The COVID-19 global pandemic took its toll on people in many ways. In addition to multiple restrictions, many people lost their jobs or had to work from home to prevent the spread of the virus. Many fell behind on their bills, causing their credit to suffer tremendously due to their inability to pay their debts on time. If that sounds like you, there’s light at the end of the tunnel financially.
Fixing Your Credit One Day at a Time After Falling Behind on Your Debts
With some effort, you’re able to fix your credit and overcome the challenges that come with periods of unpaid debt. As long as you’re committed to the process, you’ll see favorable results. The sooner you start to repair your credit, the better you’ll handle future emergencies.
Here are the steps you need to take to fix your credit after a pandemic:
- Order copies of your credit reports for free. Visit AnnualCreditReport.com to request a copy from Experian, Equifax, and TransUnion. You’ll want to have a copy of all three because the credit reporting agencies do not communicate with one another. It’s your job to make sure that the information on each credit report is fair and accurate.
- Look for discrepancies in reporting. There is an unusual amount of misinformation included in credit reports due to the pandemic. It’s important that you note what isn’t correct so you can fix it. As soon as you see an issue with a discrepancy, start gathering evidence to prove that you’re in the right.
- Include documentation with each discrepancy you find. Consumer Reports explains the importance of creating a paper trail. Coming up with a letter that you send while contesting your report is imperative. Using the forms that the credit report provides can simplify the matter and make it seem less important than it is for you personally.
- Use certified mail to correspond with the credit bureaus. It provides proof of delivery of your letter. It also ensures that your dispute arrives in time for it to be corrected legally. Keeping copies of all documentation, including anything the post office provides you with when you use certified mail services, in a safe place lets you retrieve the papers and receipts whenever you need them most.
Each person’s unique credit situation is different, especially during challenging times such as a pandemic. However, keeping your eye on the prize and remaining positive throughout the process is imperative. You can raise your credit score considerably by following the advice listed above.
Monitor Your Credit Often and Look for Discrepancies in Reporting
Repairing your credit can take time and patience. It involves monitoring your credit report regularly and alerting the credit agencies to discrepancies. Once complete, the steps listed above can drastically improve your credit score and provide you with better financing options for the future. More importantly, the process prepares you for future instances where income may be scarce while expenses remain the same amount or higher for your household.
It’s important to sign up for free or paid credit monitoring services. Making it a point to regularly review your credit score allows you to see the progress that your efforts are making. It helps you understand that the steps that you’re taking to improve your credit are fruitful. That means that one day soon, you’ll have a higher credit score once again and qualify for financing from various lenders.
