As the world is suffering the physical effects of COVID-19, you may be battling your own war against unemployment, layoffs, furloughs and credit card companies. While the reasons behind being unemployed or laid off are important, it does not make personal finance any easier.
Worldwide people are finding themselves trying to survive without an income. Some might be using credit cards to get by. However, without an income to pay their monthly balances their credit scores are dropping. Is there a way to get back on your feet? If you are one of these individuals there is a hope to recover your credit score due to the COVID-19 pandemic.
Lots of People Are Suffering
There are a lot of people in a situation just like yours. Responsible people who have never had a single delinquent payment may have suddenly woken up without a way to pay the bills. Back in February, those individuals were in a strong economy. They may have had no problem making their debt payments. However, they now turned to credit to pay for their very basic necessities.
Certain researchers and economists predict job loss will reach into the multi-millions, even tens of millions. The current unemployment rate is at 3.5%, with some predictions placing it at 32% by the time this pandemic lessens. Some factors that play into these counts include:
- Many food services and restaurants are no longer able to serve dine-in meals. While some are still offering take-out or delivery, there are stay-at-home orders around the country. Many in the food services industry have lost their jobs because of this severe decrease in business.
- Most service-based businesses have been forced to close. Barbers, cosmetologists, massage therapists and other similar professionals are unable to do their jobs with social distancing measures in place.
- Individuals in high-risk categories are self-isolating, choosing not to go to work in order to protect their health
- Those with COVID-19 symptoms, and the disease itself, have to deal with the symptoms and disease, and after recovery, have a period of self-isolation and cannot work during that time. They may also have astronomical medical bills depending on their insurance coverage.
Of course, there are many other factors at play, but the point is you are not alone. There are millions of people in the same boat wondering what they’re going to do when all is said and done and they their credit scores destroyed.
There Is Hope
COVID-19 is wreaking havoc on a lot of lives, but if your damaged credit score is your biggest concern at this time, there are methods to soft the damage. Here are some viable strategies to help protect your credit report.
- Send a statement to the credit bureaus. It doesn’t need to be a big, long explanation of what’s going on because they’re also in the midst of COVD-19 effects. Something as simple as “I was laid off due to COVID-19 and am waiting for an unemployment check, therefore I couldn’t make this payment” would work just fine.
- Stay in touch with your creditors. They are all dealing with the same situation you’re dealing with. If you are about to miss a payment, give them a call to discuss your options. You may be asked to put the details in writing, so your creditor has a copy of everything that’s going on. Will they defer payments? That’s on them, but you should at least try. Many financial institutions are offering flexibility in response to this pandemic.
Tradelines Can Help Your Credit Score
One effective strategy is to utilize tradelines to boost your credit. This is a process in which you pay to be an authorized user on another credit account. These tradelines have outstanding credit scores, which automatically transfer to your credit history. To get started, you will need to apply with a reputable company. They will authorize user credit accounts and give you a list from which to choose. You look over the tradelines available and decide which to purchase.
Tradelines range from cheap to a little pricier, but even a cheap tradeline will boost your credit score. Once you have decided on a tradeline to purchase, you’ll send the payment in full to the tradeline company, and the line could be posted in as little as one week. Many lines will remain posted for 30 days or more beyond the date of the statement, which keeps your credit score rising. In hopes that this pandemic eases within that time, you’ll have that grace period to find a job so you can start paying off your debts again.
Once all is said and done, the coronavirus pandemic has eased and people are getting back to their regular lives, will you need the tradelines you purchased? Are there benefits that extend beyond this pandemic? Absolutely! The following are just a few benefits to look forward to.
- More Opportunities for Loan Approval – After your credit history gets damaged due to the effects of COVID-19, it may seem impossible to recover. Tradelines offer you an outlet that aids in recovery, and they give you more opportunities to be approved for loans in the future. Lenders will look at your improved credit report to see that you were on good terms with other creditors during the pandemic. Whether you’re taking advantage of the economy to buy a new car, need a new credit card or any other type of loan, utilizing tradelines gives you those opportunities.
- Higher Chance of Low Interest Rates – When you hear companies advertising low or no interest rates on their products, particularly after the economy has been in a slump, those great rates are often only for individuals with stellar credit. After the pandemic is over and you’re rebuilding your life, you have a higher chance at being offered those lower rates.
- Greater Chance to Own or Rent a New Home – There are some individuals out of a home right now because they can’t make their rent or mortgage payment, and you might be one of those people. After utilizing tradelines and improving your credit score, you will have that good credit history to get yourself and your family into a new home once the world calms down and you are able to secure a new job.
- More Opportunities to Get a Job – If you are one of the millions of individuals who lost a job during this crisis, and your credit history has suffered, you might have a tough time finding a job again. Tradelines give you those opportunities by showing future employers your solid credit history.
The best time to start is now. The COVID-19 pandemic is still taking a huge toll on individuals around the world, but you need to try to take hold of your financial future. Get started today by contacting a tradeline company to apply.