Survival mode has kicked in for many people in recent weeks. We want to make sure we keep a roof over our heads and food on the table – our credit scores may be one of the last things on our minds. However, for those affected by the last recession, they can tell you that ignoring your credit score and not making payments on your loans can severely stunt your financial wellness for years to come.
While some companies are being more lenient than others when it comes to making payments – you absolutely must take steps to ensure that you are making your payments on-time and keeping your credit score healthy throughout the pandemic. For more information on how to do this, keep reading.
How Do I Skip Loan Payments During COVID-19?
While your loan company has likely sent emails or posts to you explaining their payment policy during the pandemic, one thing is certain, you cannot simply not pay your loans.
If you fail to make a payment – this is going to affect your credit score negatively. Instead, you must speak to your loan company and put a temporary stay on payments. This will allow you to effectively skip payments without incurring negative credit score penalties. You will pay more over time – as your APR will continue to accrue during this time. However, hopefully, after the pandemic you can make extra payments in order to get caught back up.
How To Avoid Late Loan Payments During COVID-19
We are all very stressed these days. It can be hard to remember everything that we have to do due to our lack of schedules and routines. In order to make sure your loan payments are on time, taking proactive measures like signing up for automatic payments will help ensure that you never miss a payment.
You should also make sure to build a budget and to keep all of your finances well-organized. During better times, you might have not had to keep track of these things. Now, it is important that you budget and make sure that you are keeping track of all spending and payment due dates. This will help you make sure that you have enough money in the bank to make your automatic payments, and help you save more money in the process.
How To Fix Credit Score Problems Caused By COVID-19
Not all situations are unavoidable, but there are some proactive measures you can take to help fix any negative credit score issues you may have had due to missed payments.
For instance, you can look into a credit repair program that will help you repair your credit if you get any negative marks on your credit report. You can also make sure that you are using credit cards that help you save money instead of using a debit card for your purchases. A credit card will help you build credit – you just need to be sure that you are still sticking to your budget and not using your credit card on a mad shopping spree.