Saving your credit during COVID-19 is an important thing to consider as we move through the pandemic to the other side. Consulting with your independant mortgage broker will help you every step of the way to ensure you are receiving the guideance you need to protect your credit history.
During this time consumers have chosen to take the offer for deferred payments on their mortgage, loans and other expenses due to loss of income or to set aside funds for the future. Even though those are good intentions in some cases the bills have been deferred but the idea to set aside money may not have occurred. In some instances people are using their credit card to cover expenses and the higher balances on their credit cards and lines of credit in conjunction with the deferral may put pressure on your credit score and the ability to secure financing moving forward.
The credit score ranking is based on a number of factors. Making payments on time is one of the most important but the utilization of the credit is a critical point, representing 30% of the ranking decision. If you have high balances on your credit cards and lines of credit this higher utilization will impact your scores. Furthermore, if you are near your limit or over limit this will have a dramatic impact on your credit score. It is these factors lending underwriters consider when reviewing a credit application. If your score is trending down they need to consider why, if they will approve your application and what interest rate they will assign to the loan. A low interest rate is not always granted if your credit score is low or trending down. This is very important for consumers to understand.
During other major economic or environmental events we have seen credit scores drop and take 6+months to rebuild. It is very important to have consultation with your mortgage broker to ensure you have a plan moving forward. In some cases it may make sense to consolidate debts to assist in the rebuilding. Visit www.nomoredebts.org for more information and assistance. However, always talk to your independent mortgage broker about options before making a final decision.
I have been working with many people over the past 6 months to help them keep their credit in good shape while assisting others to rebuild and consolidate their debts. I helped one family save $600 per month. Another family would have been in foreclosure if not for our assistance. One family could not afford their car payments and we referred them to someone to take over the car/loan and restructure their debt. Our lenders cash back programs have been very popular to help many people with paying off debt at very low interest rates. In each case this has helped to lower stress and give these families peace of mind during a challenging time.
With low interest rates this is a good time to review your needs. As independent mortgage planners we have access to many lending options that can help you save money, lower the cost of interest and future penalties that come from the banks. Of course we also work with the banks so whatever your preference we can assist.
To save your credit during COVID-19, contact me today to set up a no-cost consultation by phone or video chat. email@example.com