Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Market Insanity

COVID-19 and Your Credit Score

daniel , , , , , ,

As the world is suffering the physical effects of COVID-19, you may be battling your own war against layoffs, unemployment and credit card companies. While the reasons behind being laid off or unemployed are important, it doesn’t make your financial situation any easier.

People all around the globe are finding themselves trying to survive without an income. Some might be using credit cards, but without an income to pay their monthly balances, their credit scores are dropping.

People all around the globe are finding themselves trying to survive without an income. Some might be using credit cards, but without an income to pay their monthly balances, their credit scores are dropping.

Is there a way to recover? Is there light at the end of this tunnel? If you are one of these individuals, trying to find a way to repair credit score damage due to COVID-19, there is hope.

You’re Not Alone

There are a lot of people in a situation just like yours. Responsible people who have never had a single delinquent payment in the course of their lives are waking up without a way to pay the bills. Back in February, these individuals were living the good life, using their credit cards for extra, large expenses, and have now turned to credit to pay for their very basic necessities.

Certain economists and researchers predict job loss will reach into the multi-millions, even tens of millions. The current unemployment rate is at 4.4%, with some predictions placing it at 32% by the time this pandemic eases.  Some factors that play into these counts include:

  • 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.
  • 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.
  • Individuals in high-risk categories are self-isolating, choosing not to go to work in order to remain in good 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.

Of course, there are many other factors at play, but the point is you’re not alone. There are millions of people walking the same path you are walking, wondering what they’re going to do when all is said and done and their credit scores are destroyed.

There Is Some Good News

COVID-19 is wreaking havoc on a lot of lives, but if your damaged credit score is your biggest concern at this time, there is some good news! The following are some things you can do for the best outcome for your credit report.

  • 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.
  • 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.

You Can Utilize Tradelines

Another huge help could be purchasing tradelines. This is a process in which you pay to be an authorized user on another credit account.

These tradelines have stellar credit scores, which automatically transfer to your credit history. To get started, you will need to apply with the tradeline 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 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.

Getting Started

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.