end. While they can guarantee fewer missed payments, the term of the loans may be extended to an extent where you end up paying more on interest rates. This will have an adverse impact on your credit score.
When you start repairing your credit post pandemic, begin with the simple steps of reviewing the present condition of your credit report. It is a great habit to monitor your credit and once you engage yourself in doing so, half the battle is won. All that is left is to prepare your credit for the near future.