For everyone heavily affected by the widespread COVID-19 issue, know that you may actually be eligible for relief in paying bills, wherever you are in the world (since the coronavirus has spread to all parts of the planet anyway) as this knowledge can help prevent further damage to your credit from late payments as we’re living in a time crisis when protecting your credit is the best thing you could do to stay financially stable. However, any hardship and forbearance program isn’t issued to you automatically so you have how and when to apply for most of them but do take note that you would also have to understand how some of these can directly affect your credit scores.
In a state of financial crisis, access to credit is a definite lifeline and probably the next best thing apart from a really hefty emergency fund. This is why it’s of absolute importance to protect your credit where you’ll have better options when you need them, such as being able to qualify for a low-interest loan for example, but this is only the tip of the iceberg. The most important factor in protecting credit is to not, by any means, miss a payment. This is because a missing payment for more than 30 days can cause your credit score to plummet down to abysmal levels, even if the payment is just delayed, and that bad mark can stay on your account for years.
That’s not to say that your score can’t drop in other ways since if you use too much of your credit limits, just about the same thing happens but that kind of problem is more easily fixed than the other: just pay your balances and your score will rebound. But in times of financial crisis like nowadays when cash is so short that even with concessions you just can’t help but not be able to pay, what with the lock-downs and preceding unemployment, you must, by whatever means necessary, prioritize only the most important bills and seek immediate sources of help.
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