The Impact to Your Credit Score After COVID-19
COVID-19 has not only posed risks to our health, but could also have an impact on our financial futures.What can you do to protect your finances against COVID-19? Dovly’s Chief Credit Officer, Tedis Baboumian, identifies small steps you can take to shield and improve your credit at a time where higher scores are key.
Be proactive – pull your credit report.
Look out for any inaccuracies that may be hurting your credit score. Your credit score is a precious number when you’re looking to get a low rate on a personal, auto, or mortgage loan, and even a lower rate on a credit card. Prepare yourself to get the best rate possible in times when you may need it most.
Tackle inaccuracies and boost your credit score with help from the experts.
Dovly’s online credit repair services are simple, transparent, and can make a major impact on your score – 92% of customers experience a 54-point increase in just 6 months. With unlimited credit disputes, credit monitoring, score updates, and more, Dovly takes action to make sure your report is accurate and your score is climbing.Note: COVID-19 has negatively impacted many jobs and many workers as a result. The credit bureaus are limited on staff, so mailed-in disputes will be delayed. Look for credit repair solutions with electronic dispute options that get your disputes processed faster.
Be smart about your credit card activity.
Use credit cards that have not been used in over 3 months. If you’re having trouble finding the cards, call and ask for a replacement ASAP. Utilization plays a large part in determining your credit score, so make sure your accounts aren’t totally stagnant.Set goals for yourself to pay off credit card balances. If you can’t pay them off in full, reduce them to 50% of utilization. If you can pay more, aim for 10%-30% of their limits.
Know what to expect – credit cards and rates.
Credit card companies will make it more difficult for people with lower credit scores to get credit cards. The current environment with COVID-19 has forced many people to charge more than usual on their credit cards, so default rates will likely increase. What does that mean for you? Credit card companies might reduce your limits or close your accounts, especially those that are inactive.
Protect yourself against identity theft.
During this already stressful time, identity theft will increase. Keep a close eye out for phishing emails and unusual texts and phone calls. Dovly includes identify theft protection as part of their services and works 24/7 to keep your accounts safe.
Why choose Dovly?
Dovly’s AI credit engine can get you a head-turning credit score with credit (re)building, monitoring, alerts, scores, tips, and tricks – all in one place. Try it risk-free with our free membership tier.
