INSPIRATION – ALEX TAYLOR

Economic downturns and financial setbacks can make it difficult to keep your credit score in good shape. When money is tight, you may need to make some strategic adjustments to maintain a healthy credit profile despite the challenges. Here are some tips to preserve your credit through rainy days.

1. Prioritize paying at least the minimums on all credit cards and loans. Payment history is the biggest factor in your score. If you miss payments, your score will drop significantly. Make paying on time your top priority, even if you can only pay the minimum.
2. Avoid closing unused credit cards. Length of credit history also impacts your score, so keep old accounts open. Just be sure to use them occasionally so issuers don’t close the card for inactivity. Charging small purchases every few months can keep cards active. 
3. Try negotiating with creditors. Contact issuers of credit cards and loans to explain your situation. They may be willing to offer options like reduced or skipped payments without penalty. This prevents dings to your credit from non-payment.
4. Limit new credit applications. Applying for multiple new credit accounts can lower your score. Try relying on existing accounts first. If you need new credit, space out applications and only apply for what you absolutely need.
5. Pay down balances when possible. If you can make any extra payments to lower balances, do so. High balances relative to your credit limits hurt your score even if you pay on time. Pay down high balances first.
6. Enroll in hardship programs. Most lenders offer hardship programs for cardholders experiencing financial difficulty. Enrolling can help avoid missed payments and get interest rates reduced temporarily.
7. Review reports frequently. With increased financial strain, identity theft and errors can crop up. Check reports regularly and dispute any unauthorized or fraudulent activity immediately to limit damage. 
8. Monitor your score. Sign up for free services to track your score monthly. Review the factors impacting your score so you can address any vulnerabilities.
9. Staying credit healthy in tough times requires diligence. But by proactively managing accounts, keeping utilization low, and maintaining open communication with lenders, you can prevent lasting score damage until conditions improve.

“I’ve failed over and over again in my life. And that is why I succeed.” – Michael Jordan