COVID-19 won’t impact your credit score directly, but it could have an indirect impact because of the economic troubles it has caused. For example, lost income because of COVID-19 could lead to late bill payments. If credit card companies cut the limits on your cards, that could make your credit score drop.
There are plenty of threats to your credit during this pandemic, and if your credit score goes down, it could take years to rebuild it. Poor credit can make it more difficult to secure a low-cost personal loan or mortgage and can even come in to play when you are applying for jobs or looking for an apartment. The best approach is to protect your credit score before it takes a hit.
Stay on top of your payments
Paying your bills on time is a must. The factor that weighs most heavily on your credit is your payment history, and just one missed payment can drop your credit score by over 100 points.
What many consumers don’t realize is that a bill must be at least 30 days late before it can be reported as late on your credit file. So if you miss a credit card payment by a couple of days, you don’t need to panic. Just make the payment within 29 days of the due date, and it won’t hurt your credit. You can, however, be charged a late fee as soon as you’re late on a payment, so you should still make it a habit to pay on time…Read more>>