Here’s How to Maintain a Credit Score in the Middle of the Corona Pandemic

Maintaining a credit score during a pandemic is not easy because there have been many incidents of reducing working hours and losing jobs. In times of uncertainty like this, it’s time for you to ask for help. Contact your credit service provider for various waivers. Also, try to list the priority debts you have so you know which bills to pay first. Because, if your debt bill payments are late for up to 30 days it can make your credit score worse. A good credit score is in the numbers 700 – 850, while the credit score that needs attention is a score below 650. Creditors with a longer credit history will have the highest credit score possible, which is better than new creditors, as long as it is not damaged. by late payments. The duration of credit history has a 15% component in the credit score assessment. Every debt that you make becomes an assessment for the next credit debt. So it is important to make sure your previous debt is not in trouble.

The most important component of a credit score is the trust to pay off debts that are owed to you. Think again, are you paying your bills on time for every credit you have? If you pay up to 90 days late, the score will get even worse. Also make sure you don’t have pending debt settlement, asset confiscation, to demands from credit service providers. For you to have a good payment history, make sure you have an amount of debt that is no more than 30% of your total monthly income. The less debt you have, the easier it will be for you to pay it so that there are no arrears that can cause a bad credit score.

Besides, you should not open more than one new credit account at the same time or nearby. Opening several new credit accounts shortly will reduce your credit score. At least new credit has a score component of 10% of your credit score. Because people will tend to open new accounts when they experience cash flow problems and are afraid that they will not be able to pay all debt bills fairly. At least give one year break if you want to open a new credit account. Plus, the 10% score component in the credit score assessment also applies to mixed credit uses.

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