Bad credit can happen to anyone at some point in their lives. Many people are being confronted with credit loss for the first time. Explore these tips today.
Everyone goes through hard times, but it seems that more and more people are experiencing even rougher times than anticipated and seeing a drop in their credit scores.
The COVID-19 pandemic has caused unemployment levels to skyrocket. Over 50 percent of adults who lost their jobs due to coronavirus have yet to find gainful employment.
When people fall on hard times they can rely on credit, but that is easier said than done. Low credit scores can limit how much you can borrow, and an alarming number of people have bad credit due to the economy.
We live in a world where a little over half of all Americans have been turned down for a card or loan because of their score. To survive in this challenging economy, they need to be creative.
What To Do When You Suffer Credit Loss
Are you new to bad credit? We’re here to help you navigate your new economic reality. Here’s how you can survive your new economic normal and make the right moves.
Get Your Benefits
When most people think about government benefits, they immediately think about unemployment. Although unemployment benefits are essential, they are not the only way the government can help you during tough times, including a drop in credit score.
Did you know that some states may offer you discounted health insurance or prescription drugs? Or that some states can help you find the money for public transportation? A wealth of programs are available to help people going through hard times. All you have to do is find them.
Every state has its own specific benefits programs and rules. To find the right programs where you live, we recommend using benefits.gov. The site can tell you what you’re eligible for after you provide some information.
What you qualify for may surprise you. Too many people assume that since they’ve only suffered credit loss and not unemployment, they won’t be eligible for certain benefits and programs, so they don’t apply to them. But, the rules around assistance have changed dramatically over the past year, so don’t make the mistake of automatically assuming you won’t be eligible.
Explore Different Lending Options
Have you had a drop in your credit score? Are you worried about getting denied by big banks and lenders? You aren’t out of options if you need a small loan to help tide you over during hard times.
There are plenty of lenders that are willing to work with people who have low or bad credit. All you need to do is look for the right ones.
Consider finding lenders that offer installment loans. These loans are very similar to regular loans in that you borrow a lump sum of money and pay it off over time. The main difference with installment loans is that they have fixed payment amounts.
These small loans can be lifesavers when they’re used correctly. A small installment loan can help you consolidate debt, avoid overdraft fees, and be a great source of emergency cash. You don’t want to be among the 50 percent of Americans who don’t have enough money saved up for a crisis.
Talk to Companies
After a loss of income, are you worried about falling behind on utility payments or other recurring bills? Does the thought of missing another credit card or loan payment terrify you? Dreading a drop in your credit score?
Don’t hide from the people you owe money to. If anything, it’s more important than ever to contact them to explain your situation.
If you’ve just lost your job or experienced a dramatic decrease in income, some companies may have programs set up to help you. In some cases, they may be able to adjust your current billing options to make your monthly payments more affordable.
Like with government benefits, you won’t know what you can get unless you ask. You’re far from the only customer or client that has experienced a loss of credit or fallen on hard times recently. Many companies are willing to work with you if you’re proactive about reaching out to them.
Find a Hustle
You may be having a hard time finding full-time work, but plenty of gigs and side hustles are available for people who want to make some extra cash, and the additional income could help the drop in your credit score.
Even if you’re gainfully employed, having a gig you can fall back on can be helpful. You could use that money to put toward debt, pay extra bills, or set it aside for a rainy day.
Depending on your availability, there’s a lot you can do. DoorDash, GrubHub, and Amazon always look for drivers to deliver goods. You can even do some e-commerce-related drop shipping jobs on a first-come, first-serve basis.
Are you unable to do delivery or even go out much? Don’t worry; there’s still plenty of gig work for you!
Freelancing sites like Fiverr and Upwork have made it incredibly easy to find fully remote gig work. You could do data entry, test websites, get into graphic design, and more.
These jobs may not help you make bank, but you can get help paying the bills. If you’re struggling to make ends meet, we highly recommend finding a gig or two to help you work out your credit loss.
Hunt for Shopping Deals
You may feel like you’ve cut down on every non-necessary expense possible. You’ve cut out extras like streaming services, Starbucks, and takeout. How can you save any more money when it already feels like you’re struggling?
If you shop frequently online, utilize certain extensions and apps to find the best deals possible. Automatic discount and deal applications like Honey can apply coupons you didn’t even know about when you shop.
Sites like SlickDeals, Fab, and RetailMeNot can help you find discounts on many different things. You could find big discounts on some of your favorite brands and even a nice deal for date night.
Start Fixing Your Credit Issues Today
You aren’t the only person dealing with credit loss because of the economy. Credit issues happen, but you don’t have to let them rule your life.
If you follow the tips in this post, you’ll be able to save money and find ways to survive and thrive while you plan to turn around the drop in your credit score.
Want to learn more about how you can find suitable loans and repair your credit? Contact Minute Loan Center today so we can discuss the best way to help your situation.
Get a Short-Term Loan
Minute Loan Center is ready to offer you a loan to help with difficult financial times due to credit loss. It’s easy to qualify for a loan. Create your account today or contact us, and we’ll help you apply for a loan.
Kevin brings over 15 years of experience in marketing, with a specialized expertise in growing online businesses. As the Director of Marketing at a leading FINtech company, he employs innovative strategies to enhance brand visibility and customer engagement. Kevin’s passion lies at the intersection of technology and finance, where he pioneers solutions that not only meet but exceed consumer expectations. His commitment to leveraging his expertise ensures impactful results and the building of lasting relationships in the digital landscape.
