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What Does Coronavirus Crisis Mean For Your Finances?

In the past few months, we have all noticed a crisis brewing due to the COVID-19 epidemic; however, it wasn’t so clear how it was going to affect everyday Americans. Read out what does coronavirus crisis mean for your finances and how to protect credit score during the coronavirus pandemic?

Now, we’re hitting a point where the crisis is starting to affect the stock market, interest rates, working life, business cycles, and even employment.

Cities and states are calling states of emergency, starting to lock down non-essential business and government functions for the coming weeks.

Schools and public spaces have been closed and most large gatherings have been cancelled proactively. There are ways on how to protect credit score during the coronavirus pandemic.

Panic has started to set in because we’re dealing with something that hasn’t been seen in a long time.

It’s scary, and for people who aren’t working or are working fewer hours due to the epidemic, it can have a drastic effect on one’s finances.

We at The Credit Pros want to assess the situation as clearly as possible in order to understand your own personal situation while also alleviating some panic.

Dealing with the Unknowns

There are many people who are worried if they’re going to have a job to go back to after the lockdowns end. You might be one of them.

There is also uncertainty with stock market movements and supply chain management. For many business owners, it can be difficult to even get products ready for sale since fewer and fewer people are working.

Sourcing from China in the last few months had become difficult due to the outbreak in Wuhan and the Chinese government’s responses. 

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We don’t have an answer for the unknowns. However, we do have some tips to relieve some panic and help you understand the situation from a logical point of view.

  • Stock market movements are not a perfectly accurate measure of overall economic performance or potential. Just because stock trading causes things to move up or down doesn’t mean that your income will necessarily be personally affected.
  • Being specifically told to work from home doesn’t mean that you’re more likely to be laid off.
  • Business activities being temporarily paused affects everybody, and you are not alone in feeling scared.
  • Just because the virus continues to spread doesn’t mean that all business activities will be held in lockdown forever until the virus disappears from the planet. 

It’s important that, during a time of crisis, you’re able to see the situation from a logical point of view rather than get swept up in the emotions of fear and worry.

Keep reading what does coronavirus crisis mean for your finances?

What’s Happening to My Credit?

Your credit will only be affected if your ability to make payments is affected. However, it could mean that credit becomes harder to come by, and that getting more money to borrow may become more difficult for those who have currently lower credit scores.

One should know how to protect credit score during the coronavirus pandemic. Also read about improving your credit scores: The Rule Of 45.

Some banks have taken measures to make it easier for people to deal with their credit situations. It’s doubtful that these will hurt your credit score.

There are a couple of credit myths you will find as for reference credit myth – each credit pull hurts.

What Does Coronavirus Crisis Mean For Your Finances

Your credit is the last thing you should be worrying about, as it’s one of the things that is the least likely to be affected.

Don’t Miss: How To Protect Credit When Unemployed

If the crisis is affecting your ability to pay, it’s important that you not delay and make sure that you contact your lenders.

They may not be in office to take your call, and they may not be in office on the payment due date.

Even so, it’s important that you follow up with them and not let a missed payment slide.

These are the known tips on how to protect credit score during the coronavirus pandemic. Keep reading what does coronavirus crisis mean for your finances?

Final Thoughts

We at The Credit Pros want to urge everyone to stay safe. Work from home if possible, and specifically ask your employer if it’s a possibility for you.

Keep your contact with others at a minimum and stay inside except for the absolute necessities. Wash your hands often and take care to keep your areas clean. 

Final Thoughts

It’s imperative that every American do their part to ensure that the spread of the virus is slowed down enough for the necessary measures to be taken by hospitals, researchers, and pharmaceutical companies. 

With the combined effort of every American, the lockdowns will end and business will resume as normal.

The post What Does Coronavirus Crisis Mean For Your Finances? appeared first on The CreditPros.

Why a Credit Score Matters

Why a Credit Score Matters

Why a Credit Score Matters

Your credit score and history are the most important parts of your entire financial life. Basically, your credit score will follow you forever and it’ll play a big role in numerous major financial situations in your life. Most people think that credit score matters only when it comes to being approved for loans or credit cards, yet it actually goes far beyond it.

Credit Score vs Credit Report

You’ll hear credit report and credit score interchanged, yet it’s essential to understand the primary difference between the two. Basically, your credit report is your credit information’s detailed history. It’ll contain current credit information, delinquent payments, balances, personal inquiries and identifying information, and bankruptcies.

On the other hand, your credit score is the 3-digit number based on your credit report information. After considering each of the aspects on your report, there is a mathematical formula used for determining what your score must be. If the score is high, it is better. The industry’s leading credit score is FICO, which ranges from 300 to 850.

Insurance Rates

Whether you’re buying homeowners insurance or insuring your vehicle, your credit score would likely play a role to determine your premium. Typically, insurers make what’s called insurance score, which is based largely on your own credit score, yet with some factors. Poor credit score may cost you lots of money in extra premiums every year while good credit score may qualify you for discounts.

Beyond Loans

Everybody knows that if you have low credit score that it’ll be much harder to find banks or credit card company that will lend you cash, yet it goes beyond that. Other than that, not just your score will affect whether or not you could borrow cash and at attractive rates, yet it could affect everything from your insurance rate to employment opportunity.

Employers May Check Your Credit

A controversial and increasingly common practice now takes place as the employers check the credit of potential new employees. Arguments for doing it are that employers believe they could use credit history to determine the responsibility. There are situations where bad credit history can be because of something completely out of one’s control, yet it’s still something you should bear in mind.

Resources for Credit Score

You might need to pay to get your complete credit history and credit score, yet it’ll be worth it and might be the difference of you getting that mortgage or loan you’re hoping to get.

Should You Think about Your Credit Score?

If you are worried about your credit score, it is worth putting some time to raise your credit score. Other actions that could help with it include the use of your credit card in a responsible manner such as maintaining a low ratio of credit utilization, paying bills on time monthly, as well as being thoughtful regarding how and when new accounts you open in the long run.

However, you do not really have to think about your credit score. You do not need FICO to tell you that you’re making great financial decisions. You can live life with poor credit score, but having a good credit score can still make a difference.

 

 

The post Why a Credit Score Matters appeared first on Creditmergency.