Many Americans are facing difficult choices during these tough financial times. Millions are out of work, and those who are still working may be facing reduced hours or wage cuts. During this ever-changing time, we need to make smart financial decisions. If you’re having trouble paying your bills, you’re not alone. Although your credit score might be the last thing on your mind right now, it’s important to take some steps to protect it.
- Pay your bills on time. Easier said than done, we know. Your payment history is the biggest factor impacting your credit score. So how can you pay all of those bills with a big reduction in income? Be proactive in contacting all of your creditors. Speak to your mortgage and auto loan lenders, utility companies, and others to see what options or payment deferrals may be available to help you through this unprecedented time. They may be able to lower or defer your payments. Being proactive with your lenders and other creditors may help you keep a “current” rather than “delinquent” account status on your credit report. Remember that non-payment of utility bills will also impact your credit score, so contact those providers ASAP if you’re having difficulty with payments.
- Consider a low-interest loan to help you get by. Some financial institutions, such as your local credit union, may be offering special low-interest loans to help you get through. While Benchmark has many low-interest loan options available for our members, we’ve also introduced a new Benchmark CARES Loan Program for business owners, independent contractors, and self-employed within Chester County. Many of whom haven’t been able to find assistance elsewhere. You can learn more about this program and other loan options on our website.
- Be aware of your credit utilization. This is another big factor in determining your credit score. It may be very tempting to just max out all of your credit cards to get you through this difficult time, but it may not be the best answer. If you’re maxing out your credit cards, you’re going to be faced with multiple, high-interest payments and high utilization of your available credit. You may want to consider a 0% APR* credit card balance transfer offer instead. Benchmark FCU’s Triple Play VISA Platinum Promotion is a good option. You’ll benefit from a 0% APR* for 12 months, a $0 balance transfer fee, and a $0 annual fee. An offer like this can help you consolidate higher-interest credit card balances into one card. Don’t want to transfer balances? Perhaps you can request a credit limit increase on your existing card to help with your credit utilization. Ask your credit card issuer what assistance plans might be available to help you with payments.
- Check your credit report. You may be wondering why it’s important to do this now when it seems like life is at a standstill. While it seems like so many places are closed and so many have stopped working; scammers have not. Scammers are actually hard at work trying to take advantage of people like you and so many others. This is why it’s so important to keep a close eye on your credit report and watch for any inaccuracies or signs of identity theft.
Benchmark is here to be your financial partner
We realize that you’re facing economic hardship and an uncertain future. Being as responsible as you can now by paying your bills and avoiding incurring additional high-interest debt will help you to recover faster as things start to get better. It’s important to remember that things will get better; eventually, things will get back to normal and the healthy credit habits you are building now will stay with you. Read more helpful financial tips like this on our Benchmark Blog.
*APR = Annual Percentage Rate. Rates subject to change & based on an individual’s credit history. 0% Introductory Rate is valid for purchases & balance transfers from other institutions within the first 90 days from card opening. The 0% rate will be in effect for 12 months from the first qualifying transaction within the first 90-day period & after the 12 months, the rate on all unpaid balances will convert to the rate member qualified for at card opening. Triple Play Promotion is only valid on new VISA Platinum Cards & subject to expire without prior notice.