Experts reveal the impact of covid-19 on credit scores

Covid-19 pandemic has brought a 32.9% decline to America’s GDP. Businesses have come to a standstill and economic activity has taken a plunge. Since then businesses and individuals are trying to get back on their feet and streamline their finances. 

The dire economic conditions have forced the common man to borrow more credit. If you are a borrower, it is important to understand how to maintain your credit scores in these troubling times. 

First, let us take a look at the impact of Covid-19 on credit scores.

Covid-19 and Credit Scores

If you can make a payment on time and in full, you can maintain your credit scores. Short-term delayed payments do not affect much, but if you have long-term payment delays, they will affect your score. By the looks of it, Covid-19 is here to stay and habitual delays will greatly impact your credit scores.

According to the latest report, the US national unemployment rate reached 14.7% which is said to be the highest recorded rate since The Great Depression of 1929. We have identified some common factors that have affected borrowers and how to counter them to a better credit score.

Using More Credit

Using more credit has a 30% impact on your credit score.

Trying to Obtain More Credit

Asking for new credit cards especially when you’ve maxed out your current credit, sends up red flags to creditors. This directly impacts your overall score.

Impact of Covid-19 on Credit Scores

How to Minimize the Impact of Coronavirus on your Credit Standing?

The impact of covid-19 on credit scores have been hard, but you can control your credit scores by avoiding some small yet important mistakes. Here are some measures you can take that will help you maintain and improve your score.

Final Verdict

If your credit score is not on point and you want to improve it, Credit Repair Today can help you fix your score. Credit Repair Today is a licensed credit repairing company that offers credit restoration services all across the United States. We can help you recover your credit score starting today.