Keeping your credit profile protected during COVID-19

The entire country came to a standstill in March of 2020. Even though physically, things felt stagnant, work continued digitally. All kinds of tasks as well as financial plans were executed online. As quick and smooth these processes were to adapt, they opened doors to tough times for many. Company revenues dropped and job losses led to a financial upheaval that had an impact on numerous individuals and families.

In the middle of such chaos, it is easy for information to slip through the cracks and get missed. Your credit report is one such important document. Despite being important, it is common to miss out on maintaining the health and wellness of this report, simply because when you don’t need financial aid, then why would you have a credit score check? But that might not be a beneficial approach. Let’s read why.

Related Reads: 5 Habits to Maintain a Healthy Credit Score

While you are busy maintaining your health and basic finances amidst a pandemic, here are a few ways to ensure that your credit profile remains safe:

  • Stay on top of your credit report: Even if you have a job and your finances are sorted, it is important to keep an eye on your credit score only to keep a sense of how things are progressing on your credit profile. RBI-approved credit bureaus like CRIF are required to offer you one free report each year. It is important to take a look at your credit report to make sure that your identity is safe and your payment details are updated on time.
  • Maintain the regular payment discipline: A disciplined approach to paying your loan EMIs and credit card dues go a long way in helping your credit profile. Staying updated on your transactions will prove to be helpful in maintaining a good credit history.
  • Find out what impacts your CRIF credit score: It is said that it is always good to know your enemy, or in this case, your credit score’s enemy. What could make it rise or what could cause a fall in your score is very important. In a financially unstable time, it is wise to know what could impact your credit score so that you can avoid them completely.
  • Dispute discrepancies online: Incorrect details on the credit report can also cause your score to drop by a few points. If this is the case, you must ensure that your details are updated immediately and your score reflects it.
  • Be vigilant about identity frauds: Desperate times could lead to desperate measures where someone might try to steal your identity to make inquiries and pull credit from the bank on your good credentials. Make sure you tally all the credit inquiries you have made with the ones reflecting on the report. Also, be on the lookout for undetected credit card transactions. In case these transactions are missed, they could pile up and make a huge impact to your credit profile.
  • Financial assistance, if needed: If you have ongoing loans that have high penalties or credit card dues that need to be paid off, make sure you don’t disturb their regularity. Even one missed credit card payment can impact your credit score. Make sure that you pay your dues on time and if your savings are of no significant use, then consider taking a loan and clearing off the big debts first.
  • Make a budget: In crucial times, it is advisable to stick to plans, whether it is a plan of your day-to-day activities or expenses. Make a monthly budget and stick to it as it will help you manage your expenses, loans, dues and any other investments or savings.

When unwanted situations are running one step ahead of you, it becomes important to take proactive steps to tackle them. It is always better to hope for the best, but prepare for the worst so that you can pass through this tough time unscathed by a hurt credit profile.Check your CRIF credit score, and make sure to take measures that can protect your credit profile.