Financial crises can put a strain on your credit score, so taking steps to protect it is important, Here's a breakdown of the 7 crucial steps you might be reading about.
1
Even during tough times, try your best to make at least the minimum payments on your debts.
2
If you're facing difficulty making payments, reach out to your lenders and explain your situation.
3
Applying for new loans or credit cards can negatively impact your credit score, Avoid taking on additional debt during a financial crisis.
4
Fixing mistakes can improve your score. In India, you can get your CIBIL report for free from CIBIL.
5
Focus on paying off high-interest debts first, as they can accrue charges quickly and worsen your financial situation.
6
Aim to keep it below 30% for a healthy credit score, this ratio refers to the amount of credit you're using compared to your total limit.
7
Having some savings set aside can act as a buffer during emergencies and prevent you from relying on credit cards to cover unexpected expenses.