Crystal Clean Credit During COVID-19
In addition to navigating self-isolation the vast majority of us are also facing uncertain financial stress. There are a few things you can do to keep your credit rating in its’ best shape.
1. Stay in touch with your credit providers. Even before COVID-19 the best thing you can do, if requiring financial assistance, is to communicate with your credit providers. Currently lenders are offering payment deferrals on mortgages, lines of credit, auto loans credit cards & personal loans. Some lenders have also been able to offer short term interest rate reductions or the complete elimination of charging interest. If you are struggling to maintain your commitments reach out to your lender and let them know. Their customer service departments are working hard to facilitate your needs but they can’t help you if you don’t let them know you need it.
2. Get it in writing. Whatever repayment terms you agree to with your lender, that are outside of your original contracted commitment, ask for this in writing. Lenders have verbally stated that they will not be negatively reporting deferred payments but the credit reporting in Canada is not fool proof and there is room for error. Protect yourself by having the agreement in writing. That way you would have proper documentation to have the incorrect reporting removed from your credit bureau.
3. Make your minimum credit card payments on time. Many credit card providers are also offering payment deferrals. Should you choose to defer for 6 months on the 7th month all 6 months of the accrued interest payments will be due. If you can afford to keep your monthly minimum payments up to date you will not only ensure your credit history on the account remains in tact but you will also save yourself from a large payment being due on the 7th month.