Do not let COVID-19 affect your credit score

()– The COVID-19 pandemic, which began in March, has turned the financial lives of millions of Americans upside down.

While the economy is showing signs for recovery, there are many Americans who are still unemployed, and must dip into their savings in order to cover basic living expenses. This raises the question: How can you preserve your credit score? For more information, read on.

• Contact your lender ASAP if you can’t make a payment.The biggest factor that affects your credit score is on-time payments. Many lenders will offer you emergency support, such as deferrals or forbearance options. This may allow for reduced or suspended payments for a certain period. You should not accept these terms if they expire soon. “call your lender to discuss what options are available,”Rod Griffin is the senior director of consumer advocacy and education at Experian.

• Look for ways to boost your credit score.Credit building can be hard, especially for those with a limited credit history. Experian’s tool is free. Experian BoostBy giving you credit for your on-time utility, telephone, and streaming service payment payments,, you can instantly raise your FICO score.

This type of alternative financial information, also known as “consumer-permissioned data,”This allows you to manage all your data securely and get better credit. Experian Boost users experience an increase in credit scores, with an average of 12 points. This is enough to make a big difference in your ability to apply for any type of credit or loan.

• Consider getting a balance transfer credit card or one with an introductory offer.If done responsibly, it can increase your credit score. It will also give you more time to pay your debts off or allow you to get a better credit rating. “welcome bonus”Perhaps hundreds of dollars. Experian offers personalized credit card options. CreditMatchBased on your financial history, we can help you obtain the right card.

• Pay attention to your utilization ratio.Your total balance to limit ratio (also known by the “Total Credit Score”) is the basis of your credit score. “utilization rate”). Your credit limit can be increased by opening a new card. You can increase your credit score by decreasing your utilization rate as long your total credit limit remains the same. Transfer balances to cards with lower interest rates and pay attention to temporary low interest rates.

Although any balance can affect scores, it is best to keep your utilization down to 30 percent for all accounts. Achieving a high credit score is possible “Keep your utilization in the single digits, or even better, pay your credit card balances in full each month,”Griffin.

• Fight fraudsters by checking your credit report regularly.Since the pandemic, there has been a significant increase in attempted credit- and debit-card fraud; more than $100 million has been lost to COVID-19-related fraud according to the Federal Trade Commission.

You can receive free weekly credit reports from Experian, Equifax and TransUnion through April 2021 by visiting AnnualCreditReport.com. Experian also offers a free credit monitoringService that provides real-time alerts and credit score tracking. Also, an updated report is available every 30 days.