Wednesday, January 20, 2021
No menu items!
Home Internet Has the Pandemic Lowered Your Credit Score? Tips to Make a Financial...

Has the Pandemic Lowered Your Credit Score? Tips to Make a Financial Recovery

All over the world families and businesses made immediate changes to cope with how the pandemic instantly affected the economy and finances. For instance, your credit score may be lower if you maxed out credit cards and overextended your credit utilization ratio. For that reason, people everywhere want to know how to improve their credit scores.

And to recover from the adverse effects of the pandemic, consumers also desire to make a full financial recovery. They can do that by following proven tips to improve their credit scores. Then too, it’s important to know the importance of a credit score, the difference between a bad and good score, and where to go to get a credit score report.

What is a credit score and how do Pakistanis find out theirs?

A personal FICO credit score ranges from 300 – 850 and represents a snapshot of how a person uses credit. The score indicates an individual’s repayment history, total debt, the types of outstanding and paid-off loans, and how long they’ve had a credit history. The score indicates to lenders your creditworthiness, which means how risky it is to loan you money. 

It’s important for consumers to monitor their credit scores and review entries on their credit history. Inaccuracies could indicate identity theft or some other error that needs attention. Pakistanis can acquire a credit report from Experian. If you need more information on how to obtain your report, contact the State Bank of Pakistan

The importance of a credit score

A higher credit score increases a person’s chances of being approved for loans and credit cards. Other benefits include better interest rates and repayment terms, increased likelihood for rental approvals, and reduced or waived security deposits on utilities.

How bad and good credit scores differ

Scores from 300 to 699 range from very poor to fair while good scores fall between 700 to 749 and anything above is considered excellent. Higher scores open financial doors that otherwise remain closed. Better scores enable consumers to purchase homes, buy cars, and pay for goods and services on credit.

Tips to improve your credit score

Consumers use these suggestions to improve their credit scores and increase their chances of making larger purchases. With higher scores, it’s possible to save huge amounts in the interest charged by lenders when repaying long-term loans.

  • By paying your bills on time you should start seeing your credit score go up in about six months.
  • You should not close credit card accounts when they’re paid in full. By closing them, your credit utilization rate increases because those closed account credit limits are no longer used to lower the rate. This has a negative effect on your credit score making it go down instead of up.
  • Don’t take on too much new credit. Opening too many accounts at one time indicates that you might be short on cash which is a red flag on your credit history.
  • Work with creditors to reduce debt. The reason? You don’t want creditors to send unpaid debts to a collection agency.
  • Make regular deposits to an emergency fund so you have money to use during emergencies and when your cash flow decreases. While you’re saving money, you also increase your net worth by having more assets. 

Make financial recovery a reality

Doing nothing to resolve a financial problem is never the answer. Once you obtain a credit report, you’ll know your credit score and whether it needs to increase.

As you discovered, a credit score is a key indicator to lenders whether they loan money to borrowers. So, a higher credit score means you’re in a better position to gain access to borrowed funds.  It’s one sure way to get closer to financial freedom and solvency.

Just follow the tips we’ve listed here and the ones on how to boost your credit score mentioned in the beginning of this post. They aren’t hard to follow and don’t take long to implement. 

Why not take steps today to regain control over your finances and make sure your credit score is in the good to excellent range.

ALSO READ  Choosing The Best Web Hosting Provider For You


Please enter your comment!
Please enter your name here

Latest News

Top 15 Best Free MKV Players For Windows 10 in 2021

If we're talking about media consumption, Windows 10 has a media player for Windows. The Windows Native Media Player...

Watch Series Alternatives and List of Unblocked Watch Series Proxy Mirrors sites 2021

Watch Series is popular name when it comes to downloading torrent files.You can download torrent files of latest movies,...

Best Putlocker Alternatives to Watch Movies Online 2021

Putlocker is very popular website that enables users to stream television shows, movies and many more anywhere without problems. The...

Top 50 Anime Torrents Sites For Download and Watch Free Movies 2021

Words anime– pronounced “ah-knee-may”– is an abbreviation of the word animation. In Japan, the word is used to refer...

Limetorrents Proxy/Mirror Sites and Limetorrents Alternatives 2021

If your favorite best torrent sites are down LimeTorrents is a great alternative.LimeTorrents is easy to use and simple,...

Rarbg Mirror Sites and Rarbg Proxy List 2021

Rarbg is a popular name when it comes to downloading torrent files. You can download torrent files of latest...

How to Download and Install Popcorn Time on MAC/iPhone/iPad [Working 2021 ]

When it involves video streaming, iOS devices have a long manner to go. Due to some restriction from  Apple,...

Torrentz2 Proxy / Mirror List : Top Torrentz2 Alternatives 2021 technically it isn’t really a torrent is the meta-search engine search other torrent trackers for you. It’s...