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How to Maintain Good Credit Score during COVID-19

Coronavirus has financially affected several people. With people losing jobs in every corner of the world, global credit taking capacities have taken a significant hit. In such a grim environment, how does one manage to procure a loan if their credit score is really low?

The obvious answer to that would be, they’d have to try and revive their credit score. But the real problem is, with so much financial uncertainty in the air, doing that seems next to impossible.

That’s why friends, we’ve compiled a list of smart tips that can help you maintain a good credit score even today. So are you ready to learn about these tips? Well, let’s start.

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Unsplash | Maintaining good credit score during COVID can be challenging

Find your score

The very first step would be to find out where you stand with regards to your credit score. Anything above 750 usually falls in the green bucket. A credit score is calculated based on different parameters, and a major one is repaying debts on time.

Track your score

Try to regularly monitor your credit score. Take a look every three months to see where you stand. In case you see that the score is dropping, make sure that payments are made on time. A low credit score can impact your credibility.

Watch your credit card debts

One of the reasons credit score can be low is due to late payments of credit card bills. To avoid this from happening, set up reminders. This will allow you to make payments on time so that late payments don’t get into your financial history. If you’re unable to pay off the complete bill, ensure that you at least clear the minimum amount.

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Pexels | Watch your credit card debts

Aggregate all your debts

If you have multiple loans on a credit card, it’s better to have all your debts pre-calculated for the next 2 – 3 months. This will help you in understanding your financial situation. You can make plans keeping in mind the minimum payments required to ensure that your credit score stays unaffected.

Settle bills on time

Unfortunately, even the smallest of unpaid bills count against your credit score. Note bills due dates and make it a point to pay them right away. Doing this will keep you from having to pay the accumulated amount later on. Paying off smaller bills will go lighter on the pocket as well! 

Never withdraw cash from your credit card

Withdrawing cash from your credit card can bring your credit score down drastically. Not only are the interest rates on such an action high, but they also become effective from the moment you withdraw the cash. Check for other options if you need money.

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Pexels | Avoid withdrawing cash from your credit card

To give a last few words

By following the simple tips given above, you should be able to ensure that your credit score remains unaffected during the pandemic. We do hope things will become better soon!

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