How To Protect Your Credit When Times Are Tough

When you struggle financially, it can easily seem like an insurmountable problem. That’s particularly true during periods of inflation, recession, or public health scares.

The good news is that there are several approaches to protecting your credit during such troubling times.

Here are some ways to eliminate financial stress and even thrive when times are hard. 

How You Can Protect Your Credit

Keep A Healthy Credit Score 

Don’t fall into the trap of neglecting your credit score when working to make ends meet. Be sure to make debt payments on time, and refrain from co-signing mortgages, loans, and someone else’s starter credit card application.

Another big priority is refraining from spending over 30% of your overall credit limit since credit utilization is a big factor in your score. 

Devise An Approach To Payments

Instead of neglecting payments, it may help to tweak your payment approach to protect your credit. That may mean paying the minimum on the debt with the lowest interest rates and putting more emphasis on getting rid of the debt tied to the highest interest rates.

Track Your Spending

It’s important to maintain a budget during hard times, but tracking your spending is an additional safeguard to protect your credit.

Whether you use a money management app or maintain a list of expenditures on your own, outline your monthly expenses on both needs (rent, mortgage, food) and wants (entertainment, new technology) and see if there’s a pattern in your spending and if there are ways to cut back. 

Make Some Extra Cash

Even those incredibly responsible with finances can run into a brick wall during tough times. A good way to protect your credit while bringing in more cash at the same time is finding a side hustle that fits your schedule and your financial needs.

That way, you don’t have to worry as much about everyday spending, and you may even increase your savings through gigs like rideshares, food delivery, and virtual teaching. 

Another approach is selling your unused or gently used items that can bring in big bucks, such as electronics, furniture, and brand-name clothing.

Don’t Neglect Your Savings

Even if you aren’t able to save as much money during difficult times as you have previously, what matters is simply that you’re saving something. Whether it’s in a traditional savings account or one designated for emergencies, regular savings help protect you from such moments as losing a job or incurring an unexpected and urgent expense.

Talk About Your Financial State With Creditors

Money matters are often kept private, and that’s fine. But one option to protect your credit is talking it out with service providers or credit lenders.

If you’ve been a customer in good standing for a long time and have recently lost your job, they may be inclined to give you a break as far as bill deadlines and even may forgive some of your lingering debt. You never know unless you ask.

Take Steps Against Identity Theft 

A sad fact is that cases of identity theft rise during tough economic times. The key approach here is diligence. Review the newest scams that could damage your credit and take steps to protect yourself.

Regularly check your card statements and bank accounts for any irregular activity, such as unauthorized payments. See if new credit is being pursued that you did not request.

If there are signs that you’re a victim of identity theft, freeze your credit so your personal information is no longer available until you can look into the situation.

Consider An Auto Title Loan 

When times are tough, recovery from a financial emergency can seem out of reach. That’s not the case for those who qualify for an auto title loan — and most do when they pursue one through Southwest Title Loans.

What Is An Auto Title Loan?

An auto title loan is a loan that uses your vehicle’s title as collateral in exchange for a short-term loan designed to assist when financial emergencies strike. For fast loan approval, you can pursue an auto title loan with us by filling out the short loan form on our homepage. We’ll then give you a call to review the required items and go over the remaining steps to get your title loan cash that same day or the next business day. It can take as little as a half-hour to qualify for amounts up to $15,000 at Southwest Title Loans. A quick vehicle inspection will help to determine how much you can qualify for. The process couldn’t be easier. 

Get Started Today! 

Don’t let a financial emergency threaten your good credit during times when you are struggling to make ends meet. Instead, pursue an auto title loan today through Southwest Title Loans.

Start online, give us a call, or visit us today to get the emergency cash you need. Our experienced representatives are waiting to help you now!

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.